MBB_9M22_Analyst Meeting

MBB reported 3Q22 PATMI of VND4.9 tn (+6% QoQ/+61% YoY), largely driven by higher net interest income and lower provisioning. 9M22 PATMI reached VND14 tn (+53% YoY), fulfilling 90% of our full-year forecast.

Loan increased 17% YTD in 9M22.

3Q22 net interest income was VND9.0 tn (+1% QoQ/+39% YoY). 9M22 net interest income was VND26.4 tn (+39% YoY).

3Q22 NIM was 5.5% (+1bps QoQ/+67bps YoY), on our calculations.

3Q22 net fee income was VND784 bn (-22% QoQ/-15% YoY). 9M22 net fee income was VND2.9 tn (-4% YoY). The drop was due to insurance revenues. We are inquiring to determine if this is purely banca commissions or also consolidates the insurance subsidiary.

3Q22 FX trading gains reached VND402 bn (-15% QoQ/ +13% YoY), and securities trading/investment posted a gain of VND171 bn (+105% QoQ/ but -58% YoY).

Other income (mostly loan loss recoveries) was VND585 bn (+3% QoQ/+20% YoY).

Opex was VND3.7 tn (-3% QoQ/ but +23% YoY) in 3Q22. Total opex was VND11.2 tn (+25% YoY) in 9M22.

3Q22 provisioning cost was VND962 bn (-30% QoQ/-46% YoY), which was the key earnings driver for the quarter. In 9M22, MBB’s provisioning was VND4.5 tn (-26% YoY).

We estimate LLR ratio of 208% (-14ppt QoQ/-25ppt YoY) in 3Q22. MBB’s 3Q22 NPL ratio was 1.04% (-16bps QoQ/+9bps YoY).

CASA ratio declined to 42.4% as at 3Q22 (-3ppt QoQ/ +70bps YoY).

For the complete report, please access here: MBB_3Q22_Results Highlights

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