- We attended VCB’s AGM in Hanoi on April 21. The meeting’s main agenda was to (1) review 2022 results, (2) approve 2023 targets and guidance for 2023-2028, and (3) elect the Board of Supervisors (BOS) and the Board of Directors (BOD) for the 2023-2028 term.

- The Q&A section focused on (1) the progress of plans to increase charter capital, (2) Q1 2023 preliminary results, (3) risks from loans to other credit institutions and (4) progress of receiving a distressed credit institution (DCI).

- 2023 targets include (1) total asset growth of 9% YoY vs our full-year forecast of 16.1% YoY, (2) credit growth of 14.0% vs our current assumption of 17.7%, (3) funding growth to be in accordance with credit growth, (3) the NPL ratio to be kept below 1.5% vs our full-year forecast of 0.98%, and (4) 2023 consolidated PBT to rise at least 15% YoY, implying a PBT target of at least VND43tn vs our full-year 2023 PBT forecast of VND45tn (+20.7% YoY). VCB has beaten its earnings guidance over the last four years by 6%-22%.

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