Techcombank The Leading Joint Stock Bank in Vietnam

An Introduction to Techcombank
Established in 1993

Main shareholders: HSBC Hongkong, Vietnam Airlines

Network: over 160 branches and TSOs in 30 provinces and cities, 300 ATMs with connections to an additional 4,000 ATMs operated by Smartlink and Banknet

The 1st Vietnamese bank to successfully introduce a modern, international standard core banking system in 2003
Very strong in Trade Finance; SME and Micro SME Lending Payment, Trade Finance Operations and Credit Appraisal are centralized in Head Office

Competitive Position
Total asset
120,000.00
102,709

Profit bebore tax

1,100 1,000 900 800
754.04 722.95 1,000.08

100,000.00

VND mil

80,000.00

74,962

VND mil

700 600 500 400 300

551.81 461.63 397.32 327.77 239.53

60,000.00

51,821 44,512

40,000.00

35,908

32,970

30,260 20,467

20,000.00

200 100

0.00
ACB ST B T CB EXB VIB Dong A MB VPBANK

0
ACB ST B EXB T CB MB Dong A VIB Habubank

Charted capital
5,000.00
4,449

4,000.00

3,733

3,000.00

2,630

2,521 2,364 2,000 2,000 2,000

2,000.00

1,000.00

Techcombank is in the top 4 JSCBs in terms of capital, assets and net income. At H2 2008.

VND mil

0.00
ST B EXB ACB T CB MB Habubank VPBANK VIB

Techcombanks Rating

Financial Highlights
VND billions Total Asset Deposit from Customer Profit before tax Equity 2006 17,212 9,566 302 1,680 2007 39,542 24,476 709 3,573 2008 9 months 56,022 40,866 769 5,568

The 2008s figures are not audited

Trade Finance in Times of Tight Market Liquidity

Corporate Banking
SMEs Large Corp

High Margin
High growth Industries Diversification

Low Margin
Core industry State-owned Established relationship

Advisory

Value added
FX, payments, trade, financing, export& import services

Value added services

FX, Trade

Techcombank has a tradition of strength in the SME sector and the bank is known in the market as the No 1 bank for SMEs. This segment represents 70% of the banks total loan portfolio and 90% of its fee income and it will continue to be the focal point for corporate banking in the future.

Challenges
For enterprises: Banks reduce credit facilities: cash flow problem Economic downturn: loss FX volatility: loss Higher cost of financing: loss For banks: Tight liquidity: Limited access to fund NPL increase: Higher provision High inflation: Lower deposits, higher COF

Why Trade Finance? Attract better funding from correspondent bank (Trade refinancing) Less risky for the bank (lend on individual transactions that self-liquidate from trade payment) Fee income to compensate low margin Good cross-selling opportunities to FX, guarantees

What Techcombank Offers?

We focus on: SMEs who operate in trading and manufacturing Industries: ship building, construction steel, metals, fertilizer, rubber, coffee, rice, pepper, fishery We provide: L/Cs, Collections, Guarantees, Services Import finance: import post-shipment financing, refinancing Export finance: packing credit, pre-shipment financing, post-shipment financing; factoring Domestic Trade: Supply chain financing

Techcombanks Competitive Advantage?

Provide good and consistent service Techcombank is the only Joint Stock Bank to have a centralized processing centre in Vietnam Techcombank provides a Priority service for big trade clients We are proactive Techcombank has a Trade Sales team at HO who monitors volume fluctuation/attrition and visits customers to listen to their needs. We are innovative We provide new trade products such as supply chain, logistic financing, project package financing We provide value-added services Dox pick-up, dox-prep, dox-check and advisory We ensure financing for trade customers even in tight liquidity in the market Techcombank has the highest growth in retail deposits in the market Techcombank received a bigger line for import refinancing from correspondents and IFC Techcombank has a good risk management system to select customer

Volume
3,500 3,000 2,500 2,000 1,500
100 1,902 1,407

Remittance Collection L/C

Millions USD

1,000 500 0

799

85 1,188 888

44 499

2006

2007

2008

(9 months)

Liquidity Management

Funding Base
60,000
7,199

50,000
5,135

6,165 7,956 9,810 4,830 9,780 9,984 9,787 10,155

40,000 30,000 20,000 10,000

14,119 10,500

Other assets Interbank Coprorates Individuals

10,108 30,711 25,861 21,513

Billions VND

0
'Dec-07 'Mar-08 'Jun-08 'Sep-08

Funding Base (Continued) Deposits have grown steadily as a result of new saving products, good interest rates and customer incentive offers. In 2nd quarter 2008, whilst the general Vietnamese banking market faced very tight liquidity and difficulties, Techcombank remained strong. Techcombank maintained a CAR of 14.3% (as end of 2007) and 11.86% (as end of June 2007)

Customer Loans and Advances

30,000 27,319 25,532 25,000 25,076

20,188 20,000

15,000

Loans outstanding L/C outstanding

Billions VND
10,000 7,860 5,000 5,455 4,010 3,837

0 'Dec-07 'Mar-08 'Jun-08 'Sep-08

Thank You!