Explanation about the meaning of finger print

Scientists have proved that the finger print of each person is unique, unchanged and can be identified for differences. On the basis of such differences, finger print is used in replace of signatures in important documents to affirm the responsibility of each person. Moreover, with modern science and technology, finger print identification methods widely applied in security systems for not only enhancing safety but also being a development trend of future technology. Accordingly, with a finger print image the key design concept of the 2011 Annual Report, Sacombank wants to express its own hallmark through proud achievements for 20-years development, and also confirms its commitments to the sustainable secured banking operation and toward to the top modern and high-technology bank in the region.

ContEnt

03
MESSAGE 02 03 05 07 09 Major financial indicators Mission - Vision - Core values General information Message from the chairman of the Boad of Directors Words of gratitude

31
REPORTS 33 35 37 43 45 47 51 Report of the Board of Management Report of the Board of Supervisors Report of the Board of Directors Performance results of subsidiaries Credit rating results Objectives and plans for 2012 Strategic orientation for 2011 - 2020 period

11
20 YEARS INNOVATION AND DEVELOPMENT 13 15 17 Incorporation and development Historical milestones 2011 event highlights

53
CORPORATE GOVERNANCE 55 57 59 63 65 67 73 Human resources management Techonology management Financial management Network development Risk management Information for shareholders Social responsibility

21
ORGANIZATION 21 23 27 29 Organization chart Introduction to the Board of Directors Introduction to the Board of Supervisors Introduction to the Board of Managements

77
FINANCIAL STATEMENTS 79 Single entity financial statements 88 Consolidated financial statements 161 Distribution network

ANNUAL REPORT 2011

MAJOR FINANCIAL INDICATORS (in VND billion) Year-end Total Assets Equity Capital Chartered Capital Total Deposits Total Loans Entire Year Total Income Total Expenses Profit before tax Profit after tax Earnings per share (VND) (Based on the Consolidated Financial Statement) Financial ratios Capital Adequacy Ratio (CAR) (at least 9%) Loans/Assets Loans/Deposits Non-performance Loan (NPL) Overdue Debts/Outstanding Loans Non-interest income/Total operating income Operating expenses/Total expenses Earnings assets/Total assets Return on Equity (ROE) Return on Assets (ROA) 12.16% 50% 57% 0.62% 0.996% 57% 15% 82% 13.14% 1.49% 11.41% 56% 64% 0.69% 0.88% 41% 22% 85.00% 16.56% 1.79% 9.97% 54% 61% 0.52% 0.56% 30% 19% 85.64% 15.04% 1.50% 11.66% 57% 71% 0.56% 0.85% 16% 21% 84.36% 14.60% 1.44% 8,377 7,286 1,091 973 1,896 8,489 6,588 1,901 1,484 2,771 12,774 10,348 2,426 1,799 2,373 18,729 15,989 2,740 2,033 2,241 67,469 7,638 5,116 58,635 33,708 98,474 10,289 6,700 86,335 55,497 141,799 13,633 9,179 126,204 77,486 140,137 14,224 10,740 111,513 79,429 2008 2009 2010 2011

ANNUAL REPORT 2011

Mission
To maximise value for customers, investors and staff and uphold our highest commitment to corporate social responsibility.

Vision
To be the first modern multi-functional retail bank in the region.

Core Values
Pioneering Sacombank will lead or initiate new growth areas when faced with challenges. Novel, Dynamic and Innovative Sacombank believes that change is a constant and is also the force of development. The Bank must adopt new and creative thinking that will dynamically transform challenges into opportunities. High Commitment Sacombank commits that all staff will continuously improve, by means of training and development, to ensure that they consistently exercise professionalism in providing the highest service quality to its customers and partners. Making a Difference Sacombank believes in making a difference in all aspects of its operations thereby creating optimal competitive advantage. Social Responsibility Sacombank lives by its slogan of Serving the nations and that corporate social responsibility is deeply embraced by every staff member.

ANNUAL REPORT 2011

ANNUAL REPORT 2011

SACoMBAnK PRoFILE
GENERAL INFORMATION
Vietnamese name English name Abbreviated name Date of incorporation Charter capital Head office Telephone Fax Email Website SWIFT code Tax code : : : : : : : : : : : : Ngn hng Thng mi C phn Si Gn Thng Tn Saigon Thuong Tin Commercial Joint Stock Bank Sacombank 21 December 1991 VND10,739,676,640,000 (as at 31 December 2011) 266-268 Nam Ky Khoi Nghia Street, District 3, HCMC +848 39 320 420 +848 39 320 424 info@sacombank.com www.sacombank.com.vn SGTTVNVX 0301103908

A PIONEER AMONG VIETNAMESE BANKS

n n

The first bank listed on the stock exchange of Vietnam. The first Vietnamese bank to expand internationally, establishing a branch in Laos and a subsidiary bank in Cambodia. The only Vietnamese bank to initiate banking models exclusively for women (8 March Branch) and for the Chinese-speaking community (Hoa Viet Branch). The first Vietnamese bank to receive sponsored capital contributions and technical assistance from international financial institutions including IFC, ADB, Proparco and FMO,

The first Vietnamese commercial joint stock bank to build and launch an international-standard Data Center (in 2008). The first Vietnamese commercial joint stock bank to conduct a comprehensive restructuring (in 2002) and apply international accounting standards in financial reporting and analysis (in 2004). In 2011, Sacombank was recognised by the world community through numerous prestigious awards:

Best Retail Bank of Vietnam

Best Foreign Exchange Provider in Vietnam in 2009, 2010, 2011

Best Cash Managing Bank

Best Corporate Governance and Investor Relations Bank in 2011

Best International Payment Bank

Bank of The Year 2011

ANNUAL REPORT 2011

MESSAGE

4 3 1

REGION Domestic 1 2 3 4 5 6 7 8 9 HCMC Hanoi South Western South Eastern Northern Central Coastal Southern Central Coastal & Central Highlands Northern Foreign Cambodia Laos TOTAL

BRANCH 71 17 8 14 6 7 9 10 5 4 1 76

TRANSACTION OFFICE 331 97 33 71 36 34 33 27 1 1 332 408

ATM 763 240 72 164 66 72 76 73 7 5 2 770

POS 1,803 950 291 129 56 216 114 47 1,803

6

ANNUAL REPORT 2011

MESSAGE FRoM tHE CHAIRMAn oF tHE BoARD oF DIRECtoRS

TO SHAREHOLDERS, INVESTORS AND STRATEGIC PARTNERS

Dear shareholders, investors and strategic partners,

For Sacombank, 2011 was an important transitional year. Following a restructuring process that began ten years ago, 2011 saw the Banks successful completion of the development of a sound banking architecture in accordance with international standards. At the same time, Sacombank put in place the framework needed to achieve its goal of becoming a leading retail bank in the Indochina region within the next 10 years. This historic mission takes place in the context of the slow recovery of the world economy, signs of double economic depression in Europe, high inflation in Vietnam, and the continued stagnation of our countrys young stock exchange. Despite such great challenges, Sacombank in 2011 drew upon its skilled managerial staff at all levels, and its deep understanding and strict implementation of the Governments Resolution 11 on monetary tightening to control inflation, to fulfill the achievement of the Banks 2001-2010 business objectives, and receipt of a Third-Class Labor Order from the State President on the occasion of the Banks 20th anniversary. This is a firm foundation and good preparation for the grand voyage the Bank will embark upon in the next 10 years. Nonetheless, the Board of Directors is aware that a constant focus on adaptability and competitiveness is needed, due to the changes brought by rapid globalisation, the inherent weaknesses of the countrys economy in general, and the

ANNUAL REPORT 2011

MESSAGE

shortcomings of intensive concentration of resources for market expansion by each enterprise in particular. Sacombank is no exception to these facts. We must, therefore, recognise the Banks weaknesses and shortcomings, and then rethink, redesign and reconstruct its architecture, including its institutional structure, people and technologies. In implementing the business plan for 2012, and in the context of continued stagnation of the stock market, we will face numerous difficulties and challenges. However, we have numerous strengths to work with, including a strong network of Branches, Centers, Subsidiaries and a Subsidiary Bank across the Indochina region; nearly ten thousand skilled and dedicated employees; a sound operating platform connecting advanced business and management processes based on the current modern T24/R11 core banking system; and lastly, a thirst for learning and a strong will to adapt and grow. While aware of the Banks inherent shortcomings, we are fully confident in our ability to turn challenges into opportunities and to comprehensively fulfill the objectives and tasks set out for this year and the whole 2011-2015 period. The extreme difficulties and risks in the current market have spurred the Board of Directors to carefully reconsider the balance between STRENGTHENING and DEVELOPMENT of the business and the focus at the current time is STRENGTHENING. Likewise, we must balance SAFETY with EFFICIENCY, where SAFETY is a focus. With this in mind, we have determined that the 2011-2020 period will see us concentrate on in-depth investments rather than extensive developments, and we will strive to add, increase, properly allocate and efficiently use resources; promote to the highest extent core capabilities; strictly and effectively implement the Banks restructuring plan within the framework of the Governments and the State Bank Governors policy on commercial bank restructuring, focused on asset restructuring. The ultimate goal is a financial structure with an optimal financial model in accordance with international standards and best practices, and ensuring operational safety, efficiency, and sustainable development. The Board of Directors looks forward to continued sympathy, sharing, support, cooperation and encouragement from our shareholders, investors and strategic partners. We consider this as a firm mainstay and a motivating force for us to confidently fulfill the business objectives and tasks for 2012, contributing to the development of a sound commercial banking system in Vietnam and completing the critical mission of a commercial bank in the development of the country of Vietnam towards wealth and prosperity. Yours faithfully,

On behalf of the Board of Directors

Dang Van Thanh Chairman

ANNUAL REPORT 2011

WoRDS oF GRAtItUDE

Among the strongest forces driving Sacombanks development over the last 20 years to become one among the few strong commercial joint stock banks of Vietnam are the Banks highly motivated staff; the strong support from shareholders; the love, trust and loyalty of customers; and the leadership and great assistance from officials of the central and local regulatory agencies, the mass media, etc. All these have combined to create a great foundation for Sacombank to grow confidently and sustainably.

Nowadays, Sacombank is considered a pioneer among commercial joint stock banks in Vietnam, being the first to reform its operations, expand its market and cooperate with international strategic partners. Among the strongest forces driving Sacombanks development over the last 20 years to become one among the few strong commercial joint stock banks of Vietnam are the Banks highly motivated staff; the strong support from shareholders; the love, trust and loyalty of customers; and the leadership and great assistance from officials of the central and local regulatory authorities, the mass media, etc. All these have combined to create a great foundation for Sacombank to grow confidently and sustainably. Sacombank would like to extend its gratitude to 70,000 existing shareholders and investors. Many of these friends have been with Sacombank from the very challenging start-up days, and others have supported and trusted in Sacombank since the Bank issued shares publicly in 1997, through its listing on the Hochiminh City Stock Exchange in 2006 under the ticker STB, and up to now.

We would like to extend a special gratitude to our domestic and foreign strategic shareholders, who have actively supported us in terms of technology, capital resources, management expertise and technical support in areas like risk management. This support has formed the basis for Sacombanks great advances to catch up with the worlds financial and monetary industry standards Sacombank would like to celebrate its nearly 10,000 current staff members as well as generations of staff during the past 20 years, who have made constant contributions to the development of the Bank. We would like to celebrate the committed founders; the skilled and visionary leaders; the experienced and dedicated Board of Management; the capable managers as well as the loyal and diligent staff members who have supported the Bank with their service over the years. All have gathered together to create an extraordinary positive force. They have combined to give Sacombank a rich corporate culture that has been refined over 20 years and handed down from generation to generation. Sacombank would like to thank you for such precious contributions, which are significant intangible assets that drive the growth and development of Sacombank now and in future.

ANNUAL REPORT 2011

From the left, Mr Dang Van Thanh - Chairman of the Bank shows gratitude to committed founders: Mr Nguyen An Chuyen, Mr Phan Thanh Da, Mr Ta Quang Van, Mr Vo Dinh Bien on the Sacombank 20th years anniversary celebration.

Sacombank would like to thank the 1,335,000 individual customers and 60,000 corporate customers and partners that have trusted our financial products and services, and have accompanied Sacombank for 20 years. We would like to sincerely thank our customers for their loyalty and trust, and for electing Sacombank as the Best Products and Services Provider in 2011.. We understand that our customers are the strictest teachers and the most loyal friends that help Sacombank to mature as an enterprise and strive to lead the market in launching quality products and services, and adding value to the lives and businesses of millions of customers across Indochina.. Sacombank would like to express its deep gratitude to Ministries and ministerial agencies; the State Bank of Vietnam; the Peoples Committee of HCMC and cities under central authority; the Peoples Committees of provinces countrywide; authorities in Laos and Cambodia; the State Securities Commission; the HCMC Stock Exchange; the Hanoi Stock Exchange; the Securities Depository Center; and other authorities that have given instructions, monitoring, supervision and strong support to Sacombank for the past 20 years. Sacombank would like to deeply thank the mass media broadcasters, editors and reporters who have communicated information on the business activities of Sacombank to the public and to domestic and overseas markets. Sacombank views the mass media as a mirror with which to look at itself, and is always willing to listen to positive and negative feedbacks from the public. We are very grateful for the opinions, cooperation and encouragement from the press and the public.

ANNUAL REPORT 2011

10

20 YEARS INNOVATION AND DEVELOPMENT

In early 1990s, in the context of the credit crisis, Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) was incorporated on the basis of merger and combination of the four most stable credit institutions at that time. With the ambition for forming a new banking model heading for a sustainable career, Sacombank overcame many challenges, constantly innovated for adaptation (1991-2000), made constant efforts for reaching higher and further (2001-2010), and has affirmed its position as the top commercial bank in the financial market of Vietnam and the region (2011-2020).

After 20 years of development, Sacombank has been matured in various aspects, growing from the initial VND3 billion of charter capital to VND10,740 billion today , and from 100 first employees to a strong workforce of 10,000 successive employees of skills and passions. Sacombank is currently one of the top commercial banks of Vietnam with a wide network of 408 transaction offices in all over Indochina, and relationships with 14,721 agencies under 811 banks in 86 countries and territories in the world.

time impression

InCoRPoRAtIon AnD DEVELoPMEnt

SACOMBANK - STRENGTHS OF A 20-YEAR-OLD YOUNGSTER
Coming into existence in the midst of challenges (1991-1995)
In the early 1990s, in the midst of the credit crisis, the State Bank of Vietnam gave permission for Go Vap Economic Development Bank to merge with three credit cooperatives: Tan Binh, Thanh Cong and Lu Gia, to form Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) on 21 December 1991 with a charter capital of VND3 billion. Sacombank was one of the first commercial joint stock banks to be incorporated in Vietnam. This creation of an open market to boost the banking service sector was an important step in terms of contributing to the general development of the economy and represented an important reform by the State Bank of Vietnam. Born during the transitional stage of the countrys emerging economy, when the credit market was volatile and Vietnam did not yet have a modern finance and banking sector, Sacombank was a pioneer in the banking business, succeeding through a process of self-help, self-learning and self-adjustment. During this period, Sacombank achieved some of its key objectives in terms of restructuring its systems and organisation by improving the performance of the apparatus and systematically eliminating the limitations of the old framework. As a result of these efforts, the Bank enjoyed high growth effectiveness, lowering the ratio of bad debts, ensuring safety in capital regulation, basic interest rate; and ensuring the quality of credit, accounting, audits and controls. at a par value of VND200,000 per share. This initiative and effort yielded results that were beyond expectations for Sacombank. The unprecedented fund raising campaign in Vietnam was a tremendous success with over 9,000 shareholders contributing capital through the purchase of shares. Sacombank became the first public commercial joint stock bank in Vietnam. This was considered a unique case in the Vietnamese finance-banking sector at the time and paved the way for other strong capital raising opportunities with the involvement of foreign partners. Through this initiative, Sacombank became a pioneer in the diversification of ownership through equitisation, and the improvement of capabilities to attract capital and opportunities for cooperation with experienced foreign investors who are financially strong. This opened up a period of management under an equitisation framework, eliminating non-transparency and focusing on long-term objectives and strategies. During this period, Sacombank built a firm and stable foundation and started to show the stature of a modern bank ready for global integration.

Rising higher, going further (2001-2005)

With a somewhat radical viewpoint for the time, Sacombank saw international cooperation as an indispensable component for Vietnamese enterprises in their efforts towards global integration. Sacombank started to cooperate with big international partners as early as 2001. The first international organisation with which Sacombank cooperated was Dragon Capital, a subsidiary of the financial group Dragon Financial Holdings (United Kingdom). This paved the way for later capital contribution by the International Financial Company (IFC) and ANZ Bank. With the involvement of foreign strategic partners, Sacombank received support in relation to information technology, risk management, human resources training and development and banking corporate governance in accordance with international standards. In June 2004, Sacombank signed a contract for launching the T-24 Core Banking System with TEMENOS (Switzerland), which started the Banks process of banking technology modernisation during the economic integration. The T-24

Pioneer in innovation (1996-2000)

In a new open economy like Vietnams during the period of 1996-2000, capital resources for development were in urgent need. For commercial joint stock banks in particular, capital increase was a vital requirement for meeting business needs, and the question of how and where to raise capital that was a secure and safe financial resource was a significant challenge for all banks. In this context, Sacombank was also always hungry for capital and the capital shortage created an onerous pressure on the Banks business activities. Faced with these circumstances, Sacombank turned challenges into opportunities by convincing the regulatory agencies to allow it to issue shares to the public
13
ANNUAL REPORT 2011

Core Banking System helped Sacombank gain access to advanced banking technologies to serve the financial and monetary market needs while at the same time increasing its professionalism in a fast growing economy. By the end of the period of 2001-2005, Sacombank had risen to the top position in the commercial banking sector in Vietnam with a broad network of branches in 31 out of 64 provinces and in cities nationwide. All these encouraging achievements gave Sacombank more confidence in promoting its core strengths to fulfill objectives and tasks during the period of 2006-2010. Sacombanks aim was to become the first modern multi-functional retail bank in Vietnam.

Affirming its position (2006-2010)

During the period of 2006-2010, Sacombank focused on implementing four groups of solutions: (i) increase of financial capacity, (ii) expansion of the business network, (iii) modernisation of the banking technology, (iv) development of quality human resources in order to be fully equipped for global integration and to keep pace with the growth in the worlds finance-banking sector. In addition to the increase of financial capacity through the issuance of shares on the stock exchange in 2006, during this period, Sacombank implemented its strategy of cross-border expansion of its network. Identifying the opportunities and importance of the two strategic markets of Laos and Cambodia, Sacombank was one of the first commercial joint stock banks of Vietnam to open branches in these two neighboring countries. This gave the Bank a strong foothold to affirm its position as a modern Vietnamese retail bank in the Indochinese region. Coming into the third decade of its development, Sacombank has prepared plans, solutions and scenarios for its new journey, supported by renewed strength and confidence in its ability to overcome difficulties. Having experienced three financial crises in Vietnam, the region and the world in only two decades, and with its policy of safe operation, efficient business and sustainable development, Sacombank is extremely confident about the next five years, and is well on its way to achieving its goal of becoming the top retail bank in Indochina.
ANNUAL REPORT 2011

14

HIStoRICAL MILEStonES
21 December 1991: Sacombank was one of the first commercial joint stock banks to be incorporated in Ho Chi Minh City through the merger of Go Vap Bank for Economic Development and three credit cooperatives: Tan Binh, Thanh Cong and Lu Gia Cooperatives. 1993: Sacombank opened its Hanoi Branch, creating significant opportunities for growth in the northern Vietnamese market. As the first commercial bank in HCMC to have a branch in the capital city, Sacombank was a pioneer in providing quick money transfer services between Hanoi and HCMC, reducing the use of cash between the countrys two biggest economic hubs. 1995: Sacombank established an advanced management model working on a regular basis (referred to as the Permanent Committee of the Board of Management) to give direct instructions and supervision, institutionalise managerial principles step by step and control all aspects of the Banks operations. 1996: Sacombank issued shares vat a par value of VND200,000 per share to the public to raise capital. 1997: Sacombank was the first bank to establish credit groups outside its urban market coverage (where no Sacombank Branches were based) to meet capital needs in rural communities and contribute to the improvement of the living conditions of farmer households and the reduction of usury in the economy. 1999: Sacombank opened its headquarters building at No. 278 Nam Ky Khoi Nghia Street, District 3, HCMC. It was the first spacious and sizeable head office building of a commercial joint stock bank at that time. This event marked a turning point in Sacombanks confidence and led it to make greater advancements in its foreign operations.. 2001: Sacombank received investment capital from foreign shareholders. The first foreign shareholder was the financial group Dragon Financial Holding (UK), which contributed 10% of the charter capital. This was followed by capital contribution from the International Financial Company (IFC) and ANZ Bank, raising the foreign shareholders capital to 30% of the charter capital. Hence, Sacombank received assistance in relation to managerial experience, banking technology, risk management, human resources training and development from its strategic shareholders at an early stage. 2002: The diversification of Sacombanks financial services products started with the incorporation and operation of Sacombank Asset Management Company (Sacombank-SBA). This was followed by the incorporation of other companies specialising in the money remittance sector (Sacombank-SBR), finance lease sector (Sacombank-SBL), and the gemstones and jewelry sector (Sacombank-SBJ) in order to meet the increasingly diverse demands of customers.
15
ANNUAL REPORT 2011

20 YEARS INNOVATION AND DEVELOPMENT

2003: Promoting international cooperation, Sacombank was the first Vietnamese enterprise to be allowed to incorporate the VietFund Management Company (VFM), a joint venture between Sacombank and Dragon Capital. 2004: Sacombank launched its core banking system through cooperation with Temenos Company (Switzerland). This investment marked Sacombanks commitment to improving management and operational quality, promoting electronic banking services and being ready to approach the new-generation advanced banking technology in order to optimise banking operations. 2005: Sacombank opened a banking model for women. This was the first exclusive banking model for women in Vietnam, and was set up by Sacombank for the development of modern Vietnamese women. 2006: Sacombank was the first commercial joint stock bank of Vietnam to be listed on the stock exchange with total listed shares valued at VND1,900 billion. The listing of Sacombanks shares (trading symbol STB) on the Stock Exchange of HCMC is evidence of Sacombanks prospects for development, and safe and sustainable growth. 2008: Sacombank opened a branch in Laos and started its market expansion plan across the Indochinese region. Sacombank was the first Vietnamese commercial joint stock bank to open a branch in Laos, contributing to the promotion of Vietnam-Laos commercial and investment cooperation relationships. Following the success of the Lao Branch, on 23 June 2009, Sacombank continued to expand its operations into Cambodia, marking the completion of its market strategy in Indochina. 2009: Sacombank completed its Core Banking System upgrade from Smartbank to T24, version R8 over its entire system, and opened and put into operation the first international-standard modern Data Center among the commercial joint stock banks of Vietnam in 2008. The application of this new banking technology by Sacombank was aimed at supporting its development strategies in the new period as well as the development of an advanced banking technology infrastructure; the improvement of corporate governance, management and sustainable development capabilities; the development of diverse banking services, and the promotion of non-cash payments; risk management and the enhancement of the confidentiality of the banking information system. 2010: Sacombank successfully completed its development strategies for 2001-2010, achieving an average growth rate of 64% per annum.

ANNUAL REPORT 2011

16

2011 EVEnt HIGHLIGHtS

1. 22 February 2011 Sacombank opens Phu Tho and Thai Nguyen Branches In order to expand its network as well as to increase its market share in the North, Sacombank put into operation the two Branches of Phu Tho and Thai Nguyen. Through taking this initiative, Sacombank has been able to better understand the financial demands of enterprises and individuals, launch specific products and services, bring in business opportunities and assist people in trade villages to increase incomes, and contribute to the development of new and prosperous rural communities in accordance with the Governments policies in the new development period 2. 3 March 2011 - Sacombank opens Sacombank Imperial Asset Management Service Center With the aim of business expansion, diversification of products and services targeting the high-end segment and specialisation, as well as keeping up with the general development trends of the financial sector in Vietnam and the world, Sacombank set up Sacombank Imperial Asset Management Service Center, located on the 11th floor of the Sacombank Building at 266 268 Nam Ky Khoi Nghia Street, District 3, Ho Chi Minh City. Sacombank Imperial provides packaged financial solutions to customers who are high net worth individuals and need advice to manage effectively idle liquid assets and large-value investments. 3. 29 March 2011 Laos Deputy Prime Minister visits Sacombank On their trip to Vietnam, the senior delegation of the Lao Peoples Democratic Republic led by Deputy Prime Minister cum Minister of Foreign Affairs, Thongloun Sisoulith, visited Sacombank. His Excellency Thongloun Sisoulith highly appreciated Sacombanks achievements, especially its pioneering business expansion into Laos through the operation of its Lao Branch established in 2008. Thongloun Sisoulith also said that the Government and people of Laos had issued supportive policies to encourage Vietnamese businesses to expand their operations in Laos. This visit gave Sacombank a special opportunity to express its interest in further future cooperation.

17

ANNUAL REPORT 2011

20 YEARS INNOVATION AND DEVELOPMENT

4. 30 March 2011 Sacombank and FMO sign a loan contract for US$150 million
Under the Contract, FMO agreed to offer Sacombank a loan of US$25 million and required that other financial organisations, including Proparco, Norfund, BIO and DEG, syndicate loans totalling US$150 million. The signing ceremony took place during a visit to Vietnam by the Crown Prince, Princess Mxima, and Minister of Agriculture and Foreign Trade of the Kingdom of the Netherlands along with a delegation of representatives of 80 Dutch enterprises. Borrowing funds from foreign financial organisations and institutions helps Sacombank not only improve its financial capacity but also expand its relationships as well as create opportunities for access to technical assistance packages from these co-lenders

ANNUAL REPORT 2011

18

5. 7 April 2011 Ho Chi Minh City Leader Visits Sacombank Phnom Penh
Sacombank was honored to welcome a delegation of HCMCs leaders led by Madam Nguyen Thi Hong, Vice Chairwoman of the Peoples Committee of HCMC, on their visit to Sacombanks Phnom Penh Branch. Madam Nguyen Thi Hong highly appreciated Sacombanks business achievements and expressed her support for Sacombank to continue to boost its strengths; she also expressed her willingness to actively cooperate and assist Vietnamese enterprises that invest in Cambodia, thus contributing to strengthening the bilateral economic relations between the two countries.

6. 14 April 2011 Sacombank successfully deploys Data Warehouse using Oracle Exadata solution
Sacombank was the first Vietnamese commercial joint stock bank to officially announce its successful deployment of a Data Warehouse Project a concentrated data warehouse solution that supports forecasts and analyses to facilitate effective business decision making. The Data Warehouse was built on the basis of the Oracle Business Intelligence technology running on Oracles Exadata data server system, which was launched successfully for the first time in Vietnam under this project. On this basis, Sacombank and Oracle will provide customers with modern and multi-functional banking products and services.

7. 5 October 2011 - Sacombank sets up 100% foreign invested bank in Cambodia

Saigon Thuong Tin Cambodia Commercial Joint Stock Bank (Sacombank Cambodia Plc) is a subsidiary bank of Sacombank and is an independent entity, which has independent accounts and was incorporated under Cambodian laws. The subsidiary bank is headquartered at 60 Norodom Avenue, Sangkat Chey Chumnas Ward, Khan Daun Penh District, Phnom Penh City, Cambodia. Sacombank Cambodia has an operational term of 99 years as a commercial bank with charter capital of 38 million United States Dollars (US$38,000,000). This important event marked a transitional point in Sacombanks development strategies and enhanced Sacombank operating capabilities in Cambodia in particular and in Indochina in general.

8. 26 October 2011 Sacombank officially increases its charter capital to VND10,740 billion
According to the charter capital increase plan approved by the Annual General Meeting of Shareholders 2010, Sacombank officially announced its new charter capital of VND10,739,676,640,000 (ten trillion, seven hundred and thirty-nine billion, six hundred and seventy-six million, six hundred and forty thousand Vietnamese Dong only).

19

ANNUAL REPORT 2011

20 YEARS INNOVATION AND DEVELOPMENT

9. 20 December 2011 Sacombank honored to receive Third-Class Labor Order from State President
On the occasion of its 20th anniversary (21 December 1991 21 December 2011), Sacombank was honored to receive the Third-Class Labour Order from the State President for its outstanding achievements for the period of 2006-2010 and contributions to the development of Socialism and the protection of the Fatherland under the Decision No. 2413/QDCTN dated 15 December 2011. This is a noble reward from the State which recognises the outstanding achievements of Sacombank over 20 years of indefatigable efforts, and gives Sacombank great encouragement and motivation in the next ten-year period.

ANNUAL REPORT 2011

20

oRGAnIzAtIon CHARt

Management and Supervision

SHAREHoLDER CoMMIttEE

BoARD oF DIRECtoRS

BoARD oF SUPERVISoRS

internal audit Board of Directors office

FInAnCIAL InVEStMEnt CoUnCIL * CREDIt CoUnCIL

Operations
CEo

Investment sector Board of Research & Development Board of Productivity & Quality Financial Institutions Department Balance Sheet Management Department

HR & tRAnInG
Human Resource Department Traning Center

PERSonAL BAnKInG
Personal Banking E - Banking Contact Center

CoRPoRAtE BAnKInG

tREASURy

tRAnSACtIon CEntER

CREDIt

InFoRMAtIon tECHnoLoGy
IT Department Data Center

Corporate Banking Capital Market Department Forex Department Northern Region Treasury Center

Appraisal Department

(*) Besides Credit Council, Financial Investment Council and Risk Management Committee, the Organization also includes: Executive Councils include: Peformance Review Council, Debt Management Council Traning Council, Procurement Council,,... Management Committees include: Personal Committee, Strategy and Policy Development Committee, Reward and Compensation Committee Overdue Loan Review Committee, IT Modernzation Steering Committee, Re-engineering Committee.

21

ANNUAL REPORT 2011

ORGANIZATION

FInAnCE

oPERAtIon

RISK MAnAGEMEnt
Risk Management Department Legal & Compliance Department

SUPPoRtInG

REGIonS

Branches
Personal Banking Department Corporate Banking Department Forex Sector Business Support Department Accounting & Administration Department

Finance Planning Department Accounting Department

International Payment Center Domestic Payment & Treasury Department Forex Support Sector

Administration Department Construction Department External Affairs Department

Regional office Internal Audit Sector Appraisal Sector Business Support Sector

Transaction Offices
Business Sector Business Support Sector

SUBSIDIARIES

(Card Center, Wealth Management Center, Security Center, Sacombank - SBL, Sacombank - SBA, Sacombank - SBJ, Sacombank - SBR, Sacombank Cambodia Plc)

ANNUAL REPORT 2011

22

IntRoDUCtIon to tHE BoARD oF DIRECtoRS

Ms. Huynh Que Ha

First Vice Chairwoman 9 years of experience in finance and banking

Mr. Dang Van Thanh

Chairman 23 years of experience in finance and banking

Mr. Nguyen Chau

Vice Chairman 23 years of experience in finance and banking

23

ANNUAL REPORT 2011

ORGANIZATION

Mr. Pham Duy Cuong

Member 23 years of experience in finance and banking

Mr. Dang Hong Anh

Member 6 years of experience in finance and banking

Mr. Nguyen Ngoc Thai Binh

Member 6 years of experience in finance and banking

Mr. Lim Peng Khoon

Independent Member 44 years of experience in finance and banking

ANNUAL REPORT 2011

24

ACtIVItIES oF tHE BoARD oF DIRECtoRS

Sacombanks Board of Directors (BOD), with a term of five years, is responsible for managing the Bank, which comprises four major tasks: planning, organisation, leadership and monitoring. The BOD comprises a Chairman, two Vice Chairpersons, and four Members (one regular member, two semi-regular members, and one non-executive independent member). Meetings are held once every quarter and may be held extraordinarily if required. At the beginning of the term, the BOD elects a Chairman by secret ballot. The BOD Chairman approves the BOD with members working on a regular basis (referred to as the Permanent Committee of the BOD) and assigns tasks to each member. Each assigned BOD member takes charge of specific Councils or Committees/Boards based on their experience and availability, as follows:
n

Councils, including: Credit Council, Asset Investment Council, Financial Investment Council, Reward/Disciplinary Council, Loss Handling Council, and Training Council, among others. These Councils meet and decide all relevant matters at the proposals of the Board of Management. Committees/Boards, including: Risk Management Committee, Development Strategies and Policies Committee, Human Resources Committee, Remuneration and Incentives Committee, Steering Committee for Prevention and Handling of Overdue Debts, Banking Technology Modernisation Board, and Restructuring Board, among others. These Boards and Committees act as consulting bodies for the BOD on relevant matters, ranging from planning, organisation and leadership to monitoring and assessing implementation.
25
ANNUAL REPORT 2011

ORGANIZATION

The Chairman of the BOD decides all matters under the BODs authority on its behalf during the intervals between BOD meetings at the proposals of the Board of Management and the relevant Committees/Boards, and shall report to the BOD at the nearest subsequent meeting. At the end of each month, quarter and six-month period, and at the end of the year, the Chairman of the BOD shall preside over meetings on business tasks for the next period. In general, with the defined functions and tasks of the management body of the Bank, and its responsibility to shareholders, the BOD members have adequately performed their managerial roles, providing timely instructions and support to the Board of Management and closely coordinating with the Board of Supervisors in the inspection and supervision of the operations of the Bank and its subsidiaries. The BOD is not only a firm source of support for the Board of Management of the Bank but also a central point of solidarity, leadership and planning for policies and legal frameworks in accordance with the laws, regulations and the Banks development orientation. As a result, Sacombank has operated with increasing stability, safety and efficiency, and has had outstanding achievements during its 20 years of development.

ANNUAL REPORT 2011

26

IntRoDUCtIon to tHE BoARD oF SUPERVISoRS

Mr. Nguyen Tan Thanh

Head 23 years of experience in finance and banking

Mr. Le Van Tong

Member 23 years of experience in finance and banking

Ms. Nguyen Thi Thanh Mai

Member 18 years of experience in finance and banking

27

ANNUAL REPORT 2011

ORGANIZATION

ACtIVItIES oF tHE BoARD oF SUPERVISoRS

The Board of Supervisors (BOS) overlooks the Banks operations to provide an accurate assessment of its business activities and financial position. It is directly elected by the General Meeting of Shareholders, and independent from the Board of Directors (BOD) and the Chief Executive Officer (CEO). The BOS has the following tasks:
n

Supervise compliance with the laws and the Banks charter in the management of the Bank. Give instructions to and supervise the activities of the Internal Audit function. Be responsible for internal controls and inspection systems in accordance with the regulations of the State Bank of Vietnam. Evaluate the financial statements of the Bank. Assess the reasonableness, legality, truthfulness and creditability of the Banks accounting and statistics, and prepare financial statements for submission to the Annual General Meeting of Shareholders. Monitor the status of capital management and use. Monitor service operating activities. Monitor investing activities. Monitor the management of the Banks assets, including supervision of procurement, repairs and capital construction, monitor compliance with treasury safety assurance regulations.

By participating in Councils, Committees and Boards, and meetings of the BOD, the BOS monitors compliance with the laws and the Banks Charter on management, and provides opinions on the revision and amendment of business objectives and directions as well as regulations and processes prepared and issued by the BOD and the BOM, hence improving the effectiveness of prior supervision and mitigating potential risks. Through a three-level control organisation consisting of the BOS, Internal Auditors, and Regional Inspection and Control Teams and BOS in subsidiaries providing daily and weekly reports made by internal auditors, the BOS controls and supervises the operations of domestic and overseas Branches, departments in the Head Office and Subsidiaries. In addition, each year, the BOS visits Branches and Regional Offices to assess real business operating situations and management activities, and to collect and study feedbacks from Branches and Regional Offices on advantages and disadvantages in operation, and the timeliness and effectiveness of support from Regional Offices and functional departments of the Head Office for business units.

n n n n

The BOS carried out its tasks through the following activities:
n

Under the above operating mechanism, the BOS has fully controlled the operations of the Bank, ensuring safety, efficiency and compliance with the laws.

On the basis of macro-economic forecasts and internal assessments on the operations of the Bank, the BOS set out specific action plans from the beginning of the year, focused on supervising and coordinating with the BOD and the Board of Management (BOM) to achieve the Banks objectives.

Remuneration and expenditure of the BOD, the BOS and committees

The remuneration and expenditure of the BOD, the BOS and committees was approved by the General Meeting of Shareholders at 1% of the profit after tax for the fiscal year 2011.

ANNUAL REPORT 2011

28

IntRoDUCtIon to tHE BoARD oF MAnAGEMEnt

Mr. Tran Xuan Huy ng Trn Xun Huy Chief Executive Tng gim c Officer

in charge of Individual and Corporate Ph trch Khch hng C nhn, Services and the Card Center Doanh nghip v Trung tm Th

Mr. Nguyen Dang Thanh ng Nguyn ng Thanh Deputy CEO Ph Tng gim c

in charge Tin t Ph trch of Currency

ng L Hoi Vn Mr. Ly Hoai Van Ph Tng gim c Deputy CEO

in charge Qun Management Ph trch of Riskl Ri ro

Mr. Pham Nhat Vinh ng Phm Nht Vinh Deputy CEO Ph Tng gim c

Over Hn 11 years experience in nm kinh nghim finance and vc ti trong lnh banking. chnh ngn hng. Huy has accompanied

L ngi gn its strong Sacombank in lin vi nhng thnh cng, nhng successes and transitions chuyn mnh mnh m from 2007 to date. ca Sacombank trong giai and ist 2007 n nay. on a successful businessman, who was celebrated by Ngoi ra, ng Huy cn l mt the Peoples Committee of doanh nhn thnh t, c HCMC as a Businessman of y ban Nhn dn TP.HCM vinh Saigon. danh l Doanh nhn Si Gn BSc in Finance, BA in Teacher tiu biu. Training. C nhn Ti chnh, C nhn S phm.

Over Hn 11 years experience in nm kinh nghim finance and vc ti trong lnh banking. chnh ngn hng. Excellent performance in developing thnh tch xut L ngi cthe card market and leading modern banking sc trong vic pht trin th services. trng th v cc dch v ngn hng hin i hng u. BSc in Economics, specialising in nhn Trading. CMonetaryKinh t chuyn ngnh Kinh doanh tin t.

10 years kinh nghim trong nm experience in monetary trading. lnh vc kinh doanh tin t. He ngi c ng gp ln L has made significant contributions vc kinh doanh trong lnh in monetary trading, helping Sacombank to tin t, gp phn quan trng win prestigious international a Sacombank t c cc awards like the t uy tn cho gii thng qucBest Foreign Exchange c dch Ngn hng Provider vAward, ngoi which was Vit Nam 4 four hi ttitnht awarded for nm consecutive years. lin. BSc nhn Kinh t chuyn C in Economics, specialising in Monetary Trading. ngnh Kinh doanh Tin t.

10 years experience in regulatonm kinh nghim v ry matters and trong lnh vc chuyn mn risk management. php l v qun tr ri ro. He has made important con-

tributions nhiu strategic L ngi cto the cng hin plans of cho cc k from quan trngSacombank, hoch restructuring to Sacombank chin lc cathe formation of an advanced cu trc n t hot ng ti and effective risk management system, vic nh hnh h thng qun making tin tin, hiu safe tr ri ro Sacombank a qu; and phn Bank. gp efficient a Sacombank tr thnh Ngn hng an ton, BA in Commercial Law. hiu qu. C nhn chuyn ngnh Lut thng mi.

29

BO CO THNG NIN ANNUAL REPORT 2011 2011

Ms. QuachThanh NgocThuy Deputy CEO

in charge of Operations

Mr. Nguyen Minh Tam Deputy CEO

in charge of Foreign Operations

Mr. Dao Nguyen Vu Deputy CEO

cum Director of the HCMC Region

Mr. Ha Van Trung Finance Director

Ms. Nguyen Thi My Hanh Chief Accountant

20 years experience in accounting, international payment, evaluation and investment. Instrumental in securing Sacombanks position in monetary markets, obtaining recognition from international organisations as the Best Transaction Bank and the Best Cash Managing Bank in Vietnam. BSc in Business Administration.

Over 17 years managerial experience in finance and banking. He has made the biggest contributions to developing Sacombanks overseas branches and subsidiary bank, turning Sacombank into an international brand. Master in Economics. BSc in Economics, specialising in Statistics.

20 years experience in credit operation and credit risk management. He turned the Ho Chi Minh City Region into the business leader in the banking industry for many years, making a substantial contribution to the Banks overall income. BSc in Economics, specialising in Banking.

15 years experience in finance and banking. He has made important contributions to planning financial strategies for Sacombank, targeting the improvement of the efficiency and performance of the Bank and adding value for shareholders and customers. MBA in Finance and BSc in Business Administration.

19 years experience in accounting and auditing. She has made contributions to the safe and efficient development of Sacombank. BSc in Finance and Accounting.

BO CO THNG NIN 2011 ANNUAL REPORT

30

REPORTS

For 20 years, Sacombank has been determined with its own development strategies, and confident in getting its own way to become the pioneer bank in various fields. From period of operating under the mobile credit institution ,then the commercial bank with the lowest par value of listed shares in the banking sector, to the period of opening special branches (Hoa Viet and 8 March branches), capital attraction from the world financial institutions to Vietnam, and a pioneer of expanding its business network in Laos and Cambodia, Sacombank has gradually confirmed its strong steps by its own way.

