ACB_3Q21_Prelim Results Highlight

3Q21 preliminary results
ACB reported its preliminary PBT of VND9.0 tn in 9M21 (+40% YoY). We have to wait for the full results, but we estimate that ACB’s 3Q21 preliminary PBT was VND2.6 tn (-19% QoQ/+2% YoY). We think the sequential decline was mainly due to reduced loan growth amid the 3Q21 lockdown.

Details

The bank reported credit growth was 7.5% YTD, while deposit growth was only 3.6% YTD.

The bank reported its NIM increased slightly to 4.1% in 9M21 vs. 4.0% in 6M21 as the cost of borrowing decreased at a higher rate than that of the loan yield. Also, CASA ratio improved by +30bps QoQ to 23.2% as at 3Q21.

Fee income reached VND1.9 tn in 9M21 (+47% YoY), mainly driven by income from credit card and bancassurance sales. Thus, we estimate that 3Q21 fee income was about VND400 bn (-56% QoQ/-21% YoY).

9M21 provisioning was about VND2.8 tn (+300% YoY); thus, we estimate 3Q21 provisioning was VND800 bn (-42% QoQ/+400% YoY). The bank also expects to increase VND500 bn in provisioning by the end of the year.

Reported 3Q21 NPL ratio was 0.8% (+12bps QoQ/-3bps YoY). Total restructured loans increased by +63% QoQ to VND13.4 tn (4% of 3Q21 loans) as at 3Q21.

For the complete report, please access here: ACB_3Q21_Prelim Results highlights

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