BANK FOR FOREIGN TRADE OF VIETNAM

Ticker: VCB Exchange: HSX/Vietnam Industry: Banking

The giant tree of the banking industry

Investment higtlights:
HOLD [-1.1%] Update on: 07/11/2023
Fair price 87,300 VND VCB is currently conducting a private placement of 6.5% of its equity capital
for institutional investors. The private placement targeting institutional
Current price 88,300 VND
investors will take place from Q2 2023 to the end of Q2 2024, with an expected
THÔNG TIN CỔ PHIẾU
proceeds of USD 1.2 billion for VCB, contributing to an improvement of the CAR
Outstanding shares (mil) 5,589.1
ratio by an additional 150-200 basis points.
Free float (mil) 614.8
Continuously enhancing its technological capabilities, VCB is implementing
Market cap. (VND billion) 485,133
a retail strategy and catering to the Gen Z customer segment. Recent policies
3m avg. volume (shares) 1,332,626
and products such as VCB Vibe, Contactless payments, and partnerships with
Foreign ownership (%) 23.54% mobile wallets like Apple Pay and Google Pay demonstrate VCB's ongoing
First listing date 30/06/2009 efforts to adapt and stay current with modern trends.
Return on Equity (ROE) ranks among the top 25% of the highest and most
MAJOR SHAREHOLDERS
sustainable banks over the years. Within the Big 4 State-owned banks, VCB
2.6% 7.6% recorded the highest ROE. In the latest 12-month period, VCB achieved an ROE
NHNN of 23.2%, surpassing the industry average of 14.15%.
15.0%
Mizuho Bank Limited Outstanding CASA ratio. As of the end of 9M 2023, VCB's CASA ratio stood at
GIC Private Limited 29.5%, placing it among the top 3 banks with the highest CASA ratios, well
74.8% above the industry average of 12.8%.
Khác
VCB has consistently been at the forefront of supporting interest rates and
has the lowest funding costs in the industry. In the last 12-month period, VCB's
funding cost reached 3.51%. The advantage of low funding costs enables VCB
PRICE MOVEMENT COMPARED TO THE INDEX
to be more proactive in adjusting its lending rates to remain competitive within
60% the industry.

40% Superior Asset Quality due to Prudent Lending Practices: As of the end of 9M
2023, NPL ratio stood at 1.21%, representing a 53 basis points increase
20% compared to the end of 2022. However, it remains among the top 3 banks with
the lowest NPL ratio in the industry. VCB also achieves the highest Loan
0% Losses Coverage ratio in the industry (270.1%).
Evaluation & Recommendation:
-20%
10/22 01/23 04/23 07/23 10/23 We project credit growth of VCB to be 18.8% in 2024 thanks to the
VCB VN-Index expected recovery of Vietnam's economy in 2024. Thanks to strong
Overview of the Bank: credit growth, we expect the lending interest rate landscape to experience a
slight increase, while deposit interest rates would rise at a slower pace, we
Vietnam Joint Stock Commercial Bank for Foreign Trade
(VCB) was established on April 1, 1963. VCB has evolved into
expect that VCB's NIM would be 3.61% in 2024, representing a 14 basis points
a versatile bank, providing customers with a comprehensive increase compared to the end of 2023. In 2024, we expect the pressure of NPL
range of financial services in international trade. The bank to increase as Circular 02/2023/TT-NHNN expires, but the economic recovery
engages in traditional activities, such as capital mobilization, would ease the burden of NPL. Hence, we project the NPL ratio to be 1.10% in
as well as modern banking services, including foreign 2024. Consequently, we expect Net Profit of VCB in 2024 to be VND 37,497
currency and derivative trading, etc. billion (+12.6% YoY).
Using the Residual Income and P/B valuation methods, we determine the fair
price for VCB at VND 87,300 per share. Hence, we recommend Hold for VCB.
Risks:
(1) Interest rate risk; (2) Risk from rising NPLs; (3) Competitive risk; (4) Inflation
risk; (5) Risk from economic downturn;

