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IR Presentation
Quarter I – 2016
(Exchange rate: 21,857 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 (12.5%)• Mobilized fund (10.2%)• Investment Banking (16.5%)• Remittance (15%)• International payment & Trade Finance (12.6%)• Leading position in cards services (22%)
Outstanding business performance in QI.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
9
10
6
14
10
30
39
36
528
1,071
603
1,038
600
2,157
2,002
2,654
434
746
565
863
429
1,219
1,564
1,704
408
318
417
346
328
725
1,113
Note: Data as of 31 /03/2016Updated 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 – QI/2016
Unit: USD Million CTG BIDV VCB ACB STB EIB MBB SHB Average
Total Assets 36,224 39,299 30,303 9,602 14,024 5,592 10,467 9,317 19,353 Chartered capital 1,704 1,564 1,219 429 863 565 746 434 941 Balance sheet
Placements with and loans to other banks 2,933 2,739 4,854 428 432 323 1,439 1,157 1,788
Loans and advances to customers 25,319 28,537 18,833 6,599 8,725 3,775 5,690 6,298 12,972 Trading and investment securities 5,257 6,049 5,223 1,793 1,897 859 2,449 837 3,045 Trading securities 10 402 377 21 59 0 37 2 114 Investment securities 5,248 5,646 4,846 1,772 1,838 859 2,412 835 2,932 Long-term investments 175 205 163 9 14 86 65 13 91 Other assets 1,287 997 492 367 2,019 124 442 748 810 Liabilities Deposits and borrowings from other banks 4,779 3,958 2,982 391 148 133 741 1,119 1,781 Customer deposits 23,033 28,016 23,516 8,284 12,551 4,624 8,259 7,083 14,421 Financing funds, entrusted funds 2,523 1,386 0 8 75 0 14 19 503 Other liabilities 2,306 869 548 141 208 92 240 155 570 Owner's equity and Funds 2,654 2,002 2,157 600 1,038 603 1,071 528 1,332 Income statement (accummulated) Net interest and similar income 246 258 207 72 57 42 81 41 126 Net profit from services 17 23 25 9 14 3 5 1 12 Other income 34 26 41 (4) 7 2 7 3 15 Total income 297 307 273 78 78 47 94 45 152 Operating expenses 121 121 108 49 67 30 42 23 70 Provision for credit losses 66 91 60 11 2 15 11 8 33 Profit before tax 110 95 105 18 9 1 40 14 49 Profit after tax 88 77 84 14 7 1 32 11 39
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 32,842 MilOuter ring: As at 31 Mar 2016: USD 32,259 Mil
0.35%
13%
66%
7%2%
2%
0.56%
14%
70%
8%2% 5%
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
0
5,000
10,000
15,000
20,000
25,000
30,000
9,56612,050
13,56817,156
19,957
22,52023,033
1,492
3,366
4,572
3,796
4,895
4,530 4,779
Deposit &borrowing from other banksCustomer Deposits
High liquidity
Customer Deposit Breakdown by Type of business (31/12/2015)
Customer Deposit Breakdown by by Tenor (31/03/2016)
CAR ratio
13.62%
82.67%
0.90%
2.82%Demand deposits
Term deposits
Deposits for specific purpose
Margin deposit 2010 2011 2012 2013 2014 2015 1Q20160%
2%
4%
6%
8%
10%
12%
14%
8.02%
10.57%10.33%
13.17%
10.35% 10.58%10.05%
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 (31/03/2016)
2010 2011 2012 2013 2014 2015 QI/20160
5,000
10,000
15,000
20,000
25,000
30,000
11,01813,811
15,69017,711
20,704
24,581 25,319
2010 2011 2012 2013 2014 1Q2015 2Q2015
63.69% 63.71%
66.20%65.28%
66.53%
69.69% 70.08%
54.88%
11.36%
33.76%
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
63.69% 63.71%
66.20%65.28%
66.53%
69.03%69.90%
NPL ratio is well controlled
Group
QI/2016 2015 2014 2013 2012
Value(USD, mil) % Value
(USD, mil) % Value(USD, mil) % Value
(USD, mil) % Value(USD, mil) %
Group 1Current 24,841 98.11 24,209 98.48 20,295 98.03 17,404 98.27 15,394 98.11
