Vietcombank. October 2018

Transcription

1 Vietcombank October 2018

2 Table of contents 1. Vietcombank overview 2. Business landscape 3. Key company highlights 4. Growth strategy and targets 5. 3Q 2018 updates 6. Annexes 1

3 1. Vietcombank overview 2

4 A leading player in Vietnam's banking sector Market position in Vietnam by (1) : #1 #2 #3 #1 Market capitalisation Ownership Capital Total Assets, Loans and Non-bank Deposits PBT US$ 8.7 bn US$ 2.4 bn US$ 46.2 bn US$ 24.2 bn US$ 31.6 bn US$ 506 mn Universal banking model across a wide range of financial services spanning retail, corporate and financial institutional clients 537 branches/ transaction offices and ~16,800 employees #1 #1 #1 Card Services ATM & Point-of-Sale Networks E-banking 16.3 mn cards 2,487 ATMs 47,030 PoS 13.1 mn users VCB maintains highest ratings among Vietnamese banks by international credit rating firms Listed on the Ho Chi Minh Stock Exchange ( HOSE ) since 2009 #1 FX US$ 45.1 bn Firm S&P Fitch Moody s #1 International Settlement US$ 69.4 bn Rating BB-/bb- BB-/b Ba3/b1 Outlook Stable Stable Stable (1) As of Dec

5 Strong heritage and track record of achievements Corporate milestones Key shareholders IPO & became JSCB 1990 Changed to Universal Commercial Bank 1963 Established (SOCB) Foreign investor, 5.74% Mizuho 15.00% Domestic investor, 2.15% SBV 77.11% 2009 Listed in HCM Stock Exchange 2011 Entered a strategic partner relationship with Mizuho Corporate Bank Ltd. Today Most reputable bank brand name in Vietnam Major awards Best Listed Company in Vietnam Best Cash Management Bank in Vietnam Strongest Banks in Asian Pacific 2016 Best Bank in Trade Finance/ Card Services in Vietnam 2016 Best Transaction Bank in Vietnam 2016 Best Bank in Vietnam 2016 Best Local Bank in Vietnam Ranked # 485 among the world s top 1000 banks Note: SOCB refers to State Owned Commercial Bank and JSCB refers to Joint Stock Commercial Bank. 4

6 Corporate structure Vietcombank Financial Services Non-Financial Services Commercial Banking Investment Banking Other Financial Services Insurance Real Estate Vietcombank Laos (100%) Vietcombank Securities (VCBS) (100%) Vietcombank Leasing (VCBL) (100%) VCB Cardif Life Insurance (45%) VCB Tower 198 (70%) Vietcombank Fund Management (VCBF) (51%) Vietnam Finance Co. (Vinafico HK) (100%) VCB Bonday Benthanh (52%) VCB Money (87.5%) VCB Bonday (16%) Vietcombank Remittance (VCBR) (100%) Domestic Subsidiaries Joint Ventures Foreign Subsidiaries 5

7 Experienced management team and BoD with deep industry expertise Chairman and CEO profile Mr. Nghiem Xuan Thanh, Chairman of Board of Directors, has been with VCB since 2013 and has a banking career spanning over 25 years in various banks in Vietnam and in the State Bank of Vietnam. Before being appointed the Chairman, Mr. Thanh was member of the Board of Directors and concurrently the CEO of VCB Mr. Pham Quang Dzung, Chief Executive Officer, has been with VCB since 1994 and has over 20 years of banking and finance experience in Vietnam. Before being appointed the CEO, he held various positions in VCB, including member of the Board of Directors and the Deputy CEO Board of Directors Board of Management Supervisory Board Nghiem Xuan Thanh Chairman of the BoD Pham Quang Dzung Member of the BoD cum CEO Pham Quang Dzung Chief Executive Officer Pham Manh Thang Deputy CEO Truong Le Hien Head Of Supervisory Board Truong Gia Binh Member of the BoD Nguyen Manh Hung Member of the BoD Dao Hao Deputy CEO Nguyen Thi Kim Oanh Deputy CEO La Thi Hong Minh Member of Supervisory Board Nguyen My Hao Member of the BoD Eiji Sasaki* Member of the BoD cum Deputy CEO Dao Minh Tuan Deputy CEO Dinh Thi Thai Deputy CEO Do Thi Mai Huong Member of Supervisory Board Hong Quang Member of the BoD Pham Anh Tuan Member of the BoD Truong Thi Thuy Nga Deputy CEO Phung Nguyen Hai Yen Deputy CEO Vu Thi Bich Van Member of Supervisory Board * Also serves as member of the Board of Management. Le Quang Vinh Deputy CEO Le Hoang Tung Chief Accountant Thomas W. Tobin Head of Retail Banking Group Nguyen Thanh Tung Head of Corportate Banking Group 6

