CTG – PBT growth is expected to slowdown
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· PBT reached VND 5.3 tn (or USD 220 bn) in 4Q22 and VND 21.1 tn (or USD 880 bn) in FY22, equivalent to an increase of 45.4% YoY and 20% YoY, respectively. FY2022 earnings growth was mainly driven by growth in interest income (15% YoY) and non-interest income (46% YoY) despite the surge of provision expenses (+31.5% YoY). · Asset quality improved on both quarterly and yearly basis yet we should keep an eye on that in the coming quarters. In terms of provisioning buffer, bad debt coverage ratio declined to 188.4% in 4Q after reaching a peak of 222.4% in 3Q22, and was flat compared to last year. · We foresee NIM to decline by roughly 3bps in 2023 as asset yield might not outpace funding costs. Coupled with credit growth of 11%, we expect NII to inch up by 11% YoY. Bancassurance continues boosting service income (+12% YoY) but (1) bad debt recover income might decline during this tough year and (2) FX trading income might not remain high as in 2022, resulting in a 2% decline in NII. As a result, TOI and PBT are forecasted to grow by 8% YoY and 12% YoY, respectively. We expect CTG to be back to its growth trajectory in 2024. · The forecast of PBT for 2023-2024 are VND 23,600 bn (or USD 983mn, +12%) and VND 29,684 bn (or USD 1.3 tn, +26%), respectively. Correspondent book value will be 25,400 and 29,000, respectively. We revise up our target price by 11% to VND 29,300 to reflect an increase of earnings in the medium term, and we are NEUTRAL pnthe stock at the closing price as of Mar 10th, 2023. |
Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) is a Vietnam-based and state-owned financial institution. The Bank provides commercial banking services for individuals and corporate clients. It is also engaged in the provision of international clearing services and money transfer services. Moreover, the Bank provides derivative products, such as futures, forwards, swaps and options. Other operations include financial leasing activities and the offering of guarantee services, insurance services and securities related services.
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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