Vietnam Prosperity Joint-stock Commercial Bank · HOSE:VPB
Vietnam Prosperity Joint-stock Commercial Bank — FY2021 Earnings Presentation
39 slides from Vietnam Prosperity Joint-stock Commercial Bank's earnings presentation, February 2022
Slide 1: 2021 Results Announcement
2021 RESULTS ANNOUNCEMENT Stay Strong – Go Further Hanoi, February 2022 1
Slide 2: Economic and Business highlights in 2021; Review of 2021 Results; Business Outlook
Economic and Business highlights in 2021 Review of 2021 Results Business Outlook 2
Slide 3: Economic and Business Highlights in 2021
Economic and Business Highlights in 2021 3
Slide 4: Operating environment
Operating environment Vietnam suffered a challenging 2021 though positive Q4 signaled a promising recovery in 2022 Source: GSO ECONOMIC GROWTH FDI 38.0 Others, 15% Real estate, 31.1 9% Agriculture and 28.5 Taxes on forestry-fishery Industry & products less products, 12.36% 7.02 subsidises, Construct
Slide 5: Banking sector
Banking sector Fundamentals remained intact as banking sector affirmed the role of the bloodline of the economy CREDIT GROWTH NON-PERFORMING LOAN (%) 10.58% 13.53% 7.36% On balance sheet 7.36% 5.85% NPL ratio 13.89% 13.65% 7.88% 13.53% 6.44% 4.43% 3.81% 12.17% 2.46% NPL Ratio (incl. 2.95% 1.99% 1.91
Slide 6: Covid-19: Vietnam's year in review
Covid-19: Vietnam’s year in review 2 waves and a shift from a zero-virus strategy to co-living with the pandemic, Vietnam is believed to be on the right track to progress to the new normal Launched Nationwide Complete vaccination The 3rd wave began The 4th wave began COVID-19 vaccination Hanoi eased
Slide 7: Covid-19: Vietnam's year in review
Covid-19: Vietnam’s year in review Rapid step up in vaccination rates together with natural immunity from previous outbreaks lower the severity of COVID-19 cases FULLY VACCINATED RATE BY COUNTRY AT 31.12.2021 UAE 92% Portugal 90% Chile 87% Cuba 86% Singapore 84% Japan 79% China 78% France 75% Italy
Slide 8: Remarkable accomplishments in 2021 reinforced VPBank's leading position in the market
Remarkable accomplishments in 2021 reinforced VPBank’s leading position in the market CAR Leading position in the market CREDIT TO CUSTOMER TOI VND Bil VND Bil YTD: 18.9% Among Private JSC Banks in 6 consecutive years NIM CIR Leading position in the market Source: Unaudited Consolidated FS as at 31.
Slide 9: Achievements
: Announced the completion of the sale of stake in FE Credit to SMBC Group of Japan in all VPBank’s rating upgraded to by financial metrics Moody’s – the highest in the country with positive outlook to add 2021 Strong commitment in CSR with over financial support and values to customers. “Best Mobil
Slide 10: VPBank's sustainability framework (ESG)
VPBank’s sustainability framework (ESG) Our journey to sustainability is driven by our commitments to strengthening economic stability and creating value for society while conserving the environment. ESG index among 10 largest banks by market capitalization by Fair Finance Economic Environmental dev
Slide 11: Review of FY2021 Results
Review of FY2021 Results Consolidated Separate FE Credit Source: Unaudited Consolidated FS as at 31.12.2021
Slide 12: 2021 Financials Snapshot
2021 Financials Snapshot: More headwinds than tailwinds impacted our PBT target though other financial metrics remained consistently outperformed Growth Efficiency Quality Total Assets TOI CIR NPL Cir 11** 547,626 44,301 24.2% 3.58% VND Bil. VND Bil. Income from bad debt FY2020: 29.2% YoY: 30.7% YoY
Slide 13: Above-industry credit growth but high pressure in asset quality
Above-industry credit growth but high pressure in asset quality due to Covid-19 impacts especially in lower mass customer segments Credit to customers (VND Bil, %) NPL Cir 11, LLR on & off BS (%) Bank FE Credit LLR on & off BS NPL 18.9% 384,030 78.0% 77.5% 79.0% 19.6% 20.5% 22.3% 3.6% 3.0% 2.9% 2019
Slide 14: Strong capital base creates a foundation for future breakthroughs
