SSI released consolidated results for 2022 with net profit of VND1.7tn (USD72mn; -37.0% YoY), completing 95.8% our FY2022 forecast. 2022 operating income (defined to include gains but not losses on the principal book) decreased 14.9% YoY to VND6.3tn (USD268mn) — completing 99.0% of our full-year forecast — mainly due to a decrease in gains from FVTPL and HTM as well as a decrease in brokerage revenue that were partly offset by decent growth in margin lending revenue. Meanwhile, 2022 operating expenses decreased 14.3% YoY partly thanks to a smaller loss from financial asset disposal at FVTPL, completing 92.6% of our full-year forecast. We see slight downside risk to our earnings forecasts for SSI, pending a more extensive review.

The VN-Index decreased 32.8% in 2022, which negatively impacted SSI’s investment gains. 2022 consolidated PBT from principal investment decreased 43.9% YoY, accounting for 26.1% of SSI’s PBT.

 2022 HTM investments (which include deposits and certificates of deposit with terms of less than one year) decreased 42.1% YoY as a result of a 42.3% YoY decrease in the average HTM balance.