8 2. Business landscape 7

9 Favorable macroeconomic environment Strong GDP growth GDP growth by sector (%) Expected to reach % growth in 2018, one of the highest in Emerging Markets 5.2% 5.4% 6.0% 6.7% 6.2% 6.8% Vietnam Thailand Malaysia Indonesia Philippines Inflation below government target of 5% for the last 4 years (YoY increase in consumer price) 6.8% 6.0% 1.8% Well controlled below 5% - Government s target 0.6% 4.7% 2.6% GDP Agriculture, Forestry, Aquaculture Construction and Industrial Services Steady FDI inflows supporting FX rate (USD bn) 20,900 22,520 22,740 22, ,250 21, FDI disbursed FDI registered USD VND rate Source: EIU, IMF, General Statistics Office of Vietnam. 8

10 Banking sector overview Overview Large number of banks (98); market share dominated by State Owned Commercial Banks ( SOCBs ) Industry restructuring plan commenced with bank consolidation and credit control enhancement Strong, double digit growth in credit and deposits High growth potential Only 35% of country's population currently has a personal bank account Favorable demographics with growing levels of urbanization, young population & rising income Stability and recovery of the banking sector Market share (2017) 12% 7% 8% 41% 40% 42% 47% 52% 50% 43% Total Assets Lending Deposit Charter Capital 27% 21% 46% 30% 33% Profit after tax State owned commercial banks Joint stock commercial banks Others Growth potential in Vietnam s underpenetrated consumer finance segment as bankable population increases Stable interest rate environment with healthy credit growth since 2012 Malaysia Korea Vietnam China India Thailand Singapore Indonesia Consumer loans/ GDP NPL VAMC loans Credit growth (%) Interbank rate (ON, year end) 0% 10% 20% 30% 40% 50% 60% 70% Consumer loans/ Total loans 9

11 3. Key company highlights 10

12 Key company highlights 1 Strong brand positioning driving robust deposit growth 2 Growing loan portfolio with increasing retail component 3 High asset quality and strong capital base 4 5 Consistently strong profitability and performance Diversified loan portfolio with a focus on high-growth sectors with good credit quality 6 Leading product platform for trade financing and cross-border business needs 7 Leading platform for credit card services and products 8 Extensive branch / ATM network supported by strong investment in technology 11

13 1 Strong brand positioning driving robust deposit growth Customer deposits are the largest source of total funding, accounting for ~70% Growing market share (~10%) on the back of strong nationwide brand recognition and loyalty 2017 deposit balance: ~VND tn, up 20.0% compared with 2016; recorded 19.9% CAGR between Deposit structure: Demand deposits account for ~28.4%, providing low cost funding to the bank ~45% corporates & SMEs and 55% individuals VND-denominated deposits account for ~81% Customer deposit Deposit breakdown by term (VND bn) % 27.3% 27.5% 29.2% 28.0% 28.4% 29.1% 16.0% 22.0% 24.9% 24.8% 28.9% 30.5% 31.2% 59.0% 50.7% 47.6% 46.0% 43.1% 41.1% 39.7% Q Q2018 Term deposits (12M and below) Term deposits (above 12M) Current accounts 12

