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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
1. General information
3. Operating results (1Q 2013 update)
4. Strategic objectives 2013
Outline
2. Investment highlights
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
Large scale & dominant market shareS
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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
1. General information
3. Operating results (1Q 2013 update)
4. Strategic objectives 2013
Outline
2. Investment highlights
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%
1. General information
3. Operating results (1Q 2013 update)
4. Strategic objectives 2013
Outline
2. Investment highlights
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