2. 1. General information
3. Operating results (1Q 2013 update)
4. Strategic objectives 2013
Outline
2. Investment highlights
3. • Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank)
is a leading financial and banking group, plays a key role in Vietnamese
financial-banking system.
• Established in 1988, upon its separation from the State Bank of Vietnam
(SBV)
• In 2008, VietinBank successfully completed its Initial Public Offering (IPO)
and equitized into Joint stock corporation then listed in the Hochiminh
Stock Exchange in 2009.
• In 2009: officially renamed into Vietnam Joint Stock Commercial Bank for
Industry and Trade.
• In 2010: signed an investment cooperation agreement with International
Financial Corporation (IFC)
• In 2011: IFC officially became the foreign shareholder of VietinBank, with
the possession of 10% of VietinBank chartered capital.
• May 2012: First Bank in Vietnam to successfully issued USD250mil
international bond and listed on Singapore Exchange
• Dec 2012: Officially signed Subscription Agreement to sell 19,73% stake
for Bank of Tokyo-Mitsubishi UFJ (BTMU)
• May 2013: Complete strategic deal with BTMU
VietinBank Overview
4. Continue to expand business vertically and horizontally to increase market share1
Enhance service quality to ensure the efficiency in the context of well-managed risks2
Improve financial capability and transparency3
Strengthen corporate governance and risk management in line with international standard4
Accelerate modernization of the Bank5
Become the leading financial group and key player in Vietnam6
Maximize stakeholder’s value, employees and customers7
Vision Strives to become the leading financial group in Vietnam and highly rated
bank in the international domain
Corporate vision & strategic objectives
Overall Strategic Objectives
Motto Grow prudentially, efficiently and sustainably
5. Supervisory Board
General Shareholder Meeting
Board of Directors
CEO
Internal Audit
Internal
Controllers
Committees
Risk Management Committee
HR and Remuneration Committee
Policy Committee
ALCO Management Committee
Secretariat to Board
Management structure
Technology Development Strategy
Research Committee
Information and
Communication Division
Functional Departments
Main Operation Center
and Branches
Non-profit Making Units Representative offices
Subsidiaries and Affiliates
Deputy General Directors and
Chief Accountant
Transaction Offices
6. 1. General information
3. Operating results (1Q 2013 update)
4. Strategic objectives 2013
Outline
2. Investment highlights
7. Investment Highlights
1 Largest scale in Chartered capital and Total equity (after BTMU deal); 2rd largest bank in term of total
assets (Agribank included).
3
4
2
5
Dominant market share: 3th largest bank in total outstanding loans (12.5%), mobilized fund
(10.5%), remittance (15%), international payment (15%), leading position in number of POS & ATM
card (23% total cards issued), international cards (9.5% total cards issued).
The 2rd largest distribution network in Vietnam with nation-wide branches in all 63 provinces
and 3 branches overseas.
A strong brand name with a diversified client base (SOEs, non-SOEs, FDI companies, financial
institutions, individuals...)
Strong support from shareholders and strategic partners (IFC, BTMU)
Experienced management team and effective human resources (80.6% of VietinBank’s employees
holds bachelor degrees or higher)
Outstanding operating results in 2012.7
6
8. Large scale & dominant market share
State-OwnedJSCBanksOtherJointStockCom
Assets
($ bil)
Assets
($ bil)
Loans
($ bil)
Loans
($ bil)
Chartered Capital ($ bil)Chartered Capital ($ bil) Branches
(units)
Branches
(units)
382
629
1,274
Note: data as of 31 March 2013, Exchange Rate: 1 USD = 21,000 VND
9. • Nation-wide Network
01 Main Operation Center in Hanoi
1,274 Tier 2 Transaction offices, 157 Tier I branches and Saving offices
02 Joint-Venture Companies (Joint venture Bank of Indovina and VietinBank
Aviva Life Insurance Company)
07 Subsidiaries
03 non-profit making units
• Expand network to the world
Opened a branch in Frankfurt in September 2011 and Laos in February 2012,
Berlin in May 2012.
