MSB_1H22 Analyst Meeting

PATMI reached VND1.5 tn in 2Q22 (+30% QoQ/-6% YoY), with the YoY decrease mainly attributable to sharply lower net fees. 1H22 PATMI was VND2.6 tn (+7% YoY).

Loans to customers increased by +9% YTD to reach VND110 tn. Retail and SME loans accounted for 58% of total loans. LDR was relatively low at 74%, well below the SBV’s cap of 85%.

2Q22 net interest income (net-II) increased by +5% QoQ/+39% YoY to reach VND2.1 tn. 1H22 net-II was VND4.0 tn (+39% YoY). Cost of funds was 2.33% (+8bps QoQ/-11bps YoY) in 2Q22. MSB reported 2Q22 NIM of 4.05% (+20bps QoQ/+38bps YoY). The bank expects NIM to maintain at 4.0% for 2022E.

2Q22 net fee income was VND244 bn (-28% QoQ/-88% YoY) in 2Q22, 1H22 net fee income was VND580 bn (-74% YoY). The sharp decline was due to the high base of net fee income one-off (i.e. bancassurance upfront fee) in 1H21.

2Q22 opex was VND1.1 tn (+43% QoQ/ but -2% YoY). 1H22 opex was VND1.8 tn (flat YoY). CIR was 34.6% (+4ppt QoQ/+1ppt YoY) in 2Q22.

MSB reversed provisioning of VND115 bn in 2Q22. As such, MSB reported 1H22 provisioning of VND56 bn (-87% YoY).

MSB’s NPL ratio was 1.10% (-19bps QoQ/-53bps YoY) under Cir11/2021/TT-NHNN at 2Q22. The bank’s 2Q22 LLR ratio was 84% (-3ppt QoQ/+26ppt YoY).

Restructured loans were VND2.4 tn as (2.2% of total loans) at 2Q22, mainly comprising real estate-related loans.

CASA ratio was 36.7% (-2ppt QoQ/+9ppt YoY) as at 2Q22. The bank targets to maintain the CASA ratio at 37% in 2022.

ST funding to MLT loans ratio was 20.6% as at 2Q22, far below the SBV’s cap of 37%. CAR was 12.1% vs. the Basel II requirement of 8.0%.

For the complete report, please access here: MSB_1H22 Analyst meeting_Takeaways

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