SSI released consolidated results for Q1 2023 with net profit of VND503bn (USD21mn; -28.8% YoY), completing 29.6% our FY2023 forecast. Q1 2023 operating income (defined to include gains but not losses on the principal book) decreased 25.8% YoY to VND1.5tn (USD63mn) — completing 23.5% of our full-year forecast — mainly due to decreases in gains from HTM, brokerage revenue and margin lending revenue. Meanwhile, Q1 2023 operating expenses decreased 51.9% YoY primarily thanks to a smaller loss from financial asset disposal at FVTPL and derivative positions, completing 14.5% of our full-year forecast. We see a slight upside to our earnings forecasts for SSI, pending a more extensive review.

Q1 2023 consolidated PBT from principal investment increased 104% YoY, accounting for 64.6% of SSI’s PBT.

 Q1 2023 HTM investments (which include deposits and certificates of deposit with terms of less than one year) decreased 14.0% YoY as a result of an 18.1% YoY decrease in the HTM balance.