BVBank (UPCOM: BVB) | Q1 2026 Update, BUY – 1Y Upside +36.5%

Earnings Momentum Strengthens; HOSE Listing and Capital Expansion Plan

BVB entered 2026 with good momentum, delivering one of its strongest quarterly performances in recent years with PBT of VND 216bn (+168.8% YoY, +153.2% QoQ), completing nearly 31% of the management's full-year target and 24.5% of our initial projections. TOI reached VND 898.1bn (+61.4% YoY, +9.1% QoQ) fueled by a 56% jump in net interest income driven by NIM recovery of 15bps QoQ to 2.6%.

As of end-Q1 2026, total assets reached VND 136.9tn (+2.9% YTD) with loans to customers accounting for VND 79.2tn (+11.9% YoY, +2.0% YTD). Customer deposits increased 3.7% YTD to VND 74tn, slightly outpacing credit growth of 2.0% YTD, but funding cost also rose 13bps to 6.3% as end of Q1 2026.

BVB continued to invest in its digital ecosystem, with strong growth in new digital customers (+27% YTD) and transaction activity, reinforcing its long-term strategy of building a scalable, retail-focused platform. At AGM, shareholder have approved key innitiatives for 2026, including the plan to transfer BVB listing to HOSE (targeted for Q3 2026), a VND 3.5tn charter capital increase via a 2:1 rights issue and 30mn-share ESOP, and a FY2026 PBT target of VND 700bn (+34% YoY), of which the bank had already completed ~31% in Q1 2026. Shareholders also approved retaining all earnings with no cash dividend payout in order to support future growth and capital strengthening.

We maintain our FY2026 forecast for BVB with TOI of VND 3,469bn (+19.2% YoY) and NPAT-MI of VND 703bn (+68.8% YoY). Accordingly, our FY2026 target price remains at VND 17,200/share, implying a 36.5% upside from the closing price of VND 12,600/share as of May 7, 2026. We therefore maintain our BUY recommendation on BVB.