Going its own way

REPoRt oF tHE BoARD oF DIRECtoRS

ON THE IMPLEMENTATION OF ITS MANAGEMENT TASKS IN 2011
2011 was the first year of implementation of the Development Strategies for the period of 2011-2020, and also saw the celebration of the 20th anniversary of Sacombank (21 December 1991 21 December 2011). It is now essential to create an impetus for outstanding development achievements in subsequent years and make an impression, showing Sacombanks youthful force as a 20-year-old youngster. However, this process started in the context of on-going global economic depression, high inflation in the country, and Sacombank itself trying to overcome the consequences of a period of unsustainable and rapid growth (2006 2007). Therefore, instead of focusing on accelerating growth, the Board of Directors has changed its strategic direction, based on this viewpoint: Reduction of extensive development, focus on intensive investments, acceleration of the restructuring process (mainly concentrating on structural and institutional improvement), and modernisation of Sacombanks banking technology and training to improve the quality of the human resources through which to create a foundation for the next period of stable and sustainable development. Based on these strategic changes; strict implementation of the regulations of the State Bank of Vietnam on credit growth control, ceiling deposit interest rates and financial safety indices, which helped to control high inflation; as well as sharing of the difficulties with loyal customers and small and medium-sized enterprises, Sacombank saw its growth in 2011 slow down in various aspects compared with previous years, except for the profit before tax, which increased by 13% from 2010, yet only reaching 101% of the target. Nevertheless, what is most reassuring is that overdue debts and bad debts were handled well and controlled effectively to be kept at 0.86% and 0.56% of the total lending balance respectively; while the average ratio of the entire Vietnamese banking industry was 3.4%. Furthermore, most of the Banks financial safety indices were in compliance with regulations. As for the Subsidiaries performance in 2011, except for SBJ Company, which had modest operating results with profit before tax reaching only VND22.1 billion due to strict compliance with the State Bank of Vietnams policy on restriction of gold trading, other Subsidiaries achieved impressive profit before tax as follows: SBA Company earned VND110.6 billion of profit before tax, reaching 106% of the target; SBL Company earned VND75.02 billion, reaching 107.2% of the target and increasing by 42.9%
33
ANNUAL REPORT 2011

from the previous year; SBR Company reached US$1.57 billion of remittance revenue, an increase of 20.6% from the previous year and representing 17.4% of market share. Meanwhile, Sacombank has focused its resources on restructuring the Bank and its Subsidiaries and Subsidiary Bank, upgrading the T-24/R8 Core Banking System to version R11, and implementing a series of IT projects associated with improving most of its core business policies, regulations and processes, especially risk management processes in accordance with international standards, to form a firm foundation for operational and risk management activities in subsequent periods. Through the Sales Stimulation Project (SSP), last year, Sacombank provided training on professional selling skills to the majority of its customer relations staff, and reorganised the professional sales forces in conjunction with the introduction of proper incentive policies to improve business performance. Sacombank also selected and provided knowledge and skills training to over 500 potential officers who are to be added to the next generation. In addition, the Bank gradually improved the centralised management models, frameworks and methods by business and operational division and applied decentralised administration over Regions/Branches by territory in order to strictly implement the principle of unified organisation centralised management decentralised administration and promote the highest level of individual responsibility for managerial officers at various levels. On the other hand, Sacombank also focused on innovation of internal cost pricing in accordance with international standards and best practices in order to foster the proactive decision making ability and creativity of direct business units on the basis of purchaser-seller agreement and meeting requirements relating to proper allocation and regulation of resources to business lines and market segments to ensure safety and efficiency. The Bank also innovated the annual business planning and implementation activities associated with five-year development objectives through a clever combination of short-term benefits and longterm development objectives in order to increase the proactiveness, self-responsibility and flexibility of direct business units in managing business plans, combined with the coordination role of the heads of business divisions of the Bank and system-wide functional departments.

REPORTS

In addition, to ensure the highest level of efficiency and the best use of the network scale of a retail bank, in 2011, the Bank opened two new branches in Thai Nguyen and Phu Tho Provinces, upgraded the Sacombank Phnom Penh Branch into a Subsidiary Bank wholly owned by Sacombank in Cambodia, and opened 42 more Transaction Offices, increasing the total number of Transaction Offices in the three countries of Vietnam, Laos and Cambodia to 408 by late 2011. During the past 20 years, especially in 2011, with the function of managing the Bank in accordance with the Law on Credit Institutions, and with the four major tasks of Planning, Organisation, Leadership and Monitoring, the Board of Directors has spent a great deal of time and effort on improving the Banking Architecture, including the Superstructure and the Infrastructure; Legal Frameworks and Support Tools, and developing quality Human Resources and a firm operational platform on the basis of the proper business model of a modern multi-functional retail bank in a lean and cost-saving manner. The Bank has also boosted to the highest level the passion, proactiveness and creativity of employees through open transparent incentive policies of the Bank and the inspirational and change management ability of managerial officers at various levels through which to increase the adaptability of all staff members and improve the Banks competitiveness. Therefore, despite slower growth in all aspects last year compared with previous years, with a fairly complete banking architecture and complete legal frameworks; a fairly firm operational platform; fairly modern support tools and fairly advanced risk management methods; along with strong and professional sales forces, the Bank is well placed to be able to achieve its objectives of SAFETY, EFFICIENCY and SUSTAINABILITY in the near future, as defined in its strategic plan for the period of 2011 2015. Sacombank started to implement its 2012 plan in the context of many difficulties and challenges still facing the world economy and the domestic economy, while its inherent weaknesses and shortcomings, although overcome and corrected synchronously in 2011, still need time to be eventually eliminated. Therefore, the strategic

policy of simultaneous defense and attack must be maintained in order to deal with the impacts of the global financial crisis of 2008-2009. Accordingly, EFFICIENCY is still considered an important objective, but SAFETY is the leading strategic task. On that basis, it is necessary to continue improving fundamental elements, and to focus on innovation, particularly in respect of the WAY OF THINKING and METHODS for corporate governance in general, especially risk management, and for financial management in particular. Furthermore, the individual role and responsibility, proactiveness and creativity of members of the Board of Management must be promoted to the highest level, with great promotion opportunities and satisfactory incentives provided. On the other hand, Sacombanks Asset Portfolio and Financial Structure will be restructured according to an optimal financial model, with resources focused on core capabilities; rapid and complete divestment from non-core businesses; slowdown and minimisation of investment in capital construction; rapid disposal of unused assets and assets received for offsetting against loan debts; increase in available funds; elimination of waste and performance of strict saving; increase in incomes and decrease in expenses; more added value created for customers; increase in incomes for the Bank; increase in dividends for Shareholders and improvement of the living standards of employees across the entire network of the Bank. So, in the context of the current economic challenges, we only expect 2012 to be a year of focused stabilisation in all aspects to ensure safety and efficiency. In addition, it is necessary to add more resources, consolidate the foundation, and continue innovating the operational mechanism, corporate governance methods, and incentive policies within the framework of the State Bank of Vietnam Governors policy on restructuring commercial banks of Vietnam in order to create the momentum for breakthroughs in growth in subsequent years and successfully fulfill the development objectives set forth for the whole period of 2011 2020 in line with the Resolution of the 2010 General Meeting of Shareholders at its annual meeting on 2 April 2011.

THE BOARD OF DIRECTORS

ANNUAL REPORT 2011

34

REPoRt oF tHE BoARD oF SUPERVISoRS

Taking the responsibilities for monitoring compliance with the laws and regulations set by the State Bank of Vietnam (SBV) across Sacombanks system to ensure its stable growth, achievement of business objectives and adherence to the laws and banking regulations, based on macro-economic forecasts and the Banks performance review, the Board of Supervisors in 2011 performed the following specific action plans: Hold periodic meetings between the Board of Supervisors and the Internal Auditors and the Risk Management team; attend the meetings of the Board of Directors; provide comments on the development and implementation of business plans; perform comprehensive monitoring of the Banks operations in various aspects with emphasis on the monitoring and cooperation with the Board of Directors and the Board of Management to achieve the set objectives. In 2011, as a tool of the Board of Supervisors, the Internal Audit system (consisting of the Internal Auditors at the Head Office and the Regional Inspection and Supervision Team) performed audits of 408 transaction offices (100% of the total number of transaction offices), 11 divisions/departments at the Head Office and 3 Subsidiaries (SBA, SBL, SBJ). Periodic and extraordinary cash counts were performed at all transaction offices across the Banks system. The controls and internal audit systems of the Bank proved their efficiency in the monitoring process to achieve the goal of prevention and warning of any probable risks. In addition, the Internal Auditors have performed distant supervision of all business units across the Banks system, gave timely warnings and identified any violations of the regulations for immediate response and remediation as well as provided guidelines on business operations for different business units.

Assessment of the Board of Supervisors on the Banks business activities:

n

Management: The Board of Directors performed their management role well, providing timely support and instructions to the Board of Management in relation to managerial tasks. The Board of Directors also closely coordinated with the Board of Supervisors through inspection and control of the operating activities of the Bank and its subsidiaries. Operations: The Board of Management made outstanding efforts in 2011, having consistently grasped market developments in a timely manner and strictly implemented the directives of the Board of Directors as well as adhering to the plans of the Board of Directors. These actions resulted in a number of praiseworthy successes in the year in terms of profit before tax, total assets, and business network expansion. The Board of Management also coordinated closely with the Board of Supervisors in monitoring and supervising operating activities, and providing relevant information and data to support the Board of Supervisors actions. Internal controls: The Bank has built and has always been interested in the improvement of a system of internal controls to meet the development needs of the Bank. There was an emphasis on self-checks and self-correction, and appointing Itinerant Directors and Transaction Managers to conduct checks as well. The control system comprises of risk management policies,
35
ANNUAL REPORT 2011

processes and regulations, decentralisation of power, levels of authorisation and IT applications. The tasks of inspection and supervision were improved to attain better results.
n

Risk management and treatment in Sacombanks control system.

Market risks (i) Foreign exchange risk According to economists, one of the biggest successes of the monetary policy of 2011 lies in the foreign exchange rate policy. With VND deposit rates being maintained high while the applicable ceiling rate for USD deposits being kept low, the foreign exchange rate between USD and VND has been kept reasonably stable after it had been sharply depreciated by 9% at the beginning of the year. However, the foreign exchange rate climbed at certain points in time during the year which was principally due to gold speculation. With the foreign exchange rate being quite stable in 2011 and efficient management of the foreign exchange risks, Sacombank has not been affected severely by the foreign exchange risks. (ii) Interest rate risk In 2011, given the scarcity of raised funds, banks race to increase interest rates was intensified vigorously. However, thanks to its policy on floating loan interest rates, Sacombank successfully managed interest rate risks.

The Internal Audit, as a tool of the Board of Supervisors

Liquidity risk (i) High inflation of the local economy; (ii) The monetary tightening policy; (iii) Interest rate competition among banks Some banks fell into intensified liquidity problem. Liquidity risk represented a significant risk faced by many banks. Sacombanks internal financial indicators related to liquidity remained under control but at high limits, and needed attention and handling. Some of the indicators were the VND-denominated lending to fund-raising ratio, the quick ratio in VND by day or week. Credit risk As at October 2011, according to the data of the SBV, bad debts of the banking sector rose by 35.6% from 2010 and hit 3.4% of the total lending balance. Sacombanks bad debt ratio as at 31 December 2011 was 0.56%, which was quite low compared with the average ratio of the banking sector. The low ratio was attributed to the Banks credit grant procedures being stringent. The Bad Debt Prevention and Handling Board fulfilled well its advisory and forecasting role and set out solutions for handling bad debts. However, bad debts are forecast to increase highly in early 2012, and require further closer control to be in place.

Results of evaluation of financial statements

The Board of Supervisors evaluated the quarterly, semiannual and annual Financial Statements of the Bank in the fiscal year 2011 and agreed to confirm the following results: The financial statements of the Bank for 2011 were prepared in the forms issued along with Decision No. 16/2007/QDNHNN dated 18 April 2007 of the State Bank of Vietnam on Financial Reporting Regulations for Credit Institutions and in accordance with Circular No. 09/2010/TT-BTC dated 15 January 2010 of the Ministry of Finance on Guidance for disclosure of information on the stock market, Vietnamese Accounting Standards and prevailing regulations. The data reflected in the financial statements for 2011 are sufficient, timely, clear, accurate, truthful and reasonable. They have been approved by the Audit Committee of Sacombank and independently audited by PricewaterhouseCoopers (Vietnam) Limited. Sacombanks financial position and indicators are within the limits permitted for banks.

THE BOARD OF SUPERVISORS

ANNUAL REPORT 2011

36

REPoRt oF tHE BoARD oF MAnAGEMEnt

GENERAL SITUATION
1. Economic overview
In 2011, the world economy faced continued difficulties, with high inflation and complicated European sovereign debts hindering recovery. By the end of 2011, the world economy had grown by 3.8% (lower than the growth rate of 5.2% in 2010), whereas Asias economy had grown by 7.2% and the economies of developing countries showed growth of around 6.2%. Last year, the Vietnamese economy faced high inflation, capricious changes in foreign exchange rates and gold prices, stock market stagnation, a frozen real estate market, an unsustainable macro-economic balance, a high increase in governmental debts, low efficiency of public investments, shortcomings in policies on economic regulation, and natural calamities and epidemics that significantly affected peoples lives in certain areas. In response to these difficulties, the Government issued a number of timely policies and solutions. As a result,
37
ANNUAL REPORT 2011

inflation was gradually brought under control in the last months of the year, and the countrys GDP growth rate was maintained at a level that was more satisfactory than the general situation, albeit lower than in the previous year. The details are as follows: CPI increased by 18.12%; GDP grew by 5.89%; export value reached US$96.3 billion, up by 33.3% from 2010; the trade deficit was kept at under 10% of export value; and total social investment increased by 5.7% from 2010 and was equal to around 34.6% of GDP.

2. Banking industry
Implementing Resolution 11/NQ-CP of the Government, the State Bank of Vietnam issued close and prudent monetary policies to fulfill the objectives of credit growth control, low total payment facilities, and reasonable interest rates and foreign exchange rates in order to control inflation, stabilise the macro-economy and ensure social security. As a result, the financial and money market has gradually been stable. Interest rates

REPORTS

and foreign exchange rates were controlled effectively and more closely in accordance with the countrys objectives. However, shortcomings at a number of banks, such as liquidity risk, bad debts and non-compliance with the laws, were revealed. The State Bank of Vietnam therefore had to implement a policy on restructuring the banking industry through the merger and acquisition of weaker banks to ensure safety and transparency for the banking industry as a whole.. In 2011, the total assets of the banking industry as a whole increased by 13.5%. Raised capital and loans grew by 9.9% and 10.9% respectively from the beginning of the year. Bad debts increased sharply; the percentage of bad debts of the industry as a whole was over 3%. Operational risks, especially ethical risk, also increased.

Strictly implementing Directive 02 of the State Bank of Vietnam, Sacombank applied policies including not participating in interest rate competition; keeping deposit interest rates under 14%; making use of its brand and network advantages to raise capital from stable resident communities; and improving its competitiveness by increasing the sales force and improving their customer care skills. New products and fund-raising programmes were also launched to satisfy the needs of the new individual customer segments. These new products and programmes were accordant with the current market conditions and helped utilise the Banks competitive advantage and reduce the fundraising costs for the Bank somewhat. These programmes included Depositing Millions to Win Billions of VND, The Wave of Billionaires, Phu Dong Savings, products related to the conversion of deposits in gold, and a sales-based bonus programme for employees, etc. Capital raised from financial institutions continued to grow thanks to the Banks brand reputation and well-established relationships. This led to a stable and diversified operating capital structure for Sacombank. By late 2011, trade refinancing was worth US$258 million, an increase of US$123 million (91%); the entrusted fund reached VND2,339 billion, up by VND105 billion (5%) from the previous year, and the Bank had raised US$105 million of subdebt.

OPERATING RESULTS IN 2011

1. Total assets
In the context of the general difficulties in the economy and the risky business environment, by implementing a policy of non-pressure on performance indices, Sacombanks total assets in 2011 slightly changed compared to 2010. As at 31 December 2011, the Banks total assets reached VND140,137 billion, a slight decrease of 1% from the beginning of the year.

2. Capital raising activities

By the end of last year, Sacombanks total raised capital had reached VND123,315 billion (including gold custody), a slight decrease of 2% from early last year, representing 4% of the market share of the banking industry. The portion of capital raised from economic organisations and residents was VND104,218 billion, up by 0.4% from early last year.. In general, since market developments and the State Bank of Vietnams monetary tightening policy have partly affected fund-raising activities, particularly the reduction of gold and USD trading, the total raised capital of the Bank grew more slowly than in previous years.

3. Credit activities
By 31 December 2011, the total customer debt balance had reached VND78,449 billion, an increase of VND1,090 billion, equivalent to 1.41%, from early last year, accounting for 55.98% of total assets. Loans to the non-manufacturing sector accounted for 16% of this. In general, the lending growth rate was not high because Sacombank applied a safe credit control policy in line with market developments. In addition, due to the impact of the Governments policies on restriction of lending to the non-manufacturing sectors and stopping lending in gold, the number of eligible borrowers was significantly reduced. Furthermore, customers were encouraged not to accept loan debts due to high market interest rates.

ANNUAL REPORT 2011

38

REPoRt oF tHE BoARD oF MAnAGEMEnt

Anticipating economic difficulties, Sacombank actively implemented strong and consistent measures to prevent and manage overdue debts through the mechanism of the Overdue Debt Prevention & Handling Boards and Sub-boards of business units. Therefore, credit quality was secured and the overdue debt ratio was kept lower than the average ratio of the banking industry. Specifically, the overdue debt ratio of Sacombank was 0.86% and its bad debt ratio was 0.56% (the average ratio of the industry was 3.4%).

n n n

International payment revenue reached US$5,731 million. Money transfer revenue was VND3,846,842 billion, an increase of 36% from 2010. Guaranteed revenue grew sharply and reached VND7,372 billion, an increase of 40% from 2010.

4. Interest rates and net interest incomes

In the context of high deposit interest rates, dispersed lending was actively conducted by all business units, combined with good control of fund-raising expenses to maintain healthy gross margins for 2011. As a result, net interest incomes were VND5,496 billion, representing an increase of 71% from the previous year and 124% of target. These satisfactory total interest incomes contributed significantly to the overall profits of the Bank. The international-standard FTP framework, which was officially launched at the beginning of the year, represented an important advancement in reformulating the method of calculating internal costs. It changed the viewpoint on assessment of profits contributed by business units, created support tools for the calculation of important ratios like CPR, KPI, TOI, etc. and created a basic platform for advanced business administration. To date, the FTP framework has been working effectively; it is largely automatic and can monitor and assess the efficiency of each transaction.

In addition to traditional services, the Internet banking service was improved and brought many new benefits to customers. The Sales Stimulation Programme was launched across Sacombanks network and has engendered a more dynamic and professional way of thinking about selling. Sacombank continued to invest in and develop card services, which is making a larger contribution to total service income. New products and services were also targeted at internal customers, who are employees of the Bank and its Subsidiaries.

6. Foreign exchange trading

By grasping business opportunities following market developments, the Banks foreign exchange trading activities brought in satisfactory results. The total income from these activities was VND123 billion, an increase of 173% from the previous year. In addition, foreign exchange products were diversified and provided customers with additional benefits. A number of workshops were held for enterprises and investors to familiarise customers with derivatives in investment and risk management.

7. Card activity
The number of Sacombanks cards in circulation by the end of 2011 totaled 906,401, an increase of 316,365 from early last year (increase of 54%). Of these, debit cards represented 78%, credit cards 7%, and prepaid cards 15%. The total number of ATMs was 751, an increase of 14% from early last year. The total number of POSs was 2,201 which was an increase of 36% from 2010. In 2011, card sales were boosted through direct distribution channels like freelancers, and marketing cooperation with schools, hospitals, trade centers, etc. A number of card utilities continued to be tested, updated and expanded. Some programmes like Plus

5. Services business
Thanks to the modern core banking platform, which has been frequently improved, along with the strengthened professional sales force, a broad network at home and abroad, and the application of a one-stop transaction process in the entire system, the services business was further improved during the year. Total service income was VND935 billion, accounting for 14.2%, an increase of 1% from 2010, exceeding the target by 47%. The details of this income are as follows:

39

ANNUAL REPORT 2011

REPORTS

Day and Sacombank Plus in association with card sale agencies were launched to increase the use of cards by customers and sales of the commodities and services of the Banks partners. Total income from card services reached VND130 billion, an increase of 88% from the previous year, representing 20% of the Banks total service income. The profit from card-related activities totaled VND67 billion.

The Banks profit before tax was VND2,740 billion, an increase of 13% from the previous year and equal to 101% of target.

10. Solvency & profitability

During the process of its development, Sacombank has consistently combined three strategic objectives: Safe Operation Efficient Business Sustainable Development and complied with the State Bank of Vietnams regulations, while heading for international standards on financial safety. Sacombank continued its strong restructuring of Assets and Liabilities. During the year, Sacombank focused on raising capital from residents and boosted capital growth from foreign financial institutions. At the same time, the Bank carefully selected borrowers and restructured its credit portfolio and securities investment portfolio. Furthermore, Sacombank allocated capital and assessed the efficiency of capital use by business lines. Its application of flexible internal costs stabilised the liquidity of the Bank, ensured solvency and improved profitability in the context of great changes in the market.
n n n

8. Administration expenses
During the year, business units throughout the system continued to reduce costs and clearly understood the viewpoint of Investment Expenses being Incurred Expenses. The Bank continued to build and improve the criteria for the material consumption standard, standards on fixed asset investments, labour tools, etc. in order to enable business units to shorten paper processing time and improve professionalism.

9. Operating results
In the context of adverse market conditions, and with its stance of sharing its customers difficulties, Sacombank earned the targeted profits and secured the statutory safety ratios, based on proper, timely and flexible business policies, even though some of the business results remained modest.

Return on Equity (ROE) was 14.60%; Return on Assets (ROA) was 1.44%; Ratio of profitable assets to total assets was 84.36%.

ANNUAL REPORT 2011

40

ACHIEVEMENTS IN 2011
Risk management and safe operation
Risk management was implemented and understood consistently throughout the system of Sacombank. As a result, Sacombank fully met and complied with all the applicable regulations of the State Bank of Vietnam. All business activities have been managed, alerted and monitored in order to identify, manage and minimise potential risks. In addition, Sacombank has built and successfully applied the Credit Rating Model, the Credit Limit Monitoring Model, the Risk Provision System under IFRS Standards, the Risk Factor Monitoring Model, and the technology component in the Money Filtering and AntiMoney Laundering Process under international standards, thus enabling good corporate governance for the Bank in the context of high increases in bad debts and overdue debts.

improved to reduce transaction time and improve the performance of employees. The project for upgrading the T24 R8 system to the T24 R11 system was initiated in October 2011 in order to improve the functions of the core banking system and application utilities.

Quality control and customer care

With the customer-oriented business philosophy of Customers satisfaction Sacombanks success, last year, Sacombank focused on improving customer service quality by establishing the Productivity & Quality Board and upgrading the Customer Service Center as a contact point for coordination with relevant business units to implement projects to conduct surveys on the needs and tastes of customers, and a project for the innovation of the customer service process. Sacombank also completed technical projects related to the customer dealing service; improved teller service quality and successfully launched the One-stop Transaction Model. In addition, the Bank provided a number of convenient and diverse products and services that are specific to each geographical region or area and integrated with advanced technologies. These products and services offer many diverse choices to satisfy the increasingly high demands of customers. Furthermore, Sacombank thoughtfully organised the Month of Gratitude to Customers, a well-prepared annual customer service programme designed to bring satisfaction and comfort to customers who use the Banks products and services.

Restructuring
Following the restructuring achievements at the Bank over recent years, Sacombank added a content component named Corporate Governance Innovation to its restructuring programme of Organisation Institution Products Financial Structure in 2011. Accordingly, the Restructuring Board of the Bank launched practical, indepth innovations relating to the activities of Sacombanks business units. The restructuring has contributed to improving the business performance in line with the current market situation. The innovations include: launching of the programmes of Reform of organisational structure and corporate governance at the head office, branches and transaction offices, Restructuring Subsidiaries in accordance with the Groups Corporate Governance Model, and the One-stop Transaction Model. Most of these programmes have been implemented and applied and have gradually shown their efficiency. Moreover, in 2011, innovative viewpoints were integrated into process/ procedure-making policies associated with information technology, and business processes were put into actual use.

Human resources management

In 2011, Sacombank implemented plans that focused on the improvement of the productivity and service quality of tellers, the management of human resources and remuneration, the establishment of a core competencies framework, potential manager training, succession planning, and performance-based remuneration. These plans were aimed at improving labour productivity, creating a friendly and transparent working environment and a proper compensation framework based on the skills and abilities of each employee, and implementing the strategy of the Board of Management on competitiveness improvement and innovation of human resources management in the current competitive environment. By late 2011, the Bank had had a total of 9,596 employees, an increase of 14.9% from 2010, and the resignation rate was 9% in 2011.

Banking technology modernisation

During the year, new banking technology projects continued to be implemented, such as the management reporting system, the customer information assessment system, etc. In particular, the T24 operation process was
41
ANNUAL REPORT 2011

Frequent training was provided through 203 training courses, with 9,153 employees participating, and a team of 458 internal trainers was developed. In addition, the Training Center coordinated with Hypertek Company to build a database of trainers and electronic textbooks for professional training courses, and launched the E-learning Programme to enable distance training activities for business units in 2011.

Brand promotion activities

Information about Sacombank and its Subsidiaries was frequently monitored, processed and provided in full to the mass media. Information about Sacombanks brand and culture was communicated internally to all employees. Furthermore, attention was consistently paid to brand standardisation and promotion efforts in terms of images, information and displays across the entire system of the Bank In 2011, Sacombank was honored to win the following awards: Bank of the Year in 2011, Best Cash Managing Bank in 2011, Best Foreign Exchange Provider in Vietnam in 2011, Best Transacting Bank in Vietnam and Best Corporate Governance and Investors Relations Bank in 2011 granted by The Banker, Global Finance, and The Asset magazines and was awarded the Third-Class Labour Order by the State President.. In general, Sacombank has maintained and made progress in its brand promotion activities. However, in order to further professionalise its brand promotion, Sacombank is conducting research into developing long-term branding strategies to promote the Banks position as a multi-national bank.

Utilising the network advantage

In 2011, although the State Bank of Vietnam had introduced restrictions on opening new bank transaction offices, Sacombank was able to expand its network as part of its network development strategies. By 31 December 2011, Sacombank had officially opened and put into operation 42 new transaction offices, increasing the total number of transaction offices of the Bank to 408. The Bank has a presence in 47 out of the 63 provinces/cities of Vietnam and in the two neighbouring countries of Laos and Cambodia In general, the Banks network development was managed well by business units in 2011. Sacombank has maintained its position as the joint stock commercial bank with the widest network
ANNUAL REPORT 2011

42

PERFoRMAnCE RESULtS oF SUBSIDIARIES

In 2011, based on the viewpoint of Safety and Efficiency in business administration, the total consolidated assets of Sacombank changed slightly from the beginning of the year. As at 31 December 2011, the total assets of Sacombank were worth VND141,469 billion, of which profitable assets represented 83.9%. Due to the difficulties in the domestic and world economies, as well as the stagnation of the stock market, the Bank faced significant challenges in its operation, such as difficulties in increasing equity capital to improve its financial capacity and meet business development needs. However, with its strong reputation, business scale and consistent business performance, Sacombank has always been trusted by customers, investors, and shareholders. In particular, the professional and flexible management by the management teams at various levels in the Bank helped Sacombank achieve its equity capital target. Its total equity capital reached VND14,547 billion as at 31 December 2011, an increase of VND529 billion from the previous year. In 2011, local enterprises, including Sacombanks Subsidiary Companies, were unable to avoid the impact of economic challenges. However, with their extensive experience accumulated over many years, the Subsidiaries actively implemented their defense and strengthening plans and made use of every market opportunity to launch appropriate business solutions in order to exceed their assigned targets. In addition, product cross-sale activities between the Bank and its Subsidiaries were boosted to help ensure that satisfactory results were achieved. The business units shared and exploited each others existing customer bases through a wide network at home and abroad. Through this process, practical economic benefits were obtained for each subsidiary and for Sacombank as a whole. The consolidated profit before tax in 2011 was VND2,771 billion, an increase of 7.6% from 2010.
n

Sacombank-SBA: This Subsidiary earned profit before tax of VND110.6 billion, or 106.1% of target. To achieve such good results, the Company actively and fully used its existing warehousing system and efficiently managed the mortgage of commodities pledged by customers; Sacombank-SBR: Foreign exchange remittance revenue totaled US$1.57 billion, an increase of 20.6% from 2010, representing a 17.4% market share. This Subsidiarys profit before tax was VND9.1 billion, an increase of 67.6% from 2010, equal to 106.7% of target. During the year, through the implementation of solutions to attract remitted capital from traditional markets, building relationships with new partners, and the launch of a number of home delivery money transfer products and services, the Company enjoyed increases in total incomes; Sacombank-SBL: This Subsidiarys profit before tax was VND75.02 billion, an increase of 42.9% from 2010, exceeding the target by 7.2%. Despite many difficulties in the financial leasing market last year, SBL utilised all of its business opportunities and network advantages to cross-sell products and control credit quality; Sacombank-SBJ: This Subsidiarys profit before tax was VND22.1 billion. In the context of the numerous changes in the State Bank of Vietnams policies, which adversely affected gold trading activities, the Company made good use of market opportunities and restructured its business activities with a focus on boosting jewelry trading. As a result, the Company successfully met its business targets.

In order to keep pace with market developments and trends, in future, these Subsidiaries will continue to focus on their core business, utilising their potential and strengths to develop in line with the Groups orientation, and achieve the required rate of return for Sacombank as scheduled.

43

ANNUAL REPORT 2011

BO CO KT QU KINH DOANH

ANNUAL REPORT 2011

44

CREDIt RAtInG RESULtS

MOODYS AND S&PS RATE SACOMBANK AS POTENTIALLY STABLE

Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has recently been rated by the two global credit rating organisations, Moodys and Standard & Poors (S&Ps), for the first time. The common comments of these organisations were that Sacombank was potentially stable, reflecting the quality of its business performance and its adaptability before the challenges of the Vietnamese and world economies. The comments and ratings were based on Sacombanks business position, financial capacity, profitability, liquidity ratios, credit risk management, and capital adequacy ratio in correlation with the economic environment of Vietnam in general and the banking industry in particular. That Sacombank invited the worlds leading credit rating organisations to rate the Bank is a clear indication of its strong and consistent commitment to financial information transparency to the community of domestic and foreign investors as well as its efforts to maintain and improve its quality, business performance and risk management towards international standards and practices.

Criteria (Bank Financial Strength Ratings)

Rating E+/ potentially stable

Meanings This result reflects: n Large market share in the commercial joint stock bank sector of Vietnam; n High quality of Assets with low non-performing loan ratio and the highest credit risk provision ratio among Vietnamese banks; n Balanced credit portfolio; n Large chartered capital. Among the 7 banks rated by Moodys, Sacombank is one of the 3 banks with B1 rating.

Domestic Currency Bank Deposits Rating Foreign Currency Bank Deposits Rating Domestic Currency Issuer Rating Foreign Currency Issuer Rating

B1/ potentially stable

B2/ potentially negative Potentially negative due to the national ceiling risk limit on foreign currency deposits. B1/potentially stable The B1 rating is equivalent to the credit rating of the Vietnamese Government.

B1/ potentially negative The B1 rating is equivalent to the credit rating of the Vietnamese Government. It is currently the highest rating for Vietnamese enterprises. Potentially negative due to the national ceiling risk limit on foreign currency deposits.

45

ANNUAL REPORT 2011

REPORTS

Criteria Issue credit rating - ICR

Rating B+/B/stable

Meanings S&Ps rated Sacombank based on the following factors: n Strong business position; n Weak capital and earnings; n Moderate risk position; n Above-average funding ability and moderate liquidity. The starting point for the credit rating of a Vietnamese commercial bank is b. Based on market developments in the Vietnam market and the manner of operation of the banking market, it was shown that there were still many macroeconomic shortcomings, which were far from approaching international practices. Such weaknesses have been mitigated thanks to impacts of adequate deposits and low dependence on outside capital resources. Sacombank is the second biggest private bank in Vietnam and earned a lending funding market share of around 3.5% to 4.5%. The leadership team of the Bank has progressive viewpoints and set out clear retail strategies. The Bank has made great efforts in innovation of new products. S&Ps rated the Banks diversification as moderate. Capital and earnings were unclear elements in the ratings by S&Ps. S&Ps believed that Sacombanks risk-adjusted capital ratio of 4% would not change within the next 12-18 months. That Sacombank kept a moderate credit growth would not increase credit expenses and was considered by S&Ps to be a factor affecting its profitability. Credit expenses were controlled with the defense strategy of Sacombank in order to minimise uncertainties from outside. Sacombank continued to make innovations and implemented sustainable risk management standards as well as applying historical experience to keep credit damages at low levels.

Stand-alone credit profile - SACP Anchor

b+ b

Business position

Strong

Capital & Earnings

Weak

Risk position

Moderate

Funding & Liquidity

Above average According to S&Ps, Sacombanks ratio of loans to customer and moderate deposits was better than that of the banking industry as a whole and better than a number of banks with larger business scale and networks. This reflected Sacombanks effective use of its network of branches and its active funding efforts. Sacombanks liquidity was also moderate, shown by its holding of highly liquid assets, which are enough to compensate for short-term loans
ANNUAL REPORT 2011

46

oBJECtIVES AnD PLAnS FoR 2012

OVERALL MARKET FORECASTS

World economy
The world economy is recovering thanks to the growth of emerging and developing economies, especially those in the Asian region. However, slower growth along with inflation, unemployment, budget deficits and sovereign debt crises in some of the worlds largest economies have created challenges affecting the recovery of the global economy and the stability of the financial and monetary sector of the world and Vietnam. The world economy is forecast to grow by 3.6% and the worlds developing economies by 6.2% in 2012 (Source: World Bank).

Domestic economy
The Governments tasks for the period of 2011-2015 are to reduce inflation, stabilise the macro-economy and maintain a reasonable growth rate, as well as reform the growth model and restructure the economy. Specific objectives include reducing inflation to under 10%, achieving GDP growth by around 6-6.5%; a total export value increase by around 13%, a trade deficit of around 11-12% of total export value; and total social investment and development capital reaching around 33.5% of GDP.

47

ANNUAL REPORT 2011

REPORTS

Development orientation of the banking industry in 2012

Based on domestic and foreign economic prospects, the State Bank of Vietnam set out its objectives for 2012 as follows: continue the close and flexible monetary policies to reduce inflation as a priority, stabilise the macro-economy and keep economic growth at a reasonable rate; stabilise the currency and foreign exchange market in line with macroeconomic developments; operate a safe financial and credit system, and comply with the laws on currency and banking. Accordingly, total payment facilities will increase by around 14-16%, credit will grow by 15-17%, and interest rates and exchange rates will be controlled reasonably in line with macro-economic balances and currency and foreign exchange market developments.

PLAN FOR 2012

Overall objectives
Sacombank will focus all of its resources on: (i) improving adaptability; (ii) increasing competitiveness; (iii) improving operational performance; (iv) creating competitive changes in service businesses and increasing the percentage of noninterest incomes, service incomes and foreign exchange business in order to create a sustainable income framework for Sacombank; (v) improving labour productivity and service quality at business units; (vi) implementing and thoroughly understanding strict saving and waste prevention policies systemwide; (vii) promoting abilities, enhancing creativity, self-control and self-responsibility in all business units and in all the Banks employees. All these activities are aimed at fulfilling Sacombanks plan for 2012 under the motto of SAFETY AND EFFICIENCY.

Key financial targets

Targets (VND billion) Total assets Equity Charter capital Total deposits from customers Total lending balance Profit before tax Operational safety targets: Capital Adequacy Ratio (CAR) Ratio of current capital used for medium/long-term lending Ratio of investment in fixed assets Subsidiary funding ratio Capital contribution percentage for share purchase Delinquency ratio > 9% < 29% <50% < 25% < 40% < 2,5% 2012 Plan 165,000 18,500 14,069 124,800 91,500 3,800 (+/-) from 2011 18 % 30 % 31 % 20 % 17 % 39 %

ANNUAL REPORT 2011

48

oBJECtIVES AnD PLAnS FoR 2012

FOCAL TASKS AND SOLUTIONS

n

Strictly follow the Strategies for the period of 2011-2015 for key targets in order to build detailed action plans to achieve the objectives set out, ensuring payment of 14-16% dividends approved by the General Meeting of Shareholders; Strictly comply with the regulations and policies of the Government and the State Bank of Vietnam in relation to business administration, ensuring that the safety ratios of the industry are attained in accordance with international standards; Focus resources on promoting fund-raising as a leading objective in order to ensure the fund-raising lending balance, and gradually reduce the ratio of lending to fund-raising to under 80% in the context of increasing

competition for fund-raising by various investment channels;

n

Promote network advantages to boost stable fundraising from residential customers. The objective of network development must be associated with fundraising and service diversification. Promote the advantages and potential of each geographical area to boost dispersed lending with focal targets; Control credit growth in accordance with plans and capital growth rates for each business unit. Continue to review and restructure the customer base and

49

ANNUAL REPORT 2011

REPORTS

lending portfolio in accordance with the orientation and characteristics of each geographical area/region in order to ensure sustainability and efficiency;
n

integrating modern technological applications into advanced products and services and shortening the transaction time for customers;
n

Review and assess the existing product system to make improvements, whilst simultaneously studying and developing new products which fit the characteristics of each geographical area/region and are highly competitive, especially in new markets such as Laos and Cambodia; Research, develop and launch additional products and services, especially Card, Electronic Banking, Asset Management services, etc. in order to increase the percentage of service incomes to create a growth breakthrough in 2012 and subsequent years; Review and assess unprofitable assets in order to increase available capital resources, tightly manage liquidity and professionalise the use of funds raised; Monitor market developments and utilise opportunities for investment in Government Bonds in order to improve business performance and improve liquidity for the Bank. Develop liquidity provision plans to enhance the sense of initiative in business activities; Set out specific solutions for each business unit to improve the business performance and productivity of employees. Associate performance evaluation and job assignments with productivity and quality; Improve the ability to coordinate and support the business activities of Subsidiary Companies and overseas operations, especially for the main business lines. Focus on the objective of achieving the expected rate of return set out. Simultaneously, increase inspection and supervision in order to ensure safety in operation and prevent probable risks; Increase resources to complete banking technology modernisation projects early, especially the T24 upgrade and Electronic Banking projects, creating a platform for

Continue restructuring by increasing direct sales forces; boost training in order to increase the sales forces in accordance with the restructuring model, ensuring the statutory ratios of Direct sales people : Indirect sales people : Support people and Consultants : Tellers; Develop and complete the standard labour productivity evaluation model for all job titles throughout the Sacombank system for the purposes of training, development and improvement of quality in operations, focusing on direct sales people by means of salary and bonuses to encourage improvement of business efficiency and performance. In addition, continue to work on maintaining a friendly working environment to attract and retain talent.

n n

In general, 2011 ended with great changes in the economy and the Governments macroscopic policies which have significantly affected the operation of the banking sector. However, with the rich experience and smart leadership of the Board of Directors and the flexible, robust, responsible and dynamic management by the Board of Management along with the constant efforts of the Regions, Branches, Subsidiary Companies and the Subsidiary Bank, Sacombank has overcome all obstacles to fulfill its material plans and objectives. In 2012, it is forecast that Vietnam and other economies will continue to face great difficulties. However, with the advantage of the youthful force and zeal of over ten thousand employees in the system across the three countries of Vietnam, Laos and Cambodia; along with the focus on self-help and the flexibility before changes in the market, Sacombank is fully confident in its adaptability and competitiveness and its determination to transform challenges into opportunities and fulfil its business plan for 2012, taking a firm step towards the successful implementation of its Development Strategies for the new period.

ANNUAL REPORT 2011

50

STRATEGIC ORIENTATION FOR 2011-2020 PERIOD

STRENGTHENING INTERNAL DEVELOPING SUSTAINABLY RESOURCES market of Vietnam. However, only just over a decade later, Sacombank has become the Bank of the Indochina Region with a network covering almost two thirds of the country, from Ca Mau to the Northeastern mountainous region, along with its entry into the financial markets of Laos and Cambodia over three years ago. The story is not only about Sacombanks large network, with 408 Transaction Offices today, but also its impressive growth, showing the financial strength of a dynamic, private bank which is brave in thought and actions: its initial charter capital of VND3 billion has grown to VND10,740 billion today. All of this shows that, for the past 20 years, Sacombank has chosen the right development direction for itself and has a good, up-to-date vision. Those enterprises which have good business strategies and long-term vision and are able to set their position and business plans in line with the circumstances of the macroeconomy, after the stages of incorporation, emergence and strong development, will be able to overcome saturation and depression to approach a strengthening (maintaining stability) and sustainable development period. Sacombanks past and present experience shows that 2011-2012 will be a strengthening period for the Bank with proactive adjustment of business expansion plans, focusing on maintaining all stable activities and/or proper growth in accordance with the growth rate of the banking industry and in harmony with the benefits of shareholders and customers and ensuring the livelihoods and jobs of the nearly 10,000 employees of the Bank. The Bank will then launch business strategies that have proved to be strong in order to maintain its position as the Top Commercial Bank in Vietnam, or even the Top Commercial Bank in the Region.