Financial indicators 2019A 2020A 2021A 2022A 2023F 2024F

Net Interest Income 34,577 36,285 42,400 53,246 60,079 67,614
Non-interest Income 11,153 12,776 14,324 14,836 17,487 20,577
Total Operating Income 45,730 49,063 56,724 68,083 77,566 88,191
Operating expense (15,818) (16,038) (17,574) (21,251) (23,806) (26,417)
Provision expenses for credit losses (6,790) (9,975) (11,761) (9,464) (13,319) (16,100)
Before-tax Profit 23,122 23,050 27,389 37,368 40,441 45,674
Net Profit 18,526 18,473 21,939 29,919 33,311 37,497
NPL ratio 0.79% 0.62% 0.64% 0.68% 1.06% 1.10%
CASA ratio 28.3% 29.7% 32.3% 32.3% 29.8% 31.3%
 Initiating Coverage | VCB

Banks supporting the economy while maintain stable

growth during economic difficulties

Since the beginning of the year, VCB has implemented three time of
interest rate reductions for loans to all individual and corporate
customers to support business recovery. Each time of reduction
corresponds to 0.5% per annum. Moreover, VCB has been a pioneering
bank in providing a total accumulated interest support of VND 10,800
billion to customers during the years 2020-2021.
Despite implementing various supportive policies, VCB remains
resilient in difficult economy. In 9M 2023, the real estate market and
corporate bonds experienced a freeze, along with significant interest
rate hikes in 2022, which exerted pressure on the financial
performance of many banks. During this period, the banking industry's
average return on equity (ROE) declined by 3.3%, while ROE of VCB
shrank 80 basis points to 23.2%.

30%
ROE of VCB compare with the industry

25% VCB Industry

20%

15%

10%

5%

0%
2020 2021 2022 9M 2023

ROE ranks in the top 25% of banks, demonstrating

sustained performance over the years

VCB was the highest ROE among the Big 4 banks and ranks in the top
25% of banks with the highest ROE in the industry, thanks to the
following advantages:
1. VCB is the leader in interest rate supporting package but has the
lowest cost of funds in the industry. During the last 12 months, Cost of
funds was 3.51%, benefiting from:
a) Superior CASA ratio. Although CASA ratio declined to 29.5% by the
end of 9M 2023 compared to 2022, it ranks among the top 3 banks
with the highest CASA ratio. This was attributed to the increased
adoption of digital channels by customers, SME customers utilizing
Digibiz packages, the promotion of ecosystem development,
diversification of specialized wholesale funding products, and the
implementation of zero-fee policies. The market interest rate
decreased in H1 2023 would contribute to the recovery of CASA.
b) When it comes to savings deposit sources, VCB consistently holds
an advantageous position in efficient capital mobilization due to its
lowest deposit rate in the industry (averaging around 5.55% in the last
12 months). Furthermore, we observe that the majority of deposits are
concentrated in tenor of less than 6 months (constituting
approximately 85% of total deposits), which minimize Costs of Funds.

