SSI released consolidated results for 9M 2023 with a net profit of VND1.8tn (USD73mn; +21.6% YoY), fulfilling 86.5% of our FY2023 forecast. 9M 2023 operating income (defined to include gains but not losses on the principal book) increased 2.5% YoY to VND5.1tn (USD209mn) with gains from FVTPL as the key growth driver, completing 75.3% of our full-year forecast. Meanwhile, 9M 2023 operating expenses decreased by 26.9% YoY and completed 58.5% of our full-year forecast primarily due to a lower-than-expected loss from FVTPL. Q3 2023 NPAT was VND710bn (+25.2% QoQ; +111% YoY). We foresee potential upside to our earnings forecasts for SSI, pending a more extensive review.

- 9M 2023 consolidated PBT from principal investment increased 247% YoY, accounting for 54.1% of SSI’s PBT. Q3 2023 consolidated PBT from principal investment increased 7.2% QoQ, accounting for 46.6% of SSI’s PBT.

- 9M 2023 gains from HTM investments (which include deposits and certificates of deposit with terms of less than one year) increased 7.1% YoY amid a 25.3% YoY decrease in average HTM balance, which we attribute mainly to higher yields resulting from increased interest rates in H2 2022.

Powered by Froala Editor