HDB – Stable growth trajectory
- HDB has maintained a strong performance across most of its core operations. Specifically, net interest income has grown 19.7% YoY, and net fee income of 11.3% YoY growth. Total operating income has shown a significant growth rate of 10.4% YoY. However, the Bank has simultaneously increased its provision for credit losses during the period, leading to an 8.5% YoY increase in PBT.
- As asset yield improved by a smaller extent due to the lagging repricing period, 1Q23 NIM returned to 5.1% after a steady upward momentum of 5.2% in 4Q22, on a consolidated basis. Specifically, the parent’s bank NIM was down to 3.9% from 4% in 4Q22 and NIM of HDSaison also declined to 28.7% from 30.2%, yet the falling degree remained quite modest compared to peers.
- HDB's NPL ratio from customer loans increased to 1.8%, reaching a 5-year high, yet it is still well-controlled compared to other joint stock commercial banks in the same tier.
- We estimate the fair value of HDB at 21,000 VND /share, equivalent to a forward P/B for the one-year timeframe of 1.2. This price is equivalent to an expected return of 11% compared to the closing price on July 14th, 2023. Therefore, we recommend to 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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