32
SOLID FOUNDATION FOR FUTURE VALUE February 2021
SOLID FOUNDATION FOR FUTURE VALUE
February 2021
Contents
2
SECTION 1 – VIETNAM MACRO ECONOMY
• Macroeconomic Highlights ……………….…………………………….….... p.3
• Banking Industry Review ……………………….………………………….... p.6
SECTION 2 – BIDV OVERVIEW
• BIDV Profile ……………………………………………………………......... p.9
• BIDV Performance in 2016 – 2020 ……..………………………………. p.19
SECTION 3 – SHARE OFFERING PLAN TO FOREIGN INVESTORS
• Overall Plan ………………………………………………………………… p.30
VIETNAM MACRO ECONOMY1
Macroeconomic Highlights
4
Macroeconomic Environment
Source: GSO
Source: GSO
Source: GSO, Bloomberg
Vietnam was among the highest GDP growth economies in 2020
Source: GSO
Inflation remained stable
Industrial production recovered rapidly Domestic consumption showed V-shaped recovery
5
Macroeconomic Environment
Source: GSO
Trade surplus recorded highest level in five years Total FDI attraction remained at high level
Public investment in 2020 at highest rate in last 10 years VN-Index become one of the best growth markets in Asia
Source: GSO
Source: Bloomberg
Source: GSO
VIETNAM MACRO ECONOMY1
Banking Industry Review
7
Sharp monetary easing policy implemented
Source: SBV
SBV reduced policy rates three times in 2020 Exchange rate remained stable
Deposit rates Lending rates
Source: Bloomberg
Source: SBV
Source: SBV
Banking industry8
2012 2020
42%
42%
33%
50%
40%
52%
46%
33%44%
41%
Market share
Source: SBV
Source: SBV Source: SBV
Lower credit growth Liquidity of the banking system remained plentiful
16% 12% 11%
29%15%
41%40% 42%
47%
45%
43% 48% 48%
24%
40%
State-owned Commercial Banks Joint Stock Commercial Banks Other
Total Assets Lending Deposits Charter Captial Profit after Tax
BIDV OVERVIEW2
BIDV Profile
Differentiating BIDV
BIDVPayment system Network
Customer base Financial Capacity
Credit Rating Information Technology
# 1 by Total Assets
# 1 by Charter Capital
# 2 by National Network Coverage
(190 Branches, 906 Transaction Offices, over
1,900 ATMs and 33,000 POS)
# 1 by Customer Loans
# 1 by Customer Deposits
• Settlement bank for Vietnam stock market
• The only settlement bank for domestic transactions
of Master Card in Vietnam
• The Vietnam Domestic Technology and
Operations Bank of the Year awarded by
Asian Banking & Finance (ABF)
• Ranking first for Readiness for IT
application to business for 10 years
A leading bank in Vietnam market10
Moody’s
(June 2020)
Rating Ba3/b1
Outlook Negative
Milestones
1957
Established as
Vietnam Construction Bank
1990
Name changed to
Bank for Investment and
Development of Vietnam
1995
Began operating as a
commercial bank
Charter capital: VND 1,100 bn
Charter capital raised to
VND 4,077 bn
2006
1981
Name changed to
Bank for Investment and
Construction of Vietnam
2008
Charter capital raised to
VND 8,756 bn
2009
Charter capital raised to
VND 10,498 bn
2010
Charter capital raised to
VND 14,600 bn
2011
IPO
2012
2013
Charter capital raised
to VND 28,112 bn
Converted to BIDV JSC
Charter Capital: VND 23,012 bn
Listed on HSX
2014
MHB merger
2015
Charter capital raised to
VND 34,187 bn
2019
63 years of steady growth11
Shareholding Structure (30 September 2020)
1st bank in VN to be audited by
international auditors
(both VAS and IFRS)
1st bank in VN to receive ISO
9001:2000 Certificate
1st bank in VN to be rated by
Moody’s
Organizational Structure Transformation under Technical
Assistance 2 Project funded by The World Bank
Rated by S&P
1996 2001 2006 2008 2010 2020
Basel II complied
The Pioneer Bank in applying International Practice and Information Transparency
Strategic
Investment 15%
by KEB Hana
80.99%
15.00%
2.50%
1.51%State
KEB Hana
Other Foreigners
Others
Mission, Vision & Core Value
Mission
Vision
• Best services for customers
• Best value to shareholders
• Professional working environment for employees
• Pioneer in community development activities
Being a leading financial institutions in Southeast Asia
with the best digital platform in Vietnam, striving to be in
Top 100 largest banks in Asia.
