VCB released 9M 2022 results with TOI of VND49.4tn (USD2.0bn; +18.1% YoY) and NPAT-MI of VND20.0tn (USD815mn; +29.2% YoY), achieving 72.6% and 68.5% of our FY2022 forecasts, respectively. The increase in NPAT-MI was mainly due to (1) a 21.6% YoY increase in NII, (2) 43.1% YoY increase in gains from FX trading and (3) 2.8% YoY decrease in provision expenses. On a QoQ basis, Q3 2022 NPAT-MI was VND6.1tn (+2.2% QoQ). We see no material change to our earnings forecast for VCB, pending a fuller review.

Corporate bond balance decreased in Q3 2022 on both a QoQ and YoY basis, accounting for 1.0% of VCB’s credit balance. VCB reported Q3 2022 credit growth of 2.6% QoQ, in which loans to customers increased 2.7% QoQ and the corporate bond balance decreased 3.7% QoQ. 9M 2022 credit growth was 17.3%, in which loans to customers increased 17.6% and the corporate bond balance decreased 6.7%. In addition, 9M 2022 deposit growth was 5.4%.