Research Center
Quay lại

CTG - Lackluster results; bottom line growth saved by lower provisions - Earnings Flash

Summary – CTG released results for Q3 2017 with 9M net income fulfilling 98% of our forecast. Despite contracted NIMs, a provisions buffer allowed a 35% Q-o-Q reduction in provision expense, leading to 4% profit growth from Q2 2017. Most metrics underwhelm on a Y-o-Y and Q-o-Q basis with respect to peers, but are in line with our forecasts. While earnings performance was underwhelming, the investment case is dependent largely on valuation and corporate franchise strength.