Presentation of Vietinbank

1. VietinBank Overview
March 2012

2. VietinBank Overview
• Vietnam Joint Stock Commercial Bank for Industry
and Trade (VietinBank) is a leading financial and
banking group, plays an key role in Vietnam
financial-banking system.
• Established in 1988, upon its separation from the
State Bank of Vietnam (SBV)
• In 2008, VietinBank successfully undertook its Initial
Public Offering (IPO) and equitized into Joint stock
corporation and listed in the Hochiminh Stock
Exchange
• In 2009: officially renamed into Vietnam Joint Stock
Commercial Bank for Industry and Trade.
• In 2010: signed an investment cooperation
agreement with International Financial Corporation
(IFC)
• In 2011: IFC officially became the foreign
shareholder of VietinBank, with the possession of
10% of VietinBank chartered capital.
• Second largest in Vietnam banking system in term
of net work and total assets

3. Structure of ownership
Major Shareholders’ stakes Major shareholders’ supports
Government
• VietinBank is currently 80% owned by the
Government. Government’s share holding will
10%
not fall below 51% at any time.
7%
• The majority of Board of Director’s members
3% are appointed by Government.
• VietinBank is regularly supported by
Government.
IFC
Conducting technical assistants to VietinBank in:
80%
• Risk Management
• SME services
• Energy saving efficiency
• Information technology
State Bank of VietNam IFC
• Standardization of other services.
IFC Capitalization Fund Others

4. Resonable Management structure
General Shareholder Meeting
Subsidiaries and Affiliates
Supervisory Board
Risk Management Committee
Board of Directors Committees
HR and Remuneration
Committee
Internal
Internal Audit Secretariat to Board
Controllers
Policy Committee
CEO
Information and
Communication Commitee
ALCO Management
Committee
Deputy General Directors
and Chief Accountant Technology Development
Strategy Research
Committee
Departments of Main Operation Center
Non-profit Making Units Representative offices
Head Office and Branches
Transaction Offices

5. Second largest
Branch network in Vietnam
• Nation-wide Network
– 01 Main Operation Center in Ha Noi
– 1.093 branches, Transaction offices and Saving offices
– 02 Representative offices in Da Nang and Ho Chi Minh City
– 02 Joint-Venture Companies (Joint venture Bank of
Indovina and VietinBank Aviva Life Insurance Company)
– 07 Subsidiaries
– 03 non-profit making units
• Expand network to the world
– Opened a branch in Frankfurt in September 2011 and Laos
in February 2012.
– Plans to open branches in Berlin in 1st quarter of 2011
– Plans to expand network to England, France, Czech, Poland
and South-east Asia nations in 2012.
• Correspondent Banking Relationships with nearly
1.000 financial institutions in the world

6. VietinBank’s strength

7. Corporate mission
and strategic objectives
Strives to become the leading financial group in Vietnam and
Mission highly rated bank in the international domain with motto:
Safety – Efficiency – Modern – Sustainable growth, focusing on
Commercial banking, Investment banking and others.
Overall Strategic Objectives
1 Continue to expand business vertically and horizontally to increase market share
2 Enhance service quality to ensure the efficiency in the context of well-managed risks
3 Improve financial capability and transparency
4 Strengthen corporate governance and risk management in line with international standard
5 Accelerate modernization of the Bank
6 Become the leading financial group and key player in Vietnam
7 Maximize stakeholder’s value

8. Strategic focus
and growth areas
Short to medium term strategies Long term strategies
 Tailor-made products and services to meet  Position the bank as a strong universal bank,
customers’ need and provide all financial services providing a full spectrum of banking services
under one roof
 Diversify shareholding with the best capital structure
 Rationalize operations and increase co-operation through selecting suitable foreign strategic partners
between departments to maximize cross selling
opportunities and improve efficiency  Leverage shareholders’ strength and resources to
further develop the Bank
 Standardize policies and procedures in each
department  Accomplish the optimal group structure and optimize
the internal resources to ensure business efficiency
 Improve labor efficiency through specialization and and sustainable development
rendering appropriate training and development
 Improve the quality of the human resources
 Develop non-banking products and services to
increase share of non-interest income to total  Establish a strong and advanced IT platform
income.
 Collectively develop the organization structure,
 Restructure assets and liabilities to ensures internal policies, technology and infrastructure to
sustainable development facilitate the business expansion
 Human resources development

9. Specific strategic objectives
 Expand market and client base and increase  Strengthen capital base to enhance financial
market share strength (CAR>=10%, ROE in the range of
20-25% and ROA in the range of 1.5-2.0%)
 Achieve total assets growth 20%-25%/year
 Expand distribution network both
domestically and internationally
 Improve service quality to increase the
share of non-interest income
 Build up strong supporting infrastructure
 Broaden customer and product base
 Enhance marketing and PR
 Enlarge the retail banking business
 Improve social responsibilities and
 Focus on risk management: maintain NPL community services
ratio <= 3.0%

10. Steadily-growing ratios
with high profitability
Assets and Loan Growth Net interest Income and Net interest Margin
VND billion VND billion

11. Well managed- operating cost
Cost to Income Ratio Operating Expenses Breakdown
VND billion

12. Strong overall profitability
Strong growth of Profit ROAA & ROAE
VND Billion

13. Contribution in subsidiaries
Total contributed Percentage of Charted
Subsidiaries capital contribution capital
(VND bil) (%) (VND bil)
VietinBank leasing Company Ltd 500 100% 500
VietinBank Securities Joint Stock
500 75.61% 790
company
VietinBank Debt Management and Asset
30 100% 30
Exploitation Company Ltd
VietinBank Insurance Company Ltd 300 100% 300
VietinBank Gold and Jewelry Trading
300 100% 300
company Ltd
VietinBank Fund Management Company
500 100% 500
Ltd
Global Money Transfer Company Ltd 50 100% 50

