Report

Analyst Pin-board TCB – Hesitation amid outstanding 3Q21 performance

  • The 3Q21 results slightly beat our estimates as TCB posted strong growth across the board.
  • Although the pandemic situation in 3Q21 lies within the scenarios of the portfolio stress review conducted at the end of 2Q21, the insignificant deterioration in the asset quality surprises us. Our concern arises from the proactive slowdown in the credit cost ratio during this uncertain period despite TCB’s good provisioning buffers ahead of the recent disruption. However, we think there has not been any change in its provisioning policy or risk governance.
  • We maintain the estimated 2021-2022 PBTs of VND 23,010 bn (USD 1.0 bn, +46% YoY) and VND 29,357 bn (USD 1.3 bn, +28% YoY). We see potential upside for the 2021 PBT in the cases of flattened credit cost curve or stable CASA in 4Q21. The 2021-2022 book value per share figures are VND 26,224 and VND 32,746 respectively. We currently have a target price of VND 71,000/share and a BUY recommendation. This translates to an upside of 32% from the closing price of November 03 2021.

 

Underlying
Vietnam Technological And Commercial Joint Stock Bank

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.

Provider
Viet Dragon Securities
Viet Dragon Securities

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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Analysts
Son Tran

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