VCB_2Q22 results

VCB reported 2Q22 PATMI of VND5.9 tn (-25% QoQ/+50% YoY). The YoY increase was driven by higher net interest income and net non-interest incomes, and lower YoY provisioning. 1H22 PATMI was VND13.9 tn (+28% YoY), fulfilling 49% of our 2022E forecast.

Loans increased by 14.6% YTD to reach VND1,101 tn, whereas deposits increased by +5.3% YTD to reach VND1,195 tn as at 2Q22.

2Q22 net interest income (net-II) was VND12.8 tn (+7% QoQ/+15% YoY). 1H22 net-II was VND24.8 tn (+17% YoY). We estimate 2Q22 NIM was 3.46% (flat QoQ/-10bps YoY).

2Q22 net fee income was VND695 bn (-74% QoQ/+62% YoY). 1H22 net fee income was VND3.4 tn (-12% YoY).

Net gains from FX trading and securities trading/investment increased by +2% QoQ/+58% YoY to reach VND1.6 tn in 2Q22.

Net other income (mainly NPL recoveries) was VND881 bn (+82% QoQ/+145% YoY) in 2Q22.

Opex increased +29% QoQ/+23% YoY to reach VND5.8 tn. 1H22 opex was VND10.3 tn (+9% YoY). Adj. CIR was 39% (+80bps YoY) in 2Q22.

Provisioning was VND2.7 tn (+20% QoQ/but -15% YoY) in 2Q22. 1H22 provisioning was VND5.0 tn (-9% YoY).

Decreasing NPLs. NPL ratio was 0.61% (-21bps QoQ/-14bps YoY) in 2Q22. Aggregate NPLs declined to VND6.7 tn (-20% QoQ/-2% YoY). LLR ratio jumped to a record high of 506% (+133ppt QoQ/+154ppt YoY), which is the highest in the sector.

CASA deposits were VND423 tn (-1% QoQ/+21% YoY) as at 2Q22. CASA ratio was 35.4% as at 2Q22 (-90bps QoQ/but +2ppt YoY).

For the complete report, please access here: VCB_2Q22_Results highlights

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