Viet Nam International Commercial Joint Stock Bank · HOSE:VIB
Viet Nam International Commercial Joint Stock Bank — Q1 2024 Earnings Presentation
51 slides from Viet Nam International Commercial Joint Stock Bank's earnings presentation, Apr 24, 2024
Slide 1: 1Q24 Performance Announcement
viB™ 1024 Performance Announcement 24.04.2024
Slide 2: Agenda
Agenda Sd STRATEGY & BUSINESS PERFORMANCE 4 i FINANCIAL PERFORMANCE te TECHNOLOGY & DIGITAL RISK MANAGEMENT Mr. Phan Anh Tuan Business CFO Mr. Nguyen Viet Nam Head of Investor Relations cum Central Finance Manager Mr. Tran Nhat Minh Deputy CEO cum ClO Ms. Pham Tuong Vi Head of Risk Strategy
Slide 3: Strategy & Business Performance
STRATEGY & BUSINESS PERFORMANCE * Transformation journey * — Business performance
Slide 4: Transformation journey (2017-2026)
Transformation journey (2017-2026) Strategic positioning Transformation goals VIB vision To be a leading retail bank in Become the most innovative & Vietnam by quality & scale. Smart Growth in 10 year 2017 - 2026. customer-centric bank in Vietnam. To be a top banking partner for leading corporates a
Slide 5: Most retail-oriented bank in the country with fastest retail growth
Most retail-oriented bank in the country with fastest retail growth %Retail lending/Total credit 100% vip e 80% ACB e 60% S78 VPB TPB e HDB ven © MBB TCB cTG BID ® ° 40% Cc MSB e 50% SHB e % Retail growth 0% 10% 15% 20% 25% 30% 35% 40% Sources: Banks Financial statement (from 2016 - 2023)
Slide 6: Retail banking has clear goals and operating model
Retail banking has clear goals and operating model Transformation goals Strategic businesses * CAGR 20%-30% operational & Lending Mortgage, Auto loan, profit metrics Business loan Credit card Deposit & wealth Bancassurance Digital Payroll & transaction banking Business banking
Slide 7: Retail lending: balanced and optimal book allocation
Retail lending: balanced and optimal book allocation #1 Retail lending proportion (VND trillion, %) mRetail | Wholesale 267 269 234 204 172 % % 90% 85% 85% 87% 84% 2020 2021 2022 2023 1Q24 Retail products portfolio is well-balanced (%) Auto loan 14% 1Q24 Mortgages Retail portfolio 53% Business loan
Slide 8: Retail lending: fully legal secured mortgages, top auto loan
Retail lending: fully legal secured mortgages, top 2 auto loan Mortgage loans: 99.5% secured by red book/pink book Apartment loan program: Fast, easy and convenient (VND trillion) mResidential home loan Construction and renovation 118 120 110 Own your apartment, fast process, €asy repayment for indi
Slide 9: Retail lending: top auto market share, significant growth in Business loan
Retail lending: top auto market share, significant growth in Business loan Business loan is growing steadily (VND Trillion) Top leading auto loan market share 1Q24 (%) 47 48 37 29 1Q24Autoloan Peer 1- market share Buh 15 Peer 2- 14% 2020 2021 2022 2023 1924 Sources: VAMA, VIB
Slide 10: 85% VIB book is Retail loan, in which 91% are fully secured
85% VIB book is Retail loan, in which 91% are fully secured Total lending 100% 269 trillion VND Retail lending 85% 228 trillion VND . VIB has lowest concentration risk . Loan book is transparent, no hidden restructuring loans . 99.5% secured by red book/pink book for Mortgages loan . VIB IFRS is lea
Slide 11: Credit card: dynamic, robust & profitable growth
Credit card: dynamic, robust & profitable growth Total spending achieved all-time high Reached over 733k Card-in-force Total spending by credit card (VND trillion) Card new sale (thousand cards) 78 28 27 64 24 57 21 52 50 19 1Q23 2Q23 3Q23 4Q23 1024 1Q23 2023 3Q23 4Q23 1024 11
Slide 12: Credit card solution: new game changer | X-pay solution
Credit card solution: new game changer | X-pay solution GARMIN PAY Google Pay Launched in December 2023 Apple Pay & Garmin Pay Launched in March 2024 Samsung Pay To be launched in April 2024