Strong capital base creates a foundation for future breakthroughs 2021 marked a marvelous milestone in VPBank's equity of reaching nearly VND 90 tn, making us one of the largest JSC banks in Vietnam in terms of capital. Our CAR is among the highest in the market and approaches the average of leading
Slide 15: Mass & lower mass fragile segments were hurt during Covid
Mass & lower mass fragile segments were hurt during Covid 19 strike that damaged FE Credit’s performance and caused to consolidated profit behind target Unit: Bill VND,% 3,288 ( 478 ) 44,301 ( 19,002 ) 3,083 4,059 34,349 ( 10,719 ) 14,580 NII NFI Net gain from Income from Others TOI Provision OPEX P
Slide 16: Review of FY2021 Results
Review of FY2021 Results Consolidated Separate FE Credit Source: Unaudited Separate FS as at 31.12.2021
Slide 17: FY2021 – Financial highlights
FY2021 – Financial highlights Parent bank recovered its growth momentum impressively in Q4, resulting in the highest bottom line and leading efficiency ratios ever Unit: VND Bil,% TOI* 27,920 20,798 34.2% Credit to OPEX 308,618 256,836 20.2% 6,044 6,351 -4.8% customers Provision expense 7,863 5,141
Slide 18: Strong credit growth momentum in strategic segments
Strong credit growth momentum in strategic segments and cautiously managing asset quality beside proactively resolving bad debts Credit to customers*, NPL Cir 11 (%, VND Bil) * Including Corporate bonds 1.98% 1.79% 1.73% 1.78% 1.51% NPL Cir 11 20.2% Secured 7.7% Q-o-Q: 256,836 +8.0% Unsecured Q-o-Q:
Slide 19: Position for recovery in strategic segments
Position for recovery in strategic segments activities from the country reopening Credit portfolio (%, VND Bil) 20.2% • Adjusted product polices & focus on low-risk industries to mitigate adverse impact, resulting in positive performance 256,836 of secured lending. Mortgage disbursement compared w
Slide 20: Maintained an optimized funding while improving CASA
Maintained an optimized funding in the meanwhile of improving CASA Funding mix (by type) (%) CASA Ratio (%) 22.6% 22.1% Customer deposit* Non-Customer Funding** COF 4.8% 4.2% 4.1% 3.6% 3.3% 18.8% 397,252 17.3% 39.6% 34.7% 15.8% 27.9% 30.4% 24.2% 4Q20 1Q21 2Q21 3Q21 4Q21 4Q20 1Q21 2Q21 3Q21 4Q21 LDR,
Slide 21: NIM rebounded from its trough in 3Q21
NIM rebounded from its trough in 3Q21 thanks to constant improvement in funding cost NII (%, VND Bil.) YIELD, NIM (%) +29.4% Yield NIM 19,381 10.1% 14,974 8.2% +17.9% 5,082 5,209 4,674 5.3% 4,445 4,418 4.9% 4Q20 1Q21 2Q21 3Q21 4Q21 FY20 FY21 FY20 FY21 21
Slide 22: Non-NII increased its contribution above 30% in TOI
Ample Non - NII increased its contribution up to above 30% in TOI, reflecting the Bank’s target to diversify income sources Non-NII components (%, VND Bil.) Banking service activities (%, VND Bil.) -Gross Fee Income +46.6% 8,536 228 %Y-o-Y Other Non NII 4,796 +64.4% CARDs 3,160 22% 5,825 3,840 139 +
Slide 23: Pioneering in Digital transformation
Pioneering in Digital transformation & accelerating in Covid times brings competitive advantages Race App VPBank NEO plays as platform for financial and integrated services in the Bank's ecosystem, serving Retail & Corporate customers Optimize cost by migrating transactions onto digital platforms Di
Slide 24: VPBank's digital usage growth continued apace
Entitled to be “Best Mobile Banking Initiative”, VPBank’s digital usage growth continued apace through multiple digital platform #Registered customers on VPBank NEO %Online Disbursement 2.97 Mil ~35% 49% YoY Dec 2021 Number of transactions Transaction volume through Financial on VPBank NEO Ecompay-
Slide 25: Parent bank experienced impressive growth with bottom line growth above 50%
Parent bank experienced impressive growth with bottom line growth above 50% ROA* (%) ROE* (%) +0.6% +1.2% 2.8% 24.2% 25.4% 2.2% 18.8% 1.7% FY2019 FY2020 FY2021 FY2019 FY2020 FY2021 CIR* (%) PBT* (Bil) -9% 50.6% 38.0% 14,011 30.5% 21.7% 9,306 5,825 FY2019 FY2020 FY2021 FY2019 FY2020 FY2021 FY2021 vs.