14 2 Growing loan portfolio with increasing retail component Market share ~9% 2017: Total loans: ~VND tn, increased 17.9% against 2016; recorded 17.6% CAGR between Loan composition Growing loan portfolio with a focused approach to increase loans to retail banking Long and medium term loans account for 44% of total loans Domestic currency loans account for 84% of total loans ~79% of the total loans are collateralized 2017 NPL ratio: 1.14% of total loans Total loans (VND bn) Lending breakdown by clients % 13.6% 16.0% 19.7% 25.3% 13.7% 13.7% 14.5% 7.9% 7.9% * 74.3% 72.7% 69.5% 72.4% 66.8% 32.7% 36.1% 8.0% 8.9% 59.2% 55.0% Q Q2018 Corporates SME Individual Note: Criteria for lending breakdown by clients (corporates vs SMEs) has been amended in 2015 and reflected accordingly (1) ~1.2% of SME loan book in 2016 moved to Corporate category in

15 3 High asset quality and strong capital base FY ended 31 December 2012A 2013A 2014A 2015A 2016A 2017A 3Q2018 Loans to deposits 84.51% 82.56% 76.58% 77.36% 78.04% 76.70% 81.19% Loan loss reserve coverage (Provision/NPL) 91.07% 86.29% 94.43% % % % % NPL ratio 2.40% 2.73% 2.31% 1.84% 1.51% 1.14% 1.18% CAR 14.83% 13.37% 11.61% 11.04% 11.13% 11.63% 10.24% Credit Cost 1.47% 1.37% 1.53% 1.71% 1.51% 1.23% 1.14% Total assets (VND trillion) 1, Q2018 Earning assets breakdown (3Q2018) Investment in securities 16.9% Loans & advances to customers 64.1% Balances with SBV 3.2% Placements with & loans to other banks 15.8% VND 995 tn 14

16 4 Consistently strong profitability and performance FY ended 31 December 2012A 2013A 2014A 2015A 2016A 2017A 3Q2018 Net interest margin 2.99% 2.62% 2.40% 2.57% 2.64% 2.66% 2.94% Non-interest income/operating Income 27.5% 30.5% 32.0% 27.1% 25.5% 25.4% 28.57% Pre-Provision Operating Profit/Equity 25.8% 22.1% 24.4% 29.2% 32.1% 34.9% 38.99% ROAA 1.13% 0.99% 0.88% 0.85% 0.93% 1.00% 1.23% ROAE 12.5% 10.4% 11.0% 12.0% 14.7% 18.1% 21.89% Operating income structure (3Q2018) Cost to income ratios Investment 1.1% FX 5.6% Other 12.6% VND 28,598 bn Services 9.2% Interest 71.4% VCB ACB MBB CTG BIDV 15

17 5 Diversified loan portfolio with a focus on high-growth sectors with good credit quality Lending breakdown By sector By loan group By term 22.5% 26.4% 5.5% 6.2% 5.5% 5.8% 7.0% 6.2% 27.2% 25.5% 36.0% 5.9% 4.2% 4.9% 21.8% 1.4% 0.9% 0.4% 0.2% 0.3% 0.7% 0.2% 0.3% 0.1% 0.9% 1.7% 2.4% 98.0% 95.7% 96.8% 29.2% 31.9% 33.8% 11.3% 11.7% 10.4% 59.5% 56.4% 55.8% 31.5% 30.6% 27.2% Processing, manufacturing Trading & services Electricity, gas, water processing & supplying Transportation, logistics, communication Construction Others Current Sub-standard Loss Special mentioned Doubtful Short-term Medium-term Long-term Note: Lending breakdown by sector as at 31 Dec 2017, audited F.S. 16

