• We cut our target price (TP) for BID by 7.7% to VND41,800/share and downgrade our rating from OUTPERFORM to MARKET PERFORM.
• Our lower TP is mainly due to a 12.3% decrease in our projection for aggregate 2022-2026F NPAT-MI and an increase in our assumption for BID’s cost of equity from 13.0% previously to 14.5%, which are partly offset by the positive impact of rolling our TP horizon forward to end-2023.
• We raise our forecast for 2022F NPAT-MI by 3.3% to VND17.3tn (USD699mn; +64.6% YoY) following a 3.4% increase in NII, which is partly offset by (1) an 8.5% decrease in pure NFI and (2) 1.7% increase in provision expenses

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