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STB - Insufficient earnings to make a dent in legacy assets - Earnings Flash

Company Research

24 Apr 2018

STB released consolidated results for Q1 2018 with the bottom line totalling VND397bn (USD17mn, +88% Y-o-Y). Annualized ROAA and ROAE were 0.4% and 6.8%, respectively. Although the core business saw tiny improvements, high CIR and low provision expenses remained. We do not see any change in our TP in the next update. The following two bullet points reflect growth coming off a low base:

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