- We attended CTG’s AGM in Hanoi on April 21. The main agenda was to (1) review 2022 results, (2) approve 2023 targets, (3) approve a stock dividend plan using 2021 retained earnings and accumulated retained earnings as of end-2016, and (4) elect an additional member to the Board of Directors (BOD) for the 2019-2024 term. 

- The Q&A section focused on (1) Q1 2023 results, (2) the potential from bancassurance, and (3) CTG’s assessment on the promulgation of Circular 26/2022/TT-NHNN (referred to hereafter as Circular 26).

- 2023 targets include total asset growth of 5%-10% YoY vs our full-year forecast of 9.6% YoY. Guidance on credit growth was not disclosed (our current assumption is 11.9% YoY) but will be implemented following receipt of the credit quota from the State Bank of Vietnam (SBV) In addition, funding growth is targeted to be in accordance with credit growth, the NPL ratio is targeted to be kept below 1.8% (vs our full-year forecast of 1.4%), and parent PBT growth is targeted to be in accordance with what is approved by authorities. CTG has submitted a proposal to the Government for 2023 PBT growth guidance (which we believe is quoted for the parent level) of 10%-15% vs our forecast for 9.8% PBT growth at the consolidated level. Over the last three years, PBT at the parent level accounted for 96% of consolidated PBT. CTG also has a track record of exceeding its earnings guidance over the last five years.

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