Joint Stock Commercial Bank For Investment And Development Of Vietnam · HOSE:BID
Joint Stock Commercial Bank For Investment And Development Of Vietnam — Bank for Investment and Development of Vietnam (BIDV) — Non-Deal Roadshow (February 2024)
27 slides from Joint Stock Commercial Bank For Investment And Development Of Vietnam's roadshow presentation, February 2024
Slide 1: Bank for Investment and Development of Vietnam (BIDV) Non-deal roadshow presentation
Bank for Investment and Development of Vietnam (“BIDV”) Non-deal roadshow presentation February 2024 0 RESTRICTED
Slide 2: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. In accessing the attached summary information presentation (this “presentation”), you agree to be bound by the following terms and conditions. This presentation has been prepared by Bank for Investment and Development of Vietnam JS
Slide 3: Company Representation
Company Representation Mr. Le Ngoc Lam Mr. Tran Phuong Chief Executive Officer Senior Executive Vice President 2 RESTRICTED
Slide 4: Table of Contents
Table of Contents 1 BIDV Overview 2 Company Highlights 3 Growth Strategy A1 Appendix 1: Financial Summary A2 Appendix 2: Industry Overview 3 RESTRICTED
Slide 5: 1. BIDV Overview
1. BIDV Overview 4 RESTRICTED
Slide 6: BIDV: Vietnam's National Banking Champion
BIDV: Vietnam’s National Banking Champion Key Statistics Shareholding Structure As of 31 December 2023 Bank in Vietnam by One of the Big 4 State-owned Commercial Banks Total assets #1 Gross loans State Bank of 80.99% Vietnam Customer deposits Supported by the 2nd largest nationwide network1 15
Slide 7: First Bank Established in Vietnam with Close to 70 Years of Heritage
First Bank Established in Vietnam with Close to 70 Years of Heritage Establishment & Equitization Introduction of Foreign Strategic Post IPO: Growth & Transformation Phase Investor Formed 12 years after Vietnam’s Ongoing initiatives to reduce state independence as the nation’s oldest bank Implementa
Slide 8: Key Business Segments
Key Business Segments A Retail banking B Corporate banking C SME banking USD 73.2bn Gross loans (2023) Loan 22% Mix 44% 34% c.22m c.500k c.388k Retail customers Corporate customers SME customers #1 #1 #1 By retail customers in Vietnam By corporate customers in Vietnam By SME customers in Vietnam Ret
Slide 9: 2. Company Highlights
2. Company Highlights 8 RESTRICTED
Slide 10: Key Highlights
Key Highlights 1 Clear Beneficiary of Vietnam’s Compelling Consumer Story 2 No.1 Retail Franchise Underpinned by Successful Retail-focused Strategy 3 No.1 Corporate and SME Bank Supporting Vietnam’s Economic Growth 4 Omnichannel Distribution Network Amassing The Largest Deposit Base 5 Significant Up
Slide 11: Clear Beneficiary of Vietnam's Compelling Consumer Story
1 Clear Beneficiary of Vietnam’s Compelling Consumer Story Fastest growing economy in SEA by real GDP Private consumption is expected to maintain recovery momentum 2022-2032E Real GDP CAGR (%) (% YoY) (% YoY) 120 300 100 250 6.8% 6.6% 80 200 60 150 5.0% 40 100 3.8% 20 50 2.8% 2.7% 0 0 -20 -50 -40 -1
Slide 12: No.1 Retail Franchise Underpinned by Successful Retail-focused Strategy
2 No.1 Retail Franchise Underpinned by Successful Retail-focused Strategy Undisputed No.1 retail banking franchise Strategy to shift into higher profitability retail business 2023 retails loans1 (USD bn) Overall Loan Mix by Customers Retail Loan Mix 100% 32.1 #1 90% 12% 22% 80% 14% 28% High quality
Slide 13: No.1 Corporate and SME Bank Supporting Vietnam's Economic Growth
3 No.1 Corporate and SME Bank Supporting Vietnam’s Economic Growth Corporate banking SME banking #1 >500k >USD 2.5bn #1 >388k ~40% by Corporate Corporate customers Green credit extended by SME SME Of SMEs in Vietnam customers in Vietnam customers in Vietnam customers1 bank with BIDV Competitive scal
