BID_3Q21 Results highlights

BID reported 3Q21 PATMI of VND2.0 tn (-44% QoQ/-3% YoY). The sequential decline was largely due to lower net interest income and net other income, and increased operating expenses. 9M21 PATMI was VND8.4 tn (+52% YoY).

Details

Loans to customers increased by 9.4% YTD (almost fulfilling BID’s 2021 credit quota of 9.5% YoY) to reach VND1,329 tn, while deposits increased by 6.8% YTD to reach VND1,310 tn as at 3Q21.

3Q21 net interest income (net-II) was VND12.2 tn (-6% QoQ/+33% YoY). BID reduced loans yield by an average of 1ppt for existing loans to support clients in 2H21.  9M21 net-II was VND36.0 tn (+43% YoY).

3Q21 net fee income was VND1.6 tn (-8% QoQ/ but +17% YoY). 9M21 net fee income was VND4.8 tn (+30% YoY).

Net gains from FX and gold dealing were VND457 bn in 3Q21 (+13% QoQ/+4% YoY). 9M21 results were VND1.2 tn (-1% YoY).

Trading gains were VND149 bn in 3Q21 (vs. -VND40 bn in 2Q21/-63% YoY). 9M21 trading gains were VND228 bn (-85% YoY).

Opex was VND5.1 tn in 3Q21 (+23% QoQ/+29% YoY). 9M21 opex was VND13.2 tn (+16% YoY). CIR was 28% in 9M21 (-5ppt YoY).

Provisioning was VND7.5 tn (-12% QoQ/but +30% YoY) in 3Q21. 9M21 provisioning was VND23.2 tn (+44% YoY).

Net other income (mainly NPL recoveries) was VND794 bn (-64% QoQ/-21% YoY), which was also a drag on earnings in 3Q21. However, 9M21 net other income was VND4.8 tn (+70% YoY).

NPL ratio was 1.61% (-2bps QoQ/-36bps YoY) in 3Q21. LLR ratio was 140% (+8ppt QoQ/+53ppt YoY).

CASA deposits were VND248 tn (+3% QoQ/+25% YoY). CASA ratio was 19.0% as at 3Q21 (+40bps QoQ/+2ppt YoY).

For the complete report, please access here: BID_3Q21_Results highlights

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