Vietnam Import-Export Commercial Joint Stock Bank changed its operating structure to ensure stability when the Covid epidemic became complicated in 2020.
Accordingly, this bank reduced input mobilization interest rates and at the same time limited the customer segment requiring high deposit interest rates, which the Bank had to attract during previous difficult mobilization periods, instead of by the Mass (common) customer segment with lower interest rates. This innovation direction aims to ensure stability, strengthen the customer base and reduce capital mobilization costs. With the capital reserve situation in the banking system, Eximbank also proactively reduces mobilization in market 2 to be more efficient. The short-term impact of these two restructuring directions is that the Bank's mobilization scale decreased by 3.8% in 2020.
Right from the beginning of the year, realizing that the market was difficult and business customers would face many impacts, the Bank strictly controlled lending related to real estate. In addition, a decrease in natural demand (due to reduced risk tolerance for business expansion of customers, optimization of cash flow by each Customer, lower demand in the context of the epidemic) has impacted a group of 15-20 Customers with large arising needs. The total impact of the two segments has caused outstanding debt with trading factors (seasonal factors, taking advantage of market opportunities, high risk - high profit) to decrease by 10.2%. However, the Bank's Board of Directors also believes that as soon as the favorable market returns to the Customer group, this demand group will grow again the most strongly.
Although the scale of credit and mobilization decreased, these portfolio restructuring actions improved the profitable asset margin by 15 basis points. Credit approval continues to be strictly implemented, without loosening loan quantification. In addition, the bank also quickly grasped the situation and came up with an appropriate new business plan, cutting operating costs compared to last year, thereby recording positive numbers, exceeding the expectations of the bank. leadership.
According to Mr. Nguyen Canh Vinh - Acting General Director of Eximbank, last year, the Covid-19 epidemic had a negative impact on the global economy in general and Vietnam in particular, however, Eximbank had contingency plans, making efforts to transform so that the bank can adapt to the new context, especially good control of existing risks with continuous improvements in operations and stable long-term growth. In the coming time, the bank will continue to strongly deploy strategic initiatives, reorient operations according to existing strengths to serve customers better, restructure effectively, and recover growth. leader of the epidemic.
Mr. Nguyen Canh Vinh - Acting General Director of Eximbank shared about the bank's overall results in 2020
and business orientation for 2020 in the Summary Conference on January 30, 2021.
Thanks to improvements in operations, despite facing many difficulties due to the epidemic, pre-tax profit grew by 22%, completing 100% of the year's plan. Key banking business segments such as card and Bancasurance also achieved outstanding growth rates. Accordingly, the card fee collection segment reached 127 billion VND, a growth of 144% compared to 2019. Insurance fee income reached 112 billion VND, a growth of 23%, contributing to bringing the growth of service income in 2020 to 20%. , the highest increase in the last 4 years.
Thanks to those efforts, although the financial industry is still affected by the epidemic, international credit rating agency Standard & Poor's Global Ratings announced that Eximbank's long-term partner credit rating is maintained at B+ with a positive outlook. “stable” in 2020, unchanged from the rating announced in September 2019.
Eximbank also proactively implements major projects to promote comprehensive growth such as business unit restructuring plans; Aims to solve major problems that the operating system is facing such as: cumbersome and heavy organizational structure model, low operating productivity and efficiency compared to the market; Service quality and customer experience are not optimal, business results lack breakthrough...
In particular, the project is implemented with three major pillars including restructuring the organizational structure model; training and capacity building; and adjust processes and regulations. After initial implementation, the bank recorded major changes in human resource expertise as well as streamlining the operating apparatus and middle management staff. Service quality and customer experience also show signs of positive improvement.
The priority customer specialized service model project is considered an important turning point for Eximbank in transforming the business model for the upper and middle-class customer segments. The bank representative said that bringing unique experiences to these high-end customers will also be the focus and guideline that Eximbank is aiming for in the coming time.
In addition to the new direction and recorded growth, Eximbank also applies information technology to increase operational productivity. The bank has completed implementing centralized operation projects such as centralized fund reception, centralized collateral management in Hanoi and Ho Chi Minh City, and centralized card operations.
Regarding information technology, Eximbank has implemented many projects to support business and operations such as upgrading online banking services to help bring better customer experience; Enhance information security with Smart-OTP authentication system; optimizing over-the-counter transaction processing or implementing a customer contact system via call center and social networks... From the above efforts, in October 2020, Eximbank received the "Digital Transformation" award. Vietnam -VietNam Digital Awards" awarded by the Vietnam Digital Media Association thanks to the Teller App project. This is the second consecutive year the bank has received this award. The bank also continuously receives STP Awards for international payment quality from prestigious foreign financial institutions. This year, the unit achieved an international payment rate throughout 2020 of 99.51% and was honored to receive the STP award from JP Morgan bank.
In addition, one of the outstanding milestones in the past year that the bank achieved was receiving notice of granting a trade finance limit and a revolving credit limit with a total value of up to 31 million USD (equivalent to 725 billion VND). Dong) from the Asian Development Bank (ADB).
At the same time, the bank's operational safety and liquidity indicators are still firmly maintained at a good level, ensuring a defensive cushion for Eximbank against all unexpected situations in the economy: LDR ratio maintained. at 78% - 81%, the CAR safety index according to Circular 41 is maintained at 10.5 - 12.5% compared to the requirement of 8%.
"Eximbank has been trying to overcome difficulties while constantly improving technology and enhancing operational capacity to optimize customer needs, at the same time across channels," the bank representative affirmed. .