BCTN 2014 - English Final - Eximbank Report 2014 TABLE OF CONTENTS 3 MESSAGE OF THE BOARD CHAIRMAN...
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ANNUAL REPORT
Transcript of BCTN 2014 - English Final - Eximbank Report 2014 TABLE OF CONTENTS 3 MESSAGE OF THE BOARD CHAIRMAN...
ANNUALREPORT
2014ANNUAL REPORT
Annual Report 2014
TABLE OF CONTENTS
3
MESSAGE OF THE BOARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER
I. CORPORATE INFORMATION
1.General information
2.History and development
3.Organization and management structure
4.Development orientations
5.Risks
II. BUSINESS PERFORMANCE IN 2014
1.Operations, financial conditions and business results of 2014
2.Organization and personnel
3.Investment in Debt Management and Asset Exploitation Company (Eximbank AMC)
4.Number of shares and shareholding structure of Eximbank
III. REPORTS AND ASSESSMENTS OF THE BOARD OF MANAGEMENT
1. Evaluation of business performance
2. Financial conditions
3. Improvements in organization structure, policy and management
4. Business plan in 2015
IV. THE BOARD OF DIRECTORS' EVALUATION OF THE PERFORMANCE OF THE BANK
1. The Board of Directors' evaluation of operational aspects of the Bank
2. The Board of Directors' evaluation of the performance of the Board of Management
3. Plans and orientations of the Board of Directors
V. CORPORATE GOVERNANCE
1. The Board of Directors
2. The Board of Supervisors
3. Transactions, remunerations, and interests of the Board of Directors, the Board of Supervisors and
the Board of Management
VI. FINANCIAL STATEMENTS
1. Consolidated financial statements
2. Separate financial statements
3. Opinions of internal auditors
MILESTONES IN 2014AWARDSCOMMUNITY-ORIENTED ACTIVITIES
OPERATING NETWORK
4
8
19
39
58
62
81
159
162
MESSAGE OF THE BOARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Annual Report 2014 5
MESSAGE OF THE BOARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER
On behalf of the Board of Directors, Board of Management and the entire staff and officers of Eximbank, we would like to extend our sincerest thanks and best wishes to our valued shareholders, customers, State Bank of Vietnam, local and foreign partners who have provided great support to our Bank during the last year. We do look forward to continuing to receive your kind support, accompaniment, sharing and feedbacks for Eximbank to further develop and better in the forthcoming time.
In spite of difficulties of the business environment last year, the Board of Directors and Board of
Management together with the whole staff and officers of Eximbank have struggled to overcome the
obstacles, sustain and stabilize the Bank's business activities with total assets reaching 161,094 billion
VND, fulfilling 95% of the plan; funds raised from economic entities and individuals reaching 101,380
billion VND, up 22.7% compared to end of 2013 and fulfilling 101% of the plan; total credit exposure
achieving 97,956 billion VND, up 10.7% compared to end of 2013 and completing 100.7% of the plan;
while NPL ratio being controlled at 2.46%. In addition, Eximbank has also increased its risk provisioning to
facilitate sustainable developments of the Bank.
Although the results did not come up to expectations, Eximbank has made certain achievements
compared to the common situation of the banking industry. The Bank has applied flexible management
mechanism to keep in line with business environments by using such solutions as restructuring the
organization model from Head Office to branches, streamlining operating apparatus, focusing resources
on sales forces; strengthening operating quality of transaction offices to enhance competitiveness;
increasing retail sales; improving payment service activities; and promoting the disposal of bad loans and
sale of loans to VAMC, etc.
With all the efforts and endeavours in the recent time, Eximbank was awarded “Best Bank in
Vietnam 2014” by EuroMoney magazine; and continuously listed as “Top 1,000 World Banks 2014” by The
Banker – a leading magazine in financial sector, etc.
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Apart from business development, Eximbank has kept sharing difficulties with and contributing
to bring joys to the community and society; specifically, facilitating poor patients in Ho Chi Minh City to
receive health insurance cards for free medical treatment; supporting fishermen, Vietnam marine police
under “For beloved Truong Sa, for the Country's front line” fund; supporting with scholarships for difficulty
surmounting; supporting the Youth Union of Ho Chi Minh City to implement social programs; supporting
the Elderly Care Fund of Ho Chi Minh City; supporting the construction and renovation of schools and
kindergartens for children in remote areas.
