- We raise our target price (TP) for LPB by 7.9% to VND13,700 but maintain an UNDERPERFORM rating. We view LPB as overvalued at 2024F P/B of 1.1x vs peer median of 1.0x with 2024F ROE of 12.2% vs peer median of 20.6%.

- Our higher TP is mainly due to (1) the positive effect of rolling our TP horizon forward to end-2024 and (2) lowering our assumption for LPB’s cost of equity due to an updated beta. This is partly offset by a 2.9% aggregate decrease in our forecast for 2023-2027 NPAT-MI (with respective changes of 2.9%/5.5%/-0.7%/-7.2%/-7.6% in 2023/24/25/26/27F).

- Our lower aggregate 2023-2027F NPAT-MI is derived from a 3.4% aggregate decrease in NII following our lower average NIM assumption, which is partly offset by a 6.4% aggregate increase in NFI (including gains from FX trading).

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