SSI released consolidated results for 9M 2022 with net profit of VND1.5tn (USD60mn; -13.7% YoY), completing 67.7% our FY2022 forecast. 9M 2022 operating income (defined to include gains but not losses on the principal book) decreased 0.7% YoY to VND5.0tn (USD203mn), completing 67.4% of our full-year forecast as a decrease in gains from FVTPL and HTM as well as a decrease in brokerage revenue were offset by strong growth in margin lending revenue. Meanwhile, 9M 2022 operating expenses decreased 1.0% YoY partly thanks to a lower loss from financial asset disposal at FVTPL, completing 66.1% of our full-year forecast. We see potential downside risk to our earnings forecasts for SSI, pending a more extensive review.

- The VN-Index decreased 24.4% in 9M 2022, which negatively impacted SSI’s investment gains. 9M 2022 consolidated PBT from principal investment decreased 20.4% YoY, accounting for 18.9% of SSI’s PBT.

- 9M 2022 HTM investments (which include deposits and certificates of deposit with terms of less than one year) decreased 38.5% YoY as a result of a 33.3% YoY decrease in the average HTM balance.

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