BID released 2022 results with TOI of VND69.6tn (USD2.9bn; +11.4% YoY) and NPAT-MI of VND18.2tn (USD771mn; +72.6% YoY), achieving 99.3% and 104.9% of our FY 2022 forecasts, respectively. The increase in the bottom line was mainly thanks to (1) a 19.7% YoY increase in NII, (2) 65.6% YoY increase in gains from FX trading and (3) 18.6% YoY decrease in provision expenses, which were partly offset by a 14.4% YoY decrease in pure NFI, 31.8% YoY decrease in net other income and 15.8% YoY increase in OPEX. Q4 2022 NPAT-MI was VND4.2tn (-20.7% QoQ & +91.6% YoY). We see no material change to our earnings forecasts for BID, pending a fuller review.

Deposit growth improved in Q4 2022. BID recorded Q4 2022 deposit growth of 4.2% QoQ vs credit growth of 1.8% QoQ, in which loans to customers increased 1.8% QoQ and the corporate bond balance increased 0.2% QoQ. 2022 deposit growth was 6.8% vs credit growth of 12.1%.