Eximbank's announcement


CFO Eximbank: "Eximbank will enter the orbit of top banks from 2016"


Mr. Nguyen Ho Hoang Vu

(ĐTCK) In just a few days, the 2015 Annual General Meeting of Shareholders of Vietnam Export-Import Commercial Joint Stock Bank (Eximbank - code EIB) will take place with many important contents such as: the end of its mandate. 5-year term of the Board of Directors, the Bank's business plan in the new term... Before the meeting, DTCK interviewed Mr. Nguyen Ho Hoang Vu, Deputy General Director, and Chief Financial Officer of Eximbank.
Eximbank achieved a profit of 545 billion VND in the first quarter of 2015
In 2014, Eximbank's pre-tax profit was only 69 billion VND. How did Eximbank regain growth momentum in the first quarter of 2015?
In 2014, Eximbank's profit from business activities before provisions reached 1,940 billion VND, ROA was 1.17% and ROE was 13.5%. Eximbank's income generating machine is completely normal and reaches high capacity in the banking system. In the first quarter of 2015, Eximbank's capital mobilization from economic organizations and residents reached VND 99,317 billion; Loan balance reached 82,264 billion VND and pre-tax profit reached 545 billion VND.

The reason why pre-tax profit in 2014 was only 69 billion VND is because we made provisions. With strong provisioning, Eximbank resolved the backlog and the system became as smooth as an engine with new lubricating oil. This policy is the determination of the Executive Board, headed by the General Director, and has been approved by the Board of Directors. We believe that the shareholders' meeting will still receive support because this is also the general policy of the entire banking industry.
Looking at the reported data, we can see that Eximbank's mobilization from economic organizations and residents decreased compared to the end of 2014, outstanding loans also decreased, but why is pre-tax profit still very positive, sir? ?
At the end of 2013, Eximbank's capital mobilization reached 82,758 billion VND, and at the end of 2014, this figure was 101,480 billion VND. Loan balance increased from VND 83,354 billion at the end of 2013 to VND 87,147 billion at the end of 2014. These two indicators decreased in the first quarter of 2015, but pre-tax profit still met expectations. The reason is very simple: we continue to implement the policy of restructuring mobilized capital and loans to create more effective profit margins. For deposits, we reduce products with high interest rates; For lending, we reduce products with low interest rates.
But if so, will Eximbank's safety indicators be affected?
As of the end of the first quarter of 2015, Eximbank's capital adequacy index (CAR) was 13.79%, a very high level compared to the standard of 9%. The ratio of short-term capital for medium and long-term loans is 22.37%, lower than the standard level of 30%. The loan to capital mobilization ratio is 82.83%. Clearly, Eximbank is in a dream safe state.
Profit plan of 1,000 billion VND in 2015
So why is the 2015 profit plan expected to be 1,000 billion VND?
As you can see, Eximbank's income generating machine is increasingly perfect. However, we assess that in 2015, the economy has not completely escaped difficulties. Therefore, income for provisions must still be significant. If following this momentum, Eximbank's income from business activities must reach 2,400 billion VND or more and if the provision is 1,400 billion VND, the profit will be 1,000 billion VND. From 2016, the economy has more positive signs, the level of provisions will also decrease, and the provision for 2014 and 2015 will be reversed into extraordinary income, Eximbank will go into the fund. leaders of top banks across the system.
How does Eximbank ensure the completion of these plans?
We once again realized that people are Eximbank's most valuable capital. Eximbank's officers and employees have sincere feelings and desire to contribute. Therefore, we advocate planning from the grassroots level. The plan that we plan to submit to the Shareholders' Meeting is voluntarily registered by branches and transaction offices. Normally, it is not until after the Lunar New Year that we complete the plan for the fiscal year, but this year, the plan was created even before 2015 had entered.
Another factor we discovered is that over the years, we have not been able to create initiative for the transaction offices. The whole system has 165 transaction offices, but on average each transaction office only contributes 1 billion VND in profit. Focusing on creating mechanisms for transaction offices, this year, on average each transaction office registered a profit of up to 4 billion VND and if there are no major changes, we will have 600 billion VND. In addition, we strengthened the planning department and monitored plan implementation right from the first days of the year.
Eximbank will maintain its import and export position
Recently, The Asian Banker Magazine awarded the "Best Trade Finance Bank 2015" award to Eximbank. Please tell us the meaning of this award?
This is the second time Eximbank has received this award. It once again affirms Eximbank's import-export financing position. Sometimes during the development process, we forget this strength, but in 2014 and the policy of the coming years, we return to our core values, consolidate and incorporate them into the development cycle. new higher growth, turning Eximbank into a transaction bank with the proportion of revenue from services gradually replacing revenue from credit. Currently, Eximbank has agency relationships with more than 869 banks and bank branches in 76 countries worldwide.
Currently, how does revenue from services contribute to Eximbank's total income and what is Eximbank doing to improve this revenue source, sir?
Of Eximbank's pre-tax profit of 545 billion in the first quarter of 2015, there was 102 billion VND in income from service activities, accounting for 18.71%. Compared to other banks of the same scale, this proportion is very high, but Eximbank does not stop there. We are improving this proportion every day and are aiming to reach 20% by the end of 2015.
In 2015, with the help of strategic shareholder Sumitomo Mitsui Banking Corporation, Eximbank will establish an international payment center to unify the quality of trade finance services throughout the system and move towards the highest standards. global service standards. In phase 1, we will focus on Vietnam - Japan trade relations, then expand to countries in the region and around the world.
(Excerpt from Securities Investment)

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