BUSINESS RESULT UPDATE

Credit increased by 11.4% in the first 9 months of 2023. Cost of funding still weighs on NII in Q3 which had not been able to recover strongly compared to same period last year.

The NIM continued to narrow from 4.3% Q2 to only 4% at the end of Q3.

Income from cards and payment settlement continued to support the bank’s service fee revenue growth reaching 8%yoy in the first 9 months of the year.

PBT in Q3 slightly improved compared to Q2. PBT in the first 9 months of the year reached 17.1 trillion VND, down nearly 18%yoy.

The bad debt ratio continued to increase rapidly to 1.4%. Accordingly, the bank’s credit risk provision expenses hiked compared to the same period last year.

COMMENTS

Signs of recovery are not yet clear in the bank’s business picture in the third quarter of 2023. Accordingly, the negative points are the narrowed NIM while the NPL ratio climbed. On the other hand, we can see that the bright spot is the recovery in net interest income compared to the previous 3 quarters to above VND7,000 billion. Accordingly, the bank’s pre-tax income increased slightly by 3%qoq.

We maintain the expectation that TCB will achieve credit growth around 14.1% (assigned by the State Bank) for the year 2023. PBT reached VND 23,000 billion, down 10% yoy.