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Some Business Performance Results of the Branch


2.1.3. Branch organizational structure

Diagram 2.1: Management organization structure


Source: Human Resources Department


2.1.4. Some business performance results of the Branch

2.1.4.1. Business results

Table 2.1: Business performance results

Unit: billion VND


Target

Year

2018

Year

2019

Year

2020

2019/2018

2020/2019

Value

Rate (%)

Value

Rate (%)

Total income

1,396.26

1,359.11

1,446.68

- 37.16

-2.66

87.57

6.44

Total cost

1,244.12

1,176.90

1,253.63

- 67.22

-5.4

76.73

6.52

Profit

152.14

182.21

193.04

30.07

19.76

10.83

5.95

Maybe you are interested!

(Source: Business performance report of VPbankTran Hung Daobranch 2018-

2020 )

* About income:

Total revenue of VPBank Tran Hung Dao branch has had good growth over the years, specifically in 2020 compared to 2019, revenue increased by 87.57 billion VND or 6.44%. Meanwhile, expenses also increased but only increased to 76.73 billion VND, causing profit in the year to increase to 10.83 billion VND. The main sources of income still come from interest income from lending activities, which is also typical of most commercial banks in Vietnam and is also a great effort of the branch during the period affected by the Covid19 pandemic.

* About cost:

In total expenses, interest expenses account for a large proportion. In 2018, the expense was VND 1,244.12 billion, in 2019, this expense was VND 1,176.9 billion, a decrease of VND 67.22 billion or a decrease of 5.4% compared to 2018; in 2020, this expense was VND 1,253.63 billion, an increase of VND 76.73 billion or an increase of 6.52% compared to 2019, this is a fairly high increase and reduces the profit of VPbank Tran Hung Dao branch. In interest expenses, the item of deposit interest payments tends to increase over the years. Because this item accounts for a large proportion of interest expenses, when this item fluctuates, the interest expense also increases significantly. This is because VPbank Tran Hung Dao branch expands business, increases capital mobilization according to plan, causing expenses to increase. In addition, interest payments on loans and interest payments on issuance of valuable papers


There have been fluctuations over the years. These are bad signs that cause profits to decrease, so VPbank Tran Hung Dao branch needs to have appropriate policies to improve business efficiency and increase profits.

* About profit

Every year, VPBank Tran Hung Dao branch has achieved the plan assigned by Vietnam Prosperity Joint Stock Commercial Bank, the following year's profit is always higher than the previous year. In 2019, the branch's profit increased by about 30.07 billion VND (an increase of 19.76%) compared to 2018. In 2020, the profit increased by 10.83 billion VND (an increase of 5.95%) compared to 2019. Although growth slowed down in 2020, overall this is still a fairly good growth rate for the branch in the context of the economy being affected by the Covid 19 pandemic. To increase profits, the branch has done a good job of managing asset items, especially loan products, diversifying services to increase revenue and save costs.

2.1.4.2. Capital mobilization activities

Activity

Dong Huy Don

g capital ear

VPBank branch of Tran Hung Dao in the past

continuous past

growth and expansion​​​​

g. To achieve

ok

as a result , only the house​​

tried very hard

in work

deploy a variety of mobilization products and services

g capital

We offer many forms of promotional advertising for customers to participate in depositing money . The branch is very proactive in taking care of customers and at the same time , we love them .

through care push work

Find new customers ; Established branch and​​​​​​

has a strong relationship with many organizations and units in Hanoi .

large sources of funds such as : State Treasury , Customs , Social Insurance , Center

Hanoi City Land Development Plan , Hanoi City Environmental Protection Plan ...


