Market and Competitor Analysis
Week 2 May 2014
Market and Competitor Analysis
Weekly Updated
ISSUER OF THE ANALYSIS:
Strategic Research & Analysis
Finance & Strategy Division
Address: Level 20, Techcombank
Tower, 191 Ba Trieu, Ha Noi
Tel: +84 4 3944 6368
Hoàng Quốc Đông
Director of Strategic Research & Analysis
Email: donghq@techcombank.com.vn
Tel: +844 39446368, Ext. 1243
Lưu Trung Nguyện
Analyst
Email: nguyenlt2@techcombank.com.vn
Tel: + 844 39336368 Ext: 1244
Nguyễn Thu Bình
Analyst
Email: binhnt9@techcombank.com.vn
Tel : + 844 39336368 Ext: 1247
Strategy and Corporate Development
OVERVIEW
 Total assets of the whole system increased by 123 trillion VND in
March 2014. Accordingly, total assets of the whole system as of 31/3/2014
was VND 5.8 million billion, an increase of 0.91% against year-end 2013.
After a strong decline in the first 2 months, total assets of the system has
recovered in March. However, financial statements of banks show that
many banks’ total assets strongly declined in quarter 1/2014. In particular,
total assets of CTG, VCB and EIB declined by 3.1%, 4.6% and 9.7%
respectively. Notably, EIB plans to reduce total assets by 24% to VND
130,000 billion in 2014.
 SBV designates to implement the pilot of the 4-party credit product.
This is phase 2 of the lending program, after SBV asked BIDV to collect
opinions from designated commercial banks at the end of April. With a
credit growth of about 1% in quarter 1, SBV is actively deploying many
preferential lending programs to push credit reach the growth target of 12%
this year.
 Banks are not actively pushing credit for prioritized sectors. According
to statistics of SBV in HCMC, as of the end of quarter 1/2014, total
outstanding loans in the area for businesses of 5 prioritized sectors were
VND 135 trillion, only accounting for 14% of total outstanding loans.
Instead, commercial banks are pushing credit for individual loans. This
suggests that commercial banks are having difficulty in lending at low
interest rates in the context of poor business performance and high NPLs
ratio at the moment.
 Total assets of Eximbank declined sharply in quarter 1/2014. This is
due to the bank has reduced sharply its activities on Market 2. Meanwhile,
MBB remains the leading position in both total assets and PBT. Besides,
STB makes a strong impression by maintaining the high growth
momentum in all criteria.
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Week 2 May 2014

DEVELOPMENTS OF MARKETS AND POLICY

Total assets of the whole On May 12th, SBV announced the business performance of the whole
system increased by 123 banking system by the end of March 2014 with notable contents as
trillion VND in March 2014 follows:
(i) By the end of March 2014, total asset of CIs system reached VND 5,808
billion, an increase of 0.91% compared with the end of 2013; meanwhile,
the equity capital increased by 0.64%
Items
Vnd’s bil 31/12/13 31/3/2014 %Vs 31/12/13
Total assets 5,755,869 5,808,328 0.91%
Shareholders' equity 466,926 469,933 0.64%
In particular, asset of SOBCs increased significantly by 0.83% in compared
with the end of 2013 instead of plunged by 1.97% in end of February; total
asset of JCBs only decrease by 0.06% in compared with the end of 2013 from
the decrease of 2.33% in February.
Total assets
Vnd’s bil 31/12/13 31/3/2014 %Vs 31/12/13
SOCBs 2,504,871 2,525,580 0.83%
JCBs 2,463,445 2,461,845 -0.06%
(ii) Capital Adequacy Ratio of total system was 13.54%, slightly increased
compared with year-end 2013
CAR 31/12/13 31/3/2014 %Vs 31/12/13
Whole sector 13.25% 13.24% -0.01%
SOCBs 10.91% 10.84% -0.07%
JCBs 12.56% 12.12% -0.44%
(iii) Loan to Deposit Ratio of total system was 83.64%, decreased 1.07%
compared with the end of 2013. In particular, LDRs of SOCBs and JSCBs
decreased by 2.50% and 1.37% respectively.
LDR 31/12/13 31/3/2014 %Vs 31/12/13
Whole sector 84.71% 83.64% -1.07%
SOCBs 94.62% 92.12% -2.50%
JCBs 75.20% 73.83% -1.37%
SBV designates to On May 12th, the Governor of SBV issued document No 3128/NHNN-TD
implement the pilot of the 4- assigning 8 JCBs to implement pilot on 4-party connection credit product,
party credit product including: BIDV, Vietinbank, Vietcombank, Agribank, MHB, VNCB,
LienVietPostBank, SHBank. Accordingly, the main purposes of this program
are:
(i) Contribute to solve the difficulties for the real estate market, boost
consumption in real estate inventory and inventory of building materials;
(ii) Help enterprises having overdue debts can borrow capital, solve the
difficulties about capital for construction projects to continue to have
investment, restrict unfinished projects, help projects to have enough
capital for implementation, meet the completion schedule and ensure
construction quality;