18 6 Leading platform for trade financing and cross-border business needs Leading position in Trade Financing (TF) and International Settlement Market share: ~16.3% in TF Solid customer-base include country s top importers & exporters Export-import settlement volume (USD bn) Extensive correspondent network includes ~2,000 banks all over the world Domestic Settlement (VCB Money) The first and leading e-banking platform in Vietnam Clearing center in Vietnam for foreign currencies Export Import Market share in total international settlement 19.8% 18.4% 18.7% 17.6% 14.1% 13.2% 13.6% 15.8% 16.7% 14.3% 16.2% 16.5% FX Transactions and Derivatives Leader in Vietnam s foreign exchange market Overall profit from FX contribute to ~7-8% of total operating income Export Import FX transaction volumes (USD bn)

19 7 Leading platform for credit card services and products Vietcombank is the No.1 bank in Vietnam for bank cards 30% market share by number of credit cards (issuing bank) Credit Card payment volume (USD mn) 4,118 14% market share by number of debit card 3,165 44% market share by credit card payments volume Strategic partners in Vietnam for international card organizations (Visa, Master, Amex, JCB, Diner s Club, China Union Pay) 1,185 1,503 1,760 2,104 Largest ATM network with 2,487 ATMs and 47,030 Points of Sale nationwide Number of cards Number of e-banking users ( 000) ( 000 cards) 1,058 1,279 1,540 10,339 13,729 11, ,036 1, ,717 1,354 3,717 1,920 4,982 2,697 6,480 3,632 8,425 4,635 International debit Domestic debit Credit SMS Banking Online banking (Internet banking + Mobile banking) 18

20 8 Extensive branch / ATM network supported by strong investment in technology Nationwide coverage and presence In 2017, Vietcombank opened 5 branches and 36 transaction offices Vietcombank aims to open approximately 5-10 branches and transaction offices each year supported by a digital platform Represents VCB branch 106 Branches 431 Transaction offices 52 Cities covered Developed a wide range of products and services that are distributed through digital channels Services include: VCB I-B@nking VCB SMS B@nking Mobile B@nking VCB Home B@nking VCB Cyber Bill Payment VCB 23.9 Global Trade 19

21 4. Growth strategy and targets 20

22 Vision 2020 & Strategy To become number 1 bank in Vietnam, ranked among the 100 largest banks in the region and among the 300 biggest financial groups in the world, underpinned by global best practices I. Top 1 Retail and Top 2 Wholesale II. The local most profitable bank with ROE ~ 20% III. Number 1 by customer satisfaction IV. Best local bank in human resource quality V. Best local Bank in Risk management Deposits: 60% retail 40% wholesales Loans: 50% retails (40% individual) 50% wholesales ROE ~ 20% ROA > 1% Most convenient products and services Best customer services Highest Return for Customers Highest labor productivity Highest EES (Employee Engagement Survey) Pioneer in applying standard Basel II by 2018 and advanced Basel II by

23 Key strategic initiatives Focus on growing the retail customer segment supported by VCB s leadership in credit cards, largest ATM network in Vietnam, country wide extensive branch network and strong brand name Increase proportion of retail loans Grow proportion of low cost retail CASA (1) funding Focus on NIM improvements Maintain strong position in wholesale banking #1 in Vietnam for trade financing and international settlement Increase proportion of sustainable non-interest income including: Retail banking fees Wholesale banking fees Insurance Improve operating cost management Optimize insurance business Business Expansion Increase capital to support growth Enhancement of corporate governance Centralize organizational structure Standardize branch operating model Customer service standards Accelerate transformation projects with a focus on performance and organizational optimization Credit TOM (2) Basel II Management information systems KPI targets and 2020 objectives ALM-FTP-MPA (1) CASA: Current Account, Savings Account. (2) TOM: Target Operating Model 22

24 Key financial and operating targets Scale Growth Total assets: USD 60bn Total ownership equity: USD 4.5bn Loan growth: ~ 15-16% Deposit growth: ~ 13-14% Quality Profitability LDR: maintain at 80-85% LLRC: above 100% NPL: ~1.0% Interest income growth: ~16-17% Non-interest income growth: ~19-20% Cost to income ratio: 40% ROAA: > 1% ROAE: ~ 20% 23

