MSB_9M21 Analyst Meeting_Takeaways

MSB held an analyst meeting on Nov 5 to report its 9M21 results.

PATMI reached VND809 bn (-49% QoQ/ but +46% YoY) in 3Q21. The sequential plummet was largely due to weak net fees and increased provisioning. 9M21 PATMI jumped by +148% YoY to reach VND3.3 tn.

3Q21 net interest income was VND1.6 tn (+10% QoQ/+24% YoY). 9M21 net interest income was VND4.5 tn (+38% YoY). COF declined -1.2ppt from 2020 to reach 2.41% in 9M21 on the high CASA ratio of 31% (+2ppt YTD). As such, 9M21 NIM reached 3.72% (+37bps YTD).

3Q21 net fee income was VND251 bn (-88% QoQ/+46% YoY). The QoQ decline was due to the high base, as 2Q included the upfront fee from the banca exclusivity deal with Prudential. 9M21 net fee income was VND2.4 tn (+393% YoY).

3Q21 trading gains were VND191 bn (vs. -337 bn in 2Q21/+38x YoY). In 9M21, trading gains were down -48% YoY to reach VND182 bn.

3Q21 opex was VND714 bn (-34% QoQ/+2% YoY). 9M21 opex was VND2.5 tn (+11% YoY). 9M21 CIR was 32.7% (-14ppt YoY).

Provisioning was the key drag on earnings. 3Q21 provisioning jumped by +143% QoQ/+50% YoY to reach VND587 bn. 9M21 provisioning was VND1.0 tn (+17% YoY).

The bank will divest 100% of FCCOM (its consumer finance company) at estimated deal size of $100 mn. The bank expects to record VND1.8 tn (about $80 mn) in profit from selling FCCOM.

NPL ratio (cir. 02) was 1.31% (-31bps YTD) as at 3Q21. 3Q21 LLR ratio increased to 62% (+8ppt YTD), which is still low compared to the sector median of 74%.

Total restructured loans were VND1.8 tn as at 3Q21 (1.8% of 3Q21 loans), mainly in real estate (74%), followed by transportation (16%).

3Q21 ST funding/MLT loans was 17%, far below the SBV’s cap of 40%. LDR ratio was 65%, below the SBV’s cap of 85%. CAR ratio was 11.2%.

For the complete report, please access here: MSB_9M21 Analyst meeting_Takeaways

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