36 slides from Joint Stock Commercial Bank For Investment And Development Of Vietnam's earnings presentation, May 2023
Slide 1: Solid Foundation for Future Value
SOLID FOUNDATION FOR FUTURE VALUE May 2023
Slide 2: Contents
Contents 2 SECTION 1 – VIETNAM MACRO ECONOMY • Macroeconomic Highlights ……………….…………………………….….... p.3 • Banking Industry Review ……………………….………………………….... p.6 SECTION 2 – BIDV OVERVIEW • BIDV Profile ……………………………………………………………......... p.10 • Business Performance in 2018 – 2023 period……..………………………... p.18
Slide 3: Vietnam Macro Economy: Macroeconomic Highlights
1 VIETNAM MACRO ECONOMY Macroeconomic Highlights
Slide 4: Macroeconomic Environment
Macroeconomic Environment 4 Consensus for GDP growth over the next two years Inflation is on the way down Public investment has emerged as a crucial growth engine Tourism still takes the lead in retail growth
Slide 5: Macroeconomic Environment
Macroeconomic Environment 5 Export slump but trade surplus widened FDI flow bounce-back Corporate bonds temporarily cooled off Rays of hope for Vietnam stock market
Slide 6: Vietnam Macro Economy: Banking Industry Review
1 VIETNAM MACRO ECONOMY Banking Industry Review
Slide 7: Monetary policy
Monetary policy 7 SBV has proactively eased monetary policy Vietnam interbank rates FX reserves above three months of imports US$/VND exchange rate fell recently on easing US$ index
Slide 8: Banking industry
Banking industry 8 2012 2022 Market share 2022 Vietnam’s YTD cumulative credit growth Credit and Deposit growth
Slide 9: Vietnam banking development strategy
Vietnam banking development strategy 9 2-3 commercial banks in top 100 largest banks in Asia (total assets) 3-5 banks listed their shares on foreign stock exchanges Increase non-credit income proportion of total income to 16-17% Mục tiêu đến 2025 năm Targets 2025 NPL of the whole sector below 3% Imp
Slide 10: BIDV Overview: BIDV Profile
BIDV™ 2 BIDV OVERVIEW BIDV Profile
Slide 11: Differentiating BIDV
Differentiating BIDV 11 10 A le a ding ba nk in Vietna m ma r ket Customer base Financial Capacity # 1 by Customer Loans # 1 by Total Assets # 1 by Customer Deposits # 2 by Market Cap Payment system BIDV Network • Settlement bank for Vietnam stock market # 2 by National Network Coverage • The only s
Slide 12: Milestones
Milestones 12 11 64 years 66 year of steady of steady growth growth Converted to BIDV JSC Charter Capital: VND 23,012 bn Charter Charter Charter capital raised to capital raised capital VND 14,600 bn to VND raised to Name changed to Began operating as a 34,187 bn VND Charter capital raised to Bank f
Slide 13: BIDV's Market Position
BIDV’s Market Position Total Assets Loans Deposits Equity Profit before Profit before Tax Market Cap Network NPL ratio SOCBs BDV 2 A: A: a oo A oe Veena 7: A so: A son oo A so sso as ek Ee To lt JSCBs x MB BD aan ross I 1920 aa 350 mp 27 oo 176% o> ou J ves 14505 soo 22 wo sace of 085% TECHCOMBANK v
Slide 14: Organization Chart
Organization Chart 14 14 ORGANIZATIONAL STRUCTURE GOVERNANCE CHART As of March 31st 2023 As of March 31st 2023
Slide 15: Diversified Business
Diversified Business 15 15 Extensive Domestic Network Coverage for both Traditional and Modern International Expansion Distribution Channels* 189 Domestic Branches 01 Oversea Branch 895 Transaction Offices 1,912 ATMs, CRMs, STMs 157 E-Zone 36,000 POS Internet Banking Mobile Banking • RMA with 1,100
Slide 16: Awards and Accolades
Awards and Accolades 16 17 The best retail bank in Vietnam Best SME Bank in Vietnam Best Trade Finance Bank The Best Custodian Bank in Vietnam Vietnam Domestic FDI Bank of the Best Supply Chain Finance Bank The Best FX Bank in Vietnam Year 2022 Vietnam Domestic Derivatives Top 2000
Slide 17: BIDV Shares
BIDV Shares 17 18 Ticker BID Peer Comparison Outstanding Volume (shares) 5,058,523,816 Free-floating ratio 4.01% 400.000 14 350.000 12 Foreign ownership 17.18% (15% by Hana) 300.000 10 VND 228.1 trillion (USD 9.7 billion) 250.000 Market Cap (VND tn) 8 Rank the 2nd in Vietnam Stock Market 200.000 6 L
Slide 18: BIDV Overview: Business Performance
2 BIDV OVERVIEW Business Performance
Slide 19: Steady balance sheet growth
Steady balance sheet growth 20 19 Total Assets Profit Before Tax (VND billion) (VND billion) 2.120.609 2.106.865 12.7% -0.6% 23.009 +15% 1.761.696 +25% 1.489.957 1.516.686 1.312.886 13,602 10,876 9,473 9,214 6.920 2018 2019 2020 2021 2022 QI.2023 2018 2019 2020 2021 2022 QI.2023 Customer Deposits Cu
Slide 20: Loan portfolio focusing on Retail and SME components
