Vietin bank ir presentation q2.2015
-
Upload
bibi8x0883 -
Category
Investor Relations
-
view
617 -
download
0
Transcript of Vietin bank ir presentation q2.2015
IR Presentation
Quarter II - 2015
Improving the values of life
Table of contents1. General information
2. Investment highlights
3. Performance
1. General information Important Milestones Corporate Vision & Strategic Objectives Organization Structure Awards
VietinBank Overview
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.
1988 Established upon the separation from The State Bank of Vietnam (SBV).
2008 Went public through IPO and listed on Hochiminh Stock Exchange (HOSE) one year later
2009 Officially renamed into Vietnam Joint Stock Commercial Bank for Industry and Trade (or VietinBank in short)
2011 IFC officially became the foreign strategic shareholder of VietinBank with 10% stake ownership
2012
Became the first bank in Vietnam to successfully issue USD250mil international bond listed on Singapore Exchange
Sold 19.73% stake to Bank of Tokyo-Mitsubishi UFJ (BTMU) as a second foreign strategic shareholder.
Corporate Vision & Strategic Objectives
Continue to complete the organizational structure vertically, increase business network1
Improve service quality2
Enhance risk management capabilities in line with international practice, apply Basel II standards3
Strengthen corporate governance, efficient governance in accordance with international practice4
Accelerate the modernization of the Bank’s IT system5
Create added value for stakeholders, employees and customers6
Vision Striving to become the leading financial group in Vietnam and high ranking bank in the international market
Strategic Objectives
Motto Growing prudentially, efficiently and sustainably
Robust group structure
Head Office
Operation Centre Branches Representative Offices Non-profit Making Units Subsidiaries & Affiliates
Transaction Offices
VietinBank Leasing
Company Ltd
VietinBank Securities Joint Stock company
VietinBank Debt and
Asset Management Company Ltd
VietinBank Insurance
Company Ltd
VietinBank Aviva Life
Insurance Joint Venture
Company
VietinBank Fund
Management Company
Ltd
Financial Leasing
Asset management
Non-life insurance Life Insurance Fund
managementBanking and
Finance
VietinBank Gold and Jewelry
Trading company Ltd
Securities
Indovina Joint Venture
Bank
Manufacture, design and trade
in gold and precious metals
and gems
1 2 3 4 5 6
Saving Offices
VietinBank Global Money
Transfer Company Ltd
International Remittance
7 8 10
VietinBank Lao Ltd
Banking and
Finance
9
Solid management structure and governance
Supervisory Board
Board of Directors
Board of Management
Internal Audit Department
Committees
Secretariat to Board
Risk Management Committee
HR and Remuneration
Committee
Policy Committee
Assets and Liabilities
Management Committee
Head OfficeMain Operation
Center and Branches
Non-profit Making Units
Representative offices
Transaction Offices and
Savings Offices
Credit CommitteeFinancial Institutions Committee
Divisions and Departments
General Shareholder s’ Meeting
Awards
According to Brand Finance, VietinBank brand name is grade A and worth 197 million USD, ranked the 437 th in the world. This is the 3rd time VietinBank was selected and shortlisted into Top 500 financial institutions with strong brand name – the most valuable awards for the banks in the world.
According to Vietnam Report và Vietnamnet E-Newspaper, VietinBank ranked the 20 th among Top 500 big corporations in Viet Nam (VNR500). At the same time, VietinBank was honored to be shortlisted into best enterprises in Viet Nam.
VietinBank was also named the 3rd consecutive times and ranked the 1.854th in 2014 by the Forbes Global 2.000 awards.
• Ranked the 437th, 328th and 434th for 2014, 2013 and 2012 respectively.
• Ranked the 20th in the Top 500 Vietnam Group
• The best awards in Viet Nam
• Awarded by the Ministry of Industry and Trade
• Awarded the 11th consecutive time in 2014
• Being honored as a leading business in the financial sector to pay corporate income tax.
