VietinBank Investors and Analysts Conference

Vietnam Joint Stock Commercial Bank for Industry and Trade recently held an online "Conference of Investors and Analysts 2024" on February 29.

The conference was attended by the Board of Directors and representatives of key departments, divisions and units at VietinBank headquarters. On the guest side, nearly 80 analysts from more than 60 organizations, representing investment funds, securities companies, fund management companies; shareholders of VietinBank; potential investors interested in investment opportunities in CTG shares participated. At the event, representatives of VietinBank shared about the results achieved in 2023 and the development plan for 2024.

Business growth

In 2023, VietinBank will synchronously deploy business solutions, promote innovation, transform the growth model, rapidly shift the income structure, and implement a customer-centric strategy. At the same time, the bank will also successfully increase its charter capital to more than VND 53,000 billion through issuing shares to pay dividends from 2020 profits, actively contributing to creating resources for business growth.

By the end of December 31, 2023, VietinBank's business targets all met the plan assigned by the State Bank and the General Meeting of Shareholders. Accordingly, total assets increased by 12.4% compared to the end of 2022 and was the first year that total assets reached the milestone of more than 2 million billion VND. Outstanding loans increased by 15.6% compared to the end of 2022, the highest growth in the entire banking industry. Customer deposits increased by 12.9% compared to the end of 2022. In the context of a difficult market, VietinBank's CASA still recovered at the end of 2023, increasing by 27.2% compared to the end of 2022; the CASA ratio reached 22.6% (up 2.5% compared to 2022).

Board member Pham Thi Thanh Hoai (second from left) chaired the "2024 Investor and Analyst Conference". Photo: VietinBank

Total operating income in 2023 will reach VND 70,700 billion, up 10.2% compared to 2022. Non-interest income contributes 26.8% of total operating income, driven mainly by core businesses including guarantees, trade finance, foreign exchange trading, etc. VietinBank's CIR ratio in 2023 will reach 28.9%, lower than 29.9% in 2022. Accordingly, net profit from business activities before risk provision expenses in 2023 will reach VND 50,200 billion, up 11.8% compared to 2022 and reaching the highest level ever.

The bad debt ratio and outstanding loans in the fourth quarter of 2023 were at 1.13%, lower than the industry's bad debt ratio and the only bank in the group of leading commercial banks to reduce its bad debt ratio compared to 2022. The bad debt coverage ratio in the fourth quarter of 2023 was 167.2%, continuing to remain at a high level. Pre-tax profit in 2023 reached VND 25,100 billion, an increase of 18.8% compared to 2022, completing the target set by the shareholders' meeting. NIM reached 2.91%, ROA and ROE reached 1.31% and 17.08%, respectively.

Accompanying the government and standing side by side with businesses for sustainable development, the bank has built a Sustainable Finance framework according to international practices, providing specific guidelines for financing and managing grants for a portfolio of green and social projects.

VietinBank signed a cooperation agreement with the Ministry of Natural Resources and Environment , signed an agreement with MUFG to mobilize up to one billion USD at COP28... As of December 31, 2023, VietinBank's total green credit balance reached VND 47,465 billion with nearly 1,000 customers (accounting for 3.24% of total credit balance).

Comprehensive digital transformation

In recent times, VietinBank's digital banking platforms for individual and corporate customers have continuously recorded positive results. The VietinBank iPay Mobile application for individual customers continues to attract nearly 7.8 million users, reaching 1,180 million transactions. The proportion of transactions via the iPay channel reaches 91.6% of total individual customer transactions. For corporate customers, the eFAST application attracts 107,000 regular users, reaching 32.5 million transactions. The proportion of transactions via the eFAST channel increases to 82%.

In 2023, VietinBank will select the world's leading consulting firm to accompany the bank in building and implementing the digital transformation strategy for the period 2023 - 2025, with a vision to 2030, with 4 pillars: digitalization - data - technology and organization. The digital transformation strategy is implemented with the expectation of creating competitiveness for the bank and bringing optimal experiences to customers.

Entering a new phase, with the experience accumulated over 35 years and confidence in the ability to overcome difficulties along with the policy of safe operation - effective business - sustainable development, VietinBank will continue to firmly step on the path of development to reach new heights in the banking and financial market.

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