VCB_3Q21 Results highlight

VCB reported 3Q21 PATMI of VND4.6 tn (+16% QoQ/+15% YoY). The QoQ results were driven by higher fees and FX gains and lower provisioning cost. Strong net interest income (+20% YoY) supported YoY earnings. 9M21 PATMI was VND15.5 tn (+21% YoY).

Details

Loans increased by 11.5% YTD (vs. the full-year quota of 12.5%) to reach VND936 tn, while deposits increased by +7.4% YTD to reach VND1,108 tn as at 3Q21.

3Q21 net interest income (net-II) was VND10.4 tn (-6% QoQ/+20% YoY). 9M21 net-II was VND31.6 tn (+22% YoY).

3Q21 net fee income was VND1.1 tn (+163% QoQ/-10% YoY), which was a key driver for QoQ earnings growth. 9M21 net fee income was VND5.0 tn (+41% YoY).

Net gain FX and gold dealings were VND1.2 tn in 3Q21 (+19% QoQ/+13% YoY). 9M21 results were VND3.2 tn (+8% YoY).

Opex was VND5.0 tn in 3Q21 (+6% QoQ/+9% YoY). 9M21 opex was VND14.5 tn (+15% YoY). CIR was 35% in 9M21 (-1ppt YoY).

Provisioning was VND2.5 tn (-22% QoQ/but +24% YoY) in 3Q21. 9M21 provisioning was VND8.0 tn (+33% YoY).

Net other income (mainly NPL recoveries) was VND452 bn (+26% QoQ/-16% YoY). 9M21 net other income was VND1.8 tn (-2% YoY).

Rising NPLs. NPL ratio was 1.16% (+42bps QoQ/+15bps YoY) in 3Q21. Aggregate NPLs were VND10.9 tn (+59% QoQ/+38% YoY). LLR ratio was 243% (-109ppt QoQ/ but +28ppt YoY), which is still the highest in the sector.

CASA deposits were VND381 tn (+9% QoQ/+27% YoY). CASA ratio was 34.3% as at 3Q21 (+1ppt QoQ/+4ppt YoY).

For the complete report, please access here: VCB_3Q21_Results highlights

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