I. VietCombank Introduction.

Vietcombank (VCB): Joint Stocks commercial bank for foreign trade of Vietnam.
VCB is a large commercial bank in Viet Nam, established in1963. It’s successfully
launched an initial public offering (IPO) in 2007 and officially became the
Commercial Bank for Foreign trade of Vietnam in 2008. An mergers and
acquisition (M&A) deal in 2011 made Mizuhi corporate bank its trategic partner.
With 15% ownership. VCB provide products and services covering commercial
banking, investment banking and fund management.
II. Key Ratios:
Profitability 2019 2020 2,021

P/E 18.06 19.68 13.33

ROE 25.88 21.11 21.35

ROA 1.61 1.45 1.60

Net interest margin 3.31 2.92 3.22

Non interest income/ operating
income 24.39 26.04 25.25

Pre- Prevision Operating/ Equity 41.82 36.68 35.02

Cost-to-income ratio 34.60 32.70 31.00

Quality 2019 2020 2,021

Loan to deposit 79.14 81.37 84.62

Loan loss reserve coverage
( Provision/ NPL) 179.50 368.00 424.36

NPL ratio 0.79 0.62 0.64

CAR 9.60 9.56 9.47

Credit cost 0.99 1.27 1.31

III. Analysis according to the Camels model
A. In 2020
Capital Adequacy:
CAR : 12.14%
Equity/Asset : 7.09%
 The CAR is 12.14%, well above the 9% minimum safety margin.
 Equity/Assets ratio is 7.09%, higher than the banking industry average of
6.53%.
Asset Quality:
NPL : 0.62%
LLR : 368%
 The NPL in 2020 was 0.62 in the top lowest banks in VN, lower than the
threshold set by the State Bank of 3% and theinternational standard of 1.5%.
 The highest LLR rate in the industry (368%). This helps VCB to be more
flexible in reducing provisioning and can increase revenue imported during
2021-2022 without loss of asset quality.
Management:
Cost-to-income : 32.7%
 Cost to income ratio (CIR) belongs to the lowest group among banks, with a
rate of 32.7% at the end of the year
2020 => effectively controlcost.
Earnings:
Net interest margin : 2.92%
Return on Assets : 1.45%
Return on Equity : 21.11%
 NIM reached 2.92% in 2020,lower than 0.4% compare to 2019.
 ROA is 1.45%, higher than the average of banking group at 1.36%.
 ROE rate in 2020 reached 21.11%, ranked 2nd in the whole industry, 14%
higher than the industry average which show how effective use of equity
with the 2nd highest ROE in the industry.

Liquidity:
Loans to Debt : 81.37%
 The bank's LDR is relatively low, reaching 81.37%, showing the ability to
meet liquidity and expand credit demand in the coming period. High
liquidity when there is idle mobilized money, ready to meet the increasing
 demand for loans.

B. In 2021:
Capital adequacy

CAR: 9.31%

 8% higher than Basel II standards

Assets:

NPL: 0.64%

LLR: 424.36%

 NPL ratio dropped to 0.64%

 The high LLR ratio allows VCB more flexibility in reducing provisions and
thereby boosting profitability in the year 2022 without degrading the bank's
asset quality.
 VCB's bad debt coverage ratio (LLR 424%) is the highest in the industry, by
increasing provisions in 2021, this is a prudent strategy considering the
impact of the pandemic on asset quality.
Management:
CASA: 35.7%
CIR: 30.98%
 CASA ratio reached 35.7% as of December 31, 2021 ranked third in the
industry (after Techcombank and MBB) with a CASA balance of VND 405
trillion.
 CIR tends to decrease over the years, showing that the bank is managing
costs better and better to maximize profits.
Earnings:
NIM: 3.17%
ROA: 1.45%
ROE: 21.59%
 NIM slightly increased from 2.92% in 2020
 At the end of 2021, Vietcombank's return on equity (ROE) was 21.59%, a
slight increase compared to the same period in 2020 of 21.11%. But in
general, from 2018 to 2021, there is a decrease because banks increase
equity capital to increase credit.
 Liquidity:
LDR 84.62%
 Vietcombank maintained liquidity on an upward trend with its loan-to-
deposit ratio (LDR) reaching 84.62% at the end of 2021 and this ratio being
only 78.79% in 2018 due to increasing credit growth.
Sensitivity:
Vietcombank's real estate lending activities are still limited due to the policy
of tightening real estate credit, then the outstanding loans for real estate will
slow down, affecting the profitability of the banking industry. especially
when NIM real estate loans are high.

Inflation pressure increased and escalated due to the impact of the epidemic
and the increase in oil prices when under the impact of the Russia-Ukraine
war. Indirect impact on the consumption capacity and development of the
economy.

C. In 2019
Capital adequacy:
CAR: 9.6%

Assets:

NPL: 0.78%

LLR:

Management:
CASA: 30%
CIR: 34.6%

Earnings:
NIM: 3.31%
ROA: 1.61%
ROE: 25.88%
Liquidity:
LDR 79.14%