Viet Nam International Commercial Joint Stock Bank · HOSE:VIB
Viet Nam International Commercial Joint Stock Bank — Q2 2024 Earnings Presentation
40 slides from Viet Nam International Commercial Joint Stock Bank's earnings presentation, 2024
Slide 1: Investor Meeting Q2.2024
VIB INVESTOR MEETING Q2.2024
Slide 2: Macro & Market Outlook
MACRO & MARKET OUTLOOK * Overview * Outlook
Slide 3: Macroeconomics outlook is positive in 2024
Macroeconomics outlook is positive in 2024 Vietnam GDP expected to recover in 2024 (%) World GDP expected continues to slow down in 2024 (%) 8.0 7.0 6.5 5.1 L : dis 2019 2020 2021 2022 2023 2024F 2019 2021 2022 2023 2024F Sources: World Bank, IMF, HSBC
Slide 4: CPI continues to be well-controlled in 2Q24
CPI continues to be well-controlled in 2Q24 CPI average YoY (%) 44 42 42 43 38 35 33 | | 3Q22 4Q22 1023 2023 3023 4Q23 1024 2Q24 Sources: GSO, VIB, MOF CPI basket of goods % YoY CPI ( average YoY) 4.34% Food & Catering services 448% Housing & Construction materials 5.62% Transport 4.28% Education 8.
Slide 5: Exchange rate increases, but will be stabilized by supportive factors
Exchange rate increases, but will be stabilized by supportive factors Exchange rate (VND/USD) Foreign exchange remains stable (USD billion) 108 100 ; ; 2020 2021 2022 2023 1H24 2024F 2019 2020 2021 2022 2023 1H24 Trade surplus supports the economy (USD billion) FDI disbursement (USD billion) Forecas
Slide 6: Largest trade partners of Vietnam
Largest trade partners of Vietnam Europe USA Export: 96 nom x . Import: 15 Port: Latin America Export: 8 Import: 6 Source: Vietnam General Statistics Office China Export: 56 9 Import: 110 Other Asia Export: 12 Import: 21 Unit: Billion USD) Korea Export: 22 Import: 56 9 Q2apan Export: 20 Import: 23
Slide 7: Banking: Credit growth expected to align with SBV growth target
Banking: Credit growth expected to align with SBV growth target Credit growth (%): Expected to recover in 2024 Deposit growth (%): In line credit growth, stable liquidity ci Target 2024 Forecast 2024 15.0 158 37 yaa 185 M4 BT. 145 130 14.0 fo 84 Do 2019 2020 2021 2022 2023 1H24 2019 2020 2021 2022 2
Slide 8: VIB Outlook 2024
VIB Outlook 2024 Growth Lending: 16%-20% growth in FY24 (current room given: 16.1%) in all business divisions Deposit: 16%-20% growth, lower DIR, increase CASA Card: Significant growth, both acquisition & usage, on both Digital & Physical channels Banca: Growth strongly focusing on quality & persist
Slide 9: Business Strategy Update
BUSINESS STRATEGY UPDATE ¢ VIB strategy * Retail Banking * Corporate Banking ° Treasury
Slide 10: Clear and consistent VIB strategic directions and goals
Clear and consistent VIB strategic directions and goals Strategic positioning ° Tobea leading retail bank in Vietnam by quality & scale. * To bea top banking partner for leading corporates and institutionals. Transformation goals | ° To pursuit 20%-30% annual growth in key business parameters, custo
Slide 11: Most retail-oriented bank with fastest retail growth: 2017-2023
Most retail-oriented bank with fastest retail growth: 2017-2023 %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 2017 - 2023) 12
Slide 12: Retail banking strategy
Retail banking strategy Strategic positioning . To be a trusted retail bank of choice targeting middle income, affluent and HNW customers providing wide range of simple and best fit products and services focusing on key businesses including mortgage, business loans, auto loans, personal loans, credi
Slide 13: Retail lending: balanced and optimal book allocation
Retail lending: balanced and optimal book allocation #1 Retail lending proportion (VND trillion, %) Retail products portfolio is well-balanced (%) mRetail — Wholesale 280 267 234 Card & Others 204 13% 172 Auto loan 13% 2Q24 Mortgages Retail portfolio 53% of 90% 85% 87% Business loan 84% 21% 2020 202
