Research Center

GTJASVN_VPB Equity Report_FE Credit has not recovered as expected_Aug 2023_en

11/08/2023

Share:

PERFORMANCE UPDATES

In the first half of 2023, VPB is one of the banks with the highest credit growth rate in the system, at 13.1%ytd (parent bank).

Deposits grew faster than loans and the increasing cost of capital (COF) was the main reason for the decrease in NII of the bank.

On the non-interest income side, income from securities trading & investment activities as well as from FX activities are still less positive. Meanwhile, the absence of one-off revenue (from the contract with AIA 1H22) caused the bank’s TOI to decline. Excluding this one-off, the parent bank’s TOI was flat in the first half of the year.

However, OPEX surged 28.6% in 1H, causing the consolidated bank’s profit to decrease compared to the same period last year. Meanwhile, FE Credit’s activities continued to record losses, causing a sharp drop in consolidated profit.

COMMENT

In the short term, with the parent bank, we believe VPB can take advantage of its large capital buffer to boost growth in the second half of the year with an ambitious credit growth target of over 30% in 2023. However, the business environment is still not positive considering that Fe Credit’s business is expected to face difficulties in the second half of the year in the context of the sluggish domestic economy and weak consumer demand, as well as the real estate and mortgage sectors might not recover as expected.

We maintain VPB’s targeted price at VND25,000/share.

Danh sách báo cáo liên quan

(EN) GTJASVN_Sector Report_Port & Maritime Transport_Positive_21.3.2025_Eng ver

24/03/2025

(EN) GTJASVN_Sector Report_Port & Maritime Transport_Positive_21.3.2025_Eng ver

GTJAS_Sector Report_Residential Real Estate Report_2025 Outlook_Mild recovery_26Feb2024

27/02/2025

2025 OUTLOOK The completion of the legal framework governing the real estate sector, marked by the introduction of three amended laws, has played a pivotal...

GTJASVN_HAH Equity Report_Buy Upside 16.7%__19.02.2025

19/02/2025

INVESTMENT THESIS 1.HAH continuously upgrades its fleet capacity to 26,500 TEU (+50.03% YoY) while maintaining its leading market share (30%) in the container...

Contact

    • Stock index
    • VNINDEX: 1210.67   -19.17   (-1.56%)
    • HNX: 216.97   -3.97   (-1.8%)