- We raise our target price (TP) for BID by 7.4% to VND54,000/share and maintain an OUTPERFORM rating.

- Our higher TP is due to (1) a 5.6% increase in our projection for aggregate 2023-2027F NPAT-MI (respective increases of 7.5%/9.9%/6.5%/0.7%/6.3% in 2023/24/25/26/27F), (2) increasing our assumption for BID’s target P/B from 2.1x to 2.3x, and (3) decreasing our cost of equity assumption for BID due to an updated beta.

- The increase in our 2023-2027F earnings is underpinned by 3.7% higher aggregate NII following our increased average assumption for credit growth, which is partly offset by 1.1% and 1.8% increases in OPEX and provision expenses, respectively.

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