F12-151 - PHAM TRAN MINH TUAN.v.1.1v.1.1.docx

Promote intensive business growth and continue to

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promote intensive business growth and continue to shift its business structure towards selective and efficient growth inflation rate kept below at 4%, macro economy should remain stable and the growth rate is expected to be 6,7%. Vietinbank also improve the qualities of services continuing develop modern products and services in addition raise service fee income and non-interest income to improve their income structure. Vietinbank aims to Sustainable growth is closely tied to business performance, restructuring of income, increase
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non-interest income especially the service fee through improving the quality of products. Vietinbannk will focus on develop business activities. Keeping up with trend and industry 4.0 revolution. Improve financial ability to sustain stable development. The next one is the long development targets. In 2020 Vietinbank set a goal to become a largest financial group with the best operational efficiency in the banking system in Vietnam. In order to achieve that ambitious target, they have identified the strategic areas that need to focus on such as maintain a sustainable growth, develop better services, provide higher service quality; increase the quality of labor. (Vietinbank,2017) 1.5 , Critically analyse the performance of Vietinbank. According to Vietinbank s annual meeting of shareholder in 2018 (Vietinbank s annual report, 2017). Firstly, we can see that their total asset as of 31 st December 2017 reached nearly VND 1,1 quadrillion, it is a huge increase of 15,4 % compare to 2016 and hit 101,2% of the 2017 business plan. Which make Vietinbank become one of the joint-stock commercial banks with the larget asset size. (Vietinbank annual report, 2017) Secondly, total liabilities of Vietinbank in 2017 were approximately 1 quadrillion, an increase of 16,2% compare to 2016 (VND 870,163 trillion), and complete 101,5% GSM plan of 2017 (Vietinbank annual report, 2017) Thirdly, the credit exposure in the end of 2017 reached VND 840 Trillion, a raise of 18% compare to 2016 (VND 712 trillion) not only that the bank has started to serve the economic development, they were focusing on financing manufacture and the government- prioritized area. Which make the NPL/credit exposure ratio is 1.13% which is lower than the industry average. (Vietinbank annual report, 2017) Follow by the NPL/credit exposure is the profit before tax, in 2017 Vietinbank s profit before tax has reached VND 9,206 billion, accomplishing 105% of the GSM business plan.
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The ROA and ROE were 0.9% and 12% respectively all meet the requirement set by the GMS (Vietinbank annual report, 2017) In conclusion, Vietinbank s performance in 2017 were great because they have accomplished most of the GSM business plan, some criteria even pass the requirement of the GSM plan such as: total asset, profit before tax, credit exposure. 1.6 Assess the future directions of the Vietinbank in terms of, for instance, growth, market objectives, among others .
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