Equity Analysis /
Vietnam

Vietinbank: VIETINBANK: Q1 18 beats expectations, but still undercapitalised

    Tellimer Research
    30 April 2018
    Published byTellimer Research
    Vietinbank’s (CTG) Q1 18 net profit of VND2.4tn was up 20% yoy and 15% ahead of our forecast (VND2.1tn). The beat mostly came from lower than expected loan impairment charges. Pre-provision profit (+15% yoy) missed our forecast by 2%, with lower revenues offsetting lower operating costs. CTG fully wrote down VAMC assets in Q1. Slowing asset growth (+2% qoq) also helped improve the equity/assets ratio by 10bp, although it is still low at 5.9%.