Loan portfolio focusing on Retail and SME components 21 20 Trend in Gross Customer Loans (VND billion) Loan portfolio by customers 1,597,152 1,522,222 4.9% QI.2023 11% 1,354,633 1,214,296 Corporate 1,116,998 34,2% 988,739 65.1% 66.2% Retail 43,9% 64.4% 62.9% 62.6% 61.8% 5.1% 5.0% 5.8% 5.4% 7.2% 6.6%
Slide 21: Diversified focusing on high-growth sector and good credit quality
Diversified focusing on high-growth sector and good credit quality 22 21 Loan portfolio by industry • Credit quality was improved with NPL ratio according to Circular 2022 Agriculture, forestry & seafood No.11 was at 1.3%. Others 3.9% Manufacturing and processing • Loan portfolio by industry improve
Slide 22: Deposits
Deposits 23 22 Customer Deposits by Term Deposit Breakdown (VND billion) +9% 1,473,598 1,497,395 1,380,402 +1.6% FI QI.2023 15.8% 18.4% 1,226,674 13,5% 19.4% 1,114,231 18.0% 989,671 16.0% 16.4% 47,2% Individuals 81.1% 83.8% 80.3% 82.9% 81.4% 82.9% 39,3% Corporate 0.8% 1.1% 0.5% 0.4% 0.5% 0.4% 2018 2
Slide 23: Retail Banking
Retail Banking 27 23 Retail Deposits (VND billion) Retail Loans (VND billion) 7.5% 818,223 675,589 763,814 17.0% 650,423 7.1% 3.9% 690,437 625,666 634,127 530,250 571,204 425,879 374,526 308,337 2018 2019 2020 2021 2022 QI.2023 2018 2019 2020 2021 2022 QI.2023 Customer Base (thousand people) Retail
Slide 24: Digital Banking
Digital Banking 24 BIDV’s digital banking vision 2030 - Become the leading financial institution Ratio of digital transactions to total transactions in Southeast Asia with the best digital platform in Vietnam, and strive to be (%) among the 100 largest banks in Asia. Digital Channels: Internet banki
Slide 25: ESG and Green Finance
ESG and Green Finance 25 22 Outstanding Hydropower and Solar Green credit growth power projects financed by BIDV Structure of renewable power loans BIDV has promoted sustainable and green growth as a goal in the Bank's strategy. BIDV is first Vietnamese bank to issue Sustainable Loan Framework.
Slide 26: Financial Performance
Financial Performance 24 26 Total Operating Income Total Operating Expense (VND billion) (VND billion) 69.582 11.8% 8.7% 22.557 62.494 +11% 19.465 +16% 50.035 17.280 17.696 48.165 16.167 44.483 17.278 4.832 2018 2019 2020 2021 2022 QI.2023 2018 2019 2020 2021 2022 QI.2023 Net Interest Income (VND bi
Slide 27: Financial Performance
Financial Performance 25 27 Interest income accounted for bigger proportion in TOI Interest income from loans to customers is driven factor in NII From finance leases Investment income From guarantee Others Other income From deposits 2022 Securities income 2022 From debt securities Gold and FX 6% 6%
Slide 28: Key Ratios
Key Ratios 26 28 Source: BIDV Financial Reports
Slide 29: Historical Income Statement and Balance Sheet
Historical Income Statement and Balance Sheet 29 Source: BIDV Financial Reports
Slide 30: Strategy and 2023 Business Plan
3 STRATEGY AND BUSINESS PLAN Strategy and 2023 Business Plan
Slide 31: Mission, Vision & Core Value
Mission, Vision & Core Value 31 12 Committe Committed dto to delivering delivering thevalue the best bes t va lue Mission • Best services for customers • Best value to shareholders Customer Innovation Orientation • Professional working environment for employees • Pioneer in community development act
Slide 32: 2021 – 2025 Strategy
2021 – 2025 Strategy 13 32 • Sound financial capacity as a basis for growing operational scale, increasing market share and 1 maintaining a leading position in the banking market • Sustainable performance, improving the quality of assets, increasing the proportion of non-interest income. providing t
Slide 33: 2023 Business Plan
2023 Business Plan 33 31 • ↑12% - • ↑11% 13% Credit Deposit Growth Growth NPL Profit Ratio before tax • ≤1.4% • ↑10% -15%
Slide 34: Capital raising plan
3 STRATEGY AND PLAN Capital raising plan
Slide 35: Projected Shareholding Structure
Projected Shareholding Structure 31 35 STAGE 1: To 2022 STAGE 2: To 2025 STAGE 3: From 2030 • IPO finished on December, 2011 • Issuing shares to foreign investors • Additional public offering • Transforming to Joint Stock (total up to 30%): • Issuing additional shares to foreign Commercial Bank in A
Slide 36: Important Notice
Important Notice 36 32 This Presentation (the Presentation) has been prepared by IR Team - BIDV for the purpose of setting out certain confidential information in respect of BIDV’s business activities and strategy. This Presentation is for the exclusive use of the recipients to whom it is addressed.