Joint Stock Commercial Bank For Foreign Trade Of Vietnam · HOSE:VCB
Joint Stock Commercial Bank For Foreign Trade Of Vietnam — Vietcombank — Q3 2022 Earnings Presentation
41 slides from Joint Stock Commercial Bank For Foreign Trade Of Vietnam's earnings presentation, November 2022
Slide 1: Investors Presentation 3Q2022 Financial Results
¥ Vietcombank ‘Together for the future Investors Presentation 3Q2022 Financial Results Baas UN November 2022
Slide 2: Table of contents
Table of contents \ ve 3Q2022 Business Performance 1. Market Position 2. Economic Updates 3. Financial Results Company Profile Growth strategy and targets IV Financial Statements v Vietcombank “Together forthe future
Slide 3: Market Position in Vietnam
Market Position in Vietnam <> Taxes t ' ' A yi. Unit: USD bn Vietcombank : BIDV VietnBank® —tecticomBank Az MB WY vpBank Total Assets 69.6 ' 865 739 283 277 252 Loans 462 ' 613 50.9 71 176 16.5 Deposits 50.5 i 59.7 50.2 BS 15.9 7 . 1 Ownership 54 ! 43 45 46 32 43 Capital H ' H 14.6 ‘ MERGE PB 29x! 7
Slide 4: SBV's inflation target
SBV’s inflation target Source: GSO 3
Slide 5: Banking sector recorded strong credit growth, pressure towards year end
Banking sector recorded strong credit growth, pressure towards year end given tight system liquidity and rising interest rate risks Robust credit growth vs stagnant deposits | ypsi29 lil li | [ Credit Deposits Credit Deposits Q3 Q4 m2019 =2020 m2021 m2022 © SBV's efforts in pursuing dual goals resul
Slide 6: Table of contents
Table of contents 3Q2022 Business Performance 1. Market Position 2. Economic Updates Vv 3. Financial Results Company Profile Growth strategy and targets IV Financial Statements Vietcombank “Together forthe future
Slide 7: Size Profit Key Ratios
Size Profit Key Ratios (31/12/2021)
Slide 8: Profitability continued to lead the market
Profitability continued to lead the market, with solid interest income and better-than- expected non-interest-income wyYtd 4 Quarter +1754 49,420 16,695 Average NIM 33% 3.4% 3.2% —eROAA —e=ROAE 24.0% 9 15% 1.8% 17% -—____+______. 202193 2022Q2 2022Q3 38,437 — -7,786 an ae 24,940 1586) Nil NFI Others
Slide 9: Interest income driven by robust credit growth
Interest income driven by robust credit growth with focus on high-yield and safe segment Loans breakdown by customer 14.6% 6% 15% a Wholesales Growth 16.3% 127% 10.4% Individual Growth 18.9% 16.5% 12.4% 202193 2022Q2 202203 202193 2022Q2 202203 =Corporate SME =Individual Growth ytd Loans yield NPL 7
Slide 10: Backed by favorable deposit structure
backed by favorable deposit structure Funding mix Deposits breakdown by terms Th% 5% 53% 4% Aa 202193 2022Q2 202203 202193 2022Q2 202203 Customer Deposits = Inberbank loans = Valuable papers Pure LDR 94.4% 92.1% 845% 202193 2022Q2 202203 CASA =Term Deposits = Others &Deposit growth ytd % CASA vs Avg
Slide 11: Diversified fee income with shifting business focus
Diversified Fee income with shifting business focus =10% Trade finance volume (*) YoY 5 18.0% | 16.5% 153% 15.4% +59% QoQ -2% YoY 2019 2020 2021 202293 mam International settlement volume —eMarket share in total international settlement 202103 202202 202203 92021 gm2022 (+) Ytd figures | © Trade Fin
Slide 12: While costs are effectively controlled
.. While costs are effectively controlled mStaff cost %Q0Q %YoY m Administrative (en) expenses (19%) m Expenses on assets m= Other 202193 202292 202293 9M2021 9M2022 CIR 38.1% 37.8% 36.4% 202193 2022Q2 2022Q3 Vietcombank a: a Q “Together for the ftir Provision 2,733 2778 a lJ I 202193 202292 202203
Slide 13: Key ratios
Key ratios Loans to deposits B45% B4.6% Loan loss reserve coverage (Provision/NPL) 242.9% 4205% NPL ratio 116% 0.63% car" 10.1% 93% Credit Cost 120% 131% Net interest margin 3.16% BAAS Non-interest income / Operating Income 213% 275% ROAA 14% 19% ROE 18.1% 255% Cost to income ratio 37.8% 20.6% Vietc
Slide 14: Stock performance and shareholder benefits
Stock performance (2019 - 3Q2022) and shareholder benefits Resilient stock price, outperformed market [Favorable dividend policy | Date Dividend Payout Ratio policy 2019 8% in Cash ~16% 2020 8% in Cash ~16% 27.6% in Stock ~73% 2021 12% in Cash (including 12% in “vee 466% (Tentative) cash) Co i ao At
Slide 15: Recap & What's next
