Joint Stock Commercial Bank For Foreign Trade Of Vietnam · HOSE:VCB
Joint Stock Commercial Bank For Foreign Trade Of Vietnam — Vietcombank — Investor Presentation (October 2018)
40 slides from Joint Stock Commercial Bank For Foreign Trade Of Vietnam's investor presentation, October 2018
Slide 1: Vietcombank
Vietcombank Vietcombank October 2018
Slide 2: Table of contents
Table of contents 1. Vietcombank overview 2. Business landscape 3. Key company highlights 4. Growth strategy and targets 5. 3Q 2018 updates 6. Annexes 1
Slide 3: Vietcombank overview
Vietcombank Together for the future 1. Vietcombank overview
Slide 4: A leading player in Vietnam's banking sector
Overview Landscape Business Strategy 3Q 2018 Annexes A leading player in Vietnam's banking sector Market position in Vietnam by(1): #1 Market capitalisation US$ 8.7 bn Universal banking model across a wide range of Ownership financial services spanning #2 US$ 2.4 bn Capital retail, corporate and f
Slide 5: Strong heritage and track record of achievements
Overview Landscape Business Strategy 3Q 2018 Annexes Strong heritage and track record of achievements Corporate milestones Key shareholders Foreign Domestic investor, investor, 1963 5.74% 2.15% 1990 Established Mizuho Changed to (SOCB) 15.00% Universal Commercial Bank 2007-2008 SBV IPO & became 77.1
Slide 6: Corporate structure
Overview Landscape Business Strategy 3Q 2018 Annexes Corporate structure Vietcombank Financial Services Non-Financial Services Other Financial Commercial Banking Investment Banking Insurance Real Estate Services Vietcombank Laos Vietcombank Vietcombank VCB Cardif Life VCB Tower 198 (100%) Securities
Slide 7: Experienced management team and BoD with deep industry expertise
Overview Landscape Business Strategy 3Q 2018 Annexes Experienced management team and BoD with deep industry expertise Chairman and CEO profile Mr. Nghiem Xuan Thanh, Chairman of Board of Directors, has been with VCB since 2013 and has a banking career spanning over 25 years in various banks in Vie
Slide 8: Business landscape
Vietcombank Together for the future 2. Business landscape
Slide 9: Favorable macroeconomic environment
Overview Landscape Business Strategy 3Q 2018 Annexes Favorable macroeconomic environment Strong GDP growth GDP growth by sector (%) Expected to reach 6.6 – 6.8% growth in 2018, one of the highest in Emerging Markets 6.7% 6.8% 6.0% 6.2% 5.2% 5.4% 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016
Slide 10: Banking sector overview
Overview Landscape Business Strategy 3Q 2018 Annexes Banking sector overview Overview Market share (2017) Large number of banks (98); market share dominated by State Owned 12% 7% 8% Commercial Banks (“SOCBs”) 27% 21% Industry restructuring plan commenced with bank consolidation and 40% 42% credi
Slide 11: Key company highlights
Vietcombank Together for the future 3. Key company highlights NX
Slide 12: Key company highlights
Overview Landscape Business Strategy 3Q 2018 Annexes Key company highlights 1 Strong brand positioning driving robust deposit growth 2 Growing loan portfolio with increasing retail component 3 High asset quality and strong capital base 4 Consistently strong profitability and performance Diversified
Slide 13: Strong brand positioning driving robust deposit growth
Overview Landscape Business Strategy 3Q 2018 Annexes 1 Strong brand positioning driving robust deposit growth Customer deposits are the largest source of total funding, accounting for ~70% Growing market share (~10%) on the back of strong nationwide brand recognition and loyalty 2017 deposit b
Slide 14: Growing loan portfolio with increasing retail component
Overview Landscape Business Strategy 3Q 2018 Annexes 2 Growing loan portfolio with increasing retail component Market share ~9% 2017: Total loans: ~VND 543.4 tn, increased 17.9% against 2016; recorded 17.6% CAGR between 2012 – 2017 Loan composition − Growing loan portfolio with a focused appro
Slide 15: High asset quality and strong capital base
