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STB [UNDERPERFORM -12.8%] - Bad debt recovery may be accelerating thanks to new resolution - Update

We upgrade our rating for STB from SELL to UNDERPERFORM and raise our TP to VND14,350, representing a total downside of 12.8%. The TP upgrade is mostly because bad debt recovery could be accelerating thanks to Resolution 42 and some improvements in operations. However, we see material risks related to contingent asset quality issues during the restructuring process. Our NII growth forecast for 2018 is 13.7%, driven by loan growth of 14%.