STB_2Q22 Results

STB reported 2Q22 PATMI of VND804 bn (-37% QoQ/-28% YoY). The decline was due to lower net-II and increased provisioning. 1H22 PATMI was VND2.1 tn (+9% YoY), fulfilling 49% of our 2022E forecast.

Loans to customers increased by 7% YTD to reach VND415 tn, and deposits were also up by +7% YTD to reach VND456 tn as at 2Q22.

2Q22 net interest income (net-II) was VND2.6 tn (-5% QoQ/-17% YoY). 1H22 net-II was VND5.3 tn (-13% YoY). We estimate 2Q22 NIM of 2.07% (-19bps QoQ/-77bps YoY).

2Q22 net fee income increased by +13% QoQ/+86% YoY to reach VND1.7 tn. 1H22 net fee income was VND3.3 tn (+85% YoY), largely driven by cards, bancassurance, and e-banking.

Other net non-II (exclude NPL recoveries) was VND247 bn (-19% QoQ/+32% YoY).

Opex was VND2.6 tn in 4Q21 (-8% QoQ/+12% YoY). Adj. CIR was 57% in 2Q22 (-5ppt QoQ/+2ppt YoY). 1H22 opex increased by +9% YoY to reach VND5.4 tn.

Provisioning soared by +213% QoQ/+124% YoY to reach VND2.2 tn in 2Q22, which was the key downside earnings driver. 1H22 provisioning was VND2.9 tn (+99% YoY).

Net other income (mainly NPL recoveries) expanded by +182% QoQ/+224% YoY to reach VND1.5 tn in 2Q22. 1H22 net other income jumped by +291% YoY to reach VND2.1 tn.

NPL ratio was 1.27% (-1bps QoQ/-28bps YoY) in 2Q22. Aggregate NPLs were VND5.3 tn (flat QoQ/-6% YoY). LLR ratio was 138% (+4ppt QoQ/+36ppt YoY).

CASA deposits were VND103 tn (-2% QoQ/ but +19% YoY). CASA ratio was 23% as at 2Q22 (-30bps QoQ/but +3ppt YoY).

For the complete report, please access here: STB_2Q22_Results highlights

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