Overview Landscape Business Strategy 3Q 2018 Annexes 3 High asset quality and strong capital base FY ended 31 December 2012A 2013A 2014A 2015A 2016A 2017A 3Q2018 Loans to deposits 84.51% 82.56% 76.58% 77.36% 78.04% 76.70% 81.19% Loan loss reserve coverage (Provision/NPL) 91.07% 86.29% 94.43% 120.63%
Slide 16: Consistently strong profitability and performance
Overview Landscape Business Strategy 3Q 2018 Annexes 4 Consistently strong profitability and performance FY ended 31 December 2012A 2013A 2014A 2015A 2016A 2017A 3Q2018 Net interest margin 2.99% 2.62% 2.40% 2.57% 2.64% 2.66% 2.94% Non-interest income/Operating Income 27.5% 30.5% 32.0% 27.1% 25.5% 25
Slide 17: Diversified loan portfolio with a focus on high-growth sectors
Overview Landscape Business Strategy 3Q 2018 Annexes 5 Diversified loan portfolio with a focus on high-growth sectors with good credit quality Lending breakdown By sector By loan group By term 0.9% 0.4% 1.4% 0.7% 0.2% 0.3% 0.3% 0.1% 0.2% 0.9% 22.5% 26.4% 1.7% 29.2% 31.9% 2.4% 33.8% 36.0% 5.5% 6.2% 5
Slide 18: Leading platform for trade financing and cross-border business needs
Overview Landscape Business Strategy 3Q 2018 Annexes 6 Leading platform for trade financing and cross-border business needs Leading position in Trade Financing (TF) and International Export-import settlement volume Settlement (USD bn) 35.2 34.2 − Market share: ~16.3% in TF 28.9 25.1 20.7 22.2 22.5
Slide 19: Leading platform for credit card services and products
Overview Landscape Business Strategy 3Q 2018 Annexes 7 Leading platform for credit card services and products Vietcombank is the No.1 bank in Vietnam for bank cards Credit Card payment volume − 30% market share by number of credit cards (issuing bank) (USD mn) 4,118 − 14% market share by number of
Slide 20: Extensive branch / ATM network supported by strong investment in technology
Overview Landscape Business Strategy 3Q 2018 Annexes 8 Extensive branch / ATM network supported by strong investment in technology Nationwide coverage and presence… …supported by a digital platform In 2017, Vietcombank opened 5 branches and 36 transaction offices Vietcombank aims to open approxi
Slide 21: Growth strategy and targets
4. Growth strategy and targets 20
Slide 22: Vision 2020 & Strategy
Overview Landscape Business Strategy 3Q 2018 Annexes Vision 2020 & Strategy To become number 1 bank in Vietnam, ranked among the 100 largest banks in the region and among the 300 biggest financial groups in the world, underpinned by global best practices I. Top 1 Retail and II. The local most III. N
Slide 23: Key strategic initiatives
Overview Landscape Business Strategy 3Q 2018 Annexes Key strategic initiatives Business Expansion Enhancement of corporate governance Focus on growing the retail customer segment supported by VCB’s Centralize organizational structure leadership in credit cards, largest ATM network in Vietnam, co
Slide 24: Key financial and operating targets
Overview Landscape Business Strategy 3Q 2018 Annexes Key financial and operating targets Scale Growth Total assets: USD 60bn Loan growth: ~ 15-16% Total ownership equity: USD 4.5bn Deposit growth: ~ 13-14% Quality Profitability LDR: maintain at 80-85% Interest income growth: ~16-17% LL
Slide 25: Capital raising plan by 2020
Overview Landscape Business Strategy 3Q 2018 Annexes Capital raising plan by 2020 Internal capital targets Long term capital raising plans (VND tn) 100 Target shareholders equity of ~USD 4.5bn by 88 2020 to comply with Basel II capital 79 adequacy requirements (CAR ≥ 9%) as well as have pursue qua
Slide 26: 3Q 2018 updates
Vietcombank Together for the future 5. 3Q 2018 updates N
Slide 27: 3Q 2018 - Recap of Macro economy and banking sector
Overview Landscape Business Strategy 3Q 2018 Annexes 3Q 2018 - Recap of Macro economy and banking sector Key Macro indices Banking sector and Top-5 performance GDP growth & key sectors’ growth (%) Growth vs 31 Dec 2017 6.98% Q3 2018 8.89% 6.89% 3.65% Sector, 8.6% 6.41% ACB, 11.0% Q3 2017 7.17% 7.25%
Slide 28: 3Q 2018 results – Balance sheet