Table 2.2 : Activity results

Branch's capital mobilization in 2018-2020

Unit: billion VND



Target

Year

2019/2018

2020/2019


2018


2019


2020


Value

Growth rate

(%)


Value

Growth rate

(%)

By segment








Business deposits

career


2,289


3,300


5,049


1.011


44.17


1,749


53.00

Residential deposits

4,257

4,983

4,488

726

17.05

- 495

-9.93

By term








No term

2,706

2,541

2,772

-165

-6.10

231

9.09

Term

3,840

5,742

6,765

1,902

49.53

1,023

17.82

By deposit type








VND

5.523

7,194

8,481

1,671

30.26

1,287

17.89

Foreign currency

1,023

1,089

1,056

66

6.45

- 33

-3.03

Total

6,546

8,283

9,537

1,737

26.54

1,254

15.14

(Source: Branch business performance report over the years)

With the advantage of being one of the leading banks in Vietnam and having a long-standing reputation in the industry, VPbank Tran Hung Dao branch has increasingly attracted a large number of depositors. Total capital mobilization in 2019 reached VND 8,283 billion, an increase of VND 1,737 billion (equivalent to an increase of 26.54%) over the same period last year. In 2020, the total mobilized capital increased again compared to 2019 by 15.14%, corresponding to an additional value of VND 1,254 billion. Specifically:

By mobilization segment: Mobilized capital is mainly concentrated in the individual group with a rate of over 60% (in 2018, 2019) and tends to decrease in 2020. Although the amount of mobilization for each individual is often very large, due to the low mobilization value of each customer, the mobilized capital level only reaches about 47% of the total mobilized capital of VPbank Tran Hung Dao branch.


By term: Non-term deposits in 2020 reached VND 2,772 billion (accounting for about 29.06%). Term deposits reached VND 6,765 billion, accounting for the highest proportion (70.93%), an increase of VND 1,023 billion compared to 2019, due to the fact that term deposit interest rates this year tended to decrease, while long-term deposit interest rates decreased but were more stable.

By deposit type: With the current policy of the State Bank, most customers only deposit in VND, this is a correct policy to limit USDization in the economy and better circulate USD cash flow. In 2019, VND mobilization reached 7,194 billion VND (accounting for 86.85% of total capital mobilization), an increase of 1,671 billion VND over the same period last year. In 2020, it reached 8,481 billion VND, an increase of 1,287 billion VND over 2019.

2.1.4.3. Credit activities

Outstanding customer loans by economic type

Table 2.3: Category structure

Content by economic sector 2018-2020

Unit: billion VND



Customer type

2018

2019

2020

Increase/ Decrease


Outstanding debt

Ratio

weight (%)


Outstanding debt

Ratio

weight (%)


Outstanding debt

Ratio

weight (%)

2019/

2018

2020/

2019

Group, corporation

2.019

31.49

1,797

27.66

1,776

21.80

-222

-21

Business customers

2,751

42.91

2,967

45.68

4,323

53.08

216

1,356

Individual customers, households

1,641

25.60

1,731

26.66

2,046

25.12

90

315

Total

6.411

100

6,495

100

8,145

100

84

1,650

(Source: Branch business performance report 2018-2020)

Credit activities are still the main business activity that creates profit.

profit

belong to

bank. In fact, the branch always focuses on developing the best loan products and services for customers.

2018: Total outstanding loans at the end of 2018 reached 6,411 billion VND .

2019: Increased outstanding loans by 84 billion VND compared to 2018. The bank increased its lending to corporate customers, corporations and groups.

2020: Total outstanding loans at the end of 2020 reached VND 8,145 billion. Of which


Mainly increase outstanding loans to corporate customers.

Through the data table

above we see, porch

now in the customer 's balance sheet​​

small business​

medicine

The subdivision accounts for the largest portion of the total outstanding balance of the branch .

For corporate clients , the absolute number​​

continuous loan balance

increase over

from 2018 to 2020. However, the ratio of outstanding loans to corporate customers fluctuated, in 2019 the ratio of outstanding loans to corporate customers increased by 6.46% compared to 2018. By the year

2020 hybrid

increased by 16.2% compared to 2019. For the corporate customer lending segment

porch

today the house is meeting

fierce competition for interest rates , preferential policies​​​

other banks in the area .​​​​​

For groups of customers that are corporations and general companies: currently


now on the ground

Hanoi City concentrates many customers in this area . Therefore ,

weight

and lending to this group is also easier than in other areas.

