IR Presentation
1H2016 – Reviewed figures(Exchange rate: 21,873 VND/USD)
Improving the values of life
Table of contents1. General information
2. Investment highlights
3. Performance
1. General information Important Milestones Corporate Vision & Strategic Objectives Organization Structure Awards
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.
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
Cơ cấu hoạt động vững mạnh
Head Office
VietinBank Laos Limited
Trade Finance Center Branches Representative Offices Non-profit Making
UnitsSubsidiarires and
Associated Companies
Transaction Offices
Indovina Joint Venture Bank
Saving Offices
Non financial SubsidiariresFinancial 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.
InsuranceOther Financial Services
Investment Bank
Commercial Bank
Solid management structure and governance
Supervisory Board
Board of Directors
Board of Management
Internal Audit
Committees:1. HR and Remuneration
Committee2. Assets and Liabilities
Management Committee3. Risk Management
Committee4. Policy Committee
Corporate Banking Division
Retail Banking Division
Treasury & Capital Markets Division
Risk Management
Division
General Shareholder s’ Meeting
Secretariat to the Board
Credit CommitteeFinancial Institutions Committee Payment Committee
Information Technology
Division
Other Departments Branches Subsidiarires
Human Resources
Division
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.
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
Strong abilities
23
4
56
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
Large scale
Assets (USD, Bil)
Equity (USD, Mil)
Chartered Capital (USD, Mil)
Networks(units)
Stat
e-ow
ned
cred
it in
stitu
tions
Join
t-sto
ck c
omm
erci
al b
anks
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 reviewedUpdated network data for VietinBank only
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
Global Reach Plan
1 Trade Finance Center in Ha Noi
151 branches,961 transaction
offices and savings counters
3Representative
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
Reputable & Diversified Corporate Customer
VietinBank has fostered strong banking relationships with some of the most well-established corporates in Vietnam
Structure of ownership
Major Shareholders’ stakes
Shareholder
VietnameseGovernment
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
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%
VietinBank vs. other banks – 1H2016
Unit: USD Million CTG BIDV VCB ACB STB EIB MBB SHB AverageTotal 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
VietinBank vs. other banks – 1H2016
ROA (Profit before tax/Total Assets)
ROE(Profit after tax/Total Equity)
CTG BIDV VCB ACB STB EIB MBB SHB
69.7%70.7%
62.9%
70.5%
63.8%
66.4%
59.2%
66.5%
CTG BIDV VCB ACB STB EIB MBB SHB
0.91%2.14% 1.75%
1.23%
2.84%
10.25%
1.33%2.22%
NPLs/Loan Ratio (%) Loans/Assets Ratio (LAR)
CTG BIDV VCB ACB STB EIB MBB SHB
1.05%
0.74%
1.26%
0.78%
0.24%0.13%
1.62%
0.50%
CTG BIDV VCB ACB STB EIB MBB SHB
11.81% 12.33%
14.63%
10.13%
2.73%
0.92%
12.62%
7.37%
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
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 MilOuter 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 SBVDeposits & borrowing from other banksCustomer DepositsSponsor capital, Entrusted InvestmentValue paper issuedOther mobilized funds
2010 2011 2012 2013 2014 2015 QI/2016
QII/2016
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
9,56612,050
13,568 17,15619,957
22,520 23,03326,351
1,4923,366
4,5723,796
4,8954,530 4,779
4,028
Deposit &borrowing from other banksCustomer Deposits
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 2010 2011 2012 2013 2014 2015 QI/2016
QII/2016
0%
2%
4%
6%
8%
10%
12%
14%
8.0%
10.6%10.3%
13.2%
10.4% 10.6%10.1%
10.7%
23.06%
5.55%
8.59%56.25%
6.55% SOEs
FDI
Other business entities
Individuals
Others
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)
2010 2011 2012 2013 2014 1Q2015 2Q2015
63.69% 63.71%
66.20%65.28%
66.53%
69.69% 70.08%
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
2010 2011 2012 2013 2014 2015 QI/2016 QII/2016
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/20160
5,000
10,000
15,000
20,000
25,000
30,000
11,01813,811
15,69017,711
20,704
24,581 25,31927,105
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 1Current 26,589 98.10 24,841 98.11 24,209 98.48 20,295 98.03 17,404 98.27
Group 2Special 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
2008 2009 2010 2011 2012 2013 2014 2015 QI/2016 QII/20160.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
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%
VietinBank Banking average
• 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
Safe & diversified securities portfolio
Components of Investment portfolioInvestment portfolio (USD, Mil)
2010 2011 2012 2013 2014 2015 QI/2016
QII/2016
0%
5%
10%
15%
20%
25%
30%
35%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
5,420
6,4336,332
7,539
8,3278,915
8,470
9,28331.1%
29.7%
26.7%
27.8%
26.8%
28.5%
23.4%
23.9%
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 2015Outer ring: As at 30 Jun 2016
Strong financial results
Profit results (USD, Mil)
Financial ratios
Operating Income Breakdown
Cost to income ratio
2010 2011 2012 2013 2014 2015 QI/2016 QII/20160
100
200
300
400
500
600
700
361
625590 559
527 549
176
333
164
296 295 273 270 261
88156
Profit before provisions for credit losses Profit after tax
2010 2011 2012 2013 2014 2015 QI/2016 QII/2016
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
0%
5%
10%
15%
20%
25%
30%
1.50%
2.03%1.70%
1.40%1.20%
1.02%1.22%
1.05%
22.10%
26.74%
19.90%
13.70%10.50% 10.29%
13.48% 11.81%
ROA ROE
2010 2011 2012 2013 2014 2015 QI/2016 QII/20160%
20%
40%
60%
80%
100%
82% 90% 84% 84% 84% 83% 83% 87%
10%5%
6% 7% 7% 6% 6%6%
9% 5% 10% 9%9% 11%
11%7%
Other operating income Fees and commission income Net interest income
2010 2011 2012 2013 2014 2015 QI/2016 QII/201636%
38%
40%
42%
44%
46%
48%
50%48.57%
40.57%
42.96%
45.49%46.72% 47.13%
40.76%
43.72%
Efficient subsidiaries
SubsidiariesTotal
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
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
31/12/2015 28/01/2016 02/03/2016 29/03/2016 26/04/2016 25/05/2016 21/06/201660%
80%
100%
120%Growth of VN-Index and Bank Stock - 1H2016
CTG VCB BID MBB STB ACBVNIndex
04/01/201629/01/201603/03/201630/03/201627/04/201626/05/201622/06/201614.5
15.0
15.5
16.0
16.5
17.0
17.5
18.0
18.5
19.0
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000CTG Stock Performance - 1H2016
Volumn (Thousands of share) CTG price
Thou
sand
s do
ng
Website for investorshttp://investor.vietinbank.vn
For further information, please contact:
Board of Director SecretariatsVietinBankAddress: 108 Tran Hung Dao street, Hanoi, Vietnam. Email: [email protected] Tel: 84-4-3 941 3622
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.
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