Slide 13: Credit card: diversify customer segments
Credit card: diversify customer segments New product launched: IVY Card - First VIB credit card for college students * Target university students with unique features and benefits * Integration of credit and debit cards onto a single physical card. * Purpose: educate young people about financial lit
Slide 14: Corporate banking: focused on healthy customer segments
Corporate banking: focused on healthy customer segments Key customer segment Corporate banking * Companies with good financial performance and dominant positions in the market * — Top performers in private sector and to develop FDI segment SME banking * Supply chain suppliers & distributors, key cor
Slide 15: A trusted partner and top market maker in financial market
A trusted partner and top market maker in financial market Total offshore funds FX trading and swap volume Bond trading volume (1024) (1Q24) (1Q24) USD 1.1 billion USD 63 billion VND 84 trillion- Government bond * Maintain short-term trade loan and * VIB ranked 4th in FX swap volume * VIB was ranked
Slide 16: Financial Performance
FINANCIAL PERFORMANCE * — 1Q24 Highlights * — Profit & Loss * Balance sheet
Slide 17: At a glance
Ata glance 1Q24 Total assets 414 trillion + 1% YTD. Credit growth 1% PBT 2,502 billion -7% YoY. Revenue +8% YoY ROE 24% / CIR31% Top efficiency retail bank in industry NIM 4.5% LIR & DIR decreased over 2% YoY 29.5% dividend 6% cash paid in 1Q24 6.5% cash &17% stock dividend in process NPL 2.4% -0.2%
Slide 18: 1Q24 P&L: TOI grew 8%, while pre-provision profit grew 3%
1Q24 P&L: TOI grew 8%, while pre-provision profit grew 3% VND billion, % Net growth Accumulated 31.03.24 1Q23 2Q23 3Q23 4Q23 1Q24 YTD %YoY Total revenue 4,930 5,364 6,024 5,842 5,319 5,319 8% Net interest income 4,304 4,402 4,321 4,333 4.036 4,036 -6% Net fee income 618 786 1,062 860 754 754 22% WO
Slide 19: NIM, credit cost, non-interest ratio and CIR
NIM % (Last 12M) Credit cost / Total loans % (Last 12M) Non interest rate ratio / TOI % (Last 12M) CIR % (Last 12M)
Slide 20: 1Q24 Balance sheet: reflecting short-term industry trend
1Q24 Balance sheet: reflecting short-term industry trend VND billion, % Net growth Accumulated 31.03.24 1Q23 2Q23 3Q23 4Q23 1Q24 Balance %YTD Total assets 14,448 21,417 5,756 25,461 4,006 413,888 1% Loans to customers -2,767 5,501 10,543 21,125 1,363 267,709 1% Corporate bonds -375 -450 -128 -152 -1
Slide 21: LDR, SMLR, CAR, NSFR
LDR % SMLR % CAR % (Basel II) NSFR % (Basel III)
Slide 22: Outlook 2024: positive and prudent
Outlook 2024: positive and prudent Dynamic growth Profitable growth * Lending growth 20% * PBT 2024 growth 10% - 13% * Deposit growth 20%+, focus on * Leading ROE: 22% - 25% CASA * CIR: 30% - 32% * Card: reaching 1 million card & USS 5 billion spending * Banca: increase sales volume, quality & persi
Slide 23: Digital Banking
DIGITAL BANKING * Digital banking * Cyber security
Slide 24: Our technology and digital transformation focuses on 3D
Our technology and digital transformation focuses on“3D” D1: Data D2: Digital banking D3: Digitization Al first Mobile first Cloud first S: Security Zero trust cybersecurity 24
Slide 25: Innovative & customer-centric digital solutions
Innovative & customer-centric digital solutions TRANSACTION BANKING * Vib.com.vn ° MyVIB * VIB Checkout * ARexperience + MyVIBCorporate »° ADN voice + VIBVerse * Voice call center CARD DEPOSIT + X-pay (Apple Pay, + MyVIB Samsung Pay, + iDepo Google Pay) + Hi-Depo * MyVIB * Vib.com.vn * Vib.com.vn on
Slide 26: Digital banking architecture: Customer first
Digital banking architecture: Customer first Customers & Products Ecosystem Digital banking Banking digitalization Ecosystem Customers Products Touchpoints Digital banking Ops systems Core systems 3°4 parties Individual Lending Facebook MyVIB CRM Core banking Visa SME Deposit Google VIB Checkout ACL