Turning to 2015, Eximbank aims at continuing to perfect its business model, enhance financial
capabilities, develop infrastructure - information technology, improve the quality of senior managers of
branches, transaction offices and staff, focus on “customer service quality enhancement” by improving
service quality, attitude and customer care policy to carry out the proposed targets being: total assets to
reach 180,000 billion VND, up 12% compared to 2014; fund mobilization to reach 126,000 billion VND, up
24% compared to 2014; credit exposure to reach 108,750 billion VND, up 11% compared to 2014; profit
before tax to reach 1,000 billion VND; and NPL ratio to be kept under 3%.
With the accomplishments in 2014 and positive signals of the world's and Vietnam's economic
progresses, Eximbank will keep on consolidating and strengthening its position in the domestic and
international financial markets. The Board of Directors, Board of Management and all staff and officers in
the network will make the best efforts to fulfill the plan as set out for 2015, contributing to the common
growth of the banking industry as well as the economy.
MESSAGE OF THE BOARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER (cont.)
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FOR THE BOARD OF DIRECTORSCHAIRMAN
LE HUNG DUNG
CHIEF EXECUTIVE OFFICER
PHAM HUU PHU
On behalf of the Board of Directors, Board of Management and the entire staff and officers of
Eximbank, we would like to extend our sincerest thanks and best wishes to our valued shareholders,
customers, State Bank of Vietnam, local and foreign partners who have provided great support to our
Bank during the last year. We do look forward to continuing to receive your kind support,
accompaniment, sharing and feedbacks for Eximbank to further develop and better in the forthcoming
time.
FOR THE BOARD OF MANAGEMENT
Annual Report 2014
MESSAGE OF THE BOARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER (cont.)
I. CORPORATE INFORMATION
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I.1.General Information
- Registered Vietnamese name
Ngân hàng thương mại cổ phần Xuất nhập khẩu Việt Nam
- Registered English name
Vietnam Export Import Commercial Joint Stock Bank (Vietnam Eximbank)
- Chairman of the Board of Directors
Mr. Le Hung Dung
- Chief Executive Officer
Mr. Pham Huu Phu
- Registered Head Office address
Level 8 – Suite No. L8-01-11 + 16, VINCOM CENTER,
72 Le Thanh Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
- Office address
Level 8 – Suite No. L8-01-11 + 16, VINCOM CENTER,
72 Le Thanh Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Tel: (84.8) 38.210.056 - Fax: (84.8) 38.216.913
Website: http://www.eximbank.com.vn
- Regulator
The State Bank of Vietnam
- Auditor
ERNST & YOUNG Vietnam LimitedthAddress: The 28 Floor, Bitexco Financial Tower, 2 Hai Trieu Street, District 1, Ho Chi Minh City, Vietnam
- Date of first registration
23/07/1992th- Date of registration for the 24 modification
14/11/2014
- Authority of first registration
Department of Planning and Investment of Ho Chi Minh City
- Business Operation Licenseth11/NH-GP dated 06 April 1992
- Tax registration certificate number
0301179079
- Stock information
Ho Chi Minh City Stock Exchange
- Stock name
Vietnam Export Import Commercial Joint Stock Bank (Eximbank)
- Stock code: EIB
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I.2. History and development
I.2.1. History
Vietnam Export Import Commercial Joint Stock Bank is one of the first commercial joint stock
th banks of Vietnam, being established on 24 May 1989 under Decision No. 140/CT by the Chairman of the
Council of Ministers with the original name being Vietnam Export Import Bank.
thVietnam Export Import Bank officially came into operation on 17 January 1990 and received its
License of Operation No. 11/NH-GP dated 06th April 1992 by the Governor of the State Bank of Vietnam
allowing the Bank to operate for a term of 50 years with the registered charter capital of 50 billion VND
(equivalent to 12.5 million USD at the time of establishment) under the new name being Vietnam Export
Import Commercial Joint Stock Bank (or “Eximbank” in short).
I.2.2. Business lines
Eximbank's major business lines include: short, medium and long term fund mobilization in form
of savings deposits, payment deposits, certificates of deposit; receipt of funds entrusted for investment;
receipt of funds from domestic and foreign credit institutions; short, medium and long term lending;
discount of commercial papers, State bonds and valuable papers; foreign exchange trading; international
settlements; investment in securities and valuable papers; payment services and issuance of domestic
cards, international Visa, MasterCard, and Visa Debit cards; cash services; package financial services for
overseas study; financial advisory services; corporate bond trading; and other banking services, etc.
