Analyst Meeting Update_Business results Q1/2022

Q1/2022 Result Updates

• Skyrocketed PBT in Q1 thanks to huge amount of upfront fee. PBT tripled in Q1, reaching VND11,146 bn. Credit growth was recorded at 8.6%ytd, in line with sector momentum.
• Despite higher COF due to increasing interest rate, NIM of the bank improved qoq to 8.6% thanks to good credit growth and restructured loan payment. Separate bank’s NII climbed 29.7%yoy and 16.4%qoq.
• Asset quality is in control despite separate bank’s NPL ratio was slightly up to 1.64%. Restructured loan decreased by VND3,000 bn. CAR is over 15%.
• The bank has no exposure in Tan Hoang Minh.

EVALUATION

There is large growing room in PBT: PBT of the bank stayed intact compared to the same period last year if excluding upfront fee from AIA (estimated VND6,500 bn). However, we believe that the bank has many strong factors to improve PBT in the upcoming quarters. FE Credit is still the good earnings source for the bank if it recovers (PBT in Q1 was only VND600-700 bn, lower than last year period). In addition, the bank’s growing momentum would be well over the long term, underpinned by banca and securities segments.