Analyst Pin-board MBB – 1H2021 Performance: Reinforced asset quality
- Better-than-expected income growth led by NIM expansion but much higher-than-expected provision eroded PBT. The preferential lending rate program in 2H will pressure NIM slightly.
- Bad debt formation reduced and bad debt written-off surged in Q2 made stable asset quality. We forecast that NPL ratio can rise from the current record low but will be control lower than last year, relieving credit costs in 2H.
- CIR was slightly better than expected. However, the figure will not improve notably soon due to large investment in IT and the southern market expansion.
- We maintain our target price of VND 36,100/share and a BUY This translates to an upside of 22% from the closing price of August 10, 2021.
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