The writer had the opportunity to share about this topic with Mr. Dam Nhan Duc - Chief Economist of the Military Commercial Joint Stock Bank (MB, HOSE: MBB).
Can you tell us your views on IR activities for the value of corporate capitalization and the value to shareholders?
Mr. Dam Nhan Duc: I think that, in addition to the fundamental factors of business operations, factors such as the stock market and investment practices of local people, the attractiveness of foreign capital flows, investor relationship strategies are very important points that help increase the value of business capitalization and increase value for shareholders.
For example, in the banking industry, in addition to the target of lower interest-on- rental, Vietnamese banks are not inferior to banks of other countries in the region, if we look at the ROE and NIM targets, but Vietnamese banks are trading at P/B and P/E valuations lower than banks of other countries in the region.
So, if the goods are good but the prices are not commensurate, in addition to the general market factor, the reason may lie in sales and marketing. Here, if goods are classified as stocks, investor relations (IR) is the stage of selling.
Looking more broadly, it can be seen that banks in the region have had an effective IR strategy very early, contributing to helping stock prices outperform Vietnamese banks. According to the survey results, all researched banks of countries in the region such as Singapore, Thailand, Indonesia... have applied proactive IR strategies.
In Vietnam, according to reports from a number of organizations operating in the field of financial communications, many Vietnamese enterprises still apply a passive IR strategy, mainly to meet the requirements of management agencies.
I think the core of business is to increase the value of corporate capitalization and increase value for customers and shareholders. Therefore, in addition to ensuring effective business operations, proactive IR activities will have a positive impact on capitalization value. Thanks to the trust of shareholders and investors, MB's capitalization value as of 1/17/2017 has increased 7.8 times - the highest among listed banks and 3.3 times higher than the growth rate of the VN-Index.
So how has MB implemented investor relations activities, sir?
Mr. Dam Nhan Duc: Regarding mandatory IR activities, MB's Investor Relations Department has seriously and promptly and accurately implemented the requirements for information disclosure on the stock market according to Circular 96/2020-BTC of the Ministry of Finance.
Every year, we publish hundreds of mandatory documents, without any cases of violating the regulations on information disclosure (IC) of competent authorities. All unusual or periodic PIT documents such as quarterly financial reports, annual reports, Charter, General Meeting documents, etc. are issued simultaneously in Vietnamese and English to ensure that foreign shareholders promptly grasp information to ensure fairness of interests between shareholders.
For proactive IR activities, we constantly improve content, enhance communication channels and regularly organize and participate in investor contact events organized by leading domestic and foreign securities companies to provide investors and shareholders with accurate and timely information about the Bank's operations.
Can you please share more about MB's IR operation orientation in the coming time?
Mr. Dam Nhan Duc: In the coming time, we will continue to upgrade compulsory and proactive IR activities. First, we increase proactiveness and transparency in information disclosure. Second, we will continue to increase the reliability of data. Third, we will increase channels and documents to exchange information with investors. Accordingly, in addition to regularly organizing and participating in events and strengthening information channels, we will improve and develop additional documents to provide information to investors. In 2024, we have improved the Bank's Annual Report to provide detailed and comprehensive information to shareholders and the community of investors and partners. We aim to develop additional separate ESG Reports from the Annual Reports to meet the strict requirements of many investors.
Can you share about MB's story in the next 3 years?
Mr. Dam Nhan Duc: In fact, MB's story is a long story with many episodes. If the 2021-2024 period is a case of MB steadily moving up with 3 key areas of digital transformation, brand transformation, rapid increase in customer numbers, leading growth, then MB's next story in the 2025-2028 period is to continue to lead in digital transformation, high growth, improve the quality of operations, digital transformation and focus on strictly opening up customers, becoming a leading financial institution, breaking through and separating the top to catch up with the group of state-owned commercial banks, affirming a solid position in the Top 5 largest commercial banks in Vietnam. With a growth rate of about 30-35%/year, in the next 3 years, MB's scale can completely double compared to the present.
Supporting the story of rapid growth in the coming period is a tight governance foundation formed by a solid shareholder structure, an advanced risk management foundation, and the advantage of capital prices and digital transformation leading the market.
So what more do you have to share with readers?
Mr. Dam Nhan Duc: With the " Soldier's quality" in MB's gene and each officer and employee of the group, I believe that MB will maintain its identity and firmly go far on the path of customer service, social service, contributing to the economic development of the country.
I fully believe that MB will not only be a large domestic bank but also reach international standards, becoming a prestigious financial brand and having great influence in the international arena. With available potential and pioneering spirit, I have full confidence in MB's sustainable development and prosperity in the future.
Thank you for sharing!
