Vietnam Joint Stock Commercial Bank for Industry and Trade : News Update Financial Reports 2Q2022 & 6M2022

2Q2022 and 6M2022

HIGHLIGHTS

#POSITIVE BUSINESS RESULTS

News update | 2Q2022 and 6M2022 | Page 2

VietinBank's business performance in 6M2022 continued to achieve positive results.

1			4
	Industry Top			Positive
Total assets	Total income
10.4%	11.1%
1,691	VND, Tn	30	VND, Tn

7

CIR

27.0%28.5%

(30/06/2022)	(ytd)	(6M2022)	(yoy)

(6M2022)

(6M2021)

2				5
	Loans to customers		9.5%		Profit before tax		7.0%
	1,238	VND, Tn		11.6	VND, Tn
		(ytd)		(yoy)
	(30/06/2022)			(6M2022)
					6
	3
	Customer deposits		3.8%		Provision expenses		21.9%
	1,206	VND, Tn		10.3	VND, Tn
		(ytd)		(yoy)
	(30/06/2022)			(6M2022)

8
NPL	1.26%
1.35%

	(30/06/2022)	(31/12/2021)
9
NPL coverage ratio			Positive
		180.4%
	189.7%
		(31/12/2021)
	(30/06/2022)

SCALE INDICATORS

# GOOD GROWTH

Main scale indicators in 2Q2022 of VietinBank achieved positive results both ytd and yoy.

1	TOTAL ASSETS (VND, Tn)			2		TOTAL LIABILITIES (VND, Tn)
	1,664	1,691
					1,565	1,588
1,473	1,532						1,438
1,448			1,380
			1,352

2Q21 3Q21 4Q21

3

Customer deposits slightly increased (+3.8% ytd) in line with VietinBank's capital balance orientation and met operating adequacy ratios.

Deposit structure shifted towards increasing proportion of Retail and SME.

CASA deposits improved in both balance and proportion ytd (CASA balance reached VND 240 trillion, up 2.7% ytd and accounted for 19.9%).

4

Loan balance increased positively by 9.5% ytd, meeting production and business needs recovering after the pandemic, in line with the general situation of the banking industry and credit room granted by the SBV.

Loan portfolio structure continued to shift positively towards improving the proportion of outstanding loans in the high-profit segments namely Retail and SME, especially the proportion of loans in the Retail segment had a strong improvement (up from 32.2% in 4Q2021 to 36% in 2Q2022).

YTD

1Q22	2Q22			2Q21				3Q21	4Q21	1Q22	2Q22
			CUSTOMER DEPOSITS (VND, Tn)
49.8%			12.6%	24.7%			9.5%	2Q22		1,206
49.5%			12.1%	24.8%			9.6%	1Q22	1,213		+15.9%
48.4%			11.2%	26.6%			9.9%	4Q21	1,162
50.0%			11.3%	25.7%			9.4%	3Q21	1,073
50.3%			10.7%	26.3%			9.5%	2Q21	1,040
			Retail				SME			Large corp.			FDI
			LOANS TO CUSTOMERS (VND, Tn)
446	331			395			64
				2Q22		1,238
414	321				416			67	1Q22	1,230	+15%
364	298	396	59				4Q21	1,131
334	285	393	62					3Q21	1,085
332	278	407	58					2Q21	1,077
	Retail		SME			Large corp.					FDI
+22.4%	+11.1%	-0.3%			+8.7%

OPERATING INCOME

# CONTINUOUSLY POSITIVE GROWTH

News update | 2Q2022 and 6M2022 | Page 3

6T2021

9T2021

2021

3T2022

6T2022

TOI in 6M2022 reached VND

30 trillion (+11.1% yoy).

Notably, net income from FX

continued to grow

strongly

21.0

21.7

+86.5% yoy

as VietinBank

continued

to

diversify

the

structure

of

FX

products,

effectively

exploited

the

3.2

3.3

0.9

1.6

2.0

3.5

existing profound

customer

database

and

promoted

the

development

of

new

NII (excl. guarantee fee)

NFI (incl. guarantee fee) Net income from FX

Other income

customers in the market.

NFI (including guarantee fee) in 6M2022 reached VND

3.3 trillion (+3.9% yoy). In which, service fees from trade finance and insurance commissions grew well yoy thanks to the implementation of sales promotion coupled with improving service quality, meeting diversified and comprehensive financial needs of customers.

Net profit from payment activities decreased as VietinBank continued to maintain policies of exemption and reduction of many types of service fees to support customers. This policy may affect fee collection from payment activities of VietinBank in short-term, but it is an important solution to promote CASA growth, expand customer base and bring long- term benefits to VietinBank in the coming time.

