1H performance
TPB reported profit growth of 10.8%ytd in the 1st haft 2022, driven by mortgage lending and consumer lending. Meanwhile, the bank still managed funding sources well with customers’ deposits increasing 12% in 1H.
The bank’s NII increased 22%yoy in 1H while non-NII income was supported by payment services and a large recoveries amount. PBT reached VND3,787 bn in 1H, + 26.3%yoy.
The bank continued to make provisions for bad debts. Restructured loans decreased while NPL was below 1% making the bank in the highest asset quality group.

COMMENTS
Digitalization strategy attributes to expanding the bank’s customer base (1.5 million new customers in 1H) and profit in the short and long run.
We believe that lending and service activities will continue to improve in the 2nd haft. PBT of the bank would be around VND8,300 bn, equivalent to 37%yoy growth.
We maintain a “positive” view of TPB stock based on its splendid growth and good asset quality. The target price (6-18 months) is maintained at VND39,7000/share.