Accelerating digital transformation, VietinBank is ready for the development journey

Accelerating digital transformation, VietinBank is ready for a new development journey

Recently, Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) organized an online Investor and Analyst Conference 2024. Attending the Conference, on behalf of VietinBank, there were Ms. Pham Thi Thanh Hoai - Member of the Board of Directors and representatives of key departments, divisions and units at VietinBank Headquarters. On the guest side, there were 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.

Impressive business growth

In 2023, VietinBank actively and synchronously implemented business solutions, promoted innovation, strongly transformed the growth model, rapidly shifted the income structure, and implemented a customer-centric strategy. Also in 2023, VietinBank successfully increased its charter capital to more than VND 53 trillion through issuing shares to pay dividends from 2020 profits, actively contributing to creating resources for business growth.

By December 31, 2023, VietinBank's business targets will all meet the plan assigned by the State Bank and the General Meeting of Shareholders. Specifically as follows:

- Total assets increased by 12.4% compared to the end of 2022 and this is the first year that VietinBank's 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 banking industry. Customer deposits increased by 12.9% compared to the end of 2022. Notably, in the context of a difficult market, CASA of the whole industry declined, but at the end of 2023, CASA of VietinBank still recovered strongly, increasing by 27.2% compared to the end of 2022; the proportion of CASA reached 22.6% (up 2.5% compared to 2022).

- Total operating income in 2023 will reach VND 70.7 trillion, up 10.2% compared to 2022. Non-interest income contributes 26.8% of total operating income with the main driving force from core businesses including guarantees, trade finance, foreign exchange trading...

- VietinBank's CIR ratio in 2023 reached 28.9%, lower than the 29.9% in 2022. Accordingly, net profit from business activities before risk provision expenses in 2023 reached VND 50.2 trillion, an increase of 11.8% compared to 2022 and the highest ever.

- The ratio of bad debt/outstanding loans in 4Q2023 was at 1.13%, lower than the industry's bad debt ratio and was 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 4Q2023 was 167.2% , continuing to remain at a high level.

- Pre-tax profit in 2023 will reach VND 25.1 trillion, up 18.8% compared to 2022, completing the target assigned by the General Meeting of Shareholders. NIM will reach 2.91%, ROA and ROE will reach 1.31% and 17.08%, respectively.

Accompanying the Government and standing side by side with businesses for sustainable development

The Bank has developed a Sustainable Finance Framework in line with 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 1 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).

TV. Board of Directors Pham Thi Thanh Hoai chaired the 2024 Investor and Analyst Conference

Pioneering comprehensive digital transformation in all fields

In recent times, VietinBank's Digital Banking platforms for individual and corporate customers have continuously recorded positive results: 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 iPay channel reaches 91.6% of total individual customer transactions. For corporate customers, eFAST application has attracted 107 thousand businesses to use regularly; reaching 32.5 million transactions. The proportion of transactions via eFAST channel increased to 82%.

In 2023, VietinBank has selected 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 all four pillars: Digitalization, Data, Technology and Organization. The digital transformation strategy is implemented with the expectation of creating outstanding competitiveness for the bank and bringing optimal experiences to customers.

Ready for a new stage of development

Entering a new phase, with the experience accumulated over 35 years, with a steadfast mindset and confidence in the ability to overcome difficulties, along with the policy of safe operations - 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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