ACB – Sustainable growth from high base
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· Q4 PBT reached VND 3.6 tn (or USD 150 mn, +19% YoY) driven by both interest income (35% YoY), non-interest income (+24% YoY) and a slump of provision expenses (-52% YoY). However, on a quarterly basis, PBT dropped by 20% due to operating expenses surging by 61% QoQ. CIR increased to 40.3% in 4Q22, mainly due to a VND 1,000 bn (or USD 41 mn) expense for the science and technology development fund. · Asset quality improved on both quarterly and yearly basis. NPL was 0.74% in 4Q22, down from 1.01% in 3Q and 0.8% at the end of 2021. Bad debt coverage ratio increased to 159.3% compared to 3Q2022 (137.8%) yet decreased from 209.4% at the end of 2021. · The bank prudent approach with Covid-19 related debts in 2021 has paid off in 2022. The low provision expense in 2022 is mostly due to reversal income from Covid-related restructuring loans. Coupled with a climb of 24% YoY and 14% YoY in net interest income and non-interest income, respectively, PBT reached VND 17,114 bn (or USD 713 mn) in 2022, +43%YoY, in line with our expectation of a high profit growth during this year. · 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 are estimated at VND 18,453 and VND 22,253. Our latest target price is VND 30,000/share, implying an upside of 21% from the closing price as of Feb 22nd, 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.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
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