TCB released consolidated results for 9M 2022 with PPOP and NPAT-MI of VND22.1tn (USD901mn; +15.3% YoY) and VND16.6tn (USD678mn; +23.5% YoY), which achieved 75.2% and 76.5% of our full-year forecasts, respectively. The increase in the bottom line was driven by (1) 20.6% YoY and 40.0% YoY increases in NII and pure NFI, respectively, as well as (2) a 38.9% YoY decrease in provision expenses. These factors were partly offset by (1) a VND29bn gain from FX trading vs VND259bn in 9M 2021 and (2) a VND301bn gain from trading and investment securities vs VND1.7tn in 9M 2021. On a QoQ basis, Q3 2022 NPAT-MI was VND5.3tn (-8.7% QoQ). We see no material change to our 2022F earnings forecast for TCB, pending a fuller review.

Loan growth remained resilient in Q3 2022 amid a continued drop in the corporate bond balance. TCB recorded a 2.9% QoQ increase in its credit balance in Q3 2022, in which gross loans increased 4.8% QoQ while corporate bond book decreased 11.8% QoQ. 9M 2022 credit growth was 10.7% vs the bank’s credit quota of around 11.7%.