LPB – We maintain our ADD recommendation for LPB and increase our target price to VND17,700

■ The bank’s 61% profit growth in 9M 2017 was driven by a surge in its net interest income.
■ The bank’s NIM surged by 18bps due to strong retail lending growth.
■ LPB’s good asset quality is reflected in its low non-performing loans (NPL) ratio and high loan loss coverage ratio (LLR).
■ The bank’s low loan-to-deposit ratio (LDR) allowed robust loan growth but headroom for loan growth is contracting.
■ LPB trades at a discount to peers despite strong fundamentals.