HDB released Q1 2023 consolidated results with PBT of VND2.7tn (USD117mn; +8.5% YoY), achieving 24% of our FY2023 forecast if we exclude our assumption for one-off banca income of VND5tn. The increase in Q1 2023 consolidated PBT was mainly driven by (1) a 19.7% YoY increase in NII that outweighed (2) a 24.3% YoY decrease in NOII and (3) 42.8% YoY surge in provision expenses. Overall, the bottom line was in line with our expectation.

- Q1 2023 consolidated credit growth was 9.0% QoQ, which was derived from (1) consolidated loan growth of 9.4% QoQ and (2) a 12.9% decrease in the corporate bond balance vs Q4 2022. As of Q1 2023, corporate bonds accounted for 1.3% of HDB’s consolidated total credit exposure. 

- According to our estimation, HDS’s Q1 2023 loan book decreased 7.8% QoQ to VND15.5tn (USD661mn) — with its loan book contributing ~5.4% to the consolidated loan book.

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