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 Initiating Coverage | VCB

NIM, Yield on IEA and Cost of Funds of VCB over the years
8%

6%
3.41%
2.81% 3.13% 2.96% 3.46%
4% 3.22%

2%

0%
2018 2019 2020 2021 2022 9M 2023

Yield on Interest-Earning Asset Cost of Funds

LTM Cost of Funds

8%

6%
Median: 6.02%

4%

2%

0%
VCB CTG BID TCB VPB MBB ACB SHB HDB STB VIB TPB MSB OCB SSB LPB

The average LTM saving rates

10%

8% Median: 8.25%

6%

4%

2%

0%
VCB BID CTG MBB ACB STB PGB SGB EIB TCB LPB VPB TPB HDB

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 Initiating Coverage | VCB

c) The proportion of funding in the second-tier market of VCB stands

at an industry average of 15%, equivalent to VND 160 trillion,
supporting VCB's cost of funds. Moreover, VCB benefits from a source
of low-cost capital from financial institutions. In March 2023, VCB
successfully signed a USD 300 million capital financing agreement
with the Japan Bank for International Cooperation (JBIC) to support
renewable energy projects. This loan would aid green energy projects
and environmental protection in Vietnam. By the end of 2022, green
credits accounted for 4% of VCB's Gross Loans, equivalent to VND 46
trillion.
Despite implementing continuous interest rate reduction measures,
VCB has managed to maintain its Net Interest Margin (NIM). This gives
VCB an advantage over other banks, especially following the incident
of mass withdrawals by customers from SCB. As people regained trust
in state-owned banks, deposits increased within the Big 4 banking
group, despite VCB significantly lowering interest rates. In the past 12
months, NIM of VCB was 3.41%, a decrease of 5 bps compared to the
end of the year, higher than the industry average of 3.30%.

2. Superior asset quality due to cautious lending practices.

Loan portfolio of VCB focuses on corporate customers (46%) and
individual customers (46.2%), SME (8%) at the average lending interest
rate was 7.15%. VCB concentrates on credit in crucial sectors and
government priority areas, such as energy, supporting industrials,
import-export, agriculture, healthcare, education, and education. The
proportion of loans for real estate and construction business was VND
75 trillion, accounting for 6.6% of Gross Loans at the end of 2022.
Among these, 90% of the real estate loan portfolio is allocated to
individuals, while only 10% is dedicated to real estate developers (in
contrast to most other joint stock commercial banks). This once again
underscores VCB's cautious risk appetite, enabling the bank to
minimize the impact of a weakened real estate market in 2022-2023
and maintain superior asset quality compared to the industry.
The banking sector is facing an increase in potential NPL ratio to 6.16%
by the end of July 2023, which makes asset quality become a major
concern for investors. By the end of 9M 2023, NPL ratio of VCB was
1.21%, an increase of 53 bps compared to the end of 2022,
corresponding to NPL balance of VND 14.3 trillion (+84.3%YTD),
ranking among the top 3 banks with the lowest NPL ratio in the
industry. However, Special mentioned loans increased by 88% YTD to
VND 7.659 trillion, indicating the potential risk of rising NPL in the
future. Corporate bonds decreased by 5.8% YoY to VND 10,434 trillion,
accounting for only 0.6% of Total Assets.
VCB's Loan Losses Coverage ratio stood at 270.1%, a significant
decrease of 47.3% compared to the end of 2022, primarily due to a
sharp rise in non-performing loans in Q3 2023.
Despite having the highest Loan Losses Coverage ratio in the industry,
VCB's Provision for Credit losses expenses/Gross Loan (0.67%) is
lower than the industry average (0.79%), indicating that its ample credit
risk buffer has helped reduce provision expenses alongside the impact
of Circular 02/2023/TT-NHNN, which positively affects the bank's Net
Profit. However, the significant decline in Loan Losses Coverage ratio
in 9M 2023 poses a challenge for VCB in terms of making large amount
of provisions expenses in the future.

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 Initiating Coverage | VCB

Loan portfolio
100.0%

75.0%

50.0%

25.0%

0.0%
Q2 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023
Mortgage lending Household lending Corporate lending Others

Loan Losses Coverage ratio, NPL ratio, and Provision for Loan losses expense of VCB
500% 1.6%
1.4%
400%
1.2%
300% 1.0%
0.8%
200% 0.6%
0.4%
100%
0.2%
0% 0.0%
2017 2018 2019 2020 2021 2022 H1 2023
Loan Losses Coverage Ratio (LHS) NPL ratio (RHS) Provision for credit lossess expenses/Gross Loans (RHS)

Business performance of VCB (VND Billion)

35,000 1.4%

30,000 1.2%

25,000 1.0%

20,000 0.8%

15,000 0.6%

10,000 0.4%

5,000 0.2%

0 0.0%
2019 2020 2021 2022 9M 2023
Net Profit Provision expense Provision expense % Gross Loans

