Vietcap Securities Joint Stock Company · HOSE:VCI
Vietcap Securities Joint Stock — VPBank — Investor Presentation (May 2024)
33 slides from Vietcap Securities Joint Stock's investor presentation, May 2024
Slide 1: VPBank: Be Unique to LEAD
VPBank Be Unique to LEAD Bangkok, May 2024 1
Slide 2: A history of transformation and sustainable growth of a leading private bank in Vietnam
A history of transformation and sustainable growth of a leading private bank in Vietnam 2023 2022 Completed the transfer of 2021 ’ stake to SMBC Completed the private 2017 placement deal with to issue 2010 2014 Established as Vietnam Joint Stock Commercial Bank for Private Enterprises 1993 • Acquire
Slide 3: Synergies with SMBC as the strategic shareholder
Synergies with SMBC as the strategic shareholder create a solid ground for VPBank's outstanding growth strategy in the future Second largest bank in Japan High Rating from Credit agencies: “A” by Fitch Ratings, Billion “A” by Standard & Poor’s Global and “A1” by Moody’s Injected in Tier 1 Capital Of
Slide 4: Ambitious and bold strategic vision
Ambitious and bold Acceleration digital strategic vision through a innovation to enhance history of transformation customer engagement Distinct business model Solid leadership with covering full spectrum of award-winning corporate customer segmentations governance Advanced risk Multi-layered ecosyst
Slide 5: Ambitious and bold vision exemplifies long-term strategic foresight
Ambitious and bold vision exemplifies long-term strategic foresight and proactive anticipation of emerging trends 2012 - 2017 2017 - 2022 2022 - 2026 • Top 3 Retail JSCB bank • Top 3 most valuable banks • Top 3 leading banks in Vietnam • Top 5 JSCB bank overall in Vietnam • Top 100 largest banks in
Slide 6: Unique platform with a diverse suite of products
Unique platform with a diverse suite of products to cover the full spectrum of the market ANNUAL REVENUE ANNUAL INCOME USD’000 USD CORPORATE & INVESTMENT 69.000 BANKING & FDI Large Corps Affluent & FDI COMMERCIAL 26.000 BANKING RETAIL 25,000 CUSTOMERS Upper Mass SME Affluent 8,600 8,000 SMALL AND ME
Slide 7: Distinct business model supported by highly potential retail segments
Distinct business model supported by highly potential retail segments Key products Key products Key products Key products • Secured loans: auto, • Working capital financing • Lending, deposit • Cash loans home, consumption, • Fixed asset financing • Service and trade • Sales finance business loan, •
Slide 8: Multi-layered ecosystem drives customer acquisition
Multi-layered ecosystem drives the customer acquisition and improves customer journey VPBankS’s charter capital reached more than VND 15 Trillion in December 2022- Top 2 in the industry Maintains Customers Largest network with more than 19,000 POS/POC • A digital insurer to achieve comprehensive
Slide 9: Robust capital foundation empowers growth
Robust capital foundation empower the bank to achieve ambitious goals for the next chapter of growth Charter Capital & Owners’ Equity (Tril VND) TOTAL EQUITY VND 140 Tril 139.8 TOP 2 CAGR 34% 103.5 86.3 CAR 17.1% Leading in the market 52.8 42.2 34.8 29.7 17.2 13.4 9.0 45.1 67.4 79.3 7.7 25.3 25.3 25
Slide 10: Annually high and constant dividend payout
Annually high and constant dividend payout Share dividend - Share dividend - Cash dividend – Payout ratio: Payout ratio: Payout ratio: Share dividend - Share dividend - Cash dividend – Payout ratio: Payout ratio: AGM’s Tentatively approved payout ratio: annually for cash dividend in the next 5 years
Slide 11: Embedded digital banking breakthrough to enhance customer engagement
Embedded digital banking breakthrough to enhance customer engagement VPBank NEO – for financial and integrated services serving Retail & Corporate customers Enhance infrastructure Adopt Develop for Advanced Analytics to enhance service quality Optimize opportunities with lower & mass custo
Slide 12: Pioneering in digital innovation
Pioneering in digital innovation to enhance customer engagement and improve operational efficiency Separate Unit: million,% Number of registered customers through VPBank NEO & NEOBiz 3.0 8.8 5.2 2021 2022 2023 Number of NEO transactions 234 125 400 2021 2022 2023 Penetration rate via Digital channel
Slide 13: Fee income has emerged as the key growth driver
CONSOLIDATED Fee income has emerged as the key growth drive for driving profitability and sustained growth Net Fee Income Unit: VND bil; % in term of number of cards in force and spending volume # Accum. Credit Card Spending volume in force of Credit Card CAGR: 27% 49% Y-o-Y with 19 years exclusive
Slide 14: Advanced risk management platform fully integrated across entire business
Advanced risk management platform fully integrated across entire business RISK GOVERNANCE FRAMEWORK RISK MANAGEMENT FRAMEWORK 3 LINES OF DEFENSE MODEL Risk appetite Risk management objectives & strategy 1 First line of defense Risk management process Individual risk level Operating & • Risk identifi
Slide 15: Pioneering in applying best international governance practices
Pioneering in applying best international governance practices Basel adoption & implementation Advanced approach preparedness Advanced Basel implementation roadmap for next 3 years Basel 2 (all 3 Pillars): VPBank is one of the first 3 banks to fully adopt Basel 2 since February 2020. To evolve wit
