ACB’s 9M22 Analyst Meeting

ACB reported 3Q22 PATMI of VND3.6 tn (-9% QoQ/+71% YoY). The YoY increase was mainly due to higher net interest income and lower provisioning. 9M22 PATMI was VND10.8 tn (+51% YoY), fulfilling 94% of our forecast.

The bank reported loan growth of 11.6% YTD vs. its credit quota (so far) of 12.7%, while deposits grew by just 3.2% YTD. Consumers and SMEs accounted for 94% of total loans and 93% of the total deposits.

3Q22 net interest income was VND6.0 tn (+8% QoQ/+33% YoY). 9M22 net interest income was VND17.1 tn (+21% YoY).

3Q22 NIM was 4.1% (+10bps QoQ/+flat YoY).

3Q22 net fee income was VND867 bn (-13% QoQ/+36% YoY), mostly from banca and card services. New APE was VND175bn in 9M22, which is 4^th highest in the sector. 9M22 net fee income was VND2.6 tn (+21% YoY). Net fee income was largely driven by bancassurance (57% of total fees), followed by card services (15%).

Other income (mostly loan loss recoveries) was VND124 bn (-65% QoQ/ but +193% YoY).

Opex was VND2.5 tn (+11% QoQ/+12% YoY) in 3Q22. Total opex was VND7.5 tn (+30% YoY) in 9M22.

3Q22 provisioning cost was VND90 bn (-89% YoY), whereas the bank recorded a provisioning reversal gain of VND267 bn in 2Q22. In 9M22, ACB’s provisioning line was a gain of VND180 bn due to reversals.

LLR ratio was 135% (-46ppt QoQ/-63ppt YoY) in 3Q22. The decline was due to higher NPL recognition after the expiration of Circular 14. ACB’s 3Q22 NPL ratio increased to 1.02% (+26bps QoQ/+18bps YoY).

CASA ratio was 24% as at 3Q22 (-90bps QoQ/+1.6ppt YoY). CAR was 12.3%. ST fundings for MLT loans was 20.9% vs. the SBV’s cap of 37.0%.

For the complete report, please access here: ACB_9M22_Analyst Meeting

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