Company Insight

Participating in the restructuring of weak bank continues to be a driving force for VPBank to have a positive credit room, we expect credit to achieve a growth rate of 20-30%. Accelerating credit growth can temporarily narrow the bank's NIM. We lower VPB's NIM forecast for 2025-2026 to 5.6 and 5.9%, respectively. By the end of 2024, VPB will show a profit recovery when its subsidiary FE Credit escapes losses. We believe VPB will continue to improve when provisioning pressure decreases and NIM bottoms out.

With its leading position in consumer finance, FE Credit is expected to recover more clearly in 2025-2028. Two other subsidiaries, VPBankS (Securities) and OPES (Insurance), are also gradually contributing more to the bank's operations. Based on the residual income method and P/B comparison method, we estimate VPB's 12-month target price at VND32,000/share.

The story related to VPBankS IPO and digital asset exchange may have a positive impact on VPB's valuation in the short term, in this scenario, our expected price could reach 36,000 VND/share