I.2.3. Business locations
Eximbank's Head Office is located at Level 8 – Suite No. L8-01-11 + 16, Vincom Center, 72 Le Thanh
Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam. At the end of 2014, Eximbank's network
comprises of 208 banking units at cities and provinces nationwide, including: 44 Branches, 163
Transaction Offices, and 1 Savings Fund.
Currently, Eximbank's transaction network has covered 22 provinces and cities nationwide,
including Hanoi, Hai Phong, Nghe An, Quang Ninh, Quang Ngai, Quang Nam, Da Nang, Hue, Nha Trang,
Lam Dong, Dac Lac, Binh Phuoc, Binh Duong, Dong Nai, Ba Ria – Vung Tau, Ho Chi Minh City, Long An, An
Giang, Tien Giang, Can Tho, Bac Lieu and Kien Giang.
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I.2.4. Listing
Eximbank obtained the approval from Ho Chi Minh City Stock Exchange (HOSE) to list its shares
thfrom 20 October 2009 under Decision No.128/QD-SGDHCM.
Stock name: Stock of Vietnam Export Import Commercial Joint Stock Bank
Stock type: Common
Par value: VND10,000 per share
Total listed volumes: 1,235,522,904 shares
Total listed value: 12,355,229,040,000 VND (as per par value)
I.2.5. Prominent events through years of operation
1991 & 1992: Entrusted by the State Bank of Vietnam and the Ministry of Finance to carry out part
of the Swedish non-refundable finance program extended to Vietnamese entities having demands for
importing goods from Sweden.
1993: Join the Electronic Clearing System of the State Bank of Vietnam.
1995: Join SWIFT (Society for Worldwide Interbank Financial Telecommunication);
Selected as 1 among 6 Vietnamese banks to participate in the Bank Modernization Project
organized by the State Bank of Vietnam and funded by the World Bank.
1997: Become a principal member of MasterCard International.
1998: Become an official member of Visa International.
2003: Launch the online Intra-bank Payment System in the whole network.
2005: Be the first bank in Vietnam to issue international Visa Debit cards.
2007: Sign strategic partnership agreements with 17 domestic and foreign investors, especially
the strategic alliance agreement with Sumitomo Mitsui Banking Corporation (SMBC) of Japan.
2008: Increase the charter capital to 7,220 billion VND.
2009: Raise the charter capital to 8,800 billion VND and officially listed on Ho Chi Minh City Stock
Exchange.
2010: Increase the charter capital to 10,560 billion VND.
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2011: Increase the charter capital to 12,355 billion VND;
Selected by The Banker magazine to appear in its Top 1,000 World Banks and Top 25 Banks by
Asset Growth in 2010.
2012: Presented “Best Domestic Bank in Vietnam 2012” award by the AsiaMoney magazine;
Continue to be ranked in the Top 1,000 World Banks 2012 by The Banker magazine;
Officially launch the new set of brand identity
2013: Awarded by The Asian Banker Magazine with “Best Managed Bank in Vietnam 2013”; by
EuroMoney Magazine with “Best Bank in Vietnam 2013”; and continue to be ranked in the Top 1,000 World
Banks 2013 by The Banker magazine.
Eximbank is one of the first banks becoming member to issue JCB-branded international card in
Vietnam.
2014: Selected by The Banker magazine to appear in its Top 1,000 World Banks in 2014. Eximbank
is honoured to be ranked in the Top World Banks for many consecutive years; Awarded by EuroMoney
Magazine with “Best Bank in Vietnam 2014”.
Bestowed “Excellence in International Payments” award by The Bank of New York Mellon.
Bestowed Top 100 Virtue-Talented Managers and Top 100 Most Outstanding Enterprises awards
by Vietnam Enterprise Association.
Presented “Best Annual Report 2014” award by Ho Chi Minh City Stock Exchange and Securities
Investment Magazine. This is the fourth consecutive year Eximbank's Annual Report wins high position in
the polls.
Selected as “Strong and Sustainable Enterprises 2014” by Businessmen Cultural Center.
