Analyst Pin-board VPB – Many catalysts for NIM improvement in coming quarters
- In Q3, mother bank performed resiliently while FE Credit struggled with a loss.
- Small business and low-income customers will recover more slowly than other groups, causing adjustments in our expectations for NIM and credit costs at both the parent bank and FE Credit. The revised forecast includes new factors that could help the mother bank improve its NIM margin in the coming quarters, including profit from partly divestment at FE Credit and the preferential syndicated loans received in October-end while the international bonds issued in 2019 with high interest rate will mature in 2022.
- 2021 consolidated PBT is expected to come at VND 17,181 bn (+32%), with FE Credit PBT VND 1,136 bn (-69%). In 2022, consolidated PBT is expected to come at VND 21,874 bn (+27%), with FE Credit PBT VND 2,518 bn (+121%). The revised book value per share figures are VND 15,846 for 2021 and VND 19,255 for 2022.
- The target price is adjusted from VND 37,200/share to VND 42,800/share. Based on the closing price as of December 12th, 2021, we recommend to BUY VPB with a total return of 21%.
Vietnam Prosperity Joint Stock Commercial Bank is a Vietnam-based financial intermediary. The Company's leading business activities are commercial banking operations, including personal financing, enterprise lending, remittance services, foreign currency trading, card services, letters of credit and debt issuance and insurance, among others. The Bank also trades securities on its own account and invests in private equity.
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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