Q1/2022 BUSINESS PERFORMANCE

• In Q1/2022, MSB reported 30%yoy growth in PBT which is underpinned by good NII and the reduction in operating and provision expenses.
• The bank’s total credit climbed by 9%ytd. All segments (individual, SME and LC) were growing well.
•  NII reached a record high at 3.85% at the end of Q1 thanks to lower COF at 2.25%. MSB currently ranks top 3 in terms of CASA ratio in the system at 38%. The latter is expected to improve to 40% at the end of this year.
•  Asset quality is under control with the NPL ratio slightly upward to 1.29%. Meanwhile, restructured loans were reduced by 10% to VND 2,878 billion.

COMMENTS

As a small-medium size bank, MSB owns good growth momentum in terms of credit and PBT. The bank is one of the limited banks in the system that recorded upward NIM in Q1/2022. In addition, the abnormal income from FCCOM divestment would be the catalyst for the bank in the 2022-2023 period.
Although MSB has limited exposure to real estate lending and corporate bonds, we should access it in a more prudent manner given the banking sector’s high sensitiveness to the real estate sector.