LPB released 2022 results with TOI of VND14.2tn (USD600mn; +41.0% YoY) and bottom-line net profit of VND4.5tn (USD191mn; +57.0% YoY), achieving 103.9% and 98.4% of our FY2022 forecasts, respectively. The surge in NPAT was mainly due to (1) a 32.0% YoY increase in NII, (2) 119.7% YoY increase in NOII and (3) slower growth of OPEX vs TOI (4.3% YoY vs 41.0% YoY, respectively). These factors were partly offset by a 140.0% YoY increase in provision expenses. On a quarterly basis, Q4 2022 NPAT was VND668bn (-32.3% QoQ & +3.6% YoY). We see no material changes to our earnings forecasts for LPB, pending a more extensive review.

* Deposit growth significantly outpaced loan growth in Q4 2022. LPB reported Q4 2022 deposit growth of 11.6% QoQ, in which deposit balance from institutional customers increased 12.7% QoQ while that from retail customers increased 11.0% QoQ. Meanwhile, Q4 2022 loan growth was slow at 3.3% QoQ, which we believe could have been caused by the low credit quota granted by the SBV. 2022 deposit growth was 19.8% vs loan growth of 12.7%. We note that LPB has not had corporate bond exposure since Q2 2022.

Powered by Froala Editor