Report of BOD AND BOM

REPORT ON FINANCIAL

TOTAL ASSETS (VND BILLION)

13.8%

growth rate in 2019

REVENUE (VND BILLION)

19.6%

growth rate in 2019

PROFIT BEFORE TAX (VND BILLION)

26.6%

growth rate in 2019

SHAREHOLDER STRUCTURE

CHANGES IN SHAREHOLDERS’ EQUITY

Number of shareholders

24,331

  • State Bank of Vietnam
  • Foreign strategic shareholder Mizuho Bank, Ltd.
  • Other shareholders

Subsidiaries'

Financial Performance

Profit before tax (VND billion)

VCBL

97.39

attaining 80.5% of the plan

VCBS

180.81

attaining 78.6% of the plan

VCB Laos

32.22

fulfilling 81% of the plan.

VCBM

4.55

exceeding 57% of the plan

VFC

9.08

exceeding 24% of the plan

VCBR

2.42

exceeding the assigned plan

VCBT

60.61

exceeding 13% of the plan

VCBL

97.39

attaining 80.5% of the plan

Joint-Ventures' and Associates'

Financial Performance

VBB

VCBF

VCLI

VCBB

ASSESSMENT ON BUSINESS PERFORMANCE IN 2019

In 2019, Vietcombank strove to basically complete the Restructuring Project by 2020, which was approved by the SBV Governor and successfully accomplished key business targets set by the General Meeting of Shareholders.

TOTAL ASSETS (VND BILLION)

1,222,719

Up 13.8% against 2018

EXPANSION OF TOTAL ASSETS, STRONG GROWTH OF SHAREHOLDER’S EQUITY

  • Total assets reached VND 1,222,719 billion, up 13.8% from the level in 2018.
  • Shareholder’s equity reached VND 80,883 billion, up 30.1% from the previous year, in which undistributed earnings were VND 26,055 billion (VND 16,139 billion in 2018).

Shareholder’s equity

80,883 (VND billion)

Up 30.1% against 2018

OVER VND 01 QUADRILLION OF TOTAL DEPOSITS, LOW-COST FUNDING RATIO CONSTANTLY IMPROVED

  • Total deposits reached VND 1,039,086 billion, up 14.1% over 2018. In particular, customer deposits (including valuable paper issuance) reached VND 949,835 billion, increasing by 15.4% compared to 2018
  • Demand deposit ratio accounted for 30.1% of Deposit inflows from the economy (2018: 29.5%).

Total deposit

1,039,086 (VND billion)

Up 14.1% against 2018

SIGNIFICANT CREDIT GROWTH, STRONGLY DIRECTED INTO RETAIL CREDIT

  • Outstanding loans reached VND 741,387 billion, increasing by 15.9% compared to 2018, and fulfilling 100% of the plan.
  • Retail credit accounted for 51.8% of the total outstanding loans, much greater than the wholesale credit.

Outstanding loans

741,387 (VND billion)

Up 15.9% against 2018

CREDIT QUALITY TIGHTLY CONTROLLED; RECOVERY OF NON- PERFORMING AND WRITTEN-OFF LOANS ACHIEVED GREATLY

  • Loans classified under Group 2 reached VND 2,561 billion; Group 2 loans ratio was at 0.35%, decreasing from 0.59% at the end of 2018.
  • Non-performing loans reached VND 5,804 billion with the NPL ratio of 0.78%, a drop from 0.97% at the end of 2018.
  • Loan loss provision of outstanding loans to the economy amounted to VND 10,417 billion. Loan loss provision coverage ratio was at a high level (182.0%).
  • Recovery of written-off loans reached VND 3,179 billion, fulfilling the assigned plan.

Recovery of written-off loans

3,179 (VND billion)

Fulfilling the assigned plan

CONTINUOUS POSITIVE GROWTH OF SERVICE BUSINESS

  • The activities of international payment, trade finance, FX transaction, electronic banking services, card services, and overseas remittance services achieved strong growth compared to the same period of the previous year, greatly contributing to the Bank’s revenue.
  • The market share of international payment and trade finance increased compared to 2018 (from 16.23% to 16.52%).
  • International payment and trade finance turnover reached USD 85.4 billion, up 9.03% compared to 2018.

