//= get_template_directory_uri() ?>
BUSINESS OUTLOOK 2023 Based on a conservative view, we temporarily put a conservative credit growth expectation of 15% for VIB in 2023 (although the bank’s plan is 25%). Signs of cooling off in the deposit rate help reinforce the expectation that banking NIM will be flat this year at 4.6%. Strength in insurance and card activities led to a positive growth of 18% in service income. CIR is properly managed at 35% while provision expense for credit risk continues to increase in the context of increasing bad debts along with expanding credit scale. With the above assumptions, we estimate the bank’s pre-tax profit will grow by 22% in 2023, equivalent to VND 12,900 billion. RECOMMENDATIONS In the long term, we believe that VIB’s growth prospect is still promising with the current credit scale being quite modest compared to the leading joint stock commercial banks. We recommend “Buy” on VIB stock, with a 1-year target price of 25,000/share, equivalent to an investment rate of return of 19%. However, it is necessary to carefully consider the appropriate disbursement time in the context that the stock is currently trading at a less attractive P/B of 1.3x that is higher than the industry average. |
16/07/2024
1H OVERVIEW The nationwide real estate market in the first half of 2024 has been closely aligning with the recovery trajectory. Despite the number of new...
04/07/2024
In the short run, we are NEUTRAL towards both VN consumer discretionary and consumer staples stocks. Investors can still find opportunities to invest in...
02/07/2024
On 19/06 morning, Kinh Bac City Development Holding Corporation (HoSE: KBC) held its 2024 Annual General Meeting of Shareholders (AGM). The main topics...