VPB - Surge in credit cost pressures earnings growth - Earnings Flash
  • 2022-07-22T00:00:00
  • Company Research

VPB released consolidated results for H1 2022 with PBT of VND15.3tn (USD655mn; +70% YoY), which achieved 56% of our FY2022 forecast thanks to abnormal income from the bancassurance upfront fee with AIA of around VND5.5tn that was recorded in Q1 2022. If we exclude this abnormal income, consolidated business-as-usual PBT in H1 2022 completed around 45% of our full-year forecast, which implies Q2 2022 PBT of VND4.2tn — -26.4% vs Q1 2022. We see no major changes to our earnings forecast, pending a fuller review.

- H1 2022 consolidated NII was up 10.9% YoY — achieving 46% of our FY2022 forecast — with consolidated NIM at 7.44% (-143 bps YoY) vs our 2022F NIM at 7.82%.
- 6M 2022 consolidated loan growth was 10.5%, which was derived from 12.4% loan growth at the parent bank and 3.4% loan growth at FEC in the period. H1 2022 parent bank credit growth was 14.3%. As of Q2 2022, the corporate bond balance at the parent bank increased 40% vs 2021 to VND37.2tn (USD1.6bn) but decreased 11% vs Q1 2022.

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