HDB_9M22 Analyst Meeting

HDB posted 3Q22 PATMI of VND2.0 tn (US$81 mn, -3% QoQ/+41% YoY). The YoY increase was largely driven by higher net interest income (NII) and net fees. In 9M22, PATMI was VND6.0tn (+32% YoY), fulfilling 82% of our 2022E forecast.

Credit growth was +18.1% YTD to reach VND252 tn. Retail and SMEs accounted for 90.4% of the total loans. Consumer finance loans (HDSaison) represented 6.8% of the total loans. HDB expects consolidated credit growth to exceed 20% YoY in 2022.

3Q22 net interest income: VND4.5 tn (-1% QoQ/+36% YoY). In 9M22, net interest income reached VND13.1 tn (+29% YoY). Consolidated NIM was 5.1% in 3Q22 (flat QoQ/+70bps YoY).

Net fee income in 3Q22 was VND693bn (-17% QoQ/+111% YoY). In 9M22, net fee income expanded by +80% YoY to reach VND2.1 tn, largely driven by bancassurance, card business, and payment services. New APE was VND145 bn in 9M22, which is 6^th highest in the sector.

3Q22 FX trading net gains jumped +20% QoQ/+368% YoY to VND97 bn, but securities trading/investment posted a loss of -VND20.3 bn (versus gains of VND7 bn in 2Q22 and VND23.8 bn in 3Q21).

Opex was VND2.0 tn (-2% QoQ/+42% YoY) in 3Q22. CIR was 37.1% (+70bps QoQ/-1ppt YoY) in 3Q22. In 9M22, opex increased +26% YoY to reach VND6.0 tn.

Provisioning was VND681 bn in 3Q22 (-12% QoQ/+69% YoY). In 9M22, provisioning came to VND2.1 tn (+61% YoY).

HDB’s LLR ratio was 81% (-12ppt QoQ/+5ppt YoY) in 3Q22. The consolidated NPL ratio decreased to 1.5% (+21bps QoQ/ +14bps YoY). The parent bank’s NPL ratio was 1.1% and HDSaison’s NPL ratio was 7.4%. Restructured loans were only 0.04% of total loans.

CASA decreased by -11% QoQ/-2% YoY to reach VND23tn as at 3Q22.HDB’sCASA ratio was 11.3% as at 3Q22 (-1ppt both QoQ and YoY).

CAR was 15.3%, which is among the highest in the sector. ST funding used for MLT loans was 15.9% vs. the SBV’s cap of 37%.

For the complete report, please access here: HDB_9M22 Analyst Meeting

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