Update VCB Hold, 31st Aug 2020

Maintain a HOLD recommendation with a new one-year target price of VND 84,019 per share:  6M2020 profit went flat due to the impact of the Covid-19. NIM decreased due to postponement/reduction of interest and lower CASA. Group 2 loans surged but VCB has already made provisions in advance. Off-balance-sheet debt collection in 1H2020 decreased due to the delay of collateral liquidation and litigation. We expect 2H2020 business results to continue to be flat but growth will return from 2021. We expect 2H2020 business results to continue to be flat but growth will return from 2021. The private placement to increase equity is not really necessary for VCB.

 

 

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