Give us your feedback

VCB – Strong earnings growth helped improve asset quality – Update

Company Note 09/08/2018    134

Share

  • VCB’s 1H18 pre-tax profit increased 52.6% yoy to VND8tr. This formed 62% of the bank’s FY18F target and 56% of our FY18F forecast.
  • Net interest income grew 19.1% yoy on strong loan growth while NIM was flat yoy.
  • 1H18 non-interest income exceeded our expectations largely due to one-offs; we expect 2H18 non-interest income to be lower than in 1H18.
  • Our Add is intact given strong earnings growth outlook and improving asset quality.
  • We maintain our TP of VND79,500, based on an equally-weighted combination of residual income valuation (COE: 13.7%, LTG: 4%) and FY19F P/BV of 4.0x

Market Price

Target Price

Dividend Yield

Rating

Sector

VND62,100

VND79,500

1.29%

ADD

FINANCIALS

Please follow this link for the full report

DMCA.com Protection Status