TCB_1H22 Analyst Meeting

PATMI reached VND5.8 tn (+5% QoQ/+23% YoY) in 2Q22. The YoY increase was driven by strong net interest income and fees, and by sharply lower provisioning. 1H22 PATMI was VND14.1 tn (+22% YoY), completing 52% of the bank’s full-year target.

2Q22 net interest income was VND7.8 tn (-4% QoQ/+18% YoY). 2Q22 credit growth was 13% YTD, and retail loans accounted for 46.6% of the total as at 2Q22 (vs. 38.8% as at 1Q22). NIM was 5.6% (-4bps YoY).

2Q22 net fee income was VND2.1 tn (+16% QoQ/+43% YoY), driven by cards, banca, and letters of credit. The bank reported banca sales of VND617 bn in 1H22 (+31.5% YoY); thus, 2Q22 banca sales were VND399 bn (+83% QoQ/+68% YoY). IB fees were VND1.8 tn in 1H22 (+4.0% YoY); thus, 2Q22 fees were VND704 bn (-22.8% YoY), largely due to the changes in regulations governing bond activities.  

2Q22 opex was VND3.3 tn (+6% QoQ/+27% YoY).  CIR was 30% (-1ppt QoQ/+2ppt YoY), which is among the lowest in the sector.

2Q22 provisioning was VND417 bn (+91% QoQ/ -30% YoY). 1H22 provisioning declined by -56% YoY to reach VND636 bn. The bank said that customer financial health has improved, which has allowed for provisioning reversals.

NPL ratio decreased slightly to 0.60% as at 2Q22 (-7bps QoQ/+25bps YoY), which we believe is once again the lowest in the sector. TCB’s 2Q22 LLR ratio was 172% (+11ppt QoQ/-87ppt YoY).

Total restructured loans decreased by -69% QoQ/-81% YoY to VND500 bn as at 1Q22 (0.1% of 2Q22 total loans).

CASA ratio decreased to 47.5% as at 2Q22 (-3ppt QoQ/+1ppt YoY). The bank states that customers have been allocating their CASA deposits into investments such as real estate and securities trading.

ST funding to MLT loans was 32.0% as at 2Q22, well below the SBV’s cap of 37.0%. LDR was 78.8% versus the SBV’s cap of 85.0%.

CAR was 15.7%, far above the Basel II’s minimum requirement of 8.0%.

For the complete report, please access here: TCB_1H22 Analyst Meeting_Takeaways

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