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 (November 2018)
33 slides from Joint Stock Commercial Bank For Investment And Development Of Vietnam's investor presentation, November 2018
Slide 1: Solid Foundation for Future Value
SOLID FOUNDATION FOR FUTURE VALUE November 2018
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 2013-9M2018 ………………………………………. p. 19 SECTION 3 –
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 6.68% 6.81% 6.98% 5.98% 6.21% 5.42% 2013 2014 2015 2016 2017 9M2018 Source: GSO Source: GSO Soaring foreign investment and capital inflows Trad
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 23,800 23,600 23,400 23,200 23,000 22,800 22,600 22,400 22,200 Transaction rate Central rate Cap rate Free market rate Source:
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 133% 8.000 130% 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% 6.000 97% • Market share dominate
Slide 8: Banking sector overview
Banking sector overview 8 92% LDR • Loan to deposit ratio (LDR) has fairly increased but kept well 90.5% under requirements. 90% 88.0% 87.7% 87.8% • Non-performing loans (NPL) keep decreasing. 88% • Capital Adequacy Ratio (CAR) meets the SBV requirements. 86% 84.7% However, as the deadline for Basel
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 2018 2019-2020 efficienc
Slide 14: Organization Chart
Organization Chart ORGANIZATIONAL STRUCTURE BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM JSC GOVERNANCE STRUCTURE nee , SHARE- HOLDERS BOARD OF MANAGEMENT AND CHIEF ACCOUNTANT ASSETS & LIABILITIES MANAGEMENT COMMITTEE 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 854 Transaction Offices 1,825 ATMs 41,262 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 55,813 42,627 41,957 2,364 951 319 4,438 1,046 SOCBs Vietinbank 51,594 39,233 36,335 3,076 701 334 3,834 1,136 Vietcombank 43,787 27,631 34,032 2,707 73
Slide 17: Achievements
Achievements 17 Best Retail Bank in Vietnam House of the Year The Best Domestic Trade (2015, 2016, 2017, 2018) (2012, 2013, 2014, 2015, 2017) finance Provider 2017 The World's 500 most valuable brands The Vietnam Domestic The leading partner Technology and Operations bank in Vietnam Best Foreign E
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 2.73% Market Cap (VND Bn) VND 100,852 billion (USD 4.4 billion) Last closed price (31 Oct 2018) 29
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) 1,268,413 9,301 1,202,283 +6% +13% 8,665 +7% +22% 7,709 1,006,635 7,473 850,670 6,297 5,290 650,340 548,386 7,254 2013 2014 2015 2016 2017 9M2018 2013 2014 2015 2016 2017 2018E & 9M2018 Customer Deposits Custom
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) 968,752 SOE 2017 866,885 11.8% 4,3% 22% Retail 723,697 31,1% 61.5% 598,434 58.0% 54.8% 38,5% Corporate 445,693 391,035 57.0% 57.6% 9.4% 7.6% 2,1% 56.4% 11.9% FDI 13.6% 13.2%
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 2017 Agriculture & forestry 2.37% in 2013 to 1.49% in 9M2018. Mining Others 4,6% • Loan portfolio by industry improved positively by increasing
Slide 23: Robust Deposit Growth
Robust Deposit Growth 23 Customer Deposits by Term Deposit Breakdown (VND billion) 953,513 +10.9% FI 2017 859,985 16.5% 11% 726,022 18.6% +26% 17.2% 564,583 18.5% 440,472 338,902 17.8% 82.8% 18.4% 80.7% Corporate 31% 55% Individuals 82.1% 80.9% 81.8% 81.0% 0.6% 0.4% 0.7% 0.7% 0.7% 0.7% 2013 2014 201
Slide 24: Efficient Financial Performance
Efficient Financial Performance 24 Total Operating Income Total Operating Expense (VND billion) 39.017 (VND billion) 19,5% 32.866 15.504 30.434 20,3% 13.527 24.712 11.087 11.247 21.907 19.164 8.624 7.391 2013 2014 2015 2016 2017 9M2018 2013 2014 2015 2016 2017 9M2018 Net Interest Income Non-Interest
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 deposits Other income Securities income From finance leases From debt securities 2017 Investment income 2017 2% 0% From guarantee 8% 11%
Slide 26: Key Ratios
Key Ratios 26 Asset quality 2013 2014 2015 2016 2017 9M2018 Loans to deposits 115% 101% 106% 100% 101% 102% Loan loss reserve coverage 69.5% 73.1% 74.8% 69.7% 80.7% 87.0% (Provision/NPL) NPL ratio 2.37% 2.03% 1.68% 1.99% 1.62% 1.76% Credit Cost 1.77% 1.67% 1.18% 1.39% 1.87% 2.09% Profitability 2013
Slide 27: Retail Banking Performance
Retail Banking Performance 27 Retail Deposits (VND billion ) Retail Loans (VND billion) 553,296 27.3% 523,643 +6% 291,512 435,283 238,526 +22% 44.1% 355,017 185,215 253,704 140,521 79,777 2014 2015 2016 2017 9M208 2014 2015 2016 2017 9M2018 Customer Base (thousand people) Retail Loans Breakdown (VND
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 68 process and business model. Understanding our customers, 70 breaking down product silos and enhancing the customer’
Slide 29: Update 9M2018
Update 9M2018 29 Income Statement (VND billion) 2016 2017 9M2018 Net interest income 23,394 30,955 25,616 Net fee & commission income 2,513 2,966 2,541 Total operating income 30,399 39,017 32,866 Operating expense 13,532 15,504 11,247 Opt. profit before provision charges 16,867 23,512 21,620 Provisi
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