VietinBank: Maintaining growth momentum, supporting economic recovery

ANTD.VN - On the afternoon of August 11, 2023, Vietnam Joint Stock Commercial Bank for Industry and Trade ( VietinBank ) held an online conference to update business results for the second quarter, the first 6 months of 2023 and development orientation for the last 6 months of 2023. Attending the conference, on behalf of VietinBank, there were Ms. Pham Thi Thanh Hoai - Member of the Board of Directors and representatives of leaders of key departments, divisions and units at VietinBank Headquarters. On the guest side, there were nearly 65 analysts from more than 50 organizations, representing investment funds, securities companies (SCs), fund management companies; shareholders of VietinBank; potential investors interested in investment opportunities in CTG shares.

Safe - effective - sustainable business, accompanying and supporting businesses to recover

In the first 6 months of 2023, the world economy continued to face many difficulties and unpredictable developments. Central banks continuously raised interest rates, helping to cool down inflation, although it remained high. However, the high interest rates also made the operations of many banks difficult, raising concerns about the risk of a global economic recession. In that context, the Vietnamese economy with its high openness also faced many challenges as the global economy slowed down. Under the direction of the Government, since the beginning of 2023, the State Bank of Vietnam (SBV) has focused on synchronously and drastically implementing solutions to manage monetary policy and banking operations, contributing to controlling inflation, stabilizing the macro economy and supporting and prioritizing growth promotion for the economy.

VietinBank - as one of the leading prestigious financial institutions - has synchronously deployed proactive and unified management solutions from the Head Office to business units. VietinBank is a pioneer in reducing deposit interest rates, maintaining lending interest rates in the most competitive group in the market; playing a key role in providing capital for the economy, directing credit capital to production and business sectors, priority sectors and growth drivers of the economy (consumption, investment and export), ensuring safe and effective credit activities. The Bank also effectively implemented the interest rate support program according to Decree No. 31/2022/ND-CP of the Government and Circular 03/2021/TT-NHNN and the State Bank. The credit balance with interest support is up to more than 12,000 billion VND with a support amount of more than 130 billion VND, the bank has the highest interest support balance in the whole system.

Ms. Pham Thi Thanh Hoai - Member of VietinBank Board of Directors (white shirt) chaired the conference

Regarding the implementation of Circular 01/2020/TT-NHNN (and amended Circulars), Circular 02/2023/TT-NHNN of the State Bank of Vietnam on debt restructuring while maintaining the debt group, VietinBank implements solutions to support customers and continues to closely follow customers' needs to restructure debt for eligible cases.

In addition, VietinBank continues to promote its in-depth business strategy, shift its revenue structure, enhance the development of non-credit activities, and strongly apply modern technology to promote effective and sustainable growth and enhance customer experience. In the first 6 months of 2023, VietinBank achieved positive business results with a number of indicators on scale and efficiency as follows:

- Total assets reached VND 1.86 million billion, up 2.9% compared to the end of 2022. Outstanding loans and customer deposits reached VND 1.36 million billion and VND 1.31 million billion, up 6.6% and 4.9% respectively compared to the end of 2022. VietinBank continues to maintain a healthy asset portfolio with high liquidity and capital safety, fully meeting the requirements of the State Bank. Notably, VietinBank's CASA ratio in the second quarter of 2023 improved from 18.06% in the first quarter of 2023 to 18.74%.

- Total operating income in the first 6 months of 2023 reached VND 34.8 trillion, up 15.9% over the same period in 2022. Accumulated net interest income (excluding guarantee fees) reached VND 24.5 trillion, up 14.4% over the same period in 2022. Net revenue from service activities (including guarantee fees) and revenue from foreign exchange trading activities both recorded strong growth, reaching VND 4.4 trillion and VND 2.3 trillion, respectively (up 34.3% and 47.1% over the same period in 2022). In terms of revenue structure, the proportion of non-interest revenue continued to increase well compared to the end of the year and the same period in 2022, reaching 28.8%.

- Accordingly, VietinBank's pre-tax profit reached VND 12.5 trillion, up 8% over the same period in 2022. All efficiency indicators recorded the same level or improved compared to the end of 2022: NIM reached 2.9%, ROA and ROE reached 1.38% and 18% respectively.

- VietinBank also strictly controls safety indicators and bad debt ratios, ensuring compliance with regulations. As of June 30, 2023, the bad debt ratio was maintained at a low level of 1.27% while the bad debt coverage ratio was 169%. Notably, VietinBank continued to optimize operational efficiency and control costs well, so the CIR ratio in the first 6 months of 2023 reached 26%, lower than the same period in 2022.

VietinBank representative answers investors' questions at the conference

Focus on implementing digital transformation

Identifying digital transformation as a strategic key activity, in recent times, VietinBank has focused on developing modern technology platforms such as cloud computing, automation (robotics process automation - RPA), artificial intelligence (AI), machine learning... to bring new, convenient and useful experiences to customers. In addition, identifying 2023 as a pivotal year for digital transformation, VietinBank has selected the world's leading consulting firm to accompany VietinBank in building a digital transformation strategy for the period 2023-2025, with a vision to 2030. The Digital Transformation project is a key project of VietinBank, not only changing technology, products and services but also organizational models, culture, ideology, thinking, and new ways of working to bring high efficiency to VietinBank.

In the first 6 months of 2023, VietinBank's digital banking platforms for individual and corporate customers all recorded positive results: the VietinBank iPay Mobile application for individual customers continued to attract nearly 7 million users with nearly 85 million transactions made per month, an increase of 66% compared to 2022, the proportion of transactions via the iPay channel increased to 87% (from 85.8% in 2022). For corporate customers, the eFAST application is considered a digital financial assistant with more than 130 features that have attracted nearly 85,000 businesses to use regularly; the number of transactions in the first 6 months of 2023 reached ~16.6 million transactions, an increase of 5.7% compared to the same period in 2022, the proportion of transactions via the eFAST channel increased to 82% (from 80% in 2022).

Development orientation in the future

In the coming time, VietinBank will continue to adhere to the orientation of safe, effective and sustainable growth. The bank will continue to seize market opportunities, improve business efficiency, grow appropriately, ensure efficiency, proactively control risks and well implement the 2023 business plan approved by the General Meeting of Shareholders. Accordingly, VietinBank focuses on comprehensively consolidating the entire bank's foundation with 5 main topics: (i) Controlling debt quality and credit risk management; (ii) Improving service quality; (iii) Increasing labor productivity; (iv ) Effectively managing capital balance; (v) Building and implementing digital transformation strategy. In addition to developing business with the motto "Customer is the center", the bank continues to promote its commitment to social responsibility, pursuing sustainable development values.

With the inherent strength of people, brand, network, products, services, technology and a methodical business strategy, VietinBank is confident on the journey to realize the goal of becoming the leading multi-functional, modern and effective bank in Vietnam, reaching the regional and world level.

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