MBB released consolidated results for Q1 2023 with PBT of VND6.5tn (USD277mn; +10% YoY), which completed 26% of our FY2023 forecast and was driven by (1) a 22.0% YoY increase in NII and (2) 13.0% YoY decrease in provision expenses that outweighed (3) a 48% YoY decrease in NOII. Overall, MBB’s bottom line tracked slightly ahead of our expectation due to lower-than-expected credit costs and OPEX. 

- Q1 2023 consolidated credit growth was 3.8% QoQ, which was derived from (1) 4.5% loan growth and (2) a 3.0% QoQ decrease in corporate bond balances. We note that corporate bond balances accounted for 8.6% of MBB’s total credit exposure as of Q1 2023 (vs 9.2% in 2022).