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MBB [O-PF +14.7%] - Move toward SME/retail banking should bolster profitability - Update

We upgrade the rating for MBB to OUTPERFORM with total stock return of 14.7%. We raise our TP 17% on a 40 bps increase of forecast NIM level. 18.5% NPAT growth in 2017 is driven by 20.9% loan growth, an 11 bps increase of NIM and only a slight increase in provision expense. Growth momentum will be sustainable in 2018 with NPAT growth forecast at 17.1%. At the current price, MBB is trading at 2016 P/B and 2017 forward P/B of 1.0x. Given a high growth outlook and a well-managed loan