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VCB - HOLD - Sacrificing earnings for asset quality - Update

We revise our target price for VCB at VND25,500 (upside 5%), down from VND30,000 in our previous update. For 1H FY2012, VCB reported an 8% drop in net earnings yoy. While the core businesses remained stable, there was a significant rise in provision charges. We revised down our PBT forecast by 13.4% to VND6,269 billion from VND7,154 as in our previous update due to lower credit growth and higher than anticipated provision charges.