Slide 26: Continued to reinforce our leading position
Continued to reinforce our leading position Efficient operation and capital use Strong capital base to support for future growth Among peer banks and the highest PBT growth within the last 3 years Among peer banks and SOE banks thanks to OPEX optimization, digitization and TOI growth Among peer bank
Slide 27: The most valuable private banking brand in Vietnam
THE MOST VALUABLE PRIVATE BANKNG BRAND IN VIETNAM TOP 250 PRIVATE BANKING BRAND IN THE WORLD - Brand Finance - VIETNAM HOUSE OF THE YEAR + Asia Risk- ENTERPRISE RISK MANAGEMENT - The Asian Banker - BEST BANK FOR CORPORATE SOCIAL RESPONSIBILITY = The Asian Money - = Global Business Outlook- TOP 20 LI
Slide 28: Review of FY2021 Results
Review of FY2021 Results Consolidated Separate FE Credit Source: Unaudited FE Credit FS as at 31.12.2021
Slide 29: Business performance
Business performance Unit: Million customers; Trillion VND Number of customers Disbursement amount No. Active Cust (#Mio) No. Cust Accumulated (#Mio) Q1 Disbursed (Trio VND) 6M Disbursed (Trio VND) No. CrC Cust (#Mio) 9M Disbursed (Trio VND) FY Disbursed (Trio VND) 10 12 13 73 63 67 5.9 55 45 42 4.1
Slide 30: Business performance
Business performance Unit: %; Trillion VND Funding Mix & COF TOI* & NIM** Valueable Paper (CD, Bond) Offshore Term Deposit (TD) TOI (Trio VND) Onshore Loan Other liabilities Capital & Funds NIM (%) *TOI = NII+NFI+FX COF (%) (Not include Net Other Income) 9.7% 12.0% 31.3% 27.2% 150% 18.00 ** NIM Incl
Slide 31: Business Outlook
Business Outlook
Slide 32: 2022 Outlook: Tiger Ready To Roar
2022 Outlook: Tiger Ready To Roar BANKING SECTOR Banking sector is expected to gain growth : 6 - 7% momentum in 2022 thanks to: • Credit growth recovery, boosting non-interest income • Attractive destination for FDI inflows and effective cost control • Public investment is promoted • Some banks has
Slide 33: VPBank Business Outlook in 2022
VPBank Business Outlook in 2022 Reclaiming the skies drives our 2022 business plan with ambitious aspiration to become Top 3 valuable bank in Vietnam Significant room for growth in scale Customer centric and increase customer • Quality growth strategy in parallel with base through digital channel an
Slide 34: Aspiration 2022 – Transformation from a traditional to digital bank
Aspiration 2022 – Transformation from a traditional to digital bank • Digital strategy development revolves around VPBank NEO to increase customer base • Continue to digitize customer journeys through VPBank NEO, VPBank NEOBiz and enhance customer experience • Deploy aggressively digital payment sol
Slide 35: FY2022 Financial Targets - Separate
FY2022 Financial Targets - Separate Rainbow after the rain FY21 Actual FY 2022 Observations (Bil., %) Trend(*) • The stronger degree of capitalization will be a 308,618 supportive variable for the bank in applying a higher credit growth quota in the year. 22.6% • Ecosystem expansion boost CASA growt
Slide 36: Appendix
=) Appendix
Slide 37: Definition of Indicators
Definition of Indicators 1. Cost to income ratio (CIR) OPEX / TOI 2. ROE (Consolidated) Profit after tax / Average Total Equity 3. ROA (Consolidated) Profit after tax / Average Total Assets 4. ROE (Bank Standalone) Profit after tax exclude income from subsidiaries / Average Total Equity exclude inve
Slide 38: Glossary
Glossary AMC Asset Management Company ROE Return on Equity CAR Capital Adequacy Ratio ROA Return on Asset CASA Current Account Savings Account SBV State Bank of Vietnam CIR Cost-to-Income Ratio SME Small and Medium-Sized Enterprises ENR Ending Net Receivables TOI Total Operating Income LLR Loan Loss
Slide 39: Disclaimer
Disclaimer The material in this presentation is general background information about VPBank’s activities current at the date of the presentation. It is information given in summary form and does not purport to be completed. It is not intended to be relied upon as advice to investors or potential inv
Vietnam Prosperity Joint-stock Commercial Bank (VPBank) — FY2021 Earnings Presentation on 6ix