VietinBank Overview

March 2012

• Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) is a leading financial and banking group, plays an key role in Vietnam financial-banking system.

• Established in 1988, upon its separation from the State Bank of Vietnam (SBV)

• In 2008, VietinBank successfully undertook its Initial Public Offering (IPO) and equitized into Joint stock corporation and listed in the Hochiminh Stock Exchange

• 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.

• Second largest in Vietnam banking system in term of net work and total assets

VietinBank Overview

Major Shareholders’ stakes

80%

3%

7%

10%

State Bank of VietNam IFC

IFC Capitalization Fund Others

Major shareholders’ supports

Government

• VietinBank is currently 80% owned by the Government. Government’s share holding will not fall below 51% at any time.

• The majority of Board of Director’s members are appointed by Government.

• VietinBank is regularly supported by Government.

IFC

Conducting technical assistants to VietinBank in:

• Risk Management

• SME services

• Energy saving efficiency

• Information technology

• Standardization of other services.

Structure of ownership

Supervisory Board

General Shareholder Meeting

Board of Directors

CEO

Internal AuditInternal

Controllers

Committees

Risk Management Committee

HR and Remuneration Committee

Policy Committee

ALCO Management Committee

Secretariat to Board

Resonable Management structure

Technology Development Strategy Research Committee

Information and Communication Commitee

Departments of Head Office

Main Operation Center and Branches

Non-profit Making Units Representative offices

Subsidiaries and Affiliates

Deputy General Directors and Chief

Accountant

Transaction Offices

• Nation-wide Network– 01 Main Operation Center in Ha Noi– 1.093 branches, Transaction offices and Saving offices– 02 Representative offices in Da Nang and Ho Chi Minh

City– 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.– Plans to open branches in Berlin in 1st quarter of 2011– Plans to expand network to England, France, Czech,

Poland and South-east Asia nations in 2012.

• Correspondent Banking Relationships with nearly 1.000 financial institutions in the world

Second largest Branch network in Vietnam

VietinBank’s strength

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 value7

Mission

Strives to become the leading financial group in Vietnam and highly rated bank in the international domain with motto: Safety – Efficiency – Modern – Sustainable growth, focusing on Commercial banking, Investment banking and others.

Corporate missionand strategic objectives

Overall Strategic Objectives

Strategic focus and growth areas

Short to medium term strategies

Tailor-made products and services to meet customers’ need and provide all financial services under one roof

Rationalize operations and increase co-operation between departments to maximize cross selling opportunities and improve efficiency

Standardize policies and procedures in each department

Improve labor efficiency through specialization and rendering appropriate training and development

Develop non-banking products and services to increase share of non-interest income to total income.

Restructure assets and liabilities to ensures sustainable development

Human resources development

Long term strategies

Position the bank as a strong universal bank, providing a full spectrum of banking services

Diversify shareholding with the best capital structure through selecting suitable foreign strategic partners

Leverage shareholders’ strength and resources to further develop the Bank

Accomplish the optimal group structure and optimize the internal resources to ensure business efficiency and sustainable development

Improve the quality of the human resources

Establish a strong and advanced IT platform

Collectively develop the organization structure, internal policies, technology and infrastructure to facilitate the business expansion

Specific strategic objectives

Expand market and client base and increase market share

Achieve total assets growth 20%-25%/year

Improve service quality to increase the share of non-interest income

Broaden customer and product base

Enlarge the retail banking business

Focus on risk management: maintain NPL ratio <= 3.0%

Strengthen capital base to enhance financial strength (CAR>=10%, ROE in the range of 20-25% and ROA in the range of 1.5-2.0%)

Expand distribution network both domestically and internationally

Build up strong supporting infrastructure

Enhance marketing and PR

Improve social responsibilities and community services

Steadily-growing ratioswith high profitability

Assets and Loan Growth Net interest Income and Net interest Margin

VND billion VND billion

Cost to Income Ratio Operating Expenses BreakdownVND billion

Well managed- operating cost

Strong growth of Profit ROAA & ROAE

VND Billion

Strong overall profitability

SubsidiariesTotal contributed

capital(VND bil)

Percentage of contribution

(%)

Charted capital

(VND bil)

VietinBank leasing Company Ltd 500 100% 500

VietinBank Securities Joint Stock company

500 75.61% 790

VietinBank Debt Management and Asset Exploitation Company Ltd

30 100% 30

VietinBank Insurance Company Ltd 300 100% 300

VietinBank Gold and Jewelry Trading company Ltd

300 100% 300

VietinBank Fund Management Company Ltd

500 100% 500

Global Money Transfer Company Ltd 50 100% 50

Contribution in subsidiaries

• The best quality asset in Vietnam banking system

• VietiBank has a healthy credit systems, utilising appropriately credit limits and relevant credit risk appetite

• Such systems are enhanced by a strong credit culture, benefiting from well-defined delegations of authority and reporting channels

• Credits are well diversified with respect to groups of customer and sectors, ensuring the good diversification of potential risks.