25 Capital raising plan by 2020 Long term capital raising plans Target shareholders equity of ~USD 4.5bn by 2020 to comply with Basel II capital adequacy requirements (CAR 9%) as well as have pursue quality investments aimed at improving VCB s operational capacity Internal capital targets (VND tn) Clear vision to achieve target capital structure by improving financial returns and net retained earnings, as well as potential external capital raising exercises such as primary share issuance E 2019E 2020E Reserve funds and other capital Retained earnings Chartered capital and surplus capital 1 2 Retained earnings New primary capital ~ VND 20 trillion ~ VND 20 trillion 24

26 5. 3Q 2018 updates 25

27 3Q Recap of Macro economy and banking sector Key Macro indices GDP growth & key sectors growth (%) Banking sector and Top-5 performance Growth vs 31 Dec 2017 Q % 6.89% 3.65% 8.89% Q % 7.17% 7.25% 2.78% Q % 7.68% 6.67% 0.62% GDP Manu & construction Services Agri, forestry & seafood 3Q Q Q 2018 CPI (yoy, %) FDI Registered (USD, bn) Growth (yoy, %) -4.2% 29.7% -7.7% Disbursed (USD, bn) Growth (yoy, %) 12.4% 13.4% 6.0% Export (USD, bn) Growth (yoy, %) 6.7% 19.8% 15.4% Import (USD, bn) Growth (yoy, %) 1.3% 23.1% 11.8% Deposits Loans Sector, 8.6% ACB, 11.0% CTG, 4.8% BIDV, 12.2% MBB, 3.9% VCB, 8.0% Sector, 7.9% ACB, 11.9% CTG, 4.3% BIDV, 7.2% MBB, 11.2% VCB, 11.6% Source: GSO 26

28 3Q 2018 results Balance sheet Total deposits (year-end, growth vs last year-end) (VND tn) Gross loans (year-end, growth vs last year-end) (VND tn) % +6.9% +14.4% % +10.1% +16.5% % +10.2% +15.5% % +13.9% +16.3% Q16 2Q16 3Q Q17 2Q17 3Q Q Q16 2Q16 3Q Q17 2Q17 3Q Q18 As of 30 Sep 2018, total deposits and total loans increased by 9.2% and 15.5% respectively against 31 Dec 2017 VCB continues to pursue quality lending opportunities, focusing on high growth sectors and retail accounts. Gross loans reached VND 616 tn as of 30 Sep 2018 NPL of 1.18% as of 3Q 2018, vs 1.14% in

29 3Q2018 results Balance sheet Gross loans breakdown By term By customer Long term 36% Short term 55% Individuals 36% Segments with strongest growth: SME: +29.5% ytd Individual loans: +31.1% ytd Mid-term 9% Corporates 55% SMEs 8% Total deposits breakdown By term By customer Current account 29% Corporates 40% Segments with strongest growth: Corporate deposits: +13% ytd Term deposits 71% Individuals 53% Current account deposits: +8% ytd SMEs 7% 28

30 3Q2018 results Income Statement Net interest and non interest income Net profit after tax (VND tn) 2.58% 2.64% 2.66% 2.65% 2.94% (VND tn) 12.0% 14.7% 18.1% 16.6% 21.9% 5,749 6,352 15,453 18,528 7,469 21,938 5,713 16,161 8,169 20, A 2016A 2017A 3Q2017 3Q2018 Net interest income Non interest income Net interest margin Q2017 3Q2018 Net profit after tax RoAE Income breakdown (3Q2018) Increasing retail loan composition since FY 2015 has led to a ~30 bps increase in NIM compared to FY 2017 Net interest income and non-interest income has been steadily increasing over the years with a 26% and 43% y- o-y growth respectively Overall, ROAE for the bank surged to ~22% in 3Q 2018 Net interest income 71% Non-interest income 29% Fees, 9% FX, 6% Securities, 1% Others, 13% Increasing contribution of non-interest income in line with strategic direction focusing on in come from services, treasury, & investment 29

