VietnamCommercial Bank for Industry and Trade : VietinBank Investors Update 1Q2024

NEWS UPDATE

FINANCIAL REPORTS

1Q2024

News update | 1Q2024| Page 1

Business performance in 1Q2024 posted positive results

16.4% (ytd)

12% (yoy)

3.8% (yoy)

19.7% (yoy)

2.8% (ytd)

2.2% (ytd)

1.2% (ytd)

0.1% (yoy)

0.22% (ytd)

2.078

1.514

1.428

19,1

6,2

25,2%

8,0

150,8%

VND, Tn

VND, Tn

VND, Tn

VND, Tn

VND, Tn

VND, Tn

1,35%

TOTAL

LOANS

DEPOSITS

TOTAL

PBT

CIR

PROVISION

NPL

COVERAGE

ASSETS

INCOME

EXPENSES

RATIO

Main scale indicators continued to follow an upward trend compared to 2023 year end

TOTAL ASSETS						TOTAL LIABILITIES
	VND, Tn									VND, Tn
	2.078					1.947
	2.2% vs 2023									2.1% vs 2023
LOANS TO CUSTOMERS BY CUSTOMER SEGMENT
(VND, Tn)
1Q2023	487					339			421				70
2Q2023	503					346			422				75
3Q2023	512					358		424			76
2023	557				382				432	81
audited
1Q2024	556					347				192	90
				Retail				SME					Large corp.		FDI
YTD	-0.2%	-9.1%	+13.9%	+11.4%
CUSTOMER DEPOSIT BY BUSINESS TYPE
(VND, Tn)
1Q2023						52.4%	12.9%	23.3%	8.5%
2Q2023						52.0%	12.6%	23.4%	8.5%
3Q2023						52.3%	13.4%	22.6%	8.2%
2023						51.1%	12.6%	25.1%	8.3%
audited
1Q2024						52.9%	12.5%	23.4%	8.2%
						49,7%	14,1%
					Retail				SME				Large corp.			FDI

LOANSDEPOSITS

VND, Tn	VND, Tn
1.514	1.428
2.8% vs 2023	1.2% vs 2023

Outstanding loan balance as at 31st March 2024 recorded a ytd 2.8% uplift, higher than sector-wide growth (1,34% on 29/3/2024). Growth of outstanding credit balance in 1Q2024 focused on Large corp. (up 13.9% ytd) and FDI segments (up 11.4% ytd). However, in 2024, VietinBank maintains its focus on growth of retail and SME segments, sectors with good growth potential such as electricity, water,

pharmaceuticals, medical equipment, agriculture and agricultural supplies, construction materials, supply chains of staple goods…

Customer deposits as at 31/03/2024 grew by 1.2% ytd. Compared to 2023 year-end, the proportion of deposit for retail segment at the end of 1Q2023 showed a continuous upward trend from 52.4% to 52.9%.

Page

01

News update | 1Q2024 | Page 2

Operating income maintained favorable growth

Unit: VND, Tn
3M2023			3M2024
			1.2			1.3
12.4	2.3	14.7	2.3
			1.2			0.8
		NII (excl. guarantee fee)			Net income from FX trading
		NFI (incl. guarantee fee)			Other income

TOI in 1Q2024 scaled up to 19.1 VND, Tn (+12% yoy). In which, notably:

• NII (excl. guarantee fee) experienced a 18.7% yoy ascent driven by reinforced scale coupled with improved profitability from credit portfolio restructuring and risk control.
• Net income from FX trading continued to grow robustly (+14.6% yoy) as VietinBank maintained its focus on FDI, SME and retail segments combined with strong shifts from over-the-counter transactions to online FX trading on eFAST and iPay platforms, which increased profitability and efficiency for VietinBank. VietinBank continued to rank first in terms of both revenue and market share of foreign currency trading in the market.

Continuously reasonable cost control

			29.0%
		27.1%
	26.0%			25,2%
25.3%
3T2023	6T2023	9T2023	2023	3T2024

audited

VietinBank's CIR in 1Q2024 reached 25.2%, marginally slower than the same period in 2023. VietinBank continuously optimized efficiency in management of operating expenses, while prioritizing to business promotion activities, digital transformation and key projects of the bank.

Profits stay positive upward route underpinned by good core revenue sources

Net income before provision expenses in 1Q2024 reached 14.3 VND, Tn (+12.2% yoy). VietinBank proactively spent resources on risk provisions in line with regulations to strengthen its financial buffer for business given that the economy is still facing to many difficulties. Provision expenses in 1Q2024 attained 8 VND, Tn (+19.7% yoy). Accordingly, PBT in 1Q2023 amounted to 6.2 VND, Tn (+3.8% yoy).

Unit: VND, Tn

2.3

2.1

4.8

19.1

8.0

14.7

14.3

6.2

NII (excl. NFI (incl.

Other

TOI

Operating

Net

Provision

PBT

guarantee guarantee

income

expenses

income

expenses

fee)

fee)

before

provision

expenses

YoY

+18,7%

-1,1%

-10,1%

+12%

+11,4%

+12,2%

+19,7%

+3,8%

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02

News update | 1Q2024 | Page 3

Asset quality was strictly controlled

1.28%

1.27%

1.37%

1.13%

1.35%

173.0%	168.9%	172.4%	167.2%	150.8%

1Q2023	2Q2023	3Q2023	2023 audited	1Q2024
NPL out of outstanding loans	NPL	NPL coverage ratio

NPL out of outstanding loans in 1Q2024 stood at 1.35%, up 0.22% compared to 2023 year end in the context of many difficult fluctuations of geopolitical economy, the global economy still facing many headwinds which had a major impact on manufacturing and business activities and customers' ability to repay debt. NPL coverage ratio in 1Q2024 was 150.8%, maintaining a high level.

As the word economy remains complexity which negatively impacts on the recovery speed of the Vietnamese economy, pressure of bad debts continues to weight heavily on banks, VietinBank will

continue to strengthen risk management and control bad debt below 1.8% and improve its NPL

coverage ratio in 2024.

Page

03

News update | 1Q2024 | Page 4

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INFORMATION UPDATED ON

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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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