Joint Stock Commercial Bank For Investment And Development Of Vietnam · HOSE:BID
Joint Stock Commercial Bank For Investment And Development Of Vietnam — BIDV — Investor Presentation (April 2019)
33 slides from Joint Stock Commercial Bank For Investment And Development Of Vietnam's investor presentation, April 2019
Slide 1: Solid Foundation for Future Value
SOLID FOUNDATION FOR FUTURE VALUE April 2019
Slide 2: Content
Content 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 2013-2018 ………………………………………. p.19 SECTION 3 – SHA
Slide 3: Vietnam Macro Economy: Macroeconomic Highlights
1 VIETNAM MACRO ECONOMY Macroeconomic Highlights
Slide 4: Favorable Macroeconomic Environment
Favorable Macroeconomic Environment 4 Strong GDP growth, one of the highest in Emerging Markets Inflation below government target of 5% for the last 4 years 7.08% 6.68% 6.81% 5.98% 6.21% 2014 2015 2016 2017 2018 Source: GSO Source: GSO Soaring foreign investment and capital inflows Trade Surplus hit
Slide 5: Favorable Macroeconomic Environment
Favorable Macroeconomic Environment 5 Foreign exchange rate has been quite stable for recent years Liquidity was stable, despite of increased Interbank interest rate USD/VND Trading rate Central rate Ceiling rate Source: SBV VN-Index was among the top 6 fastest growing global stock indexes Further i
Slide 6: Vietnam Macro Economy: Banking Industry Review
1 VIETNAM MACRO ECONOMY Banking Industry Review
Slide 7: Banking sector overview
Banking sector overview 7 VND tn. Credit Growth • Banking restructuring plan commenced with bank consolidation 8.000 126% 130% 140 and credit control enhancement: Within 4 years, the number of commercial banks has been reduced from 42 to 34. 7.000 111% 120 101% 103% • Market share dominated by State
Slide 8: Banking sector overview
Banking sector overview 8 LDR 89% 88.0% • Loan to deposit ratio (LDR) has fairly increased but kept well 87.7% 87.8% 88% 87.4% under requirements. 87% • Non-performing loans (NPL) keep decreasing. 86% • Capital Adequacy Ratio (CAR) meets the SBV requirements. 85% 84% 83.6% However, as the deadline f
Slide 9: BIDV Overview: BIDV Profile
2 BIDV OVERVIEW BIDV Profile
Slide 10: Differentiating BIDV: A leading bank in Vietnam market
Differentiating BIDV 10 A le a ding ba nk in Vietna m ma r ket Customer base Financial Capacity # 1 by Customer Loans # 1 by Total Assets # 1 by Customer Deposits # 3 by Owners’ Equity # 3 by Profit before Tax Payment system BIDV Network • Settlement bank for Vietnam stock market # 2 by National Net
Slide 11: Milestones
Milestones 11 60 years of steady growth Converted to BIDV JSC Charter Capital: VND 23,012 bn Charter capital raised to VND 14,600 bn Charter capital raised to VND 34,187 bn Name changed to Began operating as a Charter capital raised to Bank for Investment and commercial bank VND 8,756 bn Constructio
Slide 12: Mission, Vision & Core Value
Mission, Vision & Core Value 12 Committe d to delivering the bes t va lue Mission Reliable Customer • Best services for customers Orientation Quality • Best value to shareholders • Professional working environment for employees • Pioneer in community development activities Core Value Vision Social R
Slide 13: 2016 – 2020 Strategy
2016 – 2020 Strategy 13 1 2 3 Continuing to be the Improving financial Improving credit leading commercial capacity, diversifying quality, taking serious bank in scale, market ownership structure, measures to collect shares, quality, complied with Basel II, NPLs, off-balance efficiency and doubling
Slide 14: Organization Chart
Organization Chart ORGANIZATIONAL STRUCTURE BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM JSC GOVERNANCE STRUCTURE MEETING OF — SHARE- HOLDERS —— bilarac cola eaetel —= — —— — =< ae CREDIT COMMITTEE OTHER COMMITTEES
Slide 15: Strength from Diversified Business
Strength from Diversified Business 15 Extensive Domestic Network Coverage for both Traditional and Modern International Expansion Distribution Channels* 190 Domestic Branches 01 Oversea Branch 871 Transaction Offices 1,823 ATMs 60,339 POS Internet Banking Mobile Banking • RMA with 1,156 banks and 46
Slide 16: BIDV's Market Position
BIDV’s Market Position 16 Unit: USD mm Total Assets Loans Deposits Equity Profit before Profit before Tax Market Cap Network Provision and Tax BIDV 57,111 43,005 43,046 2,373 1,234 328 5,309 1,063 SOCBs Vietinbank 50,647 37,620 35,919 2,934 630 236 3,531 1,125 46,715 27,483 34,880 2,705 1,116 636 10
Slide 17: Achievements
Achievements 17 Best Retail Bank in Vietnam House of the Year Best Domestic Trade Finance (2015, 2016, 2017, 2018, 2019) (2012, 2013, 2014, Provider in Vietnam Top 500 Global Banking Brand Best Payment Merchant Service 2015, 2017, 2018) Top 3 global banks with the largest Mortgage Product of the Y
