BID_3Q22 Results

BID reported 3Q22 PATMI of VND5.3 tn (+2% QoQ/+158% YoY). The YoY increase was largely driven by high net interest income and lower provisioning. 9M22 PATMI reached VND14 tn (+68% YoY), fulfilling 88% of our 2022E forecast.

Loans to customers increased by 10.4% YTD to reach VND1,494 tn, while deposits increased by only 2.5% YTD to reach VND1,414 tn as at 3Q22.

3Q22 net interest income (net-II) was VND14.1 tn (-3% QoQ/+16% YoY). 9M22 net-II reached VND41.5 tn (+15% YoY). We estimate 3Q22 NIM on average assets was 2.80% (-25bps QoQ/-13bps YoY).

3Q22 net fee income was VND1.4 tn (-4% QoQ/-10% YoY). 9M22 net fee income was VND4.2 tn (-12% YoY).

Net gains from FX reached VND801 bn in 3Q22 (+28% QoQ/+75% YoY).

Opex was VND5.5 tn in 3Q22 (+5% QoQ/+8% YoY). We estimate that adjusted CIR was 33% (+2ppt QoQ/-2ppt YoY). 9M22 opex was VND15 tn (+13% YoY).

Provisioning declined by -16% QoQ/-28% YoY in 3Q22, which was a key earnings driver. 9M22 provisioning was VND19.3 tn (-17% YoY).

Net other income (mainly NPL recoveries) was VND1.1 tn (-21% QoQ/+33% YoY). 9M22 net other income was VND3.9 tn (-20% YoY).

NPL ratio was 1.35% (+33bps QoQ/ -27bps YoY) in 3Q22. LLR ratio declined sequentially to 214% (-49ppt QoQ/+74ppt YoY) in 3Q22.

CASA deposits were VND266 tn (-5% QoQ/but +7% YoY). CASA ratio decreased to 18.8% as at 3Q22 (-1ppt QoQ/-20bps YoY).

For the complete report, please access here: BID_3Q22_Results highlights

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