Slide 14: Omnichannel Distribution Network Amassing The Largest Deposit Base
4 Omnichannel Distribution Network Amassing The Largest Deposit Base No.2 distribution network1 in Vietnam Diversified and stable funding Covering all 63 provinces in Vietnam; Mobilized capital (2023) Customer deposits mix (2023) ~40% of branches located in Ho Chi Minh City & Hanoi 2% 1% 9% 190 895
Slide 15: Significant Upside Opportunity to Unlock Non-Interest Income Growth
5 Significant Upside Opportunity to Unlock Non-Interest Income Growth Recovery in 2023 non-interest income Diversified and balanced product offerings Net fee income breakdown (2023) Successful implementation of initiatives in 2023 after decline in 2022 (mainly due to waiver of digital banking transa
Slide 16: Robust Risk Management Framework Driving High Quality Growth
6 Robust Risk Management Framework Driving High Quality Growth Substantially improved asset quality With reduced exposure to real estate sector NPL Ratio & Credit Cost (%) Real Estate Loans as % of Gross Loans (2023) 1.9% 2.0% 2.3% 1.7% 1.2% 0 35.2% Real estate loan portfolio (%) de-risk 2.5% 0 4.0%
Slide 17: 3. Growth Strategy
3. Growth Strategy 16 RESTRICTED
Slide 18: BIDV Strategy
BIDV Strategy VISION Top 100 Largest Banks in Asia Leading Financial Institution in Southeast Asia Best Digital Platform in Vietnam 5 Core Values Intelligence Believe Integrity Detail Orientation Vitality Scale Maintain #1 position and grow market share while maintaining strong balance sheet Asset q
Slide 19: Shareholding Structure & Capital Raising Plan
Shareholding Structure & Capital Raising Plan In 2022 and 2023, AGM approved the capital raising plan to increase its charter capital by issuing additional shares up to c.455,267,143 shares (c.9% of outstanding shares) in the form of public offering or private placement. The plan was approved by i
Slide 20: Conclusion
Conclusion Successful Retail Transformation Coupled Vietnam’s National Banking Champion with Strong Corporate & SME Franchise Poised for Profitability Growth Continued Asset Quality Improvement With Non-Interest Income Expansion Underpinned by Prudent Risk Management 19 RESTRICTED
Slide 21: Appendix 1. Financial Summary
Appendix 1. Financial Summary 20 RESTRICTED
Slide 22: Financial Summary
Financial Summary (USD million) Income Statement 2019 2020 2021 2022 2023 19-23 CAGR Net interest income 1,481 1,473 1,927 2,303 2,310 11.8% Net fee & commission income 176 217 272 233 270 11.4% Total operating income 1,980 2,059 2,572 2,859 3,005 11.0% Operating expense (710) (728) (801) (935) (1,0
Slide 23: Appendix 2. Industry Overview
Appendix 2. Industry Overview 22 RESTRICTED
Slide 24: Macroeconomic Environment
Macroeconomic Environment After bracing macroeconomic headwinds and inflation peaks, signs are showing a gradual recovery GDP growth has slowed amid global headwinds and expected Vietnam has seen broad-based weakness in exports since 4Q22 to recover in 2024 but managed to recover throughout 2023 (US
Slide 25: Vietnam Banking Sector
Vietnam Banking Sector Banking sector is the backbone of Vietnam’s economy Banking makes up the majority of Vietnam’s financial market The banking sector is still the largest market cap group1 Structure of Vietnam’s Financial System (% Total Assets) Market capitalization by sector1 % % Banking sec
Slide 26: Vietnam Banking Sector (cont'd)
Vietnam Banking Sector (cont’d) Banking sector competitive edges High NIM and profitability Banking digitization leads to lower CIR NIM of Banking Sector Payment Value Percentage 2019-2023F 9% 4.5% 8% Bank transfer Digital wallet Cash Card Other 3.95% 3.80% 3.75% 4.0% 7% 3.66% 3.60% 3.55% 6% 3.5% 10
Slide 27: Thank you!
Thank you! 26 RESTRICTED
Bank for Investment and Development of Vietnam (BIDV) — Non-Deal Roadshow (February 2024) on 6ix