MBB [BUY +24.2%] - NIM forecasts upgraded, reiterate BUY - Update
We reiterate out BUY rating for MBB and raise our TP to VND28,400 from VND26,700 (+6% upgrade), offering a total upside of +24.1%. We have an optimistic view on MBB’s assets yields (upgraded to 7.6% in 2017F and 7.9% in 2018F), backed by the bank’s strategy shift toward retail customer loans. Funding costs are estimated to fluctuate around 3.7%-3.8% in 2017F-2018F due to a high CASA ratio of c 30%. Therefore, we upgrade NIMs by 23 bps and 15 bps in 2017F and 2018F, respectively.