• Ranked the 5th and in five consecutive years, VietinBank in the Top 10 Business
• Awarded the organizations that providing the best financial services in Vietnam
• Ranked the 1.854th in 2014• Awarded the 3rd consecutive years.
2. Investment highlights Chartered Capital, Total Equity and Total Asset Market Share Network Brand name & Client base Shareholder support Corporate governance and HR Operating results vs. other listed banks
Strong abilities
23
4
56
7
8
1
Top financial institution in Vietnam with dominant market share: • Loans (12.3%)• Mobilized fund (10.4%)• Investment Banking (16.5%)• Remittance (15%)• International payment (12.9%)• Leading position in cards services (21%)
Highest operational efficiency and most remarkable business performance in Vietnamese banking system
World-wide and Nation-wide network
Largest scale in Charter Capital and Total Equity
Experienced management team and effective human resources
A strong brand name with a diversified client base
Strong shareholder support
Solid infrastructure with modern technology system
Investment Highlights
Large scale & dominant market share
Assets (USD, Bil)
Equity (USD, Mil)
Chartered Capital (USD, Mil)
Networks(units)
Stat
e-ow
ned
cred
it in
stitu
tions
Join
t-sto
ck c
omm
erci
al b
anks
8
9
6
10
9
27
33
32
503
820
668
875
569
2,115
1,626
2,519
409
535
570
573
433
1,230
1,453
1,718
408
417
318
346
328
725
1,092
Note: Data as of 30/06/2015
Network Overview
Presence across the nation:• 01 Head Office in Hanoi• 01 Main Operation Center in Hanoi• 149 Local branches with over 900 transaction offices
and savings offices in all cities and provinces• 02 Representative offices in Da Nang and Ho Chi
Minh City• 03 Functional units• 07 Subsidiaries (insurance, securities, financial
leasing, fund management, assets management, gold and jewelry, global money transfer)
• 02 Joint-venture companies (Indovina Bank & VietinBank Aviva Insurance Company)
• Nearly 2000 ATMs
Foreign expansion:• 01 Branch in Frankfurt, Germany• 01 Branch in Berlin, Germany• 01 Subsidiary in Laos (VietinBank Lao Ltd)• 01 Representative office in Myanmar
VietinBank has established banking relationships with 1000 banks in 90 countries and territories all over the world
1 Main Operation Center in Ha Noi
151 branches, over 900
transaction offices and
savings counters
3 Representative offices
2 Joint-Venture Companies
8 Subsidiaries
3 non-profit making units
North
72 Branches +01 Main Operation
Center
Central
27 Branches
South
51 Branches
Global Reach Plan
1 Main Operation Center in Ha Noi
151 branches, over 900 transaction
offices and savings counters
3Representative
offices
2 Joint-Venture Companies 8 Subsidiaries 3 non-profit making
units
Our current position We are also proud of having correspondences
with more than 1,000 banks in 90 countries
Opened branches: Frankfurt: Sep 2011 Laos : Feb 2012 Berlin : May 2012
Open representative office in Myanmar in 2013
For the period from 2014-2015: Upgrading VietinBank
Laos Branch into VietinBank Lao Ltd.,
Establishing VietinBank’s subsidiaries in Cambodia and the Republic of the Union of Myanmar
Reputable & Diversified Corporate Customer
VietinBank has fostered strong banking relationships with some of the most well-established corporates in Vietnam
Structure of ownership
Major Shareholders’ stakes
Shareholder
VietnameseGovernment
IFC
BTMU
Support
Government owns 64.46% of VietinBank’s Charter Capital. Government ownership ratio will not fall below 51% at any time.
The majority of Board of Director’s members are appointed by the Government.
