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

Event News March 1, 2024 09:00

On the afternoon of February 29, 2024, VietinBank organized an online Investor and Analyst Conference 2024 to update the business results (KQKD) of the fourth quarter of 2023 and the operational orientation for 2024. Attending the Conference, on behalf of VietinBank, there was Ms. Pham Thi Thanh Hoai - Member of the Board of Directors (BOD) and representatives of the Leaders 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 (SCs), fund management companies; shareholders of VietinBank; potential investors (NĐT) interested in investment opportunities in CTG shares.

Impressive growth In 2023, VietinBank actively implemented synchronous business solutions, promoted innovation, strongly transformed the growth model, and rapidly shifted the income structure. With the customer-centric strategy, VietinBank determined its competitive approach by focusing on developing modern financial banking solutions, improving consulting capacity and service quality, and maximally meeting the financial needs of customers. Also in 2023, VietinBank implemented measures to improve financial capacity, successfully increasing 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.

VietinBank increases charter capital to over 53 trillion VND

By the end of December 31, 2023, VietinBank's business targets have all met the plan assigned by the State Bank of Vietnam (SBV) and the General Meeting of Shareholders (GMS). Specifically as follows: - Total assets reached VND 2.03 million billion, up 12.4% compared to the end of 2022. This is the first year that VietinBank's total assets reached over VND 2 million billion. Outstanding loans reached VND 1.47 million billion, up 15.6% compared to the end of 2022, the highest growth in the entire banking industry. Capital mobilization is balanced in line with credit growth rate, ensuring liquidity safety ratios. Customer deposits reached VND 1.41 trillion, up 12.9% compared to the end of 2022. Notably, in the context of a difficult market, CASA of the whole industry declined, but by the end of 2023, VietinBank's CASA still recovered strongly, up 27.2% compared to the end of 2022; CASA proportion reached 22.6% (up 2.5% compared to 2022). - Total operating income in 2023 reached VND 70.7 trillion, up 10.2% compared to 2022. VietinBank promoted the shift in income structure through comprehensive, all-inclusive financial solutions, improving the quality of products and services...

Net interest income (excluding guarantee fees) increased by 10.3% compared to 2022.
Non-interest income contributes 26.8% of total operating income with the main driving force from core businesses including: Guarantee, Trade Finance, foreign currency trading... In which: Net income from service activities (including guarantee fees) in 2023 reaches 8.5 trillion VND, up 26.3% compared to 2022. Net income from foreign exchange trading continues to grow by 19.5% compared to 2022. VietinBank continues to be in the Top in both revenue and market share of foreign currency trading in the market.

- VietinBank's CIR ratio in 2023 reached 28.9%, lower than the 29.9% in 2022, showing VietinBank's efforts in optimizing the efficiency of using and managing operating costs, prioritizing business promotion activities and key projects of VietinBank. In addition, in 2023, VietinBank's total operating income continued to improve, achieving a growth rate higher than the growth rate of operating costs, also helping to reduce the CIR ratio. - Net profit from business activities before risk provision expenses in 2023 reached VND 50.2 trillion, up 11.8% compared to 2022 and reaching the highest level ever. Risk provision expenses in 2023 are VND 25.1 trillion, up 5.6% compared to 2022. Accordingly, pre-tax profit in 2023 will reach VND 25.1 trillion, up 18.8% compared to 2022, completing the target set by the 2023 Annual General Meeting of Shareholders on the basis of ensuring operational safety indicators. - The ratio of bad debt/outstanding loans in the fourth quarter of 2023 is 1.13%, lower than the bad debt ratio of the whole industry and is the only bank in the group of leading commercial banks to reduce the bad debt ratio compared to 2022. The bad debt coverage ratio in the fourth quarter of 2023 is 167.2%, continuing to remain at a high level. - Performance indicators continue to record similar or improved levels compared to the end of 2022: NIM reached 2.91%, ROA and ROE reached 1.31% and 17.08%, respectively. Sustainable development Sustainable development is one of VietinBank's key strategies, in addition to the goal of effective business and profit growth. In 2023, VietinBank has built a Sustainable Finance Framework according to international practices, providing specific guidelines for funding and managing funding for a portfolio of Green and Social projects; 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, up from 1.47% at the end of 2018), including the following areas: Green agriculture, sustainable forestry, renewable energy, recycling of resources, waste treatment and pollution prevention, sustainable water management in urban and rural areas. In addition, VietinBank continues to promote its role as a key State-owned commercial bank in implementing programs to support businesses, society, and the community. In 2023, VietinBank will reduce lending interest rates and cut fees to support businesses and people to restore production and business in the context of many economic difficulties and unpredictable fluctuations. At the same time, VietinBank will allocate nearly 300 billion VND for social security work, actively contributing to sustainable economic development and improving people's material and spiritual lives.

Board member Pham Thi Thanh Hoai (2nd from left) chaired the 2024 Investor and Analyst Conference

Pioneering comprehensive digital transformation In recent times, VietinBank's digital banking platforms for individual customers and corporate customers have continuously recorded positive results: VietinBank iPay Mobile for individual customers continued to attract nearly 7.8 million users, an increase of 23% compared to 2022; reaching 1,180 million transactions (equivalent to more than 98 million transactions per month) , an increase of 58.5% compared to 2022. The proportion of transactions via iPay channel reached 91.6% of total individual customer transactions, an increase of 5.8% compared to 2022. VietinBank iPay Mobile is not only a digital banking application but also a digital ecosystem, connecting to more than 2,400 service providers, providing all daily needs of customers. For corporate customers, the eFAST application is considered a digital financial assistant with more than 130 features that have attracted 107,000 businesses to use it regularly; the number of transactions in 2023 reached 32.5 million transactions, equivalent to 2022. The proportion of transactions via the eFAST channel increased to 82% (from 80% in the same period in 2022). In parallel with enhancing digitalization and applying technology to operations, VietinBank has built a comprehensive Digital Transformation strategy. In 2023, VietinBank selected the world's leading consulting firm to accompany VietinBank in building and implementing the Digital Transformation strategy for the period 2024 - 2028 with 4 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 development journey

VietinBank is steadfast in its goal of safe, effective and sustainable development.

The results achieved in 2023 have created a solid foundation for VietinBank to adhere to the strategy of safe - effective - sustainable development, promote digital transformation, promote strengths in products and services, aiming to become a modern, multi-functional, leading bank in Vietnam. In the coming time, VietinBank will continue to promote the implementation of 5 key business themes: (i) Credit growth; (ii) CASA growth; (iii) Promote non-interest activities, focusing on exploiting trade finance, foreign currency trading, guarantees, card fees, insurance, etc.; (iv) Recover bad debts, debts that have been handled with risks; (v) Promote effective exploitation of the ecosystem and cross-selling activities and 5 key fundamental themes: (i) Enhance the efficiency of channel shifting; (ii) Control debt quality and improve the efficiency of debt handling and classification; (iii) Continuously improve service quality; (iv) Improve the quality of human resources; (v) Deploying digital transformation initiatives and building fast execution capacity. 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.

VietinBank Investor Relations Department

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