31 3Q2018 results Key ratios Quality 1Q16 2Q16 3Q16 FY16 1Q17 2Q17 3Q17 FY17 1Q18 2Q18 3Q18 Loans to deposits 79.70% 79.76% 78.14% 78.04% 81.99% 80.70% 77.92% 76.70% 79.02% 79.27% 81.19% Loan loss reserve coverage (Provision/NPL) % % % % % % % % % % % NPL ratio 1.73% 1.75% 1.74% 1.51% 1.48% 1.51% 1.15% 1.14% 1.37% 1.15% 1.18% CAR 10.05% 9.74% 9.57% 11.13% 9.81% 9.72% 9.98% 11.63% 10.64% 10.35% 10.24% Credit Cost 1.31% 1.47% 1.44% 1.51% 1.17% 1.22% 1.21% 1.23% 1.07% 1.13% 1.14% Profitability 1Q16 2Q16 3Q16 FY16 1Q17 2Q17 3Q17 FY17 1Q18 2Q18 3Q18 Net interest margin 2.83% 2.82% 2.69% 2.64% 2.77% 2.77% 2.65% 2.66% 2.66% 2.83% 2.94% Non-interest income/operating Income Pre-Provision Operating Profit/Equity 24.10% 25.43% 25.60% 25.53% 27.60% 25.18% 26.12% 25.40% 37.56% 32.25% 28.57% 31.34% 31.18% 31.29% 32.12% 33.73% 33.06% 32.51% 34.90% 43.14% 40.49% 38.99% ROAA 1.10% 1.01% 0.96% 0.93% 1.12% 1.03% 1.01% 1.00% 1.37% 1.28% 1.23% ROAE 15.97% 14.65% 14.60% 14.70% 17.99% 16.90% 16.64% 18.09% 25.85% 23.14% 21.89% Cost-to-income ratio 39.64% 40.70% 40.90% 39.99% 43.22% 43.39% 43.12% 40.35% 40.98% 41.35% 41.67% 30

32 VCB 2018 AGM targets Key targets Growth 2018 AGM targets Total assets (VND bn) 787,935 1,035, % ~ 14% Credits (VND bn) 475, , % ~ 15% Deposits and valuable papers (VND bn) 600, , % ~ 15% PBT (VND bn) 8,578 11, % ~ 13,300 NPL ratio (NPL/Credits) 1.46% 1.11% 1.5% 31

33 Sector leading share price performance 2015 YTD 2018 share price performance (1) (Rebased index) Trading statistics Number of shares: 3,597,768,575 Last closed price (22/10/2018): 57,100 VND VWAP in the most recent 3 months: 61,300 VND 52-week high / low: 74,700 / 39,900 VND All shares are listed on the HOSE EPS (3Q 2018 LTM): 3,360VND P/B (22/10/2018) = 3.3x P/E (22/10/2018) = 17.0x Source: FactSet, Bloomberg as of 20 July (1) Share prices rebased to Vietcombank share price as of 1 January

34 6. Annexes 33

35 Equity investments overview Total investments - VND 6,694 bn (USD 295m) as of 30 Jun 2018 Wholly Owned Subsidiaries: VCBS, VCBL, VFC, VCB Laos, VCBR JVs and Partnerships: VCBF, Vietcombank Tower, VCB Money (TN Monex), VCB-Bonday-Ben Thanh, Vietcombank Cardif Life Insurance, etc Equity Investments: MB, PJICO, etc VCBS, VCBF & VCB Investment Management Dept. core components to upgrade to IB Total investments by type Total investments by sectors (%) (%) Banking 27.3% Equity investments 36.2% JVs & partnership 12.3% Wholly owned 51.4% Insurance 5.0% Others 7.7% Real estate, infrastructure 7.3% Finance & securities 52.6% 34

