KEY POINTS

• The total credit growth recovered as expected. Vietnam’s credit growth reached 5.04%ytd in Q1/2022.
• The lending and funding rates are going upward, in line with the global trend.
• Rising interest rates has posted an uneven impact on banks’ profit margin. NIM of the leading private banks such as MBB, TCB remained stable while it was recorded the higher NIM at VPB and MSB.
• The average PBT growth of listed banks was recorded at 48%yoy, partly biased to the skyrocketed growth at EIB and VPB. Most of banks reported 25%-30% PBT growth in the last quarter.
• NPL ratio was kept in control. Banks are stepping up the bad debts handling and bringing restructured loans to the balance sheet.
• Investment recommendations: continue to focus on banks owning attractive stories and solid business activities: VPB (private placement plan, skyrocketed profit, successful mobilization of international syndicated loans), MBB (booming profits thanks to digital transformation and the story of restructuring a credit institution under special). In addition, we keep eyes on the fast-growing medium-sized banks such as OCB, MSB, VIB.