Orient Commercial Joint Stock Bank · HOSE:OCB
Orient Commercial Joint Stock Bank — Q1 2021 Earnings Presentation
26 slides from Orient Commercial Joint Stock Bank's earnings presentation, May 2021
Slide 1: OCB's Analyst Presentation 1Q2021
OCB’S ANALYST PRESENTATION 1Q2021 May 2021
Slide 2: Table of Contents
TABLE OF CONTENTS 1 OVERVIEW OF OCB BANK 2 1Q2021 FINANCIAL RESULTS 3 FINANCIAL TARGET IN 2021 OCB’S ANALYST PRESENTATION 1Q2021 2
Slide 3: I. Overview of OCB Bank
I. OVERVIEW OF OCB BANK 70 OCB’S OCB’S ANALYST PRESENTATION 1Q2021 ANALYST PRESENTATION 1Q2021 3
Slide 4: Introduction and Overview
INTRODUCTION AND OVERVIEW Overview Network and presence Established in 1996, OCB underwent organizational and shareholder restructuring in 2010. In 2020, OCB welcomed a Japanese bank as its new strategic shareholder and is embarking on its next phase of growth and institutional development. OC
Slide 5: Developmental Milestones
DEVELOPMENTAL MILESTONES Establishment Development Expansion 1996 2010 2014 2016 2018 2020 Officially Established strategy Built the new risk Entered its high • Launched OMNI, the Welcomed a commenced to focus on retail and management growth phase, as first omni-channel bank new strategic
Slide 6: Robust Digital Banking Platform
ROBUST DIGITAL BANKING PLATFORM Ready to capture new business opportunities and drive future growth 1Q21: 718,899 users OCB’S ANALYST PRESENTATION 1Q2021 6
Slide 7: Diverse Ecosystem of Valued Partners
DIVERSE ECOSYSTEM OF VALUED PARTNERS Potential to maximize value across existing ecosystems > 100 DIGITAL PARTNERS > 2,000 EDUCATION PARTNERS > 250 FINANCIAL INSTITUTIONS REPUTABLE REAL ESTATE DEVELOPERS HEALTHCARE PARTNERS OCB’S ANALYST PRESENTATION 1Q2021 7
Slide 8: Prudent and Rigorous Risk Management Practices
PRUDENT AND RIGOROUS RISK MANAGEMENT PRACTICES High standand of risk management to ensure the bank’s safety OCB’S ANALYST PRESENTATION 1Q2021 8
Slide 9: Human Resources and Training
HUMAN RESOURCES AND TRAINING Invest in human capital as a key factor 2. HUMAN RESOURCES POLICY 1. NUMBER OF EMPLOYEES Salary mechanism development based 5,635 employees on business results Increase in average income of OCB employees ESOP Health insurance policy 3. DIGITAL OPERATION 4. TRAIN
Slide 10: The Bank's Brand Awareness
THE BANK’S BRAND AWARENESS Received many awards and recognitions by trusted organizations OCB’S ANALYST PRESENTATION 1Q2021 10
Slide 11: II. 1Q2021 Financial Results
II. 1Q2021 FINANCIAL RESULTS 70 OCB’S OCB’S ANALYST ANALYST MEETING 1Q20211Q2021 PRESENTATION 11
Slide 12: 1Q2021 Financial Highlights
1Q2021 FINANCIAL HIGHLIGHTS High growth and operating efficiency are consistently maintained NPL ratio 1.69% REPORTING THE EXAMINATION Total assets FY20: 1.69% EBT RESULTS OF SHAREHOLDERS VND 160 tn VND 1,276 bn TOI 35% yoy 15% yoy TTM ROAA VND 2,050 bn 1Q21 2% yoy CAR 2.6% TTM ROAE (Basel II) 1Q21
Slide 13: Optimized Interest-Earning Assets
OPTIMIZED INTEREST-EARNING ASSETS Credit and funding portfolio gravitated towards strategic mix. • Focused retail, MSME, and SME segments dominantly drove lending growth by 4.3% vs. YE 2020. • Funding structured were well-diversified toward low-cost funds. Total Assets Q1 Lending by Business Unit 4.