Expanding network to England, France, Czech, Poland and South-east Asia
nations.
• Correspondent Relationships with nearly 1.000 financial institutions in
the world
Large branch network
10. • Wholesale banking
• Retail and SME banking:
Brand, scale, branch coverage, IT system ↑ these new banking segments
Diversified customer base
11. IFC, BTMU are among strategic foreign investors
of CTG.
Support in:
risk management
technology
investment banking
retail and SMEs banking
cash & settlement service.
Support from strategic partners
Shareholder structure
12. 1. General information
3. Operating results (1Q 2013 update)
4. Strategic objectives 2013
Outline
2. Investment highlights
13. Listed banks’ operating results 1Q 2013
(unit: VND bil) CTG BIDV VCB ACB STB EIB MBB SHB Average
Total Assets 499,847 485,923 359,908 175,910 158,548 159,226 170,318 104,400 287,097
Chartered Capital 26,218 23,012 23,174 9,377 10,740 12,355 10,625 8,866 16,500
Balance Sheet
Placements with and loans to
other credit institutions 51,875 46,666 91,762 17,601 8,707 56,263 31,972 19,142 43,549
Loans to customers 324,626 344,893 208,214 107,140 98,476 74,945 73,660 54,894 175,994
Trading and investment securities 83,996 62,246 25,056 29,071 25,749 11,171 48,123 10,796 40,773
Long-term investment 2,942 4,322 2,857 1,414 241 2,390 1,528 431 2,242
Other assets 21,141 17,458 9,824 12,781 8,991 7,078 7,406 11,682 12,097
Liabilities
Deposit and borrowings from
other credit institutions 87,413 39,764 49,558 11,176 3,512 56,357 24,335 11,276 38,874
Deposits from customers 302,797 320,039 224,479 135,305 117,942 73,632 124,453 78,411 185,521
Grants, trusted funds 53,775 77,940 2,067 12,985 8,898 8,450 2,579 2,595 23,814
Total mobilized fund 444,246 446,707 285,249 159,467 130,353 138,454 151,367 92,282 250,835
Other liabilities 20,736 11,558 31,867 3,519 13,852 5,713 4,179 2,427 13,061
Capital and Reserves 34,647 27,658 41,644 12,924 14,343 15,059 14,102 9,688 22,911
Income statement
Net interest income 4,646 3,124 3,300 1,232 1,811 810 1,564 428 2,355
Net profit from services 304 515 170 171 234 60 172 34 232
Other incomes 0.33 0.29 0.63 0.04 0.15 0.01 0.11 71 0
Total income 5,284 3,924 4,104 1,441 2,198 882 1,844 532 2,811
Operating expenses 2,567 1,602 1,419 844 1,098 493 616 456 1,234
Provision expenses for credit loses 1,346 807 950 202 207 0 397 -141 559
Profit before tax 1,370 1,515 1,735 395 893 389 831 218 1,018
Profit after tax 1,042 1,146 1,347 307 676 292 627 163 777
15. Mobilized Fund structure (VND bn)
Outer ring: As at 31/12/2011: 406.886 VND bn
Inner ring: As at 31/12/2010: 318.805 VND bn
163,386
241,014
331,680
High Total deposits growth
Deposits of customers & credit institutions (VND bn)
16. Total loans and advances to customer (VND trn)
High loan growth, sustainable LAR ratio
Loan to Total assets ratio
Loan Breakdown by Customer Type (March 31, 2013) Loan Breakdown by Industry (March 31, 2013)
17. Group Q1.2013 2012 2011 2010 2009
Value
(VND bn)
%
Value
(VND bn)
%
Value
(VND bn)
%
Value
(VND bn)
%
Value
(VND bn)
%
Group 1
Current
315,506 97.59 327,054 98.11 285,213 97.20 230,267 98.32 160,510 98.37
Group 2
Special mention
2,406 0.74 1,412 0.42 6,017 2.05 2,399 1.02 1,660 1.02
NPLs 5,369 1.66 4,890 1.47 2,203 0.74 1,539 0.66 1,000 0.61
Total 324,625 100 333,356 100 293,434 100 234,205 100 163,170 100
NPL ratio is well controlled
18. Asset Quality Management
Robust Credit Systems
