NIMs – There is sector-wide pressure on NIMs with some banks chasing retail deposits and consequently faced with rising cost of funds. The average NIM decreased by 10 bps to 2.8% QoQ in Q1 2017. MBB’s and VCB’s current high CASA ratios of 33% and 27% help these banks enjoy low funding cost at 3.7% and 3.3%, respectively, offering opportunities to improve NIMs. MBB has the highest NIM among listed banks at 4% in Q1 2017 (+10 bps QoQ and +70 bps YoY).