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70,70572,777
85,51982,650
101,380
2010 2011 2012 2013
62,346
74,663
2010 2011 2012 2013 2014
74,922
83,35487,147
2,378
4,056
2,851
828
2010 2011 2012 2013
13.51
20.39
2010 2011 2012 2013 2014
ROE (%)
13.3
4.3
0.39
Financial highlights over the years
131,111
183,567170,156
169,835
2010 2011 2012 2013
CONSOLIDATED TOTAL ASSETS (BILLION VND)
10,560
12,355
2010 2011 2012 2013 2014
CHARTER CAPITAL (BILLION VND)
12,355 12,355 12,355
161,094
2014
2014
69
2014
CONSOLIDATED TOTAL MOBILIZED FUNDS (BILLION VND) CONSOLIDATED TOTAL LOAN BALANCE (BILLION VND)
CONSOLIDATED PROFIT BEFORE TAX (BILLION VND)
Annual Report 2014
I.3. Organization model and management structure
BOARD OF SUPERVISORS(BOARD OF INTERNAL AUDITORS)
EXIMBANK CONSTRUCTION WORK
PROJECT MANAGEMENT UNIT
(SPECIALIZED UNIT)
BOARD OF DIRECTORS
COUNCILS/COMMITTEES
GENERAL MEETING OF SHAREHOLDERS
CHIEF EXECUTIVE OFFICER
VICE PRESIDENTS
Chief Accountant
TRAINING CENTER
COUNCILS/COMMITTEES
Alliance Dept.
Corporate Planning Dept.Fund Management Dept.
International Relations Dept.
Marketing Dept.
Quality Management Dept.
Market Risk Management Dept.Operational Risk Management Dept.Credit Risk Management Dept.Legal & Compliance Dept.General Accounting Dept.
Business Development Division
Operational Supervision Division
NPL Analysis Dept.Assets – Liabilities Settlement Dept.Dispute Resolution Dept.Area Debt Settlement Team
Network Expansion & Support Dept.
Administration Dept.
Eximbank Representative Office in Hanoi
Cash Dept.
Human Resources Management Dept
Regional Offices
Debt Settlement Center
Cash-Administration Division
Human Resources Division
REGIONS
BRANCHES
TRANSACTION OFFICES/POINTS
Corporate Banking Division
Retail Banking Center
Retail Banking Division
Card Center
Treasury Division
Credit Center
Valuation Center
Information Technology Division
Corporate Customers Dept.International Settlement Dept.
Sales Management Dept.
Sales Support Dept.
Individual Customer Service Dept.
Card Sales Promotion Dept.
Card Business Management Dept.
Gold Trading CenterForeign Currency Trading Dept.Financial Investment Dept.Fund Trading Dept.
Credit Appraisal Dept.Credit Analysis Dept.Credit Support Section
Asset Valuation Dept.Regional Valuation Section
Data, Infrastructure & Security Management CenterIT Product- Service Maintenance & Development CenterIT Product-Service Project Research CenterElectronic Banking Dept.
OFFICE OF THE BOARD OF DIRECTORS
I.3.1 Organization model
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I.3.2. Management structure
The Board of Directors
Mr. Le Hung Dung Chairman
Mr. Ha Thanh Hung Standing Vice Chairman
Mr. Naoki Nishizawa Vice Chairman
Mr. Dang Phuoc Dua Vice Chairman
Mr. Pham Huu Phu Vice Chairman
Mr. Nguyen Quang Thong Vice Chairman
Mr. Hoang Tuan Khai Vice Chairman
Mr. Dang Anh Mai Member
Mr. Lawrence Justin Wolfe Independent member
The Board of Supervisors
Mr. Dang Huu Tien Chief Supervisor
Mr. Nguyen Hong Long Vice Chief Supervisor
Mr. Tran Le Quyet Vice Chief Supervisor
Mrs. Nguyen Thi Phung Member
The Management
Mr. Pham Huu Phu Chief Executive Officer
Mr. Tran Tan Loc Standing Executive Vice President
Mr. Nguyen Quoc Huong Vice President
Mr. Dao Hong Chau Vice President
Mrs. Dinh Thi Thu Thao Vice President
Mr. Kenji Kuroki Vice President
Mrs. Van Thai Bao Nhi Vice President
Mr. Mitsuaki Shiogo Vice President
Mr. Le Anh Tu Vice President
Mrs. Bui Do Bich Van Vice President
Mr. Nguyen Ho Hoang Vu Vice President
Mr. Le Hai Lam Vice President
Mr. Nguyen Quang Triet Vice President
Annual Report 2014
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I.3.3. Subsidiaries and Affiliates
Eximbank has one subsidiary which is Debt Management and Asset Exploitation One-member
Limited Liability Company with the registered charter capital of 1,700 billion VND, located at Building No.