NPL ratio and Loan Loss Coverage ratio in 9M 2023

300.0% 7.0%
NPL ratio Loan Loss Coverage ratio
250.0% 6.0%

5.0%
200.0%
4.0%
150.0%
3.0%
100.0%
2.0%

50.0% 1.0%

0.0% 0.0%
BID CTG VCB MBB VPB TCB STB ACB SHB HDB VIB LPB TPB MSB SSB OCB NAB EIB

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 Initiating Coverage | VCB

VCB's capital buffer strengthens its resilience

The bank has maintained its capital buffer ratio, with an Equity-to-
Asset ratio reaching 9.2% at the end of 9M 2023. Moreover, VCB has a
capital buffer equivalent to the industry average. In September 2023,
VCB completed a capital increase of 55.9 trillion VND, representing an
18% increase compared to the end of 2022. This capital injection would
help the bank expand lending, penetrate new markets, and meet capital
requirements for future digital transformation initiatives.

The Capital Adequacy Ratio (CAR) at the end of H1 2023 was 10.84%,
higher than the minimum requirement of 8% set by the government.
Strengthening the capital buffer would enable VCB to increase its CAR
in 2023, enhancing its ability to withstand market risks, especially
shocks from the international financial market

Equity-to-Asset ratio and CAR

14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2018 2019 2020 2021 2022 9M 2023
E/A CAR

Digital transformation efforts are being emphasized

by the bank
The Cost-to-Income Ratio (CIR) improved from 34.7% in 2018 to 31.2%
in 2022. As of the end of 9M 2023, CIR stood at 29.5%, placing it in the
top 25% of banks with the lowest CIR in the industry, demonstrating
the bank's competitive advantage in optimizing funding costs.
VCB is implementing its Digital Banking Development Strategy for the
2020-2025 period, aiming to lead the digital transformation in the
banking industry and secure the top position in terms of profitability by
the year 2025.
Plan for the
period 2020-2025
Plan for the
 Plandata
Modernizing for the
infrastructure
period 2016-2020
period 2020-2025
and technology platforms
 New Core system  Enhancing customer experience
 VCB Digitalbank –  Streamlining internal processes,
Omni Channel automating operations
 Standardized  Transforming its business
branch teller model
 CRM 360 Portfolio  New business model and
 Data warehouse developing a collaborative
ecosystem with Fintech
 Finalizing digital transformation
procedures and policies.

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 Initiating Coverage | VCB

CIR
50%

40%

30%

20%

10%

0%
SHB VPB CTG VCB VIB MBB OCB TCB BID ACB HDB MSB SSB TPB STB

Non-interest income

Non-interest income achieved a 10% CAGR (2019-2022), with Income

from Payment services and Net Interest Income from foreign
exchange and gold trading as the main drivers. The proportion of Non-
Interest Income maintained around 22% of Total Operating Income
during the 2019-2022 period. We expect that the proportion of Non-
interest income would gradually increase in VCB's revenue structure to
25% of Total Operating Income by 2028F. This would be achieved
through (1) VCB's diversified revenue strategy, (2) the long-term
expectation of a thriving commercial activity in Vietnam, and (3) VCB's
market position in commercial financing and its advantage in providing
payment services.
In 9M 2023, Net Interest Income from foreign exchange and gold
trading was VND 4,767 billion (+4.1% YoY), accounting for the largest
proportion of Non-Interest Income (41%) thanks to its leading position
in the Vietnam FX market and the international trade finance and
payment market. VCB holds a 18.5% market share in trade finance with
a solid customer base consisting of numerous import-export
companies and a wide network of over 2,000 banks worldwide.
Moreover, Income from payment services was VND 1,576 billion
(accounting for 10% of Non-Interest Income) thanks to the advantages
in payment services.

