SSI released consolidated results for H1 2022 with net profit of VND1.1tn (USD49mn; +11.1% YoY), completing 49.6% our FY2022 forecast. H1 2022 operating income (defined to include gains but not losses on the principal book) increased 11.2% YoY to VND3.6tn (USD158mn) with margin lending revenue as the key growth driver, which completed 46.5% of our full-year forecast. Meanwhile, H1 2022 operating expenses increased at a lower rate of 4.9% YoY partly thanks to elimination of loss from derivative positions, completing 45.7% of our full-year forecast. We see no material change to our earnings forecasts for SSI, pending a more extensive review.

- The VN-Index decreased 19.7% in Q2 2022, which negatively impacted SSI’s investment gains in the quarter. SSI derived 3% of its consolidated PBT from its principal investment segment in Q2 2022, which was the lowest relative level of contribution from this segment in the last year on a quarterly basis. H1 2022 consolidated PBT from principal investment accounted for 15.2% of SSI’s PBT. 

- H1 2022 HTM investments (which include deposits and certificates of deposit with terms of less than one year) decreased 22.8% YoY on the back of a 29.9% YoY decrease in the HTM balance.

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