2011 was a transitional year for the launch of the Sacombank Development Strategies for the period of 2011-2015, with a vision up to 2020 approved by the 2012 General Meeting of Shareholders, with the vision of becoming the Top Retail Bank in the Region. Having experienced financial crises in the region (1997) and the world (2008-2010), Sacombank has a thorough understanding of the many challenges that the finance and banking sector may face as the economy changes. Accordingly, in its development strategies for each period, Sacombank always sets out appropriate Objectives and Solutions and a Roadmap, which are in line with the development orientation of the Government and the banking sector, and prepares back-up plans in response to changes in the business environment. The focal point of the development strategies for the new period of 2011-2020 is: Strengthening internal forces for developing sustainably.

2011-2012 period: Stabilising and strengthening to create a firm foundation

Vietnam is becoming ever more integrated into the world economy and will be influenced by the general changes in the global economy. The Vietnamese Government has been introducing market-oriented economic reforms, gradually eliminating protection for industries, especially in the finance and banking sector, in order for the economy to genuinely operate according to market rules. This will create significant challenges for Vietnamese commercial banks that find themselves in competition with large global financial institutions that enter the domestic market. To Sacombank, such challenges are regarded as opportunities for development: competition will create the motivation for Sacombank in particular and commercial banks in general to constantly improve their business model and management framework, improve service quality and employee productivity, and remain constantly innovative and creative to satisfy the needs of customers, hence contributing to the development of the financial and monetary market of the country. According to many domestic and foreign experts, Sacombank is among the few banks that have shown strong and impressive growth in line with the development trends of the country in the era of economic integration. In the late 20th century, the name Saigon Thuong Tin or Sacombank was virtually unknown in the financial
51
ANNUAL REPORT 2011

2011-2020 period: Prioritising Strategic Solutions in line with market moves

(i) Human resources development strategies: Sacombank currently has almost 10,000 employees based in 47 provinces and cities across Vietnam as well as in Laos and Cambodia. Sacombank always considers human resources development to be one of the core values and the human resources as the most precious resources of the Bank. Therefore, the human resources strategies of the Bank for the 2011-2020 period were developed with a view to strengthening the quality of the existing workforce and attracting potential talent with professional and selective recruitment policies, fundamental training based

REPORTS

on job position/title, and proper assignment of jobs and segregation of responsibilities based on capabilities and professional skills. At the same time, the Banks human resources management policies in this period also target the building of a core leadership team to carry out the mission of inspiring zeal and enthusiasm in employees and stimulating solidarity and dedication in each individual in order to create the strength for the Bank to develop sustainably. Hence, human resources will give the Bank a competitive edge in the new era of development: an era of intellectuality and creativity (ii) Technology strategies continue to be one of the four most important groups of strategies of Sacombank in this period. After investing in the advanced core banking platform in the previous period, from 2011, the Bank continued to upgrade its banking technology system to the most modern version in order to (1) improve the productivity of operational employees and diversify and modernise products and services like international banks; (2) improve the competitiveness and corporate governance capabilities of the Bank. (iii) Financial strategies of Sacombank in the 2011-2020 period will serve as a firm platform for all activities of business development, network promotion, service quality improvement and productivity improvement, etc., to help the Bank deserve the title of the Bank of the Indochina Region. Accordingly, the Bank will restructure its LiabilityAsset portfolio properly to boost profit growth; increase Total Assets and raised funds by looking for long-term capital resources at reasonable costs through issuance of bills of exchange and bonds in both domestic and overseas markets; improve the efficiency of use of capital resources through concentrating capital resources on core businesses, and use expenses reasonably and allocate resources properly for high-performance business activities. (iv) Network strategies are implemented with the aim of achieving the objectives of having 600 Transaction

Offices covering the whole territory of Vietnam, as well as important provinces and cities of the two neighbouring countries of Laos and Cambodia by 2020, and of having Branches or Representative Offices of Sacombank set up in Malaysia, Singapore, the United States of America, Australia, Europe and some other countries in the ASEAN Region. Accordingly, Sacombanks solutions will focus on strengthening the existing network and expanding the reach of Transaction Offices to other geographical areas to increase business activities, improve competitive edge and gain market share and expand market coverage The risk of all risks is the human factor; Technology is the result of intellectuality and creativity; Financial strength is a firm foundation for all growths; the Network is an effective tool for expanding markets and increasing market share, etc. These are the core solutions in the order of priority, to which Sacombank will pay special attention in the period of 2011-2020. On the basis of strengthening the aforementioned key groups of Strategies, the Strategies for Business Product and Service Development Corporate Governance, etc. have also been studied and developed by Sacombank with groups of solutions and action plans interlaced and accordant with the trends of the new era. Accordingly, specific business models, multiutility, modern and geographically specific products and services, as well as risk management policies according to international standards, have also been studied, invested in and launched across Sacombanks entire system in this period. Based on the results achieved, the identified shortcomings that need to be addressed and the lessons drawn from previous periods, and on research and analysis of strengths, weaknesses, opportunities and threats in the context of the general difficulties in respect of the economy and modest internal forces of the Bank, Sacombank is very confident in its ability to achieve the objectives set out for the period of 2011-2020 in order to carry out its mission:Serving the nations.

With proper and professional management by the Leaders at various levels, as well as the strong and creative efforts of thousands of employees, along with the love and support of millions of customers, shareholders and joint venture and affiliation partners, it is certain that the ambition of the Founding Shareholders for a private Vietnamese bank to become the First Modern and Multi-functional Retail Bank in the Region will soon come true.
ANNUAL REPORT 2011

52

53

ANNUAL REPORT 2011

CORPORATE GOVERNANCE

With the aim of becoming a regional bank, Sacombank has focused on building a modern information technology infrastructure system which is one of the conditions for ensuring safe and effective operation for Sacombank in the next 10 years. At Sacombank, most of operation processes, from management, administration, inspection, supervision to other functional operations, are based on modern information technology infrastructure. On the basis of the core banking system, Sacombank has met most of requirements of technical standards, functionalities, synchronism and connection for the effective operation management .

Going in parallel with technology

ANNUAL REPORT 2011

54

HUMAn RESoURCES MAnAGEMEnt

PEOPLE ARE RESOURCES

THE

MOST

VALUABLE
From the functional aspect, these four models represent solutions to difficult human resources problems for which not all Vietnamese enterprises can find comprehensive solutions. In terms of the connection aspect, although four different aspects of human resources are mentioned, including, namely (i) recruitment; (ii) personnel management; (iii) benefits and remuneration; (iv) training and development, the full career picture of an employee is described when he or she joins the grand family of Sacombank. At Sacombank, employees do not just have one job; they have many career development opportunities. In addition, Sacombank makes constant efforts to care about job candidates. In order to do this, in addition to regular training in professional skills and capacity improvement and development of a customer careoriented way of thinking for people in charge of human resources management tasks, Sacombank has launched two projects in parallel: incorporation of technology into recruitment tools and research and application of a highly quantitative candidate ability evaluation system. With

Sacombank considers its human resources to be a core element in the four focal groups of solutions to improve competitiveness and meet development requirements in the new period. Based on this orientation, Sacombank analysed and identified the strengths and weaknesses of its existing resources in order to develop solutions to improve the human resources management framework in accordance with Sacombanks cultural features and to minimise risks arising from the human factor.

Developing an advanced management model

With the strategic objective of becoming the Top Retail Bank in the Region based on the business philosophy of Safety Efficiency Sustainability, Sacombank has developed its Human Resources Management Strategies for the period of 2011-2020 with four key models as follows: (i) (ii) (iii) (iv) Modern recruitment model. Flexible management model. Attractive remuneration model. Potential career development model.

55

ANNUAL REPORT 2011

CORPORATE GOVERNANCE

the proper implementation of these projects, combined with branding strategies in recruitment on the basis of corporate culture promotion to each market segment in flexible and effective forms, Sacombank is step-by-step affirming its strengths not only in enhancing brand value in the financial market, but also by winning the trust of and becoming a destination for potential job candidates in the labour market.

a human resources crisis, especially as the history of human resources training for the finance and banking sector of Vietnam is too short and thin. Looking at the full human resources picture of Sacombank today and yesterday, especially the group of personnel at the level of branch directors and managers of important departments or higher, now including 400 people, some of the most important and effective principles for growing people and retaining people can be recognised.
n

Respecting talent Considering people as the base

In most judgments about the future of Vietnam, the quality of human resources is always the biggest concern. The outdated education system has resulted in a lack of the knowledge and skills required to meet the needs of the era in many workers. Therefore, enterprises that directly employ human resources have repeatedly affirmed that the biggest obstacle to development is not finance, but human resources issues. With these shortcomings in the countrys human resources, enterprises have to retrain and rebuild their own human resources to meet their needs. Past experience has shown that enterprises with smart and effective human resources strategies will enjoy great achievements. In future, this will be even more important when knowledge and creativity and emotional intelligence become prerequisites for competition and development Approaching this topical issue, Sacombank has built its own effective human resources development strategies in a distinctive manner. Creative, close and suitable human resources policies are one of the most important conditions for the Banks growth, in-depth development and sustainability. Experience from the last 20 years has given Sacombank a thorough lesson in human resources, and in any of its plans for the future, people are always placed at the centre. In Sacombanks system today, there are nearly 10,000 permanent employees, and each year, there will be on average 1,000 new employees (the average growth rate for employees in recent years and the expected growth rate for the future is 10% per annum). With this personnel employment scale, a lack of close strategies from recruitment to training and retention would not only represent a challenge, but would also increase the threat of

First, identification of potential and reliable, gifted people and giving them big opportunities and attractive promotion roadmaps. Second, excellent internal training capabilities Third, sharing of values, vision and missions in a very thorough manner. Fourth, giving and receiving in a satisfactory and balanced manner. Fifth, a mechanism that creates an environment for individual creativity and individual roles, combined with strict compliance and discipline and collective strength.

n n

With this in mind, Sacombank has made efforts to build modern management models in order to not only maintain the existing human resources but also create the best conditions to boost the abilities of each employee this will also build a firm foundation for the development of the Bank. In principle, the research and development of the human resources management model at Sacombank still comply with basic scientific theories. The difference is, according to Sacombanks consistent viewpoint People are the most valuable resources of an enterprise, the Bank has tried its best to create the best, most professional and most effective working environment; Sacombanks workplace is where talented people gather to collectively deliver the greatest strength of wisdom as a leverage for the strong growth and emergence of Sacombank in the coming years.

ANNUAL REPORT 2011

56

tECHnoLoGy MAnAGEMEnt QUN TR CNG NGH

KEY SOLUTIONS
Information Technology (IT) Solutions are among the four important groups of strategies of Sacombank: (i) people, (ii) technology, (iii) capital and (iv) network. In different periods, the order of priority of these four groups of strategies may change, but IT is being increasingly appreciated with time. Through its historical milestones, Sacombank has always applied modern technology to the management and operation of its systems. With the aim of SAFE and EFFICIENT development, the Bank focused on launching the following IT solutions in 2011:
n

Much attention was paid to solutions for refining and automating data entry processes for payment and money transfer subsystems inside and outside the network. The automatic payment function was further improved for corporate and individual customers through the Electronic Banking channel.
n

Upgrade payment systems: upgrade the payment systems according to the standards of the SWIFT payment organisation in order to increase safety in international payment transactions and improve service quality. In addition, other domestic payment systems have also been strengthened and restructured step by step for more effective management, such as centralised management of the CIATD system across the entire network of the Bank, restructuring of the payment systems in partnership with Citibank, HSBC, Deustch Bank, telephone companies, power supply and water supply companies, etc.; Launch applications that help improve employee productivity: The e-office system aimed at developing a general information portal which provides employees with necessary information, research and work scheduling tools, as well as incorporating paper business processes into the system step by step in order to minimise the time required for circulation of documents and reduce expenses. Other management systems were also launched and automated, such as a system for managing important papers and publications, a cash management system, and a system for evaluation of employee KPIs; Launch innovations in the processes in the core banking system, which is being upgraded to the new version T24/R11, and other applications: requirements for improvement of processes, simplification of data entry steps and provision of additional management requirements in order to ensure safety and efficiency in the operation of the systems throughout 2011.

Launch a virtualisation system on a medium-level storage platform: the medium-level storage system with low investment cost and a large expansion capacity served as a good platform for building a virtualisation system and an initial platform for cloud-computing applications in banking. This system has helped the Bank reduce its expenses for storage space, electricity, cooling system and system maintenance considerably. In addition, the virtualisation system enhances system safety and minimises the time required for launching new systems.

On the basis of the technology platforms launched in 2011, the information technology systems of the Bank have been improved step by step and solutions have been developed to meet increasing operational requirements from 2011 to 2020. Key solutions include:
n

Diversify products and improve labour productivity. Continuously upgrade the T24 system as scheduled. Coordinate operations to constantly innovate manipulation processes and improve the productivity of operational employees; Launch products and services on the e-channel;

Improve competitiveness. Develop and complete the Management Information System (MIS), heading for development of a decision making support system and a knowledge base of Sacombank; Plan and deploy the upgrade of network infrastructure to increase the speed of transaction processing and meet the requirements for launching modern products and services;

57

ANNUAL REPORT 2011

Data Center

Launch the virtualisation system in order to enhance the readiness of systems, reducing electricity charge and storage space of servers at the Data Center.
n

Operate with safety and confidentiality. Launch disaster recovery plans (DRP) in order to enhance the operational stability of systems; Develop a back-up Data Center for DRP solutions and satisfying the Banks needs. Implement the ISO27001 standard for information security and confidentiality standardisation. Launch tools for monitoring IT services; launch the Information Technology Infrastructure Library (ITIL) for standardisation of IT services.

Ensure cost efficiency in the provision of IT services. Enhance the usability and the ability to share information technology devices; Make IT investments in accordance with the total investment cost of the owner (TCO), not only low starting costs. Improve the knowledge and skills of employees to make the best use of IT resources.

Enhance awareness of new information technology to ensure selection of the best solutions for the Bank in future.

ANNUAL REPORT 2011

58

FInAnCIAL MAnAGEMEnt
FINANCIAL RESTRUCTURING WITH THE AIM OF SAFETY AND EFFICIENCY
In 2011, the Vietnamese economy faced many challenges due to domestic difficulties and international uncertainties. Macro-economic uncertainty and high inflation had a significant impact on the financial and monetary market. Affected by the central banks monetary tightening policy, many banks with low VND liquidity had to raise deposit interest rates sharply. The result was an increase in loan interest rates and a slowdown of business activities for enterprises. Numerous enterprises decreased their demand for loans, impacting the credit growth rate in 2011 and credit growth was much lower than in previous years. Consequently, the financial performance of many banks was significantly affected, and appropriate adjustments were made to adapt to this new business environment. In this economic environment, Sacombank actively and flexibly managed its business activities in line with the SAFE OPERATION EFFICIENT BUSINESS & SUSTAINABILITY approach after years of high growth compared with the average growth rate of the banking industry. Therefore, the Banks growth rate in 2011 was controlled properly to achieve key targets and exceed the planned profit goals within predetermined safety guidelines. In 2012, the Bank anticipates a mixture of opportunities and challenges. The Governments tight monetary policies are expected to continue, with interest rates to be gradually reduced in order to help enterprises to overcome difficulties, which means that banks will continue to face difficulties in attracting deposits. In addition, permissible limited credit growth (around 15%-17%) will present a difficult problem for banks in terms of meeting customer demand and achieving business performance goals. On the other hand, bad debts and bad debt handling will continue to be a topical issue for the banking industry in 2012, as the standard bad debt ratio is believed to be much higher than the quoted ratio of 3.4%. Therefore, safety and performance indices, such as Capital Adequacy Ratio (CAR), rates of return (ROE, ROA), bad debt ratio and loan portfolio, etc. will be closely controlled by the State Bank of Vietnam. Accordingly, the bad debt ratio and safety indices of each bank and the banking industry as a whole may have an impact on peoples trust, and this is likely to be an important factor in the restructuring of the banking sector and individual banks in future. In parallel, the requirement that banks improve their financial capacity in line with the roadmap for accession to the WTO, the business performance pressure, the requirement to enhance operating safety standards, etc. are urgent problems that need early resolutions; and the merger-consolidation solution for certain weaker banks is likely to be an indispensable trend in future. Those banks that can adapt to market developments, set out proper corporate resolutions and restructuring programs, and capitalise on the opportunities will improve their financial position and competitive edge, thus creating breakthroughs in the new development period.

59

ANNUAL REPORT 2011

OBJECTIVES AND MANAGERIAL RESOLUTIONS OF SACOMBANK In order to build a firm foundation, strengthen internal capabilities and achieve confident advancements, in its Development Strategies for 2011-2015, Sacombank has set out some key business directions for the new period in order to restructure its asset portfolio and financial structure. The specific objectives and resolutions include: Objectives 1. Increase equity capital on the basis of making the most of supplementary capital, and use this capital effectively in order to quickly improve financial capacity and operating safety indices 2. Grow total assets and increase the percentage of profitable assets; constantly improve capital use efficiency by restructuring Assets - Liabilities with concentration of capital resources on core business activities; 3. Strive to achieve a Rate of Return not lower than the average rate of the group of top banks in Vietnam; 4. Keep financial indices and operating safety indices compliant with the regulations of the State Bank of Vietnam and international standards.

ANNUAL REPORT 2011

60

FInAnCIAL MAnAGEMEnt
RESOLUTIONS 1. Reasonable increase in equity capital: According to international and Vietnamese standards, one of the areas that needs managements attention is equity capital in order to improve the Capital Adequacy Ratio (CAR). The goal is to improve the Banks financial capacity to overcome market difficulties. In equity capital management, a reasonable growth rate is always set out in order to ensure financial capacity. The success of the capital increase strategy in the past should be promoted again with mobilisation of capital from residents from all walks of life, as well as all domestic and foreign economic sectors. The Banks commitment is to increase shareholders value, maintain a stable dividend distribution rate, and ensure that the price of its shares grows at a better rate than the market. 2. Development of supplementary capital to increase equity capital: Taking advantage of the brand reputation and creating and strengthening relationships with international financial institutions to attract supplementary capital at reasonable costs in order to diversify capital resources, making stable use of capital and increasing operating safety indices. This is an important funding source to increase equity capital and is also a long-term foreign currency capital resource at reasonable costs, with which the Bank can meet capital needs of the economy. 3. Restructuring of Assets and Liabilities in order to increase the percentage of profitable Assets:
n

For Assets: Developing a reasonable and targeted structure for each Asset item: (i) Restructuring and diversifying the loan portfolio, better managing changeable industries; (ii) Continuing dispersed lending and import/export financing; improving the ATM and POS systems; (iii) Reviewing and re-allocating Assets in a reasonable manner, and minimising inefficient assets in order to optimise the Banks capital structure.

4. Increase in asset use efficiency: Managing quality and increasing asset use efficiency through the following ratios: loan to deposit ratio, bad debt ratio, rate of profitable assets to total assets; Rate of Return On Equity (ROE); Rate of Return on Assets (ROA); Earnings Per Share Ratio (EPS), etc. 5. Reasonable allocation of resources to each core business sector: (i) Conducting analysis and assessment to obtain grounds for optimal allocation of capital resources in line with the strengths and features of each business sector; (ii) Centralising coordination among all business sectors of Sacombank for smooth management and for the best business performance; (iii) Allocating costs by product lines and programs based on the principle of accurate and adequate calculation to obtain grounds for the assessment of the effectiveness of resource allocation and the introduction of proper reward policies. 6. Market-oriented NIM (net interest margin): Interest income represents a major percentage of the income from operating activities at Vietnamese banks currently, so a targeted NIM should be determined for each period in order to establish an income structure optimisation resolution. In addition, periodic reviews of the asset portfolio should be conducted to further increase the percentage of profitable assets. For nonprofitable assets (except for fixed assets), it is necessary to determine the time of holding and conversion into cash, consider and determine the maximum value of such assets and prevent additional non-profitable assets from arising. 7. Compliance with financial and operating safety indices:
n

For Liabilities: Diversifying the liabilities structure in order to stabilise capital resources for business needs, especially focusing on medium and long-term capital resources through the following measures: (i) Creating a mechanism for maintaining and developing capital resources mobilised from economic organisations and residents, with attention paid to customers that have large and stable operational scale; (ii) Promoting the Banks network strengths, especially the system of Transaction Offices, in order to attract stable capital resources from the local communities; (iii) Utilising trusted funds from foreign financial institutions; (iv) Studying capital markets and selecting the right time to gradually increase the percentage of issued bonds in order to stabilise capital resources in line with the current and future development trends of the economy.
ANNUAL REPORT 2011

Capital Adequacy Ratio (CAR): (i) Reviewing and restructuring the Banks separate and consolidated

61

asset portfolio with risks with the aim of restricting the growth of assets with a risk coefficient higher than 100%; (ii) Using Equity Capital for the core operating activities of the Bank, as the first priority; (iii) Increasing charter capital as scheduled and taking advantage of Sacombanks brand reputation to boost negotiations with international financial institutions to increase supplementary capital at reasonable interest rates;
n

Liquidity: Ensuring optimal profitability, high liquidity and strict compliance with regulations, as well as the ability to pay financial obligations due and maintain reasonable reserves. In addition to ensuring that cash and cash equivalents are properly maintained, a proper governmental bond portfolio should be held continuously in order to ensure that liquidity is always coordinated in an absolutely safe manner.

Corporate governance: (i) Closely managing operating risks; (ii) Monitoring ratios related to expenses and incomes in order to assess and control expenses in an efficient manner; (iii) Optimising operating performance and efficiency through productivity criteria for all business units across the Banks system; (iv) Managing, supervising and developing the Banks network comprehensively to make the best use of network advantages, especially the system of Transaction Offices. With the increasing standardisation and restructuring activities in line with economic changes, and with its rich experience in development, Sacombank has boosted its strengths; grasped opportunities to set out financial restructuring objectives and resolutions in order to improve itself; minimised business threats; and made the necessary preparations to step into a new development period.

Sacombanks core business strategy is to always ensure operating safety and business performance at a stable and proper growth rate for each period. In the coming years, this strategy will be further promoted in order to enhance the Banks position and competitive ability in the financial and monetary market. Sacombank is making contributions to the sound development of the banking sector of Vietnam during this period of restructuring and increasingly extensive and intensive international integration.
ANNUAL REPORT 2011

62

nEtWoRK DEVELoPMEnt
Network and strategic vision
With the aim of becoming the top modern multifunctional retail bank in Vietnam, from its inception, Sacombank has always had the ambition of bringing its products and services to all people in all parts of Vietnam. Sacombank pinpointed Network Development as one of the four key solutions for realising this aspiration in its Development Strategies for the period of 2001 2010 to keep pace with the general development trends of the economy in order to increase market share, expand its markets and create a foundation for future sustainable development. Over the past 20 years, well aware of the strategic importance of network expansion, Sacombank has made great efforts to overcome the many difficulties and challenges on its development journey, constantly investing resources in specific geographical areas and applying suitable and flexible solutions to exploit the potential of the local markets to the maximum. As a result, the network development strategy for the past 10 years has been a complete success, and Sacombank has become the commercial joint stock bank with the largest business network in Vietnam in terms of quantity and quality, as reflected by the achievement of the following important milestones:
n

term. However, thanks to the consistent implementation of systematic and careful market surveys and research in order to select the right operational areas that match the potential and the growth rate of the local economy; the launch of diverse and multi-utility products and services which suit the specific characteristics of each geographical area and whole-hearted, thoughtful and professional customer service and care by its employees, Sacombanks network soon proves effective and efficient. Most transaction offices were in a profitable position after six months operation, making significant contributions to the general development of the entire Bank. In addition, with its large network, Sacombank has brought people the opportunity to access capital resources and banking products and services, meeting the increasingly high demands of consumers, as well as providing assistance to enterprises in business development. Therefore, Sacombank has become a familiar and reliable brand in the hearts of people and economic sectors in all parts of the country, and affirmed its position and reputation to domestic and foreign financial institutions and organisations.

Solutions for boosting network strengths

With socio-economic development, peoples living standards have improved, and requirements for banking products and services have become increasingly diverse. Therefore, banks with large networks will have a greater advantage in terms of competition and increasing market share. In the coming period, sticking to the strategic orientation initially set out, Sacombank will continue to strengthen and develop its business network. The network will be used as leverage for growing revenues through radical solutions with proper prioritisation and accordant with existing resources in order to further improve business performance with the following detailed solutions:
n

On 11 October 2007, Sacombanks network covered 13 provinces and cities in the Southwestern Region; On 28 December 2007, Sacombank covered 21 provinces and cities in the northern part of the Central Coastal Region, the Southeastern Region and the Central Highlands Region; Sacombank opened the first branch of a Vietnamese commercial bank in Laos (on 12 December 2008) and Cambodia (on 23 June 2009).

By late 2011, Sacombanks network consisted of 408 transaction offices, and the Bank had a presence in 47 of the 63 provinces and cities of Vietnam as well as in Laos and Cambodia. Network development requires significant investment in terms of capital, infrastructure and facilities and human resources, so it has a marked impact on the financial indices and business performance of the Bank in the short
63
ANNUAL REPORT 2011

First: comprehensive standardisation of the system of existing transaction offices, creating a uniform brand identity in the eyes of customers to improve competitiveness; Second: continuation of research and surveys for the establishment of new transaction offices, and strengthening or relocation of low-performing transaction offices to other operational areas;

CORPORATE GOVERNANCE

Third: building the business network as a network of sales units that provide diverse products and services, especially boosting operational scale at Transaction Offices like downsized Branches, making transaction offices active in growing incomes; Fourth: improvement of service quality to maintain and develop a stable customer base comprising local residents, development of a professional sales and service development culture, and attracting customers with high-quality products and impeccable service; Fifth: constant upgrading of the banking technology systems; maximising the exploitation of technological applications in corporate governance activities; development of new products, especially electronic banking products, on the basis of modern technology to provide more convenience to customers and improve employee productivity;

Sixth: training and improvement of the quality of human resources to fulfill development strategies and provide additional human resources when needed in a timely manner.

In short, the network development activities throughout Sacombanks history have not only created a firm foundation for the coming period, but also facilitate customer access to modern financial products and services, meet the needs and improve the living standards of the people, assist enterprises in their business expansion and performance improvement, and contribute to the development of the local economy. The success of the network development strategies of Sacombank has affirmed the maturity and growth of Vietnams commercial banking sector in the process of global integration

43 37

44

45

45 366

47

310

408

247 207 16 90 18 159

13 8 4 35 2001 2002 2003 55 75

103

2004

2005

2006

2007

2008

2009

2010

2011

number of transaction office

Presented Location

ANNUAL REPORT 2011

64

RISK MAnAGEMEnt
IMPROVEMENT OF EFFICIENCY IN COMPREHENSIVE RISK MANAGEMENT
Credit risk management in accordance international standards and practices with
n

Facing increasing credit risks, Sacombank applied a number of synchronous credit risk management solutions in 2011 in accordance with the regulations of the State Bank of Vietnam and international standards. The details are as follows:
n

Issued regulations relating to the system for decentralisation of credit grant decisions to ensure that all matters relevant to credit risks are communicated and dealt with thoroughly from the headquarters to branches. The decision-making system was developed based on the experience, capabilities, knowledge and ethics of the individuals involved in the process of credit grant decision-making, and, above all, the risk appetite of the Bank.

Issued credit risk management policies covering all matters related to credit granting, including: applicable conditions, and methods of inspection, supervision, management and recovery of loan debts in order to limit the risks for each specific customer. Developed an advanced internal credit rating system in cooperation with the international audit firm, Ernst & Young, on the basis of the credit rating model recommended by the advisor, IFC, to Sacombank in 2005. As a result, Sacombank has improved its internal credit rating system in accordance with the new regulations on qualitative classification of debts in the policies issued by the State Bank of Vietnam (SBV) in 2011. This system also develops criteria for scoring credit ratings for customers by groups of industries for which some distinctive credit products of Sacombank are designed. This is an effective tool for evaluating borrowers and making lending decisions and it helps Sacombank assess accurately the risk exposure of each loan and classify debts in accordance with international practices, and serves as the basis for improving the quality of credit management and proper provision making. In 2012, Sacombank will continue to develop the Expected Default Frequency of customers, hence determining the amount of exposure created by each customer in order to prepare plans to help the customers and make provision for risks immediately upon grant of credit.

Moreover, Sacombank has built and successfully operated the Credit Limit Supervision Model, the IFRS-based Risk Provisioning System, the Risk Factor Supervision Model, and a technology-based money filtering and anti-laundering process according to international standards, etc. Thanks to the above models and systems, the Bank can manage risks effectively in the context of high increases in bad debts and overdue debts. Based on the principle of setting Safety as the top-priority objective, the risk management activities have been carried out carefully by Sacombank to create the best foundation for overcoming challenges, grasping suitable business opportunities in the market, boosting business performance and fulfilling its business plan in 2011. Sacombank has also promoted the role of Committees/Sub-committees in the prevention and handling of overdue debts at the Head Office and in the Regions in order to provide timely alerts and solutions to overdue debt threats, thus succeeding in keeping the bad debt ratio at only 0.56% and the overdue debt ratio 0.86% of the total lending balance in 2011.

Priority for liquidity and market risk management

In 2011, Sacombank successfully developed and applied a liquidity risk and interest risk management model recommended by its advisor, PwC. Based on this model, Sacombank was able to forecast highly accurately the trends of cash flows, interest rates, and customers past behaviours, so that it could make proper adjustments to its business activities in each period.

At Sacombank, most employees involved in the business activities of the Bank are carefully selected and trained systematically and scientifically in both professional knowledge and business ethics in order to provide a workforce that is skilled, honest and responsible.
65
ANNUAL REPORT 2011

Results for some operational safety indices of Sacombank as at 31 December 2011 Percentage of current portion of medium/long-term loans Consolidated capital adequacy ratio Single-entity capital adequacy ratio Solvency ratio on exchange date VND USD EUR GBP Sacombank 22.36% 13.18% 11.66% 21.40% 156% 355% 822% 19.872% Stipulated by SBV <=30% >=9% >=9% >=15% >=100% >=100% >=100% >=100%

The human risk factor is set at the top

On the basis of the awareness that the risk of all risks is the human factor, Sacombank has set out specific groups of solutions in order to minimise the risks relating to business ethics. The details are as follows First: focus on recruitment and professional training. Second: create a transparent working environment; Third: associate controls with processes, rules, decentralisation and application of information technology; Fourth: fair and timely rewards and punishments..

At Sacombank, most employees involved in the business activities of the Bank are carefully selected and trained systematically and scientifically in both professional knowledge and business ethics in order to provide a workforce that is skilled, honest and responsible. With the aim of further improving the quality of business operations, last year, Sacombank focused resources on strengthening, correction, improvement and restructuring and has achieved praiseworthy results. This has created a firm ground for Sacombank to develop Safely and Efficiently in the coming years.

ANNUAL REPORT 2011

66

InFoRMAtIon FoR SHAREHoLDERS

CHANGES IN SHARE CAPITAL IN 2011

In 2011, Sacombank increased its charter capital from VND9,179 billion to VND10,740 billion, in accordance with the charter capital increase plan approved by the General Meeting of Shareholders on 2 April 2011, as follows: Type of shares: Par value: Beneficiaries: New share issuance ratios: Issuing price: Ex-date: Record date: Approval by HOSE: Official issue date: Number of shares issued: Cash dividends Payment ratio: Number of shareholders: Dividend amount paid: Dividend payout ratio: Shares distributed to existing shareholders Number of shares registered for distribution: Number of shareholders: Number of shares distributed: Number of shareholders receiving new shares: Share issuing allotment ratio: Shares distributed to key personnel Number of shares registered for distribution: Number of employees: Number of shares distributed: Number of employees receiving new shares: Share issuing allotment ratio:
67
ANNUAL REPORT 2011

Common shares VND10,000 (Ten thousand Vietnamese Dong per share) Existing shareholders and key personnel 15% (cash dividends), 15% (new shares issued to existing shareholders) and 2% (shares issued to key personnel) in accordance with the Resolution of the 2010 AGM VND10,000 per share 10 August 2011 12 August 2011 Official Letter No. 963/2011/TB-SGDHCM dated 29 November 2011 of the Ho Chi Minh City Stock Exchange 7 December 2011 156,044,651 shares, comprising:

15% (VND1,500 per share) 69,596 VND1,337,129,746,500 15%

137,688,451 shares 69,084 137,688,451 shares 32.968 100%

18,358,460 shares 1,559 18,356,200 shares 1,324 99.99%

NUMBER OF STB SHARES BY YEAR

1,073,967,664 917,923,013

670,035,300 511,583,084

444,881,417

208,941,281

2006

2007

2008

2009

2010

2011

ANNUAL REPORT 2011

68

InFoRMAtIon FoR SHAREHoLDERS

PROFIT DISTRIBUTION AND DIVIDEND PAYMENT
Unit: VND

Indicators 1 Profit before tax 2 Corporate income tax payable 3 Profit after tax 4 Gain from foreign exchange differences revaluation at the end of the fiscal year A Profit after tax (exclusive of gain from foreign exchange differences) C Transfer to Financial Reserve Fund D Profit after tax and statutory reserves E F Transfer to Investment and Development Fund Transfer to Bonus and Welfare Funds Transfer to Bonus Fund

Notes

Percentage Amount 2,740,230,457,453 707,044,809,595

(1) - (2)

2,033,185,647,858 2,310,374,727

(3) - (4) 5% 10% 0% 7% 6%

2,030,875,273,131 101,543,763,657 192,933,150,947 1,736,398,358,527 225,731,786,609 121,547,885,097 104,183,901,512 1,503,554,729,600 0

B Transfer to Reserves for Supplementary Charter Capital A x (A - B) x A-B-C Dx Dx Dx

G Transfer to Welfare Fund In which profit of the previous year was used for dividend payment I J Profit after tax, statutory reserves and dividend payment Performance bonus as per General Meeting of Shareholders Resolution

H Dividend (Charter capital x Dividend payout ratio) 10,739,676,640,000 14%

D-E-F-G-H 20% of profit after tax & statutory reserves I - J + (4)

7,111,842,318 5,159,556,168 4,262,600,877

K Residual profit including gain from foreign exchange differences

23.53%

Vietnamese individual shareholders Vietnamese corporate shareholders

53.54%

4.48%

Foreign individual shareholders Foreign corporate shareholders

18.45%

69

ANNUAL REPORT 2011

CORPORATE GOVERNANCE

SHAREHOLDING STRUCTURE AT 31 DECEMBER 2011

Total number of shareholders Vietnamese individual shareholders Vietnamese corporate shareholders Foreign individual shareholders Foreign corporate shareholders 69,602 68,351 478 696 77

SHAREHOLDERS BEING MEMBERS OF THE BOARD OF DIRECTORS, THE BOARD OF SUPERVISORS AND THE BOARD OF MANAGEMENT (As at 31 December 2011)
No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Full name Mr. DANG VAN THANH Mrs. HUYNH QUE HA Mr. NGUYEN CHAU Mr. PHAM DUY CUONG Mr. DANG HONG ANH Mr. NGUYEN NGOC THAI BINH Mr. LIM PENG KHOON Mr. NGUYEN TAN THANH Mr. LE VAN TONG Ms. NGUYEN THI THANH MAI Mr. TRAN XUAN HUY Mr. NGUYEN DANG THANH Mr. LY HOAI VAN Mr. PHAM NHAT VINH Ms. QUACH THANH NGOC THUY Mr. NGUYEN MINH TAM Mr. DAO NGUYEN VU Current Position Chairman of the BOD First Vice Chairwoman of the BOD Vice Chairman of the BOD Member of the BOD Member of the BOD Member of the BOD Independent Member of the BOD Chief Supervisor Member of the BOS Member of the BOS Chief Executive Officer Deputy CEO Deputy CEO Deputy CEO Deputy CEO Deputy CEO Deputy CEO Shareholding percentage 3.98% 1.38% 0.01% 0.04% 3.46% 0.24% 0.00% 0.10% 0.06% 0.02% 0.04% 0.01% 0.01% 0.01% 0.01% 0.03% 0.03% BOARD OF DIRECTORS

BOARD OF SUPERVISORS

BOARD OF MANAGEMENT

Transactions of STB shares by members of the BOD, BOS and BOM and their related persons up to 5 December 2011 included 7 purchases and 13 sales, with total transaction volume of 159,379,737 shares.

ANNUAL REPORT 2011

70

InFoRMAtIon FoR SHAREHoLDERS

INVESTOR RELATIONS
In line with its Transparency Strategies, Sacombank is committed to protecting the benefits of its shareholders and investors. This business philosophy has received strong support from investors and served as a basis for investors to accompany Sacombank for the long term in its development journey. At Sacombank, great progress has been made in investor relations activities, from performing the basic function of required disclosure of information, to actively building and developing investor relations to enhance the brand value and image of Sacombank in the market. Always treating the investors benefits as its highest priority, Sacombank has constantly standardised the processes relating to its investor relations activities in order to ensure that all of its activities are conducted in line with the high standards required of a listed organisation, especially when the stock market is on its way to comprehensive integration under WTO commitments. In 2011, Sacombank continued to strengthen and develop professional investor relations activities according to the following strategies:
n

Active provision of information With complicated developments in the economy, especially the stock market of Vietnam, in 2011, investors have been increasingly careful in their investment decisions. Most medium/long-term investors only select blue-chip shares to invest in because of their safe basic financial indicators. STB shares, the most liquid shares in the stock market, have always attracted a lot of investors.

71

ANNUAL REPORT 2011

CORPORATE GOVERNANCE

As a large and responsible listed organisation, Sacombank has primarily focused on actively providing information to investors and answering all their questions. Each quarter, Sacombank issues the bilingual Investors Bulletin in Vietnamese and English to provide updates on the macro-economy and new regulations and policies of the State Bank of Vietnam, and financial indicators of Sacombank which are of interest to domestic and foreign investors such as: the lending structure, growth of total assets, profit, capital raised, debt balance, etc. In addition, Sacombank has frequently met with domestic and foreign investment funds; conducted in-depth research on the needs and expectations of investors, and answered questions and provided prompt feedback in response to inquiries from the authorities and investors, etc. All of these activities were aimed at best meeting investors need for information.
n

TASKS AND SOLUTIONS FOR 2012

In 2012, with increasingly intensive international integration, Sacombank has made ready plans to further develop investor relations activities, and implement and promote additional functions that are necessary for a modern and dynamic listed organisation as follows:
n

Improving Investor Relations activities Sacombank is carrying out a comprehensive overhaul of the Investor Relations Section on its official website. Further, a lot of new content will be developed and the quality of information will be improved. This will facilitate access by shareholders, investors and financial analysts to sufficient, accurate and genuine information.

Effective management of information on shares As STB shares are among the most attractive shares on the stock market of Vietnam, information relating to the shares must be transparent and accurate because all investor decisions need to be based on genuine, sufficient and reliable information. Therefore, to Sacombank, the management of information is no longer just an obligation under the laws, but represents the responsibility of a listed organisation to the community of investors. In 2011, the key task in terms of investor relations was to boost management of information relating to STB shares, to maintain the value of STB shares in the market. The Investor Relations team has actively and closely monitored all information in the market that is related to Sacombank and STB shares and implemented timely solutions to minimise damage to the assets of the shareholders and investors. In addition, Sacombank has excelled in its role in modern investor relations activities through active participation in interviews conducted by newspapers and television reporters, thus exerting a positive influence on shareholders and investors. As the highest representatives for the benefits of shareholders, with their position and reputation, leaders of the Bank have consolidated the trust of shareholders and investors in Sacombank by showing up in a timely manner whenever necessary.

Further bettering the Investors Bulletin As an official information channel, the Investors Bulletin will be completely overhauled in 2012 in terms of both form and content. Accordingly, readers will not only receive updates on featured financial market news, but will also have access to the latest and most comprehensive information on the operational summary, analyses, and assessments, as well as short-term development plans of the Bank. Exploiting and building relationships with international organisations Due to the global economic depression, funds raised from foreign investors have decreased significantly. Therefore, Sacombank has focused its resources on building relationships with international financial institutions to raise funds and learn knowledge and strategies relating to business development, as well as the most modern corporate governance methods from them in order to meet Sacombanks needs for development and international integration, especially in preparation for strong expansion to other countries in the region.

Over the 20 years of its development, Sacombank has built firm confidence among customers, partners, shareholders and investors. From this achievement, Sacombank will continue to strengthen and develop investor relations activities to enhance the brand value of Sacombank, especially in this era of intensive internationalisation.

ANNUAL REPORT 2011

72

SoCIAL RESPonSIBILIty
In business, Sacombank does not pursue profit at any price, and social responsibility is considered an indispensable element of its business strategies. Through active investment in environmental protection and anti-climate change programs and projects; the establishment of a study promotion fund and a charitable fund; the launch of a gymnastics and sports practice movement in each area of operation, etc., Sacombank is making practical contributions to the socio-economic development of each region and country in which it has a presence, according to the motto Serving the nations.

ENVIRONMENTAL RESPONSIBILITY
With its awareness of the environmental pollution that is rapidly spreading through Vietnam, seriously affecting peoples health and lifespan, and threatening the natural resources of the country, Sacombank, as a responsible financial institution, has developed its Environmental Policy based on the principle of sustainable development and has always associated environmental responsibility with its business activities and daily routines, as follows:
n n n

Classifying environmental risks in business activities; Maintaining and paying attention to environmental protection and social responsibility in business activities; Focusing on environmental protection and sustainable use of natural resources as well as compliance with social principles when granting credit to any enterprise or individual; Balancing environmental and social matters with financial priorities, etc.

