STB released consolidated results for 2022 with TOI of VND26.1tn (USD1.1bn; +47.7% YoY) and bottom-line net profit of VND5.0tn (USD214mn; +47.8% YoY), achieving 104.4% and 113.4% of our FY2022 forecasts, respectively. The increase in NPAT was mainly driven by (1) a 43.3% YoY increase in NII and (2) 56.7% YoY increase in NOII, which were partly offset by a 12.5% YoY increase in OPEX and 148.6% YoY increase in provision expenses. On a QoQ basis, STB reported Q4 2022 NPAT of VND1.8tn, which increased 44.5% QoQ mainly due to a 15x QoQ jump in net other income and 14.6% QoQ decrease in OPEX. We see potential upside to our earnings forecast for STB, pending a fuller review.

STB reported a slight decrease QoQ in its Q4 2022 deposit balance. While we have seen relatively strong deposit growth at banks that have released earnings results so far, we observe the opposite at STB. STB’s Q4 2022 deposit balance decreased 0.7% QoQ vs Q4 2022 loan growth of 4.2% QoQ. STB’s 2022 deposit growth was 6.4% YoY vs loan growth of 13.1% YoY.