{"id":51976,"date":"2020-04-08T13:43:30","date_gmt":"2020-04-08T06:43:30","guid":{"rendered":"https:\/\/yuanta.com.vn\/?post_type=phan-tich&#038;p=51976"},"modified":"2020-04-08T13:45:31","modified_gmt":"2020-04-08T06:45:31","slug":"vpb_discusses-the-impact-of-covid-19","status":"publish","type":"phan-tich","link":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/vpb_discusses-the-impact-of-covid-19","title":{"rendered":"VPB_discusses the impact of Covid-19"},"content":{"rendered":"<p><strong><span style=\"font-size: 18pt\">Event: VPB discusses the impact of Covid-19<\/span><\/strong><\/p>\n<p><strong>VPB disclosed several forbearance measures for borrowers who have been economically impacted by the coronavirus. Details:<\/strong><\/p>\n<ul>\n<li><strong>For corporate borrowers,<\/strong> VPB has reduced interest rates by 1.5ppt for COVID-affected clients and by up to 2ppt for corporates with solid repaypayment histories &amp; credit ratings.<\/li>\n<li><strong>For individual borrowers ((bank only)<\/strong>, VPB has slashed rates by up to 3ppt for 3-6 months, depending on the loan package.<\/li>\n<li><strong>For consumer finance customers, <\/strong>FE Credit has reduced rates by up to 10% of monthly installment payments and\/or waived a portion of interest payments for loans in categories 2 to 5.<\/li>\n<li><strong>Impact is still unclear.<\/strong> VPB states that many individuals and corporates have applied for loan restructuring. Without disclosing numbers, the bank said that this represents just a small portion of total loans.<\/li>\n<li><strong>VPB has also waived fees<\/strong> on fast interbank money transfers for all transactions, is paying an additional 0.2ppt for online deposits, and has cut online shopping fees by 10-25%. VPB disclosed that total online transaction value in 1Q20 increased 25% YoY, while online transaction volumes jumped 50% YoY.<\/li>\n<li><strong>1Q20 results preview<\/strong>. VPB did not disclosed details of its 1Q20 finanancals, but stays that it performed well in terms of credit growth, revenue, and net profit.<\/li>\n<\/ul>\n<p><span style=\"font-size: 18pt\"><strong>Our take:<\/strong><\/span><\/p>\n<p><strong>Lower credit growth, NIM, and net fee income<\/strong> are extremely likely to result from this, while asset quality is clearly under pressure.<\/p>\n<p><strong>Low leverage and strong capital should help VPB weather the storm.<\/strong> The bank\u2019s asset leverage of 9.1x is the second lowest in Vietnam. Total CAR (Basel II) was 11.1% at 4Q19, and most of this is Tier 1 capital (10.7%). For a Vietnamese bank, this represents strong solvency capital.<\/p>\n<p><strong>Valuation is cheap<\/strong> as the stock has come full circle since January VPB now trades at 0.9x 2020E P\/BV, which is in line with the sector median despite 2020E ROE of 22% (higher than the sector median ROE of 19%). We have VPB on a <a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2020\/01\/VPB_Initiation_Jan_2020_Final.pdf\"><strong>BUY<\/strong> rating<\/a>, but our earnings forecasts are currently under review in light of the operational headwinds.<\/p>\n<p>For the complete report, please access here: <a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2020\/04\/VPB_Comments-on-VPBs-message_08.04.20-1.pdf\">VPB_Comments on VPB&#8217;s message_08.04.20<\/a><\/p>\n<p><strong>Analyst: Tanh Tran<\/strong>,\u00a0<em>tanh.tran@yuanta.com.vn<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Event: VPB discusses the impact of Covid-19 VPB disclosed several forbearance measures for borrowers who have been economically impacted by the coronavirus. Details: For corporate borrowers, VPB has reduced interest rates by 1.5ppt for COVID-affected clients and by up to 2ppt for corporates with solid repaypayment histories &amp; credit ratings. For individual borrowers ((bank only),&#8230;<\/p>\n","protected":false},"author":10,"featured_media":0,"template":"","class_list":["post-51976","phan-tich","type-phan-tich","status-publish","hentry","analysis-category-company-update","analysis-category-financials"],"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>VPB_discusses the impact of Covid-19 | Yuanta Vietnam<\/title>\n<meta name=\"description\" content=\"Event: VPB discusses the impact of Covid-19 VPB disclosed several forbearance measures for borrowers who have been economically impacted by the\" \/>\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=\"VPB_discusses the impact of Covid-19\" \/>\n<meta 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