TPB - Strong credit growth compensates for lower NIM - Earnings Flash

TPB released robust 2021 results with PPOP of VND8.9tn (USD389mn; +45.0% YoY) and bottom-line net profit of VND4.8tn (USD210mn; +37.6% YoY), completing 105% and 121% of our forecasts, respectively. The increase in NPAT-MI was mainly driven by (1) a 30.5% YoY increase in NII, (2) 64.6% YoY increase in pure net fee income, (3) 98.4% YoY surge in investment securities gain that was driven mostly by a strong performance in Q3 2021 and (4) OPEX only growing 8.9% YoY relative to TOI growth of 30.4% YoY, which outweighed a 63.1% YoY rise in provision expenses. We see potential upside risk to our 2022F earnings forecast, pending for a fuller review.

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