Research Center
Quay lại

VCB - MARKET PERFORM - Heavy provisions hit bottom line but margin contraction has slowed - Update

VCB reported 5% NPAT growth in 1Q14 due to sharp increase in provisions ahead of applying new loan assessment rules. On a positive note, NIM contraction in 1Q14 (down 7bps yoy) has slowed since 1Q13 (down 124bps yoy). We reiterate a Market Perform rating but raise target price from VND25,100 to VND26,600 partly due to change to pure multiples from hybrid multiples/ residual income approach (details page 12).