BID released 9M 2021 results with TOI of VND47.1tn (USD2.1bn; +36.4% YoY) and NPAT-MI of VND8.4tn (USD363mn; +51.9% YoY), achieving 83.4% and 80.6% of our FY 2021 forecasts, respectively. The increase in the bottom line was mainly due to (1) a 42.5% YoY increase in NII, (2) 30.1% YoY increase in pure NFI, (3) 70.1% YoY increase in net other income and (4) 16.2% YoY increase in OPEX that lagged TOI growth, which were partly offset by a 43.9% YoY increase in provision expenses. Compared to Q3 2020, Q3 2021 NPAT-MI declined 2.9% YoY to VND2.0tn mainly due to a strong 30.3% YoY increase in provision expenses. Going forward, we will have further discussions with the bank to have a broader view on its Q3 2021 restructured loans. At this point, we see potential upside risk to our current forecast for BID’s 2021F earnings, pending a fuller review.

Powered by Froala Editor