Slide en update q4 2015 usd website
-
Upload
nguyen-anh-tai -
Category
Investor Relations
-
view
120 -
download
0
Transcript of Slide en update q4 2015 usd website
IR Presentation
Quarter IV - 2015
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
Robust group structure
Head Office
Operation Centre Branches Representative Offices Non-profit Making Units Subsidiaries & Affiliates
Transaction Offices
VietinBank Leasing
Company Ltd
VietinBank Securities Joint Stock company
VietinBank Debt and
Asset Management Company Ltd
VietinBank Insurance
Company Ltd
VietinBank Aviva Life
Insurance Joint Venture
Company
VietinBank Fund
Management Company
Ltd
Financial Leasing
Asset management
Non-life insurance Life Insurance Fund
managementBanking and
Finance
VietinBank Gold and Jewelry
Trading company Ltd
Securities
Indovina Joint Venture
Bank
Manufacture, design and trade
in gold and precious metals
and gems
1 2 3 4 5 6
Saving Offices
VietinBank Global Money
Transfer Company Ltd
International Remittance
7 8 10
VietinBank Lao Ltd
Banking and
Finance
9
Solid management structure and governance
Supervisory Board
Board of Directors
Board of Management
Internal Audit Department
Committees
Secretariat to Board
Risk Management Committee
HR and Remuneration
Committee
Policy Committee
Assets and Liabilities
Management Committee
Head OfficeTrade Finance
Center and Branches
Non-profit Making Units
Representative offices
Transaction Offices and
Savings Offices
Credit CommitteeFinancial Institutions Committee
Divisions and Departments
General Shareholder s’ Meeting
Awards
According to Brand Finance, VietinBank brand name is grade A and worth 197 million USD, ranked the 437 th in the world. This is the 3rd time VietinBank was selected and shortlisted into Top 500 financial institutions with strong brand name – the most valuable awards for the banks in the world.
According to Vietnam Report và Vietnamnet E-Newspaper, VietinBank ranked the 20 th among Top 500 big corporations in Viet Nam (VNR500). At the same time, VietinBank was honored to be shortlisted into best enterprises in Viet Nam.
VietinBank was also named the 3rd consecutive times and ranked the 1.854th in 2014 by the Forbes Global 2.000 awards.
• Ranked the 437th, 328th and 434th for 2014, 2013 and 2012 respectively.
• Ranked the 20th in the Top 500 Vietnam Group
• The best awards in Viet Nam
• Awarded by the Ministry of Industry and Trade
• Awarded the 11th consecutive time in 2014
• Being honored as a leading business in the financial sector to pay corporate income tax.
• Ranked the 5th and in five consecutive years, VietinBank in the Top 10 Business
• Awarded the organizations that providing the best financial services in Vietnam
• Ranked the 1.854th in 2014• Awarded the 3rd consecutive years.
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
Top financial institution in Vietnam with dominant market share: • Loans (12.4%)• Mobilized fund (9.6%)• Investment Banking (16.5%)• Remittance (15%)• International payment (12.9%)• Leading position in cards services (21%)
Complete 2015 business plan with high success
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 & dominant market share
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
13
9
31
39
36
514
1,032
645
1,031
584
2,108
1,870
2,563
433
731
564
861
428
1,217
1,562
1,701
408
318
417
346
328
725
1,113
Note: Data as of 31 /12/2015Updated 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, 962 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, 962 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,962 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
For the period from 2014-2015: Upgrading VietinBank
Laos Branch into VietinBank Lao Ltd.,
Establishing VietinBank’s subsidiaries in Cambodia and the Republic of the Union of Myanmar
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
2015’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 1-1.2%)
Continues to consolidate organizational structure and operating model with the launch of the ORP project (consulted by McKinsey and Ernst & Young)
Improve service quality to increase the portion of non-interest income
Focus on Commercial Banking and Investment Banking pillars
Enlarge the retail banking business
Expand market and client base to increase market share.