Slide 14: Retail lending: fully legal secured mortgages
Retail lending: fully legal secured mortgages Mortgage portfolio dynamics (VND trillion) m Residential home loan Construction and renovation 118 122 : 110 . 86 68 80% 80% 77% 73% 67% 2020 2021 2022 2023 2024 Key mortgage stats 99.5% secured by red book/pink book Popular LTV range 50%-70% Popular tic
Slide 15: Mortgage campaigns have been uniquely launched nation wide
Mortgage campaigns have been uniquely launched nation wide VIB - Leading Retail Bank © Top highest rating group by SBV @ Top 6 best listed banks for 3 consecutive years (Forbes, 2021-2023) © Highest retail lending proportion ©& Top leading Auto loan market share Own your apartment - Fast process, ea
Slide 16: Retail lending: top auto market share, significant growth in Business loan
Retail lending: top auto market share, significant growth in Business loan Business loan maintains steady growth (VND Trillion) Top leading auto loan market share 2Q24 (%) 47 48 37 29 2Q24Autoloan — Peer1- market share 16% 15 Peer 2— 12% 2020 2021 2022 2023 2Q24 Sources: VAMA, VIB 17
Slide 17: Funding: Optimized COF to support lending activities
Funding: Optimized COF to support lending activities Stable funding with robust contribution from RB Customer Deposit (VND Trillion) ——% RB Customer Deposit Focus and replace with low cost funding sources CASA & FCY Deposit (VND Trillion) —-% CASA & FCY 0 77% 77% 74% 76% 74% 19% 16% 17% 248 15% 1% 2
Slide 18: Credit card: dynamic, robust & profitable growth
Credit card: dynamic, robust & profitable growth Total spending achieved all-time high, increased145% YoY Reached 760k Card-in-force, with June new sale 30k Cards Total spending by credit card (VND trillion) Card new sale (thousand cards) 31 78 7 28 64 27 57 50 24 21 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q
Slide 19: Digital banking: Strong growth with high penetration
Digital banking: Strong growth with high penetration # VIB digital transactions (Million) % Digital transaction/Total RB transaction 73 Forecast 2024 700 97% 91% 92% 93% «= 94% 82% 340 130 71% 75 7 14 31 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 2Q24 # Registered digital customers
Slide 20: Corporate banking: focused on healthy customer segments
Corporate banking: focused on healthy customer segments Strong WB growth with high quality portfolio Corporate focused top 5 industries Credit balance (VND Trillion) © —% NPL 0.9% 0.9% ; . 0.8% 0.8% = Materials & Construction a = Power, Oil & Gas 27% 39 Industrial 2024 WB portfolio 30 31 Automobiles
Slide 21: WB low-cost funding recovered, prudent provisoning
WB low-cost funding recovered, prudent provisoning WB CASA & CFY recovered, COF significantly decreased Prudent provisioning, stable credit cost %CASA & FCY Deposit ——% COF Provision (VND Billion) _—-% Credit cost 0.9% 0.9% 6 0.8% 05% 9 17% 18% 63 15% 16% 14% ° 52 50 43 6.3% 6.3% 18 5.4% 49% 42% 2Q2
Slide 22: 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 (2Q24) (2Q24) (2Q24) USD 820 million USD 55 billion VND 273 trillion - Government bond * Among the most active Vietnamese * Ranked 1st in FX swap volume in * Ranked 1stin go
Slide 23: Financial Performance
FINANCIAL PERFORMANCE * — Highlights ° P&L * Balance sheet
Slide 24: At a glance
Ata glance 1H24 Lending 280 trillion Credit growth 5%/ Room 16.1% PBT 4.6 trillion -18% YoY. TOI +1% YoY. ROE 21% / CIR 32% Leading efficiency retail bank in industry NIM 4.2% Remain resilient 29.5% Dividend In cash: 12.5% (fully paid) In share: 17.0% (to be paid in Q3.24) NPL 2.4% Stable. Cat 2 loa
Slide 25: 1H24 P&L: TOI remains stable, pre-provision profit decreases 7%
