Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

Vietnam Technological & Commer / Equity Bottom-Up

<ul>
<li>We maintain Techcombank as our top pick in the Vietnamese banks, given its attractive valuations, solid pre and post provision returns and its fortress balance sheet</li>
<li>We add MBBank to the buy list with its attractive valuations, premium ROE and sound balance sheet metrics; we are neutral on Vietcombank</li>
<li>VP Bank remains one to watch; its NPL ratio has worsened further to March 2023 and it is the negative outlier of the peer group on credit quality</li>
</ul>


We maintain Techcombank as our top pick in the Vietnamese banks, given its attractive valuations, solid pre and post provision returns and its fortress balance sheet
We add MBBank to the buy list with its attractive valuations, premium ROE and sound balance sheet metrics; we are neutral on Vietcombank
VP Bank remains one to watch; its NPL ratio has worsened further to March 2023 and it is the negative outlier of the peer group on credit quality


Vietnamese Banks Screener; Adding MBBank to Our Core Pick Techcombank

External broker reports(aggregated public sources), Rong Viet Securities

Rong Viet Securities

External broker reports(aggregated public sources)

RongViet is proud to have a research team of experienced and trustworthy people whose works are at all time governed by the codes of objectivity, integrity and client's best interest.

Looking at relevant, up-to-date information from multiple perspectives with the support of intensive data and analyses, RongViet's research is effective, practical and widely used for investing purposes.

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>VCB was amongst the few banks that could maintain growth momentum until the last quarter of the year.</li><li>Both quarterly and yearly bottom line growth were driven by tailwinds in interest income (+25.6% YoY) and credit cost (-19.5% YoY).</li><li>On a quarterly basis, credit growth ticked up 1.5% alongside a 10bps expansion in NIM, resulting in a single- digit growth in NII (8% QoQ).</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

VCB was amongst the few banks that could maintain growth momentum until the last quarter of the year.Both quarterly and yearly bottom line growth were driven by tailwinds in interest income (+25.6% YoY) and credit cost (-19.5% YoY).On a quarterly basis, credit growth ticked up 1.5% alongside a 10bps expansion in NIM, resulting in a single- digit growth in NII (8% QoQ).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

External broker reports(aggregated public sources), Mirae Asset Securities

Mirae Asset Securities

Leading full-service brokerage firm in Vietnam. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>By end-2022, the total assets of JSCB for Foreign Trade of Vietnam (VCB) reached VND1,814tr (US$77.2bn, +28.2% YoY), recording a five-year-high growth rate.</li><li>Loans to customers reached VND1,145tr (US$48.7bn), up by 19.2% YoY.Key driversof loan growth included retail banking (+19.6% YoY) and corporate (+18.3% YoY).</li><li>Notably, netlending to other credit institutions increased by 38.9% YoY to VND313.6tr (US$13.3bn).</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

By end-2022, the total assets of JSCB for Foreign Trade of Vietnam (VCB) reached VND1,814tr (US$77.2bn, +28.2% YoY), recording a five-year-high growth rate.Loans to customers reached VND1,145tr (US$48.7bn), up by 19.2% YoY.Key driversof loan growth included retail banking (+19.6% YoY) and corporate (+18.3% YoY).Notably, netlending to other credit institutions increased by 38.9% YoY to VND313.6tr (US$13.3bn).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

JSCB for Foreign Trade of Vietnam (VCB – Hold) - Keep moving forward 

<ul>
<li>The Vietnamese banks should be partially shielded from the market fallout due to Silicon Valley Bank given the bank system’s lack of integration with the global financial system</li>
<li>We are selective in our stock picks, given the investment climate and the challenges to capital adequacy for a number of banks; we also assess the banks’ deposit ratios</li>
<li>We recommend shareholders to switch out of Vietcombank into Techcombank given its very modest valuations, attractive PEG and its strong capital ratio; VP Bank is one to watch</li>
</ul>