73

ANNUAL REPORT 2011

CORPORATE GOVERNANCE

Of these, Sacombank focuses special attention on integrating environmental protection into credit activities. Sacombank has developed a set of Green Credit standards to classify investment projects into three levels: Class A projects with high environmental risks, Class B - projects with medium environmental risks and Class C - projects with the lowest environmental impacts. Hence, Sacombank plans to participate in the supervision of the implementation of the measures for mitigation of environmental risks agreed with customers in order to minimise the environmental impacts of the projects. With its investment in, and study and development of environmental and social responsibility management policies, along with its plans to launch green credit packages across the entire system, Sacombank is making significant efforts to become a Green Bank.

JOINING HANDS FOR THE COMMUNITY

n

With the aim of developing a civilised urban lifestyle, since October 2010, Sacombank has built Free Public WCs (FPWCs) in such areas as Tan Phu District HCMC (opening on 30 March 2011), Da Lat City (opening on 27 December 2011), and Vung Tau City (opening on 28 December 2011). In order to create a quality FPWC model, the FPWCs were built and equipped with four-star standard sanitary ware. In addition, Sacombank has also arranged personnel to keep these facilities clean at all times. The launch of the FPWCs was highly appreciated by the local authorities and people in these areas. So far, this model has been replicated by Sacombank in other districts of HCMC as well as other regions across the country such as Phu Quoc City (Kien Giang), Nha Trang City (Khanh Hoa), Tan An City (Long An), Vi Thanh City (Hau Giang), Vinh Long, Dong Thap, Ben Tre Provinces, etc. Investment in and construction of the free quality FPWC system is part of Sacombanks commitment to joining hands with the local authorities to create a civilised lifestyle and a new image for residential areas, and at the same time showing its deep concern about the environment, the community and society.

In 2011, Sacombank also provided 4,911 free benches to parks, cultural houses, schools, airports, etc. serving the community in areas where Sacombanks Branches are based.

ANNUAL REPORT 2011

74

SoCIAL RESPonSIBILIty
JOINT EFFORTS FOR THE FUTURE GENERATION
n

In 2004, the Scholarship Fund Sacombank Nurturing Dreams came into existence with the aim of supporting needy students who show promise. The financial resources for this fund came from the appropriation of 1% of the annual net profit of Sacombank. In 2011, Sacombank granted more than 2,340 scholarships worth over VND2.6 billion in total to needy pupils and students with a high level of academic achievement and new valedictorians across the country in locations where Sacombanks Branches are based. In 2011, Sacombank continued to accept Sacombank Potential Interns. The program of accepting students for internships at Sacombank is organised every year. Not only does this program give students the opportunity to access practical work experience, but it also serves as a large-scale personnel recruitment program for Sacombank through which students are chosen to share opportunities to accompany Sacombank and the financial and banking industry into the future. On 15 May 2011, Sacombank initiated the Private Lesson on Saving Program at Vo Truong Toan Secondary School (District 1, HCMC). At this event, a representative of Sacombank talked about the way in which pupils tend to use their money nowadays and introduced the Phu Dong Saving Product. This product is considered an effective financial education solution for Vietnamese young people, helping them to form a saving habit from childhood. In addition, Sacombank established the Phu Dong Club to

create a playground for children with interesting and useful extracurricular activities, contributing to creating and promoting good money saving and use habits.
n

From 2005 to date, Mr. Dang Van Thanh Chairman of Sacombank has presided over a series of workshops called Sharing experience on corporate governance and management to share his more than 30 years experience in corporate governance and management with 11,900 businesspersons in 29 out of 47 provinces and cities of Vietnam. Through these workshops, Sacombank has created added value for customers and shown its responsibility towards joint development with enterprises in localities in the process of economic integration. Since 2004, Sacombank has officially organised the crosscountry running prize Running with Sacombank for community health and made it an annual event on the occasion of opening ceremonies and anniversaries of the Branches across its entire system. In 2011, Sacombank organised 44 cross-country running prizes, helping to promote the emulation movement called wellness for career start-up among pupils, students and young people nationwide.

75

ANNUAL REPORT 2011

FOR A BETTER LIFE

n

Continuing to promote the love for needy people tradition of our people, since 2004, the Spring Charity Festival has become an annual community development activity for Sacombank and its corporate friends, designed to meet and share Tet holiday joy with thousands of lonely elderly people, street children and needy disabled children who are supported and cared for in nursing homes, orphanages and charity houses in HCMC and neighbouring provinces. On 15 January 2012, Sacombank coordinated with the HCMC Association for Saving Disabled Children to organise the Year of the Dragon Charity Festival at Phu Tho Gymnasium (HCMC) with total funding of over VND4 billion, appropriated from the Welfare Fund and Labour Union Fund of Sacombank and contributions (nearly VND140 million) from customers and partners of Sacombank at its 20th Anniversary Ceremony. This was the ninth consecutive year that Sacombank had organised the Charity Festival at the beginning of the New Year. The organisation of the Spring Charity Festival on an annual basis shows Sacombanks responsibility to the community, joining hands with the community to strive for a better life.

In addition, Sacombank participated in other activities such as: construction of houses of affection, sponsorship for charity houses, contribution to a charitable fund for dioxin victims, contribution to the For the Poor Fund in provinces and cities, sponsorship of eye surgery for needy blind people, support for victims of natural calamities, etc. In general, Sacombanks community development activities are all aimed at supporting the vulnerable people in society in the most practical and effective manner possible, contributing to increasing social equality and showing the enterprises responsibility to the country.

ANNUAL REPORT 2011

76

77

ANNUAL REPORT 2011

FINANCIAL STATEMENTS

Bringing added values for shareholders and potential investors is one of the banks goals, core values and thoughts which were set up in its development strategies for each period. Thus, Sacombank is committed to boosting the inherent advantages and maintaining a stable growth rate. With the long-term development strategies, Sacombanks three objectives of efficient business, safe and sustainable development have always been combined harmoniously and consistently in all business activities.

Mark of growth

ANNUAL REPORT 2011

78

SINGLE-ENTITY FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2011

TABLE OF CONTENTS Corporate information Statement by management Auditors report Balance sheet (Form B 02/TCTD) Income statement (Form B 03/TCTD) Cash flow statement (Form B 04/TCTD) Notes to the single-entity financial statements (Form B 05/TCTD) (*)

PAGE 80 81 82 83 85 86

(*) For reference on Notes to the single-entity financial statements, please visit: http://www.sacombank.com.vn/en/investor/ Pages/Financial-Statements.aspx

79

ANNUAL REPORT 2011

CORPORATE INFORMATION
Banking Licence No. 0006/NH-GP dated 5 December 1991 The Banking Licence was issued by the State Bank of Vietnam (the SBV) for a period of 50 years from the date of the licence. Board of Directors: Mr Dang Van Thanh Mrs Huynh Que Ha Mr Nguyen Chau Mr Dominic Scriven Mrs Nguyen Thi Mai Thanh Mr Dang Hong Anh Mr Pham Duy Cuong Mr Huynh Phu Kiet Mr Nguyen Ngoc Thai Binh Mr Lim Peng Khoon Board of Supervisors: Mr Nguyen Tan Thanh Mr Le Van Tong Mr Doan Ba Tung Ms Nguyen Thi Thanh Mai Board of Management: Mr Tran Xuan Huy Mr Luu Huynh Mr Nguyen Minh Tam Mr Dao Nguyen Vu Mr Bui Van Dung Mrs Do Thu Ngan Mr Nguyen Dang Thanh Mrs Quach Thanh Ngoc Thuy Mr Ly Hoai Van Mr Pham Nhat Vinh Principal Activities The principal activities of Sacombank (the Bank) are to mobilise short, medium and long-term capital in the form of time deposits, demand deposits, certificates of deposit; receive investment funds; receive capital from local and overseas financial institutions; grant short, medium and long-term loans; discount commercial paper, bonds and valuable documents; investments in associate, joint-ventures and other companies; provide settlement services to customers; deal in foreign exchange, gold; provide international settlements services; investment in bonds and other securities; provide investment and asset management services, other banking services. The Banks registered office The Banks auditor 266-268 Nam Ky Khoi Nghia Street, District 3, Ho Chi Minh City, Vietnam PricewaterhouseCoopers (Vietnam) Limited Chief Executive Officer Deputy CEO (resigned on 1 November 2011) Deputy CEO Deputy CEO Deputy CEO (resigned on 1 January 2011) Deputy CEO (resigned on 15 April 2011) Deputy CEO Deputy CEO Deputy CEO Deputy CEO Chief Supervisor Supervisor Supervisor (resigned on 2 April 2011) Supervisor (appointed on 2 April 2011) Chairman First Vice Chairwoman Vice Chairman Member (resigned on 2 April 2011) Member (resigned on 2 April 2011) Member Member Member (resigned on 2 April 2011) Member (appointed on 2 April 2011) Independent member (appointed on 2 April 2011)

ANNUAL REPORT 2011

80

STATEMENT BY MANAGEMENT
STATEMENT OF THE RESPONSIBILITY OF THE BOARD OF MANAGEMENT IN RESPECT OF THE SINGLE-ENTITY FINANCIAL STATEMENTS The Board of Managemnet is responsible for preparation of the single-entity financial statements which give a true and fair view of the financial position of the Bank as at 31 December 2011 and of its results of operations and cash flows for the year then ended. In preparing these single-entity financial statements, the Board of Management is required to: select suitable accounting policies and then apply them consistently; make judgments and estimates that are reasonable and prudent; and

prepare the single-entity financial statements on a going concern basis unless it is inappropriate to presume that the Bank will continue in business. We, the Board of Management is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the financial position of the Bank and which enable single-entity financial statements to be prepared which comply with the basis of accounting set out in Note 2 to the single-entity financial statements. The Board of Management is responsible for ensuring compliance with Vietnamese Accounting Standards, the Vietnamese Accounting System and regulations applicable to banks and other credit institutions operating in SR Vietnam. We are also responsible for safeguarding the assets of the Bank and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. APPROVAL OF THE SINGLE-ENTITY FINANCIAL STATEMENTS We hereby approve the accompanying single-entity financial statements as set out on pages 5 to 73 which give a true and fair view of the financial position of the Bank as at 31 December 2011 and of its results of operations and cash flows for the year then ended, in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System and regulations applicable to banks and other credit institutions operating in SR Vietnam. Users of these single-entity financial statements should read them together with the Groups consolidated financial statements as at and for the year ended 31 December 2011 in order to obtain full information on the financial position, results of operations and changes in financial position of the Group as a whole.

For and on behalf of the Board of Management

Tran Xuan Huy Chief Executive Officer Ho Chi Minh City, SR Vietnam 9 March 2012 (*) For reference on Notes to the single-entity financial statements, please visit: http://www.sacombank.com.vn/en/investor/Pages/ Financial-Statements.aspx

81

ANNUAL REPORT 2011

AuDITORS REPORT
INDEPENDENT AUDITORS REPORT TO SHAREHOLDERS OF SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK We have audited the accompanying single-entity financial statements of Saigon Thuong Tin Commercial Joint Stock Bank (the Bank) which were approved by management on 9 March 2012. The single-entity financial statements comprise the balance sheet as at 31 December 2011, the income statement and cash flow statement for the year then ended, and explanatory notes to the single-entity financial statements including significant accounting policies, as set out on pages 5 to 69 (*). Board of Management Responsibility for the single-entity Financial Statements Board of Management of the Bank is responsible for the preparation and fair presentation of these single-entity financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System and regulations applicable to banks and other credit institutions operating in SR Vietnam. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of single-entity financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors Responsibility Our responsibility is to express an opinion on these single-entity financial statements based on our audit. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit in order to obtain reasonable assurance as to whether the single-entity financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the single-entity financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Banks preparation and fair presentation of the single-entity financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Banks internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the single-entity financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the single-entity financial statements present fairly, in all material respects, the financial position of the Bank as at 31 December 2011, and its financial performance and cash flows for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System and regulations applicable to banks and other credit institutions operating in SR Vietnam.

Richard Peters AC No. N.0561/KTV Deputy General Director Authorised signatory PricewaterhouseCoopers (Vietnam) Limited Ho Chi Minh City, SR Vietnam Audit report number HCM3048 9 March 2012

Nguyen Hoang Nam AC No. 0849/KTV

ANNUAL REPORT 2011

82

BALANCE SHEET
FORM B 02/TCTD As at 31 December Notes 2011 Million VND A I II III IV 1 2 V VI 1 2 VII 1 2 3 VIII 1 2 3 IX 1 2 X ASSETS Cash and precious metals Balances with the State Bank Placements with and loans to other credit institutions Trading securities Trading securities Less: Provision for diminution in value of trading securities Derivatives and other financial assets Loans and advances to customers Loans and advances to customers Less: Provision for losses on loans and advances to customers Investment securities Available-for-sales securities Held-to-maturity securities Less: Provision for diminution in value of investment securities Investment in other entities and long-term investments Investments in subsidiaries Other long-term investments Less: Provision for diminution in value of investments in other entities and long-term investments Fixed assets Tangible fixed assets Intangible fixed assets Other assets TOTAL ASSETS 13 14 15 1,847,129 1,592,125 7,954,514 140,136,974 1,177,309 1,267,739 6,273,260 141,798,738 11 12 11, 12 1,837,294 783,582 (157,458) 1,768,200 622,179 (103,767) 10.1 10.2 10.1 24,164,301 232,124 (28,248) 19,118,540 2,007,504 (10,002) 8 9 78,448,928 (779,575) 77,359,055 (742,016) 6 6 7 504,786 (155,431) 2,852 563,683 (75,822) 7,082 3 4 5 11,644,700 2,572,440 9,672,911 12,570,956 3,618,830 16,376,008 2010 Million VND

83

ANNUAL REPORT 2011

BALANCE SHEET
(continued) FORM B 02/TCTD As at 31 December Notes 2011 Million VND B I II III IV V VI VII 1 2 3 4 LIABILITIES AND SHAREHOLDERS EQUITY Due to Government and borrowings from the State Bank of Vietnam Deposits and borrowings from other credit institutions Deposits from customers Funds received from Government, international and other institutions Certificate of deposits Other liabilities TOTAL LIABILITIES Shareholders Equity Capital and reserves attributable to equity holders of the Bank Capital Reserves Foreign exchange difference Retained earnings TOTAL SHAREHOLDERS EQUITY TOTAL LIABILITIES AND SHAREHOLDERS EQUITY CONTINGENCIES AND COMMITMENTS 38 22 23 23 23 10,961,760 1,426,322 79,046 1,756,970 14,224,098 140,136,974 41,109,846 10,851,871 1,136,459 1,644,779 13,633,109 141,798,738 16,809,365 16 17 18 19 20 21 2,129,609 12,440,982 74,799,927 4,526,227 17,616,708 14,399,423 125,912,876 4,688,801 15,476,345 78,858,295 2,233,877 24,946,136 1,962,175 128,165,629 2010 Million VND

Luu Van Hoa Preparer

Nguyen Thi My Hanh Chief Accountant

Tran Xuan Huy Chief Executive Officer 9 March 2012

ANNUAL REPORT 2011

84

INCOME STATEMENT
FORM B 03/TCTD Year ended 31 December 2011 2010 Million VND Million VND 17,105,151 (11,609,503) 5,495,648 26 27 1,387,936 (452,496) 935,440 28 29 30 33 33 123,470 (79,609) (10,723) 261,039 (156,065) 104,974 31 32 (58,179) ( 3,394,750) 3,116,271 5, 9, 21 35 35 (376,041) 2,740,230 (707,045) (707,045) 2,033,185 10,741,751 (7,531,961) 3,209,790 1,173,375 (247,692) 925,683 (169,750) (45,834) 15,233 581,923 (381,630) 200,293 477,658 (1,944,108) 2,668,965 (243,106) 2,425,859 (627,299) (627,299) 1,798,560

Notes 1 2 I 3 4 II III IV V 5 6 VI VII VIII IX X XI 7 8 XII XIII Interest and similar income Interest and similar expenses Net interest income Fees and commission income Fees and commission expenses Net fee and commission income Net gain/(loss) from dealing in foreign currencies and gold Net loss from trading of trading securities Net (loss)/gain from disposal of investment securities Other incomes Other expenses Net other income (Loss)/income from investments in other entities General and administrative expenses Operating profit before provision for credit losses Provision for credit losses Profit before tax Business income tax current Business income tax deferred Business income tax Net profit for the year 24 25

Luu Van Hoa Preparer

Nguyen Thi My Hanh Chief Accountant

Tran Xuan Huy Chief Executive Officer 9 March 2012

85

ANNUAL REPORT 2011

CASH FLOW STATEMENT

(Direct method) FORM B 04/TCTD Year ended 31 December 2011 Million VND CASH FLOWS FROM OPERATING ACTIVITIES 01 02 03 04 05 06 07 Received interest income and similar income Paid interest expense and similar expense Received fee and commission income Net gain/(loss) on trading activities (foreign currencies, gold and securities) Other income Cash paid to employees and related operating activities Business income tax paid CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN OPERATING ASSETS AND LIABILITIES Changes in operating assets 08 09 10 11 12 13 Decrease/(increase) in placements with and loans to other credit institutions Increase in trading securities and investment securities Decrease in derivatives and other financial assets Increase in loans and advances to customers Increase in other operating assets Decrease in other operating assets as a result of converting Combodia Branch into the subsidiary Changes in operating liabilities 14 15 16 17 18 19 20 21 (Decrease)/increase in borrowings from the State and SBV (Decrease)/increase in placements and borrowings from other credit institutions (Decrease)/increase in deposits from customers (Decrease)/increase in valuable papers issued Increase in funds received from Government, international and other institutions Increase/(decrease) in other operating liabilities Decrease in other operating liabilities as a result from converting Cambodia Branch into the subsidiary Payments from reserves NET CASH FLOWS FROM OPERATING ACTIVITIES (305,659) (254,142) (2,059,950) (223,092) 533,331 (2,559,192) (2,939,188) (3,855,860) (7,329,428) 2,292,350 11,752,354 1,205,641 13,084,958 18,638,378 6,668,660 270,995 (153,318) 1,469,922 4,352,432 (4,348,284) 4,230 (1,983,609) (1,012,182) (6,938,410) (10,538,351) 602,363 (22,114,070) (1,493,985) 2,656,306 1,523,562 16,441,214 (11,372,263) 935,440 97,421 47,161 (2,758,550) (734,117) 10,190,467 (7,344,361) 925,683 (127,033) 141,716 (1,708,120) (554,790) 2010 Million VND

ANNUAL REPORT 2011

86

CASH FLOW STATEMENT

(Direct method) (continued) FORM B 04/TCTD Year ended 31 December 2011 2010 Million VND Million VND CASH FLOWS FROM INVESTING ACTIVITIES 01 02 03 04 05 06 II Purchases of fixed assets Proceeds from disposal of fixed assets Cash paid for investments in other entities Proceeds from disposal of investments in other entities and other long-term investments Dividend income Increase in investment as a result of converting Combodia Branch into the subsidiary NET CASH FLOWS FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES 01 02 03 III IV V VI Increase in chartered capital Dividend paid in cash Purchases of treasury shares NET CASH FLOWS FROM FINANCING ACTIVITIES NET (DECREASE)/ INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT END OF THE YEAR Cash and cash equivalents are made up of: Cash and precious metals Balances with the State Bank of Vietnam Placements with other credit institutions Short-term valuable papers 11,644,700 2,572,440 4,287,429 270,000 18,774,569 12,570,956 3,618,830 6,505,011 1,406,800 24,101,597 1,560,447 (1,335,426) (1,450,558) (1,225,537) (5,327,028) 24,101,597 18,774,569 1,768,894 (240) 1,768,654 1,614,985 22,486,612 24,101,597 (1,764,720) 174,973 (150,223) 260,686 141,991 (704,248) (2,041,541) (1,298,018) 439,753 (363,270) 407,334 127,201 (687,000)

Luu Van Hoa Preparer

Nguyen Thi My Hanh Chief Accountant

Tran Xuan Huy Chief Executive Officer 9 March 2012

87

ANNUAL REPORT 2011

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2011

TABLE OF CONTENTS Corporate information Statement by management Auditors report Balance sheet (Form B 02/TCTD) Income statement (Form B 03/TCTD) Cash flow statement (Form B 04/TCTD) Notes to the single-entity financial statements (Form B 05/TCTD) (*)

PAGE 89 90 91 93 95 96 98

ANNUAL REPORT 2011

88

CORPORATE INFORMATION
Banking Licence No. 0006/NH-GP dated 5 December 1991 The Banking Licence was issued by the State Bank of Vietnam (the SBV) for a period of 50 years from the date of the licence. Board of Directors: Mr Dang Van Thanh Mrs Huynh Que Ha Mr Nguyen Chau Mr Dominic Scriven Mrs Nguyen Thi Mai Thanh Mr Dang Hong Anh Mr Pham Duy Cuong Mr Huynh Phu Kiet Mr Nguyen Ngoc Thai Binh Mr Lim Peng Khoon Board of Supervisors: Mr Nguyen Tan Thanh Mr Le Van Tong Mr Doan Ba Tung Ms Nguyen Thi Thanh Mai Board of Management: Mr Tran Xuan Huy Mr Luu Huynh Mr Nguyen Minh Tam Mr Dao Nguyen Vu Mr Bui Van Dung Mrs Do Thu Ngan Mr Nguyen Dang Thanh Mrs Quach Thanh Ngoc Thuy Mr Ly Hoai Van Mr Pham Nhat Vinh Principal Activities The principal activities of Sacombank (the Bank) are to mobilise short, medium and long-term capital in the form of time deposits, demand deposits, certificates of deposit; receive investment funds; receive capital from local and overseas financial institutions; grant short, medium and long-term loans; discount commercial paper, bonds and valuable documents; investments in associate, joint-ventures and other companies; provide settlement services to customers; deal in foreign exchange, gold; provide international settlements services; investment in bonds and other securities; provide investment and asset management services, other banking services. The Banks registered office The Banks auditor 266-268 Nam Ky Khoi Nghia Street, District 3, Ho Chi Minh City, Vietnam PricewaterhouseCoopers (Vietnam) Limited Chief Executive Officer Deputy CEO (resigned on 1 November 2011) Deputy CEO Deputy CEO Deputy CEO (resigned on 1 January 2011) Deputy CEO (resigned on 15 April 2011) Deputy CEO Deputy CEO Deputy CEO Deputy CEO Chief Supervisor Supervisor Supervisor (resigned on 2 April 2011) Supervisor (appointed on 2 April 2011) Chairman First Vice Chairwoman Vice Chairman Member (resigned on 2 April 2011) Member (resigned on 2 April 2011) Member Member Member (resigned on 2 April 2011) Member (appointed on 2 April 2011) Independent member (appointed on 2 April 2011)

89

ANNUAL REPORT 2011

STATEMENT BY MANAGEMENT
STATEMENT OF THE RESPONSIBILITY OF THE BOARD OF MANAGEMENT IN RESPECT OF THE CONSOLIDATED FINANCIAL STATEMENTS The Board of Directors is responsible for preparation of the consolidated financial statements which give a true and fair view of the financial position of Saigon Thuong Tin Commercial Joint Stock Bank (the Bank) and its subsidiaries (together, the Group) as at 31 December 2011 and of its results of operations and cash flows for the year then ended. In preparing these consolidated financial statements, the Board of Management is required to:
n

select suitable accounting policies and then apply them consistently; make judgments and estimates that are reasonable and prudent; and

n prepare the consolidated financial statements on a going concern basis unless it is inappropriate to presume that the Group will continue in business.

We, the Board of Management are responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the financial position of the Group and which enable consolidated financial statements to be prepared which comply with the basis of accounting set out in Note 2 to the consolidated financial statements. The Banks Board of Management is responsible for ensuring compliance with Vietnamese Accounting Standards, the Vietnamese Accounting System and regulations applicable to banks and other credit institutions operating in SR Vietnam. We are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS We hereby approve the accompanying consolidated financial statements on page 5 to page 70 which give a true and fair view of the financial position of the Group as at 31 December 2011 and of its results of operations and cash flows for the year then ended, in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System and regulations applicable to banks and other credit institutions operating in SR Vietnam.

For and on behalf of the Board of Directors

Tran Xuan Huy Chief Executive Officer Ho Chi Minh City, SR Vietnam 9 March 2012

ANNUAL REPORT 2011

90

AuDITORS REPORT
INDEPENDENT AUDITORS REPORT TO SHAREHOLDERS OF SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK We have audited the accompanying consolidated financial statements of Saigon Thuong Tin Commercial Joint Stock Bank (the Bank) and its subsidiaries (together, the Group), which were approved by management on 9 March 2012. The consolidated financial statements comprise the consolidated balance sheet as at 31 December 2011, the consolidated income statement and consolidated cash flow statement for the year then ended, and explanatory notes to the consolidated financial statements including significant accounting policies, as set out on pages 5 to 70. Board of Management Responsibility for the Consolidated Financial Statements Board of Management of the Bank is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System and regulations applicable to banks and other credit institutions operating in SR Vietnam. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditors Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit in order to obtain reasonable assurance as to whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Groups preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Groups internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion

91

ANNUAL REPORT 2011

Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as at 31 December 2011, and its financial performance and cash flows for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System and regulations applicable to banks and other credit institutions operating in SR Vietnam. .

Richard Peters AC No. N.0561/KTV Deputy General Director Authorised signature

Nguyen Hoang Nam AC No. 0849/KTV

PricewaterhouseCoopers (Vietnam) Limited Ho Chi Minh City, SR Vietnam Audit report number HCM3047 9 March 2012

As indicated in Note 2.1 to the consolidated financial statements, the accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than SR Vietnam, and furthermore their utilisation is not designed for those who are not informed about SR Vietnams accounting principles, procedures and practices.

ANNUAL REPORT 2011

92

CONSOLIDATED INCOME STATEMENT

Form B 02/TCTD - HN As at 31 December 2011 Notes A I II III IV 1 2 V VI 1 2 VII 1 2 3 VIII 1 2 IX 1 2 3 X ASSETS Cash and precious metals Balances with the State Bank Placements with and loans to other credit institutions Trading securities Trading securities Less: Provision for diminution in value of trading securities Derivatives and other financial assets Loans, advances and finance leases to customers Loans, advances and finance leases to customers Less: Provision for losses on loans, advances and finance leases to customers Investment securities Available-for-sales securities Held-to-maturity securities Less: Provision for diminution in value of investment securities Capital contribution and other long-term investments Other long-term investments Less: Provision for diminution in value of long-term investments Fixed assets Tangible fixed assets Leased assets Intangible fixed assets Other assets TOTAL ASSETS 12 14 13 15 2,105,523 2,024 1,600,316 8,362,483 141,468,717 1,602,394 19,886 1,513,239 5,617,510 152,386,936 11 11 822,969 (157,458) 656,579 (5,995) 10.1 10.2 10.1 24,164,301 232,124 (28,248) 19,530,892 2,007,504 (13,065) 8 9 80,539,487 (812,940) 82,484,803 (820,603) 6 6 7 504,786 (155,431) 2,852 2,485,410 (205,257) 7,082 3 4 5 11,857,270 2,807,350 9,621,309 12,677,849 3,618,973 21,209,735 Million VND 2010 Million VND

93

ANNUAL REPORT 2011

CONSOLIDATED INCOME STATEMENT

(Continued) Form B 02/TCTD - HN As at 31 December 2011 Notes B I II III IV V VI VII 1 2 3 4 VIII LIABILITIES AND SHAREHOLDERS EQUITY Due to Government and borrowings from the State Bank of Vietnam Deposits and borrowings from other credit institutions Deposits from customers Funds received from Government, international and other institutions Certificates of deposits and bonds Other liabilities TOTAL LIABILITIES SHAREHOLDERS EQUITY Capital and reserves attributable to equity holders of the Bank Capital Reserves Foreign exchange differences Retained earnings TOTAL SHAREHOLDERS EQUITY Minority interest TOTAL LIABILITIES AND SHAREHOLDERS EQUITY CONTINGENCIES AND COMMITMENTS 40 24 22 23 23 23 10,961,760 1,539,899 87,216 1,958,008 14,546,883 141,468,717 41,109,846 10,930,982 1,328,425 (650) 1,759,560 14,018,317 676,658 152,386,936 16,768,727 16 17 18 19 20 21 2,129,609 12,823,589 75,092,252 4,713,679 17,616,708 14,545,997 126,921,834 4,688,801 15,409,626 78,335,416 2,233,877 28,577,136 8,447,105 137,691,961 Million VND 2010 Million VND

Luu Van Hoa Preparer

Nguyen Thi My Hanh Chief Accountant

Tran Xuan Huy Chief Executive Officer 9 March 2012

ANNUAL REPORT 2011

94

CONSOLIDATED INCOME STATEMENT

Form B 03/TCTD - HN Year ended 31 December 2011 2010 Notes 1 2 I 3 4 II III IV V 5 6 VI VII VIII IX X XI 7 8 XII XIII Interest and similar income Interest and similar expenses Net interest income Fees and commission income Fees and commission expenses Net fee and commission income Net gain/(loss) from dealing in foreign currencies and gold Net (loss)/gain from trading of trading securities Net loss from disposal of investment securities Other incomes Other expenses Net other income (Expense)/income from investments in other entities General and administrative expenses Operating profit before provision for credit losses Provision for credit losses Profit before tax Business income tax current Business income tax deferred Business income tax Net profit for the year Minority interest Profit attributable to the equity holders of the Bank during the period Earnings per share for profit attributable to the equity holders of the Bank during the year - Basic Nguyen Thi My Hanh Chief Accountant Tran Xuan Huy Chief Executive Officer 9 March 2012 25 24 5, 9, 15, 21.2 37 37 33 34 30 31 32 35 35 28 29 26 27 Million VND 17,864,267 (12,022,040) 5,842,227 1,685,590 (644,195) 1,041,395 204,268 (186,449) (10,723) 508,433 (402,357) 106,076 (242,027) (3,589,136) 3,165,631 (394,957) 2,770,674 (774,817) (774,817) 1,995,857 (70,574) 2,066,431 VND/share Million VND 11,801,566 (7,911,015) 3,890,551 1,436,117 (293,359) 1,142,758 (502,212) 18,046 (151,395) 552,415 (416,964) 135,451 522,808 (2,177,733) 2,878,274 (317,832) 2,560,442 (655,512) 5,410 (650,102) 1,910,340 38,644 1,871,696 VND/share

2,241

2,373

Luu Van Hoa Preparer

95

ANNUAL REPORT 2011

CONSOLIDATED INCOME STATEMENT

(Direct method) Form B 04/TCTD - HN Year ended 31 December 2011 Million VND CASH FLOWS FROM OPERATING ACTIVITIES 01 02 03 04 05 06 07 Received interest income and similar income Paid interest expense and similar expense Received fee and commission income Net gain/(loss) on trading activities (foreign currencies, gold and securities) Other income Cash paid to employees and related operating activities Business income tax paid CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN OPERATING ASSETS AND LIABILITIES Changes in operating assets 08 09 10 11 12 13 14 15 16 17 18 22 Decrease/(Increase) in placements with and loans to other credit institutions Increase in trading securities and investment securities Decrease in derivatives and other financial assets Increase in loans and advances to customers Increase in other operating assets Changes in operating liabilities (Decrease)/Increase in borrowings from the State and the SBV (Decrease)/Increase in placements and borrowings from other credit institutions (Decrease)/Increase in deposits from customers (Decrease)/Increase in valuable papers issued Increase in funds received from Government, international and other institutions Increase in other operating liabilities Payments from reserves NET CASH FLOWS FROM OPERATING ACTIVITIES (2,559,192) (2,564,000) (2,508,916) (7,329,428) 2,479,802 11,230,960 (282,538) (2,715,466) 1,205,641 12,653,733 17,819,143 6,199,660 127,467 6,129,037 (249,375) 2,433,642 6,203,625 (4,348,284) 4,230 (4,274,644) (1,767,158) (8,269,040) (11,758,386) 602,363 (22,830,717) (714,847) 17,296,369 (11,831,478) 1,041,395 104,732 52,075 (2,859,254) (803,762) 3,000,077 11,044,188 (7,635,424) 1,142,758 (564,117) 60,727 (1,883,135) (646,034) 1,518,963 2010 Million VND

ANNUAL REPORT 2011

96

CONSOLIDATED INCOME STATEMENT

(Direct method) (continued) Form B 04/TCTD - HN Year ended 31 December 2011 2010 Million VND Million VND CASH FLOWS FROM INVESTING ACTIVITIES 01 02 03 04 05 07 II Purchases of fixed assets Proceeds from disposals of fixed assets Cash paid for investments in other entities Proceeds from disposal of investments in other entities and other long-term investments Dividend income Movement due to converting a branch into a subsidiary NET CASH FLOWS FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES 01 02 03 III IV V Increase in chartered capital Increase in capital contributed by minority interest in subsidiaries Dividends paid Purchase treasury shares NET CASH FLOWS FROM FINANCING ACTIVITIES NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR Decrease in cash and cash equivalents due to disposal of subsidiaries CASH AND CASH EQUIVALENTS AT END OF YEAR Cash and cash equivalents are made up of: Cash and precious metals Balances with the State Bank of Vietnam Placement with other credits institutions as demand and term of original maturity within 3 months Short-term valuable paper issued by a credit institution with maturity within 3 months 11,857,270 2,807,350 4,589,365 270,000 19,523,985 12,677,849 3,618,973 9,973,608 1,406,800 27,677,230 1,560,447 (1,337,624) (1,450,558) (1,227,735) (5,104,861) 27,677,230 (3,048,384) 19,523,985 1,768,894 310,154 2,079,048 4,057,501 23,619,729 (1,873,541) 414,058 (150,223) 260,565 108,435 79,046 (1,161,660) (1,574,225) 488,085 (195,321) 750,769 75,503

(455,189)

VI

27,677,230

Luu Van Hoa Preparer

Nguyen Thi My Hanh Chief Accountant

Tran Xuan Huy Chief Executive Officer 9 March 2012

97

ANNUAL REPORT 2011

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 1 GENERAL INFORMATION Sai Gon Thuong Tin Commercial Joint Stock Bank (herein referred to as the Bank) is a Vietnamese joint-stock bank registered in the Socialist Republic of Vietnam. Banking Licence No. 0006/NH-GP was granted to the Bank by the State Bank of Vietnam (the SBV) effective 5 December 1991. The licence is for a period of 50 years and stipulates a share capital of VND3,000 million. The Bank commenced its operation on 21 December 1991. The Banks chartered capital as at 31 December 2011 was VND10,739,677 million. The Banks Head Office locates at No. 266-268 Nam Ky Khoi Nghia Street, District 3, Ho Chi Minh City. The Bank has one Head Office, 1 transaction office, 72 branches (including one branch in Laos) and 334 transaction offices nationwide and one saving fund As at 31 December 2011, the Bank had the following subsidiaries: % direct % indirect Total % shareholding shareholding shareholding by the Bank through by the Group Nature of business subsidiary Asset management Leasing activities Money remittance Process and trade gold and precious metals IT services, IT equipment trading and others Banking 100% 100% 100% 100% 0% 0% 0% 0% 100% 100% 100% 100%

Operating Licence Sacombank Asset Management Company Sacombank Leasing Company Sacombank Remittance Express Company Sacombank Jewelry Company 4104000053 04/GP-NHNN 90/Q-NHNN 4104003812

Sacombank Tech Company

0305584790

0%

100%

100%

Sacombank Cambodia

N.27

100%

0%

100%

During the year, the Bank sold 57.55 million shares of Sacombank Securities Company. Accordingly, the Banks shareholding in this company reduced to 10.95%. In the year, Sacombank Jewelry Company sold 90% of its shareholding in its subsidiary, Cambodia Sacombank Jewelry Company. As at 31 December 2011, the Bank had 9,596 employees (2010: 8,507 employees).

ANNUAL REPORT 2011

98

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted for the preparation of these consolidated financial statements are set out below. 2.1 Basis of preparation of consolidated financial statements The consolidated financial statements have been prepared using the historical cost convention and in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System and regulations applicable to banks and other credit institutions operating in SR Vietnam. Accordingly, the consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with jurisdictions other than SR Vietnam. The accounting principles and practices utilised in SR Vietnam may differ from those generally accepted in countries and jurisdictions other than SR Vietnam. 2.2 Fiscal year The Groups fiscal year is from 1 January to 31 December. 2.3 Foreign currencies The consolidated financial statements are measured in Vietnamese Dong and presented using millions of Vietnamese Dong. Transactions arising in foreign currencies are translated at rates ruling on the transaction dates. Monetary assets and liabilities denominated in foreign currencies at each month end are translated at the rates of exchange ruling at the month end date. Foreign exchange differences from monthly revaluation are recorded in the foreign currency difference reserve in the consolidated balance sheet and transferred to the consolidated income statement at the end of the year. 2.4 (i) Consolidation Subsidiaries Subsidiaries are those companies over which the Group has the power to govern the financial and operating policies. Subsidiaries are consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date on which control ceases. The results of operations of a subsidiary are included in the consolidated financial statements as from the date of acquisition, which is the date on which control of the acquired subsidiary is effectively transferred to the buyer. The results of operations of a subsidiary disposed of are included in the consolidated income statement until the date of disposal which is the date on which the parent ceases to have control of the subsidiary. The difference between the proceeds from the disposal of the subsidiary and the carrying amount of its assets less liabilities as of the date of disposal is recognised in the consolidated income statement as the profit or loss on the disposal of the subsidiary. Where there is a partial disposal of an interest in a subsidiary and there is no loss of control, the profit or loss arising on the partial disposal is included in the consolidated income statement for the year. The purchase method of accounting is used to account for the acquisition of subsidiaries by the Bank. The cost of an acquisition is measured as the fair value of the assets given, equities instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair value at the acquisition date, irrespective of the extent of the minority interest

99

ANNUAL REPORT 2011

Inter-company balances, transactions and unrealised gains on transactions between those companies and the Group are eliminated. Unrealised losses also eliminated unless transactions provide evidence of an impairment of the asset transferred. The accounting policies of subsidiaries have been changed where necessary to ensure the consistency with the policies adopted by the Bank. Financial statements of foreign subsidiaries are converted for consolidating into the Groups consolidated financial statements as follows a) b) c) Assets and liabilities, both monetary and non-monetary, of the foreign subsidiary are translated at the closing rate; Revenue, income and expense items of the foreign subsidiary are translated at the average exchange rate; Exchange differences arising from the conversion of the subsidiarys financial statements for consolidating into the Groups consolidated financial statements are recorded in the foreign exchange difference reserve under the Groups equity until the disposal of the subsidiary

(ii)

Minority interest Minority interest is the portion of the profit or loss and net assets of a subsidiary attributable to equity interest that are not owned, directly or indirectly through subsidiaries, by the parent

(iii)

Associates and joint-ventures Associates are all entities over which the Group has significant influence but not control. Joint-venture is a contractual arrangement whereby the Group and other parties undertake an economic activity which is subject to joint control. The Group uses the equity method for consolidating its investments in associates and joint-ventures. The Groups share of its associates and joint-ventures post acquisition profits or losses is recognised in the consolidated income statement. When the Groups share of losses in an associate and joint-venture equals or exceeds the carrying amount of its investment in the associate and joint-venture, the Group does not recognise further losses in its consolidated financial statements, unless it has obligations to pay on behalf of the associate and joint-venture. Accounting policies of associates and joint-ventures have been changed where necessary to ensure consistency with the policies adopted by the Bank

2.5

Interest income and expenses The Group records interest income and expense on an accruals basis. Interest income from non-performing loans is not accrued and is recognised on an actual collection basis. Interest income is derecognised when a loan becomes overdue and is recorded off-balance sheet. Interest income on overdue loan is recognised in the consolidated income statement on receipt.

