3. 1. General information
Important Milestones
Corporate Vision & Strategic Objectives
Organization Structure
Awards
4. VietinBank Overview
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.
1988
Established upon the separation from The State Bank of
Vietnam (SBV).
2008
Went public through IPO and listed on Hochiminh Stock
Exchange (HOSE) one year later
2009
Officially renamed into Vietnam Joint Stock Commercial
Bank for Industry and Trade (or VietinBank in short)
2011
IFC officially became the foreign strategic shareholder of
VietinBank with 10% stake ownership
2012
Became the first bank in Vietnam to successfully issue
USD250mil international bond listed on Singapore
Exchange
Sold 19.73% stake to Bank of Tokyo-Mitsubishi UFJ
(BTMU) as a second foreign strategic shareholder.
5. Corporate Vision & Strategic Objectives
Continue to complete the organizational structure vertically, increase business network1
Improve service quality2
Enhance risk management capabilities in line with international practice, apply Basel II standards3
Strengthen corporate governance, efficient governance in accordance with international practice4
Accelerate the modernization of the Bank’s IT system5
Create added value for stakeholders, employees and customers6
Vision Striving to become the leading financial group in Vietnam and high ranking
bank in the international market
Strategic Objectives
Motto Growing prudentially, efficiently and sustainably
6. Cơ cấu hoạt động vững mạnh
Head Office
VietinBank
Laos Limited
Trade Finance
Center
Branches Representative Offices
Non-profit Making
Units
Subsidiarires and
Associated Companies
Transaction Offices
Indovina Joint
Venture Bank
Saving Offices
Non financial Subsidiarires
Financial Subsidiarires and
Associated Companies
VietinBank
Securities JSC
VietinBank
Fund
Management
Company Ltd.
VietinBank
Leasing
Company Ltd.
VietinBank
Global Money
Transfer
Company Ltd.
VietinBank
Insurance
Company Ltd.
VietinBank
Aviva Life
Insurance
Company Ltd.
VietinBank Gold
and Jewelry
Trading
company Ltd .
VietinBank Debt
and Asset
Management
Company Ltd.
Insurance
Other Financial
Services
Investment
Bank
Commercial
Bank
7. Solid management structure and governance
Supervisory Board
Board of Directors
Board of Management
Internal Audit
Committees:
1. HR and Remuneration
Committee
2. Assets and Liabilities
Management Committee
3. Risk Management Committee
4. Policy Committee
Corporate
Banking
Division
Retail
Banking
Division
Treasury
& Capital
Markets
Division
Risk
Management
Division
General Shareholder s’ Meeting
Secretariat to the Board
Credit Committee
Financial Institutions Committee Payment Committee
Information
Technology
Division
Other
Departments
Branches Subsidiarires
Human
Resources
Division
8. Awards and accolades 2015
VietinBank was named in Forbes Global
2000 for the fourth consecutive years.
VietinBank was recognized as one of
two Vietnamese banks in Global 500 by
Brand Finance and the number 1 brand
in Vietnam with total brand value worth
of USD 197 million, with “A” rating.
VietinBank is the only corporation in
financial & banking industry that was
named in Top 10 of Vietnam Gold Star
Award.
VietinBank was named in Top 10 Most
Valuable Brands for the eleven
consecutive years.
Our strength in technology
advancement was honoured by Khue
Star Award for three innovative products
including Assets & Liabilities
Management System, VietinBank iPay
app for smartphones and non-cash
payment service for hospital bills.
VietinBank at the 5th place of Top 10
Vietnam Corporations of largest Income
Tax Contribution. At the same time,
VietinBank is the leading bank among 9
banks that was named in Top 50
Corporations of Highest Income Tax
Contribution.
VietinBank is the only bank that was
recognized as “Best Information
Security Bank in 2015”.
Top 3 payment award by Visa in 2015
and Top 3 highest transactions of
MasterCard in 2014 - 2015.
Top 50 Vietnam Best Growth for 2009 -
2014 period and Top 20 of 500 Largest
Companies (VNR500) which was
presented by Vietnam Report.
The 3rd time that VietinBank has been
recognized as the active bank of social
welfare by Ministry of Planning and
Investment, improving lives of people
and economic growth.