14. Asset Quality Overview
• The best quality asset in Vietnam banking system
• VietiBank has a healthy credit systems, utilising appropriately credit limits and
relevant credit risk appetite
• Such systems are enhanced by a strong credit culture, benefiting from well-defined
delegations of authority and reporting channels
• Credits are well diversified with respect to groups of customer and sectors, ensuring
the good diversification of potential risks.
• Comprehensive and detailed loans classification and provisioning requirements and
policies are applying, consistent with regulatory norms and guidelines.
• Existence of robust procedures have resulted in positive developments in non-
performing loans in recent times.
• Strong credit risk management system is used to ensure improvement in the asset
quality in this growing economics environment.

15. NPL ratio is well controlled
Group 2011 2010 2009 2008
Value Value Value Value
% % % %
(VND bn) (VND bn) (VND bn) (VND bn)
Group 1
285,213 97.20 230,267 98.32 160,510 98.37 114,596 94.90
Current
Group 2
6,017 2.05 2,399 1.02 1,660 1.02 3,968 3.29
Special mention
Group 3
1,071 0.36 925 0.39 230 0.14 847 0.70
Substandard
Group 4
220 0.07 411 0.18 333 0.20 803 0.67
Doubtful
Group 5
912 0.31 203 0.09 437 0.27 537 0.44
Loss
Total 293,434 100.00 234,205 100.00 163,170 100.00 120,751 100.00

16. NPL ratio much lower than
the industry average

17. Stable deposits growth
Deposit structure (VND bn) Deposits of customers & credit institutions (VND bn)
Outer ring: As at 31/12/2011: 406.886 VND bn 240,049
Inner ring: As at 31/12/2010: 318.805 VND bn VND bn
241,014
163,386
130,458
117,686

18. Risk Management Structure
Board of Directors
Committees
CEO
Risk Management Group Risk Management ALCO Management
Committee Committee
• Credit & Investment Risks Management Department
• Credit & Investment Policy Department
• Market & Operational Risks Management
Department
• NPLs Management Department

19. Credit Risk Policy
To achieve credit expansion required for
Credit sustaining the profitability of the Bank with
Philosophy an emphasis on quality assets, profitable
relationships and prudent growth
• Balanced growth of credit portfolio
• Forward looking and market responsive approach
• Moving to new profitable areas of lending with predetermined exposure ceiling
Credit • Ensuing compliance of regulatory norms
Objectives • Deployment of credit across various sectors and geography
• Using pricing as a tool of competitive advantage while protecting earnings
• The overriding objective in credit policy is to achieve a healthy balance
between
Underlying – Credit volumes
Principals – Earnings and
– Asset quality

20. Credit Risk Management
• Setting limits on the amount of risk it is willing to accept for
individual counterparties, geographical and industry
concentrations. Monitoring exposures in relation to such limits
• Established a credit quality review process to provide early
identification of possible changes in the financial position as
well as debts repayment ability of counterparties
• Counterparty limits are established by the use of a credit risk
classification system, which assigns each counterparty a risk
rating
• Risk ratings are subject to regular revision

21. Interest Rate Risk Management Process
• Using GAP analysis of rate sensitive assets and liabilities
and monitored through its prescribed prudential limits
• Investment activities: The Bank forecasts fluctuation of
market interest rate and makes appropriate investment
decisions
• Fund mobilization and utilization: interest rate for fund
Interest Rate mobilization is determined under market price principles, in
Risk
which interest rate is subject to demand, fund mobilization
scale and market interest rate movements
• Lending activities: determine lending interest rate based on
the cost of funds, management expense plus targeted profit
margin.
• Building and applying inspection and monitoring regulations

22. Currency Risk Management Process
• Applying limitation system to mange currency positions on a
daily basis. Risk prevention strategy is to keep the currency
positions in the established limitation.
• Alco Planning and Supporting Department analyses and
projects cash-in and cash-out flow for each type of currency
(mainly VND, USD and EUR equivalent) based on actual cash
flows and growth target registered by business units. It is
managed based on daily outstanding balance in accordance
Currency Risks with guidance to ensure the safety and effectiveness of the
whole system.
• Restricts lending in importing goods that can be domestically
produced and establishes preference for lending to import
essential.
• Ensure to have enough forex funding lines with International
financial institutions

23. Liquidity Risk Management Process
• The Bank diversifies its funding sources in addition to its core deposit
base to reduce liquidity risks.
• Flexible policy in managing liquid assets and monitoring future cash flows
and liquidity on a daily basis. The Bank also assesses expected cash flows
and the availability of collaterals in case the Bank needs to mobilize more
capital.
• Alco Dept. analyses and projects flows of cash-in/cash-out in accordance
with approved plan; and provides decisions on available fund
management based on movement of the Bank’s capital and its daily
Liquidity Risks utilization
• Investment Department creates the Bank’s liquidity buffer through
purchasing highly liquid valuable papers. Besides, Investment
Department also establishes credit limit with other banks for mutual
assistance when needed.
• By the centralized settlement scheme at the Head office, VietinBank is
always active in the daily liquidity management.
• The Bank is currently setting up software, developing upgrades and
finalizing the risk management process to catch up with the international
standards.

24. For further information, please contact:
Investor Relations - Investment Department, VietinBank
Address: 108 Tran Hung Dao street, Hanoi, Vietnam.
Email: investor@vietinbank.vn
Website: investor.vietinbank.vn
Tel: 84-4-39.421030 ext: 08203