Analyst Pin-board TCB – 2Q22 review: “Flight to quality”
- TCB maintained its growth momentum in 2Q22 despite the limitation on the balance sheet growth capacity as a result of moderate initial credit growth quota. Total operating income grew 20% YoY on the back of solid fee income (43% YoY) while NIM was down sharply from the last quarter. PBT growth was 22% YoY. Risk cost control and non-funded income focused on delivering banking profitability and capital allocation efficiency.
- We revise earnings to reflect growth constraint in 2022. 2022 PBT is not adjusted much, staying at VND 29.0 tn (USD 1.2 bn, 25% YoY). However, the foundation for growth is expected to pivot from balance sheet expansion and NIM stability towards risk cost reduction initiatives and non-funded income sources. The 1H22 results fulfilled 49% of our full-year estimation. The forward 2022 book value per share is VND 32,712. The bank’s historical P/B average is 1.7x. Our target price is revised down by 7% to VND 62,700/share, equivalent to a BUY recommendation with an upside of 62% from the closing price of August 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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