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Gioi thieu ve Vietinbank_EN_ 31.03.2013
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Gioi thieu ve Vietinbank_EN_ 31.03.2013

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  • 1. VietinBank Overview June 2013
  • 2. 1. General information 3. Operating results (1Q 2013 update) 4. Strategic objectives 2013 Outline 2. Investment highlights
  • 3. • Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) is a leading financial and banking group, plays a key role in Vietnamese financial-banking system. • Established in 1988, upon its separation from the State Bank of Vietnam (SBV) • In 2008, VietinBank successfully completed its Initial Public Offering (IPO) and equitized into Joint stock corporation then listed in the Hochiminh Stock Exchange in 2009. • In 2009: officially renamed into Vietnam Joint Stock Commercial Bank for Industry and Trade. • In 2010: signed an investment cooperation agreement with International Financial Corporation (IFC) • In 2011: IFC officially became the foreign shareholder of VietinBank, with the possession of 10% of VietinBank chartered capital. • May 2012: First Bank in Vietnam to successfully issued USD250mil international bond and listed on Singapore Exchange • Dec 2012: Officially signed Subscription Agreement to sell 19,73% stake for Bank of Tokyo-Mitsubishi UFJ (BTMU) • May 2013: Complete strategic deal with BTMU VietinBank Overview
  • 4. Continue to expand business vertically and horizontally to increase market share1 Enhance service quality to ensure the efficiency in the context of well-managed risks2 Improve financial capability and transparency3 Strengthen corporate governance and risk management in line with international standard4 Accelerate modernization of the Bank5 Become the leading financial group and key player in Vietnam6 Maximize stakeholder’s value, employees and customers7 Vision Strives to become the leading financial group in Vietnam and highly rated bank in the international domain Corporate vision & strategic objectives Overall Strategic Objectives Motto Grow prudentially, efficiently and sustainably
  • 5. Supervisory Board General Shareholder Meeting Board of Directors CEO Internal Audit Internal Controllers Committees Risk Management Committee HR and Remuneration Committee Policy Committee ALCO Management Committee Secretariat to Board Management structure Technology Development Strategy Research Committee Information and Communication Division Functional Departments Main Operation Center and Branches Non-profit Making Units Representative offices Subsidiaries and Affiliates Deputy General Directors and Chief Accountant Transaction Offices
  • 6. 1. General information 3. Operating results (1Q 2013 update) 4. Strategic objectives 2013 Outline 2. Investment highlights
  • 7. Investment Highlights 1 Largest scale in Chartered capital and Total equity (after BTMU deal); 2rd largest bank in term of total assets (Agribank included). 3 4 2 5 Dominant market share: 3th largest bank in total outstanding loans (12.5%), mobilized fund (10.5%), remittance (15%), international payment (15%), leading position in number of POS & ATM card (23% total cards issued), international cards (9.5% total cards issued). The 2rd largest distribution network in Vietnam with nation-wide branches in all 63 provinces and 3 branches overseas. A strong brand name with a diversified client base (SOEs, non-SOEs, FDI companies, financial institutions, individuals...) Strong support from shareholders and strategic partners (IFC, BTMU) Experienced management team and effective human resources (80.6% of VietinBank’s employees holds bachelor degrees or higher) Outstanding operating results in 2012.7 6
  • 8. Large scale & dominant market share State-OwnedJSCBanksOtherJointStockCom Assets ($ bil) Assets ($ bil) Loans ($ bil) Loans ($ bil) Chartered Capital ($ bil)Chartered Capital ($ bil) Branches (units) Branches (units) 382 629 1,274 Note: data as of 31 March 2013, Exchange Rate: 1 USD = 21,000 VND