24B Truong Dinh, Ward 6, District 3, Ho Chi Minh City. The actual paid-up capital as of 31 December 2014 is
955 billion VND.
In 2014, Eximbank liquidated its entire investment in Exim Real Estates Joint Stock Company
(Eximland). Therefore, as of 31 December 2014, Eximbank had only 1 associate being Viet Dragon
Securities Corporation located at No. 141 Nguyen Du, Ben Thanh Ward, District 1, Ho Chi Minh City, with its
business line being securities, and Eximbank's ownership ratio of 10.86% at the Company.
I.4. Development orientations
I.4.1. Development vision
Eximbank will take advantage of market opportunities to maintain sustainable growth,
strengthen and expand its customer base, heighten position and develop Eximbank into a modern
commercial joint stock bank at which all shareholders, investors, customers and partners are confident
with their capital investment and safety; a bank that offers a variety of high quality banking and financial
products and services; and a brand with high prestige in the banking and financial industry and great
contribution to the community and society.
I.4.2. Development targets and orientations up to 2020
For the period of 2015 – 2020, Eximbank strives to be in Top 5 commercial joint stock banks
(excluding commercial joint stock banks with state-owned holding).
To take advantage of chance and opportunities, effectively use the strength in owners' equity
through the commercial banking and investment banking operations, and subsidiaries' and associates'
activities. Simultaneously, to leverage the advantage of good relations with foreign partners, especially
the strategic partner as Sumitomo Mitsui Banking Corporation.
Mr. Cao Xuan Lanh Vice President
Mr. Nguyen Van Hao Vice President
Mr. Nguyen Thuc Vinh Vice President
Mr. Nguyen Ngoc Ha Chief Accountant
Annual Report 2014
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To develop products and services suitable with market demands, to increase the service income
structure over the total income of the Bank, especially the settlement services.
To continue promoting its strengths in trade finance, export and import finance, gold trading,
foreign exchange trading, diversifying products and services based on the application of advanced
information technology foundation, gradually adopting best international standards and developing
high quality human resources.
To keep on boosting retail banking operations through the development of appropriate retail
sales model, a more professional sales force, and a product policy suitable with the market demands.
To strengthen the concentration on protecting and improving the environmental quality,
protecting human rights, observing with the requirements on labour and occupation, and participating
in other social policies during the course of operation of Eximbank.
I.5. Risks
Eximbank is aware of and takes control over risks that are likely to affect its business activities or
the execution of its general objectives, including business environmental risk, credit risk, market risk,
liquidity risk and operational risk.
a) Business environmental risk is the risk arising out of macro-economic factors.
The country's economy in 2014 generally has made many positive changes (GDP growth in 2014
is estimated to increase by 5.98 % against 2013); however, under the pressure of world economic and
political uncertainty as well as previous unthoroughly solved difficulties (the capital absorptive capacity
of the economy being not high, bad debt pressure remaining heavy, credit quality being not up to
expectation, and management capability and competitiveness of enterprises being still low), production
and business of local enterprises will still suffer lots of negative and long-term impacts until the end of
2015. Such challenges affect individual and corporate customers dealing with Eximbank.
2015 will be a challenging year for Eximbank in particular and Vietnam's credit institutions in
general when Circular 36 officially takes effect. 2015 is the last year of implementing the Government's
Scheme on “Restructuring the credit institution system in the 2011-2015 period” and also the year of
completing phase 1 of the process of applying Basel II to the Vietnamese banking system.
b) Credit risk is the loss likely to happen to the Bank's credits due to customers' failure to fully
perform their repayment obligations as committed, which may be due to subjective or objective reasons.
Credit risk is considered the biggest risk regularly affecting the Bank's operations as credit activity creates
Annual Report 2014
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the highest income for the bank.
c) Market risk is the risk arising out of market fluctuations causing adverse impacts on Eximbank's
income and (or) capital, including:
(i) Interest rate risk: as Eximbank's asset and income portfolio mainly originate from lending and
bond investment activities, the interest rate volatilities shall cause strong impacts on Eximbank's
performance. Interest rate risk may arise from the difference in the times of interest rate fixation, changes
of the relationship among different market interest rates, or changes of the interest rate relationship
among different tenors or interest-linked option products.
