STB_3Q22 Results

STB reported 3Q22 PATMI of VND1.2 tn (+51% QoQ/+89% YoY) driven primarily by high net interest income. 9M22 PATMI was VND3.3 tn (+29% YoY), fulfilling 78% of our 2022E forecast.

Loans increased by 8.5% YTD to reach VND421 tn, and Deposits were up by +7.1% YTD to reach VND458 tn as at 3Q22.

3Q22 net interest income was VND5.8 tn (+121% QoQ/+74% YoY). 9M22 net-II was VND11.1 tn (+17% YoY). We estimate 3Q22 NIM on total assets of 4.53% (+2.46ppt QoQ/+1.54ppt YoY).

3Q22 net fee income was VND1.0 tn (-41% QoQ/+75% YoY) in 3Q22. 9M22 net fee income increased by +82% YoY to reach VND4.3 tn, largely driven by bancassurance and FX trading.

3Q22 FX trading gains reached VND220 bn (-9% QoQ/+46% YoY). 9M22 result was VND759 bn (+45% YoY).

Opex was VND3.1 tn in 3Q22 (+19% QoQ/+28% YoY). Adj. CIR was 44% in 3Q22 (-13ppt QoQ/-14ppt YoY), based on our calculations. 9M22 opex increased by +15% YoY to reach VND8.5 tn.

Provisioning soared by +10% QoQ/+155% YoY to reach VND2.4 tn in 3Q22. 9M22 provisioning was VND5.3 tn (+121% YoY).

Net other income (mainly NPL recoveries) was only VND41 bn (-97% QoQ/+5% YoY) in 3Q22.  9M22 net other income jumped by +272% YoY. Recoveries have been a feature of STB’s P&L in recent years, but this is trending down as the legacy restructuring nears completion.

NPL ratio was 0.90% (-37bps QoQ/-66bps YoY) in 3Q22. Aggregate NPLs declined by -34% YTD to reach VND3.8 tn. LLR ratio increased to 154% (+15ppt QoQ/+41ppt YoY).

CASA ratio decreased to 21.4% as at 3Q22 (-1.2ppt QoQ/-80bps YoY).

For the complete report, please access here: STB_3Q22_Results highlights

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