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BID - MARKET PERFORM - Provisioning cycle to cap further price gains - Update

We increase our target price to VND19,100 (equivalent to P/B of 1.4x). Reversal of provisions for off-balance items provided relief for BIDV in 2014 but there will be no equivalent relief in 2015 and we forecast a circa VND9tn provision expense, up from VND7tn in 2014. Nevertheless fundamentals of BIDV continues to track in the right direction despite the provisioning medicine to come.