Accelerating digital transformation, VietinBank is ready for a new development journey
Recently, Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) held an online Conference of Investors and Analysts in 2024. Attending the Conference, on the side of VietinBank, there were Ms. Pham Thi Thanh Hoai - Member of the Board of Directors and representatives of the leaders of key departments, offices and units at VietinBank Headquarters. On the guest's side, there were nearly 80 analysts from more than 60 organizations, representing investment funds, securities companies, fund management companies; shareholders of VietinBank; potential investors interested in investment opportunities in CTG stocks.
Business activities grow impressively
In 2023, VietinBank has actively implemented synchronous business solutions, promoted innovation, strongly transformed the growth model, rapidly shifted the income structure, and implemented customer strategy as the center. Also in 2023, VietinBank successfully increased its charter capital to more than VND53,000 billion through issuing shares to pay dividends from 2020 profits, contributing positively to creating resources for business growth.
By December 31, 2023, VietinBank's business targets will all meet the plan assigned by the State Bank and the General Meeting of Shareholders. Specifically as follows:
- Total assets increased by 12.4% compared to the end of 2022 and was the first year the total assets of VietinBank reached more than 2 million billion dong. Outstanding loans grow by 15.6% compared to the end of 2022, growth in the highest group in the banking industry. Customer deposits increased by 12.9% compared to the end of 2022. Notably, in the context of difficult markets, CASA The whole industry decreased but at the end of 2023 CASA of VietinBank still recovered strongly, up 27.2% compared to the end of 2022; The proportion of Casa reached 22.6% (up 2.5% compared to 2022).
- Total operating income in 2023 will reach 70.7 trillion VND, an increase of 10.2% compared to 2022. Non-interest income contributes 26.8% of total operating income with the main driving force from core operations including guarantee, trade finance, foreign currency trading, etc.
- VietinBank's CIR ratio in 2023 will reach 28.9%, lower than the 29.9% in 2022. Accordingly, net profit from business activities before risk provision costs in 2023 will reach 50.2 trillion VND, an increase of 11.8% compared to 2022 and the highest ever.
- 4Q2023 loan debt/balance ratio at 1.13%, lower than the bad debt ratio of the whole industry and is the only bank in the group of leading commercial banks to reduce the bad debt ratio compared to 2022. The 4Q2023 bad debt coverage is 167.2%, continuing to maintain at a high level.
- Pre-tax profit in 2023 will reach 25.1 trillion VND, an increase of 18.8% compared to 2022, completing the plan assigned by the General Meeting of Shareholders. NIM reached 2.91%, ROA and ROE reached 1.31% and 17.08%, respectively.
Accompanying the Government and standing side by side with businesses for sustainable development
The bank has built a Sustainable Finance Framework according to international practices, providing specific instructions for financing and managing finances for the portfolio of Green and Social projects.
VietinBank signed a cooperation agreement with the Ministry of Natural Resources and Environment, signed an agreement with MUFG to mobilize up to 1 billion USD at COP28.... As of December 31, 2023, VietinBank's total outstanding green credit reached VND 47,465 billion with nearly 1,000 customers (accounting for 3.24% of total outstanding credit granting).
Pioneering comprehensive digital transformation in all fields
In recent times, VietinBank's Digital Banking platforms for science and technology and banking have continuously recorded positive results: The VietinBank iPay Mobile application for science and technology continues to attract nearly 7.8 million customers; reaching 1,180 million transactions. The proportion of transactions via iPay channel reached 91.6% of total LTS transactions. For e-commerce, the eFast application has attracted 107 thousand businesses to use regularly; reaching 32.5 million transactions. The proportion of transactions via eFAST channel increased to 82%.
In 2023, VietinBank selected the world's leading consulting unit to accompany the bank in developing and implementing a digital transformation strategy for the 2023-2025 period, with a vision to 2030 with all 4 pillars: Digitalization, Data, Technology and Organization. The digital transformation strategy is implemented with the expectation of creating outstanding competitiveness for the bank and bringing optimal experience to customers.
Ready for a new development journey
Entering the new phase, with experience culminated in a journey of 35 years, with a strong mindset and confidence in overcoming difficulties, along with the policy of safe operations - efficient business - sustainable development, VietinBank will continue to steadfastly follow the development path to reach new heights in the banking and financial market.
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