LPB - Surge in Q4 NIM makes up for weak NOII; NPAT in line - Earnings Flash
  • 2022-01-20T00:00:00
  • Company Research

LPB released 2021 results with PPOP of VND5.0tn (USD216mn; +58.7% YoY) and bottom-line net profit of VND2.9tn (USD124mn; +54.3% YoY), achieving 100.4% and 100.3% of our FY2021 forecasts, respectively. The increase in NPAT was mainly due to (1) a 34.2% YoY increase in NII, (2) 36.9% YoY increase in pure NFI, (3) 123.7% YoY increase in FX trading gains (from a low base) and (4) 9.6% YoY increase in OPEX that significantly lagged TOI growth of 29.3%; these items were partly offset by (1) an 89.1% YoY increase in provision expenses, (2) VND1bn of loss in income from investment securities vs a VND138bn gain in 2020 and (3) 82.3% YoY decrease in net other income. Comparing the last quarter with the same quarter the year before, Q4 2021 NPAT advanced 38.2% YoY to VND645bn mainly due to NIM expansion. We will wait for the bank’s Q4 2021 restructured loan balance for further assessment. At this point, we see no material change to our earnings forecast for LPB, pending a fuller review.

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