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STB - Restructuring underway; NPL increases, bottom line unchanged - Earnings Flash

Summary – STB released results for Q2 2017 with net interest income at VND1.08 trillion (USD47.5 million, +2.6% Q-o-Q and -20% Y-o-Y). Receivables to loans went down from 22% at the beginning of 2017 to 18% in Q2 2017. Most ratios do not show significant improvement Y-o-Y and Q-o-Q because of the restructuring process. We do not foresee any change to our SELL rating for STB before a significant improvement on provisioning or the completion of restructuring and recapitalization.