(ii) Exchange rate risk is the risk resulted from exchange rate volatilities causing negative impacts
on Eximbank's income and capital. Exchange rate risk may arise from such forms as foreign exchange
transactions, foreign currency derivative transactions (e.g. future, currency swap and option contracts).
(iii) Investment value risk is the risk resulted from price fluctuations of stocks, bonds and other
capital and securities investments, leading to the diminution of investments held by the Bank.
d) Liquidity risk is the risk that leads to inability to meet payment obligations to customers,
liquidity demand at the time of financial obligation incurrence; or that, though being able to perform its
obligations when due, Eximbank has to suffer great losses upon performing such obligations. Liquidity
risk may arise from the gap between the size and tenor of assets and liabilities in different times.
e) Operational risk is the risk associated with the bank's operations but it's hard to manage and
prevent the same. It stems from human factors, deficiencies in operational procedures, weaknesses in
information system and internal control system, or external factors. Operational risk is the most complex
risk faced by Eximbank for its hardly controllable nature and diversity. To cope with such risk, Eximbank
has developed and promulgated internal policies and manuals, set up business continuity plan to deal
with mistakes in manipulations and unexpected incidents.
Annual Report 2014
II. BUSINESS PERFORMANCE IN 2014
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II.1. Operations, financial conditions and business results of 2014
During last year, although the macro-economy was stabilized in a positive direction, the business
environment of the banking and financial industry still faced with many challenges such as: rising
competition among banks, NPL ratio increase, etc. However, with relentless efforts, Eximbank achieved
the following results: Mobilized funds from economic entities and individuals reached 101,380 billion
VND, up 22.7% compared to 2013 and fulfilling 101% of the plan. Total credits granted to economic
entities and individuals (including lending and corporate bonds) reached 97,956 billion VND, up 10.7%
compared to 2013 and outperforming the proposed plan (97,300 billion VND). Of which, total loan
balance to economic entities and individuals was 87,147 billion VND, up 4.6% against 2013 and
completing 97% of the plan. Total assets achieved 161,094 billion VND, down 5% compared to 2013 and
fulfilling 95% of the plan.
Despite the drop in total assets and profit of Eximbank in 2014, it reflected Eximbank's
determination to make the financial structure healthy and enhance asset quality. In addition, Eximbank
boldly set aside provision from the profits earned from business activities to serve as a premise for growth
in subsequent years and to strictly comply with the commitment of developing the Bank in a healthy and
sustainable manner. Therefore, Eximbank's profit before tax was 69 billion VND, return on average assets
ratio (ROA) was 0.03%, and return on average equity ratio (ROE) was 0.39%.
Prudent ratios of Eximbank were all within the safety limits as required by the State Bank. As of 31
December 2014, the consolidated capital adequacy ratio reached 13.62%, higher than the regulated ratio
of 9% imposed by the State Bank.
Some financial highlights
Target Unit 2013 2014 % up /downagainst 2013
1. Capital base
Total assets billion VND 169,835 161,094 -5.1%
Shareholders' equity billion VND 14,680 14,068 -4.2%
Of which: Charter capital billion VND 12,355 12,355 0.0%
Capital Adequacy Ratio (CAR) % 14.47 13.62
Annual Report 2014
21
2. Operating results
Funds raised from economic
entities and individuals
Total deposits
Total credit exposure
Of which, outstanding loans to
economic entities and individuals
Total loans disbursement
Total loans collection
Overdue loans (groups 2-5)
Non-performing loans (groups 3-5)
Overdue loans to total gross loans
Non-performing loans to total
gross loans
Overdue guarantees to total
guarantees
billion VND
billion VND
billion VND
billion VND
billion VND
billion VND
billion VND
billion VND
%
%
%
101,380
2,052,105
97,956
87,147
224,773
220,980
2,680
2,144
3.08
2.46
0.04
22.7%
2.3%
10.7%
4.6%
-10.3%
-8.7%
-8.5%
29.8%
3. Financial condition
Net interest income
Net service income
Net income from other activities
Total operating income
Total operating expenses
Net operating income before
provision for credit losses
Risk provisioning expenses
Profit before tax
Corporate income tax
Profit after tax
2,710
493
(261)
2,942
(2,049)
894
(825)
69
(13)
56
-1.0%
59.5%
-9.4%
-3.4%
-20.7%
174.9%
-91.7%
-92.3%
-91.5%
82,650
2,006,255
88,453
83,354
250,492
242,060
2,929
1,652
3.51
1.98
0.06
2,736
309
204
3,249
(2,121)
1,128
(300)
828
(169)
659
Target Unit 2013 2014 % up /downagainst 2013
billion VND
billion VND
billion VND
billion VND
billion VND
billion VND
billion VND
billion VND
billion VND
billion VND
Annual Report 2014
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4. Profitability
Return on Equity (ROE)
Return on Assets (ROA)
5. Liquidity
Quick ratio (converted to VND)
Ratio of short-term funds used
for mid and long-term loans
6. Dividend payout ratio
%
%
%
%
% p.a.
