VIB - While credit expansion in Q1/25 shows a positive outlook, narrowing NIM limits the growth of net interest income
• Q4/24 PBT reached VND 2.4 trillion (+20% QoQ and +1% YoY), bringing 2024 full-year PBT to VND 9 trillion (-16% YoY). The underwhelming annual result was mainly due to (1) 7% YoY decline in TOI stemming from a significant NIM contraction (-130 bps YoY) and (2) 50% YoY drop in bancassurance income, and (3) 9% YoY increase in operating expenses.• Q1/25F PBT is projected to decline by 4% YoY, primarily due to a sharp 50 bps YoY drop in quarterly NIM and a slight 5% YoY increase in provisioning expenses.
• According to Q1/25 PBT is expected to account for around 20%–22% of the 2025 full-year PBT target (VND 11 trillion), VIB expects that robust credit growth (target 22%) and accelerated bad debt recovery, supported by the legalization of Resolution 42, will help the bank achieve this goal.
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.