VIB is expected to enjoy good performance in 2024. Total operating income and NPAT are forecast to reach VND 24,376 billion (+10% y/y) and VND 10,017 billion (+17% y/y), respectively. VIB credit growth rate is expected to reach 16% and NIM to reach 4.3%, which are relatively high figures. Group 2 debt has fallen since Q4/2023 and we expect Group 2 debt and NPL ratio to further decrease.

VIB maintains high profitability compared to other banks. VIB's TTM ROE is the highest in the top 12 listed banks with the largest asset scale, even with the firm facing many difficulties in 2023 when NPL increased sharply and high credit risk provisions must be made. VIB is maintaining an effective competitive strategy through online channels. VIB's loan products have the advantage of quick approval time and long loan terms.

We utilize the Residual Income and P/B multiple methods to determine VIB’s target price. The result is VND 29,604/share. Due to being 39% higher compared to closing price on March 11^th, 2024, BVSC recommends OUTPERFORM for VIB stock.

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