Slide en update q4 2015 usd website

29
IR Presentation Quarter IV - 2015 Improving the values of life

Transcript of Slide en update q4 2015 usd website

Page 1: Slide en update q4 2015 usd website

IR Presentation

Quarter IV - 2015

Improving the values of life

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Table of contents1. General information

2. Investment highlights

3. Performance

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1. General information Important Milestones Corporate Vision & Strategic Objectives Organization Structure Awards

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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.

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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

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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

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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

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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.

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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

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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

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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

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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

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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

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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

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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%)

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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

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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

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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

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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

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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%

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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

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• 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

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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

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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%

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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

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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

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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

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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.