We reiterate a MARKETPERFORM rating for BID and lower the target price to VND16,400 because the increase of NPL and group 2 loans implies higher credit risk and more expenses to settle bad debts to come. In addition, BID has not made any pronounced action on the progress of capital raising even though this is an urgent issue for the bank. These concerns have been reflected in the lower-than-peers PB, which has declined since October 2015.