Joint Stock Commercial Bank For Foreign Trade Of Vietnam · HOSE:VCB
Joint Stock Commercial Bank For Foreign Trade Of Vietnam — Vietcombank — Q1 2019 Earnings Presentation
40 slides from Joint Stock Commercial Bank For Foreign Trade Of Vietnam's earnings presentation, May 9, 2019
Slide 1: Vietcombank - Together for the future
Vietcombank Together for the future | Vietcombank May 2019 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. 1Q 2019 highlights 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
Overview Landscape Business Strategy 1Q 2019 Annexes A leading player in Vietnam's banking sector Market position in Vietnam by(1): #1 Market capitalisation US$ 8.3 bn Universal banking model across a wide range of Ownership financial services spanning #2 US$ 2.7 bn Capital retail, corporate and f
Slide 5: Strong heritage and track record of achievements
Overview Landscape Business Strategy 1Q 2019 Annexes Strong heritage and track record of achievements Corporate milestones Key shareholders Foreign Domestic investor, investor, Today 8.06% 2.14% Most reputable bank Mizuho, brand name in Vietnam 15.00% 2019 Share purchased by Singapore Sovereign 2011
Slide 6: Corporate structure
Overview Landscape Business Strategy 1Q 2019 Annexes Corporate structure Vietcombank Financial Services Non-Financial Services Other Financial Commercial Banking Investment Banking Insurance Real Estate Services Vietcombank Laos Vietcombank Vietcombank VCB Cardif Life VCB Tower 198 (100%) Securities
Slide 7: Experienced management team and BoD with deep industry expertise
Overview Landscape Business Strategy 1Q 2019 Annexes Experienced management team and BoD with deep industry expertise Chairman and CEO profile Mr. Nghiem Xuan Thanh, Chairman of Board of Directors, has been with VCB since 2013 and has a banking career spanning over 25 years in various banks in Vie
Slide 8: 2. Business landscape
Vietcombank Together for the future 2. Business landscape
Slide 9: Favorable macroeconomic environment
Overview Landscape Business Strategy 1Q 2019 Annexes Favorable macroeconomic environment Strong GDP growth GDP growth by sector (%) Reached 7.1% growth in 2018, one of the highest in Emerging Markets 6.8% 7.1% 6.7% 6.0% 6.2% 5.4% 2013 2014 2015 2016 2017 2018 2019E 2013 2014 2015 2016 2017 2018 Viet
Slide 10: Banking sector overview
Overview Landscape Business Strategy 1Q 2019 Annexes Banking sector overview Overview Large number of banks (98); of which State Owned Commercial Banks (“SOCBs”) occupy the major market share. Industry restructuring plan commencing in 2011 has helped to (i) enhance credit control, (ii) increase
Slide 11: 3. Key company highlights
Vietcombank Together for the future 3. Key company highlights NX
Slide 12: Key company highlights
Overview Landscape Business Strategy 1Q 2019 Annexes 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 qualit
Slide 13: Strong brand positioning driving robust deposit growth
Overview Landscape Business Strategy 1Q 2019 Annexes 1 Strong brand positioning driving robust deposit growth Customer deposits are the largest source of total funding, accounting for ~75% Growing market share (~10.6%) on the back of strong nationwide brand recognition and loyalty 2018 deposit
Slide 14: Growing loan portfolio with increasing retail component
Overview Landscape Business Strategy 1Q 2019 Annexes 2 Growing loan portfolio with increasing retail component Market share ~9.1% 2018: Total loans: ~VND 631.9 tn, increased 16.3% against 2017; recorded 18.2% CAGR between 2013 – 2018 Loan composition − Growing loan portfolio with a focused app
Slide 15: Diversified loan portfolio with a focus on high-growth sectors
Overview Landscape Business Strategy 1Q 2019 Annexes 3 Diversified loan portfolio with a focus on high-growth sectors with good credit quality Lending breakdown By sector By loan group By term 0.88% 0.60% 26.4% 1.72% 36.0% 31.9% 33.8% 42.1% 37.4% 5.8% 5.5% 4.2% 11.7% 10.4% 6.2% 8.4% 5.9% 3.7% 4.9% 4