36 Historical balance sheet (Figures in VND bn) FY ended 31 Dec 2013A 2014A 2015A 2016A 2017A 3Q2018 Cash and cash equivalents 6,060 8,323 8,519 9,692 10,103 9,857 Balances with SBV 24,844 13,267 19,715 17,382 93,616 30,489 Current accounts, deposits and placements with banks 91, , , , , ,374 Investments in securities 64,795 77, , , , ,874 Loans to customers 274, , , , , ,951 Provision for credit losses -6,451-7,084 (8,610) (8,124) (8,113) (11,542) Equity investment 3,042 3,546 3,557 3,628 3,553 3,214 Net fixed assets 4,086 4,465 5,039 5,639 6,162 6,140 Other assets 6,568 7,818 9,400 11,031 13,111 13,755 Total Assets 468, , , ,907 1,035, ,111 Current accounts of banks and payables to SBV 32,622 54,093 41,480 54, ,385 81,235 Borrowings from SBV and term deposits from banks 44,044 43,238 72,135 72,238 66,942 34,176 Customers deposits 332, , , , , ,406 Valuable papers issued 2,014 2,209 2,479 10,286 18,215 21,095 Debt securities issued and other borrowed funds Other liabilities 15,532 11,704 11,966 12,678 17,651 23,646 Total Liabilities 426, , , , , ,585 Minority Interest Chartered capital 23,174 26,650 26,650 35,978 35,978 35,978 Other capital 9,247 5,921 5, Retained earnings and reserves 9,965 10,754 12,417 11,768 15,969 24,905 Total Shareholders Equity 42,386 43,325 45,007 47,958 52,557 61,527 Source: VCB Consolidated Financial Statement. 35

37 Historical balance sheet (cont d) (Figures in USD m) FY ended 31 Dec 2013A 2014A 2015A 2016A 2017A 3Q2018 Cash and cash equivalents Balances with SBV 1, ,175 1,342 Current accounts, deposits and placements with banks 4,361 6,876 6,009 6,853 10,389 6,707 Investments in securities 3,080 3,636 5,369 6,138 6,226 7,169 Loans to customers 13,040 15,220 17,712 20,796 24,233 27,640 Provision for credit losses -307 (333) (393) (367) (362) (508) Equity investment Net fixed assets Other assets Total Assets 22,295 27,159 30,808 35,557 46,167 43,801 Current accounts of banks and payables to SBV 1,551 2,546 1,895 2,444 7,643 3,576 Borrowings from SBV and term deposits from banks 2,094 2,035 3,295 3,260 2,985 1,504 Customers deposits 15,794 19,873 22,895 26,646 31,595 34,042 Valuable papers issued Debt securities issued and other borrowed funds Other liabilities ,041 Total Liabilities 20,273 25,113 28,745 33,386 43,823 41,093 Minority Interest Chartered capital 1,102 1,254 1,217 1,624 1,604 1,584 Other capital Retained earnings and reserves ,096 Total Shareholders Equity 2,015 2,039 2,056 2,164 2,344 2,708 Source: VCB Consolidated Financial Statement. Note: Exchange rate (USD/ VND) was taken from the State Bank of Vietnam at the end of period/year 36

