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					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                                                                                        Profit bebore tax
           120,000.00
                                                                                                                       1,100     1,000.08

                        102,709                                                                                        1,000
           100,000.00
                                                                                                                        900
                                                                                                                                              754.04
                                                                                                                        800                             722.95
            80,000.00             74,962
VND mil




                                                                                                                        700




                                                                                                             VND mil
                                                                                                                        600                                       551.81
            60,000.00                                                                                                                                                      461.63
                                              51,821
                                                                                                                        500
                                                                                                                                                                                     397.32
                                                         44,512
                                                                                                                        400                                                                   327.77
            40,000.00                                             35,908
                                                                              32,970                                                                                                                      239.53
                                                                                          30,260                        300
                                                                                                    20,467
            20,000.00                                                                                                   200

                                                                                                                        100

                 0.00                                                                                                     0
                                                                                                                               ACB          ST B       EXB       T CB      MB       Dong A    VIB      Habubank
                         ACB      ST B        T CB       EXB       VIB        Dong A       MB      VPBANK




                                             Charted capital

            5,000.00
                          4,449


            4,000.00                 3,733



                                                                                                                       Techcombank is in the top 4 JSCBs
 VND mil




            3,000.00                          2,630       2,521


                                                                                                                       in terms of capital, assets and net
                                                                  2,364
                                                                              2,000                2,000
                                                                                         2,000
            2,000.00


            1,000.00                                                                                                   income.
                0.00
                         ST B     EXB         ACB       T CB      MB       Habubank    VPBANK      VIB                 At H2 2008.
Techcombank’s Rating
Financial Highlights

VND billions                          2006     2007       2008
                                                       9 months
Total Asset                          17,212   39,542     56,022

Deposit from Customer                 9,566   24,476     40,866

Profit before tax                      302      709        769

Equity                                1,680    3,573      5,568



The 2008’s figures are not audited
Trade Finance in Times of Tight Market Liquidity
Corporate Banking


                    SMEs                                           Large Corp



                High Margin                                        Low Margin

    High growth                                           Core industry               Established
                        Diversification
     Industries                                           State-owned                 relationship


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



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 bank’s 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
Techcombank’s 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           1,902
                        1,407                 Remittance
                                              Collection
1,500                                         L/C
                         100
                                             Millions USD
1,000     799    85

                        1,188
 500      44
                 888
          499

   0
         2006   2007    2008    (9 months)
Liquidity Management
Funding Base

60,000

                                       7,199
50,000                       6,165

                                       7,956
                   5,135
                             9,810
40,000
         4,830     9,780               10,155
                                                 Other assets
                             9,984               Interbank
30,000   10,500
                                                 Coprorates
                   9,787
                                                 Individuals

20,000   10,108                                  Billions VND
                                       30,711
                             25,861
                   21,513
10,000
         14,119



    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
                                              25,076
25,000



         20,188
20,000



                                                              Loans outstanding
15,000
                                                              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!

				
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