Company Insight

- VIB is well known for its retail loan in Vietnam, with main products include Mortgage, Car loan and Credit card loan. In 2019, VIB is the first commercial bank to complete all 3 pillars of Basel II and VIB is also applying Basel III for managing liquidity more efficiently. Commonwealth Bank of Australia (CBA) has been the strategic investor from 2010 of VIB and been playing the fundamental role in this bank development process. Also, VIB leading commercial bank listed in terms of Return on Equity (ROE), around 24-30%. With the residual method (RI) and the comparative method based on the P/B ratio (1.3x), we initialize target price for VIB in the next 12 months at VND25,010, upside potential at 10.5%.

- With robust business model center around retail banking, VIB would start to get back on track and expand its core business in 2024. We expect VIB total credit growth of 2024 would start to see modest recovery, reaches 15%-16% YoY. With NIM stabilized around 4.5-4.7%, NII of VIB would grow around 12.4% YoY. NPL ratio of VIB is assumed to decrease around 3% by the end of 2024. With favored movement of NPL, we expect credit expenses of VIB would slightly reduced around -5% YoY. CIR in 2024 is expected to be around 32%. Profit before tax of VIB in 2024 therefore could be around VND 12,291 bn (+14.8% YoY).