{"id":9673,"date":"2021-09-20T08:48:52","date_gmt":"2021-09-20T01:48:52","guid":{"rendered":"https:\/\/gtjai.com.vn\/?post_type=research&p=9673"},"modified":"2021-10-14T08:49:37","modified_gmt":"2021-10-14T01:49:37","slug":"mbb-equity-report_buy_well-balancing-between-risk-and-profitability","status":"publish","type":"research","link":"https:\/\/gtjai.com.vn\/en\/research\/mbb-equity-report_buy_well-balancing-between-risk-and-profitability\/","title":{"rendered":"MBB Equity Report_Buy_Well Balancing Between Risk and Profitability"},"content":{"rendered":"

INVESTMENT THESIS<\/strong><\/span><\/p>\n

\u2022 Sustainable growth is maintained, underpinned by the ecosystem of member companies operating in the financial sector. In the first 6 months of 2021, MBB still recorded a high credit growth of 11%ytd, which was among the strongest growth banks in 1H2021, higher than the industry-wide average of 7% while PBT grew by 50% yoy thanks to the improvements in NII and NFI.<\/span><\/p>\n

\u2022 Accelerating digital transformation is expected to expand customer base, so as improve NIM and non-interest income. Bank\u2019s number of customers and online transactions has increased rapidly from 2020 thanks to new app and attractive digital programs. The CASA ratio was at 38.6%, the second highest in the sector.<\/span><\/p>\n

\u2022 Efforts in bad debts handling help to improve assets quality. NPL ratio decreased to 0.8% at the end 2Q2021 while the provision coverage ratio climbed to over 230%.<\/span><\/p>\n

RISKS<\/strong><\/span><\/p>\n

The assets quality of parent bank and consumer finance company -Mcredit would suffer due to the 4th Covid outbreak in Vietnam. However, there is not too much of concern thanks to current low NPL ratio and strong provision buffer.<\/span><\/p>\n

RECOMMENDATION<\/strong><\/span><\/p>\n

We evaluate MBB as one of the best banks in the sector regarding its outstanding position in terms of growth rate, asset quality as well as business prospects thanks to digitization, effective operating ecosystem, and visionary management.<\/span>
\nGTJA (VN) recommend “BUY” MBB shares with a long-term target price (6-8 month) of\u00a033,200VND\/share<\/strong>, corresponding to an expected return of 17.7%.<\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"template":"","cate_research":[80],"specialized":[],"class_list":["post-9673","research","type-research","status-publish","hentry","cate_research-bao-cao-doanh-nghiep-en"],"yoast_head":"MBB Equity Report_Buy_Well Balancing Between Risk and Profitability - 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\/mbb-equity-report_buy_well-balancing-between-risk-and-profitability\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"MBB Equity Report_Buy_Well Balancing Between Risk and Profitability - GTJA\" \/>\n<meta property=\"og:description\" content=\"INVESTMENT THESIS \u2022 Sustainable growth is maintained, underpinned by the ecosystem of member companies operating in the financial sector. 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