CTG released H1 2022 results with TOI of VND30.0tn (USD1.3bn; +11.1% YoY) and NPAT-MI of VND9.3tn (USD405mn; +6.9% YoY), achieving 49.3% and 45.1% of our FY2022 forecasts, respectively. If we exclude the upfront banca fee that we expect CTG to receive in 2022, H1 2022 NPAT-MI completed 47.6% of our full-year forecast. The increase in the bottom line was mainly due to (1) a 2.8% YoY increase in NII, (2) 7.5% YoY increase in pure NFI, (3) 86.5% YoY increase in gains from FX trading and (4) 1.9x YoY increase in net other income, which were partly offset by a 21.9% YoY increase in provision expenses. On a quarterly basis, Q2 2022 NPAT-MI was VND4.6tn (-0.4% QoQ and 106.4% YoY from a low base in Q2 2021). We see no material change to our forecasts for CTG, pending a fuller review.

Limited Q2 2022 credit growth due to tight initial credit quota. CTG recorded Q2 2022 credit growth of 0.5% QoQ, in which loans to customers increased 0.7% QoQ and the corporate bond balance decreased 16.4% QoQ. 6M 2022 credit growth was 9.7% vs the bank’s initial credit quota of 10%. In addition, 6M 2022 deposit growth was 3.8%