• Comprehensive and detailed loans classification and provisioning requirements and policies are applying, consistent with regulatory norms and guidelines.

• Existence of robust procedures have resulted in positive developments in non-performing loans in recent times.

• Strong credit risk management system is used to ensure improvement in the asset quality in this growing economics environment.

Asset Quality Overview

Group 2011 2010 2009 2008

Value

(VND bn)

%Value

(VND bn) %

Value

(VND bn)

%Value

(VND bn) %

Group 1

Current285,213 97.20 230,267 98.32 160,510 98.37 114,596 94.90

Group 2

Special mention6,017 2.05 2,399 1.02 1,660 1.02 3,968 3.29

Group 3

Substandard1,071 0.36 925 0.39 230 0.14 847 0.70

Group 4

Doubtful220 0.07 411 0.18 333 0.20 803 0.67

Group 5

Loss912 0.31 203 0.09 437 0.27 537 0.44

Total 293,434

100.00 234,205 100.00163,17

0100.0

0120,751 100.00

NPL ratio is well controlled

NPL ratio much lower than the industry average

Deposit structure (VND bn)

Outer ring: As at 31/12/2011: 406.886 VND bnInner ring: As at 31/12/2010: 318.805 VND bn VND bn

130,458

163,386

241,014

117,686

240,049

Stable deposits growth

Deposits of customers & credit institutions (VND bn)

CEO

Board of Directors

Risk Management Group

• Credit & Investment Risks Management

Department

• Credit & Investment Policy Department

• Market & Operational Risks Management

Department

• NPLs Management Department

Committees

Risk

Management

Committee

ALCO

Management

Committee

Risk Management Structure

Credit Risk Policy

• Balanced growth of credit portfolio• Forward looking and market responsive approach• Moving to new profitable areas of lending with predetermined exposure ceiling• Ensuing compliance of regulatory norms• Deployment of credit across various sectors and geography• Using pricing as a tool of competitive advantage while protecting earnings

• The overriding objective in credit policy is to achieve a healthy balance

between – Credit volumes – Earnings and – Asset quality

Credit Philosophy

Credit Objectives

Underlying

Principals

To achieve credit expansion required for sustaining the profitability of the Bank with an emphasis on quality assets, profitable

relationships and prudent growth

Credit Risk Management

Setting limits on the amount of risk it is willing to accept for individual counterparties, geographical and industry concentrations. Monitoring exposures in relation to such limits

Established a credit quality review process to provide early identification of possible changes in the financial position as well as debts repayment ability of counterparties

Counterparty limits are established by the use of a credit risk classification system, which assigns each counterparty a risk rating

Risk ratings are subject to regular revision

Interest Rate Risk Management Process

• Using GAP analysis of rate sensitive assets and liabilities and monitored through its prescribed prudential limits

• Investment activities: The Bank forecasts fluctuation of market interest rate and makes appropriate investment decisions

• Fund mobilization and utilization: interest rate for fund mobilization is determined under market price principles, in which interest rate is subject to demand, fund mobilization scale and market interest rate movements

• Lending activities: determine lending interest rate based on the cost of funds, management expense plus targeted profit margin.

• Building and applying inspection and monitoring regulations

Interest Rate Risk

Currency Risk Management Process

• Applying limitation system to mange currency positions on a daily basis. Risk prevention strategy is to keep the currency positions in the established limitation.

• Alco Planning and Supporting Department analyses and projects cash-in and cash-out flow for each type of currency (mainly VND, USD and EUR equivalent) based on actual cash flows and growth target registered by business units. It is managed based on daily outstanding balance in accordance with guidance to ensure the safety and effectiveness of the whole system.

• Restricts lending in importing goods that can be domestically produced and establishes preference for lending to import essential.

• Ensure to have enough forex funding lines with International financial institutions

Currency Risks

Liquidity Risk Management Process

• The Bank diversifies its funding sources in addition to its core deposit base to reduce liquidity risks.

• Flexible policy in managing liquid assets and monitoring future cash flows and liquidity on a daily basis. The Bank also assesses expected cash flows and the availability of collaterals in case the Bank needs to mobilize more capital.

• Alco Dept. analyses and projects flows of cash-in/cash-out in accordance with approved plan; and provides decisions on available fund management based on movement of the Bank’s capital and its daily utilization

• Investment Department creates the Bank’s liquidity buffer through purchasing highly liquid valuable papers. Besides, Investment Department also establishes credit limit with other banks for mutual assistance when needed.

• By the centralized settlement scheme at the Head office, VietinBank is always active in the daily liquidity management.

• The Bank is currently setting up software, developing upgrades and finalizing the risk management process to catch up with the international standards.

Liquidity Risks

For further information, please contact:

Investor Relations - Investment Department, VietinBank

Address: 108 Tran Hung Dao street, Hanoi, Vietnam. Email: investor@vietinbank.vn Website: investor.vietinbank.vnTel: 84-4-39.421030 ext: 08203