Slide 27: Digital to the core
Digital to the core Digital banking with STRONG in-house development Cloud Native Mobile Apps Cloud Native Core Banking System % + TEMENOS = /aws The sofware specialist for banking and finance MyVIB Smart Sales \VA ~~ 1" aw Checkout iDepo a A A 4 VIB Checkout VIB iDepo Ambit Commercial Lender (ACL)
Slide 28: Digital strategy greatly helped us achieving business results
Digital strategy greatly helped us achieving business results “First in Digital” delighted our customers and created great ROI The first Cloud native mobile banking platform The first adoption of Social media platform on banking app The pioneer applied NLP in Banking services The first bank applied
Slide 29: And security compliance with smoothness customer experience
And security compliance with smoothness customer experience VIB support customer's biometric identification with fully 100% on Mobile banking and matching with 03 types of data source: 1. The chip data stored in the elD card issued by the Ministry of Public Security. 2. The identification account es
Slide 30: Digital banking: Key results
Digital banking: Key results 64% YTD New customers onboard via digital channel 1 69% YoY MyVIB transaction 123% YoY Online deposit spot balance * MyVIB 2.01 te vas ‘St dung sin phan me “Thanh tain nos don Tai khoan. “kno than tosn a 300,000,000 ¢ “knot het ung 70,000,000 4 Ta knodn vay -70,000,000 4
Slide 31: Digital banking: Strong growth with high penetration
Digital banking: Strong growth with high penetration # VIB digital transactions (Million) <3 Forecast 2024 % Digital transaction/Total RB transaction 500 96% a 91% 92% 93% 94% 340 82% 71% 5 130 7 14 3] 2018 2019 2020 2021 2022 2023 1Q24 2018 2019 2020 2021 2022 2023 1Q24 # Registered digital custome
Slide 32: Cybersecurity is on the background of 3D digital transformation
Cybersecurity is on the background of “3D” digital transformation viB™ S: Security Zero trust cybersecurity 32
Slide 33: Cybersecurity framework
Cybersecurity framework Compliance —_ Cybersecurity Technology program Cybersecurity strategy Process 33
Slide 34: Compliance
Compliance Government/ National Assembly of Vietnam Ministry of Information a Communications The State Bank of Vietnam International Standards The Circular security of information systems Cyberinformation security law Personal Data Protection Circular by Ministry of Information and Communications Se
Slide 35: Cybersecurity program
Cybersecurity program Data Protection and Privacy Strategy Data Protection Data Privacy g Governance, Operating Identity and Access Management Metrics and g Fy = Modeland Organization Identity and Access Management: Insider Threat Reporting 5 ‘a a £ £ i] Security Architecture and Engineering ; 8 z P
Slide 36: Cybersecurity strategy
Cybersecurity strategy Transformation objectives Digital banking MyVIB 2.0, MyVIB SME, Smart Agent, Smart Sales Security objectives Provide leadership on cyber risk, platforms and capabilities to support business objectives Security function Cyber Risk & Compliance Banking digitalization Core bankin
Slide 37: People - Security functions
People - Security functions Cyber Risk & Compliance Objective: Define, monitor and communicate the cyber security strategy, standard and awareness program; manage the cyber risk lifecycle. Security Solutions Objective: Administration for cyber operations and platforms; oversight identity governance,
Slide 38: Process — Security Policy
Process — Security Policy a uv < Ac| ‘a £ 3 u a] < i] x g = o uv < c] < £ wu > 3 0 Cybersecurity Strategy Information Security Policy Technology Risk Management Policy Technology Risk Assessment Procedure Third Party Security Management Policy Third Party Security Risk Assessment Procedure 38
Slide 39: Technology - Security technology landscape