Group 2Special mention 235 0.93 147 0.60 177 0.86 129 0.73 66 0.42
NPLs 243 0.96 226 0.92 231 1.12 177 1.00 230 1.47
Total 25,319 100 24,581 100 20,704 100 17,711 100 15,690 100
2008 2009 2010 2011 2012 2013 2014 2015 QI/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%
2.10%2.50% 2.40%
3.47%4.09%
3.79%3.25%
2.50% 2.70% (*)
VietinBank Banking average
(*): NPL ratio of banking industry by the end of February 2016
•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
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
8,47031.1%
29.7%
26.7%
27.8%
26.8%
28.5%
23.4%
Total investment Investment to total asset ratio
34%
64%
0.23%
2%35%
63%
0.22%
2%
Interbank Debt securities Equity securities
Long-term investments
Inner ring: As at 31 Dec 2015Outer ring: As at 31 Mar 2016
Strong financial results
Profit results (USD, Mil)
Financial ratios
Operating Income Breakdown
Cost to income ratio
2010 2011 2012 2013 2014 2015 QI/20160
100
200
300
400
500
600
700
361
625590 559
527 549
176164
296 295 273 270 261
88
Profit before provisions for credit losses Profit after tax
2010 2011 2012 2013 2014 2015 QI/20160.0%
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%
22.10%
26.74%
19.90%
13.70%10.50% 10.29%
13.48%
ROA ROE
2010 2011 2012 2013 2014 2015 QI/20160%
20%
40%
60%
80%
100%
82% 90% 84% 84% 84% 83% 83%
10%5%
6% 7% 7% 6% 6%
9% 5% 10% 9%9% 11%
11%
Other operating income Fees and commission income Net interest income
2010 2011 2012 2013 2014 2015 QI/201636%
38%
40%
42%
44%
46%
48%
50%48.57%
40.57%
42.96%
45.49%46.72% 47.13%
40.76%
Efficient subsidiaries
SubsidiariesTotal
contributed capital
(USD, mil)
Percentage of contribution
(%)
Charted capital as at 31.03.2016
(USD, mil)
Profit before tax as at
31.03.2016 (USD, mil)
VietinBank Lao Limited(*) 50.71 100% 50.05 1.29
VietinBank Leasing Company Ltd 45.68 100% 45.68 1.24
VietinBank Fund Management Company Ltd 43.4 100% 43.4 0.47
VietinBank Securities Joint Stock Company 27.27 75,61% 38.25 1.09
VietinBank Insurance Company Ltd 22.84 100% 22.84 0.59
VietinBank Gold and Jewelry Trading Company Ltd 13.7 100% 13.7 0.2
VietinBank Debt Management and Asset Exploitation Company Ltd
5.48 100% 5.48 (0.03)
Global Money Transfer Company Ltd 2.28 100% 2.28 0.12
Improving the value of life
CTG Stock Performance – QI/2016
Value
The closing price on 04th Januarry 2016 18,300 VND/share
The closing price on 31th March 2016 16,400 VND/share
The highest prices in QI/2016 16,100 – 18,400 VND/share
Volume 44,381,741 share
Trading value 774.886 Billion VND
The trading volume of foreign investors Net sales 444,120 share
Foreign owned 1,103,507,261 share(29.64%)
Current room of foreign investors
13,514,106 share(0.36%)
EPS 2,067 VND/share
P/E (31th Dec 2015) 7.94x
BVPS 14,435 VND/share
P/B (31th Dec 2015) 1.14x31
/12/20
15
06/01
/2016
11/01
/2016
14/01
/2016
19/01
/2016
22/01
/2016
27/01
/2016
01/02
/2016
04/02
/2016
16/02
/2016
19/02
/2016
24/02
/2016
29/02
/2016
03/03
/2016
08/03
/2016
11/03
/2016
16/03
/2016
21/03
/2016
24/03
/2016
29/03
/2016
60%
80%
100%
120%Growth of VN-Index and Bank Stock –QI/2016
CTG VCB BID MBB STB ACBVNIndex
04/01
/2016
07/01
/2016
12/01
/2016
15/01
/2016
20/01
/2016
25/01
/2016
28/01
/2016
02/02
/2016
05/02
/2016
17/02
/2016
22/02
/2016
25/02
/2016
01/03
/2016
04/03
/2016
09/03
/2016
14/03
/2016
17/03
/2016
22/03
/2016
25/03
/2016
30/03
/2016
14.5
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
3,500CTG Stock Performance – QI/2016
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.