1H24 P&L: TOI remains stable, pre-provision profit decreases 7% VND billion, % Net growth Accumulated 30.06.24 2Q23 3Q23 4Q23 1Q24 2Q24 YTD %YoY Total revenue 5,364 6,024 5,842 5,319 5,039 10,358 1% Net interest income 4,402 4,321 4,333 4,036 3,946 7,981 -8% Net fee income 786 1,062 860 754 742 1,49
Slide 26: Write-off recovery: Effectively reflects high quality and liquidity collateral
Write-off recovery: Effectively reflects high quality and liquidity collateral Secured-loan write-off made (VND billion) Write-off recovery income (VND billion) 900 899 665 325 290 183 209 135 : — oe i |_| _ 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 542 441
Slide 27: NIM, Credit cost, Non interest income ratio, CIR
NIM % (Last 12M) Credit cost / Total loans % (Last 12M) Non interest income ratio % (Last 12M) CIR % (Last 12M)
Slide 28: 1H24 Balance sheet: 5% lending & deposit growth
1H24 Balance sheet: 5% lending & deposit growth VND billion, % Net growth Accumulated 30.06.24 2Q23 3Q23 4Q23 1Q24 2Q24 Balance %YTD Total assets 21,417 5,756 25,461 4,006 17,074 430,962 5% Loans to customers 5,501 10,543 21,125 1,363 11,797 278,906 5% Corporate bonds -450 -128 -152 -175 (0) 592 -23
Slide 29: LDR, SMLR, CAR, NSFR
LDR % SMLR % CAR % (Basel II) NSFR % (Basel III)
Slide 30: Risk Management
RISK MANAGEMENT + Risk management framework * Capital * Asset quality ° Market risk & Liquidity
Slide 31: 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 32: 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
Slide 33: 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 34: Leverage on National Citizen Database (Project No 06)
Leverage on National Citizen Database (Project No 06) Context Citizens’ authenticated identity as of mid 2024: - 85 mil physical ID chip cards were issued by Ministry of Public Security (coverage of 100% eligible citizens); - VNeID (Digital Indentity) was set up for 69 mil citizens, of which 48 mil
Slide 35: Capital: strength and resilience
Capital: strength and resilience CAR Basel Il remains optimal level Strong & sustainable growth in equity (VND trillion, %) ——CAR Tier 1 ——CAR Total m= Equity —Equity growth YoY (%) 20% 18% 16% 18% 13% 38 38 12.0% 11.8% 11.7% 11.8% 11.8% 36 38 34 11.0% 10.9% 10.7% 10.8% 10.8% : 2Q23 3Q23 4Q23 1924 2
Slide 36: Lowest exposure to high risk loans
Lowest exposure to high risk loans High risk loan Metrics Sep-23 Dec-23 Mar-24 Jun-24 Loan balance Total (VND bio) 245,707 266,346 268,626 278,906 Property trading Balance 1,698 1,674 2,297 6,165 %/ total loan 0.69 0.63 0.86 2.21 NPL (%) 0.00 0.00 0.00 BOT lending Balance 0 0 0 %/ total loan 0.00 0.
Slide 37: Cat 2 decreased significantly, NPL is under control with lower pressure
Cat 2 decreased significantly, NPL is under control with lower pressure Cat 2 loan decreased 17% YoY NPL (VND Billion, %) © 1Cat 2 Balance (VND Billion) —% Cat 2 © INPL balance ——% NPL (SBV) 4.3% 4.3% 3.88% 3.8% 3.0% 2.5% 2.5% 2.20% 2.4% 2.4% 15,844 15,059 14,825 15,113 10,244 9,040 9.676 _ _ _ 1243
Slide 38: Restructured loan decreased, prudent provisioning
Restructured loan decreased, prudent provisioning Restructured loan (VND Billion, %) Total Provision cost (VND Billion) mmCir02 .Covid —% Restructured loans =RB Others 0.3% 0.34% 0.3% 0.3% 23 318 ew - 0.2% 2Q23 3Q23 4Q23 1Q24 2024 2Q23 3Q23 4Q23 1Q24 2Q24 38
Slide 39: Market risk & liquidity: full compliance at optimal level
Market risk & liquidity: full compliance at optimal level Key risk indicator Rule setter Hard limit VIB 2Q24 Status Liquidity risk LDR SBV < 85% 71.79% Complied SMLR SBV < 30% 26.18% Complied MLH SBV = 10% 22.19% Complied LCR- VND SBV = 50% 60.96% Complied LCR-FCY SBV = 10% (*) Complied NSFR Basel I
Slide 40: Thank you!
Thank you!
Vietnam International Commercial Joint Stock Bank (VIB) — Q2 2024 Earnings Presentation on 6ix