BUSINESS RESULT UPDATE

Credit in the third quarter improved compared to the first two quarters of the year, bringing the bank’s total credit growth in the first 9 months to 5.5%ytd (1H2023 increased by 1%ytd). The credit has been allocated more into the large corporate segment (14% of total lending book). Meanwhile, in the retail lending book, business loans have replaced auto loans to become the bank’s second largest credit proportion (19% of retail lending book).

In addition to a slight decrease in NII, a sharp increase in provision costs was the main reason why PBT in the third quarter decreased compared to the second quarter to VND 2,683 billion (also down 4%yoy). However, the bank’s 9-month PBT still recorded an increase of 7%yoy.

A notable point is that the bank still maintained a continuous increase in NIM compared to previous quarters, reaching 4.8% at the end of Q3.

The NPL ratio was almost flat and was at 2.47% at the end of Q3.

BUSINESS EXPECTATION 2023

The bank expects to fully use up the credit growth limit in 2023 (14.25%). PBT for the year 2023 is expected to reach over 11,000 billion VND, corresponding to growth of 3%-5%yoy. NIM is expected to be around 4.7%.

In terms of asset quality control, VIB expects to bring NPL ratio below 2.15% by early 2024. Credit cost is expected to gradually decrease from mid-2024.