VietinBank has in place robust credit systems, clearly defining relevant exposure limits and credit
risk appetite
Such systems are enhanced by a strong credit culture, benefiting from well-defined delegations of
authority and reporting lines
Well Defined Sectoral,
Single Party and Group
Exposure Limits
Advances are relatively well diversified across business entities & Industrial sectors, ensuring a high
degree of diversification of potential risks
The credit policy has put in place strict exposure limits
Comprehensive Loan
Classification and
Provisioning
Requirements
Comprehensive and detailed loan classification and provisioning requirements and policies are in
place, consistent with regulatory norms and guidelines
Existence of robust procedures have resulted in positive developments in non-performing asset
measures in recent times
Strong Credit Risk
Management System
Strong Credit risk management system is in place which has ensured improvement in the asset
quality in this growing economic environment
20. High profitability
Profit results (VND bn) Operating income breakdown
ROAE and ROAA Net interest Income & Net interest Margin (VND bil)
22.99% 22.21%
26.74%
19.54%
17.35%
1.31%
1.50%
2.03%
1.41% 1.24%
2009 2010 2011 2012 1Q2013
ROAE ROAA
92% 92% 96%
81% 88%
3% 4% 2%
06%
6%
5% 4% 2%
14%
6%
2009 2010 2011 2012 1Q2013
Net interest income
Fees and commission income
Other operating income
21. Cost to Income Ratio
Total mobilized fund includes: (1) balance with government and
central bank, (2) deposit and borrowing from other credit institutions, (3)
deposits from customers, (4) financial funds, entrusted funds, (5) value
paper issued, and (6) cash management for State Treasury
Cost & Liquidity ratio
Capital Adequacy Ratio
Loan to Total mobilised fund ratio (*) – LDR adjusted
22. Subsidiaries
Total contributed
capital
(VND bn)
Percentage of
contribution
(%)
Charted capital
as at
31/03/2012
(VND bn)
Profit before
tax as at
31/03/2012
(VND bn)
VietinBank leasing Company Ltd 800 100% 800 29.4
VietinBank Securities Joint Stock
company
597 75.61% 790 17
VietinBank Debt Management and Asset
Exploitation Company Ltd
30 100% 30 0.36
VietinBank Insurance Company Ltd 500 100% 500 10.99
VietinBank Gold and Jewelry Trading
company Ltd
300 100% 300 2.06
VietinBank Fund Management Company
Ltd
950 100% 950 25.6
Global Money Transfer Company Ltd 50 100% 50 2.2
Contribution in subsidiaries
23. Vietnam listed bank positioning
Note:
• The sizes of bubbles represent bank’s total
assets
• The colors of bubbles represent bank’s NPL
ratio
– Blue bubble: NPL less than 1%
– Yellow bubble: 1%<NPL<2%
– Red bubble: 2%<NPL<3%
– Grey bubble: NPL > 3%
24. 1. General information
3. Operating results (1Q 2013 update)
4. Strategic objectives 2013
Outline
2. Investment highlights
25. Specific strategic objectives 2013
Strengthen capital base to enhance financial
strength (CAR>=10%, ROE in the range of 15-18%
and ROA in the range of 1.5-1.8%)
Expand distribution network both domestically and
internationally
Improve service quality to increase the share of
non-interest income
Focus on Commercial Banking and Investment
Banking pillars
Expand market and client base and increase market
share
Achieve total assets growth 10%
Chartered capital growth: 42%
Total mobilized fund growth 8%
Credit and investment growth 12%
Dividend: 12%
Enlarge the retail banking business
Focus on risk management: maintain NPL ratio <= 3.0%
