CTG [BUY +24.5%] - Easing provisioning costs to boost earnings in H2 - Update
We update CTG with a BUY rating with a total return of 24.5%, including dividend yield. Our TP is lowered by 14% due to a small increase in the portion of retail lending to offset upward pressure on funding costs. We forecast NII to grow by 15% YoY in 2018, with flat NIM at 2.8% and revised loan growth at 15% YoY (-1.5 ppts) due to SBV reining in credit growth for 2018. We maintain our positive view on NFI growth momentum from trade services/cash management and insurance services.