- We raise our target price (TP) for BID by 8.2% to VND50,300/share and upgrade our rating from MARKET PERFORM to OUTPERFORM.

- Our higher TP is mainly due to (1) a 2.7% increase in our projection for aggregate 2023-2027F NPAT-MI (0.5%/3.1%/2.7%/5.2%/1.2% for 2023/24/25/26/27F, respectively), (2) the positive impact of rolling our TP horizon forward to mid-2024, and (3) a slight decrease in our cost of equity for BID due to an updated beta.

- The increase in our 2023-2027F earnings is underpinned by (1) a 1.0% aggregate increase in NII and (2) a 4.4% aggregate increase in NFI (including gains from FX trading), which are partly offset by a 1.1% aggregate increase in provision expenses.

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