Commit ted to del ivering the best value12
cCore
values
Customer
OrientationInnovation
Quality and
Trustworthiness
Social
Responsibility
2021 – 2025 Strategy
13
Scale
Asset Quality
Profitability
•Total Assets: 9 - 13% pa
•Lending: 8.5-12.5% pa.
•Deposits: 10.5-15% pa.
•NPL: ≤ 1.6%
•ROA: 0.8%-1%
•ROE: 12.5%-14%
1
• Sound financial capacity as a basis for growingoperational scale, increasing market share andmaintaining a leading position in the banking market
2
• Sustainable performance, improving the quality ofassets, increasing the proportion of non-interest income.providing the best banking - finance - insuranceproducts and services to customers.
3
• Customer structure has shifted positively, becoming theleading bank in Vietnam in terms of market share in thesegment of retail & SMEs.
4• Managing and operating transparently, effectively as
international practices.
5• As a leading bank in information technology and digital
banking applications in Vietnam.
6
• High quality human resources ensure in the trend ofintegration and technology 4.0; Professional, modern,learning and creative working environment.
Organization Chart
14
ORGANIZATIONAL STRUCTUREAs at December 31 2020
GOVERNANCE CHARTAs at December 31 2020
Diversified Business
189 Domestic Branches
01 Oversea Branch
906 Transaction Offices
1,900 ATMs
33,000 POS
Internet Banking
Mobile Banking
Extensive Domestic Network Coverage for both Traditional and Modern
Distribution Channels*
International Expansion
• RMA with 1,100 banks and 50 Nostro accounts with large banks all
over the world
• Joint-ventures with international partners Russia, Singapore,
Malaysia, Cambodia, Laos
• Representative Offices in Cambodia, Laos, Myanmar, Russia, Taiwan
• Branch in Myanmar
* As of 30 June 2020
15
16
BIDV’s Market Position
Unit: USD mm
Total Assets Loans Deposits Equity Profit before
Provision and Tax
Profit before Tax Market Cap Network
65,382 51,527 52,874 3,439 1,394 397 8,304 1,096
54,362 43,223 42,687 3,681 1,259 736 5,545 1,125
51,232 36,198 44,488 4,261 1,421 993 15,651 553
21,335 12,858 13,403 2,159 724 461 2,775 301
21,234 14,667 18,447 1,248 270 144 1,314 553
19,161 15,224 14,428 1,528 454 414 2,590 371
18,948 11,867 11,959 3,216 794 681 4,759 311
18,061 12,341 10,062 2,276 1,191 561 3,439 230
17,798 13,174 13,088 1,051 343 147 1,286 255
13,755 7,686 7,527 1,065 328 251 1,632 308
8,893 5,172 4,996 722 266 189 1,243 87
Source: Q4.2020 Financial Reports from listed Banks
SO
CBs
JSC
Bs
Achievements
Top 10 Vietnam companies
Outstanding Retail Bank in Vietnam
2016-2020, Best Digital Business
Transformation 2020
Best Payment Bank in Vietnam
Best SME 2018-2020
Best Cash Management Bank in Vietnam
Best Transaction Bank in VietnamTop 300 Global Banking Brand
Top 4 most valued brands in Vietnam
Top 10 sustainable companies
2018-2020
Best SME Bank 2018-2020
Best FX Provider 2018-2020
Top 2000 World’s Biggest Public
Companies, Top 50 Vietnam
Companies
17
Leadership in Contactless active
terminals penetration 2019,2020
Best SME Bank Vietnam
2018, 2019,2020
6 excellent high technology applied products: BIDV-Ezone; BIDV Paygate; Automatic
deposit investment system and bilateral payment for Vietnam Social Security; BIDV’s
bank statement system; Cross-selling management system - BIDV Sale Power; Sales
support mobile application for corporate customers named B.Sales.