  • 9. • Nation-wide Network  01 Main Operation Center in Hanoi  1,274 Tier 2 Transaction offices, 157 Tier I branches and Saving offices  02 Joint-Venture Companies (Joint venture Bank of Indovina and VietinBank Aviva Life Insurance Company)  07 Subsidiaries  03 non-profit making units • Expand network to the world  Opened a branch in Frankfurt in September 2011 and Laos in February 2012, Berlin in May 2012.  Expanding network to England, France, Czech, Poland and South-east Asia nations. • Correspondent Relationships with nearly 1.000 financial institutions in the world Large branch network
  • 10. • Wholesale banking • Retail and SME banking: Brand, scale, branch coverage, IT system ↑ these new banking segments Diversified customer base
  • 11.  IFC, BTMU are among strategic foreign investors of CTG.  Support in: risk management technology investment banking retail and SMEs banking cash & settlement service. Support from strategic partners Shareholder structure
  • 12. 1. General information 3. Operating results (1Q 2013 update) 4. Strategic objectives 2013 Outline 2. Investment highlights
  • 13. Listed banks’ operating results 1Q 2013 (unit: VND bil) CTG BIDV VCB ACB STB EIB MBB SHB Average Total Assets 499,847 485,923 359,908 175,910 158,548 159,226 170,318 104,400 287,097 Chartered Capital 26,218 23,012 23,174 9,377 10,740 12,355 10,625 8,866 16,500 Balance Sheet Placements with and loans to other credit institutions 51,875 46,666 91,762 17,601 8,707 56,263 31,972 19,142 43,549 Loans to customers 324,626 344,893 208,214 107,140 98,476 74,945 73,660 54,894 175,994 Trading and investment securities 83,996 62,246 25,056 29,071 25,749 11,171 48,123 10,796 40,773 Long-term investment 2,942 4,322 2,857 1,414 241 2,390 1,528 431 2,242 Other assets 21,141 17,458 9,824 12,781 8,991 7,078 7,406 11,682 12,097 Liabilities Deposit and borrowings from other credit institutions 87,413 39,764 49,558 11,176 3,512 56,357 24,335 11,276 38,874 Deposits from customers 302,797 320,039 224,479 135,305 117,942 73,632 124,453 78,411 185,521 Grants, trusted funds 53,775 77,940 2,067 12,985 8,898 8,450 2,579 2,595 23,814 Total mobilized fund 444,246 446,707 285,249 159,467 130,353 138,454 151,367 92,282 250,835 Other liabilities 20,736 11,558 31,867 3,519 13,852 5,713 4,179 2,427 13,061 Capital and Reserves 34,647 27,658 41,644 12,924 14,343 15,059 14,102 9,688 22,911 Income statement Net interest income 4,646 3,124 3,300 1,232 1,811 810 1,564 428 2,355 Net profit from services 304 515 170 171 234 60 172 34 232 Other incomes 0.33 0.29 0.63 0.04 0.15 0.01 0.11 71 0 Total income 5,284 3,924 4,104 1,441 2,198 882 1,844 532 2,811 Operating expenses 2,567 1,602 1,419 844 1,098 493 616 456 1,234 Provision expenses for credit loses 1,346 807 950 202 207 0 397 -141 559 Profit before tax 1,370 1,515 1,735 395 893 389 831 218 1,018 Profit after tax 1,042 1,146 1,347 307 676 292 627 163 777
  • 14. Listed banks’ financial ratios 1Q 2013 Banking financial ratios CTG BIDV VCB ACB STB EIB MBB SHB Listed Bank Average Banking Average (2012) LDR 107.21% 107.77% 92.75% 79.18% 83.49% 101.78% 59.19% 70.01% 87.67% 89.50% LAR 64.95% 70.98% 57.85% 60.91% 62.11% 47.07% 43.25% 52.58% 57.46% 51.56% NIM 4.03% 2.77% 2.85% 3.76% 5.36% 2.84% 4.41% 1.77% 3.47% 4.09% Coverage ratio 89.66% 70.81% 99.76% 54.12% 72.54% 57.52% 95.44% 23.46% 70.41% Cost to Income Ratio 48.59% 40.83% 34.57% 58.59% 49.93% 55.88% 33.41% 85.64% 50.93% Cost of fund 10.99% 11.40% 8.64% 9.57% 11.19% 10.35% 8.33% 23.73% 11.77% NII/Total Income 87.93% 79.60% 80.40% 85.46% 82.38% 91.78% 84.78% 80.38% 84.09% NPL (annualized) 1.68% 2.76% 2.87% 2.88% 2.26% 1.33% 2.39% 8.66% 3.10% 4.09% ROA (annualized) 1.24% 0.87% 1.12% 0.20% 0.47% 0.98% 1.41% -0.31% 0.75% 0.15% ROE (annualized) 17.35% 15.49% 10.70% 3.09% 5.03% 10.75% 16.92% -3.75% 9.45% 4.10%
  • 15. Mobilized Fund structure (VND bn) Outer ring: As at 31/12/2011: 406.886 VND bn Inner ring: As at 31/12/2010: 318.805 VND bn 163,386 241,014 331,680 High Total deposits growth Deposits of customers & credit institutions (VND bn)
  • 16. Total loans and advances to customer (VND trn) High loan growth, sustainable LAR ratio Loan to Total assets ratio Loan Breakdown by Customer Type (March 31, 2013) Loan Breakdown by Industry (March 31, 2013)
