...VR-Driven Rating: Military Commercial Joint Stock Bank's (MB) Long-Term Issuer Default Rating (IDR) is driven by its Viability Rating (VR). It reflects its franchise as one of Vietnam's largest private banks with stronger capitalisation and profitability than peers and better loan quality than other state-owned banks. This is counterbalanced by above-industry loan growth, rising exposure to state-owned enterprises (SOEs) and higher reliance on corporate deposits. The Stable Outlook reflects Fitch Rating's expectation that MB will maintain its risk-profile over the near- to medium-term amid macroeconomic stability in Vietnam. Strong Profitability Drives Capitalisation: Fitch expects MB to continue generating stronger profitability than peers, which is supported by higher net interest margins and a more favourable cost structure. This is aided by leveraging the branch network of its largest shareholder, Viettel Group, to broaden distribution beyond its own retail branches. Its strong profitability...