The entire balance of this customer 's loan portfolio is a collateralized loan .​​​

one-stop home loan

number of large and long - term projects

as a project loan of a large company

VPbank Tran Hung Dao branch is only a member branch . The surplus fluctuation

The lending of this group of customers mainly depends on the policy mechanism .​​​​​​​

VPbank with branches , ensuring reasonable distribution .​​​​​

With VPbank's 2022 business strategy and plan , VPbank

Tran Hung Dao branch will gather

strengthen and promote activities​​​

east loan

for corporate customers and individual customers , families , micro - enterprises​​​​​​​​​

tissue and characteristics

know

Assign the plan to increase the surplus of corporate customers to

occupy market share, expand network , scale, upgrade branch network .

Outstanding loans by term of the branch: short-term loans account for a relatively high proportion.


Table 2.4: Branch debt situation

Unit: billion VND



Target

2018

2019

2020

2019/2018

2020/2019

Value

Proportion

(%)

Value

Proportion

(%)

By appointment​

6.411

6,495

8,145

84

1.31

1,650

25.4

Medium and long term​

4.134

4.020

5,349

-114

-2.76

1,329

33.06

Short term

2,277

2,475

2,796

198

8.7

321

12.97

(Source: Branch Business Performance Report 2018-2020) Outstanding loans in 2020 increased sharply compared to the same period last year, mainly due to an increase in medium and long-term loans. Outstanding medium and long-term loans as of December 31, 2020 were VND 5,349 billion, with a growth rate of 33.06% in total outstanding loans and an increase of VND 1,650 billion compared to the same period last year.

with 2019.

Meanwhile, short-term loan balance fluctuated but at a relatively low level. Short-term loan balance as of December 31, 2020 was VND 2,796 billion (growth rate of 12.97% of total outstanding loans), an increase of VND 321 billion compared to 2019.

The outstanding debts at the branch are bad debts that have been incurred for a long time and most of the customers no longer exist, have no collateral or the assets have been processed but the principal has not been fully recovered. On the other hand, the debts are all related to the case so debt collection is very difficult.

2.1.4.4. Card services

Table 2.5: Number and sales of card types in 2018-2020


STT

Target

Unit

2018

2019

2020

1

Number of cards issued






- Domestic debit card

Card

2.255

3,489

4,258


- International debit card

Card

510

643

812


- International credit card

Card

216

415

639

2

Card usage turnover






- International debit card

billion

59

95

131


- International credit card

billion

46

61

125

(Source: Card business performance report for the period 2018 - 2020)


The branch is a bank that always holds a high position in terms of card performance indicators in the system. In the past 3 years, the number of cards issued and card usage turnover of the branch has continuously increased. Domestic debit cards with many advantages and utilities, not only used for cash withdrawals at ATMs, transfers within the system, fast interbank money transfers 24/7, but can also be used to pay service bills such as electricity, water, top up and pay phone bills, pay for airline tickets, etc.

2.1.4.5 Some other business activities

VPBank is considered one of the most prestigious banks in Vietnam in the field of foreign exchange, international payment and trade finance. VPBank Tran Hung Dao branch has truly become a reliable address for businesses operating in import and export in the area and nationwide.

With advanced technology and science platform as well as high expertise and experience in foreign exchange transactions, VPBank Tran Hung Dao branch develops a full range of diverse and rich services to meet the requirements.

of customers. About payment services : Many flexible payment services

via

crazy

okay

and the internet with security mechanisms​

successfully implemented by VPBank

contribute to increasing the number of customers coming to open a deposit account and making payments

food

porch

transaction now

Branches with an average growth rate of about 30%, bringing

big profit

2.2. Current status of policies and procedures for lending to corporate customers at VPBank Tran Hung Dao branch

2.2.1. Corporate customer lending policy

- Loan regulations for corporate customers

Principles of lending to business customers

VPbank's lending activities to customers are carried out according to the agreement between VPbank and the customer, in accordance with the provisions of the Law (including environmental protection law) and of VPbank.

Customers borrowing capital from VPbank must ensure that they use the loan for the right purpose and repay the principal and interest on time as agreed with VPbank .

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