LPB – Update – 20180306

• The current low funding utilization rate creates headroom for high loan growth in the coming years. NIM will continue rising on the back of strong retail lending growth. We reduced our provision expense projections for FY18-FY20 as we expect that the timeline for VAMC provisioning will be longer than we had previously assumed.
• We reiterate our ADD rating for LPB and increase the target price by 17.4% to VND19,600 as we now expect higher loan growth and lower provision expenses during FY18 to FY20 than previously expected..

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