NEWS UPDATE
FINANCIAL REPORTS
1Q2023
Business performance in 1Q2023 achieved positive results
EFFICIENCY SCALE QUALITY
ASSETS
1,824 | |||
VND, Tn | |||
1,333 | |||
VND, Tn | |||
TOTAL ASSETS | |||
1,272 | |||
LOANS | |||
VND, Tn | |||
DEPOSITS | 17.0 |
VND, Tn
TOTAL INCOME
PBT | 6.0 | |||
VND, Tn | ||||
CIR | 25.3% | |||
PROVISION | ||||
EXPENSES | ||||
NPL | 6.7 | |||
VND, Tn | ||||
COVERAGE | ||||
RATIO | 1.28% | |||
News update | 1Q2023 | Page 2
0.9% (ytd)
4.6% (ytd)
1.9% (ytd)
21.0% (yoy) | INCOME GROWTH AMONG |
POSITIVE GROUP | |
2.7% (yoy) |
1.9% (yoy)
51.9% (yoy)
0.04% (ytd)
173% | 15,4% (ytd) |
VietinBank's major scale indicators in 1Q2023 continued to grow positively vs. 2022
TOTAL ASSETS (VND ,Tn)
2022
TOTAL LIABILITIES (VND, Tn)
1,8092022
1,701
1Q2023
C | 1,824 | 1Q2023 |
Growth vs. 2022 0.9%
C
Growth vs. 2022 0.6%
1,711
Outstanding loans balance increased by 4.6% ytd. Loan balance growth in 1Q2023 focused on large corporate customers (up 16.7% ytd) and FDI (up 5.7% ytd). However, in 2023, VietinBank still focuses on retail and SME growth, prioritizing growth resources for individual and SME customers, industries with good growth potential such as electricity,
telecommunications, electrical equipment...
CUSTOMER DEPOSITS (VND, Tn)
LOANS TO CUSTOMERS (VND, Tn)
2022 | 1,275 | |
1,333 | |||
1Q2023 | |||
1Q2023 | 487 | 339 | |
4Q2022 | 473 | 335 | |
3Q2022 | 458 | 330 | |
2Q2022 | 446 | 331 | |
1Q2022 | 414 | 321 |
Growth vs. 2022 | 4.6% | |||||
YTD | ||||||
421 | 70 | +3.1% | Retail | |||
399 | 60 | +1.3% | ||||
SME | ||||||
388 | 62 | |||||
395 | 64 | +5.7% | Large | |||
corp. | ||||||
+16.7% | ||||||
416 | 67 | FDI | ||||
Customer deposits in 1Q2023 |
2022 | 1,249 | Growth vs. 2022 | 1.9% | |||||||||||
1Q2023 | 1,272 | |||||||||||||
1Q2023 | 52.4% | 12.9% | 23.3% | 8.5% | ||||||||||
4Q2022 | 49.7% | 14.1% | 24.8% | 8.6% | ||||||||||
3Q2022 | 49.4% | 12.8% | 25.6% | 9.1% | ||||||||||
2Q2022 | 49.8% | 12.6% | 24.7% | 9.5% | ||||||||||
1Q2022 | 49.5% | 12.1% | 24.8% | 9.6% | ||||||||||
Retail | SME | Large corp. | FDI | |||||||||||
increase was up 1.9% ytd, | ||||
mobilized | capital | growth was | ||
lower | than | credit | growth | |
because the macro market did | ||||
not show | favorable | signals, | ||
leading customers to prioritize | ||||
using their own capital for | ||||
production | and | business | ||
activities. | ||||
The | proportion | of | Retail | |
deposits grew | strongly from | |||
49.7% in 2022 to 52.4% in | ||||
1Q2023. |
Operating income continued to grow well
Unit: VND, Tn | ||||||
1Q2022 | 9,9 | 1,9 | 1,5 | 0,8 | ||
1Q2023 | 12,4 | 2,3 | 1,2 | 1,2 | ||
NII (excl. guarantee fee) | Net income from FX trading | |||||
NFI (incl. guarantee fee) | Other income | |||||
News update | 1Q2023 | Page 3
TOI in 1Q2023 reached 17 VND, Tn (+21% yoy). Notably: (i) NII was up 24.8% yoy thanks to the scale improvement coupled with improved profitability from credit portfolio restructuring together with risk control; (ii) net income from FX trading continued to grow strongly +49.6% yoy as VietinBank continued to diversify the structure of FX products, promoted the development of new customers, focusing on FDI, SME and Retail.
