Report
Viet Dragon Securities
Thao Nguyen

Analyst Pin-board TCB – PBT sustainably grew in 3Q2022

  • PBT sustainably grew in 3Q2022 driven by interest-earnings assets expansion and fee income. By 3Q2022, customer loans grew by 18.2% while corporate bonds dropped 30%, resulting in credit growth of 10.7%. On the funding side, TCB is under pressure to attract customer deposits, so the Bank must mobilize more in the interbank market.
  • In the coming quarters, we foresee that TCB’s NIM will gradually decline owing to the rising cost of funds. Currently, NPL started to increase as the restructuring loans period has finished yet TCB had fully allocated this provision. As a result, profit growth remains regardless of a slight deterioration in asset quality in 3Q2022. But we foresee the asset quality in the coming quarter will be affected by the negative outlook of the real estate industry – the sector that TCB highly exposed.
  • In the short term, the real estate sector is forecast to have a negative outlook in the coming quarters owing to (1) rising interest rates and (2) the limited capital stream from both loans and bond market. However, we appreciate TCB's strategy and customer base and the effects of the challenges on the bank's asset quality could last for a short time. Hence, investors need to closely monitor the movement in the real estate sector and government policy changes in this sector. We are revising our forecast and valuation and will update TCB's target price in our next report.

 

28/10/2022 9 EN
Provider
Viet Dragon Securities
Viet Dragon Securities

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Thao Nguyen

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