4.3
0.4
17.43
18.67
4
Eximbank continued to transform its business model to be in line with economic conditions
through restructuring the organization model in way of refining the operating apparatus, enhancing
labour capacity, concentrating resources on sales forces; improved operating quality of transaction
offices; promoted efficient credit growth in parallelism with tight control and inspection over credit
quality; boosted retail sales growth; implemented to develop utility-added products and services based
on modern technology foundation; continued implementing focused projects under Information
Technology Development Program; set up Council for prevention and handling of overdue loans and bad
loans; enhanced Debt Settlement Center's role to ensure the most appropriate and fastest settlement of
loans; etc. Moreover, Eximbank has perfected KPI for sales officers and business officers in combination
with a timely emulation and reward mechanism on monthly basis, contributing to stimulate the business
activity development.
The brand promotion has contributed to intensify Eximbank's image and brand value in
domestic and international markets, prominently as “Best Bank in Vietnam” award bestowed by
Euromoney magazine for the second consecutive year, “Strong and Sustainable Enterprises” selected by
Businessmen Cultural Center, “Excellence in International Payments” award presented by The Bank of
New York Mellon, etc.
0.39
0.03
17.38
24.19
0
Target Unit 2013 2014 % up /downagainst 2013
Annual Report 2014
ORGANIZATION AND PERSONNEL
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Being Vice Chairman of the Board of Directors of Vietnam Export Import Commercial Joint Stock
Bank and being assigned as Acting Chief Executive Officer in May 2014 before officially becoming the
Chief Executive Officer in October 2014.
He was attached with Vietnam Export Import Commercial Joint Stock Bank from 2008 to 2012
with the positions of Vice Chairman and Standing Vice Chairman of the Board of Directors.
Appointed in March 2007, and currently being the Standing Executive Vice President of Vietnam
Export Import Commercial Joint Stock Bank.
Holding a Ph.D. of Economics in Finance – Credit, he started working for Eximbank from 1994 and
has made extensive contributions to the Bank's development throughout his 21 years of service. He used
to hold various positions, namely Deputy Director of Transaction Accounting Department, Deputy
Director and then Director of Credit Card Department, Assistant to the Chief Executive Officer cum
Deputy Chief of the Development Project Section, Secretary of the Board of Directors cum Deputy Chief
of the Office of the Board of Directors of Eximbank.
Mr. Pham Huu PhuChief Executive Officer
Mr. Tran Tan LocStanding Executive Vice President
II.2.1 Introduction of the Board of ManagementII.2 Organization and Personnel
Annual Report 2014
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Appointed in April 2004, holding a Master degree of Economics, and currently being the Vice
President of Vietnam Export Import Commercial Joint Stock Bank.
He has been working for the Bank since 1992 and, throughout such 23 years, made lots of
contributions to the development of the Bank. He used to be Deputy Director and then Director of
Treasury Department.
Mr. Dao Hong ChauVice President
Appointed as Vice President in February 2006, then Acting Chief Executive Officer in September
2013 and officially appointed as Chief Executive Officer in December 2013; from May 2014 till now, he is
the Vice President cum Ho Chi Minh City Regional Director of Eximbank.
Holding a Master degree of Economics, he has been working for the Bank since 1993 and making
great contributions to its development during the last 21 years. He used to hold such positions as Deputy
Director and then Director of Credit Department, Director of Corporate Credit Department, Director of
Credit Management Department, and Vice President cum Director of Main Transaction Office No. 1.