The Vietnamese banks should be partially shielded from the market fallout due to Silicon Valley Bank given the bank system’s lack of integration with the global financial system
We are selective in our stock picks, given the investment climate and the challenges to capital adequacy for a number of banks; we also assess the banks’ deposit ratios
We recommend shareholders to switch out of Vietcombank into Techcombank given its very modest valuations, attractive PEG and its strong capital ratio; VP Bank is one to watch


Vietnamese Banks 4Q 2022 Results Screener; Our Pick Is Techcombank

Thematic (Sector/Industry)

<ul><li>By the end of 4Q22, credit growth reached 14.5%, the highest since 2018.</li><li>Credit growth was lower than expected, in light of the high credit growth cap of 16% granted at end-2022.</li><li>The SBV has implied that high credit growth will be tolerated, but that the systemic stability of the financial industry will remain the top priority: The Standing Deputy Governor of the State Bank of Vietnam has said credit growth in the banking sector in 2023 could reach about 14–15%.</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

By the end of 4Q22, credit growth reached 14.5%, the highest since 2018.Credit growth was lower than expected, in light of the high credit growth cap of 16% granted at end-2022.The SBV has implied that high credit growth will be tolerated, but that the systemic stability of the financial industry will remain the top priority: The Standing Deputy Governor of the State Bank of Vietnam has said credit growth in the banking sector in 2023 could reach about 14–15%.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Banking Sector - 2022 Update and Outlook - Aftermath of cheap money cycle and real estate boom

Vietnam

JSC Bank for Foreign Trade of Vietnam is a commercial bank.  The Bank attracts deposits and offers consumer and corporate loans, and foreign exchange services, and sponsors credit cards.

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Vietcombank (VCB VN)

Vietnamese Banks Screener; Adding MBBank to Our Core Pick Techcombank

We maintain value play TCB as our top pick in the Vietnamese banks, adding MBBank to the buy list with its attractive valuations and premium ROE;...

Victor Galliano

VCB - Resilient amidst uncertainties

VCB was amongst the few banks that could maintain growth momentum until the last quarter of the year. Both quarterly and yearly bottom line growth...

Rong Viet Securities

JSCB for Foreign Trade of Vietnam (VCB – Hold) - Keep moving forward

By end-2022, the total assets of JSCB for Foreign Trade of Vietnam (VCB) reached VND1,814tr (US$77.2bn, +28.2% YoY), recording a five-year-high...

Mirae Asset Securities

Vietnamese Banks 4Q 2022 Results Screener; Our Pick Is Techcombank

We see selective value in Vietnamese banks and recommend holders to switch out of Vietcombank into Techcombank due to its modest valuations, low...

Victor Galliano

Banking Sector - 2022 Update and Outlook - Aftermath of cheap money cycle and real estate boom

By the end of 4Q22, credit growth reached 14.5%, the highest since 2018. Credit growth was lower than expected, in light of the high credit growth...

Mirae Asset Securities

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Vietnamese Banks Screener; Adding MBBank to Our Core Pick Techcombank

We maintain value play TCB as our top pick in the Vietnamese banks, adding MBBank to the buy list with its attractive valuations and premium ROE;...

Victor Galliano

VCB ­- Resilient amidst uncertainties

VCB was amongst the few banks that could maintain growth momentum until the last quarter of the year. Both quarterly and yearly bottom line growth...

Rong Viet Securities

JSCB for Foreign Trade of Vietnam (VCB – Hold) - Keep moving forward

By end-2022, the total assets of JSCB for Foreign Trade of Vietnam (VCB) reached VND1,814tr (US$77.2bn, +28.2% YoY), recording a five-year-high...

Mirae Asset Securities

Vietnamese Banks 4Q 2022 Results Screener; Our Pick Is Techcombank

We see selective value in Vietnamese banks and recommend holders to switch out of Vietcombank into Techcombank due to its modest valuations, low...

Victor Galliano

Banking Sector - 2022 Update and Outlook - Aftermath of cheap money cycle and real estate boom

By the end of 4Q22, credit growth reached 14.5%, the highest since 2018. Credit growth was lower than expected, in light of the high credit growth...

Mirae Asset Securities

VCB - Resilient amidst uncertainties