{"id":35921,"date":"2019-10-08T11:54:53","date_gmt":"2019-10-08T04:54:53","guid":{"rendered":"https:\/\/yuanta.com.vn\/?post_type=phan-tich&#038;p=35921"},"modified":"2019-10-08T11:54:53","modified_gmt":"2019-10-08T04:54:53","slug":"stb-vn_turnaround-continues-to-progress","status":"publish","type":"phan-tich","link":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/stb-vn_turnaround-continues-to-progress","title":{"rendered":"STB VN_Turnaround continues to progress"},"content":{"rendered":"<p><span style=\"font-size: 18pt\"><strong>Buy<\/strong><\/span><\/p>\n<p><strong>TP upside (downside) +34%<\/strong><\/p>\n<p><strong>STB reported 9M19 preliminary adjusted operating revenue (excluding \u201cother income\u201d) of VND10 tn, up 31% YoY. <\/strong>Net interest income was VND2.9 tn in 3Q19 (up 45% QoQ and 41% YoY) and VND7.4 tn in 9M19 (up 34% YoY).<\/p>\n<p><strong>Credit growth reached 13% YTD, higher than the initial quota of 7%<\/strong> at the beginning of the year. We thus believe that the SBV has granted an increased credit quota to STB. Though the bank has not disclosed an exact number, we expect 15%-16% credit growth in 2019, which will help boost interest income in 4Q19 and beyond.<\/p>\n<p><strong>Strong fee income<\/strong>. Fee income was VND747 bn in 3Q19 (up 1% QoQ and 19% YoY) and VND2.1 tn in the first 9M (up 21% YoY). Bancassurance income contributed 13% to the total YTD fees. Although this is down from the segment\u2019s 22% fee contribution in 2018A, we remain bullish on bancassurance and believe that the comps are skewed by one-off exclusivity fees collected last year.<\/p>\n<p><strong>PBT reached VND1.0 tn in 3Q19 (up 158% QoQ and 223% YoY) and VND2.5 tn in 9M19 (up 90% YoY), <\/strong>completing 94% of the bank\u2019s full-year target and 80% of our forecast.<\/p>\n<p><strong>Balance sheet repair appears to be on track<\/strong>. Other income, which we believe is mostly NPL recoveries, reached VND115 bn in 3Q19 (down 73% QoQ, but up 25% YoY) and VND845 bn in 9M19 (up 176% YoY). This indicates some slowing of non-performing asset restructuring (e.g., sales) in 3Q19. But such recoveries are typically lumpy by nature, and the YTD number is still very strong in our view.<\/p>\n<p><strong>Asset quality has continued to improve<\/strong>. We have yet to see the full breakdown of NPAs, but preliminary category 3-5 NPLs decreased from 2.20% in 2018A to 1.96% in 3Q19, which is a positive indicator.<\/p>\n<p><strong>We reiterate BUY on <\/strong><a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2019\/01\/STB_Initiation_January-2019-Final-1.pdf\">STB<\/a>, which we see as a turnaround play given its strong core operational performance amidst legacy bad asset restructuring. The Street appears to have ignored the positive operational trends, but we think the share price will eventually rerate. We suggest that investors consider a barbell approach with VCB as a core holding and to STB for the potential rerating.<\/p>\n<p>For the complete report, please access here: <a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2019\/10\/STB_3Q19-Update_08.10.2019.pdf\">STB_3Q19 Update_08.10.2019<\/a><\/p>\n<p><strong>Analyst: Tanh Tran,<\/strong>\u00a0<em>tanh.tran@yuanta.com.vn<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buy TP upside (downside) +34% STB reported 9M19 preliminary adjusted operating revenue (excluding \u201cother income\u201d) of VND10 tn, up 31% YoY. Net interest income was VND2.9 tn in 3Q19 (up 45% QoQ and 41% YoY) and VND7.4 tn in 9M19 (up 34% YoY). Credit growth reached 13% YTD, higher than the initial quota of 7%&#8230;<\/p>\n","protected":false},"author":10,"featured_media":0,"template":"","class_list":["post-35921","phan-tich","type-phan-tich","status-publish","hentry","analysis-category-company-update"],"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>STB VN_Turnaround continues to progress | Yuanta Vietnam<\/title>\n<meta name=\"description\" content=\"Buy TP upside (downside) +34% STB reported 9M19 preliminary adjusted operating revenue (excluding \u201cother income\u201d) of VND10 tn, up 31% YoY. Net interest\" \/>\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 property=\"og:title\" content=\"STB VN_Turnaround continues to progress\" \/>\n<meta property=\"og:description\" content=\"Buy TP upside (downside) +34% STB reported 9M19 preliminary adjusted operating revenue (excluding \u201cother income\u201d) of VND10 tn, up 31% YoY. Net interest\" \/>\n<meta property=\"og:url\" content=\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/stb-vn_turnaround-continues-to-progress\" \/>\n<meta property=\"og:site_name\" content=\"Yuanta Vietnam\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/stb-vn_turnaround-continues-to-progress\",\"url\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/stb-vn_turnaround-continues-to-progress\",\"name\":\"STB VN_Turnaround continues to progress | Yuanta