BID – Earnings review – [BUY] – Improving earnings quality

4Q24 profit before tax was up +18.4% yoy to VND9,336bn thanks to (1) resilient net interest incomes (+5.2%yoy) (2) non-interest incomes with substantial growth (+88%yoy), and (3) manageable operating expenses (CIR: from 38% in 4Q23 to 36% in 4Q24), compensating for higher provision risks expenses (+57.4%yoy). Recovering non-interest incomes resulted from higher service incomes (+21.6%yoy), investment activities (+68%yoy), and a significant turnaround in other incomes from a loss of VND676bn in 4Q23 to VND1,949bn in 4Q24. Accumulated 2024 profit before tax rose by +14%yoy to VND31,383bn. Despite higher estimated net interest income offsetting lower estimated non-interest income, KIS’s estimated 2024 PBT equalled 102% of the actual figure.