- We lower our target price (TP) by 1.0% to VND38,800/share and maintain a BUY rating for TPB.

- Our lower TP is mainly due to (1) decreasing our target P/B from 1.60x to 1.55x and (2) increasing our in-house cost of equity from 12.5% to 13.0%, which are partly offset by a 3.1% aggregate increase in our 2022-2026F NPAT projection.

- We reduce our 2022F NPAT by 2.3% vs our previous forecast because of (1) a 2.1% decrease in NII, (2) 4.2% increase in projected OPEX and (3) 10.5% increase in provision expenses. These factors are partly offset by (1) a 69.2% increase in income from investment securities and (2) 8.0% increase in NFI (including FX) due to the outperformance in H1 2022 of international transaction services by SME clients jumping 30%-40% YoY.

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