VIB_2Q22 Analyst Meeting

PATMI jumped +20% QoQ/+28% YoY to reach VND2.2 tn in 2Q22, mainly driven by strong net interest income and fee growth. 1H22 PATMI reached VND4.0 tn (+27% YoY).

Loans to customers increased by +10% YTD to reach VND222 tn. Retail loans accounted for 90% of total loans, and 93% of retail loans are secured loans. VIB’s LDR was relatively low at 70%, well below the SBV’s cap of 85%.

2Q22 net interest income (net-II) increased by +5% QoQ/+25% YoY to reach VND3.7 tn. 1H22 net-II was VND7.2 tn (+26% YoY). VIB reported 2Q22 NIM of 4.5% (+10bps QoQ/flat YoY). The bank expects NIM to maintain at 4.3%-4.5% for 2022E.

2Q22 net fee income was VND905 bn (+40% QoQ/+18% YoY) in 2Q22, largely driven by banca fees and cards.

2Q22 opex was VND1.5 tn (+3% QoQ/+12% YoY). 1H22 opex was VND2.9 tn (+9% YoY). The bank reported CIR of 34% (-1ppt QoQ/-4ppt YoY), and it aims to maintain CIR at 33%-35% in 2022 through digitization.

2Q22 provisioning was VND363 bn (-9% QoQ/+16% YoY). 1H22 provisioning was VND761 bn (+17% YoY). The bank reported credit cost/loans of 0.8% (flat QoQ/+10bps YoY).

VIB’s NPL ratio was 1.74% (+4bps QoQ/+42bps YoY) at 2Q22 (defined under SBV regulations). We estimate 2Q22 LLR ratio increased slightly to reach 54% (+2ppt QoQ/-10ppt YoY).

Restructured loans were VND666 bn as at 2Q22 (0.19% of total loans).

CASA ratio decreased to 13.9% (-1ppt QoQ/+2ppt YoY) as at 2Q22. The bank’s 5-year target is to increase CASA ratio to 30%.

ST funding to MLT loans (SML) was 29.2% as at 2Q22 vs. the SBV’s cap of 37%. CAR was 11.5% (+20bps QoQ/+1.2ppt YoY).

For the complete report, please access here: VIB_2Q22 Analyst meeting_Takeaways

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