Company Insight

Initial coverage with BUY call and target price of VND 60,000

VietinBank (CTG), a leading state-owned commercial bank in Vietnam, is strategically enhancing its business model through significant investments aimed at fostering a more balanced, retail-oriented portfolio. The bank has demonstrated proactive and effective management of its bad debts over the past five years, successfully maintaining its NPL ratio at a manageable level despite broader industry volatility. With an improved credit environment and ambitious GDP growth targets, we anticipate a further boost to the bank's credit expansion capabilities. We are initiating coverage on CTG with a BUY rating and a target price of VND 60,000

We anticipate CTG to deliver better-than-average profit growth in 2025, with this positive momentum continuing into 2026. This outlook is supported by projected credit growth of 16-18% for both 2025 and 2026, alongside a stabilizing NIM with potential for improvement in 2026. Furthermore, we expect reduced pressure from provision expenses, aided by income generated from written-off debt recovery. Factoring in these drivers, we project CTG could achieve profit growth of 20% for both 2025 and 2026.