STB released consolidated results for H1 2022 with TOI of VND11.3tn (USD489mn; +26.6% YoY) and bottom-line net profit of VND2.1tn (USD90mn; +8.6% YoY), achieving 46.1% and 43.3% of our FY2022 forecasts, respectively. The increase in NPAT was mainly driven by (1) an 84.7% YoY increase in pure NFI, (2) 43.9% YoY increase in gains from FX trading and (3) 4x YoY increase in net other income, which were partly offset by (1) a 13.2% YoY decrease in NII and (2) 99.0% YoY increase in provision expenses. On a quarterly basis, STB reported Q2 2022 NPAT of VND804bn, which was down 36.9% QoQ and 27.7% YoY mainly due to accrued interest reversal and increased provisioning. We see no material change to our earnings forecast for STB, pending a fuller review.

Q2 2022 loan growth capped by tight initial credit quota. STB reported modest Q2 2022 loan growth of 0.3% QoQ, which lifted 6M 2022 loan growth to 6.9% vs the initial credit quota of 7%. STB does not have corporate bonds on its balance sheet. 6M 2022 deposit growth was reported at 6.8% — nearly the same level of loan growth.