Slide 14: Optimized Interest-Earning Assets
OPTIMIZED INTEREST-EARNING ASSETS Spacious room to drive our lending portfolio toward strategic segments and product mix • Our customer base have been expanding tremendously by 24% y-o-y, especially from retail segment. • Current LDR and liquidity ratios were strengthened, buffering spacious room fo
Slide 15: Optimized Interest-Earning Assets
OPTIMIZED INTEREST-EARNING ASSETS Prudent asset quality has been successively reinforced. • The majority of the lending portfolio were secured loan, buttressing NPL ratio at low rate despite impact of the 3rd COVID wave. • Early capital rise enhanced CAR far above SBV limit and among top level in th
Slide 16: On-Track Earnings Growth in Q1/2021
ON-TRACK EARNINGS GROWTH IN Q1/2021 Top efficiency was buttressed by double-digit core earnings growth and effective cost management • Core earnings from interest income (+15% y-o-y) accompanied by the decrease in provision cost by 48% y-o-y thanks to enhanced asset Earnings Before Tax VND billion q
Slide 17: On-Track Earnings Growth in Q1/2021
ON-TRACK EARNINGS GROWTH IN Q1/2021 Operating incomes from strategic units accelerated; Top low CIR successively maintained. • Huge TOI growth reverted to core earnings segments. Gain from securities trading resumed to the modest pace. • Marketing and technology-related expenses was further invested
Slide 18: On-Track Earnings Growth in Q1/2021
ON-TRACK EARNINGS GROWTH IN Q1/2021 Attractive interest margin was bolstered by optimized portfolio mix • NIM resumed at high rate thanks to interest earnings from high-yielded segments. Forecast NIM in April will bounce back. • Lending rate decreased this quarter in line with deposit rate and the m
Slide 19: On-Track Earnings Growth in Q1/2021
ON-TRACK EARNINGS GROWTH IN Q1/2021 Sustainably strong service income growth, conservative forecast for securities income • Income from fee in retail segments led non NII growth and increased in contribution toward TOI. • Income from securities trading slightly decreased y-o-y, yet was still bolster
Slide 20: Overview of Banking Landscape
OVERVIEW OF BANKING LANDSCAPE OCB maintained top performance in terms of profitability beside capital and asset increase. Total Equity Total Asset EBT ROAE ROAA (YoY Q1.19-Q1.21) (YoY Q1.19-Q1.21) (YoY Q1.19-Q1.21) (Q1.2021) (Q1.2021) 40.8% Top 1 27.5% Top 1 36.1% Top 5 21.8% Top 5 2.6% Top 3 28.4%
Slide 21: III. Financial Target in 2021
III. FINANCIAL TARGET IN 2021 70 OCB’S OCB’S ANALYST ANALYST MEETING 1Q20211Q2021 PRESENTATION 21
Slide 22: OCB's Key Financial Targets in 2021
OCB’S KEY FINANCIAL TARGETS IN 2021 * Credit growth rate depends on the SBV’s approval during the operating year Unit: VND Billion OCB’S ANALYST PRESENTATION 1Q2021 22
Slide 23: Plan for Raising Charter Capital in 2021
PLAN FOR RAISING CHARTER CAPITAL IN 2021 750 Billion 2,740 Billion 14,449 Billion 10,959 Billion Current charter capital Dividend 25% New share issuance* Charter capital after raising (*) Methods: (1) Share issuance under Employee Stock Option Program (ESOP): 50,000,000,000 (2) Private placement: 70
Slide 24: Q&A
Q&A OCB’S OCB’S ANALYST ANALYST MEETING 1Q20211Q2021 PRESENTATION 24
Slide 25: Investor Relations Contact
For further information, please contact Investor Relations Department Address: 41 & 45 Le Duan, Ben Nghe Ward, District 1, Ho Chi Minh City Tel: (84-28) 38 220 960 Fax: (84-28) 38 220 961 Email: ir@ocb.com.vn OCB’S ANALYST PRESENTATION 1Q2021 25
Slide 26: Thank You
THANK YOU OCB’S OCB’S ANALYST ANALYST MEETING 1Q20211Q2021 PRESENTATION 26
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