BIDV Shares
25
Ticker BID
Listed on Ho Chi Minh Stock Exchange
Listing Date 24th January 2014
Outstanding Volume (shares) 4,022,018,040
Free-floating ratio 4.01%
Foreign ownership 17,4% (15% by Hana)
Market Cap (VND tn)VND 197,000 trillion (USD 8.5
billion)
Last closed price
(31 Dec 2020)47,900 VND
52-week high/low 54,600 / 30,300 VND
EPS 2,163 VND
P/B (31 Dec 2020) 2.46x
P/E (31 Dec 2020) 24.9x
Share Price Performance
Peer ComparisonDec 31st, 2020
0.0
5.0
10.0
15.0
20.0
25.0
30.0
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
BID VCB CTG MBB EIB ACB TCB VPB
P/E P/B Vốn hóa (VND)
BIDV OVERVIEW2
BIDV Performance
Steady balance sheet growth20
Total Assets(VND billion)
Customer Deposits(VND billion)
Customer Loans(VND billion)
1,006,635
1,202,283
1,312,886
1,489,957 1,516,870
20172016 2018 2019 2020
+1.8%
+11%
723,697
866,885
988,739
1,116,998
1,214,296
20192017 20182016 2020
+8.7%+14%
726,022
859,985
989,671
1,114,163
1,226,674
2016 2017 2018 2019 2020
+10.1%+14%
Profit Before Tax (VND billion)
10,876
20182016 20192017 2020
8,665
7,709
9,473 9,214 -15.3%
+5%
Loan portfolio focusing on retail component21
• Market share: 13.4%
• The Bank’s lending increased by 8.7% from end of 2020 to VND 1,214,296 billion as of end of 2020
• Loan portfolio:
• Focusing on retail and SME components (35.7% and 27% respectively as of 2020).
• Short term loans increased proportion and accounted for 62.9% of the portfolio.
Trend in Gross Customer Loans(VND billion)
54.8%
2016
33.2%30.8%
11.9%
31.4%
1,214,296
58.0%
9.4%
32.6%
2017
61.8%
7.2%
30.9%
2018
62.6%
6.6%
2019
62.9%
988,739
5.8%
2020
723,697
866,885
1,116,998 8.7%14%
Long-termMedium-termShort-term
Loan portfolio by customers
37,3%
SME
Corporate
27,0%
35,7%
Retail
2020
Diversified focusing on high-growth sector and good credit quality22
Loan portfolio by group (%)
16,1%
Mining
4,4%
30,8%
Agriculture, forestry & seafood
5,6%
1,1%Manufacturing & processing
Electricity, petroleum & water
8,9%Construction
Wholesale & retail trade
3,9%Transport & warehousing
11,8%Services
2,5%
Real estate14,8%
Others
Loan portfolio by industry
• Credit quality was impaired with NPL rate increasing from
1.74% in 2019 to 1.76% in 2020 due to the impact of Covid19.
• Loan portfolio by industry improved positively by increasing
loans for high-growth industries (such as services, wholesale &
retail) and decreasing loans for high-risk industries (such as real
estate, mining, manufacturing).
1,90%
2016
1,99%
3,52%3,75%
1,62%
94,26% 94,86%
2017
2,33%
95,77%
2018
1,74%
2,23%
96,03%
1,76%
2019
1,12%
97,12%
2020
CurrentNPL Special Mentioned
2020
5,4%
Agriculture & forestry
7,5%
3,0%
15,8%
Mining
19,1%Manufacturing & processing
Electricity, petroleum & water
Construction
Transport & warehousing
23,1%
Wholesale & retail trade
2,2%
4,6%Services
7,1%
Real estate12,1%
Others2016
Deposit23
82.1%
17.2%
Specific Purpose Term Deposit Demand Deposit
• Market share: 11.0%
• Customer deposits grew by 14% p.a. in the period of 2016-2020 thanks to nationwide network and strong brand name.