				STRUCTURE OF FEE INCOME
28.1%	29.1%	28.9%	28.7%	31.3%
23.0%	23.9%	24.9%	28.0%	29.0%
38.6%	37.8%	38.1%	33.8%	31.5%
	10.3%	9.3%		8.2%	9.6%	8.2%
	6M2021	9M2021	2021		3M2022		6M2022
			Guarantee			Payment		Insurance		Others (*)

(*): Commission fees collected from bancasurance business with Manulife was recognized in Other revenue in Service fee revenue..

COST MANAGEMENT	CONTROL			ACCUMULATIVE CIR
			#REASONABLE
							32.3%
	CIR ratio in 2Q2022 reached 27.0%, down 1.5% yoy.
	In 2022, VietinBank continues to control and improve
	the efficiency of operating costs,	prioritizing costs		28.5%	28.9%
	for direct sales and digital transformation, improving
	service quality and human resource to build a				27.1%	27.0%
	foundation for the bank's sustainable development.

PROFIT

6M2021

9M2021

2021

3M2022

6M2022

# GOOD GROWTH

PROFIT STRUCTURE IN 6M2022 (VND, Tn)

Net income before provision expenses reached VND 21.9 trillion (+13.5% yoy). VietinBank also actively spent resources to set up risk provisions in accordance with regulations in order to increase the financial reserve buffer for the bank's operations in the coming time, credit risk provision cost in 6M2022 was VND 10.3 trillion (+21.9% yoy). Accordingly, PBT in 6M2022 reached VND 11.6 trillion, (+7.0% yoy).

YoY

+3.2%

+3.9%

+77.6%

+11.1%

+5.1%

+13.5%

+21.9%

+7.0%

DEBT QUALITY

#STRICTLY CONTROLLED	News update | 2Q2022 and 6M2022 | Page 4

1

NPL out of outstanding loans 2Q2022 was at 1.35%, a ytd increase.

In 6M2022, Vietnam's economy faced many difficulties from the general developments of the world economy (Russia- Ukraine war, fluctuations in petrol prices and many essential commodities causing inflation to highly increase, new variants of COVID-19…); leaving a significant impact on businesses' production and business, causing many businesses to need longer time to fully restore their operations and banks to consider the overall debt structure for customers. Accordingly, the debt quality at VietinBank was also affected to a certain extent, mainly in the group of basic construction, processing and manufacturing industries,…

In the context that the world market is still complicated, potentially affecting the speed of economic recovery, the increasing pressure of bad debt is considered as one of the big challenges of the banking industry. Recognizing this development, VietinBank always proactively analyzes and evaluates the market, reviews the portfolio, identifies risks, deploys solutions to strengthen supervision, management, and appropriate debt collection and handling. In the last 6 months of 2022, VietinBank will continue to make efforts to implement comprehensive solutions to control arising bad debts, strengthen debt collection and settlement to ensure that the NPL ratio is controlled below 1.8% according to the plan approved by the General Meeting of Shareholders.

2

Provision expenses in 6M2022 was VND 10.3 trillion, up 21.9% yoy.

NPL coverage ratio in 6M2022 was 189.7% (up 9.4% compared to that of year end 2021).

VietinBank always proactively identifies risks and classifies debts in accordance with the risk level of customers, making adequate risk provisions in accordance with regulations of the State Bank. VietinBank has fully set aside 100% of the provision that must be made in accordance with Circular 03, and at the same time oriented to increase the NPL coverage ratio, improve financial capacity to increase resilience against possible risks from economy.

NPL RATIO AND NPL COVERAGE RATIO

3.5%					197.3%	189.7%	205.00%
			180.4%
3.0%	129.0%							155.00%
2.5%	118.6%
2.0%		1.67%					105.00%
1.5%	1.34%			1.26%	1.25%	1.35%	55.00%
1.0%
0.5%								5.00%
0.0%								-45.00%
2Q21		3Q21	4Q21		1Q22	2Q22
			NPL			NPL coverage ratio

News update | 2Q2022 and 6M2022 | Page 5

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Disclaimer:

This material was prepared using financial statements and other reliable sources with the aims to provide information only. It is recommended to use this material as a source of reference only. The information might be updated from time to time and it is not our responsibility to notify about those changes (if any).

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Office of the Board of Directors

Vietnam Joint Stock Commercial Bank for Industry and Trade

108 Tran Hung Dao, Hoan Kiem, Hanoi, Vietnam

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