9. 2. Investment highlights
Chartered Capital, Total Equity and Total Asset
Market Share
Network
Brand name & Client base
Shareholder support
Corporate governance and HR
Operating results vs. other listed banks
10. Strong
abilities
2
3
4
5
6
7
8
1
Top financial institution in Vietnam with
dominant market share:
• Loans (12.7%)
• Mobilized fund (10.3%)
• Investment Banking (16.5%)
• Remittance (15%)
• International payment & Trade Finance (12.6%)
• Leading position in cards services (22%)
Outstanding business
performance in QII.2016
World-wide and Nation-wide
network
Largest scale in Charter Capital
and Total Equity
Experienced management
team and effective human
resources
A strong brand name with a
diversified client base
Strong shareholder support
Solid infrastructure with modern
technology system
Investment Highlights
11. Large scale
Assets
(USD, Bil)
Equity
(USD, Mil)
Chartered Capital
(USD, Mil)
Networks
(units)
State-ownedcreditinstitutionsJoint-stockcommercialbanks
10
11
6
14
10
31
43
39
537
1,126
605
1,039
612
2,221
2,031
2,721
434
746
565
862
429
1,218
1,563
1,702
408
318
417
346
328
725
1,113
Note: Data as of 30/06/2016, only VietinBank & Vietcombank’s figures are reviewed
Updated network data for VietinBank only
12. Network Overview
Presence across the nation:
• 01 Head Office in Hanoi
• 01 Trade Finance Center in Hanoi
• 149 Local branches, 961 transaction offices and
savings offices in all cities and provinces
• 02 Representative offices in Da Nang and Ho Chi
Minh City
• 03 Functional units
• 07 Subsidiaries (insurance, securities, financial
leasing, fund management, assets management, gold
and jewelry, global money transfer)
• 02 Joint-venture companies (Indovina Bank &
VietinBank Aviva Insurance Company)
• Nearly 2000 ATMs
Foreign expansion:
• 01 Branch in Frankfurt, Germany
• 01 Branch in Berlin, Germany
• 01 Subsidiary in Laos (VietinBank Lao Ltd)
• 01 Representative office in Myanmar
VietinBank has established banking relationships
with 1000 banks in 90 countries and territories all
over the world
1 Trade Finance
Center in Ha Noi
151 branches,
961 transaction
offices and
savings counters
3 Representative
offices
2 Joint-Venture
Companies
8 Subsidiaries
3 non-profit
making units
North
71 Branches +
01 Trade Finance
Center
Central
27 Branches
South
51 Branches
13. Global Reach Plan
1 Trade Finance
Center in Ha Noi
151 branches,
961 transaction
offices and savings
counters
3
Representative
offices
2 Joint-Venture
Companies
8 Subsidiaries
3 non-profit making
units
Our current position We are also proud of
having correspondences
with more than 1,000
banks in 90 countries
Opened branches:
Frankfurt: Sep 2011
Laos : Feb 2012
Berlin : May 2012
Open representative
office in Myanmar in 2013
Upgrading VietinBank
Laos Branch into
VietinBank Lao Ltd.,: Aug
2015
For the period from 2016-
2017:
Upgrading Pakse Transaction
Office in to Branch
Establishing new Transaction
Office in Vienchan and other
povinces
14. Reputable & Diversified Corporate Customer
VietinBank has fostered strong banking relationships with some of the most well-
established corporates in Vietnam
15. Structure of ownership
Major Shareholders’ stakes
Shareholder
Vietnamese
Government
IFC
BTMU
Support
Government owns 64.46% of VietinBank’s
Charter Capital. Government ownership ratio will
not fall below 51% at any time.
The majority of Board of Director’s members are
appointed by the Government.
Cooperation Agreement with IFC covers:
Risk management
Banking services for SMEs
Energy Efficiency Project
Information technology
Technical Assistance & Business Collaboration
Agreement with BTMU covers:
Risk management & Basel II Implementation
Information technology
Investment banking
Retail and SMEs banking
Cash collection and settlement service
64.46%8.03%
19.73%
7.78%
State Bank of Vietnam
IFC
BTMU
Others
Major shareholders’ supports
16. 2016’s strategic objectives
Strengthen capital base to enhance
financial strength (CAR>9%, ROE in
the range of 10-11% and ROA in the
range of 0.9-1.2%)
Focus on Commercial Banking
and Investment Banking pillars
Enlarge the retail banking
business
Improve service quality to increase
the portion of non-interest income
Focus on risk management: NPL
ratio/total credit exposure <3.0%
Expand market and client base to
increase market share.
