TPB released Q1 2022 results with TOI of VND3.6tn (USD157mn; +29.2% YoY) and bottom-line net profit of VND1.3tn (USD56mn; +14.2% YoY), achieving 22.1% and 18.8% of our FY 2022 forecasts, respectively. The increase in NPAT was mainly due to (1) a 25.1% YoY increase in NII and (2) 81.2% YoY increase in pure NFI, which offset (1) a 70% YoY drop in net gain from investment securities and (2) 25.7% YoY increase in OPEX, resulting in a 1.0-ppt drop YoY in CIR. Loans and deposits in Q1 2022 grew 6.1% and 9.3%, up 2.4 ppts and 5.7 ppts, respectively, relative to last year. Although loan growth is tracking in line with our full-year forecast of 25.7%, NIM in Q1 2022 is a concern; therefore, we see downside risk to our current forecasts and/or target price for TPB, pending a more extensive review.

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