VCB_3Q22 Results Highlights

VCB reported 3Q22 PATMI of VND6.1 tn (+2% QoQ/+32% YoY). The YoY increase was driven by higher net interest income. 9M22 PATMI was VND19.9 tn (+29% YoY), fulfilling 64% of our 2022E forecast.

Loans to customers increased by 17.6% YTD to reach VND1,130 tn, whereas deposits from customers increased by +5.4% YTD to reach VND1,197 tn as at 3Q22.

3Q22 net interest income (net-II) was VND13.7 tn (+7% QoQ/+31% YoY). 9M22 net-II was VND38.4 tn (+22% YoY). We estimate 3Q22 NIM/total assets was 3.36% (+2bps QoQ/+26bps YoY).

3Q22 net fee income was VND1.1 tn (+59% QoQ/-2% YoY). 9M22 net fee income was VND4.5 tn (-10% YoY).

Net gains from FX trading and securities trading/investment were VND1.4 tn (-9% QoQ/+19% YoY) in 3Q22.

Net other income (mainly NPL recoveries) was VND389 bn (-56% QoQ/-14% YoY) in 3Q22.

Opex increased +10% QoQ/+27% YoY to reach VND6.4 tn. 9M22 opex was VND16.7 tn (+15% YoY). We estimate adj. CIR of 39% (+50bps QoQ/-10bps YoY) in 3Q22.

Provisioning was VND2.8 tn (+2% QoQ/+11% YoY) in 3Q22. 9M22 provisioning was VND7.8 tn (-3% YoY).

Increasing NPLs. NPL ratio was 0.80% (+19bps QoQ/-37bps YoY) in 3Q22. Aggregate NPLs jumped to VND9.0 tn (+35% QoQ/ but -17% YoY). LLR ratio decreased to 402% (+104ppt QoQ/+159ppt YoY), which we believe is still the highest in the sector.

CASA deposits were VND418 tn (-1% QoQ/+10% YoY) as at 3Q22. CASA ratio was 34.9% as at 3Q22 (-50bps QoQ/but +60bps YoY).

For the complete report, please access here: VCB_3Q22_Results highlights

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