CTG:

- Company’s index:

We can see that CTG’s EPS (earning per share) has grew up for 4 years recently
from 1,996 VNĐ in 2017 to 3,678VNĐ in 2020, nearly doubled between 2017
and 2020. It means that CTG is highly appreciated because it has a steady
growth in earnings per share that steadily increases each year.
Looking at P/E, a high coefficient means that investors expect higher
profitability in the company's future.

ROEA increases steadily in 4 years, the higher the ROE, the more effective the
ability to use capital is and this is the basis of assessing the profitability of the
business in the future. ROA shows the efficiency level when using assets of the
business. Investors will see how much interest the business makes on 1 dong of
assets.The higher the ROA, the more effective the asset is to use. Similar to the
ROE index, securities with a high ROA will be the more favored securities. And
of course, securities with a high ROA also have a higher price. An increased
ROA proves that the business uses assets more efficiently, of course, will be
more appreciated.
- Potential:
- The Banca contract creates a profit cushion for the coming years
Vietinbank announced exclusive insurance distribution cooperation contract
with Manulife, the contract has a term of 16 years. This agreement includes
both Manulife will acquire Aviva Vietnam so CTG will not have to compensate
Aviva Vietnam when signing an exclusive contract with Manulife.
Vietinbank has not announced the value of the prepayment fee as well as the
time of recording. It is wishful calculate the value of the upfront fee at around 8
billion VNĐ and conservatively assume that the fee will be paid.
This period will be recorded steadily in 4 years (however, it is not excluded that
Vietinbank can do so recorded once in 2021). Vietinbank has not recognized
this prepaid fee in 2020 due to waiting for approval of Manulife agreement to
acquire Aviva Vietnam. Expected this agreement can be approved in the 1st
quarter in 2021, so Vietinbank can take credit prepaid fee of the Banca contract
right in the 1st quarter
- According to the representative of the bank, VietinBank has completed
the restructuring project under the supervision of the State Bank (SBV)
for the period of 2018-2020, which is the premise for profit growth in the
coming years when the cost of the provision is reduced
- On the other hand, the bank has implemented a new core-banking system
since 2018 with fast processing capabilities and convenient interfaces for
customers. In addition, VietinBank has launched many preferential
account packages for free transfer. This step is in line with the current
trend of the banking industry and will help VietinBank keep demand
deposits in the context of competition among banks.

- Devidends are distributed into both cash and stocks

The most prominent issue in VietinBank's plan is probably the plan to pay
dividends of over 12%, in which dividends in cash at the rate of 5% of charter
capital and the rest (after tax payment, appropriation funds and cash dividends)
is expected to be divided by shares.
- Risk:

- The epidemic of covid 19 is not stable, sometimes there is an outbreak out in

the Society. Although Vietnam has had experience in fighting epidemics, the
world is still affected by epidemics, especially Europe - the economic center of
the world. Therefore, if the financial and economic markets in the world
decrease, Vietnam will also be affected. Therefore, the current market is still
volatile, participating will always be risky.

- Banking market share is expanding day by day, many banks rise to

occupy large market such as TCB, BID, MBB, ... CTG may no longer
hold its No. 2 position in Vietnam's banking market.