Technology - Security technology landscape Security Management Identity & Access Management Application Security Data Protection Network Security a a © v a a] c | > a = ° c < r] a a] > = = s i] C7] u“ Endpoint Security Cloud Security 39
Slide 40: Risk Management
RISK MANAGEMENT * Risk management framework * Capital ° Asset quality ° Market risk & Liquidity
Slide 41: Sustainable risk management framework
Sustainable risk management framework Establishment of Strategic VIB Visions and Values Plan & Risk Appetite Strategy, Business Plan & Financial Plan Risk Strategy & Risk appetite Assess and Revise Strategic Plan by Division / Business Risk appetite by Division / Business Line Line Portfolio & Month
Slide 42: Vietnam Basel 15-year roadmap
Vietnam Basel 15-year roadmap Phase 1 (2015-2023) SBV actions * Pilot 10 banks for Phase 1 * Build legal framework * Assessment/reward/ discipline Phase 2 (2024-2030) SBV actions * Pilot 10 banks for Phase 2 * Build legal framework + Assessment/reward/ discipline VIB actions 1 of 10 banks joining SB
Slide 43: VIB will continue to be the pioneer in Advanced Basel II, Basel III
VIB will continue to be the pioneer in Advanced Basel Il, Basel Ill 2020 Build Basel engines from Moody Analytics & credit risk model with Experian Centralize and enrich data for Basel IRB implementation purpose. 2021 Go live 1st gen scorecards for unsecured products for credit approval; Limit based
Slide 44: Leverage on National Citizen Database (Project No 06)
Leverage on National Citizen Database (Project No 06) Context: Citizens’ authenticated identity as of Dec 2023: Physical Citizen ID Chip Card: 85 mil ID chip cards were issued by Ministry of Public Security (coverage of 100% eligible citizens) Digital App based identity card: VNeID app was set up fo
Slide 45: Capital: strength and resilience
Capital: strength and resilience CAR Basel Il Strong & sustainable growth in equity (VND trillion, %) ~——CAR Tier 1 ——CAR Total m= Equity ©—Equity growth YoY (%) 25% 20% 18% 16% 18% 12.3% 38 38 12.0% 11.8% 11.7% 11.8% 36 34 11.0% 11.0% 10.9% 10.7% 10.8% 33 : 1023 2023 3023 4023 1024 1023 2023 3023 4
Slide 46: Lowest exposure to high risk loans
Lowest exposure to high risk loans High risk loan Metrics Jun-23 Sep-23 Dec-23 Mar-24 Loan balance Total (VND bio) 234,678 245,707 266,346 268,626 Property trading Balance 1,701 1,698 1,674 2,297 %/ total loan 0.72 0.69 0.63 0.86 NPL (%) 0.00 0.00 0.00 BOT lending Balance 0 0 0 %/ total loan 0.00 0.
Slide 47: Seasonal factors impacted, restructure loan to support
Seasonal factors impacted, restructure loan to support NPL (VND billion, %) Restructured loan (VND billion, %) © INPL balance ——% NPL (SBV) mmCir02 ..Covid —% Restructured loans 279 0.34% 0.34% 0.30% 0.08% 0.27% ° 2.62% 2.45% 2.47% 2.20% 2.43% 9,040 9.676 8,584 ’ a? . pe ee ee ee 1Q23 2Q23 3Q23 4Q23
Slide 48: Write-off recovery is expected to have significantly contribution
Write-off recovery is expected to have significantly contribution Total Provision cost (VND billion) More than 4x write-off recover YoY (VND billion) = RB Others = Write-off recovery 23 318 325 117 183 209 135 . a | 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1Q24 48
Slide 49: Market risk & liquidity: full compliance at optimal level
Market risk & liquidity: full compliance at optimal level Key risk indicator Rule setter Hard limit VIB 1Q24 Status Liquidity risk LDR SBV < 85% 71.89% Complied SMLR SBV < 30% 25.31% Complied MLH SBV = 10% 20.46% Complied LCR-VND SBV = 50% 54.13% Complied LCR-FCY SBV = 10% (*) Complied NSFR Basel Il
Slide 50: Disclaimer
Disclaimer Certain statements made in this presentation are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or pe
Slide 51: Thank you!
Thank you!
Vietnam International Commercial Joint Stock Bank (VIB) — Q1 2024 Earnings Presentation on 6ix