Overview Landscape Business Strategy 3Q 2018 Annexes 3Q 2018 results – Balance sheet Total deposits (year-end, growth vs last year-end) Gross loans (year-end, growth vs last year-end) (VND tn) (VND tn) 628.0 708.5 773.4 +16.5% +10.1% 543.4 +16.3% +13.9% +3.2% 590.5 +8.4% +14.4% +6.9% +15.5% 460.8 50
Slide 29: 3Q2018 results – Balance sheet
Overview Landscape Business Strategy 3Q 2018 Annexes 3Q2018 results – Balance sheet Gross loans breakdown By term By customer Short term Segments with strongest growth: Long term 55% Individuals 36% 36% SME: +29.5% ytd Individual loans: +31.1% ytd Corporates 55% SMEs Mid-term 9% 8% Total deposit
Slide 30: 3Q2018 results – Income Statement
Overview Landscape Business Strategy 3Q 2018 Annexes 3Q2018 results – Income Statement Net interest and non interest income Net profit after tax (VND tn) (VND tn) 2.94% 21.9% 2.58% 2.64% 2.66% 2.65% 12.0% 14.7% 18.1% 16.6% 7,469 8,169 6,352 5,749 5,713 9.1 9.4 6.9 6.4 18,528 21,938 20,429 5.3 15,453
Slide 31: 3Q2018 results – Key ratios
Overview Landscape Business Strategy 3Q 2018 Annexes 3Q2018 results – Key ratios Quality 1Q16 2Q16 3Q16 FY16 1Q17 2Q17 3Q17 FY17 1Q18 2Q18 3Q18 Loans to deposits 79.70% 79.76% 78.14% 78.04% 81.99% 80.70% 77.92% 76.70% 79.02% 79.27% 81.19% Loan loss reserve coverage 138.61% 113.13% 126.87% 117.12% 12
Slide 32: VCB 2018 AGM targets
Overview Landscape Business Strategy 3Q 2018 Annexes VCB 2018 AGM targets 2017 2018 Key targets 2016 2017 Growth AGM targets Total assets 787,935 1,035,293 31.4% ~ 14% (VND bn) Credits 475,766 557,688 17.2% ~ 15% (VND bn) Deposits and valuable papers 600,738 726,734 21.0% ~ 15% (VND bn) PBT 8,578 11
Slide 33: Sector leading share price performance
Overview Landscape Business Strategy 3Q 2018 Annexes Sector leading share price performance 2015 – YTD 2018 share price performance(1) Trading statistics (Rebased index) Number of shares: 3,597,768,575 Last closed price (22/10/2018): 57,100 VND VWAP in the most recent 3 months: 61,300 VND 52
Slide 34: Annexes
Vietcombank Together for the future 6. Annexes
Slide 35: Equity investments overview
Overview Landscape Business Strategy 3Q 2018 Annexes Equity investments overview Total investments - VND 6,694 bn (USD 295m) as of 30 Jun 2018 Wholly – Owned Subsidiaries: VCBS, VCBL, VFC, VCB Laos, VCBR JVs and Partnerships: VCBF, Vietcombank Tower, VCB Money (TN Monex), VCB-Bonday-Ben Thanh,
Slide 36: Historical balance sheet
Overview Landscape Business Strategy 3Q 2018 Annexes Historical balance sheet (Figures in VND bn) FY ended 31 Dec 2013A 2014A 2015A 2016A 2017A 3Q2018 Cash and cash equivalents 6,060 8,323 8,519 9,692 10,103 9,857 Balances with SBV 24,844 13,267 19,715 17,382 93,616 30,489 Current accounts, deposits
Slide 37: Historical balance sheet (cont'd)
Overview Landscape Business Strategy 3Q 2018 Annexes Historical balance sheet (cont’d) (Figures in USD m) FY ended 31 Dec 2013A 2014A 2015A 2016A 2017A 3Q2018 Cash and cash equivalents 288 392 389 437 451 434 Balances with SBV 1,181 624 901 784 4,175 1,342 Current accounts, deposits and placements w
Slide 38: Historical income statement
Overview Landscape Business Strategy 3Q 2018 Annexes Historical income statement (Figures in VND bn) FY ended 31 Dec 2013A 2014A 2015A 2016A 2017A 3Q2018 Interest income 28,590 28,222 31,361 37,713 46,159 40,517 Interest expenses (17,516) (16,214) (15,908) (19,185) (24,221) (20,089) Net interest inc
Slide 39: Historical income statement (cont'd)
Overview Landscape Business Strategy 3Q 2018 Annexes Historical income statement (cont’d) (Figures in USD m) FY ended 31 Dec 2013A 2014A 2015A 2016A 2017A 3Q2018 Interest income 1,358 1,328 1,433 1,702 2,058 1,783 Interest expenses (832) (763) (727) (866) (1,080) (884) Net interest income 526 565 70
Slide 40: Important notice
Important notice: This presentation does not constitute a prospectus or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, or any offer to underwrite or otherwise acquire any shares in VCB or any other securities, nor shall they or