VIB – Earnings outlook supported by bad debt recoveries
• We expect VIB’s bad debt recovery activities to deliver positive results in the coming period thanks to (1) Resolution 42 being codified into the Law on Credit Institutions and effective from October 15, 2025, and (2) the recovery outlook of the real estate market. In particular, income from recovered bad debts previously written off in 2025F is projected to reach nearly VND 1.6 trillion (+26% YoY). In addition, the resolution of on-balance-sheet bad debts presents an opportunity to improve NIM as well as the bank’s profit, as interest income and credit costs are reversed.• For 2025, we forecast the bank’s PBT to reach over VND 10.5 trillion, equivalent to a 17% YoY increase. This result is lower than VIB’s previously announced target (PBT growth of 22%), mainly due to net interest income growing modestly by 4% YoY as NIM comes under significant compression pressure, narrowing by approximately 50 bps YoY.
• We assign a target price of VND 21,900 per share for VIB, implying 2025F and 2026F P/B of 1.4x and 1.2x, respectively. This equates to an ACCUMULATE recommendation, offering a 17% upside compared to the closing price on July 11, 2025 (including VND 700 in dividends over the next 12 months).
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.
RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.