Expand distribution network both
domestically and internationally
Dividend: 7-9%
Continues to consolidate
organizational structure and
operating model
Growth:
Assets: 14%
Mobilized fund: 14%
Credit: 18%
17. VietinBank vs. other banks – 1H2016
Unit: USD Million CTG BIDV VCB ACB STB EIB MBB SHB Average
Total Assets 38,870 42,530 31,043 10,142 14,281 5,563 10,932 9,693 20,382
Chartered capital 1,702 1,563 1,218 429 862 565 746 434 940
Balance sheet
Placements with and loans to other banks 3,738 2,949 4,562 439 156 272 1,306 1,213 1,829
Loans and advances to customers 27,105 30,066 19,532 7,145 9,105 3,696 6,471 6,444 13,695
Trading and investment securities 5,277 6,795 5,235 1,876 2,030 939 2,413 891 3,179
- Trading securities 78 511 402 44 59 0 20 2 140
- Investment securities 5,199 6,284 4,833 1,832 1,971 939 2,393 888 3,040
Long-term investments 149 203 164 9 14 85 58 13 87
Other assets 1,321 991 431 352 2,030 117 428 809 810
Liabilities
Deposits and borrowings from other banks 4,028 3,508 2,262 384 156 134 705 1,266 1,555
Customer deposits 26,351 31,653 24,489 8,709 12,801 4,605 8,709 7,281 15,575
Financing funds, entrusted funds 1,211 835 0 8 63 0 14 34 271
Other liabilities 3,410 896 510 168 221 79 275 144 713
Owner's equity and Funds 2,721 2,031 2,221 612 1,039 605 1,126 537 1,361
Income statement (accummulated)
Net interest and similar income 515 472 419 150 126 76 166 76 250
Net profit from services 37 53 48 19 30 6 13 4 26
Other income 40 97 94 (12) 19 6 16 3 33
Total income 592 623 561 157 175 89 194 83 309
Operating expenses 259 264 228 103 125 55 83 48 146
Provision for credit losses 138 207 137 17 33 30 27 11 75
Profit before tax 195 151 196 38 17 4 85 24 89
Profit after tax 156 122 157 30 14 3 69 19 71
Note: Only VietinBank & Vietcombank ‘s figures are reviewed
19. 3. Performance
Stable deposits growth & high liquidity
High credit growth, well controlled NPL ratio
Safe & diversified securities portfolio
Strong financial results
Efficient subsidiaries
CTG Stock Performance
20. Stable deposits growth
Mobilized Fund structure (USD, Mil) Deposits of customers & credit
institutions (USD, Mil)
Inner ring: As at 31 Dec 2015: USD 32,542 Mil
Outer ring: As at 30 Jun 2016: USD 35,541 Mil
0.35%
13%
66%
7%
2%
2%
0.60%
11%
74%
3%
3% 8%
Due to Gov and SBV
Deposits & borrowing from other banks
Customer Deposits
Sponsor capital, Entrusted Investment
Value paper issued
Other mobilized funds
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
9,566
12,050
13,568 17,156
19,957
22,520
23,033
26,351
1,492
3,366
4,572
3,796
4,895
4,530
4,779
4,028
Deposit &borrowing from other banks
Customer Deposits
21. High liquidity
Customer Deposit Breakdown by
Type of business (31/12/2015)
Customer Deposit Breakdown by
by Tenor (30/06/2016)
CAR ratio
15.12%
81.68%
0.74%
2.46% Demand deposits
Term deposits
Deposits for specific
purpose
Margin deposit
8.0%
10.6%
10.3%
13.2%
10.4% 10.6%
10.1%
10.7%
0%
2%
4%
6%
8%
10%
12%
14%
23.06%
5.55%
8.59%56.25%
6.55%
SOEs
FDI
Other business entities
Individuals
Others
22. High credit growth, sustainable LAR ratio
Total loans and advances to customer (USD, Mil)
Loan Breakdown by Type of business (31/12/2015)
Loan to Total assets ratio
Loan Breakdown by Tenor (30/06/2016)
63.69%
63.71%
66.20%
65.28%
66.53%
69.69% 70.08%
2010 2011 2012 2013 2014 1Q2015 2Q2015
55.35%
11.27%
33.38%
Short term
Medium term
Long term
24.92%
5.07%
48.45%
20.85%
0.72%
SOEs
FDI
Other business entities
Individuals
Others
63.69%
63.71%
66.20%
65.28%
66.53%
69.03%
69.90%
69.73%
2010 2011 2012 2013 2014 2015 QI/2016 QII/2016
11,018
13,811
15,690
17,711
20,704
24,581 25,319
27,105
0
5,000
10,000
15,000
20,000
25,000
30,000
2010 2011 2012 2013 2014 2015 QI/2016 QII/2016
23. NPL ratio is well controlled
Group
QII/2016 QI/2016 2015 2014 2013
Value
(USD, mil) % Value
(USD, mil) % Value
(USD, mil) % Value
(USD, mil) % Value
(USD, mil) %
Group 1
Current 26,589 98.10 24,841 98.11 24,209 98.48 20,295 98.03 17,404 98.27
Group 2
Special mention 271 1.00 235 0.93 147 0.60 177 0.86 129 0.73
NPLs 245 0.91 243 0.96 226 0.92 231 1.12 177 1.00
