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ACB [O-PF +13.1%] - Strong core business facilitates extra provisioning - Update

We issue an OUTPERFORM rating for ACB with a 13.1% upside to VND25,900 on the back of high profit growth momentum despite active clearance of legacy assets. Extra provision for legacy assets in 2016 and 2017 helps ACB clear all exposure to Group 6 companies in 2017, instead of the initial timeline of 2018. 2017 NPAT growth is forecast at 22.6% thanks to high loan growth, improving NIM and reduced provision expenses for legacy assets.