Analyst Pin-board HDB – Credit growth is the key
- Contrary to the first year-half, credit growth was resilient in the third quarter while deposit growth slowed down. HDB has applied for a significant raise in credit growth quota in the fourth quarter, at over 25% in comparison to about 10% currently.
- We maintain our conservative view on the provision buffer. However, we think the provisioning level will be sustained in the short-term despite the social distancing impact.
- In spite of the decline in restructured debt at the end of August compared to the end of June 2021, we revise up our projections for credit costs for the 2021-2022 period. Hence, 2021-2022 PBTs are revised down, at VND 7,843 bn (USD 341 mn, +35% YoY) and VND 9,692 bn (USD 421 mn, +24% YoY), decreasing -3% and -6% respectively from the prior estimations. 2021 book value per share is at VND 14,290 while that of mid-2022 is VND 16,070. Combined with the sector’s decreasing growth momentum, we lower the target price by -2% to VND 28,800/share. This translates to an upside of 12% from the closing price of October 11, 2021 and an ACCUMULATE
Ho Chi Minh City Development Joint Stock Commercial Bank is a Vietnam-based financial intermediary. The Company is primarily involved in commercial banking activities, including accepting deposits; granting personal and business loans; issuing debit and credit cards, and providing remittance, letter of credit and debt collection services. The Company's other undertakings consist of foreign exchange dealing, stock trading and equity investing.
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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