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VCB [BUY +58.5%] - News flow from equity offering/banca to propel VCB - Update

Company Research

28 May 2018

We reiterate a BUY rating and revise our TP to VND73,500, offering 58.5% upside. A capital increase via a 10% private placement to be completed in Q3 2018 and will be factored in to this update. This transaction will move VCB away from current “sleepy” LDR. Net interest income (NII) is expected to grow at 31% Y-o-Y helped by a 20-bps rise in consolidated NIM. Net fee income (NFI) is forecast to increase by 32% Y-o-Y, contributing 9% to TOI.
Tags: VCB

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