{"id":25949,"date":"2019-07-22T16:29:22","date_gmt":"2019-07-22T09:29:22","guid":{"rendered":"https:\/\/yuanta.com.vn\/?post_type=phan-tich&#038;p=25949"},"modified":"2020-06-26T15:32:15","modified_gmt":"2020-06-26T08:32:15","slug":"mbb_1h19-earnings-boost-on-superior-loan-growth-and-strong-bancassurance-results","status":"publish","type":"phan-tich","link":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/mbb_1h19-earnings-boost-on-superior-loan-growth-and-strong-bancassurance-results","title":{"rendered":"[MBB_1H19] Earnings boost on superior loan growth and strong bancassurance results"},"content":{"rendered":"<p><strong>BUY<\/strong><\/p>\n<p>Current price (07-22-2019): VND 22,200<\/p>\n<p><strong>Target price:<\/strong> <strong>VND 29,880<\/strong><\/p>\n<p><strong>Upside:\u00a0 35%<\/strong><\/p>\n<p><strong>MBB reported strong 1H19E preliminary PBT of VND4.9 tn, +27% YoY<\/strong>, 49% of full-year guidance and our 2019E forecast. We expect NIM to further increase thanks to a superior loan growth and a high CASA ratio (33% as at 2Q19E), and fee income to be higher supported by bancassurance. The stock is cheap despite scoring very highly on our <a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2019\/07\/Banks-CAMEL_05.07.pdf\">CAMEL analytical framework<\/a>, and <strong>we reiterate our Buy rating<\/strong>.<\/p>\n<p><strong>Preliminary net interest income of VND 4.4 tn in 2Q19E (+6% QoQ, +25% YoY) and VND8.5 tn in 1H19E (+25% YoY) <\/strong>fulfilled 47.4% of our 2019E forecast. Loan growth reached 11% YTD. The SBV initially set MBB\u2019s credit growth quota at 13% for 2019 but more recently increased the quota to 17% (vs. our full-year forecast of 16% growth), due to MBB\u2019s early Basel II compliance.<\/p>\n<p><strong>Bancassurance drives extremely strong fee income growth. <\/strong>Fee income reached VND 1,055 bn in 2Q19E (+39% QoQ \/ +59% YoY) and VND 1,813 bn in 1H19E (+85% YoY). Bancassurance fees accounted in 1H19E were up 155% YoY to account for 58% of total fee income during the first six months of 2019.<\/p>\n<p><strong>Provisioning jumped significantly in 2Q19E<\/strong>, with VND1.4 tn (up 45% QoQ and up 47% YoY). Total provision in the 1H19 was up 44% YoY.<\/p>\n<p><strong>Asset quality remains solid<\/strong>. MBB\u2019s NPL ratio fell to 1.26%, down 7bps HoH and 24 bps lower than the bank\u2019s initial target of 1.5%. Notably, Category 4 NPLs were up 73% HoH, but Category 5 NPLs declined 67% HoH.<\/p>\n<p><strong>Preliminary 2Q19E PBT was VND2,451 bn (up 1% QoQ and up 28% YoY), and 1H19 PBT was VND4,875 bn (up 27% YoY), <\/strong>completing 49.3% of the Bank\u2019s full-year target and 48.9% of our 2019E forecast.<\/p>\n<p><strong>We reiterate our Buy rating<\/strong> (see our <a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2019\/06\/MBB_Initiation_Jun-2019.pdf\">initiation<\/a> for details).<\/p>\n<p>For the complete report, please access here: <a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2019\/07\/MBB_1H19-Earnings-boost-on-superior-credit-growth-and-strong-bancassurance-results.pdf\">[MBB_1H19] Earnings boost on superior credit growth and strong bancassurance results<\/a><\/p>\n<p><strong>Analysts: <\/strong><strong>Tanh Tran<\/strong>,\u00a0<em>tanh.tran@yuanta.com.vn<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>BUY Current price (07-22-2019): VND 22,200 Target price: VND 29,880 Upside:\u00a0 35% MBB reported strong 1H19E preliminary PBT of VND4.9 tn, +27% YoY, 49% of full-year guidance and our 2019E forecast. We expect NIM to further increase thanks to a superior loan growth and a high CASA ratio (33% as at 2Q19E), and fee income&#8230;<\/p>\n","protected":false},"author":10,"featured_media":0,"template":"","class_list":["post-25949","phan-tich","type-phan-tich","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.3 (Yoast SEO v23.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>[MBB_1H19] Earnings boost on superior loan growth and strong bancassurance results | Yuanta Vietnam<\/title>\n<meta name=\"description\" content=\"BUY Current price (07-22-2019): VND 22,200 Target price: VND 29,880 Upside:\u00a0 35% MBB reported strong 1H19E preliminary PBT of VND4.9 tn, +27% YoY, 49% of\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta 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