22/10/2021 - 08:35

TCB VN_3Q21 Analyst Meeting_Key Takeaways

TCB held an analyst meeting on Oct 21 to report its 9M21 results.
3Q21 net interest income was VND6.7 tn (+2% QoQ/+31% YoY). 9M21 net interest income was VND19.5 tn (+46% YoY), largely driven by low funding costs. The bank expects net interest income to improve in 4Q21 led by an increase in retail mortgage growth as lockdowns ease.
3Q21 net fee income was VND1.5 tn (+3% QoQ/+31% YoY). 9M21 net fee income was VND4.3 tn (+31% YoY). Banca sales increased +11% QoQ/+15% YoY to reach VND242 bn in 3Q21 driven by digital sales.
3Q21 other non-interest income was VND384 bn (-46% QoQ/+2% YoY). Trading gains declined -53% QoQ/-12% YoY to reach VND291 bn. In 9M21, total other non-II was VND1.9 tn (+50% YoY).
3Q21 opex was VND2.6 tn (+1% QoQ/+6% YoY). 9M21 opex was VND7.8 tn (+20% YoY). 9M21 CIR was 28.9% (-4.4ppt YoY), which is among the lowest in the sector.
3Q21 provisioning was VND589 bn (-1% QoQ/-43% YoY). 9M21 provisioning was VND2.0 tn (-9% YoY). Provisioning was down as the bank said it fully provisioned for restructured loans previously.
PATMI reached VND4.3 tn in 3Q21 (-8% QoQ/+40% YoY). 9M21 PATMI reached VND13.4 tn (+61% YoY).
NPL ratio increased slightly to 0.57% as at 3Q21 (+21bps QoQ/-3bps YoY), which we believe is still the lowest in the sector. 3Q21 LLR ratio declined to 184% (-75ppt QoQ/+36ppt YoY).
Total restructured loans increased slightly to VND2.8 tn as at 3Q21 (0.9% of 3Q21 loans) from VND2.7 tn in 2Q21 (0.8% of 2Q21 loans).
Strong deposit franchise. CASA ratio was a sector-high 49.0% as at 3Q21 (+3pptQoQ/+10ppt YoY), as bundled services to corporates increased. However, the bank expects it to decrease in 4Q21 and maintain at the 2020 level of 46%.
ST funding to MLT loans was 32.6% as at 3Q21, well below the SBV’s cap of 37.0%. TCB has raised USD800 mn from an offshore syndicated loan, which will further reduce the ratio of ST funding to MLT loans