NFI (including guarantee fee) in 1Q2023 reached nearly 2.3 VND, Tn
(+52% yoy) thanks to the implementation of sales promotion, expanding customer base along with improving service quality, meeting
diversified and comprehensive financial service needs of customers. In which, fee from guarantee increased by 55.7% yoy; fees from other activities increased by 30.9% yoy.
28.7% | 31.3% | 33.5% | 36.2% | 42.6% | ||||||
28.0% | 29.0% | 27.9% | 25.9% | |||||||
23.2% | ||||||||||
33.8% | 31.5% | 31.1% | 30.9% | 25.7% | ||||||
9.6% | 8.2% | 7.5% | 7.0% | 8.6% | ||||||
3M2022 | 6M2022 | 9M2022 | 2022 | 3M2023 | ||||||
Guarantee | Payment | Insurance | Others (*) | |||||||
(*): Others include: Commission fee collected from cooperation in selling life insurance with Manulife, fee collection from entrustment and agency operations, fee collection from import - export LC…
Reasonable cost control
29.9% | ||||
27.2% | 27.0% | 27.3% | ||
25.3% | ||||
3M2022 | 6M2022 | 9M2022 | 2022 | 3M2023 |
In the current period of economic fluctuations and difficulties, VietinBank practiced thrift, prioritized resources to digital transformation activities, and directly supported business operations. Besides, in 1Q2023, VietinBank's TOI continued to improve, reaching a growth rate higher than the growth rate of
operating expenses. Accordingly, VietinBank's CIR in 1Q2023 reached 25.3%, lower than CIR of 27.2% in 1Q2022.
Profits grew well thanks to good core revenue sources
Net income | before provision | ||||||||||||||
expenses in 1Q2023 reached | Unit: VND, Tn | ||||||||||||||
12.7 VND, Tn (+24% yoy). | |||||||||||||||
VietinBank | actively | spent | 2.4 | 4.3 | |||||||||||
resources to set up risk | 2.3 | ||||||||||||||
provisions in accordance with | 6.7 | ||||||||||||||
regulations | in | order | to | 17.0 | |||||||||||
12.7 | |||||||||||||||
increase the financial reserve | 12.4 | ||||||||||||||
buffer | for | the | bank's | 6.0 | |||||||||||
operations | in | the | coming | ||||||||||||
time, credit risk provision cost | NII (excl. | NFI (incl. | Other | TOI | Operating | Net income | Risk | PBT | |||||||
in 1Q2023 reached 6.7 VND, | |||||||||||||||
guarantee | guarantee | income | expense | before | provisions | ||||||||||
Tn | (+51.9% | yoy). | |||||||||||||
fee) | fee) | provision | |||||||||||||
Accordingly, PBT in 1Q2023 | |||||||||||||||
reached | 6 VND, | Tn, | |||||||||||||
(+2.7% yoy). | YoY | +24.8% | +52% | -11.1% | +21% | +12.9% | +24% | +51.9% | +2.7% |
Debt quality was controlled according to the approved plan
News update | 1Q2023 | Page 4
NPL RATIO (%) | NPL COVERAGE RATIO (%) | ||||||||||||
1Q2023 | 173.0% | ||||||||||||
1.28% | |||||||||||||
4Q2022 | 1.24% | 188.4% | |||||||||||
3Q2022 | 1.42% | 222.4% | |||||||||||
2Q2022 | 1.35% | 189.6% | |||||||||||
1Q2022 | 1.25% | 197.2% | |||||||||||
In 1Q2023, Vietnam's economy faced with many difficulties from the general developments of the world economy (inflationary pressure, quiet real estate market, debt pressure due to bond payment, decelerating exports...). This had a significant impact on the production and business and the debt repayment ability of customers, thereby affecting the debt quality at VietinBank. NPL out of outstanding loans in 1Q2023 stood at 1.28%, a both yoy and ytd increase. Credit risk provision cost in 1Q2023 was 6.7 VND, Tn (+51.9% yoy). NPL coverage ratio in 1Q2023 was 173%.
In the remaining months of 2023, VietinBank will focus on improving risk management capacity and controlling bad debt below 1.8%. At the same time, VietinBank aims to increase NPL coverage ratio, improves financial capacity, and ability to withstand possible risks from the economy.
News update| 1Q2023 | Page 5
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VietinBank - Vietnam Joint Stock Commercial Bank for Industry and Trade published this content on 28 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2023 12:42:05 UTC.