Recap & What's next Loans Deposits PBT Q4 Plan © Restructure loan portfolio quality © Asset quality remained our focus © Maximize credit growth limit granted by SBV towards higher yield and asset Vietcombank “Together for the ftir v i] Q4 plan Increase Deposit to support liquidity ratios Increase CA
Slide 16: Private placement
Private placement 2H 2022 2023 2024 1 Jan 2023 1 Jan 2024 sr —————— Engage advisors EXPECTED COMPLETION — Road shows - Due diligence - Book building - Authority's approval PLAN DETAILS © Deal size: 6.5% Chartered Capital, ~307.6 million shares, ~USD1 Bn © Subscription Price: NOT lower than {valuatio
Slide 17: Table of contents
Table of contents 3Q2022 Business Performance Company Profile 1. Business Landscape 2. History, Corporate Structure and Management Team 3. Company Highlights Growth strategy and targets IV Financial Statements Vietcombank “Together forthe future 16
Slide 18: Consumer price and USD data
(%) (%) (YoY increase in consumer price) (USD bn)
Slide 19: Banking sector overview
Banking sector overview Overview = Large number of banks (~90); of which the 4 biggest banks(*) occupy 45%-50% of deposit, lending and total assets. = Banking sector has been recovering since 2012 with stable interest rate environment, supporting healthy, double digit growth in credit and deposits.
Slide 20: Strong heritage and track record of achievements
Strong heritage and track record of achievements Corporate milestones 2020 Exclusive Bancassurance partnership with FWD 2on * Strategic partnership with we Mizuho Bank Ltd. Today Biggest bank in Vietnam # 104 among global listed banks” # 1144 among global listed companies** (oy market capitalization
Slide 21: Corporate structure
Corporate structure Total > 600 branches/ transaction offices and ~22,000 employees. Vietcombank Financial Services [ Commercial ] [ Investment Banking Other Financial Banking J Services , Vietcombank Vietcombank Matera Cts Securities (VCBS) Leasing (VCBL) (100%) (100%) Vietcombank Fund Vietnam Fina
Slide 22: Experienced management team and BoD
Experienced management team and BoD with deep industry expertise Chairman & Management team profiles = Mr. Pham Quang Dzung, Chairman, has been with VCB since 1994 and has a banking career spanning over 30 years. Before being appointed the Chairman, he held various positions in VCB, including member
Slide 23: Table of contents
Table of contents 3Q2022 Business Performance Company Profile 1. Business Landscape 2. History, Structure and Management Team Vv 3. Company Highlights Growth strategy and targets IV Financial Statements Vietcombank “Together for the ftir 22
Slide 24: Key company highlights
Key company highlights 1. Superior asset quality together with growing loan portfolio 3. System lead profit with diversified income sources and growing focus on fee income Vietcombank “Together forthe future 2. Leading CASA deposit backed by strong brand positioning 4. Heading to the future with dig
Slide 25: Growing loan portfolio with increasing retail component
1. Growing LOAN portfolio with increasing retail component ... Lending breakdown by sector = Market share ~9.6% = 2021: Total loans: ~ VND 961 tn, increased 14% against 2020; recorded 15.3% CAGR between 2017 - 2021 = Loan composition - Growing loan portfolio with a focused approach to increase loans
Slide 26: While maintaining superior asset quality
.. while maintaining superior ASSET QUALITY FY ended 31 December 2017A 2018A 2019A 2020A 2021A Loans to deposits 76.70% 78.79% 79.14% 81.37% 84.62% Loan loss reserve coverage (Provision/NPL) 130.67% 165.41% 179.5% 368.0% 420.5% NPL ratio 114% 0.98% 0.79% 0.62% 0.64% CAR (*) 1.63% 12.14% 9.60% 9.56%
Slide 27: Leading CASA deposit backed by strong brand positioning
2. Leading CASA deposit backed by strong brand positioning = Customer deposits are the largest source of total funding, accounting for ~80% = Maintaining stable market share (~10%) on the back of strong nationwide brand recognition and loyalty = 2021 deposit balance: Over VND 1,135 tn, up 10% compar
Slide 28: System lead profit
3. System lead PROFIT ... FY ended 31 December 2017A 2018A 2019A 2020A 2021A Profit before taxes 11,341 18,269 23,122 23,050 27,389 Net interest margin 2.66% 2.95% 3.13% 2.92% 3.16% Non-interest income/Operating Income 25.4% 27.67% 24.39% 26.04% 25.26% Pre-Provision Operating Profit/Equity 34.9% 44.
