...VR-Driven Ratings: Military Commercial Joint Stock Bank's ratings (MB Bank) reflect the company's relatively strong financial profile and risk management compared with its local peers, and its franchise as one of Vietnam's largest private commercial banks. These are, however, counterbalanced by its above-industry loan growth and its high reliance on corporate deposits. Conservative Loan Classification: MB Bank's reported asset quality metrics reflect a more conservative loan classification methodology relative to its peers. The reported non-performing loan (NPL) ratio of 3.1% as of end-1H14 was in accordance with Circular 2, a set of stricter rules on classifying bad debt and provisioning implemented by the local regulator. The bank's loan book is relatively well-diversified across industries and highly collateralised. These credit strengths should help mitigate potential risks emanating from the bank's rapid loan growth. Steady Capitalisation: The bank's capitalisation should remain stable...
