- We increase our target price (TP) for VIB by 8.3% to VND26,000/share but downgrade our rating from BUY to MARKET PERFORM as VIB’s share price has increased by nearly 25% in the last six months. Our higher TP is due to (1) the positive impact of rolling our TP horizon to end-2024F and (2) a 0.8% increase in our aggregate 2024-2027F NPAT-MI (respective changes of -7.5%/-2.2%/1.9%/8.4%in 2024/25/26/27F).

- We decrease our forecast for 2024F NPAT-MI by 7.5% as (1) a 63.1% increase in our provision charge assumption outweighs (2) a 5.6% increase in TOI forecast. 

- 85% of VIB’s lending portfolio is to the retail segment. The bank has minimal credit exposure to real estate developers and corporate bonds. Corporate bonds accounted for 0.4% of VIB’s credit exposure and were issued by manufacturing and services companies. 

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