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Eximbank (EIB) is the 6th largest bank in Vietnam in terms of total assets, and is focused on SME and retail lending. Following an outstanding earnings performance in FY2011, VietCapital look for EIB to greatly undershoot its FY2012 full-year target of VND4,600 billion in pre-tax earnings. VietCapital's own forecast calls for only VND3,394 billion in pre-tax earnings due to stagnant credit growth and provision charges to cover rising NPLs. With no positive catalysts on the horizon, VietCapital are initiating EIB with a HOLD rating and price target of VND 14,900.
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