Expand distribution network both domestically and internationally
Dividend: 7-9%Focus on risk management: NPL ratio/total credit exposure <3.0%
Growth: Assets: 13% Mobilized fund: 14% Credit: 13% (SBV approved to
raise to 18%)
VietinBank vs. other banks – QIV/2015
Unit: USD Million CTG BIDV VCB ACB STB EIB MBB SHB Average
Total Assets 35,609 38,865 30,786 9,203 13,364 5,748 10,098 9,354 19,128 Chartered capital 1,701 1,562 1,217 428 861 564 731 433 937 Balance sheet
Placements with and loans to other banks 3,016 3,069 5,972 462 101 358 1,309 1,363 1,956
Loans and advances to customers 24,581 27,339 17,686 6,123 8,493 3,872 5,544 6,004 12,455 Trading and investment securities 5,636 5,951 5,369 1,772 1,819 872 2,295 700 3,052 Trading securities 153 405 432 8 4 0 158 1 145 Investment securities 5,483 5,546 4,936 1,764 1,814 872 2,136 699 2,906 Long-term investments 178 240 162 10 15 88 73 14 98 Other assets 1,234 919 470 450 2,034 119 431 868 816 Liabilities Deposits and borrowings from other banks 4,530 3,643 3,295 111 135 362 343 1,286 1,713 Customer deposits 22,520 25,792 22,831 7,991 11,908 4,497 8,294 6,798 13,829 Financing funds, entrusted funds 2,478 1,612 0 7 82 0 15 19 527 Other liabilities 1,955 815 544 133 192 82 210 162 512 Owner's equity and Funds 2,563 1,870 2,108 584 1,031 645 1,032 514 1,293 Income statement (accummulated) Net interest and similar income 861 885 706 269 302 155 334 154 458 Net profit from services 67 107 85 34 53 13 25 11 49 Other income 112 137 177 (19) 31 6 42 13 62 Total income 1,039 1,129 968 284 387 175 401 178 570 Operating expenses 490 501 379 184 222 105 158 93 266 Provision for credit losses 214 265 277 40 (97) 66 96 38 112 Profit before tax 336 363 312 60 67 4 147 47 167 Profit after tax 261 292 244 47 52 3 115 37 131
3. Performance Stable deposits growth & high liquidity High credit growth, well controlled NPL ratio Safe & diversified securities portfolio Strong financial results Contribution in 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 2014: USD 28,040 MilOuter ring: As at 31 Dec 2015: USD 32,842 Mil
0.79%
17%
71%
5%1%
4%
1.86%
14%
69%
8%3% 4%
Due to Gov and SBVDeposits & borrowing from other banksCustomer DepositsSponsor capital, Entrusted InvestmentValue paper issuedOther mobilized funds
2010 2011 2012 2013 2014 20150
5,000
10,000
15,000
20,000
25,000
30,000
9,56612,050
13,568 17,15619,957
22,5201,492
3,366
4,572
3,796
4,895
4,530
Deposit &borrowing from other banksCustomer Deposits
High liquidity
Customer Deposit Breakdown by Type of business (31/12/2015)
Customer Deposit Breakdown by by Tenor (31/12/2015)
CAR ratio
14.49%
82.08%
0.62%
2.81%Demand deposits
Term deposits
Deposits for specific purpose
Margin deposit 2010 2011 2012 2013 2014 20150%
2%
4%
6%
8%
10%
12%
14%
8.02%
10.57%10.33%
13.17%
10.40% 10.31%
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 (31/12/2015)
2010 2011 2012 2013 2014 20150
5,000
10,000
15,000
20,000
25,000
30,000
11,01813,811
15,69017,711
20,704
24,581
2010 2011 2012 2013 2014 1Q2015 2Q2015
63.69% 63.71%
66.20%65.28%
66.53%
69.69% 70.08%
56.03%
11.17%
32.80%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
63.69% 63.71%
66.20%65.28%
66.53%
69.03%
NPL ratio is well controlled
Group
2015 2014 2013 2012
Value(USD, mil) % Value
(USD, mil) % Value(USD, mil) % Value
(USD, mil) %
Group 1Current 24,209 98.48 20,295 98.03 17,404 98.27 15,394 98.11
Group 2Special mention
147 0.60 177 0.86 129 0.73 66 0.42
NPLs 226 0.92 231 1.12 177 1.00 230 1.47
