VPB – Dented by lack of extraordinary income – Update

• 1Q19 net profit of VND1,422bn was down 31.9% yoy and trailed our expectations at 17% of our FY19 forecast due to slow recovery of bad debts.
• Net profit plunged due to lack of one-off income which was booked in 1Q18. Excluding one-off income, 1Q19 pretax profit grew by 0.8% yoy.
• We reduce our TP to VND21,200 (residual income, COE: 14.7%, LTG: 3.0%) but maintain Add rating on VPB.

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