OCB - Q2 PBT growth driven by efforts across most business segments
- OCB maintains effective operations in most of its core business activities. Specifically, net interest income increased by 7% YoY, and non-interest income grew by an impressive 422% YoY. The total operating income showed significant growth at 23% YoY. Additionally, the bank has improved operating costs and provisions for credit losses, resulting in a 75% YoY increase in PBT.
- The NPL ratio for OCB's customer lending slightly decreased by 13 bps compared to the previous quarter, reaching 3.18%. While this ratio remains relatively high, it indicates a slight improvement and is in line with other banks in the same group during challenging economic conditions. The credit cost TTM remained almost flat from the previous quarter at 0.82%, leading to a slight improvement in the provision coverage ratio at 47.5%.
- We maintain the fair value of OCB at VND 22,600 per share, which corresponds to a projected P/B ratio of 1.06 within a one-year timeframe. This price level implies an expected return of 22% compared to the closing price on August 4th, 2023. Therefore, we recommend a BUY on
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