Total 24,581 100 20,704 100 17,711 100 15,690 100
2008 2009 2010 2011 2012 2013 2014 20150.0%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%
2.10%2.50% 2.40%
3.47%
4.09%3.79%
3.25%
2.50%
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 201524%
25%
26%
27%
28%
29%
30%
31%
32%
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
8,3278,91531.1%
29.7%
26.7%
27.8%
26.8%
28.5%
Total investment Investment to total asset ratio
43%
54%
0.06%
2%34%
64%
0.23%
2%
Interbank Debt securities Equity securities
Long-term investments
Inner ring: As at 31 Dec 2014Outer ring: As at 31 Dec 2015
Strong financial results
Profit results (USD, Mil)
Financial ratios
Operating Income Breakdown
Cost to income ratio
2010 2011 2012 2013 2014 20150
100
200
300
400
500
600
700
361
625590 559
527 549
164
296 295 273 270 261
Profit before provisions for credit losses Profit after tax
2010 2011 2012 2013 2014 20150%
1%
2%
3%
0%
5%
10%
15%
20%
25%
30%
1.5%
2.0%1.7%
1.4%1.2% 1.0%
22.1%
26.7%
19.9%
13.7%10.5% 10.3%
ROA ROE
2010 2011 2012 2013 2014 20150%
20%
40%
60%
80%
100%
82% 90% 84% 84% 84% 83%
10%5%
6% 7% 7% 6%
9% 5% 10% 9%9% 11%
Other operating income Fees and commission income Net interest income
2010 2011 2012 2013 2014 201536%
38%
40%
42%
44%
46%
48%
50%48.57%
40.57%
42.96%
45.49%46.72% 47.13%
Contribution in subsidiaries
SubsidiariesTotal
contributed capital
(USD, mil)
Percentage of contribution
(%)
Charted capital as at 31.12.2015
(USD, mil)
Profit before tax as at
31.12.2015 (USD, mil)
VietinBank Lao Limited(*) 50.71 100% 50.71 1.94
VietinBank Leasing Company Ltd 45.68 100% 45.68 (**) 4.66
VietinBank Fund Management Company Ltd 43.4 100% 43.4 2.74
VietinBank Securities Joint Stock Company 27.27 75,61% 38.25 (***) 4.35
VietinBank Insurance Company Ltd 22.84 100% 22.84 3.14
VietinBank Gold and Jewelry Trading Company Ltd 13.7 100% 13.7 0.41
VietinBank Debt Management and Asset Exploitation Company Ltd
5.48 100% 5.48 0.11
Global Money Transfer Company Ltd 2.28 100% 2.28 0.5
Improving the value of life
(*): Offcially come into operation since 31/07/2015, capital & PIT are converted from Kips to USD then to VND from time to time(**): Capital increase from $36.55 million to $45.68 million according to VietinBank’s Board Resolution. (***): Capital increase from $36.09 million to $38.25 million thanks to stock dividend of 6%Exchange rate: Average interbank rate of 21,890 VND/USD
CTG Stock Performance – QIV/2015
Value
The closing price on 01st October 2015 19,600 VND/share
The closing price on 31th December 2015 18,600 VND/share
The highest prices in 4Q2015 17,700 - 21,200 VND/share
Volume 79,763,670 share
Trading value 1,607 Billion VND
The trading volume of foreign investors Net purchase 1,786,270 share
Foreign owned 1,099,638,640 share(29.53%)
Current room of foreign investors
17,382,727 share(0.47%)
EPS 3,071 VND/share
P/E (31th Dec 2015) 6.06x
BVPS 13,917 VND/share
P/B (31th Dec 2015) 1.34x
05/01/201505/03/2015 27/4/2015 23/06/201513/08/201506/10/201526/11/201580%
100%
120%
140%
160%
180%
200%
220%
240%Growth of VN-Index and Bank Stock –2015
CTG VCB BID MBB STB ACBVNIndex
05/01/201509/03/201507/05/201501/07/201525/08/201520/10/201514/12/20150
5
10
15
20
25
01,0002,0003,0004,0005,0006,0007,0008,0009,00010,000
CTG Stock Performance – 2015
Volumn (Thousands of share) CTG price
Thou
sand
s do
ng
Website for investorshttp://investor.vietinbank.vn
For further information, please contact:
Investor Relations - 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.