VCB - Strong H1 2022 credit growth on higher YoY, flat QoQ NIM - Earnings Flash
  • 2022-07-26T00:00:00
  • Company Research

VCB released H1 2022 results with TOI of VND32.7tn (USD1.4bn; +14.4% YoY) and NPAT-MI of VND13.9tn (USD604mn; +28.0% YoY), achieving 48.1% and 45.1% of our FY2022 forecasts, respectively. The increase in NPAT-MI was mainly due to (1) a 17.0% YoY increase in NII, (2) 47.6% YoY increase in gains from FX trading and (3) 9.0% YoY decrease in provision expenses. These were partly offset by an 11.9% YoY decrease in pure NFI. On a QoQ basis, Q2 2022 NPAT-MI was VND5.9tn (+6.9% QoQ if we exclude VND3tn of provisioning reversal for CB Bank in Q1 2022). We see no material change to our earnings forecast for VCB, pending a fuller review.

Strong Q2 2022 loan growth; 6M 2022 credit growth was close to initial credit quota. VCB reported Q2 2022 credit growth of 6.9% QoQ (similar to the 6.98% QoQ level it achieved in Q1 2022), in which loans to customers increased 7.0% QoQ and the corporate bond balance decreased 0.7% QoQ. 6M 2022 credit growth was 14.4% vs the initial credit quota of 15%. In addition, 6M 2022 deposit growth was 5.3%.

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