Strong revenue generation cushions ramp-up in impairment charges. Aggregate net profit for our coverage universe rose 33% yoy to VND10.4tn, 34% above our VND7.8tn forecast (Table 1). Revenues were the key driver of the positive surprises, although loan impairment charges were higher than expected. Resolution of VAMC assets also appears to be on track for all banks. Given Vietnam’s relatively healthy macro outlook and stable politics, we continue to see near- and medium-term earnings tailwinds from robust top-line growth and falling VAMC credit costs. However, we remain cautious on the sector long-term, due to its lagging ROA, poor liquidity and weak capital.