VietinBank: Promoting breakthrough growth in the context of economic recovery

At the conference, VietinBank’s Board of Directors updated information on business results in 2021; orientation, business plan in 2022; At the same time, discuss, exchange and answer questions from shareholders, investors, and analysts interested in the business plan in 2022, solutions to increase capital, increase CASA, improve NIM…

Positive results of 2021

Attending the conference on VietinBank’s side were Ms. Pham Thi Thanh Hoai – Member of VietinBank’s Board of Directors and representatives of leaders of a number of divisions/departments/units at the head office. On the guest side: there were nearly 70 representatives of investors, analysts from investment funds, securities companies, fund management companies; investors who are shareholders of VietinBank and potential investors at home and abroad are interested in VietinBank and investment opportunities in VietinBank shares (code CTG).

Conference to update business results in 2021 was held by VietinBank on the afternoon of April 1, 2022.

At the conference, VietinBank’s Board of Directors updated information on business results in 2021; business plan and orientation in 2022. In the context that the business environment in 2021 still faces many difficulties and challenges from the impact of the epidemic, VietinBank has made efforts to implement measures to improve the structure of profitable assets. , increase payment deposits and short-term deposits in order to save capital costs; at the same time, drastically improve products and services with high technology content and improve customer service quality, effectively deploying campaigns to attract, expand, develop customers, manage risks, optimize cost effective use. As a result, VietinBank has achieved positive results in terms of both scale and efficiency, completing and exceeding the set targets, specifically:

Credit balance increased by 11.1% compared to the end of 2020, of which the average outstanding balance increased by 12.3% compared to the end of 2020, the average proportion of outstanding loans in segments with high profitability such as retail and SME customers increase positively from 54% in 2020 to 57% in 2021.

Funds mobilized in market I consolidated reached 1.16 million billion VND, an increase of 17.3% compared to 2020. CASA deposits grew by more than 20%; The proportion of CASA deposits/total capital increases from 19.6% in 2020 to more than 20% in 2021.

Total operating income in 2021 increased by 17.2% compared to 2020. Non-interest income continued to grow, accounting for 21.4% of total operating income. In which, net service revenue increased by 13.7% compared to 2020; income from foreign currency trading reached 1.8 trillion dong, continuing to be at the top in terms of both revenue and market share of NTFPs in the market; Risk management revenue reached VND 3,245 billion, an increase of 85.2% compared to 2020.

VietinBank focuses resources on strongly implementing business topics to promote breakthrough growth in 2022

NPL ratio was controlled at 1.26%. VietinBank increased provision for risks, bad debt coverage ratio reached 180.4%.

Consolidated pre-tax profit in 2021 reached VND 17,589 billion, up 2.7% compared to 2020, creating a strong financial resource for VietinBank to continue to improve its financial capacity, expand business activities, and strengthen ability to supply capital to the economy; ensure capital adequacy ratios, improve risk management capacity, and create sustainable growth momentum of VietinBank.

Concentrating resources, realizing goals in 2022

At the conference, VietinBank’s Board of Directors discussed, exchanged and answered questions from shareholders, investors, and analysts interested in the business plan in 2022; objectives and measures to increase CASA, improve NIM; solutions to increase capital and improve the CAR ratio to comply with Circular 41/2016/TT-NHNN and ensure an appropriate reserve buffer level; boost non-interest income (service fee collection, foreign currency trading, securities trading, debt collection and risk handling…); implementing cross-selling of life insurance products (bancassurance) with Manulife Insurance Company; update the progress of divestment in subsidiaries; digital transformation roadmap to implement initiatives, increase business efficiency and VietinBank’s reputation and brand in the market.

In particular, regarding business development solutions in 2022, VietinBank will continue to focus its resources to strongly implement business topics, promote breakthrough growth, and stick to the main goals: (i) Selective credit growth coupled with effective safeguards, focusing on production and business sectors, priority areas, focusing on growth of market share of SMEs, Retail; (ii) Shifting the term structure of capital in the direction of increasing CASA, increasing short-term deposits, optimizing average mobilization costs, drastically reducing input capital costs; (iii) Promoting non-interest income, focusing on promoting fee products, foreign currency trading, guarantee, insurance, etc… through exploiting the ecosystem and providing comprehensive financial solutions for customers, promoting the distribution of bancassurance life insurance products, creating a breakthrough in 2022; (iv) Promote digital transformation, speed up digitization to optimize the efficiency of using resources, increase customer experience, perform synchronously throughout the system; (v) Strictly control credit for potential risk areas; strengthen bad debt recovery and risk settlement debt. Regarding the cross-selling of life insurance products with Manulife Insurance Company, VietinBank aims to be Top 5 in bancassurance life insurance by the end of 2022 and Top 3 within the next 3 years.

Some key contents of VietinBank’s 2022 business plan (which is being submitted to competent state agencies for approval before submitting to the 2022 Annual General Meeting of Shareholders) are as follows:

– Total assets: Growth of 5%-10% compared to the end of 2021;

– Credit balance: According to the approval of the State Bank (Specific growth rate according to monetary policy management, targets assigned by the State Bank and necessary needs of the economy, the current credit limit assigned by the State Bank is as follows: ten%);

– Mobilization from financial institutions & residents: Growth of 8%-10%, adjusted in line with credit growth, ensuring safe ratios according to regulations of the State Bank;

– Ratio of bad debt/credit balance according to Circular 02: < 1.8%;

– Individual profit before tax: Growth of 10-15% and adjusted according to the approval of the competent state agency.

VietinBank’s 2021 business results update conference took place in an atmosphere of open dialogue, thereby providing updated and in-depth information for analysis and assessment of investment opportunities in CTG’s shares. market leading securities companies, fund management companies and investment funds. The success of the conference contributed to strengthening VietinBank’s image of transparency in information, efficiency in operations and strengthening of close relationships with the investor community.

PV