Gioi thieu ve Vietinbank_EN_ 31.03.2013

VietinBank Overview

June 2013

1. General information

3. Operating results (1Q 2013 update)

4. Strategic objectives 2013

Outline

2. Investment highlights

• 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

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

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 DepartmentsMain Operation Center

and BranchesNon-profit Making Units Representative offices

Subsidiaries and Affiliates

Deputy General Directors and Chief Accountant

Transaction Offices




Outline


Investment Highlights

1 Largest scale in Chartered capital and Total equity (after BTMU deal); 2rd largest bank in term of total assets (Agribank included).

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4

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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

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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

• 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

• Wholesale banking

• Retail and SME banking:

Brand, scale, branch coverage, IT system ↑ these new banking segments

Diversified customer base

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




Outline


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

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%

Mobilized Fund structure (VND bn)

Outer ring: As at 31/12/2011: 406.886 VND bnInner 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)

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)

Group Q1.2013 2012 2011 2010 2009

Value

(VND bn) %

Value

(VND bn) %

Value

(VND bn) %

Value

(VND bn) %

Value

(VND bn) %

Group 1

Current315,506 97.59 327,054 98.11 285,213 97.20 230,267 98.32 160,510 98.37

Group 2

Special mention2,406 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

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

Securities portfolio

Investment securities portfolio (VND bn) Investment securities portfolio (VND bn)

Debt Securities breakdown (31/3/2013) Debt Securities breakdown (31/12/2012)

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 1Q2013ROAE ROAA

92% 92% 96%81% 88%

3% 4% 2%

06%6%

5% 4% 2%14%

6%

2009 2010 2011 2012 1Q2013Net interest incomeFees and commission incomeOther operating income

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

SubsidiariesTotal 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

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%




Outline


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%

Website for investors http://investor.vietinbank.vn

For further information, please contact:

Investor Relations TeamDebt and Capital Market Department, VietinBank

Address: 108 Tran Hung Dao street, Hanoi, Vietnam. Email: [email protected] Website: investor.vietinbank.vnTel: 84-4-39.421030 ext: 08203

Gioi thieu ve Vietinbank_EN_ 31.03.2013

Economy & Finance

Transcript of Gioi thieu ve Vietinbank_EN_ 31.03.2013