ACB - 2022 NPAT growth is in line with our forecasts - Earnings Flash

ACB announced 2022 results with TOI of VND28.8tn (USD1.2tn; +22.2% YoY) and bottom-line net profit of VND13.7tn (USD583.7mn; +42.5% YoY), achieving 104.7% and 99.2% of our FY2022 forecasts, respectively. The strong increase in 2022 NPAT was mainly due to (1) a 24.3% YoY increase in NII, (2) 21.8% YoY increase in pure NFI, (3) 609.6% YoY surge in net other income — we believe most of this was from the recovery of writing-off bad debts — and (4) 97.9% YoY decrease in provision expenses. These factors outweighed (1) a VND388bn loss from trading securities compared with a VND450bn gain in 2021, (2) a 91.5% YoY decline in gains from investment securities and (3) a 41.0% YoY increase in OPEX. We currently do not foresee any material change to our forecasts, pending a fuller review.