MBB released consolidated results for H1 2023 with PBT of VND12.7tn (USD542mn; +7.1% YoY), completing 51% of our FY2023 forecast and implying Q2 2023 PBT of VND6.2tn (flat YoY; -4% QoQ). Overall, MBB’s bottom line tracked slightly ahead of our expectation due to lower-than-expected credit costs and strong NII. 

- H1 2023 credit growth was 10.6% vs the current credit quota of 24.5%. The credit growth was derived from (1) loan growth of 12.5% and (2) an 8.3% decrease in MBB’s corporate bond balance vs Q4 2022. As of Q2 2023, corporate bonds accounted for 7.7% of MBB’s total credit exposure. 

- H1 2023 deposit growth was 7.2%. The Q2 2023 CASA ratio of 37.1% (vs 35.5% in Q1 2023) continued to be the highest in our coverage.  We note that MBB targets its CASA ratio to be controlled at around 40% as of 2023.

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