Total 27,105 100 25,319 100 24,581 100 20,704 100 17,711 100
1.81% 0.61% 0.66% 0.75%
1.47%
1.00% 1.12% 0.92% 0.96% 0.91%
2.10%
2.50% 2.40%
3.47%
4.09%
3.79%
3.25%
2.50% 2.62% 2.58%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
2008 2009 2010 2011 2012 2013 2014 2015 QI/2016 QII/2016
VietinBank Banking average
24. • VietinBank has a 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
Robust Credit Systems
• Loans and advances are relatively well allocated according to
business entities & industry sectors, ensuring a high degree of
diversification of potential risks
• The credit policy has put in place strict exposure credit limits
Well Defined Sectoral,
Single Party and Group
Exposure Credit Limits
• Comprehensive and detailed loan classification and provisioning
requirements and policies are in place, in consistent with regulatory
norms and guidelines
• Existence of robust procedures have resulted in positive
developments in non-performing asset measures in recent times
Comprehensive Loan
Classification and
Provisioning Requirements
• Strong Credit risk management system is in place which has
ensured improvement in the asset quality in this growing economic
environment
Strong Credit Risk
Management System
Asset Quality Management
25. Safe & diversified securities portfolio
Components of Investment portfolioInvestment portfolio
(USD, Mil)
5,420
6,433
6,332
7,539
8,327
8,915
8,470
9,283
31.1%
29.7%
26.7%
27.8%
26.8%
28.5%
23.4%
23.9%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
0%
5%
10%
15%
20%
25%
30%
35%
Total investment Investment to total asset ratio
34%
64%
0.23%
2%
40%
58%
0.47%
2%
Interbank Debt securities
Equity securities Long-term investments
Inner ring: As at 31 Dec 2015
Outer ring: As at 30 Jun 2016
27. Efficient subsidiaries
Subsidiaries
Total
contributed
capital
(USD, mil)
Percentage of
contribution
(%)
Charted capital
as at 30.06.2016
(USD, mil)
Profit before tax
as at 30.06.2016
(USD, mil)
VietinBank Lao Limited(*) 50.00 100% 50.00 1.83
VietinBank Leasing Company
Ltd 45.71 100% 45.68 2.67
VietinBank Fund Management
Company Ltd 43.43 100% 43.4 1.20
VietinBank Securities Joint
Stock Company 27.29 75,61% 38.25 1.60
VietinBank Insurance Company
Ltd 22.86 100% 22.84 1.55
VietinBank Gold and Jewelry
Trading Company Ltd 13.71 100% 13.7 0.43
VietinBank Debt Management
and Asset Exploitation Company
Ltd
5.49 100% 5.48 0.03
Global Money Transfer Company
Ltd 2.29 100% 2.28 0.24
28. CTG Stock Performance – 1H2016
Value
The closing price on
04th Jan 2016
18,300 VND/share
The closing price on
30th June 2016
16,800 VND/share
The highest prices in
1H2016
16,000 – 18,400 VND/share
Volume 110,391,281 share
Trading value 1,950,668 Billion VND
The trading volume
of foreign investors
Net sales 11,341,280 share
Foreign owned
1,110,700,827 share
(29.83%)
Current room of
foreign investors
6,320,540 share
(0.17%)
EPS 1,834 VND/share
P/E (30th June 2015) 9,16x
BVPS 14,845 VND/share
P/B (30th June 2015) 1.13x
60%
80%
100%
120%
Growth of VN-Index and Bank Stock - 1H2016
CTG VCB BID MBB
STB ACB VNIndex
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
14.5
15.0
15.5
16.0
16.5
17.0
17.5
18.0
18.5
19.0
Thousandsdong
CTG Stock Performance - 1H2016
Volumn (Thousands of share) CTG price
29. Website for investors
http://investor.vietinbank.vn
For further information, please contact:
Board of Director Secretariats
VietinBank
Address: 108 Tran Hung Dao street, Hanoi, Vietnam.
Email: investor@vietinbank.vn
Tel: 84-4-3 941 3622
30. Thank you!
Disclaimer :
This presentation is prepared by using financial reports and other reliable sources with the aims to provide
information only. Readers should use this presentation as a reference source. The information might be
updated from time to time and we have no responsibility to notify about that change.
Editor's Notes
3. ROE is the one of the most important indexes for investors. Although the ROE is explained as a part of the Strategic Objectives, it’s better to show it independently in detail. The equity management policy should also be explained more using some slides if possible.