BUSINESS PERFORMANCE

In Q3/2022, TCB recorded 22% growth in PBT. Accumulated 9 months profit increased by 21%yoy.
CASA decreased to 46.5% and the interest rate hike put pressure on the COF of the bank which was up 60bps in Q3.
Credit portfolio expanded 10.5%ytd, mostly driven by rapid growth in individual loans (+37%ytd). Meanwhile, WB and corporate bond portfolio were reduced.
Non-interest income activities stayed intact (exempt for IB).
NPL ratio remained low at 0.6% while restructured loans declined to VND400bn.

COMMENTS

The core business of TCB was affected by the recent interest rate hike. As per our comment in the July report, NIM of the bank declined to 5.4% in Q3 and is likely to be 5.3% on average for the full year 2022.
We believe that the bank’s profit will likely stable in the next 3 quarters due to the adverse movement in macro (interest rate hike) and bond market.
Despite owning an advantage over other banks and low P/B, the recent challenges in the key business will continue.
We recommend “Neutral” with TCB.