MBB VN_3Q21 Results highlights

MBB reported 3Q21 PATMI of VND3.0 tn (+16% QoQ/+28% YoY) largely caused by significant decline in provisioning. 9M21 PATMI was VND9.2 tn (+45% YoY), fulfilling 90% of the bank’s full-year target and 92% of our 2021E forecast.

Details

Loans increased by 12.7% YTD to reach VND336 tn.

3Q21 net interest income was VND6.5 tn (-1% QoQ/+26% YoY).

Annualized NIM on total average assets was 4.83% in 3Q21 (-25bps QoQ/-4bps YoY).

3Q21 net fee income was VND926 bn (-10% QoQ/+16% YoY), of which gross settlement income (-13% QoQ/+18% YoY) and banca sales (-20% QoQ/+24% YoY) were the main reasons for the sequential decline.  9M21 net fee income was VND3.0 tn (+22% YoY).

Other non-interest income jumped by +12% QoQ/+121% YoY to reach VND772 bn in 3Q21. This is after stripping out loan loss recoveries of VND486 bn (-24% QoQ/+14% YoY), which is reported above the PPOP line under VAS but we consider to be credit cost-related in our models.

Provisioning fell -27% QoQ but rose +101% YoY to reach VND1.8 tn in 3Q21, which was the primary driver of the QoQ earnings increase in 3Q21. The reported NPL ratio was 0.95% (+19bps QoQ/-55bps YoY).

MBB’s LLR ratio was 233% (-4ppt QoQ/+114ppt YoY) in 3Q21. This is among the highest reserve coverage ratios in the sector.

CASA deposits increased. Total CASA deposits were VND143 tn (+5% QoQ/+41% YoY). CASA ratio was 42% as at 3Q21 (+2ppt QoQ/+4ppt YoY), which is only lower than the 49% reported by TCB (not rated).

For the complete report, please access here: MBB_3Q21_Results highlights

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