We attended BID’s AGM in Hanoi on April 28. The main agenda was to (1) review 2022 results, (2) approve 2023 targets, (3) approve stock dividend and capital raising plans, and (4) elect a new member to the Board of Directors (BOD) for the 2022-2027 term.
- The Q&A session mainly focused on (1) NPL formation in 2023, (2) Q1 2023 preliminary results, (3) an assessment on Circular 02/2023/TT-NHNN (referred to hereafter as Circular 02), and (4) credit to the real estate sector.
- Guidance for 2023 credit growth was not disclosed but will be implemented following receipt of the credit quota from the State Bank of Vietnam (SBV) — we currently assume credit growth of 11.9% YoY. In addition, funding growth is to be managed in line with credit growth to maximize funding sources, and the NPL ratio is to be kept below 1.4% (note that BID calculates its NPL ratio as NPLs over credit exposure following Circular 11/2021/TT-NHNN, which is ~20 bps lower than our approach to NPL ratio calculation). Consolidated profit before tax (PBT) is expected to rise 10%-15%, implying a PBT target of VND25.4tn-26.5tn vs our full-year forecast of VND26.8tn (+16.1% YoY).