MBB – Update – 20180227

• A plunge in FY18 provision expense will boost earnings growth. NIM expansion will continue in FY18 but at a slower pace than in FY17. MBB is looking to push fee income through bancassurance and internet/mobile banking. High loan growth to be supported by sufficient capital and funding.
• We reiterate our ADD recommendation for MBB and raise our target price by 39.4% to VND38,600 due to: 1) a lowering of forecasted
  provision expenses in FY18 and 2) an increase in the fee income growth forecast for the year. Valuation looks cheap relative to peers.

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