ACB_1H22_Analyst Meeting

ACB reported PATMI of VND3.9 tn in 2Q22 (+20% QoQ/+52% YoY), largely driven by higher net interest income, net fee income and reversed provisioning. 1H22 PATMI was VND7.2 tn (+43% YoY), fulfilling 63% of our full-year forecast.

ACB’s loans grew by 9.3% YTD in 1H22. 64% of loans are retail, and 29% of total loans are to SMEs. However, deposits increased by only +2.2% YTD. LDR was 83%, which is close to the SBV’s cap of 85%.

2Q22 net interest income was VND5.6 tn (+3% QoQ/+12% YoY). 1H22 net interest income was VND11.0 tn (+15% YoY). ACB reported 2Q22 NIM of 4.0% (flat QoQ/-10bps YoY).

2Q22 net fee income was VND993 bn (+34% QoQ/+12% YoY). 1H22 net fees increased by +15% YoY to reach VND1.7 tn. Banca accounted for 54% of total fees, followed by card services (17%), accounts services (12%), international payments (11%), and others (6%).

Opex was VND2.3 tn (-17% QoQ/+43% YoY) in 2Q22. We estimate adjusted CIR was 35% (-8ppt QoQ/+9ppt YoY).

ACB recorded a provisioning reversal of VND267 bn in 2Q22. This was the key YoY earnings driver for 2Q22.

Restructured loans were VND13 tn (3% of total loans) as at 2Q22.

Net other income (mostly NPL recoveries) was VND356 bn in 2Q22 (-4% QoQ/ and versus a loss of -VND21 bn in 2Q21). 1H22 NPL recoveries reached VND725 bn (26x YoY).

LLR ratio was 181% (-7ppt QoQ/-27ppt YoY) in 2Q22. The reported NPL ratio was 0.76% (-6bps QoQ/+8bps YoY) in 2Q22.

ST funding for MLT (SML) ratio was 20.4% versus the SBV’s cap of 37%.

CASA ratio was 25% as at 2Q22 (-2ppt QoQ/+3ppt YoY). CAR was 11.9% in 2Q22, well above the 8% minimum.

For the complete report, please access here: ACB_1H22_Analyst Meeting_Key Takeaway

Analyst: Tanh Tran, tanh.tran@yuanta.com.vn