VEIL Monthly Report – November 2025

Performance

Fund Commentary

VEIL’s NAV gained 0.4% in November. This modest rise occurred during a month marked by rotation and consolidation across key financial holdings.

Banks and brokerages saw profit-taking after a strong third-quarter rally, reflecting a pause in liquidity-driven momentum. The VNI gained 3.0%, supported by a sharp rise in VIC ahead of potential regulatory approval for the high-speed rail project Vinspeed and a planned 1:1 bonus share issuance in December.

Residential real estate continued to deliver steady results. Vinhomes (VHM) recorded strong absorption at its Can Gio project, reaffirming demand recovery in the mid-high-end housing segment.

Khang Dien House (KDH) also saw rapid sales, with nearly all townhouses at its Gladia project sold within a month of launch.These developments underscore the ongoing rebound in high-quality residential supply and reflect buyers’ returning confidence as mortgage rates stabilize.

Additional support came from Novaland (NVL), VP Bank (VPB), and Techcom Securities (TCX). VEIL’s pre-IPO participation in TCX at a discount contributed to monthly performance.

Financials were softer in November, though fundamentals remain healthy. Core banks, including MBB, VPB, and TCB, are entering year-end with improving asset quality, controlled provisioning, and a stable net interest margin outlook.

Brokerages faced mild pressure as trading value normalized, but the sector is well placed for renewed activity as the IPO and private placement cycle accelerates, with upcoming listings such as the brokerages VP Bank Securities and VPS in December.

We remain optimistic as Vietnam moves from year-end 2025 into 2026. Vietnam’s macro backdrop continues to strengthen, underpinned by healthy domestic demand, consistent FDI inflows, and policy stability following the FTSE upgrade roadmap.

VEIL’s focus on reform-led banks, resilient residential developers, and capital market leaders positions it well to capture both cyclical recovery and long-term structural growth.

Stock in Focus: VietinBank (CTG)

VietinBank is one of Vietnam’s “Big 3” listed state-owned commercial banks (SOCBs) and the country’s second-largest lender by total assets. In recent years, CTG has distinguished itself as the strongest performer among the SOCBs.

In 3Q25, CTG reported NPATMI of $320mn, up 61.7% YoY, significantly ahead of VCB at 5.3% and BID at 15.6%. CTG now leads the Big 3 on ROE at 20.3% (vs VCB’s 16.5% and BID’s 14.4%) and on operating efficiency, with a CIR of 26.8%.

Asset quality has also improved, with NPLs declining to 1.1%, nearly matching VCB’s sector-leading 1.0% and well ahead of BID’s 1.9% and the sector average of 1.4%.

From a valuation standpoint, CTG trades at a forward P/E of 8.0x, offering a meaningful discount to VCB at 13.7x and BID at 11.8x.

We forecast profit growth of 27% in 2025 and 16% in 2026, supporting a healthy multi-year earnings trajectory. The bank’s strengthening balance sheet, impressive SOCB-leading ROE, and falling NPL ratio indicate improving core profitability at a time when Vietnam’s credit cycle is accelerating.

This creates a supportive backdrop for sustained earnings delivery into 2026 and adds resilience to VEIL’s financials exposure.