35 slides from Joint Stock Commercial Bank For Foreign Trade Of Vietnam's earnings presentation, Jul 26, 2022
Slide 1: Vietcombank - Together for the future
Vietcombank Together for the future | Vietcombank July 2022 NX
Slide 2: Table of contents
Table of contents 1. Vietcombank overview 2. Business landscape 3. Key company highlights 4. Growth strategy and targets 5. 2Q22 Results 6. Annexes 1
Slide 3: 1. Vietcombank overview
Vietcombank Together for the future 1. Vietcombank overview
Slide 4: A leading player in Vietnam's banking sector
A leading player in Vietnam's banking sector Market position in Vietnam by(1): Universal banking model #1 Market capitalisation US$ 16.7 bn across a wide range of financial services spanning #2 Ownership US$ 4.8 bn retail, corporate and Capital financial institutional clients US$ 62.1 bn #3 Total
Slide 5: Strong heritage and track record of achievements
Strong heritage and track record of achievements Corporate milestones Key shareholders Foreign Domestic Today investor, investor, 8.06% 2.14% Most reputable bank brand name in Vietnam Mizuho, 2020 15.00% Exclusive Bancassurance partnership with FWD 2019 SBV, 74.80% Share purchased by Singapore Sover
Slide 6: Corporate structure
Corporate structure Vietcombank Financial Services Non-Financial Services Other Financial Commercial Banking Investment Banking Real Estate Services Vietcombank Laos Vietcombank Vietcombank VCB Tower 198 (100%) Securities (VCBS) Leasing (VCBL) (70%) (100%) (100%) Vietcombank Fund Vietnam Finance Co.
Slide 7: Experienced management team and BoD with deep industry expertise
Experienced management team and BoD with deep industry expertise CEO profile Mr. Pham Quang Dzung, Chairman, has been with VCB since 1994 and has over 20 years of banking and finance experience in Vietnam. Before being appointed the Chairman, he held various positions in VCB, including member of t
Slide 8: 2. Business landscape
Vietcombank Together for the future 2. Business landscape N
Slide 9: Favorable macroeconomic environment
Favorable macroeconomic environment Strong GDP growth GDP growth by sector (%) (%) 6.68 6.80 7.08 7.02 6.8% 7.1% 7.0% 5.42 5.98 6.20 6.00 6.7% 6.0% 6.2% 2.91 2.58 5.4% 2.9% 2.6% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E 2013 2014 2015 2016 2017 2018 2019 2020 2021 Vietnam Thailand Malaysia
Slide 10: Banking sector overview
Banking sector overview Overview Large number of banks (~90); of which the 4 biggest banks(*) occupy 45%-50% of deposit, lending and total assets. Industry restructuring plan commencing in 2011 has helped to (i) enhance credit control, (ii) increase the industry financial transparency through re
Slide 11: 3. Key company highlights
Vietcombank Together for the future 3. Key company highlights NX
Slide 12: Key company highlights
Key company highlights 1 Strong brand positioning driving robust deposit growth 2 Growing loan portfolio with increasing retail component Diversified loan portfolio with a focus on high-growth sectors with good credit 3 quality 4 High asset quality and strong capital base 5 Consistently strong profi
Slide 13: Strong brand positioning driving robust deposit growth
1 Strong brand positioning driving robust deposit growth Customer deposits are the largest source of total funding, accounting for ~80% Growing market share (10.4%) on the back of strong nationwide brand recognition and loyalty 2021 deposit balance: Over VND 1,135 tn, up 10% compared with 2020
Slide 14: Growing loan portfolio with increasing retail component
2 Growing loan portfolio with increasing retail component Market share ~9.5% 2021: Total loans: ~VND 961 tn, increased 14% against 2020; recorded 16.8% CAGR between 2014 - 2021 Loan composition − Growing loan portfolio with a focused approach to increase loans to retail banking − Long and medi
Slide 15: Diversified loan portfolio with a focus on high-growth sectors
3 Diversified loan portfolio with a focus on high-growth sectors with good credit quality Lending breakdown By sector By loan group By term 0.3% 0.3% 0.4% 0.6% 42% 38% 37.4% 41.1% 46% 45% 43.1% 42.9% 3% 4% 8.4% 8% 3% 6.6% 5.1% 4.2% 5% 3% 5% 4% 5% 9% 98.9% 99.0% 99.0% 4% 98.4% 6% 19% 24% 18% 16% 54.2
Slide 16: High asset quality and strong capital base
4 High asset quality and strong capital base FY ended 31 December 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021 Loans to deposits 76.58% 77.36% 78.04% 76.70% 78.79% 79.14% 81.37% 84.62% Loan loss reserve coverage (Provision/NPL) 94.43% 120.63% 117.12% 130.67% 165.41% 179.5% 368.0% 424.36% NPL ratio
Slide 17: Consistently strong profitability and performance
5 Consistently strong profitability and performance FY ended 31 December 2014A 2015A 2016A 2017A 2018A 2019A 2020A 2021 Net interest margin 2.40% 2.57% 2.64% 2.66% 2.95% 3.13% 2.92% 3.16% Non-interest income/Operating Income 32.0% 27.1% 25.5% 25.4% 27.67% 24.39% 26.04% 25.26% Pre-Provision Operating
Slide 18: Leading platform for trade financing and cross-border business needs