ANNUAL REPORT 2011

100

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 2.6 Fees and commissions income Fees and commission income consists of fees received for settlement services, treasury services, guarantees services, securities brokerage services and other services. Fees on guarantees services and securities brokerage services are recognised on an accruals basis. Fees and commissions arising from settlement services, treasury services and other services are recognised on receipt. 2.7 Loans, advances and finance leases to customers Short-term loans are those with a repayment date within one year of the date the loan was advanced, medium-term loans and finance leases are those with a final repayment date between one and five years of the date the loan was advanced or the lease was given and long-term loans are those with a repayment date of more than five years from the date the loan was advanced or the lease was given. Loan classification and provision for losses are made in accordance with Decision No. 493/2005/Q-NHNN dated 22 April 2005 and Decision No.18/2007/Q-NHNN dated 25 April 2007 of the Governor of the State Bank of Vietnam. Loans, advances and finance leases to customers are classified into five groups based on the payment arrears status and other qualitative factors as follows: Group 1: Current
n

Undue debts which, according to the Groups assessment, could be fully recovered, both principal and interest, when they fall due; Debts which are overdue for less than 10 days and according to the Groups assessment, could be fully recovered, both overdue principal and interest in accordance with the remaining payment schedule

Group 2: Special mention

n n

Debts which are overdue from 10 days to 90 days; First-time rescheduled debts which, according to the Groups assessment, could be fully recovered, both principal and interest, within the rescheduled payment term

Group 3: Sub-standard
n n n

Debts which are overdue from 91 days to 180 days; First-time rescheduled debts, except for debts which are classified in Group 2; Debts of which interest was waived or reduced because customer was not able to fully repay interest in accordance with the payment schedule

Group 4: Doubtful
n n n

Debts which are overdue from 181 days to 360 days; First-time rescheduled debts which are overdue for less than 90 days within the rescheduled payment term; Second-time rescheduled debts

Group 5: Bad
n n

Debts which are overdue for more than 360 days; First-time rescheduled debts which are overdue for more than 90 days within the rescheduled payment term;

101

ANNUAL REPORT 2011

n n n

Second-time rescheduled debts which are overdue within the second-time rescheduled payment term; Debts which are rescheduled for 3 times or more; Frozen debts and debts which are awaiting resolution

Where a customer owes more than one debt to the Group, and has any of its debts transferred to the group of debts with higher risk, the Group is obliged to classify the remaining debts of such customer into groups of debts with higher risk corresponding with their level of risk. The Group shall actively classify those debts into groups of debts with higher risk corresponding with their level of risk in the following situations:
n n n

There are indications of adverse impact to the customers business environment and sector; Customers financial ratios or repayment capability is weakened; Customer does not accurately, completely and promptly provide the Group its financial information for the Groups assessment of customers repayment capability

Provision for losses on loans, advances and finance leases to customers The determination of specific provision for credit risk is calculated using set rates applied to each group of debts as follows: Provision rates Group 1 - Current Group 2 - Special mentioned Group 3 - Sub-standard Group 4 - Doubtful Group 5 - Bad
0% 5% 20% 50% 100%

The specific provision is calculated based on net credit exposure of each borrower which equals to loan balance or lease balance as at 30 November less value of collateral assets. The value of these assets is determined in accordance with Decision 493/2005/QD-NHNN and Decision 18/2007/QD-NHNN. In accordance with the Decision 493/2005/QD-NHNN dated 22 April 2005, a general provision is also required and should be equal to at least 0.75% of total balance of loans, advances and finance leases to customers, and excluding the total balance of loans, advances and finance leases to customers which are classified as bad. 2.8 Credit commitments Credit commitments are classified into five groups based on quantitative and qualitative factors as follows: Group 1: Current
n

Undue commitments which, according to the Groups assessment, could be fully settled when they fall due.

Group 2: Special mentioned

n

Undue commitments which, according to the Groups assessment, could not be fully settled when they fall due.

ANNUAL REPORT 2011

102

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN Group 3: Sub-standard
n n

Undue commitments which, according to the Groups assessment, could not be fully settled when they fall due; Due commitments which are overdue for less than 30 days

Group 4: Doubtful
n n

Undue commitments which, according to the Groups assessment, could not be fully settled when they fall due; Due commitments and contingencies which are overdue from 30 days to 90 days

Group 5: Bad
n n

Undue commitments which, according to the Groups assessment, could not be fully settled when they fall due; Due commitments which are overdue for more than 90 days

Provision for losses on credit commitments The determination of specific provision for losses on credit commitments is calculated using set rates applied to each group of credit commitments as follows: Provision rates Group 1 - Current Group 2 - Special mentioned Group 3 - Sub-standard Group 4 - Doubtful Group 5 - Bad
0% 5% 20% 50% 100%

The specific provision is calculated based on net credit exposure of each customer which equals to credit commitment balance as at 30 November less value of collateral assets. The value of these assets is determined in accordance with Decision 493/2005/QD-NHNN and Decision 18/2007/QD-NHNN. In accordance with the Decision 493/2005/QD-NHNN dated 22 April 2005, a general provision is also required and should be equal to at least 0.75% of total balance of guarantees, loan commitments and settlement acceptances and excluding guarantees and commitments which are classified as bad. 2.9 Investments (i) Trading securities

Trading securities are securities held for trading and are acquired principally for the purpose of selling in the short-term or if so designated by Management. Trading securities are initially stated at cost of acquisition. Subsequently, they are measured at cost less provision. Provision is made for trading securities eligible for being freely traded in the market and where there is a diminution in value of these securities.

103

ANNUAL REPORT 2011

Gains or losses from disposal of trading securities are recognised in the consolidated income statement and are reported on a net basis. Cost of securities disposed is determined by using the weighted average method. For debt securities acquired at discount or premium, the discount or premium is allocated over the holding period of these securities (ii) Available-for-sale securities

Available-for-sale securities are those intended to be held for an indefinite period of time, which may be sold in response to needs for liquidation or changes in interest rates, exchange rates or equity prices. Available-for-sale securities are initially stated at cost of acquisition. Subsequently, they are measured at cost less provision. Provision is made for available-for-sale securities eligible for being freely traded in the market and where there is a diminution in value of these securities. Gains or losses from disposal of available-for-sale securities are recognised in the consolidated income statement and are reported on a net basis. Cost of securities disposed is determined by using the weighted average method. For debt securities acquired at discount or premium, the discount or premium is allocated over the holding period of these securities (iii) Held-to-maturity securities

Held-to-maturity debt securities are those securities with fixed or determinable payment and fixed maturities that the Groups management has the positive intention and ability to hold to maturity. Held-to-maturity securities are initially stated at cost of acquisition. Subsequently, they are measured at cost less provision. Provision is required if there is evidence of a long-term decline in the value of the securities or in the case where the Group cannot recover its investments. Post-acquisition interest income of held-to-maturity securities is recognised in the consolidated income statement on an accruals basis. Pre-acquisition interest income of held-to-maturity securities is deducted against the cost of acquisition. For debt securities acquired at discount or premium, the discount or premium is allocated over the holding period of these securities (iv) Other long-term investments

Other long-term investments comprise shareholding of less than 20% in investees. These investments are initially stated at cost of acquisition. Provision is made where there is a diminution in value of these investments. Dividends are recognised in the consolidated income statement when the Groups right to receive payment is established

ANNUAL REPORT 2011

104

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 2.10 Fixed assets Tangible and intangible fixed assets Fixed assets are stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the fixed assets. Depreciation Fixed assets are depreciated on the straight-line method to write off the cost of the assets over their estimated useful lives. The principal annual rates used are: Annual rates 2011 Buildings Office equipments Motor vehicles Other assets Computer software 2% 12,5% - 33,3% 16,7% 10% 20%

Land use rights which are granted for a definite term are amortised, using the straight-line method over the terms indicated in the land use right certificate. Land use rights which are granted for an indefinite term are carried out at cost and not amortised.

Gains and losses on disposals are determined by comparing net disposal proceeds with the carrying amount. Proceeds from disposals of fixed assets are recognised as other income and net book values of the assets are recognised as other expense in the consolidated income statement 2.11 Leased assets Leases of property, plant and equipment where the Group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the inception of the lease at the lower of the fair value of leased property or the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charge, are included in long-term borrowings. The interest element of the finance cost is charged to the consolidated income statement over the lease period. The property, plant and equipment acquired under finance leases are depreciated over the shorter of the useful life of the asset or the lease term. Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the consolidated income statement on a straightline basis over the period of the lease 2.12 Gold Gold is revalued at each month end. The differences arising from monthly revaluation are recorded in foreign exchange difference reserve and transferred to the consolidated income statement at the balance sheet date.

105

ANNUAL REPORT 2011

2.13

Cash and cash equivalents For the purpose of the consolidated cash flow statement, cash and cash equivalents comprise cash and precious metals, demand deposit at the State Bank, demand and term deposits at banks with an original maturity of three months or less.

2.14

Derivative financial instruments Derivatives are recorded in a balance sheet account at contract value on the date which a derivative contract is entered into and revalued subsequently at exchange rate of each period end. Gains or losses from realisation of derivatives are recognised in the consolidated income statement. Unrealised gains or losses are recognised in consolidated balance sheet as foreign currency difference reserve and transferred to the consolidated income statement at the balance sheet date.

2.15

Provisions Provisions are recognised when: the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligations. The increase in the provision due to passage of time is recognised as interest expense.

2.16

Provision for severance allowances In accordance with Vietnamese labour laws, employees of the Group are entitled to a severance allowance based on their years of service up to 31 December 2008. This will be paid as a lump sum when the employee leaves the Group. Provision for severance allowance is made in accordance with Circular 07/2004/TT-BTC dated 9 February 2004 and Circular 82/2003/TT-BTC dated 14 August 2003 issued by the Ministry of Finance. Accordingly, a provision for severance allowances was made for up to 31 December 2011.

2.17

Taxation Business income tax expense is recognised in the consolidated income statement based on current income tax and deferred income tax. Current income tax is the amount of business income tax payable or recoverable in respect of the current year taxable profit and the current tax rates. Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of occurrence affects neither accounting nor taxable profit or loss. Deferred income tax is determined at the tax rates that are expected to apply to the financial year when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantively enacted by the balance sheet date.

ANNUAL REPORT 2011

106

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised 2.18 Related parties Enterprises and individuals that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with the Bank and its subsidiaries are related parties of the Group. Associates and individuals owning, directly or indirectly, an interest in the voting power of the Bank and its subsidiaries that gives them significant influence over the enterprise, key management personnel, including directors and officers of the Bank and close members of the family of these individuals and companies associated with these individuals also constitute related parties. In considering each possible related party relationship, attention is directed to the substance of the relationship, and not merely the legal form 2.19 Dividend distribution Dividend distribution to the Groups shareholders is recognised as a liability in the consolidated financial statements in the period in which the dividends are approved by the Groups shareholders. 2.20 Science and Technology Development Fund In accordance with applicable regulations and Letter No. 10186/NHNN-TCKT dated 24 December 2009 to the Bank issued by the State Bank of Vietnam, Science and Technology Fund is fully charged to general and administrative expenses when it is set up and credited to a specific account in other liabilities. Subsequently, this fund will be used for capital expenditures or revenue expenditures which are qualified to be used from the fund. 3 CASH AND PRECIOUS METALS 31.12.2011 Million VND Cash on hand in Vietnamese Dong Cash on hand in foreign currencies Gold Valuable documents 2,920,570 1,656,308 7,279,669 723 11,857,270 31.12.2010 Million VND 1,505,075 1,587,790 9,584,243 741 12,677,849

107

ANNUAL REPORT 2011

BALANCES WITH THE STATE BANK 31.12.2011 Million VND Deposits at the State Bank of Vietnam (SBV) Deposits at the State Bank of Laos Deposit at the National Bank of Cambodia 2,459,705 112,796 234,849 2,807,350 31.12.2010 Million VND 3,336,797 117,059 165,117 3,618,973

Included in deposits at the State Bank of Vietnam is the obligatory reserve. An obligatory reserve is required to be deposited with the SBV. The balance is adjusted once per month and is calculated as 3% of the average balance of customer deposits with terms within one year in Vietnamese dong and 1% of the average balance of customer deposits with terms from above one year. While the balance is adjusted once per month and is calculated as 8% (as at 31 December 2010: 4%) of the average balance of customer deposits with terms within one year in foreign currencies and 6% (as at 31 December 2010: 2%) of the average balance of customer deposits with terms from above one year. Included in deposits at the State Bank of Laos is the restricted balance for capital contribution of Laos branch at a minimum balance of 25% of contributed capital of Laos branch and obligation reserve in accordance to the prevailing regulations of Laos. Included in deposits at the National Bank of Cambodia is the restricted balance of US$3.8 million (as at 31 December 2010: US$1.5 million) for capital contribution which is equal to 10% of the contributed capital of Sacombank Cambodia Bank.

ANNUAL REPORT 2011

108

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 5 PLACEMENTS WITH AND LOANS TO OTHER CREDIT INSTITUTIONS 31 December 2011 Denominated in foreign currencies and gold Million VND

Denominated in VND Million VND Placements with other credit institutions Demand deposits Term deposits 35,094 2,473,161 2,508,255 Loans and advances to other credit institutions Short-term loans Less: Provision for losses on loans and advances to credit institutions 980,542 (1,365) 979,177 3,487,432

Total Million VND

2,173,819 3,960,058 6,133,877

2,208,913 6,433,219 8,642,132

6,133,877

980,542 (1,365) 979,177 9,621,309

31 December 2010 Denominated in foreign currencies and gold Million VND

Denominated in VND Million VND Placements with other credit institutions Demand deposits Term deposits 165,057 12,438,775 12,603,832 Loans and advances to other credit institutions Short-term loans Less: Provision for losses on loans and advances to credit institutions 127,163 (807) 126,356 12,730,188

Total Million VND

3,760,751 4,718,796 8,479,547

3,925,808 17,157,571 21,083,379

8,479,547

127,163 (807) 126,356 21,209,735

109

ANNUAL REPORT 2011

TRADING SECURITIES 31.12.2011 Million VND Debt securities Debt securities issued by other credit institutions Debt securities issued by local corporations Debt securities issued by overseas corporations Equity securities Equity securities issued by other local credit institutions Equity securities issued by local corporations 215,822 288,964 504,786 Total trading securities Less: provision for diminution in value of trading securities (*) 504,786 (155,431) 349,355 Categorised as listed and unlisted trading securities hereunder: 31.12.2011 Million VND Debt securities Non-listed Equity securities Listed Non-listed 441,536 63,250 504,786 Less: provision for diminution in value of trading securities (*) (155,431) 349,355 (*) Provision for diminution in value of trading securities 886,789 543,289 1,430,078 (205,257) 2,280,153 1,055,332 31.12.2010 Million VND 656,008 774,070 1,430,078 2,485,410 (205,257) 2,280,153 366,336 646,435 42,561 1,055,332 31.12.2010 Million VND

ANNUAL REPORT 2011

110

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 2011 Million VND At 1 January Charge for the year (Note 31) Decrease due to disposal of a subsidiary (Note 11(i)) At 31 December 205,257 112,962 (162,788) 155,431 205,257 2010 Million VND 110,708 94,549

DERIVATIVES AND OTHER FINANCIAL ASSETS 31 December 2011 Total contract value (at the foreign exchange rate at the contract date) Million VND Derivative currency financial instruments - Forward contracts - Swap contracts 259,736 9,073,127 9,332,863 5,570 5,570 2,718 2,718 Total book value (at the foreign exchange rate at 31 December) Assets Million VND Liabilities Million VND

31 December 2010 Total contract value (at the foreign exchange rate at the contract date) Million VND Derivative currency financial instruments - Forward contracts - Swap contracts 225,951 2,510,386 2,736,337 3,519 3,563 7,082 Total book value (at the foreign exchange rate at 31 December) Assets Million VND Liabilities Million VND

111

ANNUAL REPORT 2011

LOANS, ADVANCES AND FINANCE LEASES TO CUSTOMERS Loans, advances and finance leases to customers were analysed as follows:

8.1

Analysis by type of customers: 31.12.2011 Million VND Loans to domestic businesses and individuals Discounted notes and valuable papers Financial lease Loans funded by Government, international and other institutions Loans to foreign businesses and individuals Frozen and awaiting resolution loans 77,787,144 548,706 923,953 492,895 786,789 80,539,487 31.12.2010 Million VND 79,817,625 558,126 334,386 1,773,061 1,605 82,484,803

Included in loans and advances to customers is VND3,007,161 million (As at 31 December 2010: VND2,750,325 million) advanced to related parties of Sacombank (Note 42). 8.2 Analysis by industry 31.12.2011 Million VND Trading Agriculture and forestry Manufacturing and processing Construction Individual and community services Warehousing, transportation and communication Training and education Estate agents and consultants Hotels and restaurants Others 12,286,051 9,276,180 29,064,738 5,638,495 6,920,640 2,035,586 2,329,765 3,569,053 988,912 8,430,067 80,539,487 31.12.2010 Million VND 11,793,222 9,004,173 26,790,896 5,515,353 7,223,953 2,040,598 2,173,843 2,802,582 897,198 14,242,985 82,484,803

ANNUAL REPORT 2011

112

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 8.3 Analysis by group 31.12.2011 Million VND Current Special mentioned Sub-standard Doubtful Bad 79,840,392 235,868 101,981 193,335 167,911 80,539,487 8.4 Analysis by maturity 31.12.2011 Million VND Short-term Medium-term Long-term 49,972,927 16,330,141 14,236,419 80,539,487 8.5 Analysis by currency 31.12.2011 Million VND Denominated in Vietnamese Dong Denominated in foreign currencies and gold 64,090,562 16,448,925 80,539,487 8.6 Analysis by geography 31.12.2011 Million VND Ho Chi Minh City Mekong Delta Central and Eastern Northern Overseas 35,387,512 11,153,599 21,223,154 10,821,827 1,953,395 80,539,487 31.12.2010 Million VND 38,430,655 10,854,857 19,796,391 11,629,839 1,773,061 82,484,803 31.12.2010 Million VND 68,483,419 14,001,384 82,484,803 31.12.2010 Million VND 51,904,547 16,282,072 14,298,184 82,484,803 31.12.2010 Million VND 82,010,384 29,899 31,454 60,776 352,290 82,484,803

113

ANNUAL REPORT 2011

8.7

Analysis by type of business entity 31.12.2011 Million VND State-owned enterprises Joint-stock companies Limited companies Private companies Co-operatives Joint ventures 100% foreign-owned enterprises Individuals Others 3,677,347 20,086,296 23,774,054 4,859,534 127,391 331,227 264,200 27,254,519 164,919 80,539,487 31.12.2010 Million VND 2,583,839 19,909,520 23,484,859 4,253,642 268,760 167,258 270,002 30,876,486 670,437 82,484,803

PROVISION FOR LOSSES ON LOANS, ADVANCES AND FINANCE LEASES TO CUSTOMERS Provision for losses on loans, advances and finance leases to customers as at 31 December comprises: 31.12.2011 Million VND Specific provision General provision 188,820 624,120 812,940 31.12.2010 Million VND 218,921 601,682 820,603

9.1

Specific provision for losses on loans, advances and finance leases to customers 2011 Million VND At 1 January Charge for the year Utilisation during the year (*) Decrease due to disposal of a subsidiary (Note 11(i)) At 31 December (*) 218,921 87,028 (47,067) (70,062) 188,820 218,921 2010 Million VND 102,587 119,253 (2,919)

Loans are written-off at the discretion of the Banks Risk Management Committee when they consider that all reasonable efforts for recovery of doubtful loans, including legal actions, have been exhausted. Loans are writtenoff in accordance with the requirements of Decision 493/2005/QD-NHNN.

ANNUAL REPORT 2011

114

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 9.2 General provision for losses on loans, advances and finance leases to customers 2011 Million VND At 1 January Charge for the year Utilisation during the year At 31 December 10 10.1 INVESTMENT SECURITIES Available-for-sale securities 31.12.2011 Million VND Debt securities Government debt securities (i) Debt securities issued by other local credit institutions (i) Debt securities issued by local corporations (ii) 7,180,072 12,927,090 3,904,987 24,012,149 Equity securities Equity securities issued by other local credit institutions Equity securities issued by local corporations Total available-for-sale securities Less: provision for diminution in value of available-for-sale securities 34,860 117,292 152,152 24,164,301 (28,248) 24,136,053 Provision for diminution in value of available-for-sale securities: 2011 Million VND At 1 January Additional/(reversal) during the year (Note 32) Decrease due to disposal of a subsidiary (Note 11(i)) At 31 December (i) 13,065 18,246 (3,063) 28,248 13,065 2010 Million VND 35,519 (22,454) 529,642 529,642 19,530,892 (13,065) 19,517,827 3,842,042 11,509,286 3,649,922 19,001,250 31.12.2010 Million VND 601,682 23,241 (803) 624,120 2010 Million VND 412,930 188,752 601,682

Included in Government debt securities and debt securities issued by other local credit institutions are VND1,756,305 million (As at 31 December 2010: VND3,079,826million) and VND3,045,801 million (As at 31 December 2010: VND1,632,240 million), respectively which are currently pledged at the State Bank of Vietnam (Note 16).

115

ANNUAL REPORT 2011

(ii)

Included in debt securities issued by local corporations is VND300,000 million (As at 31 December 2010: VND850,000 million) of corporate bonds issued by related parties of Sacombank that will mature in 2012 and 2013 (Note 42).

10.2

Held-to-maturity securities 31.12.2011 Million VND Debt securities Government debt securities Debt securities issued by other local credit institutions Debt securities issued by local corporations (i) Debt securities issued by overseas corporations Less: provision for diminution in value of held-to-maturity securities 180,000 52,124 232,124 232,124 (i) 204,170 1,253,334 550,000 2,007,504 2,007,504 31.12.2010 Million VND

Included in debt securities issued by local corporations is VND180 billion (As at 31 December 2010: VND500 billion) of corporate bonds issued by a related party of Sacombank (Note 42).

11

OTHER LONG-TERM INVESTMENTS The Groups other long-term investments are investments in other entities with shareholding of less than 11% and comprise the following companies: Name 31.12.2011 Value Million VND Credit institutions Unlisted credit institutions Non credit institutions (corporations) Listed corporations (i) Unlisted corporations Total long-term investments in other entities Less: provision for diminution in value of other long-term investments Net value of long-term investments in other entities 266,835 387,147 822,969 (157,458) 665,511 149,409 409,975 656,579 (5,995) 650,584 168,987 97,195 31.12.2011 Value Million VND

ANNUAL REPORT 2011

116

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN Provision for diminution in value of available-for-sale securities: 2011 Million VND At 1 January Additional/(reversal) during the year (Note 33) Decrease due to disposal of a subsidiary (Note 11(i)) At 31 December (i) 5,995 156,248 (4,785) 157,458 5,995 2010 Million VND 11,875 (5,880)

Included in the balance of listed corporations is the investment into Sacombank Securities Company which was reclassified from investments in subsidiaries to other long-term investments.

During the year, the Bank sold 57.55 million shares of Sacombank Securities Company with details as follows:
n

9.42 million shares on 13 June 2011 reducing the Banks shareholding in this company to 48.95%. 48.13 million shares on 11 November 2011 reducing the Banks shareholding in this company to 10.95%.

12

TANGIBLE FIXED ASSETS CURRENCY: Million VND Buildings Historical cost At 1 January 2011 New purchases Transfers from construction in progress and purchase of fixed assets (Note 15.1) Decrease due to disposal of a subsidiary (Note 11(i)) Transfers from finance lease assets (Note 14) Foreign exchange difference arising from converting a branch into a subsidiary Disposals Reclassification At 31 December 2011 760,896 2,567 824,380 60,214 188,278 36,096 247,672 23,396 2,021,226 122,273 Office equipment Motor vehicles Other assets Total

609,494 (115,094) (111,082) (11,546) 1,135,235

175,846 (55,536) 2,448 (25,277) (21,291) 960,784

41,899 (4,789) 492 287 (8,120) (1,404) 252,739

88,399 (19,260) 10,610 45 (11,538) 34,241 373,565

915,638 (194,679) 11,102 2,780 (156,017) 2,722,323

117

ANNUAL REPORT 2011

Accumulated depreciation At 1 January 2011 Charge for the year Transfers from finance lease assets (Note 14) Decrease due to disposal of a subsidiary (Note 11(i)) Utilised Science and Technology Development Fund (Note 21.3) Foreign exchange difference arising from converting a branch into a subsidiary Disposals Reclassification At 31 December 2011 Net book value At 1 January 2011 At 31 December 2011 704,847 1,080,969 551,779 577,605 124,286 162,045 221,482 284,904 1,602,394 2,105,523 56,049 22,863 (8,026) (14,603) (2,017) 54,266 272,601 139,431 (29,013) 10,602 668 (9,237) (1,873) 383,179 63,992 31,615 334 (1,675) 76 (3,429) (219) 90,694 26,190 64,946 803 (5,196) 8 (2,199) 4,109 88,661 418,832 258,855 1,137 (43,910) 10,602 752 (29,468) 616,800

Included in office equipment are fixed assets funded by Science and Technology Development Fund with historical cost of VND43,012 million (As at 31 December 2010: VND53,012 million) and accumulated depreciation of VND21,848 million (As at 31 December 2010: VND11,246 million). The accounting policy for those fixed assets is different from similar assets which are purchased outside the Fund. Accordingly, depreciation for those fixed assets is deducted from Science and Technology Development Fund used (Note 21.3) 13 INTANGIBLE FIXED ASSETS CURRENCY: Million VND Computer software Million VND Historical cost At 1 January 2011 New purchases Transfers from construction in progress and purchase of fixed assets (Note 15.1) Decrease due to disposal of a subsidiary (Note 11(i)) Foreign exchange difference arising from converting a branch into a subsidiary Disposals Reclassification At 31 December 2011 356,010 3,514 58,857 (25,599) 1,166 (9,910) 3 384,041 1,275,381 349,473 (58,000) (180,951) (37) 1,385,866 365 (363) 34 36 1,631,756 3,514 408,330 (83,599) 1,166 (191,224) 1,769,943 Land use rights Million VND Other intangible fixed assets Million VND

Total Million VND

ANNUAL REPORT 2011

118

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN Accumulated depreciation At 1 January 2011 Charge for the year Utilised Science and Technology Development Fund (Note 21.3) Decrease due to disposal of a subsidiary (Note 11(i)) Foreign exchange difference arising from converting a branch into a subsidiary Disposal Reclassification At 31 December 2011 Net book value At 1 January 2011 At 31 December 2011 250,274 225,676 1,262,909 1,374,630 56 10 1,513,239 1,600,316 105,736 59,913 8,590 (11,254) (433) (4,189) 2 158,365 12,472 9,695 (10,910) (21) 11,236 309 4 (306) 19 26 118,517 69,612 8,590 (11,254) (433) (15,405) 169,627

Included in computer software are fixed assets funded by Science and Technology Development Fund with historical cost is VND42,949 million (As at 31 December 2010: VND42,949 million) and accumulated depreciation is VND17,099 million (As at 31 December 2010: VND8,509 million). The accounting policy for those fixed assets is different from similar assets which are purchased outside the Fund. Accordingly, depreciation for those fixed assets is deducted from Science and Technology Development Fund used (Note 21.3). 14 FINANCE LEASE ASSETS CURRENCY: Million VND Motor vehicles Historical cost At 1 January 2011 New leases Decrease due to disposal of a subsidiary (Note 11(i)) Transfer to tangible fixed assets (Note 12) At 31 December 2011 Accumulated depreciation At 1 January 2011 Charge for the year Decrease due to disposal of a subsidiary (Note 11(i)) Transfer to tangible fixed assets (Note 12) At 31 December 2011 Net book value At 1 January 2011 At 31 December 2011 19,886 2,024 4,363 367 (3,279) (1,137) 314 24,249 595 (11,404) (11,102) 2,338

119

ANNUAL REPORT 2011

15

OTHER ASSETS 31.12.2011 Million VND Construction in progress and purchase of fixed assets (Note 15.1) Accrued interest income Receivable to the State Budget Advances for office rental (Note 41) Receivables from customers Advances and internal receivables Deferred expenses Dividends receivable Advance for a service agreement Deferred tax assets (Note 37.1) Other gold consigned Gold consigned at another bank Other assets (iv) (v) (iii) (ii) (i) 1,567,033 2,237,418 99,730 31,087 2,024,999 173,155 590,833 438,000 816,000 384,228 8,362,483 31.12.2011 Million VND Financial assets Other assets 5,647,042 2,715,441 8,362,483 (i) 31.12.2010 Million VND 1,153,791 1,795,941 92,942 55,159 1,161,897 49,630 555,026 35,645 9,376 33,087 675,016 5,617,510 31.12.2010 Million VND 3,532,532 2,084,978 5,617,510

Included in receivables from the State Budget is VND57,825 million (2010:VND75,839 million) of interest receivable arising from the interest subsidy programs of the Government. Included in receivables from customers is VND412,939 million (As at 31 December 2010: VND256,111 million) of collateral assets which will be used to compensate for bad debts. The Bank is in legal procedure to transfer ownership of these assets to the Bank or in process to realise these assets for recovery. Included in receivables from customers is VND290,223 million of receivable from two individuals in relation to the sale of 48.13 million shares of Sacombank Securities Company on 11 November 2011. The exposure is secured and will be due in five months from the selling date. (See Note 11(i)). Included in receivables from customers is VND381,179 million of receivable from one individual in relation to the sale of debts with recourse. The exposure will be due in one year from the selling date. Included in receivables from customers is VND170,354 million (As at 31 December 2010: VND185,738 million) of receivable from related parties

(i)

(iii)

This amount represents advances to Sacombank Securities Company in relation to a brokerage contract for purchasing Government bonds.

ANNUAL REPORT 2011

120

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN (iv) (v) This amount represents a security deposit in gold at another bank for deposits from this bank. Included in other assets is VND191,566 million (As at 31 December 2010: VND55,513 million) of collateral assets which will be used to compensate for bad debts. Ownership of these assets has been transferred to the Bank

15.1

Construction in progress and purchase of fixed assets 31.12.2011 Million VND At 1 January Additions Transfer to fixed assets (Note 13 and Note 14) Other transfers Decrease due to disposal of a subsidiary (Note 11(i)) At 31 December 1,153,791 1,932,399 (1,323,968) (184,645) (10,544) 1,567,033 31.12.2010 Million VND 922,974 1,364,971 (1,054,221) (79,933) 1,153,791

16

DUE TO GOVERNMENT AND BORROWINGS FROM THE STATE BANK OF VIETNAM 31.12.2011 Million VND Borrowings by means of discounting, rediscounting valuable papers (Note 10) 2,129,609 31.12.2010 Million VND 4,688,801

17

DEPOSITS AND BORROWINGS FROM OTHER CREDIT INSTITUTIONS 31 December 2011 Denominated in foreign currencies and gold Million VND 10,188 1,969,304 1,979,492 5,363,814 7,343,306

Denominated in VND Million VND Deposits from other credit institutions Demand deposits Term deposits 391,283 4,289,000 4,680,283 Borrowings from other credit institutions 800,000 5,480,283

Total Million VND 401,471 6,258,304 6,659,775 6,163,814 12,823,589

121

ANNUAL REPORT 2011

31 December 2010 Denominated in VND Million VND Deposits from other credit institutions Demand deposits Term deposits 106,474 11,527,133 11,633,607 Borrowings from other credit institutions 16,314 11,649,921 18 18.1 DEPOSITS FROM CUSTOMERS By currency and term 31 December 2011 Denominated in foreign currencies and gold Million VND 1,670,458 813,981 5,963,017 709,207 55,196 9,211,859 11,306 975,847 987,153 2,772,552 3,759,705 117,780 12,502,980 12,620,760 2,788,866 15,409,626 Denominated in foreign currencies and gold Million VND

Totak Million VND

Denominated in VND Million VND Current deposits Term deposits Saving deposits Margin deposits Deposits for specific purposes 10,231,530 6,196,720 49,291,564 60,178 100,401 65,880,393

Total Million VND 11,901,988 7,010,701 55,254,581 769,385 155,597 75,092,252

31 December 2010 Denominated in foreign currencies and gold Million VND 1,484,520 700,461 8,213,927 583,794 1,685 10,984,387

Denominated in VND Million VND Current deposits Term deposits Saving deposits Margin deposits Deposits for specific purposes 10,827,390 9,708,048 46,588,387 158,574 68,630 67,351,029

Total Million VND 12,311,910 10,408,509 54,802,314 742,368 70,315 78,335,416

ANNUAL REPORT 2011

122

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 18.2 Analysis by type of business entity 31.12.2011 Million VND State-owned enterprises Local private companies 100% foreign-owned enterprises Individuals Others 3,827,212 10,816,041 335,014 58,805,979 1,308,006 75,092,252 19 FUNDS RECEIVED FROM GOVERNMENT, INTERNATIONAL AND OTHER INSTITUTIONS 31.12.2011 Million VND Funds received from RDF Funds received from FMO Funds received from SMEDF Funds received from SMEFP Funds received from IFC Funds received from ADB Funds received from PROPARCO Funds received from MLFIII Funds received from NORFUND Funds received from other entities (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) 572,560 2,356,176 15,000 112,316 343,750 370,524 801,077 33,919 104,010 4,347 4,713,679 (i) 2,233,877 31.12.2010 Million VND 402,992 104,859 36,875 110,005 406,250 415,616 757,280 31.12.2010 Million VND 2,815,282 7,392,839 233,187 58,146,487 9,747,621 78,335,416

Funds received from the Rural Development Fund (RDF) are financed by the World Bank for a term from one to five years at interest rate of 0.5% per year of balance in USD and from 10.08% to 10.3% per year of balance in Vietnamese Dong. These funds are lent to borrowers in accordance with the Decision No. 25/QD-NH21 dated 31 January 1997 issued by the Governor of the State Bank of Vietnam. These funds will mature in 2014. Borrowings from Financierings Maatschappij Voor Ontwikkelingslarden (FMO), a bank in the Netherland include two facilities: i) one facility is financed for the Bank and ii) one facility is fianced for a subsidiary of the Bank with details are as follows The facility financed for the Bank is used for the sole purpose of making housing loans to retail non-business clients which meet certain requirements given by FMO. Interest is paid semi-annually at the average rate of 6 month deposit of Vietcombank, Bank for Investment and Development of Vietnam, Asia Commercial Bank and HSBC. These borrowings will mature in 2016.

(ii)

123

ANNUAL REPORT 2011

The facility financed for a subsidiary of the Bank is used for finance leasing to enterprises operating in Vietnam. The borrowing currency is United States Dollars. Interest is paid semi-annually at LIBOR. The borrowing was granted for 5 years and will mature in 2013. (iii) Funds received from the Small and Medium Enterprise Development Fund (SMEDF) are financed by the European Commission. The funds are used to finance Vietnamese small and medium enterprises who meet certain conditions required by the project. The interest rate is quoted as either a fixed rate or floating rate. Fixed rate is equal to the rate paid by the Government on its most recently issued five year bonds less a discount rate. Variable rate is equal to the reference interest rate less a discount rate and is determined every six months thereafter. Reference interest rate is the average 6 month VND deposit rate of Vietcombank, Incombank, Bank for Investment and Development of Vietnam and Bank for Agriculture and Rural Development. Discount rate is applied to each type of interest rates and is fixed by the lender on an annual basis. Discount rate for the first year of credit facility is 0.5% for fixed rate or 1% for variable rate. These funds will mature in 2013. Funds received from the Small and Medium Enterprise Development Fund (SMEDF) are financed by Japan International Cooperation Bank. The funds are used to finance Vietnamese small and medium enterprises. The total facility is VND120 billion at a fixed interest rate equal the Government bond 364 days coupon rate determined at the latest bidding. The first factility from SMEDF II will mature in 2017 and the second facility from SMEDF III will mature in 2020. Funds received from the International Finance Corporation (IFC) are used to finance Vietnamese individuals to purchase and repair houses. The maximum lending period is 10 years and lending currency is Vietnamese dong. The interest rate is determined by a fixed component plus a margin of 1.5% p.a. Prepayment is made each six monthly, starting from 2009. These funds will mature in 2017. Funds received from Asia Development Bank (ADB) are used to finance borrowers which are small and medium enterprises (SME) in Vietnam. The Credit Facility is not exceeding USD25 million and has a maximum term of 6 years. Interest rates are based on LIBOR. Interest is paid on 30 June and 31 December, annually. The fund will mature in 2015. Funds received from Societe De Promotion Et De Participation Pour La Cooperation Economique S.A (PROPARCO) are used to finance or refinance medium and long term loans in USD to borrowers in Vietnam. The Credit Facility is not exceeding USD20 million and has a maximum term of 7 years. Interest rates are fixed or floating rates which are determined at the determination date. Interest is paid on 30 April and 31 October, annually. The fund will mature in 2016. Funds receved from Micro Credit Fund as a part of Rural Development Fund financed by World Bank. The funds are used to finance trade retailers. The funds bear a floating interest rate which is determined on each drawdown and will mature in 2031. Funds received from Norwegian Investment Fund for Developing Countries (Norfund) for a credit facility of US$5 million for 5 years foor granting loans to local borrowers. The exposure as at 31 December 2011 was US$ 5 million at a floating rate of Libor 6 months plus 2.7% p.a. . Funds received from Highway Development Company to entrust the Bank managing the funds. The funds are granted for 6 months at a fixed interest rate of 14% p.a.

(iv)

(v)

(vi)

(vii)

(viii)

(ix)

(x)

ANNUAL REPORT 2011

124

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 20 CERTIFICATES OF DEPOSITS AND BONDS 31 December 2011 Denominated in Denominated in foreign currency VND and gold Million VND Million VND Short-term Medium-term 11,615,643 1,910,102 13,525,745 3,680,838 410,125 4,090,963

Total Million VND 15,296,481 2,320,227 17,616,708

31 December 2010 Denominated in Denominated in foreign currency VND and gold Million VND Million VND Short-term Medium-term 4,501,935 5,567,484 10,069,419 17,629,939 877,778 18,507,717

Total Million VND 22,131,874 6,445,262 28,577,136

21

OTHER LIABILITIES 31.12.2011 Million VND Accrued interest expenses Remittance in transit payable Payables to the State Budget Payables to customers (Note 21.1) Unearned interest income Payables to employees Dividends payable Other payables Provision for severance allowance Other provisions (Note 21.2) Science and Technology Development Fund (Note 21.3) Gold borrowings for trading purpose Payables in relation to gold margin trading in Cambodia Advances from investors for bond brokerage contracts 1,288,768 11,664 230,856 11,813,907 470,505 44,878 472,702 16,564 135,100 61,053 14,545,997 31.12.2010 Million VND 1,206,003 59,531 255,809 12,150 37,119 69,457 5,617 406,284 15,794 52,388 80,245 693,356 2,631,213 2,922,139 8,447,105

125

ANNUAL REPORT 2011

21.1

Payables to customers Included in payables to customers is VND11,801,501 million of gold kept in custodian for customers.

21.2

Other provisions 2011 Million VND General provision for losses on credit contingencies and commitments (i) Provision for receivables from customers (ii) 79,688 55,412 135,100 (i) General provision for losses on credit contingencies and commitments 2011 Million VND At 1 January Charge for the year At 31 December (ii) Provision for receivables from customers: 2011 Million VND At 1 January Addition Utilisation At 31 December 256,830 (201,418) 55,412 2010 Million VND 52,388 27,300 79,688 2010 Million VND 41,855 10,533 52,388 2010 Million VND 52,388 52,388

21.3

Science and Technology Development Fund 31.12.2011 Million VND Science and Technology Development Fund - not yet used (i) Science and Technology Development Fund-used (ii) 4,040 57,013 61,053 (i) Movement of Science and Technology Development Fund not used: 31.12.2010 Million VND 4,040 76,205 80,245

ANNUAL REPORT 2011

126

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN

2011 Million VND At 1 January Utilisation during the year At 31 December (ii) Science and Technology Development Fund-used: 2011 Million VND At 1 January Used for purchases of fixed assets Decreases by accumulated depreciation of fixed assets financed by this fund At 31 December 22 22.1 CAPITAL Share capital 31.12.2011 Million VND Issued and fully paid chartered capital 10.739.677 76.205 (19.192) 57.013 4.040 4.040

2010 Million VND 5.013 (973) 4.040

2010 Million VND 94.343 973 (19.111) 76.205

31.12.2010 Million VND 9.179.230

In accordance with Official Letter No. 5205/NHNN-TTGSNH dated 6 July 2011 issued by the State Bank of Vietnam - Ho Chi Minh City Branch, the Banks chartered capital was increased to VND10,739,677 million.

