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STB - [SELL -25.7%] - Distracted by provisions, constrained from growth - Update

We maintain our SELL rating on STB with a target price of VND8,100. Balance sheet problems will occupy management’s efforts and make earnings forecasts difficult. STB has all the hallmarks of a stressed balance sheet: a peer leading VAMC balance, elevated accrued interest and receivables lines, a blowout in its customer loan book maturity profile in the last few years and a relatively low provision balance set against this.