Slide 16: Forerunner in sustainability in the banking sector
Forerunner in sustainability in the banking sector KEY FOCUSES Net zero emission by 2050 Environmental and climate risk management in credit activities and supply chain Social risk management and enhance social responsibility ACHIVEMENTS TOP 20 Listed companies with highest VNSI for 5 consecutives y
Slide 17: Ambitious leadership with award-winning corporate governance
Ambitious leadership with award-winning corporate governance VPBank's visionary & experienced leadership team with proven track record has guided the bank through various chapters of transformation journeys BOARD OF DIRECTORS “VPBank was selected by IFC as 1 out of 3 case studies in Corporate Govern
Slide 18: Delivered exponential growth in scale for consecutive years
Delivered exponential growth in scale for consecutive years CONSOLIDATED Unit: VND bil; % 2023 600,524 2023 490,156 2022 479,756 2022 366,851 2021 384,030 2021 323,133 CAGR: 22% 2020 322,881 CAGR: 16% 2020 296,273 Industry average : 18.1% Industry average : 20.7% 2019 271,407 2019 271,549 139,79 202
Slide 19: Promoted efficiency to bring added values to shareholders
Promoted efficiency to bring added values to shareholders CONSOLIDATED Unit: % Constantly in the leading position over the past 10 years Industry Average 4% 9.7% 8.8% 8.1% 7.8% 5.8% 49,739 36,356 39,033 44,301 57,797 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 TOI Industry Average 36% Industry
Slide 20: Parent bank continues to play the crucial role in consolidated results
Parent bank continues to play the crucial roles in consolidated results Unit: VND bil; Mil customers CUSTOMER DEPOSIT CREDIT TO CUSTOMERS CAGR: 26% CAGR: 20% 229,676 210,984 239,129 307,253 443,558 210,916 256,836 308,618 400,035 527,223 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 CUSTOMER BAS
Slide 21: Leading position on both profitability and efficiency
Demonstrated in our leading position on both profitability and efficiency #2 Owner Equity #3 Total Asset #1 Retail size In the banking sector with highest Among private banks Leading the private banks in term of market capitalization in private retail loan balance (*) and NIM peers #2 Net Fee Income
Slide 22: Ideally positioned to benefit from fast growing Vietnamese economy
Ideally positioned to benefit from fast growing Vietnamese economy with a high-potential banking sector Fastest growing major economy in ASEAN – GDP Growth rate at 5.05% in 2023 Robust growth in FDI in 2023 – FDI Disbursement recorded at USD 23.2 Bn, up 3.5% YoY, the highest amount in the past 5 yea
Slide 23: Attractive valuation considering the significant growth prospects
Attractive valuation considering the significant growth prospects 13/05/2024 26.00 P/B: 1.0 24.00 22.00 18.80 16.00 31/08/2017 14.00 P/B: 3.3 12.00 10.00 8.00 6.00 4.00 2018 2019 2020 2021 2022 2023 2024 23
Slide 24: Business Outlook
Business Outlook VY VPBank’
Slide 25: Macro Outlook in 2024
Macro Outlook in 2024: GDP is ready to rebound although higher interest rate to be expected. Vietnam GDP growth expected to be 6.1% in USD/VND increased in tandem with DXY 2024 Real GDP growth is expected to be 6.0%- USD/VND exchange rate’s movement USD/VND (LHS) DXY (RHS) 23/04/2024 6.5% in 2024, w
Slide 26: Summary of Vietnam 2024 macroeconomic forecast
Summary of Vietnam 2024 macroeconomic forecast FY24F INDICATOR FY21 FY22 FY23 1Q24 FY24F vs FY23 Real GDP Growth Rate 2.6% 8.0% 5.1% 5.7% 6.1% ↑ 1.0% Inflation Rate (Average of Period YoY) 1.8% 3.2% 3.3% 3.8% 3.8% ↑ 0.5% Export YoY Growth 19.0% 11.0% (4.0)% 17.1% 20.0% ↑ 24% R^2=0.51 Trade Balance (
Slide 27: VPBank Business Outlook 2024
VPBank Business Outlook 2024 • Strategic segments are prime targets for credit • Deepen customer engagement via further expansion integration of our digital ecosystems • Explore growth opportunities with FDI segment • Capture new growth opportunities and seek • Ensure strong liquidity and diversify
Slide 28: Business plan for 2024 – Consolidated
Business plan for 2024 – Consolidated Unit: bil. VND,% CONSOLIDATED Total assets 974,270 Credit to customers 752,104 Deposit of customers include valuable papers 598,864 PBT 23,165 2024 2023 2024 vs. 2023 Total assets 974,270 817,628 19% Deposits & Valuable papers 598,864 490,156 22% Credit to custo
Slide 29: Appendix
V7 VPBank: Appendix
Slide 30: Definition of Indicators
Definition of Indicators 1. Cost to income ratio (CIR) OPEX / TOI 2. ROE (Consolidated) Profit after tax / Average Total Equity 3. ROA (Consolidated) Profit after tax / Average Total Assets 4. ROE (Bank Standalone) Profit after tax exclude income from subsidiaries / Average Total Equity exclude inve
Slide 31: Glossary
Glossary ADB Asian Development Bank NFI Net Fee Income CAR Capital Adequacy Ratio NII Net Interest Income CASA Current Account Savings Account NIM Net Interest Margin CD Certificate of deposits NPL Non-Performing Loan CIR Cost-to-Income Ratio OMO Open Market Operations COF Cost of fund OPEX Operatin
Slide 32: Disclaimer
Disclaimer The material in this presentation is general background information about VPBank’s activities at the date of the presentation. It is information given in summary form and does not purport to be completed. It is not intended to be relied upon as advice to investors or potential investors a
Slide 33: Thank you
V7 VPBank: Thank you