127

ANNUAL REPORT 2011

Number of shares

Ordinary shares Share premiumTreasury shares Million VND Million VND 1,376,877 268,014 26,802 79,111 Million VND -

Total share capital Million VND 8,077,230 1,004,799 1,608,085 160,809 79,111

At 1 January 2010 Nominal value of shares issued stock dividends New issues to existing shareholders New issues to employees New issues to shareholders of a subsidiary At 31 December 2010 New issues to existing shareholders New issues to employees Decrease due to disposal of a subsidiary (Note 11(i)) Purchase of treasury shares At 31 December 2011 22.2 Other capital

670,035,300 100,479,947 134,007,060 13,400,706

6,700,353 1,004,799 1,340,071 134,007

917,923,013 135,962,906 20,081,745

9,179,230 1,359,629 200,818

1,750,804 (79,111)

10,930,034 1,359,629 200,818 (79,111)

(96,343,400) 977,624,264

10,739,677

1,671,693

(1,450,558) (1,450,558)

(1,450,558) 10,960,812

31.12.2011 Million VND Capital for finance of fixed assets and capital construction Others 795 153 948

31.12.2010 Million VND 795 153 948

ANNUAL REPORT 2011

128

129
Form B 05/TCTD - HN CURRENCY: Million VND Reserve for supplementary Retained chartered Financial earnings capital provision fund Foreign exchange differences Other reserves 80 (730) 659,296 209,290 (46,372) 1,958,008 546,358 (40,005) 828,581 (650) 87,216 650 87,216 152,506 280,839 (249,009) 580 184,916 283,783 (282,538) 106 (20,307) 164,960 1,463,937 1,910,340 (576,991) (1,004,799) (254) (32,673) 1,759,560 1,995,857 (600,590) (1,376,885) (517) 74,549 106,034 108,517 484,213 (2,208) (366) (2,208) 101,848 194,304 384,573 467,566 Total 2,468,582 1,910,340 (1,004,799) (254) (249,295) (37,239) 3,087,335 1,995,857 (1,376,885) (282,538) 86,699 74,655 3,585,123

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011

ANNUAL REPORT 2011

23

RESERVES AND RETAINED EARNINGS

At 1 January 2010

Consolidated net profit for the year

Appropriation to reserves

Stock dividends

Dividends paid in cash and payable

Other movements

Transfer to minority interest

At 31 December 2010

Consolidated net profit for the year

Appropriation to reserves

Dividends payable

Payments from reserves

Other movements of reserves

Transfer to minority interest

Movements due to disposal of a subsidiary (Note 11(i))

At 31 December 2011

129

ANNUAL REPORT 2011

In accordance with Decree No. 146/2005/ND-CP dated 23 November 2005 issued by the Government, the Bank is required to establish the following reserves: Reserve for supplementary chartered capital: 5% of the net profit after business income tax each year as a minimum statutory level is allocated.
n

Financial provision fund: 10% of the net profit after the allocation to the above reserve is allocated until the reserve balance reaches 25% of the current capital
n

Foreign exchange difference Foreign exchange difference arose from the revaluation of the contributed capital in Sacombank Cambodia as a result of converting the branch into the subsidiary. Other reserves Other reserves include the fund for investment and development and the welfare and bonus fund. The allocations to the fund for investment and development and welfare and bonus fund have been approved by the Board of Management of the Bank and the Annual General Meeting on 2 April 2011. Dividend A dividend of 15% for 2010 was ratified at the 2011 Annual General Meeting on 2 April 2011 and was reflected in the consolidated financial statements for the year ended 31 December 2011. Dividends for 2011 to be declared are not accounted for until they have been ratified at the next Annual General Meeting. The Board of Management has planned to propose a dividend distribution at a rate of 14% for the year ended 31 December 2011. The consolidated financial statements for the year ended 31 December 2011 do not reflect this plan, which, if subsequently ratified, will be accounted for in the shareholders equity as an appropriation of retained earnings in the year ending 31 December 2012 24 MINORITY INTEREST CURRENCY: Million VND Retained Share earnings premium undistributedi 61,189 61,189 (61,189) -32,673 (766) 31,907 (70,574) (3,975) (33,149) 75,791 Foreign currency difference reserve 730 730 (730) --

Ordinary shares At 1 January 2010 Additional capital Share of profit Share of reserve allocated Share of payment of reserve Reclassification of a joint venture to a subsidiary At 31 December 2010 Share of loss Share of reserve allocated Share of payment of reserve Dividend received Disposal of a subsidiary (Note 11(i)) At 31 December 2011 206,800 345,605 3,249 555,654 (555,654) --

Other reserves 23,342 4,416 (580) 27,178 3,975 (4,080) (27,073) --

Total 230,142 406,784 32,673 5,146 (580) 2,483 676,658 (70,574) (4,080) (33,149) (568,855)

ANNUAL REPORT 2011

130

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 25 BASIC EARNINGS PER SHARE Basic earnings per share is calculated by dividing the net profit attributable to the equity holders of the Bank by the weighted average number of ordinary shares in issue during the year. 2011 Profit attributable to the equity holders of the Bank (million VND) Net profit used to determine basic EPS (million VND) Weighted average number of ordinary shares in issue (share) Basic earnings per share (VND per share) 2.066.431 2.066.431 922.149.772 2.241 2010 1.871.696 1.871.696 788.885.573 2.373

26

INTEREST AND SIMILAR INCOME 2011 Million VND On loans and advances to customers On deposits at and loans and advances to other credit institutions On investments On finance leases Other income from credit activities 13,625,019 1,298,090 2,706,829 105,774 128,555 17,864,267 2010 Million VND 9,445,629 763,421 1,411,635 75,379 105,502 11,801,566

27

INTEREST AND SIMILAR EXPENSES 2011 Million VND On deposits from customers On borrowings from local credit institutions On certificates of deposits and bonds Others 8,934,421 1,541,729 1,448,125 97,765 12,022,040 2010 Million VND 6,034,561 1,350,735 462,161 63,558 7,911,015

131

ANNUAL REPORT 2011

28

FEES AND COMMISSION INCOME 2011 Million VND Guarantees Settlement services Cash services Brokerage services Warehouse lease and management, property valuation Other services 149,510 674,033 131,736 55,119 46,383 605,581 1,685,590 2010 Million VND 106,293 573,819 151,593 116,534 58,817 429,061 1,436,117

29

FEES AND COMMISSION EXPENSES 2011 Million VND Settlement and cash services Postage and telecommunication Brokerage services Other expenses 89,809 57,801 122,124 374,461 644,195 2010 Million VND 68,740 42,270 26,924 155,425 293,359

30

NET GAIN/(LOSS) FROM DEALING IN FOREIGN CURRENCIES AND GOLD 2011 Million VND Gains from dealing in foreign currencies and gold Loss from dealing in foreign currencies and gold Gain from revaluation of foreign currencies and gold Loss from revaluation of foreign currencies and gold 1,232,328 (1,163,553) 188,613 (53,120) 204,268 2010 Million VND 1,145,348 (1,421,044) 367,468 (593,984) (502,212)

ANNUAL REPORT 2011

132

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 31 NET (LOSS)/GAIN FROM TRADING OF TRADING SECURITIES 2011 Million VND Income from disposal of trading securities Less: Losses from disposal of trading securities Less: Provision for diminution in value of trading securities 85.170 (158.657) (112.962) (186.449) 2010 Million VND 121.029 (8.434) (94.549) 18.046

32

NET LOSS FROM DISPOSAL OF INVESTMENT SECURITIES 2011 Million VND Income from disposal of investment securities Less: Losses from disposal of investment securities (Making)/Reversal of provision for diminution in value of investment securities 7,645 (122) (18,246) (10,723) 2010 Million VND 56,991 (230,840) 22,454 (151,395)

33

(EXPENSE)/INCOME FROM INVESTMENTS IN OTHER ENTITIES 2011 Million VND From trading equity securities From investment equity securities From investments in associate From investments in other entities Recovery of the shared profit in the disposed associate Reversal of provision for investments in other entities (Loss)/gain from disposal of long term investments (i) Less: provision for diminution in value of other long term investments 34,665 12,896 25,229 (158,569) (156,248) (242,027) (i) 2010 Million VND 71,093 10,106 4,665 17,602 (33,790) 5,880 447,252 522,808

Included in (loss)/gain from disposal of a subsidiary is a loss of VND159,293 million (2010: a gain of VND352,000 million) from the disposal of the Banks shareholding in Sacombank Securities Joint Stock Company (See Note 11(i)).

133

ANNUAL REPORT 2011

34

GENERAL AND ADMINISTRATIVE EXPENSES 2011 Million VND Tax, duties and fees Salaries and related expenses Depreciation and amortisation Assets expenses Administrative expenses Deposit insurance premiums 96,029 1,944,550 328,834 421,408 718,188 80,127 3,589,136 2010 Million VND 45,250 1,021,646 273,035 344,133 425,381 68,288 2,177,733

35

NET OTHER INCOME 2011 Million VND Other income Proceeds from disposals of fixed assets Other income 445,536 62,897 508,433 Other expenses Expenses on disposals of fixed assets Land rental of the disposed fixed assets Construction and renovation cost of the disposed assets Other expenses Net other income (302,368) (81,091) (8,076) (10,822) (402,357) 106,076 (413,361) (3,603) (416,964) 135,451 488,085 64,330 552,415 2010 Million VND

36

VALUE ADDED TAX Earned fees and commissions are subject to value added tax at the rate of 10% under the deduction method, foreign currency and gold operations are subject to value added tax at the rate of 10% under the direct method. All other banking activities of the Group are exempt from value added tax

ANNUAL REPORT 2011

134

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 37 BUSINESS INCOME TAX (BIT) 2011 Million VND Current income tax Deferred income tax (Note 37.1) 774,817 774,817 2010 Million VND 655,512 (5,410) 650,102

Business income tax charge is based on the estimated taxable income of the Bank and its subsidiaries and is subject to the review and possible adjustment by the tax authorities. 2011 Million VND Net profit before tax Tax Effect of: Tax on income not subject to tax Tax on expenses not deductible Difference in tax rate of foreign operations Additional BIT paid for previous years (*) Tax overprovided by a subsidiary in 2009 Deferred tax (54,351) 104,465 5,361 85 774,817 (*) The amounts represent the additional business income tax based on the examinations of the Tax Authority. (52,967) 68,008 2,363 (26,964) (5,410) 650,102 2,770,674 719,257 2010 Million VND 2,560,442 665,072

The Banks tax returns are subject to periodic examination and possible adjustment by the Tax Authority. The tax assessments for the year 2011 have not yet been made by the Tax Authority 37.1 Deferred income tax Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same taxation authority. Year end balances are as follows. The gross movement in the deferred income tax assets is as follows: 2011 Million VND Beginning of the year Credit to the income statement Decrease due to disposal of a subsidiary (Note 11(i)) End of the year 9,376 (9,376) 9,376 2010 Million VND 3,966 5,410

135

ANNUAL REPORT 2011

The deferred income tax assets arises from the provision for diminution in value of unlisted investments and severance allowance of a subsidiary. 38 EMPLOYEES REMUNERATION 2011 Million VND Number of employees Employees remuneration Total salary fund Bonus Total remuneration Average annual salary/employee Average annual remuneration/employee 1,106,137 513,961 1,620,098 115.3 168.8 731,409 210,922 942,331 87.6 112.8 9,596 2010 Million VND 8,354

39

OBLIGATIONS TO THE STATE BUDGET Movements during the year 1 January 2011 Million VND VAT BIT Other taxes Other fees 11,983 200,951 23,890 1,883 238,707 Payable Million VND 193,826 774,817 228,521 212,302 1,409,466 Payments Million VND (225,872) (803,762) (212,711) (211,154) (1,453,499) 31 December 2011 Million VND (20,063) 172,006 39,700 3,031 194,674

ANNUAL REPORT 2011

136

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 40 CONTINGENCIES AND COMMITMENTS The aggregate amounts of outstanding guarantees, letters of credit and other commitments at the end of the year were: 31 December 2011 Denominated in VND Million VND Letters of credit at sight Deferred letters of credit Borrowing guarantees Payment guarantees Performance guarantees Bidding guarantees Other guarantees Foreign currency buying spot transactions Foreign currency selling spot transactions Foreign currency paid swap transactions Foreign currency received swap transactions 1,514 35,700 1,421,269 350,177 97,083 318,914 55,478 1,482,623 3,762,758 Denominated in foreign currencies Million VND 3,538,974 2,108,624 63,487 24,167 2,605 300,724 2,395,720 2,313,784 14,151,758 12,447,245 37,347,088

Total Million VND 3,540,488 2,108,624 35,700 1,484,756 374,344 99,688 619,638 2,395,720 2,313,784 14,207,236 13,929,868 41,109,846

31 December 2010 Denominated in VND Million VND Letters of credit at sight Deferred letters of credit Borrowing guarantees Payment guarantees Performance guarantees Bidding guarantees Other guarantees Foreign currency buying spot transactions Foreign currency selling spot transactions Foreign currency paid swap transactions Foreign currency received swap transactions 17,720 1,064,093 377,537 92,787 201,199 65,688 7,940 1,826,964 Denominated in foreign currencies Million VND 4,202,877 985,313 38,281 32,261 3,219 167,752 2,161,302 2,275,581 2,444,591 2,630,586 14,941,763

Total Million VND 4,202,877 985,313 17,720 1,102,374 409,798 96,006 368,951 2,161,302 2,275,581 2,510,279 2,638,526 16,768,727

In the normal course of business, the Group makes various commitments and incurs certain contingent liabilities that are presented off balance sheet. The commitments and contingent liabilities include guarantees, letters of credit, foreign currency forward contracts and undue spot contracts. The Group does not anticipate any significant losses as a result of these transactions.

137

ANNUAL REPORT 2011

41

COMMITMENTS UNDER OPERATING LEASES 31.12.2011 Million VND Commitments under operating lease (*) Capital commitments Total minimum payments (*) 1,523,112 364,148 1,887,260 31.12.2010 Million VND 1,418,509 495,554 1,914,063

According to Office Rental Lease Contract No. 39/2006/HDTVP dated 8 April 2006 between Sacombank (lessee) and Tadimex (lessor), Sacombank committed to lease the building at 266-268 Nam Ky Khoi Nghia, District 3, Ho Chi Minh City for a lease term of 39 years from 1 March 2007 to 28 February 2045 with the total space of 20,317 square metres. In accordance with the contracts terms, the Bank advanced a sum of US$3,500,000 to Tadimex to part finance the construction of the building. This amount will be deducted against the annual rental fee over 11 years with US$500,000 for the first year and US$300,000 for the following years from the lease commencement. Monthly rental fee for the first year is US$6/square metre/month for the basement and US$12/square metre/month for the other floors. The rental fee for the second year onwards will increase by 1% annually.

42

RELATED PARTY TRANSACTIONS AND BALANCES During the year, the Group had the following transactions and balances with related parties: 2011 Million VND Transactions during the year Interest expenses paid Interest income received Dividends paid Expenses for assets leasing Income from sales of assets Fee income Other income Balances as at 31 December Demand deposit balance Loan balance Investments in debt securities Advance for office rental Other receivables Loan guarantee Other payables 555,586 3,007,161 480,000 29,827 213,842 1,208,819 2,750,325 1,350,000 35,959 306,601 100,000 38,281 41,288 455,904 131,385 37,834 1,997 384 15,707 349,054 126,051 28,392 17,893 2010 Million VND

The remuneration of the Board of Management and Board of General Directors of the Bank for the year are VND18,600 million (2010: VND9,732 million) and VND24,547 million (2010: VND15,719 million), respectively.

ANNUAL REPORT 2011

138

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 43 CONCENTRATIONS OF ASSETS AND LIABILITIES BY GEOGRAPHICAL AREA Loans and Deposits and advances to borrowings from customers and customers and other credit other credit institutions institutions Million VND Domestic Overseas 79,566,634 1,953,395 81,520,029 44 FINANCIAL RISK MANAGEMENT The Groups business involves taking on risks in a targeted manner and managing them professionally. The core functions of the Groups risk management are to identify all key risks for the Group, measure these risks, manage the risk positions and determine capital allocations. The Group regularly reviews its risk management policies and systems to reflect changes in markets, products and best market practice. The Groups aim is to achieve an appropriate balance between risk and return and minimise potential adverse effects on the Groups financial performance. The Group defines risk as the possibility of losses or profits foregone, which may be caused by internal or external factors. Risk management is carried out by a risk management department under policies approved by the Board of General Directors. The Risk Management Department identifies, evaluates and hedges financial risks in close co-operation with the Groups operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments. In addition, internal audit is responsible for the independent review of risk management and the control environment. The risks arising from financial instruments to which the Group is exposed are financial risks, which includes credit risk, liquidity risk, market risk and operational risk 44.1 Credit risk Credit risk is the risk of suffering financial loss, should any of the Groups customers, clients or market counterparties fail to fulfil their contractual obligations to the Group. Credit risk arises mainly from lending activities and financial guarantees under many ways. The Group is also exposed to other credit risks arising from investments in debt securities and other exposures arising from its trading activities (trading exposures), including non-equity trading portfolio assets, derivatives and settlement balances with market counterparties. Credit risk is the single largest risk for the Groups business; management therefore carefully manages its exposure to credit risk. The credit risk management and control are centralised in a credit risk management team, which reports to the Board of General Directors and head of each business unit regularly Million VND 104,147,724 6,098,503 110,246,227 Derivatives financial instruments (total contract value) Million VND 1,666,820 7,666,043 9,332,863

Credit commitments Million VND 2,614,126 5,649,112 8,263,238

Trading and investment securities Million VND 25,672,056 52,124 25,724,180

139

ANNUAL REPORT 2011

44.1.1 Credit risk measurement and provisioning policies (a) Loans and guarantees to customers Credit risk measurement is carried out before and during loan period. The Group has developed models to support the quantification of the credit risk. These rating and scoring models are in use for all key credit portfolios and form the basis for measuring default risks before and during loan period. The Group applies Decision 493/2005/QD-NHNN dated 22 April 2005 and Decision 18/2007/Q-NHNN dated 25 April 2007 of the State Bank of Vietnam for measurement of credit risk and estimate of provision for loans and guarantees to customers as presented in Note 2.7 and Note 2.8 (b) Debt securities The Groups investment in debt securities are those issued by the Government, reputable credit institutions and economic organisations. The credit risk management is measured on a case-by-case basis when the Group assesses that the risk profile of the counterparty is changed. The investments in those securities are viewed as a way to gain a better credit quality mapping and maintain a readily available source to meet the funding requirement at the same time. 44.1.2 Credit risk limit control and mitigation policies The Group manages credit risk by placing limits on exposures (for both on and off balance sheet exposures) in relation to one borrower, or groups of borrowers in accordance with regulation of the State Bank of Vietnam. In addition, exposure to credit risk is also managed through regularly reviewing the acceptance classes of collateral and analysing the ability of borrowers and potential borrowers to meet interest and capital repayment obligations. The Group has a range of policies and practices to mitigate credit risk. The most traditional of these is the taking of security for funds advances, which is common practice. The principal collateral types for loans and advances are:
n

Mortgages over residential properties; Charges over business assets such as premises, machineries and equipment, inventory and accounts receivable; Charges over financial instruments such as debt securities and equities

For secured loans, collateral is independently valued by the Group from which it applies specific discount rates to determine the maximum amount of loans that can be granted. The specific discount rates for each type of collateral are guided under Decision 493/2005/QD-NHNN dated 22 April 2005 and Decision 18/2007/Q-NHNN dated 25 April 2007 of the State Bank of Vietnam and are adjusted by the Group on case-by-case basis. When the value of collateral is reduced, the Group will ask the borrower to provide additional collateral to maintain the security over the loan exposure. Credit related commitments mainly include letters of credit and financial guarantee contracts which carry the same credit risk as loans. Documentary and commercial letters of credit - which are written undertakings by the Group on behalf of a customer authorising a third party to draw drafts on the Group up to a stipulated amount under specific terms and conditions - are collateralised by the underlying shipments of goods to which they relate and therefore carry less risk than a direct loan. Issuance of financial guarantee contracts and letters of credit are subject to the same credit assessment and approval process as those for loans and advances to customers, unless the customer places 100% margin deposits for the related commitment

ANNUAL REPORT 2011

140

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 44.1.3 Maximum exposure to credit risk before collateral held or other credit enhancements The maximum exposure to credit risk of each financial asset group is the gross carrying amount reported in the balance sheet as follows: Maximum exposure 31.12.2011 Million VND Credit risk exposures relating to on-balance sheet assets Balances with the State Bank Placements with and loans to other credit institutions Loans and advances to customers: - To individuals - To corporate entities Derivatives and other financial assets Investment securities: - Debt securities available for sale - Debt securities held to maturity Other financial assets 24,012,151 232,124 5,647,042 122,862,315 Credit risk exposures relating to off-balance sheet items: Financial guarantees Letters of credit commitment 2,614,126 5,649,112 8,263,238 1,994,848 5,188,190 7,183,038 19,001,250 2,007,504 3,532,532 131,861,878 27,507,141 53,032,346 2,852 32,236,896 50,247,907 7,081 2,807,350 9,621,309 3,618,973 21,209,735 31.12.2010 Million VND

The above table represents a worst case scenario of credit risk exposure of the Bank at 31 December 2011 and 2010 without taking account of any collateral held or other credit enhancements attached.

141

ANNUAL REPORT 2011

44.1.4 Collaterals As a common practice in Vietnam, the Bank normally takes security for loans and advances to customers. The main types of collateral obtained by the Bank are as follows: 31 December 2011 Million VND Real estate Machinery, tools Vehicles Inventories Valuable papers Others 87,652,798 4,587,163 6,545,859 7,686,786 14,303,534 5,983,998 126,760,138 31 December 2011 Million VND 78,416,701 3,689,980 6,276,691 8,987,689 22,286,831 3,146,935 122,804,827

Customers assets held as collateral are recorded off balance sheet and valued in accordance with State Bank of Vietnam regulations.

ANNUAL REPORT 2011

142

143
Form B 05/TCTD - HN Balances with the State Bank Million VND Loans and advances to customers Million VND Debt securities Million VND 24,244,275 24,244,275 2,852 24,244,275 78,374,393 1,465,999 699,095 80,539,487 (812,940) 79,726,547 2,852 2,852 2,807,350 2,807,350 2,807,350 9,619,944 (1,365) 9,621,309 9,621,309 Placements with and loans to other credit institutions Million VND Derivatives and other financial instruments Million VND Other financial assets Million VND 5,530,135 116,907 5,647,042 (55,412) 5,391,630 Total Million VND 120,580,314 1,465,999 816,002 122,862,315 (869,717) 121,992,598 1,365 1,365 188,820 624,120 812,940 55,412 55,412 244,232 625,485 869,717

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011

ANNUAL REPORT 2011

44.1.5 Credit quality

Credit quality is summarised as follows:

As at 31 December 2011

Balances neither past due nor provided

Balances past due but not provided (i)

Balances with provision (ii)

Gross value

Less: provision for credit risk

Net value

Provision for credit risk Specific provision General provision

143

ANNUAL REPORT 2011

44.1.5 Credit quality (continued)

As at 31 December 2010

Balances with the State Bank Million VND Loans and advances to customers Million VND Debt securities Million VND Total Million VND Other financial assets Million VND

Placements with and loans to other credit institutions Million VND Derivatives and other financial instruments Million VND

Balances neither past due nor provided 3,618,973 3,618,973 3,618,973 807 820,603 807 601,682 218,921 21,208,928 81,664,200 7,081 21,008,754 (807) (820,603) 21,209,735 82,484,803 7,081 21,008,754 436,304 708,587 590,679 3,532,532 3,532,532 21,209,735 81,339,912 7,081 21,008,754 2,941,853

130,126,308 1,299,266 436,304 131,861,878 (821,410) 131,040,468 218,921 602,489 821,410

Balances past due but not provided (i)

Balances with provision (ii)

Gross value

Less: provision for credit risk

Net value

Provision for credit risk

Specific provision

General provision

ANNUAL REPORT 2011

144

144

ANNUAL REPORT 2011

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 44.1.5 Credit quality (continued) (i) Loans to customers and other financial assets past due but not provided As at 31 December 2011 Individual Corporate entity Million VND Loans to customers Gross amount Book value of collateral assets Amount of undercollateralisatio As at 31 December 2010 580,217 580,217 1,428,339 -Million VND 885,782 885,782 1,183,211 -Total Million VND 1,465,999 1,465,999 3,241,550 Total Million VND 708,587 590,679 1,299,266 735,904 563,362 Form B 05/TCTD - HN

Individual Corporate entity Million VND Million VND 291,201 590,679 881,880 318,579 563,301

Loans to customers Other financial assets Gross amount Book value of collateral assets Amount of undercollateralisation (ii) Loans to customers and other financial assets with provision As at 31 December 2011

417,386 417,386 417,325 61

Individual Corporate entity Million VND Million VND 515,550 116,907 632,457 741,622

Total Million VND 699,095 116,907 816,002 1,075,476

Loans to customers Other financial assets Total Book value of collateral assets As at 31 December 2010 Loans to customers Total Book value of collateral assets

183,545 183,545 333,854

252,236 252,236 325,561

184,068 184,068 298,914

436,304 436,304 624,475

145

ANNUAL REPORT 2011

44.1.6 Concentration of risks of financial assets with credit risk exposure (a) Geographical sectors The following table breaks down the Groups main credit exposures at their carrying amounts, as categorised by geographical region as at 31 December 2011 and 2010. For this table, the Group has allocated exposures to regions based on the country of domicile of the counterparties. 2011 Vietnam Million VND Balances with the State Bank Placements with and loans to other credit institutions Loans and advances to customers: - To individuals - To corporate entities Derivatives and other financial assets Investment securities: - Debt securities available for sale - Debt securities held to maturity Other financial assets At 31 December 2011 Credit risk exposures relating to off-balance sheet items: Financial guarantees Letters of credit commitment At 31 December 2011 2,614,126 5,649,112 8,263,238 2,614,126 5,649,112 8,263,238 24,012,151 180,000 5,642,075 120,016,225 1,566,632 52,124 4,967 1,279,458 24,012,151 232,124 5,647,042 122,862,315 27,016,129 51,569,963 2,852 324,513 842,093 166,499 620,290 27,507,141 53,032,346 2,852 2,459,705 9,133,350 Cambodia Million VND 234,849 165,177 Lao Million VND 112,796 322,782 Total Million VND 2,807,350 9,621,309

ANNUAL REPORT 2011

146

147
Form B 05/TCTD - HN Vietnam Million VND 3,336,797 21,209,735 31,241,121 49,470,621 7,081 19,001,250 2,007,504 3,495,185 129,769,294 1,503,627 30,443 6,904 588,957 535,435 241,851 772,632 223,143 21,209,735 32,236,896 50,247,907 7,081 19,001,250 2,007,504 3,532,532 131,861,878 165,117 117,059 3,618,973 Million VND Million VND Million VND Cambodia Lao Total 1,994,848 5,188,190 7,183,038 1,994,848 5,188,190 7,183,038

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011

444.1.6

Concentration of risks of financial assets with credit risk exposure (continued)

ANNUAL REPORT 2011

(a)

Geographical sectors (continued)

2010

Balances with the State Bank

Placements with and loans to other credit institutions

Loans and advances to customers:

- To individuals

- To corporate entities

Derivatives and other financial assets

Investment securities:

- Debt securities available for sale

- Debt securities held to maturity

Other financial assets

At 31 December 2010

Credit risk exposures relating to off-balance sheet items:

Financial guarantees

Letters of credit commitment

At 31 December 2010

147

ANNUAL REPORT 2011

44.1.6 Concentration of risks of financial assets with credit risk exposure (continued)

(b)

Industry sector

The following table breaks down the Groups main credit exposures at their carrying amounts, as categorised by the industry sectors of the counterparties Currency: Million VND Financial Whole-sale institutions and retail and State Manufacturing Real estate trade Public Agriculture sector Construction and forestry 5,638,495 1,554,981 173,859 7,367,335 Others 2,807,350 9,621,309 20,459,286 2,691,924 35,579,869 29,251,744 5,906,573 12,488,347 6,958,583 184,155 287,513 200,382 37,943 2,050,008 2,852 29,064,737 3,569,052 12,287,965 6,920,640 -

Total 2,807,350 9,621,309

Balances with the State Bank

Placements with and loans to other credit institutions (*)

Loans and advances to customers (*)

9,276,180 13,782,418 80,539,487 132,105 1,939,461 2,852 180,000 24,244,275 5,647,042 9,408,285 15,901,879 122,862,315

Derivatives and other financial instruments

Debt securities

Other financial assets (*)

As at 31 December 2011

Credit risk exposures relating to off-balance sheet items are as follows: Financial Whole-sale institutions and retail and State Manufacturing Real estate trade 1,856 1,856 3,396,827 3,047,510 4,996 5,429 349,317 433 260,399 210,847 471,246

Public Agriculture sector Construction and forestry 48,115 29,709 77,824 316,497 74,297 390,794

Others 101,347 1,536,162 448,384 1,833,369 549,731 3,369,531

Total 2,614,126 5,649,112 8,263,238

Financial guarantees

Letters of credit commitment

As at 31 December 2011

ANNUAL REPORT 2011

(*): the above balances exclude provision.

148

148

ANNUAL REPORT 2011

149
Form B 05/TCTD - HN Currency: Million VND Financial Whole-sale institutions and retail and State Manufacturing Real estate trade Public Agriculture sector Construction and forestry 1,967,824 17,727 1,985,551 5,451,736 750,000 88,714 6,290,450 3,618,973 21,209,735 2,573,937 17,658,754 1,415,845 46,477,244 19,896,226 8,405,472 13,190,621 142,541 348,587 334,363 2,100,000 7,081 19,746,604 5,956,885 12,856,258 Others Total 3,618,973 - 21,209,735 9,004,173 24,927,386 82,484,803 110,885 1,073,870 7,081 500,000 21,008,754 3,532,532 9,115,058 26,501,256 131,861,878 Financial Whole-sale institutions and retail and State Manufacturing Real estate trade 2,257,364 1,591,924 665,440 3,320 3,320 506,881 300,107 806,988 Public Agriculture sector Construction and forestry 51,680 193 51,873 85,900 92,097 177,997 84,828 264,092 348,920 Others 596,799 2,939,777 3,536,576 Total 1,994,848 5,188,190 7,183,038

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011

44.1.6 Concentration of risks of financial assets with credit risk exposure (continued)

ANNUAL REPORT 2011

(b)

Industry sector (continued)

Balances with the State Bank

Placements with and loans to other credit institutions (*)

Loans and advances to customers (*)

Derivatives and other financial instruments

Debt securities

Other financial assets (*)

As at 31 December 2011

Credit risk exposures relating to off-balance sheet items are as follows:

Financial guarantees

Letters of credit commitment

As at 31 December 2011

(*): the above balances exclude provision.

149

ANNUAL REPORT 2011

44.2

Market risk The Group takes on exposure to market risks, which is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risks arise from open positions in interest rate, currency and equity products, all of which are exposed to general and specific market movements and changes in the level of volatility of market rates or prices such as interest rates, credit spreads, foreign exchange rates and equity prices.

44.2.1 Foreign exchange risk Foreign exchange risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Group was incorporated and operates in Vietnam, with VND as its functional currency. The major currency in which the Group transacts is VND. The exchange rate between VND and foreign currencies during the year fluctuated significantly. The Groups loans and advances were mainly denominated in VND with the remainder mainly in USD. However, some of the Group other assets are in currencies other than the functional currency and USD. The Group management has set limits on positions by currency. Positions are monitored on a daily basis and hedging strategies used to ensure positions are maintained within established limits

ANNUAL REPORT 2011

150

151
CURRENCY: Million VND VND 947,913 1,330,081 4,831,623 14,573,130 309,718 22,249,681 843,933 16,000,281 371 408,156 6,177 83,569 26,249 360,836 12,925 189,131 1,060,800 5,259,856 1,556,023 26,793 180,015 20,716 142,034 22,156 29,755 19,665 139,757 52,124 7,279,669 200,977 56,676 192,553 154,050 104,862 88,342 USD GOLD EUR JPY AUD CAD Others Total 11,857,270 2,807,350 9,622,674 504,786 5,279,521 80,539,487 24,396,425 822,969 37,719 3,707,863 207,957 8,362,473 680,181 147,900,819 7,190,069 3,523,844 884,819 8,634,351 46,969 241,346 20,521,398 1,471,067 (1,961,505) (490,438) 15,928,580 71,701 3,264 74,965 61,069 4,043,994 11,823,517 1,210,060 190,109 2,122 1,402,649 (994,493) 1,048,980 54,487 358 305 60,223 9,088 1,169 70,785 12,784 (13,682) (898) 2 659,684 15,072 38,428 713,186 (352,350) 354,283 1,933 812,231 9,332 16,731 838,294 (649,163) 650,684 1,521 15 20,984 292,838 282,731 2,129,609 12,823,589 4,713,679 5,276,669 75,092,252 17,616,708 14,545,997 14,546,883 596,568 146,745,386 83,613 (88) 83,525 1,155,433 81,936 1,237,369 1,512,273 1,512,273

44.2.1 Foreign exchange risk (continued)

The table below summarises the Groups exposure to currency risk at 31 December 2011:

ANNUAL REPORT 2011

As at 31 December 2011

Assets Cash and precious metals 2,920,570 Balances with the State Bank 1,388,927 Placements with and loans to other credit institutions (*) 3,488,797 Trading securities (*) 504,786 Derivatives and other financial assets Loans and advances to customers (*) 64,090,562 Investment securities (*) 24,344,301 Investment in other entities and long-term investments (*) 822,969 Fixed assets 3,670,144 Other assets (*) 6,955,143 Total assets 108,186,199

Liabilities and shareholders equity Due to Government and borrowings from the State Bank of Vietnam 2,129,609 Deposits and borrowings from other credit institutions 5,632,840 Funds received from Government, international and other institutions 1,189,835 Derivatives and other financial liabilities 1,628,668 Deposits from customers 65,880,393 Certificate of deposits 13,525,745 Other liabilities 2,139,953 Capital and reserves 14,546,883 Total liabilities and shareholders equity 106,637,926

Net on-balance sheet position Net off-balance sheet position Total position

(*): the above balances exclude provision.

151

ANNUAL REPORT 2011

44.2.1 Foreign exchange risk (continued) CURRENCY: Million VND VND USD GOLD EUR JPY AUD CAD Others Total

As at 31 December 2010

1,511,606 2,981,271 12,730,995 2,442,849 145,145 68,483,419 20,045,656 656,579 3,065,284 4,992,925 117,055,729 29,634 482,075 15,568,039 101,655 19,066,625 245 687,569 108,883 6,883 360,441 9,244 147,691 1,600,757 11,328,926 851,940 6,289,737 2,450,213 640,800 265,105 81,927 22,477 100,692 25,537 175,252 42,561 500,223 140,318 -

675,804 598,903

9,584,220 -

340,292 -

86,406 -

252,866 -

112,910 -

113,745 38,799

12,677,849 3,618,973 21,210,542 2,485,410 645,368 82,484,803 21,538,396

Assets Cash and precious metals Balances with the State Bank Placements with and loans to other credit institutions (*) Trading securities (*) Derivatives and other financial assets Loans and advances to customers (*) Investment securities (*) Investment in other entities and long-term investments (*) Fixed assets Other assets (*) Total assets

656,579 40,601 3,135,519 24,483 5,617,510 1,075,982 154,070,959

4,688,801 11,649,922 1,081,418 67,297,878 10,069,419 3,977,700 14,018,317 112,783,455 4,272,274 4,272,274 (3,391,212) 1,084,483 (2,306,729) 18,959,251 19,333,192 (266,567) (266,567) 1,152,459 75,930 10,685,398 108 3,377,877 33,500 1,120 18,507,609 790,963 232,193 2,260 234,564 453,005 (560,355) (107,350) 3,667,479 111

96,604 8,440 51 105,095 3,788 (24,685) (20,897)

275,242 12,649 24,394 312,285 48,156 (83,015) (34,859)

111,775 7,182 14,284 133,241 14,450 (28,979) (14,529)

92,114 45,236 90,556 259,576 -

4,688,801 15,409,626 2,233,877 638,287 78,335,416 28,577,136 8,447,105 14,018,317 487,482 152,348,565 588,500 (501,727) 86,773 1,722,394 (114,278) 1,608,116

Liabilities and shareholders equity Due to Government and borrowings from the State Bank of Vietnam Deposits and borrowings from other credit institutions Funds received from Government, international and other institutions Derivatives and other financial liabilities Deposits from customers Certificate of deposits Other liabilities

Capital and reserves Total liabilities and shareholders equity

Net on-balance sheet position Net off-balance sheet position Total position

ANNUAL REPORT 2011

(*): the above balances exclude provision.

152

152

ANNUAL REPORT 2011

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 44.2.2 Interest rate risk Cash flow interest rate risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate because of changes in market interest rates. The Group manages interest rate risks by monitoring the level of mismatch of interest rates by terms on a periodic basis.

153

ANNUAL REPORT 2011

44.2.2 Interest rate risk (continued)

The table below summaries the Groups exposure to interest rate risk. It includes the Groups financial instruments at carrying amounts, categorised by the earlier of contractual repricing or maturity dates: CURRENCY: Million VND

As at 31 December 2011 699,095 699,095 699,095 699,095 924,982 14,545,997 15,470,979 4,182,477 57,240,115 6,685,516 73,681,552 3,443,835 2,129,609 4,358,300 8,897,701 3,322,518 16,578,519 39,437,670 39,437,670 2,020,358 218,702 1,729,586 4,493,074 8,461,720 (509,677) (509,677) 3,000,247 31,250 1,151,399 3,107,544 7,290,440 (195,729) (195,729) 849 250,000 5,144,330 8,056 5,403,235 5,515,062 5,515,062 822,969 3,707,863 8,322,700 28,178,395 30,991,482 38,828 56,016,189 945 7,952,043 7,094,711 504,786 2,852 152,151 21,756,648 3,245,287 51,715,012 2,509,485 1,762,935 4,463,702 2,161,354 4,778,009 1,848,240 9,070,057 10,918,297 11,857,270 2,807,350 454 5,989,547 1,752,864 1,724,461 155,348 596,203 177,734 -

Overdue

Non-interest bearing

Up to 1 month

1-3 months

3-6 months

6-12 months

1-5 years Over 5 years

Total 11,857,270 2,807,350 9,622,674 504,786 2,852 80,539,487 24,396,425

Assets Cash and precious metals Balances with the State Bank Placements with and loans to other credit institutions (*) Trading securities (*) Derivatives and other financial assets Loans and advances to customers (*) Investment securities (*) Investment in other entities and long-term investments (*) Fixed assets Other assets (*) Total assets

822,969 3,707,863 8,364,473 773,937 142,624,149 2,129,609 12,823,589 31,250 4,713,679 4,139 75,092,252 - 17,616,708 - 14,545,997 35,389 126,921,834 738,548 738,548 15,702,315 15,702,315

Liabilities Due to Government and borrowings from the State Bank of Vietnam Deposits and borrowings from other credit institutions Funds received from Government, international and other institutions Deposits from customers Certificate of deposits Other liabilities Total liabilities 12,707,416 (42,690,070) 12,707,416 (42,690,070)

ANNUAL REPORT 2011

Interest gap of balance sheet items Interest gap of off balance sheet items Total interest gap

(*): The above balances exclude provision.

154

154

ANNUAL REPORT 2011

155
CURRENCY: Million VND Overdue Non-interest bearing Up to 1 month 1-3 months 3-6 months 6-12 months 1-5 years Over 5 years Total 474,419 474,419 3,135,519 5,617,510 24,054,259 40,942,572 55,560,581 10,258,855 8,250,929 13,573,716 1,430,078 7,082 529,642 656,579 17,525 26,091,248 1,003,970 49,111,699 1,712,915 350,000 3,433,207 2,571,765 687,807 1,540,049 3,662,966 1,694,700 11,879,016 12,677,849 3,618,973 10,210,856 4,735,967 3,903,612 2,360,107 139,481 178,122 12,677,849 3,618,973 21,210,542 2,485,410 7,082 82,484,803 21,538,396 656,579 3,135,519 5,617,510 317,603 153,432,663 474,419 474,419 14,804,472 (32,750,306) 14,804,472 (32,750,306) 802,682 8,447,105 9,249,787 1,827,627 50,490,430 10,511,938 73,692,878 6,303,163 4,593,625 20,680,654 8,379,244 33,659,480 21,901,101 21,901,101 2,727,273 31,250 3,043,681 1,953,218 7,763,647 2,494,937 2,494,937 1,255,115 31,250 2,458,037 7,069,659 10,832,109 (2,581,180) (2,581,180) 530,450 250,000 859,747 663,077 2,386,670 11,187,046 11,187,046 15,409,626 93,750 2,233,877 185 78,335,416 - 28,577,136 8,447,105 107,390 137,691,961 210,213 210,213 15,740,702 15,740,702 4,599,720 5,957 8,225 18,048 83,396 13,455 4,688,801

444.2.2

Interest rate risk (continued)

ANNUAL REPORT 2011

As at 31 December 2010

Assets Cash and precious metals Balances with the State Bank Placements with and loans to other credit institutions (*) Trading securities (*) Derivatives and other financial assets Loans and advances to customers (*) Investment securities (*) Investment in other entities and long-term investments (*) Fixed assets Other assets (*) Total assets

Liabilities Due to Government and borrowings from the State Bank of Vietnam Deposits and borrowings from other credit institutions Funds received from Government, international and other institutions Deposits from customers Certificate of deposits Other liabilities Total liabilities

Interest gap of balance sheet items Interest gap of off balance sheet items Total interest gap

(*): The above balances exclude provision.

155

ANNUAL REPORT 2011

44.2.3 Price risk The Group is exposed to equity securities price risk. The price risk relating to held for trading equity securities is managed through the analysis of the market movement and investment decision is made based on the purpose of gaining profit in short term. Investments on available for sale equity investments are made based on business purpose of the Group taking into account of diversification in the investment portfolio. 44.3 Liquidity risk Liquidity risk is the risk that the Group is unable to meet its payment obligations associated with its financial liabilities when they fall due and to replace funds when they are withdrawn. The consequence may be the failure to meet obligations to repay depositors and fulfil commitments to lend. The Groups treasury department is responsible for the liquidity management which is supervised by the Asset and Liability Committee (ALCO). The main management processes include:
n

Monitor the day-to-day mobilisation and lending activities; Maintain a portfolio of securities that can be easily converted into cash; and Monitor the balance sheet liquidity ratios against the regulatory requirements of the SBV.

ANNUAL REPORT 2011

156

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

44. FINANCIAL RISK MANAGEMENT (CONTINUED) 44.3 Liquidity risk (continued)

44.3.1 On-balance sheet items The table below analysed the Groups assets and liabilities into relevant maturity grouping based on the remaining period at the balance sheet date to the contractual maturity date. CURRENCY: Million VND

As at 31 December 2011

Overdue Over 3 Up to 3 months months Up to 1 month 1-3 months 1-5 years

Current 3-12 months

Over 5 years

Total

Assets Cash and precious metals Balances with the State Bank Placements with and loans to other credit institutions (*) Trading securities (*) Derivatives and other financial assets Loans and advances to customers (*) Investment securities (*) Investment in other entities and long-term investments (*) Fixed assets Other assets (*) Total assets 361,246 763 362,009 337,849 337,849 11,857,270 2,807,350 5,990,001 504,786 2,852 6,123,655 12,291,438 2,282 3,665,461 43,245,095 1,752,864 16,021,883 1,670,000 1,700 739,420 20,185,867 1,879,809 28,719,198 7,749,987 28,150 3,108,779 41,485,923

16,900,524 2,685,000 780,427 848,050 21,214,001

- 11,857,270 2,807,350 9,622,674 504,786 2,852 12,075,132 80,539,487 - 24,396,425 822,969 822,969 2,895,304 3,707,863 8,362,473 15,793,405 142,624,149

Liabilities Due to Government and borrowings from the State Bank of Vietnam Deposits and borrowings from other credit institutions 763 763 361,246

2,129,609 3,443,835 3,979 - 58,025,111 6,685,516 - 12,868,719 - 83,156,769 337,849 (39,911,674)

4,358,300 86,097 8,905,817 3,322,518 1,424,071 18,096,803 2,089,064

5,020,605 498,278 2,893,056 7,600,618 53,650 16,066,207 25,419,716

849 1,831,941 5,261,124 8,056 198,794 7,300,764 13,913,237

2,129,609 12,823,589 2,293,384 4,713,679 7,144 75,092,252 - 17,616,708 - 14,545,997 2,300,528 126,921,834 13,492,877 15,702,315

Funds received from Government, international and other institutions Deposits from customers Certificate of deposits Other liabilities Total liabilities Net liquidity gap

(*): the above balances exclude provision.

