VCB [O-PF +11.9%] - Squeaky clean 4Q15, everything moving the right way - Update
We maintain an OUTPERFORM rating for VCB with a target price of VND46,000. Management kept the promise they made in the 2015 AGM to have the lowest VAMC sale amount for last year at 0.4% of the loan book versus 1.1% at CTG and 2.5% at BID. Nor was this achieved by inflating other accounts: non-VAMC write-offs to specific provision account held at 0.9% of loan book, same as in 2014. VCB was the only SOE bank to increase its specific provision balance and markedly at that.