International payment and trade finance turnover

85.4 (USD billion)

Up 9.03% compared to 2018

OUTSTANDING GROWTH IN PROFIT, POSITIVE MOVEMENTS OF INCOME STRUCTURE, HIGH PROFITABILITY

  • Separated profit before tax reached VND 22,717 billion, increasing by 26.1% compared to 2018. Consolidated profit before tax reached VND 23,122 billion, increasing by 26.6% compared to 2018.
  • Non-interest income accounted for 39.2% of the business income, of which:
    • Net income from investment activities accounted for 16.54% of total operating income.
    • Net income from services and others accounted for 22.67% and increased by 34% compared to the same period of the previous year (Net income from services included net income from foreign exchange and others). Noticeably, net income from foreign exchange increased by 49.2% over the last year and contributed 42.3% to the non-interest income.
  • ROAA, ROAE were 1.61% and 25.90% respectively, significantly higher than those figures in 2018 as well as those of the market average.

PROFIT BEFORE TAX (VND BILLION)

23,122

Up 26.6% compared to 2018

ROAA (%)

1.61

Sharp increase compared to 2018

ROAE (%)

25.90

Sharp increase compared to 2018

NEARLY VND 9,000 BILLION CONTRIBUTED TO STATE BUDGET, INCLUDING VND 6,751 BILLION FOR TAX PAYING, INCREASED BY 33%

CONTRIBUTION TO STATE BUDGET(VND billion)

Nearly 9,000

BANK WITH LARGEST MARKET CAPITALIZATION AMONG LISTED BANKS

MARKET CAPITALIZATION (USD billion)

Over 14.5

and continued to be the leader in the banking sector

  • Vietcombank continued to be the Bank with largest market capitalization of over USD 14.5 billion and continued to be the leader in the banking sector
  • Capital Adequacy Ratio (CAR) (under Circular No. 41) reached 9.6%, up 0.8% compared to 2018.

MANAGEMENT RESULT IN 2019

Vietcombank has been implementing synchronously various management solutions which were flexibly adapted to the business environment.

  • Proactively implementing policies of government and SBV, accompanying enterprises in common goal of national economic development
  • Drastically implementing Vietcombank’s development roadmap to 2020, and related action plans and sub-projects
  • Funding operation was implemented to match market conditions, ensuring sufficient finance for credit growth
  • Restructuring wholesale portfolio, deploying numerous solutions to increase retail credit and credit growth through transaction offices
  • Strengthening control of credit quality and promoting recovery of non-performing/ written-off loans
  • Rolling out project to increase revenue from services
  • Reallocating investment portfolio towards better return on capital and executing effective divestment
  • Optimizing organization model and expanding branch network in accordance with business strategy
  • Simultaneously and effectively implementing projects to enhance management and operation capacity
  • Improving internal processes and regulations to enhance operational efficiency and risk management
  • Strengthening inspection, internal control and compliance
  • Charter capital increase completed
  • Social and community activities

BUSINESS ORIENTATION IN 2020

With the motto “Transformation, Efficiency, Sustainability” in action and the viewpoint “Responsibility - Action - Creativity” in management, the focus in 2020 is innovating the growth model in depth, operational restructuring, sustainable growth, high efficiency, and labor productivity improvement. In 2020, Vietcombank will pursue Four strategic breakthroughs, Three central objectives in operational restructuring, etc.

FOUR STRATEGIC BREAKTHROUGHS

THREE CENTRAL OBJECTIVES IN OPERATIONAL RESTRUCTURING

Performing capital restructuring to gain efficiency and sustainability

Increasing the proportion of non-credit income with a focus on services and capital business investment

Ensuring reasonable credit growth along with credit restructuring to gain efficiency and sustainability

ASSESSMENT BY BOARD OF DIRECTORS

With the management motto of “Transformation - Efficiency – Sustainability” and “Innovation - Discipline – Responsibility” set for 2019, the BOD gave strict and prompt instructions to Vietcombank’s activities in the whole year.

With effort and determination of the whole employees, at the end of 2019, Vietcombank achieved and exceeded all key business targets set by the Shareholders’ General Meeting, rose strongly to affirm its leading position in the banking sector in terms of profit size and asset quality.

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Chapter 1
Chapter 3
Chapter 4
Chapter 5
Chapter 6
MESSAGE FROM CHAIRMAN AND CEO
FINANCIAL HIGHLIGHTS 2015-2019
10 NOTABLE EVENTS OF VIETCOMBANK IN 2019