38 Historical income statement (Figures in VND bn) FY ended 31 Dec 2013A 2014A 2015A 2016A 2017A 3Q2018 Interest income 28,590 28,222 31,361 37,713 46,159 40,517 Interest expenses (17,516) (16,214) (15,908) (19,185) (24,221) (20,089) Net interest income 11,074 12,009 15,453 18,528 21,938 20,429 Service fee income 2,454 2,912 3,557 4,326 5,378 5,064 Service charges (1,126) (1,396) (1,685) (2,220) (2,840) (2,436) Net fee income 1,328 1,517 1,873 2,107 2,538 2,628 Foreign exchange gain, net 1,427 1,345 1,573 1,850 2,042 1,609 Net gain on securities Investment income (loss) Other non-interest income 934 1,785 1,905 1,917 2,100 3,034 Non-interest income 4,434 5,277 5,749 6,352 7,469 8,169 Operating income 15,508 17,286 21,202 24,880 29,406 28,598 Operating expenses (6,244) (6,850) (8,306) (9,950) (11,866) (11,917) Operating profit (pre-provision) 9,264 10,436 12,895 14,929 17,540 16,681 Provisions (net of reversals) (3,520) (4,591) (6,068) (6,406) (6,198) (4,998) Profit before taxes 5,744 5,845 6,827 8,523 11,341 11,683 Income tax expense (1,365) (1,258) (1,495) (1,672) (2,231) (2,305) Minority interest (20) (19) (18) (19) (20) (13) Net profit /loss 4,359 4,568 5,314 6,832 9,091 9,365 Source: VCB Consolidated Financial Statement. 37

39 Historical income statement (cont d) (Figures in USD m) FY ended 31 Dec 2013A 2014A 2015A 2016A 2017A 3Q2018 Interest income 1,358 1,328 1,433 1,702 2,058 1,783 Interest expenses (832) (763) (727) (866) (1,080) (884) Net interest income Service fee income Service charges (53) (66) (77) (100) (127) (107) Net fee income Foreign exchange gain, net Net gain on securities Investment income (loss) Other non-interest income Non-interest income Operating income ,123 1,311 1,259 Operating expenses (297) (322) (379) (449) (529) (525) Operating profit (pre-provision) Provisions (net of reversals) (167) (216) (277) (289) (276) (220) Profit before taxes Income tax expense (65) (59) (68) (75) (99) (101) Minority interest (1) (1) (1) (1) (1) (1) Net profit /loss Source: VCB Consolidated Financial Statement. Note: Exchange rate (USD/ VND) was taken from the State Bank of Vietnam at the end of period/year 38

40 Important notice: This presentation does not constitute a prospectus or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, or any offer to underwrite or otherwise acquire any shares in VCB or any other securities, nor shall they or any part of them nor the fact of their distribution or communication form the basis of, or be relied on in connection with, any contract, commitment or investment decision in relation thereto. Some of the statements contained in this presentation that are not historical facts are statements of future expectations with respect to the financial conditions, results of operations and businesses, and related plans and objectives. Forward looking information is based on management's current views and assumptions including, but not limited to, prevailing economic and market conditions. These statements involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in the statements as originally made. Such statements are not, and should not be construed as a representation as to future performance of Vietcombank. It should be noted that the actual performance of Vietcombank may vary significantly from such targets. This presentation is to provide general [public] information and analysis on Vietcombank for those who qualify as a professional securities investor as defined in the Securities Law Such investors should use information, analysis, comment in this presentation as a reference source only. This presentation and any meeting where this presentation is made are for the purpose of providing information and do not intend to advertise VCB or VCB stock or to advice readers to buy or sell VCB stock or any other securities. No representation or warranty, express or implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of this Presentation. Vietcombank takes no responsibility with regard to the accuracy or completeness of any information contained here. Viewpoint and analysis in the report can be changed without notification. The presentation is a property of Vietcombank and under copyright protection. Infringement of copy, change and reprint of the report without permission of Vietcombank is illegal. Vietcombank owns the copyright on this documentation. IR Team: Ms. Ngo Thuy Phuong Mr. Duong Duc Hieu (Charlie) Ms. Nguyen Mai Huong (Jane) Ms. Le Thanh Hang (Lana) - Tel: Ext 1507, phuongnt4.ho@vietcombank.com.vn - Tel: Ext 1841, hieudd.ho@vietcombank.com.vn - Tel: Ext 1517, huongnm.ho@vietcombank.com.vn - Tel: Ext 1530, lthang.ho@vietcombank.com.vn 39