Cooperation Agreement with IFC covers: Risk management Banking services for SMEs Energy Efficiency Project Information technology
Technical Assistance & Business Collaboration Agreement with BTMU covers: Risk management & Basel II Implementation Information technology Investment banking Retail and SMEs banking Cash collection and settlement service
64.46%8.03%
19.73%
7.78%
State Bank of Vietnam IFC
BTMU Others
Major shareholders’ supports
2015’s strategic objectives
Strengthen capital base to enhance financial strength (CAR>9%, ROE in the range of 10-11% and ROA in the range of 1-1.2%)
Continues to consolidate organizational structure and operating model with the launch of the ORP project (consulted by McKinsey and Ernst & Young)
Improve service quality to increase the portion of non-interest income
Focus on Commercial Banking and Investment Banking pillars
Enlarge the retail banking business
Expand market and client base to increase market share.
Expand distribution network both domestically and internationally
Dividend: 7-9%Focus on risk management: NPL ratio/total credit exposure <3.0%
Growth: Assets: 13% Mobilized fund: 14% Credit: 13% (SBV approved to
raise to 16%)
VietinBank vs. other banks – Q2/2015
(Unit: USD Million) CTG BIDV VCB ACB STB EIB MBB SHB AverageTotal Assets 31,641 33,443 26,601 8,743 9,725 6,006 9,432 8,201 16,724 Chartered capital 1,718 1,453 1,230 433 573 570 535 409 865 Balance sheet Placements with and loans to other banks 2,209 2,263 4,998 236 225 424 884 856 1,512
Loans and advances to customers 22,174 23,912 15,722 5,922 6,492 3,852 5,115 5,472 11,083 Trading and investment securities 4,868 4,717 4,656 1,877 1,806 1,054 2,810 835 2,828 Trading securities 61 163 454 46 563 0 498 1 223 Investment securities 4,806 4,555 4,202 1,831 1,243 1,054 2,312 834 2,605 Long-term investments 179 232 163 34 13 89 69 14 99 Other assets 1,229 901 366 400 421 177 351 721 571 Liabilities Deposits and borrowings from other banks 4,790 3,416 2,241 362 282 332 355 794 1,572
Customer deposits 20,726 24,503 21,207 7,494 8,303 4,779 7,895 6,503 12,677 Financing funds, entrusted funds 1,878 1,595 0 8 92 0 9 12 449 Other liabilities 1,165 903 557 171 173 86 207 129 424 Owner's equity and Funds 2,519 1,626 2,115 569 875 668 820 503 1,212 Income statement (accummulated)
Net interest and similar income 444 391 326 127 183 53 179 67 221 Net profit from services 31 48 44 16 24 7 11 3 23 Other income 32 71 80 5 8 5 20 0 28 Total income 508 510 450 147 215 65 210 71 272 Operating expenses 212 201 150 91 105 50 71 37 114 Provision for credit losses 117 164 154 23 32 8 55 11 71 Profit before tax 179 145 145 34 70 26 84 22 88 Profit after tax 140 116 113 26 54 20 66 17 69
3. Performance Stable deposits growth & high liquidity High credit growth, well controlled NPL ratio Safe & diversified securities portfolio Strong financial results Contribution in subsidiaries CTG Stock Performance
Stable deposits growth
Mobilized Fund structure (USD, Mil) Deposits of customers & credit institutions (USD, Mil)
Inner ring: As at 31 Dec 2014: USD 28,040 MilOuter ring: As at 30 Jun 2015: USD 28,365 Mil
0.79%
17%
71%
5%1%
4%
0.31%
17%
73%
7% 2%1%