Slide 16: High asset quality and strong capital base
Overview Landscape Business Strategy 1Q 2019 Annexes 4 High asset quality and strong capital base FY ended 31 December 2012A 2013A 2014A 2015A 2016A 2017A 2018 Loans to deposits 84.51% 82.56% 76.58% 77.36% 78.04% 76.70% 78.79% Loan loss reserve coverage (Provision/NPL) 91.07% 86.29% 94.43% 120.63% 1
Slide 17: Consistently strong profitability and performance
Overview Landscape Business Strategy 1Q 2019 Annexes 5 Consistently strong profitability and performance FY ended 31 December 2013A 2014A 2015A 2016A 2017A 2018A Net interest margin 2.62% 2.40% 2.57% 2.64% 2.66% 2.95% Non-interest income/Operating Income 30.5% 32.0% 27.1% 25.5% 25.4% 27.67% Pre-Prov
Slide 18: Leading platform for trade financing and cross-border business needs
Overview Landscape Business Strategy 1Q 2019 Annexes 6 Leading platform for trade financing and cross-border business needs Leading position in Trade Financing (TF) and International International settlement volume (USD bil) Settlement − Market share: ~16.23% in TF 78.4 69.4 54.0 − Solid customer-
Slide 19: Leading platform for credit card services and products
Overview Landscape Business Strategy 1Q 2019 Annexes 7 Leading platform for credit card services and products Vietcombank is the pioneer bank to introduce card services Card payment volume to Vietnam and has since then kept the leading position Int’l Card spending Card settlement volume − Number 1
Slide 20: Extensive branch / ATM network supported by strong investment in technology
Overview Landscape Business Strategy 1Q 2019 Annexes 8 Extensive branch / ATM network supported by strong investment in technology Nationwide coverage and presence… …supported by a digital platform In 2018, Vietcombank opened 5 branches and 10 transaction offices Vietcombank aims to open approxi
Slide 21: 4. Growth strategy and targets
4. Growth strategy and targets 20
Slide 22: Vision 2020 & Strategy
Overview Landscape Business Strategy 1Q 2019 Annexes Vision 2020 & Strategy To become number 1 bank in Vietnam, ranked among the 100 largest banks in the region and among the 300 biggest financial groups in the world, underpinned by global best practices I. Top 1 Retail and II. The local most III. N
Slide 23: Key strategic initiatives
Overview Landscape Business Strategy 1Q 2019 Annexes Key strategic initiatives Business Expansion Enhancement of corporate governance Focus on growing the retail customer segment supported by VCB’s Centralize organizational structure leadership in credit cards, largest ATM network in Vietnam, co
Slide 24: Key financial and operating targets
Overview Landscape Business Strategy 1Q 2019 Annexes Key financial and operating targets Scale Growth Total assets: USD 60bn Loan growth: ~ 15-16% Total ownership equity: USD 4.5bn Deposit growth: ~ 13-14% Quality Profitability LDR: maintain at 80-85% Interest income growth: ~ 17-18% L
Slide 25: Capital raising plan by 2020
Overview Landscape Business Strategy 1Q 2019 Annexes Capital raising plan by 2020 Internal capital targets Long term capital raising plans (VND tn) 97 Target shareholders equity of ~USD 4.5bn by 2020 to comply with Basel II capital 77 adequacy requirements (CAR ≥ 9%) as well as 64 have pursue qual
Slide 26: 5. 1Q 2019 highlights
Vietcombank Together for the future 5. 1Q 2019 highlights
Slide 27: 1Q 2019 - Recap of Macro economy and banking sector
Overview Landscape Business Strategy 1Q 2019 Annexes 1Q 2019 - Recap of Macro economy and banking sector Key Macro indices Banking sector and Top-5 profit before tax GDP growth & key sectors’ growth (%) Growth vs 31 Dec 2018 6.79% VND Bn Q1 2019 8.63% 6.50% 7,000 40% 2.68% 34.8% 7.38% 6,000 35% Q1 2
