STB_3Q21 Results highlight

STB reported 3Q21 PATMI of VND640 bn (-43% QoQ/-11% YoY), largely driven by lower net fee income and declined NPL recoveries. 9M21 PATMI was VND2.6 tn (+38% YoY).

Details

Loans to customers increased by just 4.8% YTD to reach VND356 tn, while deposits fell by -2.1% YTD to reach VND419 tn as at 3Q21.

3Q21 net interest income (net-II) was VND3.3 tn (+5% QoQ/+9% YoY). 9M21 net-II was VND9.5 tn (+11% YoY).

3Q21 net fee income was VND590 bn (-37% QoQ/-53% YoY), a key drag on earnings. 9M21 net fee income was VND2.4 tn (-11% YoY).

Net gains from FX and gold dealing were VND150 bn in 3Q21 (-11% QoQ/-6% YoY). 9M21 results were VND525 bn (-6% YoY).

Trading gains were VND69 bn in 3Q21 (+300% QoQ/+1046% YoY). 9M21 trading gains were VND120 bn (vs. –VND27 bn in 9M20).

Opex was VND2.4 tn in 3Q21 (+4% QoQ/-8% YoY). 9M21 opex was VND7.4 tn (+5% YoY). CIR was 57% in 9M21 (-1ppt YoY).

Provisioning decreased by -4% QoQ/-26 YoY to reach VND950 bn in 3Q21. 9M21 provisioning was VND2.4 tn (-15% YoY).

Net other income (mainly NPL recoveries) was VND39 bn (-92% QoQ/-89% YoY), which was the other main drag on earnings in 3Q21. 9M21 net other income was VND572 bn (+6% YoY).

NPL ratio was 1.56% (+1bps QoQ/-58bps YoY) in 3Q21. Aggregate NPLs were VND5.6 tn (-1% QoQ/-19% YoY). LLR ratio was 112% (+9ppt QoQ/+38ppt YoY).

CASA deposits were VND93 tn (+8% QoQ/+29% YoY). CASA ratio was 22.2% as at 3Q21 (+2ppt QoQ/+5ppt YoY).

For the complete report, please access here: STB_3Q21_Results highlights

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