VPB VN_9M21 Analyst Meeting_Takeaways

We attended VPB’s 3Q21 analyst meeting on Nov 2. VPB reported 3Q21 PATMI of VND2.2 tn (-46% QoQ/-4% YoY). The decline was largely due to lower net interest income and increased provision cost. 9M21 PATMI was VND9.4 tn (+25% YoY). FE Credit contributed only 7% to total profit (vs. 12% in 2Q21 and 29% in 2020).

Details

3Q21 loans to customers increased by 9.1% YTD to reach VND317 tn. FE Credit accounted for 20% of total loans at VND62.4 tn (+2% YTD)

3Q21 net interest income (net-II) was VND7.5 tn (-19% QoQ/-5% YoY). 9M21 net-II was VND25.8 tn (+9% YoY).

3Q21 net fee income was VND791 bn (-27% QoQ/-16% YoY). 9M21 net fee income was VND2.9 tn (+23% YoY).

Opex was VND2.5 tn in 3Q21 (-13% QoQ/-12% YoY). 9M21 opex was VND7.9 tn (-9% YoY). CIR was 24% in 9M21 (-6ppt YoY) thanks to digitization.

Provisioning increased by +19% QoQ/+29% YoY to reach VND5.0 tn in 3Q21. 9M21 provisioning was VND13.6 tn (+32% YoY).

Net other income (mainly NPL recoveries) was VND1.2 tn in 3Q21 (+319% QoQ/+122% YoY). 9M21 result was VND2.2 tn (+47% YoY).

Consolidated NPL ratio (Cir.02) was 3.29% (+35bps QoQ/+31bps YoY) in 3Q21. NPL ratio at FE was 11.0% (+2ppt QoQ/+6ppt YoY). Restructured loans were VND15.9 tn (+17% YTD, 5.0% of consolidated loans) as at 3Q21. Restructured loans of VPBank standalone were VND10.5 tn (-11% YTD, 3.3% of cons. loans), while that of FE Credit jumped by +192% YTD to reach VND5.4 tn (1.7% of cons. loans).

LLR ratio was 48.9% (+4ppt QoQ/+1ppt YoY) in 3Q21, and LLR ratio (on & off BS) was 60.2% (+70bps QoQ/-30bps YoY).

CASA deposits increased. CASA ratio was 22% as at 3Q21 (+3ppt QoQ/+6ppt YoY). CAR was 12.4% as at 3Q21, well above the Basel II’s requirement of 8.0%.

For the complete report, please access here: VPB_9M21 Analyst Meeting

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