• Deposit structure: Individuals deposit accounted for 50% of total mobilized funds, ensuring the stable deposit growth.
Customer Deposits by Term(VND billion)
80.7%
2016
18.0%
17.2%
82.1%
0.7%
18.6%
0.7%
2017
16.4%
82.9%
1,226,674
2019
82.9%
1.1%
81.4%
0.5%
2020
0.8%
2018
726,022
859,985
989,671
1,114,231
16.0%
+10.1%+14%
Deposit Breakdown
50%
35%
14%
Individuals
Corporate
FI 2020
Financial Performance24
Total Operating Income
(VND billion)
Net Interest Income
(VND billion)Non-Interest Income
(VND billion)
2018 20192016 2017 2020
30.434
39.017
44.483
48.16550.035
13,2%
2016 20202017 2018
23.435
2019
30.955
34.95635.995 35.797
11,2%
2016
6.999
20182017 20202019
8.062
9.527
12.171
14.238
+19,4%
2016 202020182017
16.167
2019
13.527
15.504
17.280 17.696
6,9%
Total Operating Expense
(VND billion)
2,528
25
Financial Performance
87%
8%
0%
2%From deposits
From debt securities
2%
From loans to customers
From guarantee
From finance leases
1%
Others
72%
11%
10%
Interest income
Investment income
Fee & commission
3%
Securities income
Gold and FX
4%
0%
Other income
Non-interest income accounted for bigger proportion in TOI Interest income from loans to customers is driven factor in NII
55%
42%Payment services
1%
Other service
Treasury activities
1%
Agency services
Leading banking service focusing on settlement and insurance
57%
17%
20%
5%
0%
Other provision expenseTaxes and fees
Insurance for customer deposits
Staff Cost
Rental & Fixed Assets
Administration Expense0%
Well-managed operating expense
2020
2020 2020
2020
Key Ratios26
Source: BIDV Financial Reports
Asset quality 2016 2017 2018 2019 2020Loans to deposits 100% 101% 99.9% 100.0% 99.0%
Loan loss reserve coverage
(Provision/NPL)69.7% 80.7% 66.0% 74.2% 88.4%
NPL ratio 1.99% 1.62% 1.90% 1.74% 1.76%
Credit Cost 1.39% 1.87% 2.04% 1.90% 1.98%
Profitability 2016 2017 2018 2019 2020
Net interest margin 2.72% 2.98% 2.94% 2.82% 2,61%
Non-interest income/Operating
Income23.0% 20.7% 21.4% 25.3% 28.5%
ROAA 0.67% 0.63% 0.60% 0.62% 0.49%
ROAE 14.4% 14.9% 14.6% 13.1% 9.4%
CIR 44.4% 39.7% 36.2% 35.9% 35.4%
Retail Banking 27
Retail Deposits (VND billion )
308,337
374,526
425,879
20192016 2017 2018 2020
185,216
238,527
13.7%23.1%
Retail Loans (VND billion)
8,802
10,040
11,340
12,786
20182016 2017 2019 2020
14,241
11.4%
12.8%
Customer Base (thousand people) Retail Loans Breakdown (VND billion)
Mortgages
33,4%
Consumers
Commercial & Production
Others
0,8%
21,7%
44,2%
2020
435,283
523,643571,204
625,666 634,127
2016 2017 202020192018
1.35%
9.9%
28
Digital Banking
BIDV’s digital banking vision 2030 - Become the leading financial
institution in Southeast Asia with the best digital platform in Vietnam,
and strive to be among the 100 largest banks in Asia.
Digital Channels: Internet banking, Mobile banking, Web Chat,
Messenger, Facebook Fan Page, YouTube Channel, 3rd party
app/web, Online Application for Internet & mobile banking…
Innovation products: Apple Watch, Interactive game, Smart
Keyboard for fund transfer, Chatbot, Notification for transaction (OTT
messages) in Smart Banking; Virtual Account, Swift GPI in iBank
Number of E-banking users: SMS banking: 6.2 million; Internet &
mobile banking: 5.9 million (28%~ 1.1 million).
