Vietnam's MSB Bank to Increase Capital, Bolstering Financial Strength for International Standards

Vietnam's Maritime Commercial Joint Stock Bank (MSB) (HoSE: MSB) has announced that it has received approval from the State Bank of Vietnam to increase its charter capital. This capital increase will be carried out through the issuance of shares as a dividend to shareholders, raising the charter capital from the current VND 31.2 trillion to a maximum of VND 37.44 trillion. The capital increase will involve issuing approximately 624 million shares to existing shareholders at a ratio of 20%. The newly issued shares will not be subject to transfer restrictions. This capital strengthening aims to enhance the bank's financial capacity, bolster its capital buffers, and strengthen its risk management system in line with international standards. The augmented capital will be allocated to support medium and long-term lending activities, expand investments in technology infrastructure, digital transformation (DX), AI, develop the financial ecosystem, and implement long-term growth strategies. MSB Bank has maintained a stable financial foundation and sustained business performance, recording a record pre-tax profit of over VND 7.058 trillion in 2025. Its total consolidated assets approached VND 408 trillion, an increase of over 27%. Credit growth reached 15.8%, and the CASA ratio neared 29%, remaining at high levels in the market. Growth is expected to continue into the first half of 2026, with consolidated pre-tax profits exceeding VND 3.4 trillion (an increase of approximately 8% year-on-year) and total assets surpassing VND 440 trillion. The non-performing loan ratio remains controlled at 1.64% on a standalone basis and 1.83% on a consolidated basis, reflecting stable asset quality. This indicates that financial regulations under Vietnam's one-party system are contributing to the healthy growth of banks. In particular, strengthening the domestic economy and financial system is a crucial task for the Vietnamese government amidst ongoing tensions in its relations with China.