Analyst Pin-board TCB – 2022/2023 outlook: expect solid growth amid headwinds
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· We see factors to support NIM during the deposit rate raises. Implicit costs on CASA, including technology investments and promotion expenses should be considered when assessing the stability and growth potential of these non-maturity deposits. · The 2021 operating results were in line with our forecasts. We make changes in the medium-term growth projections given the faster-than-expected improvement of CASA and yields. We also incorporate the on-going diversification of the funding structure towards offshore borrowings and the potential positive impact of the socio-economic recovery to the balance sheet forecasts. The new 2022 PBT estimate is down 1% from the prior one, at VND 29.1 trillion (USD 1.3 bn, 25% YoY). · The revised forward 2022 book value per share is VND 32,721, indicating a forward P/B of 1.5 today. This presents an attractive risk reward balance despite the lack of short-term catalysts and concerns about NIM. We maintain the target price of VND 71,000/share and a BUY recommendation. This translates to an upside of 41% from the closing price of March 1, 2022. |
Vietnam Technological and Commercial Joint Stock Bank (Techcombank) is a Vietnam-based corporate bank. It is engaged in the provision of corporate banking services include customized account packages; fixed and non-fixed deposits; supply chain financing; trade finance services for import, export and domestic; international fund transfer; commodity brokerage services; foreign exchange services, such as foreign exchange swaps and foreign exchange derivatives, among others; as well as working capital loans. The Bank also offers personal banking products and services, such as credit and debit cards; individual loans of various types, including study, mortgage, household business, among others; personal banking accounts and services, including current accounts, payroll accounts and international transfer; Automated Teller Machine (ATM) and Point Of Service (POS) customer service support; and Internet and mobile banking.
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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