- We raise our target price (TP) for LPB by 14.2% to VND16,900/share and maintain our OUTPERFORM rating.

- Our higher TP is mainly derived from (1) a 12.5% aggregate increase in our projection for 2023-2027F NPAT and (2) decreasing our assumption for LPB’s cost of equity from 16.6% to 16.4% due to an updated beta.

- We raise our projection for 2023F NPAT by 5.6% to VND5.1tn (+13.1% YoY), which is primarily driven by (1) a 4.0% increase in NII following a 14-bp upward revision in our NIM projection and (2) 9.5% decrease in OPEX, which are partly offset by (1) a 16.2% decrease in NFI (including FX) as we lower our assumption for LPB’s upfront banca fee and (2) a 19.2% increase in provision expenses due to our more conservative asset quality assumption.

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