9M 2022 9M 2023 %YoY

Income from payment
4,508 3,969 -12.0%
services
Net gains/(losses) from
4,581 4,767 4.1%
FX trading
Profits/(losses) from
(119) 130 NA
trading securities
Profits/(Losses) from
84 0 NA
investment securities
Income from capital
176 216 22.7%
contribution
Recoveries 1,959 1,331 -32.1%
Other incomes (205) 532 NA
Non-Interest Income 10,984 10,945 -0.4%

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 Initiating Coverage | VCB

Projection of business result in 2024

Units: VND Billion 2019 2020 2021 2022 2023E 2024E

Net Interest Income 34,577 36,285 42,400 53,246 60,079 67,614
%YoY 21.7% 4.9% 16.9% 25.6% 12.8% 12.5%
Pre-tax Income 11,153 12,776 14,324 14,836 17,487 20,577
%YoY 2.6% 14.6% 12.1% 3.6% 17.9% 17.7%
Net Income 18,526 18,473 21,939 29,919 33,311 37,497
%YoY 26.7% -0.3% 18.8% 36.4% 11.3% 12.6%
NII/Total Operating Income 75.6% 74.0% 74.7% 78.2% 77.5% 76.7%
CIR 34.6% 32.7% 31.0% 31.2% 30.7% 30.0%
Provision/Total Operating Income 14.8% 20.3% 20.7% 13.9% 17.2% 18.3%
We project credit growth of VCB to be 18.8% in 2024 thanks to:
(1) the expected recovery of Vietnam's economy in 2024 thanks to the
anticipation of rise of global demand. The robust performance of both
the Vietnamese and global economies will support credit activities
would also support credit activities;
(2) The legalization of draft laws in the real estate and banking sectors
will facilitate the flow of capital, supporting the overall economic
recovery of Vietnam.
(3) With a large and sustainable customer base of over 10 million
customers, VCB possesses a valuable asset.
(4) VCB's business strategy focuses on driving growth in wholesale
and retail credit, supporting credit expansion.
Due to strong credit growth, we expect the lending interest rate
landscape to experience a slight increase, while deposit interest rates
would rise at a slower pace. Furthermore, the increasing trend of
cashless transactions assits the bank to continue to improve its CASA
ratio, allowing VCB to maintain its advantage of accessing low-cost
capital. Additionally, following the incident involving Saigon
Commercial Joint Stock Bank (SCB), we have observed a shift in funds
from joint stock commercial banks to state-owned banks. Hence, we
expect that VCB's NIM would be 3.61% in 2024, representing a 14 basis
points increase compared to the end of 2023.

The State Bank issued Circular 02/2023/TT-NHNN allowing the

retention of debt categories to support customers, effective until 30
JUNE 2024. In 2024, we expect the pressure of NPL to increase as
Circular 02/2023/TT-NHNN expires, but the economic recovery would
ease the burden of NPL. Hence, we project the NPL ratio to be 1.10%
in 2024.
Furthermore, Circular 02/2023/TT-NHNN allows commercial banks to
make provision of at least 50% and 100% of the specific provision
amount that must be made in 2023 and 2024. We expect provision
expense for 2024 to be VND 16,100 billion (+21% YoY). Consequently,
we expect Net Profit of VCB in 2024 to be VND 37,497 billion (+12.6%
YoY).

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8
 Initiating Coverage | VCB

Evaluation and Recommendation

Using the Residual Income and P/B valuation methods, we determine
a fair value for VCB at VND 87,300 per share, corresponding to forward
P/E and P/B multiples of 13.0x and 2.17x, respectively. Hence, we
recommend Hold for VCB, with downside of 1.1% compared to the
current price.

