{"id":6978,"date":"2021-08-13T08:02:41","date_gmt":"2021-08-13T01:02:41","guid":{"rendered":"https:\/\/gtjai.com.vn\/?post_type=research&#038;p=6978"},"modified":"2021-08-13T08:02:41","modified_gmt":"2021-08-13T01:02:41","slug":"banking-sector-report_glowing-long-term-prospect_outperform","status":"publish","type":"research","link":"https:\/\/gtjai.com.vn\/en\/research\/banking-sector-report_glowing-long-term-prospect_outperform\/","title":{"rendered":"Banking Sector Report_Glowing long-term prospect_Outperform"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>Glowing prospect_Outperform<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif;\">In the short term, the banking sector will be hit by the 4th Covid outbreak, causing the third quarter credit growth to slow down somewhat. Provision expenses pressure and interest rate support packages would reduce profit growth compared to the 1st haft.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif;\">However, after reviewing, we assumed that NIM overall would only slightly decrease by about 0.2%-0.3% in the second half of the year. Moreover, some banks can still maintain high NIM (TCB, TPB) thanks to their low funding cost advantage in market 2.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif;\">Policy is the most important factor contributing to the sector\u2019s asset quality under control. In 1H2021, many banks have sharply reduced restructuring loan as well as NPL, while debts collection has been escalated, provision expenses also increased. Those actions partly reduce the pressure for the second half of the year.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif;\">There would be less catalysts in 2H2021 as most banks have completed dividend payment as well as important deals have been unveiled (as at VPB).<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif;\"><strong>RECOMMENDATION<\/strong><\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif;\">With the above discussions, we maintain an &#8220;<strong>Outperform<\/strong>&#8221; rating for the Banking sector.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif;\">We expect total credit growth of the economy at 9%-10% in 2021, NIM averaged at 3.3% and profit growth of 30%yoy.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif;\">Regarding the investment ideas for the next 6-18 months, we are interested in stocks with positive business prospects, effective business models, good asset quality with a high bad debt coverage ratio. Accordingly, we select TCB, MBB, CTG and VCB as potential investment.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-family: arial, helvetica, sans-serif;\"><a href=\"https:\/\/www.ivs.vn\/userfiles\/GTJASVN_Sector%20Report_Banking%20sector%20outlook_2H2021_Nhungtth%20-%20Eng.pdf\">Report here<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"template":"","cate_research":[80],"specialized":[],"class_list":["post-6978","research","type-research","status-publish","hentry","cate_research-bao-cao-doanh-nghiep-en"],"yoast_head":"<title>Banking Sector Report_Glowing long-term prospect_Outperform - GTJA<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/gtjai.com.vn\/en\/research\/banking-sector-report_glowing-long-term-prospect_outperform\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Banking Sector Report_Glowing long-term prospect_Outperform - GTJA\" \/>\n<meta property=\"og:description\" content=\"Glowing prospect_Outperform In the short term, the banking sector will be hit by the 4th Covid outbreak, causing the third quarter credit growth to slow down somewhat. Provision expenses pressure and interest rate support packages would reduce profit growth compared to the 1st haft. 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Provision expenses pressure and interest rate support packages would reduce profit growth compared to the 1st haft. 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