VPB_2Q22 Results

2Q22 PATMI reached VND3.5 tn (-60% QoQ/-13% YoY). The QoQ decrease was largely due to the high base of non-interest income from the upfront bancassurance exclusivity fee in 1Q22. 1H22 PATMI was VND12.2 tn (+69% YoY), completing 52% of the bank’s full-year target.

Credit increased by +13.5% YTD to reach VND436 tn. Credit growth at the parent bank was +14.3% YTD.

2Q22 net interest income was VND10.5 tn (+6% QoQ/+13% YoY). 1H22 net interest income was VND20.4 tn (+11% YoY).

2Q22 net fee income was VND1.5 tn (+23% QoQ/+42% YoY). 1H22 net fee income was VND2.8 tn (+34% YoY), driven by income from payment, insurance, account management, and card services.

Other non-II was VND1.3 tn (-82% QoQ/-26% YoY) in 2Q22. The decline was largely due to the high base of 1Q22, which reflects the one-off upfront fee from the bancassurance deal with AIA. FX trading and securities trading/investments recorded a loss of -VND41 bn (versus gains of VND22 bn in 1Q21 and VND1,454 bn in 2Q21). NPL recoveries were VND1.0 tn (+43% QoQ/+74% YoY) in 2Q22. 1H22 NPL recoveries expanded by +26% YoY to reach VND1.7 tn.

Opex was VND3.5 tn in 2Q22 (+18% QoQ/+25% YoY). 1H opex was VND6.5 tn (+20% YoY). As a result, CIR was 20.6% during 2Q22, while the normalized CIR (ex the one-off upfront fee) was 25.1% in 1H22.

Provisioning increased by +35% QoQ/+33% YoY to reach VND5.6 tn in 2Q22. VPB increased provisioning by +12% to reach VND9.7 tn in 1H22.

The bank’s consolidated NPL ratio was 5.25% (+42bps QoQ/+1.8ppt YoY) in 1Q22. LLR ratio was 62% (-2ppt QoQ/+17ppt YoY) in 2Q22.

CASA ratio was 19% as at 2Q22 (-2.5ppt QoQ/+50bps YoY).

For the complete report, please access here: VPB_2Q22_Results

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