Addressing Concerns about Debts of Major Real Estate Companies

The President of MBBank, Le Trung Thai, recently discussed the debts of prominent real estate firms during a conference.

Trung Nam Group, known for investing in large renewable energy projects, has seen a decrease of VND2 trillion in outstanding loans this year. The projects funded by MBBank are functioning well with no bad debts reported.

Thai stated that loans were provided exclusively for solar power projects and there are no concerns regarding insolvency due to the projects’ successful operations and favorable electricity prices.

Regarding Nova Group, outstanding loans have decreased by VND1.5 trillion since 2023. Thai reassured investors about the capital recovery of Nova Group’s projects.

MBBank’s loans are tied to specific projects such as Novaland Phan Thiet, Aqua City Dong Nai, and Nova Ho Tram in Vung Tau City.

Thai highlighted positive progress in the projects and addressed legal issues where necessary to ensure compliance with regulations.

With regards to Sun Group, Thai confirmed no issues with collateral or cash flow for debt repayment.

MBBank’s loans to Sun Group primarily supported tourism projects like Sun World Fansipan Legend and Sun World Ba Den Mountain, which are operating smoothly.

The bank is closely monitoring the real estate projects to provide necessary support during the challenging period in the market.

By June, MBBank’s credit had risen by 9.4 percent across all segments while keeping the bad debt ratio below 2 percent, at 1.64 percent.

MBBank executives acknowledge the ongoing risks of individual clients’ bad debts despite signs of economic recovery.

Regarding Mcredit’s asset quality, Thai noted a possible bad debt ratio of over 8 percent for the year.

Mcredit is undergoing model enhancements to improve its operating quality by year-end.

MBBank remains a market leader in client numbers and among the top 4 in assets and outstanding loan market share, showing strong credit growth in the first half of the year.

The bank reported a pre-tax profit of VND14.428 trillion in the first half of the year, a 5.4 percent increase from the previous period.