LPB released H1 2023 results with TOI of VND6.0tn (USD255mn; -14.4% YoY) and bottom-line net profit of VND2.0tn (USD83mn; -31.7% YoY), achieving 38.7% and 38.3% of our FY2023 forecasts, respectively. Excluding our upfront bancassurance fee assumption, H1 2023 net profit completed 45.4% of our full-year forecast. LPB’s Q2 2023 NPAT was VND708bn (-43.0% QoQ; -50.6% YoY). We see potential downside risk to our earnings forecasts for LPB, pending a more extensive review.

- 6M 2023 loan growth was 7.6%, and Q2 2023 loan growth was 4.7% QoQ. We note that LPB did not have a corporate bond balance as of Q2 2023.
- 6M 2023 customer deposit growth was 3.8% vs our full-year forecast of 12.0% YoY. In Q2 2023, LPB’s CASA ratio increased 197 bps QoQ but decreased 45 bps YoY to 7.3%.
- H1 2023 NIM of 3.19% (-94 bps YoY) was lower than our full-year forecast of 3.85%, which we mainly attribute to greater-than-expected COF and NPL formation. Q2 2023 NIM was 2.96% (-47 bps QoQ).