Slide 29: Diversified income sources and growing focus on fee income
.. With diversified income sources and growing focus on FEE income Non interest income breakdown 28% 26% 25% 2018 2019 2020 2021 mmm Cards mm Insurance mmm Other fee income mmm Domestic Payment mmm Trade Finance mmm E bank == % Non-interest income Vietcombank “Together for the ftir ™ Leader in Vietn
Slide 30: Heading to the future with digitalization
4. Heading to the future with DIGITALIZATION ... IT Development Plan 2016-2020 Totally transform VCB's IT architecture structure, creating Infrastructure and Security platform to facilitate new business requirements New Core system VCB Digibank - Omni Channel Standardized Branch Teller Customer Rela
Slide 31: Women leaders, turnover and training
% Women Leaders % Turnover Training/Staff /Year
Slide 32: Table of contents
Table of contents 3Q2022 Business Performance Company Profile 1. Business Landscape 2. History, Structure and Management Team 3. Company Highlights val Growth strategy and targets IV Financial Statements Vietcombank “Together for the ftir 31
Slide 33: Strategic plan to 2025, vision to 2030
Strategic plan to 2025, vision to 2030 No. 1 bank in Vietnam, one of the 100 largest banks in Asia, one of the 300 largest banking and financial groups in the world, J { } t } t q t } t } ‘ with 4 | diversified + q income q | structure} t q | towards } | non-interest | {income =} { } { } Vietcombank
Slide 34: Key financial and operating targets for 2025
Key financial and operating targets for 2025 Growth = Loan growth: ~ 13-15% = Deposit growth: ~ 10-12% Profitability = LDR*: < 85% = Cost to income ratio: <40% = NPL: <15% = ROAA: ~ 16% = CAR: 10%-12% = ROAE: ~ 20% (*) Under Circular 22 Vietcombank “Together forthe future 33
Slide 35: Thank you & QA
Vietcombank Thank you & QA 34
Slide 36: Table of contents
Table of contents 3Q2022 Business Performance Company Profile 1. Business Landscape 2. History, Structure and Management Team 3. Company Highlights Growth strategy and targets Vv wv Financial Statements Vietcombank “Together for the ftir 35
Slide 37: Historical Balance sheet (VND)
Historical Balance sheet (VND) FY ended 31 Dec (Figures in VND bn) 2018 2019 2020 2021 202241 2022Q2 2022Q3 Cash and cash equivalents 12,792 13,778 15,095 18,012 14,868 15,098 16,293 Balances with SBV 10,846 34,684 33,139 22,507 38,888 28,814 11,379 Current accounts, deposits and placements with ban
Slide 38: Historical Balance sheet (USD)
Historical Balance sheet (USD) FY ended 31 Dec (Figures in USD m) 2018 2019 2020 2021 2022Q1 2022Q2 2022Q3 Cash and cash equivalents 551 595 657 791 643 651 688 Balances with SBV 467 1,497 1,442 988 1,681 1,242 480 Current accounts, deposits and placements with banks 10,786 10,767 1,658 9911 8,427 1
Slide 39: Historical Income statement (VND)
Historical Income statement (VND) (Figures in VND bn) FY ended 31 Dec 2018 2019 2020 2021 3M2022 6M2022 9M2022 Interest income 55,864 67,724 69,205 70,749 19,338 40,009 62,579 Interest expenses (27,455) (33,147) (32,920) (28,362) (7,362) (15,236) (24,142) [Net interest income 28K 3487F 3628542387976
Slide 40: Historical Income statement (USD)
Historical Income statement (USD) (Figures in USD m) FY ended 31 Dec 2018 2019 2020 2021 3M2022 6M2022 9M2022 Interest income 2,408 2,915 3,01 3,106 836 1,724 2,641 Interest expenses (1,183) (1,427) (1,432) (1.245) (318) (657) (1,019) |Netinterest income a5 BST GTB 067,622 Service fee income 303 388
Slide 41: 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