VIB_9M21 Analyst Meeting_Takeaways

3Q21 net interest income was VND2.7 tn (-10% QoQ/+20% YoY). 9M21 net interest income was VND8.4 tn (+42% YoY). The bank expects net interest income to improve in 4Q21 as stalled restructured loan payments resume and COF declines due to the $260 mn in ADB funding.

3Q21 net fee income declined -46% QoQ/-33% YoY to reach VND414 bn, which was the key earnings drag. 9M21 net fee income was VND1.8 tn (+9% YoY), of which banca fees were VND754 bn (-8% YoY) while card fees increased by +49% YoY to reach VND520 bn.

3Q21 opex was VND1.4 tn (+6% QoQ/+27% YoY) due to employee incentives. 9M21 opex was VND4.1 tn (+31% YoY). 9M21 CIR was 39.8% (-50bps YoY). The bank expect CIR to decrease in 4Q21.

3Q21 provisioning was VND267 bn (-15% QoQ/+12% YoY). 9M21 provisioning was VND915 bn (+39% YoY).

PATMI declined -36% QoQ/-17% YoY to reach only VND1.1 tn in 3Q21. 9M21 PATMI reached VND4.3 tn (+33% YoY). The bank still expects to exceed the PBT target (VND7.5 tn, +29% YoY) set in the AGM for 2021.

NPL ratio (cir. 02) was 1.57% as at 3Q21 (+25bps QoQ/-19bps YoY). 3Q21 LLR ratio declined to 54% (-10ppt QoQ/+6ppt YoY), which is low compared to the sector median of 74%. The bank justifies its relatively low LLR by high secured loans (93% of the total loans).

The bank said restructured loans were below 1% of 3Q21 loans, mostly from retail lending with small average size of less than VND1 bn.

CASA ratio was low at 12.6% as at 3Q21 (+20bps QoQ/+1ppt YoY).

ST funding to MLT loans was 31.7% as at 3Q21, well below the SBV’s cap of 40%. CAR ratio was 10.6%.

For the complete report, please access here: VIB_9M21 Analyst meeting_Takeaways

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