157

ANNUAL REPORT 2011

44.3.1 On-balance sheet items CURRENCY: Million VND

As at 31 December 2010

Overdue Over 3 Up to 3 months months Up to 1 month Total 1-3 months 1-5 years Over 5 years

Current 3-12 months

Assets Cash and precious metals Balances with the State Bank Placements with and loans to other credit institutions (*) Trading securities (*) Derivatives and other financial assets Loans and advances to customers (*) Investment securities (*) Investment in other entities and long-term investments (*) Fixed assets Other assets Total assets 444,520 444,520 29,899 6,307 377,117 46,654,287 12,864 797,342 24,557,953 60,566 2,021,626 40,962,705 34,400 918,042 1,142,318 24,114,024 29,899 12,677,849 3,618,973 10,212,402 1,447,603 7,082 9,236,725 9,070,229 4,735,967 17,308,860 1,702,920 6,262,173 738,372 26,027,709 5,852,259 299,435 16,806,841 4,912,988 12,630,249 -

12,677,849 3,618,973 21,210,542 2,485,410 7,082 82,484,803 21,538,396 622,179 656,579 2,137,740 3,135,519 1,279,107 5,617,510 16,669,275 153,432,663

444,520 4,559,720 6,303,145 5,958 4,593,625 26,272 4,290,406 239,926 5,512,143 7,559,872 880,202 18,508,821 22,453,884 83,396 222,450 1,501,562 948,640 2,563,077 67,912 5,387,037 18,726,987 13,455 4,688,801 15,409,626 296,031 2,233,877 185 78,335,416 - 28,577,136 8,447,105 309,671 137,691,961 16,359,604 15,740,702 131,173 65,185 - 51,180,848 20,693,600 - 10,295,942 8,158,245 4,857,078 2,641,913 - 77,327,906 36,158,526 29,899 (30,673,619) (11,600,573)

Liabilities Due to Government and borrowings from the State Bank of Vietnam Deposits and borrowings from other credit institutions Funds received from Government, international and other institutions Deposits from customers Certificate of deposits Other liabilities Total liabilities Net liquidity gap

(*): the above balances exclude provision.

158

ANNUAL REPORT 2011

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2011 Form B 05/TCTD - HN 44.3.2 Other off-balance sheet items Commitments on operating leases and capital commitments (Note 39) are analysed as follows: Unit: Million VND As at 31 December 2011 Commitments on operating leases Capital commitments 37,834 364,148 401,982 As at 31 December 2010 Commitments on operating leases Capital commitments 34,049 495,554 529,603 175,423 175,423 1,209,037 1,209,037 1,418,509 495,554 1,914,063 194,922 194,922 1,290,356 1,290,356 1,523,112 364,148 1,887,260 Less than 1 year 1-5 years Above 5 years Total

159

ANNUAL REPORT 2011

45

FAIR VALUE MEASUREMENT The consolidated financial statements have been prepared using the historical cost convention and in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System and regulations applicable to banks and other credit institutions operating in SR Vietnam. As there has not been a detailed implementation guidance on fair value measurement issued by regulatory bodies, no fair value has been available for disclosure in the consolidated financial statements.

46

COMPARATIVE FIGURES Certain comparative figures have been reclassified to conform to the current years presentation.

47

EVENTS AFTER THE BALANCE SHEET DATE At 3 January 2012, Saigon Thuong Tin Jewelry Company, a subsidiary of the Bank sold 100% of its investment in Sai Gon Thuong Tin Business Technology Company Limited (STB Tech) to a third party at cost. The consolidated financial statements are approved by the Board of Management on 9 March 2012.

Luu Van Hoa Preparer

Nguyen Thi My Hanh Chief Accountant

Tran Xuan Huy Chief Executive Officer 9 March 2012

ANNUAL REPORT 2011

160

DIStRIBUtIon nEtWoRK
HEAD OFFICE 266-268 Nam Ky Khoi Nghia Ward 8, District 3, HCM city Tel: (08).3.9.322.670 Fax: (08).3.9.320.425 TRANSACTION DEPARTMENT HCMC 1. Tran Huy Lieu Transaction Office 62 Tran Huy Lieu Ward 12, Phu Nhuan District, HCM city Tel: (08).3.9.318.816 Fax: (08).3.9.318.817 2. Nam Ky Khoi Nghia Transaction Office 278 Nam Ky Khoi Nghia Ward 8, District 3, HCM city Tel: (08).3.9.322.585 Fax: (08).3.9.322.584 3. Bach Dang Transaction Office 121-123 Ground Floor Bach Dang Ward 2, Tan Binh District, HCM city Tel: (08).3.9.325.861 Fax: (08).3.9.325.862 4. Phan Xich Long Transaction Office 159 Phan Xich Long Ward 7, Phu Nhuan District, HCM city Tel: (08).3.5.178.887 Fax: (08).3.5.178.886 5. Cach Mang Thang 8 Transaction Office 236-238 Cach Mang Thang 8 Ward 10, District 3, HCM city Tel: (08).3.5.264.361 Fax: (08).3.5.264.363 6. Pho Quang Transaction Office 3G Pho Quang Ward 2, Tan Binh District, HCM city Tel: (08).3.9.979.887 Fax: (08).3.9.979.883 HANOI REGION 1. Thu Do Branch 88 Ly Thuong Kiet Cua Nam, Hoan Kiem, Ha Noi Tel: (04) 3.9.428.095 Fax: (04)3.9.428.085 1. Hang Bac Transaction Office 87 Hang Bac Hang Bac, Hoan Kiem, Ha Noi Tel :(04).3.9.263.467(4574) Fax:(04).3.9.261.392 2. ong Xuan Transaction Office 12 Tran Nhat Duat ong Xuan, Hoan Kiem, Ha Noi Tel:(04).3.9.290.135 Fax: (04).3.9.283.725 3. Hoan Kiem Transaction Office 16E Duong Thanh Hoan Kiem, Ha Noi Tel:(04).3.9.232.140 Fax: (04).3.9.230.822 4. Thuy Khue Transaction Office 153AThuy Khue Thuy Khue, Tay Ho, Ha Noi Tel:(04).3.7.281.466 Fax: (04).3.7.281.467 5. Ly Nam De Transaction Office 10A3 Ly Nam De Hang Ma, Hoan Kiem, Ha Noi Tel:(04).3.7.478.418 Fax: (04).3.7.478.419 6. Phan Dinh Phung Transaction Office 25A Phan Dinh Phung Ba Dinh, Ha Noi Tel:(04).3.8.489.971(72) Fax:(04).3.8.489.970 2. 8 thang 3 Branch 193 Ba Trieu Ward Le Dai Hanh Hai Ba Trung, Ha Noi Tel:(04).3.9.743.833 Fax: (04).3.9.743.823 1. Dao Tan Transaction Office 60 Dao Tan Ward Cong Vi, Ba Dinh, Ha Noi Tel: (04).3.2.115.599 Fax:(04).3.2.115.690 3. Ha Noi Branch 65 Ngo Thi Nham Hai Ba Trung, Ha Noi Tel:(04).3.9.437.372 Fax: (04).3.9.432.988 1. Cho Mo Transaction Office 442 Bach Mai Truong Dinh, Hai Ba Trung, Ha Noi Tel:(04).6.2.781.707 Fax: (04).6.2.781.700 2. Dinh Cong Transaction Office 12D18 Dinh Cong New Town Dinh Cong, Hoang Mai, Ha Noi Tel:(04).3.6.404.061 Fax: (04).3.6.404.062 3. Bach Khoa Transaction Office 10 Ta Quang Buu Bach Khoa, Hai Ba Trung, Ha Noi Tel:(04).6.2.781.536 Fax: (04).6.2.781.545 4. Linh Nam Transaction Office 183 Linh Nam Vinh Hung, Hoang Mai, Ha Noi Tel:(04).3.6.462.335(36) Fax:(04).3.6.462.337 5. Ha Thanh Transaction Office 25-27 Cua Bac Ba Dinh, Ha Noi Tel:(04).3.9.275.415 Fax: (04).3.9.275.416 6. Kim Nguu Transaction Office 286 Kim Nguu Hai Ba Trung, Ha Noi Tel:(04).3.6.320.491(492) Fax:(04).3.6.320.490 4. Dong Da Branch 360 Tay Son Dong Da, Ha Noi Tel:(04).3.5.640.455 Fax:(04).3.5.640.456 1. Ha Tay Transaction Office 737 Quang Trung Quang Trung, Ha Dong, Ha Tay Tel:(0343).824.047 Fax: (0343).824.047 2. Kim Lien Transaction Office 222 Xa Dan Phuong Lien, Dong Da, Ha Noi Tel:(04).3.5.720.569 Fax:(04).3.5.720.570 3. Khuong Mai Transaction Office 112 Nguyen Ngoc Nai Khuong Mai, Thanh Xuan Ha Noi Tel:(04).3.5.666.920 Fax:(04).3.5.666.921 4. Hao Nam Transaction Office 100 Hao Nam O Cho Dua, Dong Da, Ha Noi Tel:(04).6.2.756.866(6565) Fax:(04).6.2.752.753 5. Van Quan Transaction Office 139A Chien Thang Tan Trieu, Thanh Tri, Ha Noi Tel:(04).3.5.527.688 Fax:(04).3.5.527.528 5. Long Bien Branch 484 Nguyen Van Cu Gia Thuy, Long Bien, Ha Noi Tel:(04).3.6.522.055 Fax: (04).3.6.522.066 1. Yen Vien Transaction Office 455 Ha Tuy Tap Yen Vien, Gia Lam, Ha Noi Tel:(04).3.6.982.936 Fax:(04).3.6.982.936 2. Trau Quy Transaction Office 74A&74B To Voi Phuc Trau Quy Town, Gia Lam, Ha Noi Tel:(04).3.6.763.070 Fax:(04).3.6.763.071 3. Ngo Gia Tu Transaction Office 711 Ngo Gia Tu Ward Duc Giang, Long Bien, Ha Noi Tel:(04)3.6.522.055 Fax: (04).3.6.522.066

161

ANNUAL REPORT 2011

4. Dong Anh Transaction Office 55 Group 4 Dong Anh Town Dong Anh , Ha Noi Tel:(04).3.9.655.922 Fax:(04).3.9.655.925 6. Thanh Tri Branch 337 Ngoc Hoi Van Dien Town, Thanh Tri, Ha Noi Tel:(04).3.6.814.855 Fax:(04).3.6.814.856 1. Thuong Tin Transaction Office Pho Ga, Thuong Tin Town Thuong Tin, Ha Tay Tel:(0343).765.536 Fax: (0343).765.534 2. Truong Dinh Transaction Office 701 Truong Dinh Ward Thinh Liet, Hoang Mai District Ha Noi Tel:(04).3.6.421.661 Fax:(04).3.6.421.660 3. Dong Tam Transaction Office 168 Pho Vong Ward Phuong Liet Thanh Xun District ,Ha Noi Tel:(04).3.6.285.422 (23, 24) Fax:(04).3.6.285.421 7. Thang Long Branch 60A Nguyen Chi Thanh Lang Thuong, Dong Da, Ha Noi Tel:(04).3.7.756.707 Fax: (04).3.7.756.708 1. Doi Can Transaction Office 149G Doi Can Ba Dinh, Ha Noi Tel:(04).3.7.227.361 Fax:(04).3.7.227.362 2. Hoang Cau Transaction Office 163 Dang Tien Dong Trung Liet, Dong Da, Ha Noi Tel:(04).3.5.379.96 Fax:(04).3.5.379.960 3. Tran Duy Hung Transaction Office 82 Tran Duy Hung Trung Hoa, Cau Giay, Ha Noi Tel:(04).3.7.834.176 Fax:(04).3.7.834.175 4. Doc Ngu Transaction Office 147 Doc Ngu Ba Dinh, Ha Noi Tel:(04).3.2.321.790 (792) Fax:(04).3.2.321.791 8. Dong Do Branch 363 Hoang Quoc Viet Ward Nghia Tan, Cau Giay, Ha Noi Tel:(04).3.7.915.299 Fax: (04).3. 7.915.289 1. Quan Hoa Transaction Office 243A Cau Giay Quan Hoa, Cau Giay, Ha Noi Tel:(04).3.7.910.950 Fax: (04).3.7.678.324

2. Tay Ho Transaction Office 258 Lac Long Quan Ward.Buoi, Tay Ho, Ha Noi Tel:(04)3.7.590.099 Fax: (04)3.7.591.586 3. Le Duc Tho Transaction Office A1-1, A2-2 Le Duc Tho H. Tu Liem, Ha Noi Tel:(04).3.7.951.711 Fax:(04).3.7.951.712 4. Nguyen Phong Sac Transaction Office 1st Floor - Lot A/D6 Nguyen Phong Sac (extension) - Cau Giay Newtown Dich Vong, Cau Giay, Ha Noi Tel:(04).3.7.678.228 Fax:(04).3.7.678.229 NORTHERN 1 Hung Yen Branch Km22 + 500 National Highway 5A Ban Yen Nhan Town My Hao, Hung Yen Tel:(0321).3.942.905 Fax:(0321).3.942.387 1. Pho Hien Transaction Office 279 Dien Bien Hung Yen, Hung Yen Tel:(0321).3.866.770 Fax: (0321).3.866.769 2. Bo Thoi Transaction Office Thi tu Bo Thoi Hong Tien, Khoai Chau, Hung Yen Tel:(0321).3.920.690 Fax:(0321).3.920.689 3. Yen My Transaction Office 22 Yen My Town Yen My, Hung Yen Tel:(0321).3.962.979 Fax:(0321).3.962.978 4. Van Lam Transaction Office Thon Ngoc Quynh Nhu Quynh Town, Van Lam, Hung Yen Tel:(0321).3.785.614 Fax:(0321).3.785.613 5. Van Giang Transaction Office 219 pho Van Giang Van Giang Town, Vn Giang, Hung Yen Tel:(0321).3.933.505(506) Fax:(0321).3.933.508 2. Bac Ninh Branch 122 Tran Phu Dong Ngan, Tu Son, Bac Ninh Tel:(0241).3.743.965 Fax:(0241).3.760.352

1. Tien Du Transaction Office 140-142 Ly Thuong Kiet Lim Town, Tien Du, Bac Ninh Tel:(0241).3.710.711 Fax: (0241).3.710.711 2. Nguyen Gia Thieu Transaction Office 113 Nguyen Gia Thieu Ward Suoi Hoa, Bc Ninh City Tel:(0241).3.811.622 Fax: (0241).3.811.622 3. Que Vo Transaction Office 100 Area 1 Pho Moi Town, Que Vo, Bac Ninh Tel:(0241).3.635.853(852) Fax:(0241).3.635.854 4. Thuan Thanh Transaction Office 89-91 Pho Ho Ho Town, Thuan Thanh, Bac Ninh Tel:(0241).3.775.886 Fax:(0241).3.775.339 3. Thanh Hoa Branch 126-128-130 Nguyen Trai Ba Dinh, Thanh Hoa City, Thanh Hoa Tel:(0373).888.898 Fax:(0373).718.789 1. Phan Chu Trinh Transaction Office 753 Ba Trieu Truong Thi, Thanh Hoa City Tel:(0373).757.661/62 Fax:(0373).757.675 2. Bim Son Transaction Office 73 Area 2 Ward Ngoc Trao, Bim Son, Thanh Hoa Tel:(0373).771.884/86 Fax:(0373).771.887 3. Lam Son Transaction Office Area 6 Lam Son Town, Tho Xuan, Thanh Hoa Tel:(037).3.535.588 Fax:(037).3.535.578 4. Tinh Gia Transaction Office 232 Area 3 Tinh Gia Town, Tinh Gia, Thanh Hoa Tel:(037).8.727.899 Fax:(037).8.727.897 4. Lang Son Branch 8 Ngo Quyen Vinh Trai, Lang Son, Lang Son Tel:(025).3.716.324 Fax:(025).3.716.325 1. Tan Thanh Transaction Office Kiot 86-88-90 Cua Khau Tan Thanh Lang Son, Lang Son Tel:(025).3.888.579 Fax:(025).3.888.581 5. Hai Duong Branch 30 Tran Hung Dao Tran Hung Dao, Hai Duong city Hai Duong Tel:(0320).3.833.208 Fax:(0320).3.833.209

ANNUAL REPORT 2011

162

1. Sao Do Transaction Office 119 Nguyen Trai 1 Sao Do Town, Chi Linh, Hai Duong Tel: (0320).3.589.347 Fax: (0320).3.589.348 2. Phu Thai Transaction Office Pho Ga Phu Thai Town, Kim Thanh, Hai Duong Tel: (0320).3.726.388 Fax: (0320).3.726.389 3. Ke Sat Transaction Office 158 nga 5 Area Trang Liet, Binh Giang, Hai Duong Tel :(0320).3.773.371 Fax: (0320).3.773.372 4. Thong Nhat Transaction Office 31 Thong Nhat Le Thanh Nghi, Hai Duong Hai Duong Tel:(0320).3.848.318 Fax: (0320).3.848.319 5. Nguyen Luong Bang Transaction Office Km1 Nguyen Luong Bang Ward Pham Ngu Lao, Hai Duong City Hai Duong Tel:(0320).3.898.857 Fax:(0320).3.898.858 6. Hoang Thach Transaction Office Minh Tan New Town Minh Tan Town, Kinh Mon, Hai Duong Tel:(0320).3.522.969 Fax:(0320).3.522.970 6. Hai Phong Branch 62-64 Ton Duc Thang Tran Nguyen Han , Le Chan, Hai Phong Tel:(0313).719.999 Fax: (0313).719.991 1. Tam Bac Transaction Office 102A Quang Trung Phan Boi Chau, Hong Bang, Hai Phong Tel:(0313).521.058 Fax: (0313).521.059 2. Van Cao Transaction Office 197 Van Cao Ward Dang Giang, Ngo Quyen District, Hai Phong Tel:(0313).734.016 Fax: (0313).734.017 3. Lac Vien Transaction Office 176 Da Nang Ward Lac Vien, Ngo Quyen District, Hai Phong Tel:(031).3.719.956(955) Fax: (031).3.719.957 4. Hoa Phuong Transaction Office 119 - 121 Dinh Tien Hoang Ward Hoang Van Thu Hong Bang District, Hai Phong Tel:(031).3.569.113(345) Fax:(031).3.569.115

5. Thuy Nguyen Transaction Office 151 Bach Dang Nui Deo Town, Thuy Nguyen, Hai Phong Tel:(0313).916.755 (756, 766,786) Fax: 0313 916 775 7. Quang Ninh Branch 607 Le Thanh Tong Ha Long City, Quang Ninh Tel:(033).3.696.789 Fax: (033).3.696.966 1. Mong Cai Transaction Office 01 Tran Phu Mong Cai, Mong Cai City, Quang Ninh Tel:(033).6.258.688 Fax:(033).6.258.226 2. Cam Pha Transaction Office 566 Tran Phu Ward Cam Thuy, Cam Pha, Quang Ninh Tel:(033).3.868.682 Fax: (033).3.868.648 8.Thai Nguyen Branch 66 Hoang Van Thu Ward Hoang Van Thu, Thai Nguyen City Thai Nguyen Tel:(0280).3.853.155 Fax: 0280.3.853.266 9. Phu Tho Branch 1482 Hung Vuong Ward Gia Cam, Viet Tri City, Phu Tho Tel:(0210).3.666.555; (0210).3.666.868 Fax: (0210).3.868.333; (0210).3.666.686 10. Ha Nam Branch Group 1 Le Hoan Minh Khai, Phu Ly, Ha Nam Tel:(0351).3.566.666; (0351).3.828.878 Fax:(0351).3.662.222; (0351)3.828.979 NORTHERN CENTRAL 1. Nghe An Branch 72 Le Loi Ward Hung Binh, Vinh City, Nghe An Tel:(038).8.600.777(667) Fax:(038).8.600.677 1. Dien Chau Transaction Office Group 4 Dien Chau Town, Dien Chau, Nghe An Tel:(038).3.605.777(678) Fax:(038).3.600.999 2. Hung Binh Transaction Office 85 Le Hong Phong Vinh City, Nghe An Tel:(038).8.696.688(777) Fax:(038).8.696.678 3. Quan Banh Transaction Office 350 Nguyen Trai Vinh City, Nghe An Tel:(038).8.652.777 Fax:(038).8.652.999

2. Quang Binh Branch 5 Quang Trung Hai Dinh, Dong Hoi, Quang Binh Tel:(052).3.846.846, 052.625 5255 Fax:(052).3.844.944 (66,77) 1. Bi Trach Transaction Office 1 A National Highway TK 2, Hoan Lao, Bo Trach, Quang Binh Tel:(052).3.612.444 Fax: (052).3.612.555 2. Dong Hoi Transaction Office 252 Tran Hung Dao Nam Ly, Dong Hoi, Quang Binh Tel:(052).3.847.847, (052).3.855 666 Fax:(052).3.855 444 3.Ba Don Transaction Office Area 1 Ba Don Town, Quang Trach Quang Binh Tel:(052).3.516.516, (052).3.517 517 Fax:(052).3.516 567 4.Bac Ly Transaction Office Ward Bac Ly Dong Hoi City, Quang Binh Tel:(052).3.853.853, 3.853.888 Fax:(052).3.853.999 5.Dong Son Transaction Office 81 Ly Thai To Ward Bac Nghia, Dong Hoi City Quang Binh Tel:(052).3.834.834 Fax:(052).3.834.837 3. Quang Tri Branch 43 Tran Hung Dao Ward 1, Dong Ha, Quang Tri Tel:(053).3.555.889 Fax:(053).3.555.890 1.Vinh Linh Transaction Office Huu Nghi sub ward Ho Xa Town, Vinh Linh, Quang Tri Tel:(053).3.614.888 Fax:(053).3.622.261 2. Trieu Hai Transaction Office 220 Tran Hung Dao Ward 2 Quang Tri, Quang Tri Tel:(053).3.664.458 Fax: (053).3.664.457 3.Dong Ha Transaction Office 86 Le Duan Ward 1, Dong Ha, Quang Tri Tel:(053).3.553.800 Fax:(053).3.553.801 4.Huong Hoa Transaction Office Sub ward 1 Khe Sanh Town, Huong Hoa, Quang Tri Tel:(053).3.781.940 Fax: (053).3.781.941 5.Lao Bao Transaction Office Sub ward Tay Chinh Lao Bao Town, Huong Hoa, Quang Tri Tel:(053).3.778.888(889) Fax:(053).3.778.887

163

ANNUAL REPORT 2011

4. Thua Thien Hue Branch 126 Nguyen Hue Phu Nhuan, Hue, Thua Thien Hue Tel:(054).3.834.979 Fax:(054).3.834.980 1. An Cuu Transaction Office 144 Hung Vuong Phu Nhuan, Hue, Thua Thien Hue Tel:(054).3.814.181 Fax:(054).3.814.243 2. Phu Bai Transaction Office Area 4 Phu Bai Town, Huong Thuy Thua Thien Hue Tel:(054).3 8.51.032 Fax: (054).3.851.033 3. Tay Loc Transaction Office 172 Nguyen Trai Tay Loc, Hue, Thua Thien Hue Tel:(054).3.539.366 Fax:(054).3.539.365 4. Phu Xuan Transaction Office 49 Tran Hung Dao Phu Hoa, Hue, Thua Thien Hue Tel:(054).3.513.865 Fax:(054).3.513.850 5. Huong Tra Transaction Office Area 9 Tu Ha Town, Huong Tra Thua Thien Hue Tel:(054).3.758.686 Fax: (054).3.758.689 6. Phu Hoi Transaction Office 02 Ben Nghe Ward Phu Hoi, Hue City Thua Thien Hue Tel:(054).3.839.002(003) Fax:(054).3.839.004 7. Mai Thuc Loan Transaction Office 43 Mai Thuc Loan Ward Thuan Thanh, Hue City Thua Thien Hue Tel:(054).3.599.399(398) Fax:(054).3.599.397 5. Da Nang Branch 130-130A-132 Bach Dang Hai Chau, Da Nang Tel:(0511).3.582.612 Fax: (0511).3.582.613 1. Cho Con Transaction Office 225 Ong Ich Khiem Group 58 Cau Vong, Hai Chau, Da Nang Tel:(0511).3.866.368 Fax:(0511).3.866.369 2. Thanh Khe Transaction Office 568 Dien Bien Phu Thanh Khe Dong, Thanh Khe, Da Nang Tel:(0511).3.725.542 Fax:(0511).3.725.543

3. Son Tra Transaction Office 783 Ngo Quyen An Hai Bac, Son Tra, Da Nang Tel:(0511).3.260.099 Fax:(0511).3.260.010 4. Cam Le Transaction Office 179 Ong Ich Duong Khue Trung, Cam Le, Da Nang Tel:(0511).3.247.000 Fax:(0511).3.696.700 5. Hoang Anh Plaza Transaction Office 1 Nguyen Van Linh Nam Duong, Hai Chau , Da Nang Tel:(0511).3.254.767 Fax:(511).3.254.768 6. Hoang Dieu Transaction Office 202 Hoang Dieu Nam Dng, Hai Chau, Da Nang Tel:(0511).3.573.665 Fax:(0511).3.251.661 7. Lien Chieu Transaction Office 695 Ton Duc Thang Ward Hoa Khanh, Lien Chieu District Da Nang Tel:(0511).3.739.125(126) Fax:(0511).3.739.124 6. Quang Nam Branch Lot 8 trade center Tam Ky City, Quang Nam Tel:(0510).3.821.821 Fax:(0510).3.821.820 1. Nam Phuoc Transaction Office 37 Group 2, Area 2 Long Xuyen, Nam Phuoc, Duy Xuyen, Quang Nam Tel:(0510).3.777.123 Fax:(0510).3.777.125 2. Tam Ky Transaction Office 568 Phan Chu Trinh Tam Ky, Quang Nam Tel:(0510).3.835.366 Fax:(0510).3.835.355 3.Hoi An Transaction Office 91 Tran Hung Dao Hoi An, Quang Nam Tel:(0510).3.911.031 Fax:(0510).3.911.266 4. Chu Lai Transaction Office Area 2 Nui Thanh Town, Nui Thanh Quang Nam Tel:(0510).3.571.766 Fax: (0510).3.571.755 5. Dai Loc Transaction Office Area 7 Ai Nghia Town, Dai Loc, Quang Nam Tel:(0510).3.747.476(475) Fax:(0510).3.747.478

7. Quang Ngai Branch 449 Quang Trung Quang Ngai, Quang Ngai City Quang Ngai Tel:(055).3.715.555 Fax: (055).3.715.557 1. Hung Vuong Transaction Office 361 Hung Vuong Tran Phu, Quang Ngai city, Quang Ngai Tel:(055).3.716.557(58,59) Fax:(055).3.716.555 2. Binh Son Transaction Office Area 2, 1A National Highway Chau O Town, Binh Son, Quang Ngai Tel:(055).3.523.434(35,36) Fax:(055).3.523.437 SOUTH & CENTRAL HIGHLAND 1. Binh Dinh Branch 98 Mai Xuan Thuong Ly Thuong Kiet, Quy Nhn, Binh Dinh Tel:(056).3.817.493 Fax:(056).3.817.312 1. Dap Da Transaction Office Area Bang Chau Dap Da, An Nhn, Binh Dinh Tel:(056).3.639.702 Fax:(056).3.639.704 2. Le Loi Transaction Office 97 Le Loi Ward Tran Hung Dao, Quy Nhn Binh Dinh Tel:(056).3.817.177 Fax:(056).3 817.176 3. Bong Son Transaction Office 243 Quang Trung Bong Son Town, Hoai Nhon Binh Dinh Tel:(056).3.961.370 Fax:(056).3.961.373 4. Tay Son Transaction Office 311 Quang Trung Phu Phong, Tay Son Binh Dinh Tel:(056).3.580.939 Fax:(056).3.580.940 5. Tam Quan Transaction Office 288 1A National Highway Tam Quan Town, Hoai Nhon Binh Dinh Tel:(056).3.860.180 Fax:(056).3.860.182 6. Nguyen Thai Hoc Transaction Office 265 Nguyen Thai Hoc Ward Ngo May, Quy Nhon City Binh Dinh Tel:(056).3.521.645(646) Fax:(056).3.521.647 2. Phu Yen Branch 97 Nguyen Trai Ward 4, Tuy Hoa, Phu Yen Tel:(057).3.893.341 Fax:(057).3.893.342

ANNUAL REPORT 2011

164

1. Nam Tuy Hoa Transaction Office 374 Nguyen Van Linh Phu Lam, Tuy Hoa, Phu Yen Tel:(057).3.851.851 Fax:(057).3.851.850 2. Song Cau Transaction Office Tran Hung Dao Song Cau Town, Song Cau , Phu Yen Tel:(057).3.728.788 Fax:(057).3.728.789 3. Nguyen Hue Transaction Office 291 Nguyen Hue Ward 5, Tuy Hoa City, Phu Yen Tel:(057).3.810.850(868) Fax:(057).3.810.870 3. Khanh Hoa Branch 54A Yersin Phuong Sai, Nha Trang, Khanh Hoa Tel:(058).3.817.594 Fax:(058).3.817.698 1. Ninh Hoa Transaction Office 290 Tran Quy Cap Ninh Hoa, Khanh Hoa Tel:(058).3.630.864 Fax:(058).3.630.863 2. Nha Trang Transaction Office 65 Nguyen Trai Phuoc Tien, Nha Trang, Khanh Hoa Tel:(058).3.515.495 Fax:(058).3.515.708 3. Le Hong Phong Transaction Office 193 Le Hong Phong Phuoc Hoa, Nha Trang, Khanh Hoa Tel:(058).3.889.192 Fax:(058).3.889.194 4. Cam Ranh Transaction Office 134-136, 1 National Highway Ward Ba Ngoi, Cam Ranh, Khanh Hoa Tel:(058).3.954.300 Fax:(058).3.954.302 5. Van Ninh Transaction Office 128 Hung Vuong Van Gia Town, Van Ninh, Khanh Hoa Tel:(058).3.913.264/65 Fax:(058).3.913.266 6. Cam Lam Transaction Office 1A National Highway, Nghia Dong Group Cam Duc Town, Cam Lam, Khanh Hoa Tel:(058).3.983.788(789) Fax:(058).3.983.786 7. QTK Thang Loi Transaction Office 04 Pasteur Ward Thang Loi, Nha Trang City Khanh Hoa Tel:(058).3.813.888(887) Fax:(058).3.813.886 4. Ninh Thuan Branch 757 Thong Nhat Ward Kinh Dinh, Phan Rang City - Thap Cham Ninh Thuan Tel:(068).3.832.300 Fax:(068).3.832.301

1. Phan Rang - Thap Cham Transaction Office 336 Thong Nhat Ward Phu Ha, Phan Rang City Thp Chm, Ninh Thun Tel:(068).3.827 334 Fax:(068).3.827 335 5. Gia Lai Branch 38 Nguyen Thien Thuat Dien Hong, Pleiku City, Gia Lai Tel:(059).3.720.074 Fax:(059).3.720.073 1. An Khe Transaction Office 02 Hoang Van Thu Tay Son, An Khe, Gia Lai Tel:(059).3.832.268(929, 930, 939) Fax:(059).3.832.535 2. Chu Se Transaction Office 748 Hung Vuong Chu Se Town, Chu Se, Gia Lai Tel:(059).6.258.006/007 Fax: (059).6.258.009 6. Kon Tum Branch 73A Phan Dinh Phung Ward Quang Trung, KonTum City KonTum Tel:(060).3.913.457 Fax: (060).3.913.458 1. Dak Ha Transaction Office 297 Hung Vuong Dak Ha, KonTum Tel:(060).3.826.789 Fax:(060).3.826.788 2. Ngoc Hoi Transaction Office 77 Hung Vuong Pleikan Town, Ngoc Hoi, KonTum Tel:(060).3.832.836 Fax:(060).3.832.837 7. Dak Lak Branch 130-132 Le Hong Phong Thong Nhat, Buon Me Thuot City, Dak Lak Tel:(0500).3.861.105 Fax:(0500).3.861.104 1. Eakar Transaction Office 3B TT Eakar Eakar, Dak Lak Tel:(0500).3.626.960 Fax:(0500).3.626 961 2. Buon Me Thuot Transaction Office 362-364 Le Duan Buon Me Thuot City, Dak Lak Tel:(0500).3 861.102 (108) Fax:(0500).3.861.101 3. Buon Ho 207 Hung Vuong Buon Ho Town, KrongBuk, Dak Lak Tel:(0500).3.571.458/59 Fax: (0500).3.571.457 4. EaH'leo Transaction Office 565 Giai Phong Eadrng Town, EaH'leo, Dak Lak Tel:(0500).3.776.670(672, 673) Fax:(0500).3. 776.671

8. Dak Nong Branch Lot D1 Tam Thang Industrial Park Tam Thang, Cu Jut, Dak Nong Tel:(0501).3.683.798 Fax:(0501).3.683.632 1. Dak Mil Transaction Office 61 Nguyen Tat Thanh Dak Mil Town, Dak Mil, Dak Nong Tel:(0501).3.751.898 Fax:(0501).3.751.897 2. Kien Duc Transaction Office 40 Nguyen Tat Thanh Kien Duc Town, Dak R'lap, Dak Nong Tel:(0501).3.702.456 Fax:(0501).3.647.961 9. Lam Dong Branch 5 Hai Ba Trung Ward 6, Da Lat, Lam Dong Tel:(063).3.549.045 Fax:(063).3.549.047 1. Bao Loc Transaction Office 43 Le Thi Pha Bao Loc, Lam Dong Tel:(063).3.711.253 (54) Fax:(063).3.711.256 2. Duc Trong Transaction Office 713, 20 National Highway Lien Nghia Town, Duc Trong, Lam Dong Tel:(063).3.649.161 Fax:(063).3 649.162 3. Quang Trung Transaction Office A1 - Suong Mai Restaurant Area Quang Trung Ward 9, Da Lat, Lam Dong Tel:(063).3.826.600 Fax:(063).3.826.600 4. Lam Ha Transaction Office 51 Bo Lieng TT Dinh Van, Lam Ha, Lam Dong Tel:(063).3.686.662 Fax:(063).3.686.663 5. Da Lat Transaction Office 32 - Hoa Binh Area 3-5 3 thang 2 street Ward 1, Da Lat, Lam Dong Tel:(063).3.511.082 Fax:(063).3.511.083 6. Di Linh Transaction Office 671 Hung Vuong Di Linh Town, Di Linh, Lam Dong Tel:(063).3.792.998 Fax:(063).3.792.999 SOUTHEAST 1. Binh Thuan Branch 126 Tran Hung Dao Phan Thiet City Binh Thuan Tel:(062).3.834.651 Fax:(062).3.834.656 1. LaGi Transaction Office 63 Le Loi LaGi, Binh Thuan Tel:(062).3.841.760 Fax:(062).3.841.761

165

ANNUAL REPORT 2011

2. Phan Ri Cua Transaction Office 239 Thong Nhat Phan Ri Cua Town, Tuy Phong Binh Thuan Tel:(062).3.972.699 Fax:(062).3.972.686 2. Binh Phuoc Branches Phu Thanh Area Tan Phu, Dong Xoai, Binh Phuoc Tel:(0651).3.888.092 Fax:(0651).3.883.569 1. Phuoc Long Transaction Office 217, Area 2 Phuoc Binh, Phuoc Long, Binh Phuoc Tel:(0651).3.775.201 Fax:(0651).3.775.201 2. Binh Long Transaction Office 158 Tran Hung Dao Area 4, Binh Long, Binh Phuoc Tel:(0651).3.682.692 Fax:(0651).3.682.692 3. Chon Thanh Transaction Office Group 2, Area 4 Chon Thanh Town, Chon Thanh Binh Phuoc Tel:(0651).3.660.079 Fax:(0651).3.660.080 4. Loc Ninh Transaction Office Group 2A Loc Ninh Town, Loc Ninh Binh Phuoc Tel:(0651).3.566.775(776) Fax 0651 3 566 775 3. Binh Duong Branch 431 Binh Duong Boulevard Area 1, Phu Cuong, Thu Dau Mot Binh Duong Tel:(0650).3.859.595(96) Fax:(0650).3.859.591 1. Thu Dau Mot Transaction Office 21A Cach Mang Thang 8 Ward Phu Cuong, Thu Dau Mot Binh Duong Tel:"(0650) 3.859.961;(0650) 3.855.109" Fax:(0650).3.859.962 2. Ben Cat Transaction Office 160 Group 6 Ap Cay San Lai Uyen, Ben Cat, Binh Duong Tel:(0650).3.562.863 Fax:(0650).3.552.033 3. Di An Transaction Office 9/22 Tran Hung Dao Area Binh Minh 2 Ward Di An, Di An, Binh Duong Tel:(0650).3.734.840 Fax:(0650).3.734.841 4. Lai Thieu Transaction Office C186A Group 18, Area Binh Duc Lai Thieu, Thuan An, Binh Duong Tel:(0650).3.760.375 Fax:(0650).3.760.437

5. My Phuoc Transaction Office Area 1, Binh Duong Boulevard My Phuoc, Ben Cat, Binh Duong Tel:(0650).3.559.669 Fax:(0650).3 559.668 6. Tan Phuoc Khanh Transaction Office Area Khanh Hoa Tan Phuoc Khanh Town, Tan Uyen Binh Duong Tel:(0650).3.612.060 Fax:(0650).3 612.062 7. Dau Tieng Transaction Office 6/8 Area 2 Dau Tieng Town, Dau Tieng Binh Duong Tel:(0650) 352 2997(98) Fax:(0650) 352 2996 8. 1 K Highway Transaction Office 1 B Noi Hoa 2 Hamlet Binh An, Di An, Binh Duong Tel:(0650).3.772.223(24, 25) Fax:(0650).3.772.226 9. Phu Giao Transaction Office Area 2 Phuoc Vinh Town, Phu Giao, Binh Duong Tel:(0650).3.675.141 (143) Fax:(0650).3.675.142 10. Tan Uyen Transaction Office Lot F4-F5 Uyen Hung Trade Center Tan Uyen, Binh Duong Tel:(0650).3.642.927(929) Fax:(0650).3.642.926 4. Tay Ninh Branch 149G 30 thang 4 Ward 1, Tay Ninh Tel:(066).3.810.414 Fax:(066).3.810.419 1. Tan Chau Transaction Office Area 2 Tan Chau Town, Tan Chau, Tay Ninh Tel:(066).3.759.023 Fax (066).3759.004 2. Go Dau Transaction Office Lot 2/24 Thanh Ha Hamlet Go Dau, Go Dau, Tay Ninh Tel:(066).3.520.300 Fax:(066).3.520.299 3. Hoa Thanh Transaction Office Hung Vuong Area 1, Hoa Thanh, Tay Ninh Tel:(066).3.831.010 Fax:(066).3.831.009 4. Tan Bien Transaction Office Area 2 Tan Bien Town, Tan Bien, Tay Ninh Tel:(066).3.745.666(777) Fax:(066).3.745.990 5. Trang Bang Transaction Office 22 National Highway, Loc Thanh Area Trang Bang Town, Trang Bang, Tay Ninh Tel:(066).3.890.158 Fax:(066).3.890.159

5. Dong Nai Branch 87-89 30 thang 4 Thanh Binh, Bien Hoa , Dong Nai Tel:(061).3.946.067 Fax:(061).3.946.068 1. Long Khanh Transaction Office Area 5 Xuan Hoa, Long Khanh, Dong Nai Tel:(061).3.783.587 Fax:(061).3.783.443 2. Ho Nai Transaction Office 11B/82, Area 1 Tan Bien, Bien Hoa , Dong Nai Tel:(061).3.884.149 Fax:(061).3.884.073 3. Bien Hoa Transaction Office 141/5 , 15 National Highway Tam Hiep, Bien Hoa, Dong Nai Tel:(061).3.913.518 Fax:(061).3.913.513 4. Trang Bom Transaction Office 07 - 1A National Highway, Group 22 Thai Hoa Hamlet Ho Nai 3, Trang Bom, Dong Nai Tel:(061).3.673.970 Fax:(061).3.673.971 5. Gia Kiem Transaction Office 112/4 Tan Yen Hamlet Gia Tan 3, Thong Nhat, Dong Nai Tel:(061).3.778.487 Fax:(061).3.778.488 6. Long Binh Tan Transaction Office C2/9 v 9B/2 Area 1 Long Binh Tan, Bien Hoa , Dong Nai Tel:(061).3.834.680 Fax:(061).3.834.680 7. Long Thanh Transaction Office Group 1 Vn Hi Long Thanh Town, Long Thanh, Dong Nai Tel:(061).3.501.976(77) Fax:(061).3.501.978 8. Dong Hoa Transaction Office 1A National Highway, An Bnh Hamlet Trung Hoa, Trang Bom, Dong Nai Tel:(061).3.868.819 Fax:(061).3.868.820 9. Phuong Lam Transaction Office 20 National Highway Thanh Tho 1 Hamlet, Phu Lam, Tan Phu Dong Nai Tel:(061).3.665.455 Fax:(061).3.665.454 6. Ba Ria-Vung Tau Branch 67A Le Hong Phong Ward 7, Vung Tau City, Ba Ria -Vung Tau Tel:(064).3.553.333 Fax:(064).3.553.336 1. Ba Ria Transaction Office 3 Duong Bach Mai Phuoc Trung, Ba Ria- Vung Tau Ba Ria -Vung Tau Tel:(064).3.717.148 Fax:(064).3.717.150 2. Chau Duc Transaction Office 291-293 Hung Vuong Ngai Giao, Chau Duc, Ba Ria -Vung Tau Tel:(064).3.963.011 Fax:(064).3.963.033

