VCB - NPL & Group 2 ratio remains below 1% on low write-offs - Earnings Flash

VCB released Q1 2023 results with TOI of VND18.5tn (USD785mn; +10.7% YoY) and NPAT-MI of VND9.0tn (USD381mn; +12.9% YoY), achieving 23.5% and 24.9% of our FY2023 forecasts, respectively. Excluding our assumption for a portion of the upfront banca fee to be booked in 2023, Q1 2023 NPAT-MI completed 26.0% of our full-year forecast. The increase in NPAT-MI was mainly due to (1) an 18.6% YoY increase in NII and (2) 11.1% YoY decrease in provision expenses, which were partly offset by a 46.3% decrease in pure NFI. We see no material change to our earnings forecast for VCB, pending a fuller review.

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