Due to Gov and SBVDeposits & borrowing from other banksCustomer DepositsSponsor capital, Entrusted InvestmentValue paper issuedOther mobilized funds
0
5,000
10,000
15,000
20,000
25,000
30,000
9,56612,050
13,56817,156
19,95719,967
20,7261,492
3,366
4,572
3,796
4,895 3,6234,790
Deposit &borrowing from other banksCustomer Deposits
High liquidity
Customer Deposit Breakdown by Type of business (31.12.2014)
Customer Deposit Breakdown by by Tenor (30.06.2015)
CAR ratio
14.03%
82.65%
0.55%
2.77%Demand deposits
Term deposits
Deposits for specific purpose
Margin deposit20
1020
1120
1220
1320
14
Q1/201
5
Q2/201
50%
2%
4%
6%
8%
10%
12%
14%
8.02%
10.57%10.33%
13.17%
10.40%
11.46% 11.46%
26.01%
7.17%
4.78%55.81%
6.23%SOEs Other business entities
FDI Individuals
Others
High credit growth, sustainable LAR ratio
Total loans and advances to customer (USD, Mil)
Loan Breakdown by Type of business (31.12.2014)
Loan to Total assets ratio
Loan Breakdown by Tenor (30.06.2015)
2010 2011 2012 2013 2014 Q1/2015 Q2/20150
5,000
10,000
15,000
20,000
25,000
11,01813,811
15,69017,711
20,704 20,97422,174
2010 2011 2012 2013 2014 1Q2015 2Q2015
63.69% 63.71%
66.20%65.28%
66.53%
69.69% 70.08%
57.95%
10.05%
32.00%
Short term
Medium term
Long term
31.86%
46.30%
4.41%16.81%
0.62%SOEs
Other business entities
FDI
Individuals
Others
2010 2011 2012 2013 2014 Q1/2015 Q2/2015
63.69% 63.71%
66.20% 65.28%66.53%
69.69% 70.08%
NPL ratio is well controlled
Group
Q2/2015 Q1/2015 2014 2013 2012 2011
Value
(USD, mil)
%Value
(USD, mil)
%Value
(USD, mil)
%Value
(USD, mil)
%Value
(USD, mil)
%Value
(USD, mil)
%
Group 1
Current21,676 97.75 20,312 96.84 20,295 98.03 17,404 98.27 15,394 98.11 13,424 97.20
Group 2
Special mention
176 0.79 285 1.36 177 0.86 129 0.73 66 0.42 283 2.05
NPLs 322 1.45 377 1.80 231 1.12 177 1.00 230 1.47 104 0.75
Total 22,174 100 20,974 100 20,704 100 17,711 100 15,690 100 13,811 100
2008 2009 2010 2011 2012 2013 2014 Q1/2015 Q2/20150.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%
1.81% 0.61% 0.66% 0.75%
1.47%1.00% 1.12%
1.80%1.45%
2.10%2.50% 2.40%
3.47%
4.09%3.79%
3.25%3.81%
3.15% (*)
VietinBank
Banking average
(*): NPL ratio of banking industry by the end of May 2015
•VietinBank has a 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
Robust Credit Systems
•Loans and advances are relatively well allocated according to business entities & industry sectors, ensuring a high degree of diversification of potential risks
•The credit policy has put in place strict exposure credit limits
Well Defined Sectoral, Single Party and Group Exposure Credit Limits
•Comprehensive and detailed loan classification and provisioning requirements and policies are in place, in consistent with regulatory norms and guidelines
•Existence of robust procedures have resulted in positive developments in non-performing asset measures in recent times
Comprehensive Loan Classification and
Provisioning Requirements
•Strong Credit risk management system is in place which has ensured improvement in the asset quality in this growing economic environment
Strong Credit Risk Management System
Asset Quality Management
Safe & diversified securities portfolio
Components of Investment portfolioInvestment portfolio (USD, Mil)
2010
2011
2012
2013
2014
Q1/201
5
Q2/201
50%
5%
10%
15%
20%
25%
30%
