Attending the conference, on VietinBank's side, 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 90 analysts from 70 organizations, representing investment funds, securities companies (SCs), fund management companies; shareholders of VietinBank; potential investors (NĐT) interested in investment opportunities in CTG shares.
Actively promote increased service revenue, improve income structure
In the first quarter of 2023, the world economy continued to be affected by the negative impacts of high inflation, the Russia-Ukraine geopolitical conflict, tight monetary policy in the US and Europe, and declining exports. In Vietnam, the State Bank of Vietnam continued to operate a proactive and flexible monetary policy, closely coordinating with fiscal policy and other macroeconomic policies to control inflation, support economic growth recovery, promptly adapt to domestic and foreign market developments, and maintain stability in the monetary and foreign exchange markets.
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Ms. Pham Thi Thanh Hoai - Member of the Board of Directors updated VietinBank's positive business results in the first quarter of 2023 |
In that context, VietinBank has actively implemented synchronous business solutions, proactively optimized cost efficiency and well managed asset quality, created conditions for credit growth; maintained preferential programs to reduce lending interest rates, maintained good lending interest rates, competed in the market, helped customers access credit sources as well as banking products and services at low costs, optimally met the financial needs of the economy... and achieved positive business results.
Notably, VietinBank's net profit from service activities (including guarantee fees) reached nearly VND 2.3 trillion, up 52% over the same period in 2022, making it the bank with the highest net profit from service activities in the banking industry in the first quarter of 2023; of which, trade center fees increased by 175% and insurance commission fees increased by 208.8% over the same period in 2022. The proportion of service revenue to total operating income accordingly reached 13.6%, an improvement over the same period in 2022 (10.8%).
This result was achieved thanks to the fact that in recent times, the Bank has continuously researched, improved and promoted its products and services along with improving service quality, meeting diverse and comprehensive financial service needs of customers; actively applying technology to business activities such as diversifying and modernizing transaction channels for customers (Ipay, Efast, counter channels, open banking API); strongly applying new technologies such as robotic process automation (RPA), cloud computing, artificial intelligence, machine learning in many transaction activities... to bring the most modern and best banking products and services to customers.
In addition, other business performance indicators of VietinBank in terms of scale and efficiency all achieved positive results, specifically:
- Total assets reached 1.82 million billion VND, up 0.9% compared to the end of 2022.
- Outstanding credit balance reached VND 1.33 million billion, up 4.6% compared to the end of 2022, higher than the industry's credit growth rate (2.06%) and complying with the State Bank's credit growth limit.
- Mobilized capital reached 1.29 million billion VND, up 0.4% compared to the end of 2022. Customer deposits reached 1.27 million billion VND, up 1.9% compared to the end of 2022. In the general context of the market, although VietinBank's CASA ratio decreased to 18.06% compared to 20% at the end of 2022, it was among the lowest in the banking industry.
- Total operating income in the first quarter of 2023 reached VND 16.3 trillion, up 21.1% over the same period in 2022. Of which, net interest income (excluding guarantee fees) reached VND 12.4 trillion, up 24.8% over the same period in 2022 thanks to improving scale along with improving profitability from restructuring the credit portfolio and good credit risk management.
- Net profit from foreign exchange trading activities increased sharply by 49.6% compared to the same period in 2022 as VietinBank continued to diversify the structure of foreign exchange products, promote new customer development, focusing on FDI, SME and retail segments.
- Net profit from operating activities before credit risk provision expenses in the first quarter of 2023 reached VND 12.7 trillion, up 24% over the same period in 2022. VietinBank continues to proactively allocate financial resources to set aside risk provisions in accordance with regulations to increase the reserve buffer for the bank's operations in the coming time. Provision expenses in the first quarter of 2023 increased by 51.6% over the same period in 2022; the bad debt coverage ratio was 173%. Pre-tax profit in the first quarter of 2023 reached VND 5.98 trillion, up 2.7% over the same period in 2022.
- VietinBank's efficiency indicators in the first quarter of 2023 continued to improve: NIM reached 2.94%, an improvement compared to 2.87% in 2022; VietinBank's ROA and ROE ratios reached 1.34% and 17.72%, slightly increasing compared to 1.25% and 16.68% in 2022.
Focus resources on implementing business and platform themes, operating effectively and safely in 2023.
At the conference, VietinBank leaders discussed, exchanged, and answered questions from investors and analysts interested in the prospects and development orientation for the last months of 2023: forecasting the development of interest rates and exchange rates; measures to improve CASA and mobilized capital, improve NIM; promote credit in the retail and SME segments to increase efficiency and enhance competitiveness; measures to promote non-interest income activities; digital transformation progress; assessment of the bad debt situation, risk provisioning; assessment of the impact of Circulars 02 and 03 on the banking industry, market, etc.
In the last months of 2023, VietinBank will continue to focus resources on implementing 04 business themes including: (i) CASA growth; (ii) Non-interest income growth; (iii) Ecosystem exploitation and cross-selling; and (iv) Debt collection and risk handling.
At the same time, VietinBank continues to deploy comprehensive, flexible and synchronous solutions, focusing on 05 fundamental topics including: (i) Controlling debt quality and credit risk management; (ii) Improving service quality; (iii) Increasing labor productivity; (iv) Effectively managing capital balance; and (v) Building and implementing digital transformation strategy.
Accordingly, VietinBank will maximize all resources, focus on effective, safe and sustainable growth in 2023, and strive to complete the 2023 business plan (approved in principle by the 2023 Annual General Meeting of Shareholders, and is continuing to seek official approval from competent State agencies).
VietinBank hopes that through this conference, reputable securities companies, fund management companies, and investment funds in the market will continue to have updated and in-depth information to serve the analysis and evaluation of investment opportunities in CTG shares. The success of the conference continues to affirm the image of VietinBank as open, transparent in information, effective in operations, and connected in relations with the investor community.
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