Slide 28: 1Q 2019 results – Balance sheet
Overview Landscape Business Strategy 1Q 2019 Annexes 1Q 2019 results – Balance sheet Total deposits (year-end, growth vs last year-end) Gross loans (year-end, growth vs last year-end) (VND tn) (VND tn) +6.5% +4.5% 631.9 +15.6% 801.9 +11.5% +7.9% +9.2% +6.3% +3.2% 590.5 +16.3% 543.4 +16.5% +13.9% +10
Slide 29: 1Q 2019 results – Balance sheet
Overview Landscape Business Strategy 1Q 2019 Annexes 1Q 2019 results – Balance sheet Gross loans breakdown By term By customer Short term Segments with strongest growth Long term 55% Individuals 37% 37% Short term loan: +7.72% ytd Individual loans: +6.28% ytd Corporates 55% Mid-term SMEs 8% 8% T
Slide 30: 1Q 2019 results – Income Statement
Overview Landscape Business Strategy 1Q 2019 Annexes 1Q 2019 results – Income Statement Net interest and non interest income Net profit after tax (VND bn) (VND tn) 25.5% 25.5% 27.9% 2.95% 3.29% 14.7% 18.1% 2.64% 2.66% 2.66% 10,870 14.6 7,469 6,352 9.1 28,409 6.9 18,528 21,938 3,268 3,727 4.7 3.5 6,1
Slide 31: 1Q 2019 results – Key ratios
Overview Landscape Business Strategy 1Q 2019 Annexes 1Q 2019 results – Key ratios Quality 1Q17 2Q17 3Q17 FY17 1Q18 2Q18 3Q18 FY18 1Q19 Loans to deposits 81.99% 80.70% 77.92% 76.70% 79.02% 79.27% 81.19% 78.79% 80.29% Loan loss reserve coverage 128.9% 140.3% 164.8% 130.7% 121.4% 140.6% 155.5% 165.4% 1
Slide 32: VCB 2019 targets
Overview Landscape Business Strategy 1Q 2019 Annexes VCB 2019 targets Key targets 2017 2018 2018 growth 2019 Targets Total assets 1,035,293 1,074,027 3.7% ~ 12% (VND bn) Credits 557,767 639,549 14.7% ~ 15% (VND bn) Deposits and valuable papers 726,734 823,390 13.3% ~ 11-13% (VND bn) PBT 11,341 18,26
Slide 33: Sector leading share price performance
Overview Landscape Business Strategy 1Q 2019 Annexes Sector leading share price performance 2016 – 1Q2019 share price performance(1) Trading statistics (Rebased index) Number of shares: 3,708,877,448 350 Last closed price (29/03/2019): 67,300 VND 300 VWAP in the most recent 3 months: 61,000 VN
Slide 34: 6. Annexes
Vietcombank Together for the future 6. Annexes
Slide 35: Equity investments overview
Overview Landscape Business Strategy 1Q 2019 Annexes Equity investments overview Total investments - VND 5,904 bn (USD 260m) as of 31 Dec 2018 Wholly – Owned Subsidiaries: VCBS, VCBL, VFC, VCB Laos, VCBR JVs and Partnerships: VCBF, Vietcombank Tower, VCB Money (TN Monex), VCB-Bonday-Ben Thanh,
Slide 36: Historical balance sheet
Overview Landscape Business Strategy 1Q 2019 Annexes Historical balance sheet (Figures in VND bn) FY ended 31 Dec 2014A 2015A 2016A 2017A 2018A 1Q2019 Cash and cash equivalents 8,323 8,519 9,692 10,103 12,792 10,339 Balances with SBV 13,267 19,715 17,382 93,616 10,846 39,617 Current accounts, deposi
Slide 37: Historical balance sheet (cont'd)
Overview Landscape Business Strategy 1Q 2019 Annexes Historical balance sheet (cont’d) (Figures in USD m) FY ended 31 Dec 2014A 2015A 2016A 2017A 2018A 1Q2019 Cash and cash equivalents 392 389 437 451 551 446 Balances with SBV 624 901 784 4,175 467 1,708 Current accounts, deposits and placements wit
Slide 38: Historical income statement
Overview Landscape Business Strategy 1Q 2019 Annexes Historical income statement (Figures in VND bn) FY ended 31 Dec 2014A 2015A 2016A 2017A 2018A 1Q2019 Interest income 28,222 31,361 37,713 46,159 55,864 16,094 Interest expenses (16,214) (15,908) (19,185) (24,221) (27,455) (7,595) Net interest inco
Slide 39: Historical income statement
Overview Landscape Business Strategy 1Q 2019 Annexes Historical income statement (Figures in VND bn) FY ended 31 Dec 2014A 2015A 2016A 2017A 2018A 1Q2019 Interest income 1,328 1,433 1,702 2,058 2,408 694 Interest expenses (763) (727) (866) (1,080) (1,183) (327) Net interest income 565 706 836 978 1,
Slide 40: 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