(Units: VND Billion) 2024E 2025E 2026E 2027E 2028E

Cost of Equity 13.3% 13.3% 13.3% 13.3% 13.3%
Cost of Equity in the long-term 13.3%
Perpetuity growth rate after 2028 3%
Net Income 37,497 48,306 59,827 73,053 87,263
Residual Income 15,029 20,853 25,952 31,224 35,720
Present value of Residual Income (5 years) 13,226 16,265 17,907 19,047 212,177
Present value of Terminal Value 192,888
Present value of RI and Terminal value 278,622
Shareholder’s Equity 168,936
Number of shares outstanding (billions) 5.589

Fair price (VND/CP) 80,078

P/B Method
Book value per share 36,931
LTM industry P/B 3.15x
Residual Income P/B Fair price
Fair price (VND/CP) 116,333
Fair price
80,078 116,333 87,300
(VND/share)
Wieght VND/share
80% 20%

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 Initiating Coverage | VCB

Company Profile

Joint Stock Commercial Bank for Foreign Trade of Vietnam

(Vietcombank) officially came into operation on April 1, 1963. As the
first state-owned commercial bank selected by the Government to pilot
equitization, Vietnam Bank for Foreign Trade officially operated as a
Joint Stock Commercial Bank from June 2, 2008. after successfully
implementing the equitization plan through the initial public offering of
shares. Vietcombank's shares have officially been listed on HOSE
since 2009.

Capital injection (VND Billion)

Charter Capital (VND Billion)
90,000 83,591
80,000
70,000
60,000 55,891
47,325
50,000
36,023 37,089
40,000
30,000 23,174
19,698
20,000 13,224
10,000
0
2010 2011 2012 2016 2019 2022 2023F 2023F

(Sources: VCB, PHS compiles)

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 Initiating Coverage | VCB

Financial Statements (VND Billion)

Income Statement 2019A 2020A 2021A 2022A 2023F 2024F
Interest income 67,724 69,205 70,749 88,113 100,031 116,407
Interest expenses (33,147) (32,920) (28,349) (34,866) (39,952) (48,793)
Net interest income 34,577 36,285 42,400 53,246 60,079 67,614
Net fees and commission income 11,153 12,776 14,324 14,836 17,487 20,577
Total operating income 45,730 49,063 56,724 68,083 77,566 88,191
Operating expense (15,818) (16,038) (17,574) (21,251) (23,806) (26,417)
Net operating income before provision 29,912 33,025 39,150 46,832 53,760 61,774
Provision for credit losses expense (6,790) (9,975) (11,761) (9,464) (13,319) (16,100)
Profit before tax 23,122 23,050 27,389 37,368 40,441 45,674
Taxes expense (4,596) (4,577) (5,450) (7,449) (7,130) (8,177)
Net Income 18,526 18,473 21,939 29,919 33,311 37,497

Balance sheet 2019A 2020A 2021A 2022A 2023F 2024F

Cash and cash equivalent 13,778 15,095 18,012 18,349 18,806 22,120
Balance with State bank 34,684 33,139 22,507 92,558 37,612 45,715
Balance with other credit institutions 249,470 267,970 225,765 313,637 348,757 377,446
Trading securities 1,899 1,954 3,069 1,657 1,657 1,807
Loans to customers 734,707 839,788 960,750 1,145,066 1,213,223 1,439,679
Allowance for loans to customers (10,417) (19,243) (25,976) (24,779) (34,728) (46,105)
Investment securities 167,530 156,931 170,605 196,171 171,050 198,115
Capital contribution, long-term 2,464 2,239 2,346 2,194
2,194 2,194
investment
Fixed assets 4,450 5,411 5,553 5,170 5,480 5,809
Fixed assets 21,892 19,817 28,969 60,978 39,636 41,618
Total Assets 1,222,719 1,326,230 1,414,673 1,813,815 1,806,671 2,091,561
Liabilities 1,141,836 1,232,135 1,305,555 1,678,169 1,637,735 1,885,148
Amount due to Government and State 92,366 41,177 9,468 67,315 71,338 84,653
Deposits and borrowings from others 73,617 103,584 109,758 232,511
232,511 232,511
credit institution
Deposits from customers 928,451 1,032,114 1,135,324 1,243,468 1,253,718 1,474,681
Valuable papers issued 21,384 21,240 17,388 25,338 21,930 24,195
Other liabilities 26,018 34,021 33,618 109,537 58,238 69,108
Shareholder’s equity 80,883 94,095 109,117 135,646 168,936 206,413
Total Liabilities and Shareholder’s equity 1,222,719 1,326,230 1,414,673 1,813,815 1,806,671 2,091,561