Slide 18: BIDV Shares
BIDV Shares 18 Share Price Performance Ticker BID Listed on Hochiminh Stock Exchange Listing Date 24th January 2014 Outstanding Volume (shares) 3,418,715,334 Free-floating ratio 4.72% Foreign ownership 3.12% Market Cap (VND Bn) VND 122,048 billion (USD 5.33 billion) Last closed price (03 April 2019)
Slide 19: BIDV Overview: BIDV Performance
2 BIDV OVERVIEW BIDV Performance
Slide 20: Steady balance sheet growth
Steady balance sheet growth 20 Total Assets Profit Before Tax (VND billion) (VND billion) 1,313,038 +11% 9,473 +19% 1,202,283 +9% 8,665 +9% 7,473 7,709 1,006,635 850,670 6,297 650,340 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Customer Deposits Customer Loans (VND billion) (VND billion) 989,6
Slide 21: Growing loan portfolio focusing on retail component
Growing loan portfolio focusing on retail component 21 Trend in Gross Customer Loans Loan portfolio by customers (VND billion) 988,739 2018 866,885 14.1% 22% 723,697 Retail 32,5% Corporate 61.8% 598,434 38,5% 58.0% 54.8% 445,693 57.0% 57.6% 9.4% 7.2% 2,2% 11.9% FDI 13.6% 14.0% 32.6% 30.9% 29.4% 33.2
Slide 22: Diversified focusing on high-growth sector and good credit quality
Diversified focusing on high-growth sector and good credit quality 22 Loan portfolio by industry • Credit quality was improved with NPL rate decreasing from 2018 Agriculture & forestry 2.03% in 2014 to 1.9% in 2018. Mining Others 4,6% • Loan portfolio by industry improved positively by increasing 14
Slide 23: Robust Deposit Growth
Robust Deposit Growth 23 Customer Deposits by Term Deposit Breakdown (VND billion) 989,671 FI 2018 859,985 16.4% +15.1% +22% 11% 726,022 18.6% 17.2% 564,583 18.5% 440,472 17.8% 82.9% 55% Individuals 80.7% Corporate 35% 82.1% 80.9% 81.8% 0.4% 0.7% 0.7% 0.7% 0.8% 17.2% 2014 2015 2016 2017 2018 Specifi
Slide 24: Efficient Financial Performance
Efficient Financial Performance 24 Total Operating Income Total Operating Expense (VND billion) 44.483 (VND billion) 19,4% 39.017 +14% 17,0% 16.167 15.504 +4% 30.434 13.527 24.712 11.087 21.907 8.624 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Net Interest Income Non-Interest Income (VND billi
Slide 25: Efficient Financial Performance
Efficient Financial Performance 25 Non-interest income accounted for bigger proportion in TOI Interest income from loans to customers is driven factor in NII From finance leases Others Other income Securities income From guarantee From deposits 2018 Investment income 2018 From debt securities 3% 2%
Slide 26: Key Ratios
Key Ratios 26 Asset quality 2013 2014 2015 2016 2017 2018 Loans to deposits 115% 101% 106% 100% 101% 99.9% Loan loss reserve 69.5% 73.1% 74.8% 69.7% 80.7% 66.0% coverage (Provision/NPL) NPL ratio 2.37% 2.03% 1.68% 1.99% 1.62% 1.90% Credit Cost 1.77% 1.67% 1.18% 1.39% 1.87% 2.04% Profitability 2013 2
Slide 27: Retail Banking Performance
Retail Banking Performance 27 Retail Deposits (VND billion ) Retail Loans (VND billion) 572,320 22.6% 523,643 +9% 319,630 +19% 435,283 41.5% 269,328 355,017 185,215 253,704 140,521 79,777 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Customer Base (thousand people) Retail Loans Breakdown (VND bi
Slide 28: Digital Banking
Digital Banking 28 Digital Strategy: To use Digital Banking to enhance business mm BIDV E-banking number of transactions performance by transforming customer journey, operational 80 82 process and business model. Understanding our customers, 70 (+ 100% )YoY breaking down product silos and enhancing
Slide 29: Update 2018
Update 2018 29 Income Statement (VND billion) 2016 2017 2018 Net interest income 23,394 30,955 34,956 Net fee & commission income 2,513 2,966 3,551 Total operating income 30,399 39,017 44,483 Operating expense 13,532 15,504 16,117 Opt. profit before provision charges 16,867 23,512 28,366 Provision e
Slide 30: Share Offering Plan to Foreign Investors: Overall Plan
3 SHARE OFFERING PLAN TO FOREIGN INVESTORS Overall Plan
Slide 31: Projected Shareholding Structure
Projected Shareholding Structure 31 STAGE 1: 2011 - 2018 STAGE 2: 2019 - 2020 STAGE 3: From 2021 • IPO finished on December, 2011 • Issuing shares to foreign investors • Additional public offering • Transforming to Joint Stock (total up to 30%): • Issuing additional shares to foreign Commercial Bank
Slide 32: Disclaimer
Disclaimer 32 This Presentation (the Presentation) has been prepared by 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
Slide 33: For Further Information
For Further Information Investor Relations – Board of Directors Secretariat Bank for Investment and Development of Vietnam (BIDV) 22nd Floor, BIDV Tower, 35 Hang Voi St., Hoan Kiem Dist., Hanoi, Vietnam. Email: nhadautu@bidv.com.vn; bidv.ir@bidv.com.vn Tel: +84.24.22201099 Fax: 84.24.22225329