Vietnam\",\"isPartOf\":{\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#website\"},\"datePublished\":\"2019-10-08T04:54:53+00:00\",\"dateModified\":\"2019-10-08T04:54:53+00:00\",\"description\":\"Buy TP upside (downside) +34% STB reported 9M19 preliminary adjusted operating revenue (excluding \u201cother income\u201d) of VND10 tn, up 31% YoY. Net interest\",\"breadcrumb\":{\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/stb-vn_turnaround-continues-to-progress#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/stb-vn_turnaround-continues-to-progress\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/stb-vn_turnaround-continues-to-progress#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Analysis\",\"item\":\"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"STB VN_Turnaround continues to progress\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#website\",\"url\":\"https:\/\/yuanta-uat.ysvn.com.vn\/\",\"name\":\"Yuanta Vietnam\",\"description\":\"Asia&#039;s leading Financial Holding Group and Securities Firm\",\"publisher\":{\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/yuanta-uat.ysvn.com.vn\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#organization\",\"name\":\"Yuanta Vietnam\",\"url\":\"https:\/\/yuanta-uat.ysvn.com.vn\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#\/schema\/logo\/image\/\",\"url\":\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2018\/03\/favicon.png\",\"contentUrl\":\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2018\/03\/favicon.png\",\"width\":33,\"height\":32,\"caption\":\"Yuanta Vietnam\"},\"image\":{\"@id\":\"https:\/\/yuanta-uat.ysvn.com.vn\/#\/schema\/logo\/image\/\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"STB VN_Turnaround continues to progress | Yuanta Vietnam","description":"Buy TP upside (downside) +34% STB reported 9M19 preliminary adjusted operating revenue (excluding \u201cother income\u201d) of VND10 tn, up 31% YoY. Net interest","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_US","og_type":"article","og_title":"STB VN_Turnaround continues to progress","og_description":"Buy TP upside (downside) +34% STB reported 9M19 preliminary adjusted operating revenue (excluding \u201cother income\u201d) of VND10 tn, up 31% YoY. Net interest","og_url":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/stb-vn_turnaround-continues-to-progress","og_site_name":"Yuanta Vietnam","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/stb-vn_turnaround-continues-to-progress","url":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/stb-vn_turnaround-continues-to-progress","name":"STB VN_Turnaround continues to progress | Yuanta Vietnam","isPartOf":{"@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#website"},"datePublished":"2019-10-08T04:54:53+00:00","dateModified":"2019-10-08T04:54:53+00:00","description":"Buy TP upside (downside) +34% STB reported 9M19 preliminary adjusted operating revenue (excluding \u201cother income\u201d) of VND10 tn, up 31% YoY. Net interest","breadcrumb":{"@id":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/stb-vn_turnaround-continues-to-progress#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/stb-vn_turnaround-continues-to-progress"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/stb-vn_turnaround-continues-to-progress#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/yuanta-uat.ysvn.com.vn\/en"},{"@type":"ListItem","position":2,"name":"Analysis","item":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis"},{"@type":"ListItem","position":3,"name":"STB VN_Turnaround continues to progress"}]},{"@type":"WebSite","@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#website","url":"https:\/\/yuanta-uat.ysvn.com.vn\/","name":"Yuanta Vietnam","description":"Asia&#039;s leading Financial Holding Group and Securities Firm","publisher":{"@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/yuanta-uat.ysvn.com.vn\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#organization","name":"Yuanta Vietnam","url":"https:\/\/yuanta-uat.ysvn.com.vn\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#\/schema\/logo\/image\/","url":"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2018\/03\/favicon.png","contentUrl":"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2018\/03\/favicon.png","width":33,"height":32,"caption":"Yuanta Vietnam"},"image":{"@id":"https:\/\/yuanta-uat.ysvn.com.vn\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/phan-tich\/35921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/phan-tich"}],"about":[{"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/types\/phan-tich"}],"author":[{"embeddable":true,"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/users\/10"}],"version-history":[{"count":0,"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/phan-tich\/35921\/revisions"}],"wp:attachment":[{"href":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/wp-json\/wp\/v2\/media?parent=35921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}