6 Leading platform for trade financing and cross-border business needs Leading position in Trade Financing (TF) and International International settlement volume Settlement (USD bn) − Market share: ~15.36% in TF 102.67 78.4 85.4 83 69.4 − Solid customer-base include country’s top importers & 44.7
Slide 19: Extensive branch / ATM network supported by strong investment in technology
8 Extensive branch / ATM network supported by strong investment in technology Nationwide coverage and presence… … with rapid digitalization process 121 Branches 456 Developed a wide range of products and services that are distributed through digital channels VCB Digibank is now the Omni channel
Slide 20: 4. Growth strategy and targets
4. Growth strategy and targets 19
Slide 21: Strategic plan to 2025, vision to 2030
Strategic plan to 2025, vision to 2030 No. 1 bank in Vietnam, one of the 100 largest banks in Asia, one of the 300 largest banking and financial groups in the world, one of the 1000 largest listed companies in the world and make great contributions to the development of Vietnam No. 1 in No. 1 in Bes
Slide 22: Key financial and operating targets for 2025
Key financial and operating targets for 2025 Scale Growth Total assets: ~ 14% Loan growth: ~ 14% Total shareholders equity: ~ 25% Deposit growth: ~ 13% Quality Profitability LDR: maintain at 80-85% Interest income growth: ~ 15% LLRC: above 100% Non-interest income growth: ~19% NPL:
Slide 23: 5. 2Q22 Results
Vietcombank Together for the future 5. 2Q22 Results N
Slide 24: 2Q22 Highlights
2Q22 Highlights NON FINANCIAL HIGHLIGHTS Loans Deposits 1,101 tn + 14.6% ytd 1,195 tn + 5.3% ytd VCB rating upgraded by S&P to BB, outlook Stable. VCB now holds highest ranking among Vietnam banks by S&P VCB received Best Investor Relations Bank – Vietnam 2021 and Profit Before Tax (1Q22) Best Digit
Slide 25: Strong credit growth in line with economic recovery, asset quality well controlled
Strong credit growth in line with economic recovery, Asset quality well controlled, CASA remained high 14.6% 1,150 14.4% 16.0% 1,101 1,100 11.5% 14.0% 1,050 12.0% 9.8% 10.0% 1,000 7.1% 922 8.0% 950 Loans grew strongly to ~1,101 tn, ~14.6% growth ytd 6.0% • Growth by segment: Corporate (~13% ytd), Re
Slide 26: Solid profitability, #1 in market by PBT
Solid profitability, #1 in market by PBT +2,294 +881 15,972 -5,816 12,797 -2,733 7,423 2Q22 Total Operating income was 17.3tn, ~28% yoy Income Key driver: interest income (~ 17% yoy), FX income (48% yoy) Structure Fee income down by 12% as an offset for growing CASA 2% 100.0%2Q22 Operating expenses
Slide 27: Key ratios
Key ratios Quality 1Q2020 2Q2020 3Q2020 2020A 1Q2021 2Q2021 3Q2021 2021 1Q2022 2Q2022 Loans to deposits 80.8% 78.5% 79.9% 81.4% 85.0% 87.7% 84.5% 84.6% 87.2% 92.1% Loan loss reserve coverage 235.0% 264.4% 215.1% 368.0% 279.0% 351.8% 242.9% 424.4% 372.6% 505.9% (Provision/NPL) NPL ratio 0.82% 0.80% 1
Slide 28: VCB 2022 targets
VCB 2022 targets 2022 Growth Key targets 2020 2021 2021 growth Target Total assets 1,326,230 1,414,673 6.67% 8% (VND bn) Credits 845,128 972,580 15.08% Max 15% (VND bn) Deposits and valuable papers 1,053,354 1,152,712 9.43% ~9% (VND bn) PBT 23,050 27,389 19% Min 12% (VND bn) NPL ratio 0.62% 0.63% <1
Slide 29: 6. Annexes
Vietcombank Together for the future 6. Annexes
Slide 30: Equity investments overview
Equity investments overview Total investments - VND 5,586 bn (USD 245m) as of 31 Dec 2021 Wholly – Owned Subsidiaries: VCBS, VCBL, VFC, VCB Laos, VCBR JVs and Partnerships: VCBF, Vietcombank Tower, VCB Money (TN Monex), VCB-Bonday-Ben Thanh, etc Equity Investments: MB, PJICO, etc VCBS, VCB
Slide 31: Historical Balance sheet (VND bn)
Historical Balance sheet FY ended 31 Dec (Figures in VND bn) 2017 2018 2019 2020 2021 2022Q1 2022Q2 Cash and cash equivalents 10,103 12,792 13,778 15,095 18,012 14,868 15,098 Balances with SBV 93,616 10,846 34,684 33,139 22,507 38,888 28,814 Current accounts, deposits and placements with banks 232,9
Slide 32: Historical Balance sheet (USD m)
Historical Balance sheet FY ended 31 Dec (Figures in USD m) 2017 2018 2019 2020 2021 2022Q1 2022Q2 Cash and cash equivalents 451 551 595 657 791 643 651 Balances with SBV 4,175 467 1,497 1,442 988 1,681 1,242 Current accounts, deposits and placements with banks 10,389 10,786 10,767 11,658 9,911 8,42
Slide 33: Historical Income statement (VND bn)
Historical Income statement (Figures in VND bn) FY ended 31 Dec 2017 2018 2019 2020 2021 2022Q1 2022Q2 Interest income 46,159 55,864 67,724 69,205 70,749 19,338 40,009 Interest expenses (24,221) (27,455) (33,147) (32,920) (28,362) (7,362) (15,236) Net interest income 21,938 28,409 34,577 36,285 42,3
Slide 34: Historical Income statement (USD m)
Historical Income statement (Figures in USD m) FY ended 31 Dec 2017 2018 2019 2020 2021 2022Q1 2022Q2 Interest income 2,058 2,408 2,915 3,011 3,106 836 1,724 Interest expenses (1,080) (1,183) (1,427) (1,432) (1,245) (318) (657) Net interest income 978 1,225 1,488 1,579 1,861 518 1,067 Service fee in
Slide 35: 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