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 Initiating Coverage | VCB

Growth Indicators 2019A 2020A 2021A 2022A 2023F 2024F

Credit growth 16.3% 14.3% 15.1% 18.9% 5.8% 18.8%
Deposits from customers 15.8% 11.2% 10.0% 9.5% 0.8% 17.6%
Net Interest income growth 21.7% 4.9% 16.9% 25.6% 12.8% 12.5%
Non net Interest income 2.6% 14.6% 12.1% 3.6% 17.9% 17.7%
Total operating income 16.4% 7.3% 15.6% 20.0% 13.9% 13.7%
Profit before tax 26.6% -0.3% 18.8% 36.4% 8.2% 12.9%
Total asset 13.8% 8.5% 6.7% 28.2% -0.4% 15.8%
Interest-Earning Assets 14.0% 8.7% 5.9% 27.3% 0.8% 16.1%
Interest-Bearing Liabilities 12.6% 7.4% 6.2% 23.3% 0.7% 15.0%

Financial Indicators 2019A 2020A 2021A 2022A 2023F 2024F

Profitability
NII to TOI 75.6% 74.0% 74.7% 78.2% 77.5% 76.7%
NNII to TOI 24.4% 26.0% 25.3% 21.8% 22.5% 23.3%
Gross profit margin 40.5% 37.7% 38.7% 43.9% 42.9% 42.5%
ROAA 1.6% 1.4% 1.6% 1.9% 1.8% 1.9%
ROAE 25.9% 21.1% 21.6% 24.4% 21.9% 20.0%
Operating ratio
Cost to Income 34.6% 32.7% 31.0% 31.2% 30.7% 30.0%
(*)
Loans to Deposits ratio 71.4% 71.4% 75.0% 75.4% 78.8% 81.2%
Net Interest Margin (NIM) 3.1% 3.0% 3.2% 3.5% 3.47% 3.61%
Non-Interest Margin (NNIM) 1.0% 1.0% 1.1% 1.0% 1.0% 1.1%
CASA ratio 28.3% 29.7% 32.3% 32.3% 29.8% 31.3%
NPL ratio 0.79% 0.62% 0.64% 0.68% 1.06% 1.10%
Loan losses ratio 179.5% 367.9% 424.4% 316.9% 270.0% 291.1%
Provision fund to customer loans 1.4% 2.3% 2.7% 2.2% 2.9% 3.2%
(*)LDR is calculated as stipultaed in Circular No. 36/2014/TT-NHNN

(Nguồn: PHS tổng hợp)

Information source is provided by Phu Hung Securities Corporation

This report is for information purposes only. Investors are responsible for their own investment decisions..
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The report was prepared by Nguyen Thi Thao Vy, Senior Analyst – Phu Hung Securities Corporation. Each research
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portion of this research report hereby certifies that, with respect to each issuer or security or any identified portion of
the report with respect to each issuer or security that the research analyst, strategist or research associate covers in
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indirectly, related to the specific recommendation(s) or view(s) expressed by that research analyst, strategist or
research associate in this research report.

Ratings Definition
Buy = Expected to outperform the local market by >10%
Hold = Expected to in line with the local market by +10%~ -10%
Sell = Expected to underperform the local market by >10%.
Not Rated = The stock is not rated in Phu Hung’s coverage universe or not listed yet.
Performance is defined as 12-month total return (including dividends)

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banking or other business for any company mentioned in this report. All opinions and estimates included in this report
constitute are based on the assessments of Phu Hung Securities as of this date and are subject to change without
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