ACB – Maintain stable return on equity in a challenging year
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· The bank has a relatively cautious guidance for FY2023. Total assets are anticipated to grow by 10%. Mobilization growth is projected to be 8.1%. It must be noted that the 9.7% credit growth in the plan is ACB’s first granted quota as of Feb 24th. The bank will revise its credit growth guidance when receiving new quota from the SBV. · In 2023, due to the high base effect in 2022 and taking into account the tough market landscape, the bank’s ability to benefit from credit cost reduction is expected to diminish, resulting in a moderate PBT growth of 17.2%, equivalent to VND 20,058 bn (or USD 849 mn). Regarding profit allocation for 2022 and 2023, the bank proposes a 25% dividend comprising a 15% stock dividend and a 10% cash dividend. The stock issuance for 2022 may take place in 3Q23. · In 1Q2023, PBT grew 24% YoY to reach VND 5120 bn (USD 217 mn), fulfilling 26% its FY2023 target. Credit activity was relatively weak in the early months of the year, resulting in a marginal decrease of credit balance compared to the end of last year. Meanwhile, mobilization growth reached 2.1% YTD. · The forecast of PBT for 2023-2024 are VND 20,431 bn (or USD 851mn, +19%) and VND 24,314 bn (or USD 1 mn, +19%), respectively. The book value per share is estimated at VND 18,453 and VND 22,253. Our latest target price is VND 30,000/share, implying an upside of 20% from the closing price as of Apr 17th, 2023 and a BUY recommendation. |
Asia Commercial Joint Stock Bank (ACB) is a Vietnam-based financial institution. The Bank provides consumer and corporate commercial banking services, including deposits, corporate and consumer lending, as well as trade financing. It is also involved in capital and money markets at interbank level, along with treasury activities, commodities financing and international clearing and settlement. Through its subsidiaries and affiliates, the Bank provides investment banking services, such as securities brokerage, custody and underwriting services, along with corporate advisory services. Other activities include gold bar manufacturing and asset management.
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