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 Market and Competitor Analysis
Week 2 May 2014

(iii) Enhance cooperation and coordination among CIs in cash flow control,
ensure borrowing capital used with right purpose, increase credit quality
and decrease bad debt in banking operation.
Banks are not actively On May 12th, at the meeting between National Assembly delegation of
pushing credit for HCMC, SBV in HCMC and CIs in the area, some notable information was
prioritized sectors shared as follows:
(i) About mobilizing and lending activities of CIs as of 30/4/2014:
- Total mobilized capital was estimated at VND 1,188 trillion, an
increase of 1.47% against year-end 2013
- Total outstanding credit was estimated at VND 965 trillion, an
increase of 1.27% against year-end 2013. However, total credit for
businesses of 5 prioritized sectors was VND 135 trillion, equivalent
to only 14% of total outstanding loans
(ii) In the first 3 months, CIs handled 3,534 billion of bad debts, of which
487 billion sold to VAMC. As of 31/3/2014, total non-performing loans
in the area were 46,403 billion, equivalent to 4.85% of total outstanding
loans.
(iii) 14/14 banks which have headquarters in HCMC have submitted
restructuring plans. In particular:
- The SBV Governor has approved the restructuring plans of 11 banks,
namely: SCB, Navibank, Eximbank, ABBank, SaigonBank,
NamAbank, VietcapitalBank, OCB, ACB, DongAbank and
VietABank
- 3 banks have not been approved, namely: Sacombank, HDBank và
SouthernBank
Updates on business performances of competitor banks in quarter 1/2014
Absolute
+/- year % year
Items value Banks 31/3/2013
beginning beginning
ranking
1 MBB 181,206 2,421 1.4%
2 ACB 172,553 6,262 3.8%
Assets 3 STB 167,693 7,523 4.7%
4 TCB 162,250 5,066 3.2%
5 Exim 153,457 (16,543) -9.7%
1 ACB 148,034 6,365 4.5%
2 MBB 147,529 8,854 6.4%
Deposits 3 Sacom 141,523 9,595 7.3%
4 TCB 128,176 2,980 2.4%
5 Exim 79,272 (7,985) -9.2%
1 Sacom 111,672 3,824 3.5%
2 ACB 105,878 (301) -0.3%
Loans 3 MBB 88,488 (1,735) 0.3%
4 Exim 81,619 235 -2.1%
5 TCB 71,857 1,582 2.3%
1 MBB 752 - -
PBT 2 Sacom 750 - -
3 TCB 566 - -

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 Market and Competitor Analysis
Week 2 May 2014

4 Exim 444 - -
5 ACB 140 - -

INFORMATION ON PROGRAMS, PRODUCTS, NETWORK…OF TCB AND COMPETITORS

From 15/5/2014, Techcombank deploys a preferential lending program for all
car types of Huyndai Thanh Cong nationwide with notable information as
follows:
- Target: Customers having demand to buy Huyndai car
- Limit: up to 75% car value
- Tenor: up to 84 months
- Monthly repayment amount: minimum 5 million VND
- Preference: waive fee for repayment before due date in the first 06 months

From April 8th to December 31st 2014, ACB deploys a program named
“Preferential Lending for Loyalty Customer” with notable information as
follows:
- Target: Personal customers have had loans in ACB and are Blue Diamond
Members
- Interest: 9.5%/year
- Loan purpose: consumer finance; house purchase; build/repair house; car
purchase and other unsecured credits

From May 7th 2014 to February 28th 2015, BIDV implements 1000-billion
VND preferential credit package with notable information as follows:
- Target: individual customers/household businesses in Mekong Delta
- Loan purpose: purchase rice/agricultural product and do business in
agricultural materials
- Interest rate: 7%/ year in the first 3 months, then apply the interest rates of
agricultural area based on BIDV’s regulation.
- Other preferences: Waive/reduce fee for some service packages such as
BIC, BIDV Online, BIDV Mobile, BSMS,...
Other banks On May 14th, Thien Thank Corporation and VNCB launched “Linking Chain
for house repair and building in long term payment” to deploy the
application and bring 4-party link chain into practice
- Scale: approximately 10,000 billion VND
- Purpose: meet the capital demand, add capital for the main contracts to
pay for construction material and labor cost for subcontractors

From May 5th 2014, PVcomBank deploys a house lending for personal
customers with notable preferences as follows:
- Target: individual customers
- Total credit: 1,500 billion VND
- Interest rate: from 6%/year in the first 6 months
- Tenor: up to 20 years

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Strategy and Corporate Development