Transaction Value: 89 billion USD, increased 149% compare with
2019;
Update 202029
Income Statement (VND
billion)2016 2017 2018 2019 2020
CAGR
2016 - 2020
Net interest income 23,435 30,955 34,956 35,995 35,797 13.1%
Net fee & commission income 2,509 2,966 3,551 4,283 4,266 12.8%
Total operating income 30,434 39,017 44,483 48,165 50,035 15.2%
Operating expense 13,527 15,504 16,117 17,280 17,696 9.8%
Profit before provision 16,907 23,513 28,366 30,885 32,339 18.9%
Provision expenses 9,199 14,847 18,894 20,009 23,125 32.4%
Profit before tax 7,709 8,665 9,473 10,876 9,214 3.0%
Taxation charge 1,480 1,720 1,931 2,211 1,851 3.3%
Net profit 6,229 6,946 7,542 8,665 7,363 2.9%
Balance Sheet (VND billion) 2016 2017 2018 2019 2020CAGR
2016 - 2020
Total assets 1,006,404 1,202,284 1,313,038 1,490,105 1,516,870 12.3%
Customer loans 723,697 866,885 988,739 1,116,925 1,214,296 15.2%
Customer deposits 726,022 859,985 989,671 1,114,231 1,226,674 16.8%
NPL ratio 1.99% 1.62% 1.90% 1.75% 1.76%
SHARE OFFERING PLAN TO FOREIGN INVESTORS3
Overall Plan
Projected Shareholding Structure
STAGE 1: 2019 STAGE 3: From 2022
• Issuing shares to foreign investors
(total up to 30%):
- Strategic Investor (KEB Hana): 15%
- Financial investor: up to 12%
• State ownership ≥ 65%
• Additional public offering
• Issuing additional shares to foreign
• Foreign Investors (may hold >30% in
total)
• State ownership decrease to ≥ 51%
• IPO finished on December, 2011
• Transforming to Joint Stock
Commercial Bank in April 2012
• State ownership: 80.99%
• KEB Hana: 15%
• Other Foreigner ownership: 3%
STAGE 2: To 2022
31
KEB Hana
Foreigners
80,99%
3,00%
15,00%1,01%
Others
State
5%
65%Sate ownership
30%Foreign ownership
Others
5%5%
OthersEmployees
39%
Foreign ownership
51%
Sate ownership
(*) According to “The Development Strategy of the Vietnam Banking Sector to 2025, vision to 2030” approved by the Prime Minister in Decision No.986/QD-TTg dated 8th Aug 2018
This Presentation (the Presentation) has been prepared by IR Team - BIDV for the purpose of setting out certain
confidential information in respect of BIDV’s business activities and strategy. This Presentation is for the exclusive use of
the recipients to whom it is addressed.
This presentation is to provide general] information and analysis on BIDV for those who qualify as a “professional
securities investor” as defined in the Securities Law. Such investors should use information, analysis, comment in this
presentation as a reference source only. This presentation and any meeting where this presentation is made are for the
purpose of providing information and do not intend to advertise BIDV or BID stock or to advice readers to buy or sell BID
stock or any other securities. No representation or warranty, express or implied, is made concerning, and no reliance
should be placed on, the accuracy, fairness, or completeness of this Presentation. BIDV takes no responsibility with regard
to the accuracy or completeness of any information contained here. Viewpoint and analysis in the report can be changed
without notification.
The presentation is a property of BIDV and under copyright protection. Infringement of copy, change and reprint of the
report without permission of BIDV is illegal. BIDV owns the copyright on this documentation.
IR Team:
Mr. Dang Xuan Thang - Tel: +84 913 044 966 - Email: [email protected]
Ms. Tran Nguyet Quynh Hoa - Tel: +84 937 050 282 - Email: [email protected]
Ms. Tran Truc Quynh - Tel: +84 983 651247 - Email: [email protected]
Mr. Nguyen Xuan Thieu - Tel: +84 904 991 587 - Email: [email protected]
Mr. Nguyen Phi Long - Tel: +84 936 337 717 - Email: [email protected]
Important Notice32
