...VR-Driven Ratings: Military Commercial Joint Stock Bank's (MB Bank) ratings are driven by its Viability Rating (VR), which reflects a stronger financial profile than its peers, and its status as one of Vietnam's larger private commercial banks. These factors are counterbalanced by loan growth above the industry average, and its higher reliance on corporate deposits. The ratings also incorporate structural banking system issues such as weak asset quality and capitalisation which is common to all Vietnamese banks. Lingering Asset-Quality Risks: MB Bank faces similar systemic asset-quality issues as other Vietnam banks ¡ given its rapid loan growth (2012-1H15 CAGR: 17%), relatively high SOE loan concentration at 22.2%, and rapid average loan growth of 19.8% over 2012-2014. Its total problem-loan ratio stood at 7.5% at end-June 2015 (end-2014: 8.4%) after incorporating "special mention" loans and below, and special bonds issued by the Vietnam Asset Management Company. Capitalisation Strengthened:...