35%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
5,420
6,4336,332
7,539
8,327
7,108 7,303
31.1%29.7%
26.7% 27.8%26.8%
23.6%
24.5%
Total investment Investment to total asset ratio
43%
55%
0.06%
2% 30%
67%
0.11%
2%
Interbank Debt securities Equity securities
Long-term investments
Inner ring: As at 31 Dec 2014Outer ring: As at 30 Jun 2015
Strong financial results
Profit results (USD, Mil)
Financial ratios
Operating Income Breakdown
Cost to income ratio
2010 2011 2012 2013 2014 Q1/2015 Q2/20150
100
200
300
400
500
600
700
361
625 590 559 527
143
296
164
296 295 273 270
58140
Profit before provisions for credit losses Profit after tax
2010 2011 2012 2013 2014 Q1/2015 Q2/20150%
1%
2%
3%
0%
5%
10%
15%
20%
25%
30%
1.5%
2.0%1.7%
1.4%1.2%
1.0% 1.2%
22.1%
26.7%
19.9%
13.7%10.5% 9.0% 11.1%
ROA ROE
2010 2011 2012 2013 2014 Q1/2015 Q2/20150%
20%
40%
60%
80%
100%
82% 90% 84% 84% 84% 89% 87%
10% 5% 6% 7% 7% 5% 6%9% 5% 10% 9%
9% 6%6%
Other operating income Fees and commission incomeNet interest income
2010 2011 2012 2013 2014 Q1/2015 Q2/201536%
38%
40%
42%
44%
46%
48%
50%48.57%
40.57%
42.96%
45.49%46.72%
41.50% 41.68%
Contribution in subsidiaries
SubsidiariesTotal
contributed capital
(USD, mil)
Percentage of
contribution(%)
Charted capital as at
30.06.2015 (USD, mil)
Profit before tax as at
30.06.2015 (USD, mil)
VietinBank Fund Management Company Ltd 43.83 100% 43.83 1.71
VietinBank Leasing Company Ltd 36.91 100% 36.91 2.54
VietinBank Securities Joint Stock Company 36.45 75.61% 36.45 1.96
VietinBank Insurance Company Ltd 23.07 100% 23.07 1.35
VietinBank Gold and Jewelry Trading Company Ltd 13.84 100% 13.84 0.31
VietinBank Debt Management and Asset Exploitation Company Ltd
5.54 100% 5.54 0.05
Global Money Transfer Company Ltd 2.31 100% 2.31 0.26
CTG Stock Performance – 1H2015
Value
The closing price on 05th Jan 2015 13,900 VND/share
The closing price on 30th June 2015 19,200 VND/share
The highest prices in 1H2015 13,900 - 21,200 VND/share
Volume 279,451,620 shares
Trading value 5,455 Billion VND
The trading volume of foreign investors Net purchase 31,898,820 share
Foreign owned 1,101,488,251 cp (29.58%)
Current room of foreign investors
15,533,116 cp (0.42%)
EPS 1,630 VND/share
P/E (30th June 2015) 11.78x
BVPS 19,200 VND/share
P/B (30th June 2015) 1.42x05/01/2015 29/01/2015 04/03/2015 30/3/2015 23/4/2015 25/5/2015 18/06/2015
80%
100%
120%
140%
160%
180%
200%
Growth of VN-Index and Bank Stock -1H2015
CTG VCB BID MBB STB ACBVNIndex
05/01/2015 30/01/2015 06/03/2015 2/4/2015 5/5/2015 1/6/2015 26/06/20150
5
10
15
20
25
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
CTG Stock Performance – 1H2015
Volumn (Thousands of share) CTG price
Thou
sand
s do
ng
Website for investorshttp://investor.vietinbank.vn
For further information, please contact:
Investor Relations - Board of Director SecretariatsVietinBankAddress: 108 Tran Hung Dao street, Hanoi, Vietnam. Email: [email protected] Tel: 84-4-3 941 3622
Thank you!
Disclaimer : This presentation is prepared by using financial reports and other reliable sources with the aims to provide
information only. Readers should use this presentation as a reference source. The information might be updated from time to time and we have no responsibility to notify about that change.