ANNUAL REPORT 2011

166

3. Rach Dua Transaction Office 196, 30 thang 4 street Rach Dua, Vung Tau Ba Ria -Vung Tau Tel:(064).3.615.298 Fax:(064).3.615.194 4. Long Hai Transaction Office 72 Hupng Avenue 2 Phuoc Hung, Long Dien Ba Ria -Vung Tau Tel:(064).3.671.555 Fax:(064).3.671.777 5. Tan Thanh Transaction Office Group 6 Doc Lap - Area Ngoc Ha Phu My Town,Tan Thanh Ba Ria -Vung Tau Tel:(064).3.895.757(58) Fax:(064).3.895.759 6. Xuyen Moc Transaction Office 223/6, 55 National Highway Phuoc Buu Town, Xuyen Moc Ba Ria -Vung Tau Tel:(064).3.777.770 (771, 772) Fax:(064).3.777.774 HOCHIMINH REGION 1. Sai Gon Branch 177-179-181 Nguyen Thai Hoc Pham Ngu Lao, District 1, Ho Chi Minh Tel:"(08).3.8.360.243; (08).38.378.778" Fax:(08).3.8.368.598 1. Tan Dinh Transaction Office No. 129-131 & 2nd Floor No. 127 & 1st Floor No. 133 Nguyen Huu Cau Tan Dinh, District 1, Ho Chi Minh Tel:"(08).3.8.204.778; 3.8.204.782;3.8.204.783" Fax (08).3.8.204.828 2. Vo Van Tan Transaction Office 291B - 291/1A Vo Van Tan Ward 5, District 3, Ho Chi Minh Tel:(08).3.8.335.647; 3.9.293.726 Fax:(08).3.8.335.646 3. District 1 Transaction Office No. 63B Calmette Nguyen Thai Binh, District 1 Ho Chi Minh Tel:(08).3.9.144.515 Fax:(08).3.9.144.516 4. Huynh Thuc Khang Transaction Office No 2 & 4 (Ground Floor) No. 6 Huynh Thuc Khang Ward Ben Nghe, District 1, Ho Chi Minh Tel:(08).3.9.147.486 Fax:(08).3.9.147.489 5. Cong Quynh Transaction Office 260 Cong Quynh Ward Pham Ngu Lao, District 1, Ho Chi Minh Tel:(08).3.9.259.260 (61, 62) Fax:(08).3.9.259.263

6. Vo Thi Sau Transaction Office 38 Vo Thi Sau Tan Dinh, District 1, Ho Chi Minh Tel:(08).3.8.206.375(78) Fax:(08).3.8.207.345 7. Nguyen Cu Trinh Transaction Office 152 Tran Dinh Xu Ward Nguyen Cu Trinh, District 1 Ho Chi Minh Tel:(08).3.9.208.911(12,13) Fax:(08).3.9.208.914 8. Pham Ngu Lao Transaction Office 211-213-215 Pham Ngu Lao W. Pham Ngu Lao, District 1 Ho Chi Minh Tel:(08).3.9.209.471(72, 73) Fax:(08).3.9.209.474 2. Hung Dao Branch 99A Nguyen Van Cu Ward 2, District 5, Ho Chi Minh Tel:(08).3.9.232.800 Fax:(08).3.9.232.799 1. Dong Khanh Transaction Office 65-67 Tran Hung Dao Ward 6, district 5, Ho Chi Minh Tel:(08).3.8.384.126 Fax:(08).3.8.384.074 2. Le Dai Hanh Transaction Office 347 Le Dai Hanh Ward 13, District 11, Ho Chi Minh Tel:(08).3.9.650.442 Fax:(08).3.9.650.443 3. 3 thang 2 Transaction Office 276-280 3 thang 2 Ward 12, District 10, Ho Chi Minh Tel:(08).3.8.680.383 Fax:(08).3.8.680.382 4. Hong Bang Transaction Office 517 Hong Bang Ward 14, District 5, Ho Chi Minh Tel:(08).3.8.552.207 Fax:(08).3.8.552.214 5. Minh Khai Transaction Office 530-532 Nguyen Thi Minh Khai Ward 2, District 3, Ho Chi Minh Tel:(08).3.9.381.801(03) Fax:(08).3.9.381.802 3. Cho Lon Branch 920-920A-920B Nguyen Chi Thanh Ward 4, District 11, Ho Chi Minh Tel:(08).3.9.555.280 Fax:(08).3.955 6139 1. Binh Tan Transaction Office 494-496 Kinh Duong Vuong Ward An Lac A, Binh Tan District Ho Chi Minh Tel:(08).3.7.522.271 Fax:(08).3.7.522.272

2. Phu Lam Transaction Office 63A Kinh Duong Vuong Ward 12, District 6, Ho Chi Minh Tel:(08).3.7.515.257 Fax:(08).3.7.515.246 3. Binh Phu Transaction Office 152 Cho Lon street Ward 11, District 6, Ho Chi Minh Tel:(08).3.7.551.723 Fax:(08).3.7.551.724 4. Binh Chanh Transaction Office B1/16-B1/17, 1 A National Highway 2 Hamlet, Binh Chanh, Binh Chanh Ho Chi Minh Tel:(08).3.7.608.140 Fax:(08).3.7.608.141 5. Ly Thuong Kiet Transaction Office 104-106 Ly Thuong Kiet Ward 7, District 10, Ho Chi Minh Tel:(08).3.9.573.137 Fax:(08).3.9.573.138 6. Lac Long Quan Transaction Office 349L-349K Lac Long Quan Ward 5, District 11, Ho Chi Minh Tel:(08).3.9.750.982 Fax:(08).3.9.750.983 7. Lanh Binh Thang Transaction Office 294 - 294A Lanh Binh Thang Ward 11, District 11, Ho Chi Minh Tel:(08).3.9.650.934 (35,36) Fax:(08).3.9.650.937 8. Au Lac Transaction Office 268 Au Co Ward 9, Tan Binh District, Ho Chi Minh Tel:(08).3.9.753.296 Fax:(08).3.9.753.299 9. Binh Tri Dong Transaction Office 234 Vanh Dai Trong Binh Tri Dong B, Binh Tan District Ho Chi Minh Tel:(08).3.8.170.520(22) Fax:(08).3.8.170.521 4. Tan Binh Branch 224 Le Van Sy Ward 1, Tan Binh District, Ho Chi Minh Tel:(08).3.9.907.202 Fax:(08).3.9.907.205 1. Ba Queo Transaction Office 14/3A Truong Chinh Ward 13, Tan Binh District, Ho Chi Minh Tel:(08).3.8.495.010 Fax:(08).3.8.495.010 2. Lu Gia Transaction Office 08, Street No. 2 Lu Gia, Ward 15, District 11 Ho Chi Minh Tel:(08).3.8.651.204 Fax:(08).3.8.651.204

167

ANNUAL REPORT 2011

3. Ong Ta Transaction Office 785-785A Cach Mang Thang 8 Ward 6, Tan Binh District, Ho Chi Minh Tel:(08).3.9.702.230 Fax:(08).3.9.702.230 4. E - Town Transaction Office 364 Cong Hoa Tan Binh, Ho Chi Minh Tel:(08).3.8.125.701 Fax:(08).3.8.105.702 5. Lang Cha Ca Transaction Office 315 Hoang Van Thu Ward 2, Tan Binh District, Ho Chi Minh Tel:(08).3.8.454.470 Fax:(08).3.8.454.471 6. Thanh Binh Transaction Office 170 Ground Floor Ly Thuong Kiet Ward 8, Tan Binh District, Ho Chi Minh Tel:"(08).3.9.718.143(44,45) (08).3.8.691.547" Fax :(08).3.9.718.146 7. Lac Hong Transaction Office 1016 Lac Long Quan Ward 8, Tan Binh District, Ho Chi Minh Tel:(08).3.9.752.940 (41, 42) Fax:(08).3.9.752.943 8. Cong Hoa Transaction Office 298 Cong Hoa Ward 13, Tan Binh District, Ho Chi Minh Tel:(08).3.8.107.880 (81, 83) Fax:(08).3.8.107.884 9. Bau Cat Transaction Office 201-203-205 Bau Cat Ward 14, Tan Binh District, Ho Chi Minh Tel:(08).3.9.493.094 Fax:(08).3.9.493.095 5. Go Vap Branch 94-96-98 Nguyen Oanh Ward 7, Go Vap District, Ho Chi Minh Tel:(08).3.8.943.648 Fax:(08).3.8.941.918 1. Cho Cau Transaction Office A-58 - Area 2 To Ky Dong Hung Thuan, District 12 Ho Chi Minh Tel:(08).3.7.150.828 Fax:(08).3.7.150.828 2. Nguyen Van Nghi Transaction Office 134-136 Nguyen Van Nghi Ward 5, Go Vap District, Ho Chi Minh Tel:(08).3.8.941.001, 3.9.855.584 Fax:(08).3.8.954.216

4. Thong Tay Transaction Office 2/5 Quang Trung Ward 11, Go Vap District, Ho Chi Minh Tel:(08).3.8.958.561 Fax:(08).3.9.967.984 5. Thanh Loc Transaction Office 170 Ha Huy Giap Thanh Loc, District 12, Ho Chi Minh Tel:(08).3.7.163.903 Fax:(08).3.7.163.904
6. Nguyen Thai Son Transaction Office 135-137 Nguyen Thai Son Ward 4, Go Vap District, Ho Chi Minh Tel:(08).3.5.888.895(96) Fax:(08).3.5.888.897 7. An Nhon Transaction Office 305-51/570 B Nguyen Oanh Ward 17, Go Vap District, Ho Chi Minh Tel:(08).3.9.848.136 Fax:(08).3.9.848.137 8. Phan Huy Ich Transaction Office 60/12 Phan Huy Ich Ward 12, Go Vap District, Ho Chi Minh Tel:(08).3.9.878.586(587) Fax:(08).3.9.878.584 9. Hoang Mai Transaction Office 602 - 604 Le Duc Tho Ward 15, Go Vap District, Ho Chi Minh Tel:(08).3.9.168.660(661) Fax:(08).3.9.168.662 6. Hoc Mon Branch 38 Truong Chinh Area 6 - W.Tan Hung Thuan, District 12 Ho Chi Minh Tel:(08).3.5.926.001 Fax:(08).3.5.926.010 1. Trung Chanh Transaction Office 145/5 Nguyen Anh Thu Trung Chanh, Hoc Mon Ho Chi Minh Tel:(08).3.8.839.325 Fax:(08).3.8.839.324 2. Thoi An Transaction Office 25/3 Le Van Khuong Ward Thoi An, District 12, Ho Chi Minh Tel:(08).3.7.177.308 Fax (08).3.7.177.310 3. An Suong Transaction Office 132/7 Truong Chinh - Area 5 Ward Tan Thoi Nhat, District 12 Ho Chi Minh Tel:(08).6.2.568.459 Fax:(08).6.2.568.458 4. Hiep Thanh Transaction Office 3A Nguyen Anh Thu Ward Hiep Thanh, District 12 Ho Chi Minh Tel:(08).3.7.178.389 Fax:(08).3.7.178.388

5. Trang Trau Transaction Office 19/4A Ly Thuong Kiet Hoc Mon Town, Hoc Mon District Ho Chi Minh Tel:(08).3.8.910.179 Fax:(08).3.7.103.545 6. Ba Diem Transaction Office 2/1A-2/1E Phan Van Hon Trung Lan Hamlet - Ba Diem, District Hoc Mon, Ho Chi Minh Tel:(08).3.5.901.658 (59, 60, 61) Fax:(08).3.5.901.525 7. Cu Chi Branch 345 National Highway 22 Thuong Hamlet Tan Thong Hoi, Cu Chi Ho Chi Minh Tel:(08).3.7.901.262 Fax:(08).3.7.900.262 1. An Nhon Tay Transaction Office 1476 Avenue 7 - Cho cu Hamlet An Nhon Tay, Cu Chi Ho Chi Minh Tel:(08).3.7.947.123 Fax:(08).3.7.947.124 2. Tan Quy Transaction Office 1010 Avenue 15 - 12 Hamlet Tan Thanh Dong, Cu Chi Ho Chi Minh Tel:(08).3.7.954.885 Fax:(08).3.7.954.841 3. Tay Bac Transaction Office 805 National Highway 22 Cu Chi Town, Cu Chi, Ho Chi Minh Tel:(08).3.7.924.159 Fax:(08).3.7.924.158 8. 8 thang 3 Branch 41-43 Tran Cao Van (Ground Floor, A Block - 1st Floor Master Building). Ward 6, District 3, Ho Chi Minh Tel:(08).3.5.218.318 Fax:(08).3.5.218.319 1. 8T3 - Nguyen Trai Transaction Office 234-226/216 Nguyen Trai Ward 3, District 5, Ho Chi Minh Tel:(08).3.8.380.719 Fax:(08).3.8.380.706 2. Phong Lan Transaction Office 192-194 Ly Thuong Kiet Ward 8, Tan Binh District, Ho Chi Minh Tel:(08).3.9.717.153 Fax:(08).3.9.712.040 9. Thu Duc Branch 231 Vo Van Ngan Linh Chieu, Thu Duc District Ho Chi Minh Tel:(08).3.7.222.799 Fax:(08).3.7.222.800

3. Xom Moi Transaction Office 20/401 Le uc Tho Ward 16, Go Vap District, Ho Chi Minh Tel:(08).3.9.963.090 Fax:(08).3.9.963.090

ANNUAL REPORT 2011

168

1. Kien Thiet Transaction Office 83A Le Van Viet Area 3, W. Hiep Phu, District 9 Ho Chi Minh Tel:(08).3.7.360.541 Fax:(08).3.7.360.544 2. Binh Thai Transaction Office 270-272 Do Xuan Hop Phuoc Long A, District 9, Ho Chi Minh Tel:(08).3.7.281.973 Fax:(08).3.7.281.974 3. An Phu Transaction Office 27 Tran Nao Binh An, District 2, Ho Chi Minh Tel:(08).3.7.402.653 (51,52) Fax:(08).3.7.402.650 4. Cat Lai Transaction Office 634 Nguyen Thi Dinh Area 2 - Thanh My Loi, District 2, Ho Chi Minh Tel:(08).3.7.423.865 Fax:(08).3.7.423.869 5. Thao Dien Transaction Office 18 Thao Dien Thao Dien, District 2, Ho Chi Minh Tel:(08).3.5.194.368 Fax:(08).3.5.194.372 10. Quan 8 Branch 324 Chanh Hung District 8, Ho Chi Minh Tel:(08).3.8.508.340 Fax:(08).3.8.508.341 1. Xom Cui Transaction Office 415-417 Tung Thien Vuong Ward 12, District 8, Ho Chi Minh Tel:(08).3.9.514.893 Fax:(08).3.9.504.403 2. Rach Ong Transaction Office 92-94 Nguyen Thi Tan Ward 5, District 8, Ho Chi Minh Tel:(08).3.9.830.133 Fax:(08).3.9.830.135 3. Trung Son Transaction Office 29 - 31 No. 9A - Trung Son Resident Binh Hung, Binh Chanh Ho Chi Minh Tel:(08).5.4.317.123 Fax:(08).5.4.318.543 4. Binh Dang Transaction Office 287-289 Avenue 5 Ward 5, District 8, Ho Chi Minh Tel:(08).6.2.635.681 Fax:(08).6.2.635.682 5. Pham The Hien Transaction Office 657 - 659A Pham The Hien W. 4, District 8, Ho Chi Minh Tel:(08).3..8.520.220 Fax:(08).3.8.520.221

11. Quan 4 Branch 55-57 Hoang Dieu District 4, Ho Chi Minh Tel:(08).3.9.433.963 Fax:(08).3.9.433.983 1. Tan Thuan Transaction Office 384 Huynh Tan Phat Binh Thuan, District 7, Ho Chi Minh Tel:(08).3.8.724.288 Fax:(08).3.8.724.289 2. My Toan Transaction Office 954-956 Area My Toan 3 - Nguyen Van Linh Tan Phong, District 7, Ho Chi Minh Tel:(08).5.4.103.944 Fax:(08).5.4.103.959 3. Nha Be Transaction Office 83 Huynh Tan Phat Nha Be Town, Nha Be, Ho Chi Minh Tel:(08).3.8.738.827 Fax:(08).3.8.738.826 4. Can Thanh Transaction Office 199/3 Duyen Hai Mieu Ba Hamlet - Can Thanh, Can Gio Ho Chi Minh Tel:(08).3.7.861.601(02, 03) Fax:(08).3.7.861.604

13. Dien Bien Phu Branch 549 Dien Bien Phu Ward 3, District 3, Ho Chi Minh Tel:(08).3.9.381.870 Fax:(08).3.9.381.871
Office

1. Nguyen Tri Phuong Transaction 335-337 Nguyen Tri Phuong Ward 5, District 10, Ho Chi Minh Tel:(08).3.8.347.458 Fax:(08).3.8.345.043 2. Bac Hai Transaction Office Area A - No. 24 Truong Son Ward 15, District 10, Ho Chi Minh Tel:(08).5.4.348.190 (92,93) Fax:(08).5.4.348.191 3. Su Van Hanh Transaction Office 836-838 Su Van Hanh Ward 13, District 10, Ho Chi Minh Tel:(08).5.4.348.199 (201,202) Fax:(08).5.4.348.200 4. Quan 10 Transaction Office 187 Ngo Gia Tu Ward 3, District 10, Ho Chi Minh Tel:(08).5.4.052.025 Fax:(08).5.4.052.026

5. Nguyen Thi Thap Transaction Office 172 Nguyen Thi Thap W. Binh Thuan, District 7 Ho Chi Minh Tel:(08).3.7.754.635 (36,37,38) Fax:(08).3.7.754.639 (640) 6. Phu My Hung 17 Area My Hoang - H5 W. Tan Phong, District 7, Ho Chi Minh Tel:(08).5.4.121.631 Fax:(08).5.4.120.923 12. Hoa Viet Branch 382 A-B Tran Hung Dao Ward 11, District 5, Ho Chi Minh Tel:(08).3.8.553.131 Fax:(08).3.8.553.003 1. Phung Hung Transaction Office 36-38 Phung Hung Ward 13, District 5, Ho Chi Minh Tel:(08).3.8.553.007 Fax:(08).3.8.553.013 2. Ngo Quyen Transaction Office 271 Ngo Quyen Ward 6, District 10, Ho Chi Minh Tel:(08).3.9.574.338 Fax:(08).3.9.574.335 3. Han Hai Nguyen Transaction Office 278 - 280 Han Hai Nguyen Ward 9, District 11, Ho Chi Minh Tel:(08).3.9.699.903 (04, 05) Fax:(08).3.9.699.906

14. Tan Phu Branch 47 Hoa Binh Tan Thoi Hoa, Tan Phu District, Ho Chi Minh Tel:"08.3.9.737.303; 08.3.9.618.725" Fax:"08.3.9.737.312; 08.3.9.618.736" 1. Phu Tho Hoa Transaction Office 303 Nguyen Son Phu Thanh, Tan Phu District Ho Chi Minh Tel:(08).3.9.786.034 Fax:(08).3.9.786.034 2. Tan Quy Transaction Office 32 - 32A - 30/1 Go Dau Tan Quy, Tan Phu District Ho Chi Minh Tel:(08).3.8.109.833 Fax:(08).3.8.109.833 3. Tan Binh Industrial Park Transaction 62-64 Tay Thanh Tay Thanh, Tan Phu District Ho Chi Minh Tel:(08).3.8.156.799 Fax:(08).3.8.156.799 4. Au Co Transaction Office 615B Au Co Hoa Thanh, Tan Phu District Ho Chi Minh Tel:(08).3.9.751.531 Fax:(08).3.9.751.533
Office

169

ANNUAL REPORT 2011

5. Le Trong Tan Transaction Office 143-145 Le Trong Tan (& 78 Son Ky) Son Ky, Tan Phu District, Ho Chi Minh Tel:(08).3.8.165.685 (86) Fax:(08).3.8.165.687 6. Go Cat Transaction Office 768 - 770 Tan Ky - Tan Quy Binh Hung Hoa, Binh Tan District Ho Chi Minh Tel:(08).3.7.671.596(97) Fax:(08).3.7.671.598 7. Le Van Quoi Transaction Office 246 Le Van Quoi Binh Hung Hoa, Binh Tan District Ho Chi Minh Tel:(08).3.9.721.815 Fax:(08).3.9.721.817 8. Luy Ban Bich Transaction Office No. 580 (Ground & 1st Floor) Luy Ban Bich Hiep Tan, Tan Phu District Ho Chi Minh Tel:(08).3.9.737.303(304) Fax:(08).3.9.737.311 15. Binh Thanh Branch 270B Bach Dang Ward 24, Binh Thanh District Ho Chi Minh Tel:(08).3.5.512.700 Fax:(08).3.5.512.699 1. Thi Nghe Transaction Office 89-91 Xo Viet Nghe Tinh Ward 7, Binh Thanh District Ho Chi Minh Tel:(08).3.5.144.767 Fax:(08).3.5.144.764 2. Thanh Da Transaction Office 552A - 552B Xo Viet Nghe Tinh Ward 25, Binh Thanh District Ho Chi Minh Tel:(08).3.5.119.570 Fax:(08).3.5.116.108 3. Binh Hoa Transaction Office 95 Le Quang Dinh Ward 14, Binh Thanh District Ho Chi Minh Tel:(08).3.5.510.502 Fax:(08).3.5.160.644 4. No Trang Long Transaction Office 202-204 No Trang Long Ward 12, Binh Thanh District Ho Chi Minh Tel:(08).3.5.162.227 Fax:(08).3.5.162.285 16. Binh Tay Branch 59-61-63-65 Hau Giang Ward 2, District 6, Ho Chi Minh Tel:(08).3.9.699.355(52) Fax:(08).3.9.699.361

1. Kim Bien Transaction Office 286 - 288 Hai Thuong Lang Ong Ward 14, District 5, Ho Chi Minh Tel:(08).5.4.052.300 Fax:(08).5.4.052.323 (24) 2. Cay Go Transaction Office 129A Minh Phung Ward 9, District 6, Ho Chi Minh Tel:(08).3.9.698.265 /66 /67 Fax:(08).3.9.698.264 3. Pham Van Chi Transaction Office 129-131 Pham Phu Thu Ward 3, District 6, Ho Chi Minh Tel:(08).3.9.676.171(173) Fax:(08).3.9.676.174 4. Tran Van Kieu Transaction Office 24 Tran Van Kieu Ward 10, District 5, Ho Chi Minh Tel:(08).3.9.520.301 (302, 296) Fax:(08).3.9.520.300 5. Ba Hom Transaction Office 698 Avenue 10 - Area 18 W. Binh Tri Dong, Binh Tan District Ho Chi Minh Tel:(08).3.7.620.760(61,62,63,64) Fax:(08).3.7.620.765
SOUTHWEST

6. Phu Tan Transaction Office 115 Chu Van An Phu My Town, Phu Tan, An Giang Tel:"(076).3.582.444;(076). 3.587.933 (44)" Fax:(076).3.587.955 7. Thoai Son Transaction Office 575 Nguyen Hue Nui Sap Town, Thoai Son, An Giang Tel:(076).3.712.770 (771, 772) Fax:(076).3.712.773 8. Tinh Bien Transaction Office 564-566 National Highway 91 Xuan Hoa, Tinh Bien Town, Tinh Bien, An Giang Tel:(076).3.751.751 (52, 53) Fax:(076).3.751.754 9. Long Xuyen Transaction Office 56B Ton Duc Thang My Binh, Long Xuyen, An Giang Tel:(076).3.956.516 Fax:(076).3.956.515 2. Can Tho Branch 95-97-99 Vo Van Tan Tan An, Ninh Kieu, Can Tho Tel:(0710).3.843.295 Fax:(0710).3.843.289 (294) 1. Tra Noc Transaction Office 34 A2 Tra Noc 1 Industrial Park Tra Noc, Binh Thuy, Can Tho Tel:(0710).3.811.022 Fax:(0710).3.810.523 2. Thot Not Transaction Office 314 National Highway 91 Area Long Thanh A W. Thot Not, Thot Not District Can Tho Tel:(0710).3.854.636 Fax:(0710).3.854.656 3. 3 thang 2 Transaction Office 174 B 3 thang 2 Hung Loi, Ninh Kieu , Can Tho Tel:(0710).3.740.611 Fax:(0710).3.740.609 4. O Mon Transaction Office 958/6 26 Thang 3 W. Chau Van Liem, O Mon District Can Tho Tel:(0710).3.665.550 (570,580) Fax:(0710).3.665.560 5. Cai Khe Transaction Office 81 - 83 Tran Van Kheo W. Cai Khe, Ninh Kieu District Can Tho Tel:(0710).3.761.687 Fax:(0710).3.761.688

1. An Giang Branch 333 Tran Hung Dao My Quy, Long Xuyn, An Giang Tel:(076).3.924.924 Fax:(076).3.924.900 1. Tan Chau Transaction Office 104 Ton Duc Thang W Long Thanh, Tan Chau, An Giang Tel:(076).3.534.282 Fax:(076).3.534.284 2. Chau Phu Transaction Office 17 Tran Quang Khai Cai Dau Town, Chau Phu, An Giang Tel:(076).3.685.856 Fax:(076).3.685.858 3. Nui Sam Transaction Office 9 Tan Lo Kieu Luong - Area Vinh Dong W. Nui Sam, Chau Doc , An Giang Tel:(076).3.571.678 Fax:(076).3.571.680 4. Cho Moi Transaction Office Avenue 942 ,2 Hamlet My Luong Town, Cho Moi, An Giang Tel:(076).3.626.554 Fax:(076).3.626.556 5. Chau Doc Transaction Office 88 Dong Da W. Chau Phu A, Chau Doc, An Giang Tel:(076).3.260.262 Fax:(076).3.260.264

ANNUAL REPORT 2011

170

6. An Phu Transaction Office 228.1C - 228/1D Tran Hung Dao W. An Nghiep, Ninh Kieu District Can Tho Tel:(0710).3.730.002 (03,04) Fax:(0710).3.730.001 7. Cai Rang Transaction Office 415-418 National Highway 1A Area Yen Ha W. Le Binh, Cai Rang District Can Tho Tel:(0710).3.527.537 (39, 40) Fax:(0710).3.527.538 8. Vinh Thanh Transaction Office 1315B-1315C Vinh Quoi Hamlet Vinh Thanh Town, Vinh Thanh Can Tho Tel:(0710).3.641.999 Fax:(0710).3.641.983 3. Dong Thap Branch 56 Nguyen Hue Ward 2, Cao Lanh City, Dong Thap Tel:(067).3.871.525 Fax:(067).3.871.535 1. Sa Dec Transaction Office 6-7 Nguyen Sinh Sac Ward 2, Sa Dec, Dong Thap Tel:(067).3.772.355 Fax:(067).3.772.360 2. Hong Ngu Transaction Office 54-56 Hung Vuong W. An Thanh, Hong Ngu, Dong Thap Tel:(067).3.562.998 Fax:(067).3.839.888 3. Thap Muoi Transaction Office 29/D Tran Phu My An Town,Thap Muoi, Dong Thap Tel:(067).3.941.676 (677, 678) Fax:(067).3.941.679 4. Lap Vo Transaction Office 717 3/2 street - Binh Thanh 1 Lap Vo Town, Lap Vo, Dong Thap Tel:(067).3.843.840 (41, 44) Fax:(067).3.843.843 4. Kien Giang Branch 137 Nguyen Hung Son W. Vinh Thanh Van, Rach Gia Kien Giang Tel:(0773).875.797 Fax:(0773).875.737 1. Tan Hiep Transaction Office 496 National Highway 80 Dong Thanh Hamlet Dong Thanh A, Tan Hiep, Kien Giang Tel:(0773).731.931 (34,35) Fax:(0773).731.933

2. Rach Soi Transaction Office 27 Cach Mang Thang 8 Vinh Loi, Rach Gia, Kien Giang Tel:(0773).913.718 Fax:(0773).913.719 3. Hon Dat Transaction Office 47 Duong Hon Hamlet Hon Dat Town, Hon Dat, Kien Giang Tel:(0773).786.133 (35,36) Fax:(0773).786.134 4. Ha Tien Transaction Office 155-157 Mac Thien Tich W. Binh San, Ha Tien, Kien Giang Tel:(0776).260.230 (250,290) Fax:(0776).260.300 5. Minh Luong Transaction Office 30 National Highway 61 Minh Luong Town, Chau Thanh Kien Giang Tel:(0773).619.363 (64,65) Fax:(0773).619.366 6. Kien Luong Transaction Office 16-17-18 Lot L2 Ba Hon Trade Center Kien Luong, Kien Giang Tel:(0773).751.951(52) Fax:(0773).751.954 7. Rach Gia Transaction Office 361 - 363 Nguyen Trung Truc W. Vinh Lac, Rach Gia City Kien Giang Tel:(0773).690.778 (79) Fax:(0773).690.777 8. Giong Rieng Transaction Office 94-95 Inner Zone Area Giong Rieng Town,Giong Rieng, Kien Giang Tel:(0773).654.572(573, 570) Fax:(0773).654.574 5. Phu Quoc Branch 52B 30 thang 4 Street - Area 1 Duong Dong, Phu Quoc, Kien Giang Tel:(0773).995.118 Fax:(0773).995.116 1. An Thoi Transaction Office Area 3 An Thoi Town, Phu Quoc, Kien Giang Tel:(0773).999,771 Fax:(0773).999,773 6. Hau Giang Branch 31 Street 3 Thang 2 Area 3 - ward 5, Vi Thanh city, Hau Giang Tel:(0711).3.876.075 Fax:(0711).3 876.950

1. Chau Thanh A Transaction Office 9A National highway 61 Tan Phu Hamlet Tan Phu Thanh, Chau Thanh A, Hau Giang Tel:(0711).3.952.774 Fax:(0711).3.952.773 2. Nga Bay Transaction Office 1/451 street Trieu Au Nga Bay, Nga Bay, Hau Giang Tel:(0711).3.962.826 Fax:(0711).3.962.824 3. Long My Transaction Office 50-52 30 thang 4 street 2 Hamlet, Long My Town, Long My, Hau Giang Tel:(0711).3.511.618 Fax:(0711).3.511.616 4. Chau Thanh Hau Giang Transaction B25-B26 Avenue 925 Nga Sau Town, Chau Thanh Hau Giang Tel:(0711).3.956.764 Fax:(0711).3.956.762 7. Bac Lieu Branch B1A Lot B Tran Phu, Bac Lieu Trade center, Ward 3, Bac Lieu Tel:(0781).3.932.206 Fax:(0781).3.932.201 1. Ho Phong Transaction Office 151-153 National Highe 1A - 2 Hamlet Ho Phong Town, Ga Rai, Bac Lieu Tel:(0781).3.671.484 Fax:(0781).3.671.494 2. Hoa Binh Transaction Office 20 - National Highway 1A , A1 Hamlet Hoa Binh Town, Hoa Binh, Bac Lieu Tel:(0781).3.883.288 Fax:(0781).3.883.289 3. Phuoc Long Town Transaction Office 307A Noi O Hamlet Phuoc Long Town,Phuoc Long Bac Lieu Tel:(0781).3.581.583 Fax:(0781).3.581.584 4. Dong Hai Transaction Office C24-C25 Ganh Hao Trade Center Ganh Hao Town,Dong Hai, Bac Lieu Tel:(0781).3.844.588 Fax:(0781).3.844.577 8. Soc Trang Branch 30 Tran Hung Dao Sub- ward 1, ward 2, Soc Trang City Soc Trang Tel:(079).3.616.762 Fax:(079).3.616.761
Office

171

ANNUAL REPORT 2011

1. My Xuyen Transaction Office 1 Avenue 8, Thanh Loi Hamlet My Xuyen, My Xuyen, Soc Trang Tel:(079).3.831.427 Fax:(079).3.831.426 2. Hai Ba Trung Transaction Office 118 Hai Ba Trung Sub ward 1, W. 1, Soc Trang Soc Trang Tel:(079).3.622.624 Fax:(079).3.622.621 3. Vinh Chau Transaction Office 247A street 30/4 Vinh Chau Town, Vinh Chau Soc Trang Tel:(079).3.911.567 Fax:(079).3.911.555 4. Thanh Phu Transaction Office 126 National Highway 1A - Area 3 Thanh Phu, My Xuyen, Soc Trang Tel:(079).3.690.044(55,66) Fax:(079).3.690.033 9. Long An Branch 165 - 167 Hung Vuong Ward 2, Tan An City, Long An Tel:(072).3.831.590 Fax:(072).3.831.594 1. Ben Luc Transaction Office 90 Nguyen Huu Tho Ben Luc Town, Ben Luc, Long An Tel:(072).3.633.443 Fax:(072).3.633.442 2. Tan An Transaction Office 25 Nguyen Dinh Chieu Ward 1, Tan An City, Long An Tel:(072).3.553.799 (899) Fax:(072).3.553.699 3. Duc Hoa Transaction Office Binh Tien Hamlet, 1 Avenue 825 Duc Hoa Ha, Duc Hoa, Long An Tel:(072).3 763.976 Fax:(072).3.763.978 4. Can Giuoc Transaction Office Lot7-8 TM Residential Area Area 2, National Highway 50 Can Giuoc Town, Can Giuoc, Long An Tel:(072).3.741.717/8 Fax:(072).3.741.719 5. Thu Thua Transaction Office 2/30B Phan Van Tinh Thu Thua Town, Thu Thua, Long An Tel:(072).3.613.660 (61,63) Fax:(072).3.613.664 6. Can Duoc Transaction Office 22A National Highway 50 - Area 3 Can Duoc Town, Can Duoc, Long An Tel:(072).3.713.555 (888) Fax:(072).3.713.444

7. Moc Hoa Transaction Office 42A Hung Vuong Moc Hoa Town, Moc Hoa, Long An Tel:(072).3.958.330 (333) Fax:(072).3.958.334 8. Go Den 31 National Highway 1A, Long Binh Hamlet Long Hiep, Ben Luc, Long An Tel:(072).3.637.551 (52,53,54,55) Fax:(072).3.637.556 10. Vinh Long Branch 35B 3 Thang 2 Ward 1, Vinh Long City, Vinh Long Tel:(070).3.878.260 Fax (070).3.878.261 1. Binh Minh Transaction Office 894 Ngo Quyen Cai Von, Binh Minh, Vinh Long Tel:(070).3.741.262 Fax:(070).3.741.272 2. Nguyen Hue Transaction Office 156 Nguyen Hue Ward 2, Vinh Long City, Vinh Long Tel:(070).3.836.898(97) Fax:(070).3.836.896 3. Tra On Transaction Office 15D - 16D Gia Long Area 1, Tra On Town, Vinh Long Tel:(070).3.772.727(729) Fax:(070).3.772.728 4. Vung Liem Transaction Office 03B - 04B Sub ward 2 Vung Liem Town,Vung Liem Vinh Long Tel:(070).3.971.789 Fax:(070).3.971.788 11. Ben Tre Branch 14C1 Dong Khoi Boulevard W. Phu Khuong, Ben Tre City, Ben Tre Tel:(075).3.839.115 Fax:(075).3.839.116 1. Mo Cay Transaction Office 256 Area 2 Mo Cay Town, Mo Cay Nam, Ben Tre Tel:(075).3.662.662 Fax:(075).3.662.663 2. Binh Dai Transaction Office 159/C Area 3 Binh Dai, Binh Dai, Ben Tre Tel:(075).3.742.743 Fax:(075).3.742.744 3. Giong Trom Transaction Office 600 Area 2 Giong Trom Town,Giong Trom Ben Tre Tel:(075).3.511.113 Fax:(075).3.511.115

4. Cho Lach Transaction Office 137/14B Area 2 Cho Lach Town, Cho Lach, Ben Tre Tel:(075).3.871.109(107, 108) Fax:(075).3.871.106 12. Tien Giang Branch 6 Dinh Bo Linh Ward 2, My Tho, Tien Giang Tel:(073).3.973.345 (33) Fax:(073).3.973.342 (44) 1. Cai Be Transaction Office 875 Hamlet 05 Phu An, Cai Lay, Tien Giang Tel:(073).3.925.777 Fax:(073).3.925.776 2. Go Cong Transaction Office 318 Vo Duy Linh W.1, Go Cng, Tien Giang Tel:(073).3.513.133 Fax (073).3.513.143 3. Cai Lay Transaction Office 2/336 Area 5, Street 868 Cai Lay Town, Cai Lay, Tien Giang Tel:(073).3.919.883 Fax:(073).3.919.886 4. Vinh Kim Transaction Office Vinh Thanh Hamlet Vinh Kim, Chau Thanh, Tien Giang Tel:(073).3.619.123/124 Fax (073).3,619,122 5. Cho Gao Transaction Office 130 - Lot 1 Area 2 Cho Gao Town, Cho Gao, Tien Giang Tel:(073).3.654.801(05) Fax:(073).3.654.806 6. My Tho A Transaction Office 194 Ap Bac Ward 5, My Tho City, Tien Giang Tel:(073).3.977.901 (905) Fax:(073).3.977.906 7. An Huu Transaction Office A 4 An Huu Cai Be, Tien Giang Tel:(073).3.767.979 (984) Fax:(073).3.767.984 13. Tra Vinh Branch 555 Nguyen Dang Sub ward 3 - W.6, Tra Vinh, Tra Vinh Tel:(074).3.858.711 (15) Fax:(074).3.858.710 1. Cang Long Transaction Office 02 - 03 National highway 53 Cang Long Town,Cang Long, Tra Vinh Tel:(074).3.884.411 Fax:(074).3.884.409

ANNUAL REPORT 2011

172

2. Tieu Can Transaction Office 17 street 30/4 Sub ward 1 - Tieu Can Town Tieu Can, Tra Vinh Tel:(074).3.630.996 (997, 998) Fax:(074).3.630.994 3. Tra Vinh City Transaction Office 40 Dien Bien Phu Ward 2, Tra Vinh City, Tra Vinh Tel:(074).3.763.113 Fax:(074).3.763.112 14. Ca Mau Branch 44 Ly Bn Ca Mau, Ca Mau Tel:(0780).3.812.001 Fax:(0780).3.812.006 1. Nam Can Transaction Office H35, H36 Nguyen Tat Thanh Nam Can, Nam Can, Ca Mau Tel:(0780).3.730.996 Fax:(0780).3.730.999 2. Tac Van Transaction Office 120 , Hamlet 3 Tac Van, Ca Mau City, Ca Mau Tel:(0780).3.660.044 Fax:(0780).3.661.324 3. Song Doc Transaction Office 116 Group 3 - Sub ward 10 Song Doc Town,Tran Van Thoi Ca Mau Tel:(0780).3.892.303 (304) Fax:(0780).3.892.555
INTERNATIONAL CAMBODIA

2. Vietnam Supermarket Branch 717-719 Preah Monivong Boulevard Sangkat Boeung Keng Kang 3 Khan Chamkarmon Phnmpnh - Cambodia Tel:(855).23.223.421 Fax:(855).23.214.734 3. Chbar Ampeou Branch 577A-578B National Road 1 Sangkat Chbar Ampeou II Khan Mean Chey Phnmpnh - Cambodia Tel:(855).23.223.418 Fax:(855).23.721.571
LAOS

1. LAOS 175/02 Saylom Ban Hatsady Chanthabury Vientiane - LAOS TEL:(856).21.260.400 Fax:(856).21.260.402 1. Cho Sang Transaction Office B#01-04 - 1st Floor Cho Sang Trade Center Lane Xang Ban Hatsady Chanthabury Vientiane - LAOS Tel:(856).21.285.400 Fax:(859).21.285.400

1. SACOMBANK CAMBODIA 60 Norodom Boulevard Sangkat Chey Chumnas Khan Daun Pnh Phnmpnh - Cambodia TEL:(855).23.223.422 Fax:(855).23.223.433 1. Olympic Branch 319 - 321 Preah Shihanouk Boulevard Sangkat Veal Vong Khan 7 Makara Phnmpnh - Cambodia Tel:(855).23.223.420 Fax:(855).23.223.402

Designed and produced by

173

ANNUAL REPORT 2011

ANNUAL REPORT 2011

174

175

ANNUAL REPORT 2011

SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK (SACOMBANK) 266-268 Nam Ky Khoi Nghia Street, Ward 8, District 3, HoChiMinh City Tel : (84 8)39320420 Fax : (84 8)39320424 Website : www.sacombank.com.vn