CHAPTER 3: BIG DATA OF BANKING INDUSTRY AND CONCEPTS
I. SITUATION OF EXIMBANK AND ITS BUSINESS
Established on May 24, 1989 under the decision No. 140/CT signed by the Chairman of the Council of Ministers under the name of VIETNAM EXPORT IMPORT BANK and being one of the first joint-stock commercial banks of Vietnam, the bank officially came into operation on January 17, 1990. On April 6, 1992, under license No. 11/NH-GP signed by the Governor of the State Bank of Vietnam, the Bank was allowed to operate with a term of 50 years and its charter capital registered at 50 billion VND (equivalent to USD12.5 million) and its name changed to VIETNAM EXPORT IMPORT COMMERCIAL JOINT-STOCK BANK (shortly called VIETNAM EXIMBANK). At present, Eximbank’s chartered capital is 8,800 billion VND. The bank’s owner’s equity is 13,627 billion VND, making it one of the largest commercial joint-stock banks by owner’s equity. Vietnam Export Import Commercial Joint Stock Bank has a nationwide network with its Head Office located in Ho Chi Minh City and 124 Branches in Ha Noi, Da Nang, Nha Trang, Can Tho City, Quang Ngai, Vinh, Hai Phong city, Quang Ninh, Dong Nai, Binh Duong, Tien Giang, An Giang, Ba Ria - Vung Tau, Dac Lac, Lam Dong and Ho Chi Minh city). VIETNAM EXIMBANK has established correspondent banking relationship with over 735 banks in 72 countries worldwide.
2. Organization of the bank
3. Development orientations
Eximbank will take advantage of market opportunities to maintain sustainable growth, consolidate and expand its customer base heighten the position and develop Eximbank into a modern join stock commercial bank at which all shareholders, investors, customers stay assured with their capital investment efficiency and safety. A bank that offers a wide range of high quality banking and financial products and services; and a brand name known to the banking and financial industry and making great contributions to the community and the society
4. Business activities
Products and services: With the motto of always keeping the leading position in reforming and diversifying the products financing, FX trading, and international settlement, Eximbank has been continuously studying to introduce to the market new products and services which can meet the demands of customers. The main operations Eximbank is currently offering include: Savings — Deposit, Credit, Guarantee, Financial services for overseas studies, FX/Gold trading, Card activities, Financial investment, Others (Monetary and financial consultancy, Account inquiries…)
5. Evaluation of the capacity and the quality of Eximbank's products and services
Overall evaluation: First established among commercial joint stock banks in Vietnam, Eximbank has become one of the biggest commercial joint stock banks. The image and brand name of Eximbank have become more and more widely known due to the Bank's development both in quantity and in quality. Eximbank's size has continuously been increased with high growth rate since early years of establishment. Eximbank has strengths in non-credit activities such as payment, guarantee, FXtrading, etc. of which payment and FX trading are two operations which Eximbank is especially strong at compared to other peers. To satisfy well the demand of its customers, Eximbank has identified that approaching and using modern banking technology is an important priority in its businesses. Eximbank is one of the first banks to participate in the electronic clearing system of the SBV and one of the first 3 banks of Vietnam to be granted membership by two leading card organizations in the world which are MasterCard and Visa and has since then received lots of positive comments from these organizations.
Eximbank is the first commercial joint stock bank to be selected to participate in "the banking modernization and payment system" organized by the SBV and financed by World Bank. The cooperation project between Germany and Vietnam is also cooperating with and supporting Eximbank in the area of internal auditing. In addition, correspondent banks such as Wachovia, Credit Suisse, etc. also regularly share their professional experience and knowledge with Eximbank through the short term training seminars these banks organize.
Based on its strengths, Eximbank has become one of the typical commercial joint stock banks in terms of turnovers and sales in Vietnam. Prestigious financial organizations in the world have very good impressions on Eximbank.Currently, Eximbank is attracting the interest of many local and foreign investors. In particular, some international financial institutions are very keen on supporting Eximbank in modern banking governance. With its qualified and experienced management board in the banking industry, and the achieve the target set strategies for which, Eximbank shall become one of the leading commercial joint stock banks in Vietnam.
Business results: Within the difficult and challenging business environment, the Board of Directors and the Board of Management have by their detailed instructions together with endeavors employee preserve the business stability of the bank:
ã Promoted the deposit and credit growth for larger market shares, while ensuring the prudent ratio in operations
ã Improve the Net Interest Margin
The business result of Eximbank in year of 2019
6. Development strategies
Eximbank has been rated as one of the professional banks in terms of information disclosure, enhancement of transparency policy and high efficiency in operation. The bank is also aware of the role of a business in information disclosure, especially when Eximbank has had its shares listed on the stock market. Therefore, Eximbank’s shares have drawn much attention and high appreciation of investors thanks to its liquidity and sustainable growth. During the past time, despite certain difficulties in the market as well as in the banking industry since the global financial crisis occurred and its aftermath lasted so far, Eximbank is not only confident to overcome challenges but also gradually affirms its position in the Vietnamese financial market.
From Eximbank’s perspective, that is the foundation of sustainable growth, especially in banking operation. Consequently, the annual report is regarded as a special publication which always receives the attention of the management of Eximbank and is self-made by the Bank in terms of both content and form. Specifically, as for the content, except
for the financial statements which are jointly audited by Eximbank and the audit firm, other contents are compiled and edited under a certain procedure with the Business Development Division being the coordinator. To produce an annual report with high- quality content, it is essential that the team of editors of Eximbank must understand the banking operation and understand the situation in the country and abroad to analyze and reflect the bank's activities.
Eximbank constantly improve the reporting system and perfect its operation in an effort to bring the fast and most accurate bank’s information to customers, shareholders, investors, etc. On the other hand, the information disclosure must be complete, accurate and timely in accordance with the laws, which reflects information transparency.
Therefore, Eximbank has set up its Investor Relations unit who is responsible for providing information as required for a listed enterprise by the competent agencies to ensure transparent and prompt information delivered to investors.
With the aforesaid policy, Eximbank has gradually asserted its position in the financial market since its business result always exceeds the set targets. Entering the market early, the management of Eximbank foresees certain difficulties in the context of surging inflation. Due to the tight and prudent monetary policy to control inflation, the credit growth rate this year is restricted under 20%.