  • 17. Group Q1.2013 2012 2011 2010 2009 Value (VND bn) % Value (VND bn) % Value (VND bn) % Value (VND bn) % Value (VND bn) % Group 1 Current 315,506 97.59 327,054 98.11 285,213 97.20 230,267 98.32 160,510 98.37 Group 2 Special mention 2,406 0.74 1,412 0.42 6,017 2.05 2,399 1.02 1,660 1.02 NPLs 5,369 1.66 4,890 1.47 2,203 0.74 1,539 0.66 1,000 0.61 Total 324,625 100 333,356 100 293,434 100 234,205 100 163,170 100 NPL ratio is well controlled
  • 18. Asset Quality Management Robust Credit Systems  VietinBank has in place robust credit systems, clearly defining relevant exposure limits and credit risk appetite  Such systems are enhanced by a strong credit culture, benefiting from well-defined delegations of authority and reporting lines Well Defined Sectoral, Single Party and Group Exposure Limits  Advances are relatively well diversified across business entities & Industrial sectors, ensuring a high degree of diversification of potential risks  The credit policy has put in place strict exposure limits Comprehensive Loan Classification and Provisioning Requirements  Comprehensive and detailed loan classification and provisioning requirements and policies are in place, consistent with regulatory norms and guidelines  Existence of robust procedures have resulted in positive developments in non-performing asset measures in recent times Strong Credit Risk Management System  Strong Credit risk management system is in place which has ensured improvement in the asset quality in this growing economic environment
  • 19. Securities portfolio Investment securities portfolio (VND bn) Investment securities portfolio (VND bn) Debt Securities breakdown (31/3/2013) Debt Securities breakdown (31/12/2012)
  • 20. High profitability Profit results (VND bn) Operating income breakdown ROAE and ROAA Net interest Income & Net interest Margin (VND bil) 22.99% 22.21% 26.74% 19.54% 17.35% 1.31% 1.50% 2.03% 1.41% 1.24% 2009 2010 2011 2012 1Q2013 ROAE ROAA 92% 92% 96% 81% 88% 3% 4% 2% 06% 6% 5% 4% 2% 14% 6% 2009 2010 2011 2012 1Q2013 Net interest income Fees and commission income Other operating income
  • 21. Cost to Income Ratio Total mobilized fund includes: (1) balance with government and central bank, (2) deposit and borrowing from other credit institutions, (3) deposits from customers, (4) financial funds, entrusted funds, (5) value paper issued, and (6) cash management for State Treasury Cost & Liquidity ratio Capital Adequacy Ratio Loan to Total mobilised fund ratio (*) – LDR adjusted
  • 22. Subsidiaries Total contributed capital (VND bn) Percentage of contribution (%) Charted capital as at 31/03/2012 (VND bn) Profit before tax as at 31/03/2012 (VND bn) VietinBank leasing Company Ltd 800 100% 800 29.4 VietinBank Securities Joint Stock company 597 75.61% 790 17 VietinBank Debt Management and Asset Exploitation Company Ltd 30 100% 30 0.36 VietinBank Insurance Company Ltd 500 100% 500 10.99 VietinBank Gold and Jewelry Trading company Ltd 300 100% 300 2.06 VietinBank Fund Management Company Ltd 950 100% 950 25.6 Global Money Transfer Company Ltd 50 100% 50 2.2 Contribution in subsidiaries
  • 23. Vietnam listed bank positioning Note: • The sizes of bubbles represent bank’s total assets • The colors of bubbles represent bank’s NPL ratio – Blue bubble: NPL less than 1% – Yellow bubble: 1%<NPL<2% – Red bubble: 2%<NPL<3% – Grey bubble: NPL > 3%
  • 24. 1. General information 3. Operating results (1Q 2013 update) 4. Strategic objectives 2013 Outline 2. Investment highlights
  • 25. Specific strategic objectives 2013 Strengthen capital base to enhance financial strength (CAR>=10%, ROE in the range of 15-18% and ROA in the range of 1.5-1.8%) Expand distribution network both domestically and internationally Improve service quality to increase the share of non-interest income Focus on Commercial Banking and Investment Banking pillars Expand market and client base and increase market share Achieve total assets growth 10% Chartered capital growth: 42% Total mobilized fund growth 8% Credit and investment growth 12% Dividend: 12% Enlarge the retail banking business Focus on risk management: maintain NPL ratio <= 3.0%
  • 26. Website for investors http://investor.vietinbank.vn
  • 27. For further information, please contact: Investor Relations Team Debt and Capital Market Department, VietinBank Address: 108 Tran Hung Dao street, Hanoi, Vietnam. Email: investor@vietinbank.vn Website: investor.vietinbank.vn Tel: 84-4-39.421030 ext: 08203