Mr. Nguyen Quoc HuongVice President
Annual Report 2014
26
Appointed in December 2007, holding a Master degree of Economics, and currently being the
Vice President of Vietnam Export Import Commercial Joint Stock Bank.
She has served the Bank for the past 24 years and used to hold such positions as Deputy Director
and then Director of Transaction Accounting Department, Director of Corporate Customer Services
Department, Deputy Director of Main Transaction Office No. 1, and Head of Retail Banking Division.
Mrs. Dinh Thi Thu ThaoVice President
Appointed in July 2008, and currently being the Vice President of Vietnam Export Import
Commercial Joint Stock Bank cum Co-Director of Alliance Department.
He has been serving Sumitomo Mitsui Banking Corporation since 1989 and used to be the Senior
Vice President of the Representative Office of Sumitomo Mitsui Banking Corporation in Ho Chi Minh City
from 2005 to 2006.
Mr. Kenji KurokiVice President
Annual Report 2014
27
Appointed in May 2012, holding a Master degree of Economics, and currently being the Vice
President of Vietnam Export Import Commercial Joint Stock Bank.
Being with the bank since 1996, she has greatly contributed to the Bank's development
throughout her 19 years of service. She used to hold such positions as Deputy Director of Credit
Department, Director of Corporate Credit Department, and Head of Corporate Banking Division.
Mrs. Van Thai Bao NhiVice President
Appointed in June 2012, holding a Bachelor degree of Economics, and currently being the Vice
President of Vietnam Export Import Commercial Joint Stock Bank.
He has been serving Sumitomo Mitsui Banking Corporation since 1986. He used to hold such
positions as Vice President of JRI America Company, and Senior Vice President of SMBC America
Information System Division from May 2005 to February 2012.
Mr. Mitsuaki ShiogoVice President
Annual Report 2014
28
Appointed in August 2013, holding a Master degree of Economics, and currently being the Vice
President of Vietnam Export Import Commercial Joint Stock Bank cum North Regional Director.
He has been working for the Bank since 1995 and making different contributions to its
development during the last 20 years. He used to hold such positions as Deputy Manager of General and
Treasury Department of Hanoi Branch, Long Bien Branch Director and North Regional Director.
Mr. Le Anh TuVice President
Appointed in August 2013, holding a Master degree of Economics, and currently being the Vice
President of Vietnam Export Import Commercial Joint Stock Bank cum Central and Highlands Regional
Director.
Having been serving the Bank since 1993, she has greatly contributed to its development in the
last 22 years. She used to hold various positions, namely Manager of International Settlement
Department of Eximbank Da Nang Branch, Eximbank Da Nang Branch Director, and Central and
Highlands Regional Director.
Mrs. Bui Do Bich VanVice President
Annual Report 2014
29
Appointed in September 2013, holding a Bachelor degree of Economics, and currently being the
Vice President of Vietnam Export Import Commercial Joint Stock Bank.
Since his service at Eximbank in 1996, he has been making contributions to its development
during the last 19 years. He used to hold such positions as Deputy Director of Individual Credit
Department, Director of Corporate Credit Department, and Eximbank Tan Son Nhat Branch Director.
Mr. Le Hai LamVice President
Appointed in September 2013, holding a Master degree of Economics, and currently being the
Vice President cum Chief Financial Officer of Vietnam Export Import Commercial Joint Stock Bank.
Starting to work at Eximbank in 1993, he has been dedicating for the Bank's development
throughout his 22 years of service. He used to hold such positions as Deputy Director then Director of
General Accounting Department, and Chief Accountant of Eximbank.
Mr. Nguyen Ho Hoang VuVice President
Annual Report 2014
30
Appointed in September 2013, holding a Master degree of Economics, and currently being the
Vice President of Vietnam Export Import Commercial Joint Stock Bank.
Starting to work at Eximbank in 1992, he has made contributions to its development in his 23
years of service. He used to hold various positions such as Deputy Director then Director of Cash
Department, and Director of Human Resources Management Department.
Mr. Nguyen Quang TrietVice President
Received and appointed in December 2013, holding a Master degree of Economics, and currently
being the Vice President of Vietnam Export Import Commercial Joint Stock Bank.
He used to hold such positions as: Vice President of Dai Cat Hoang Long Joint Stock Company,
Deputy Director of Planning and Investment Department of Saigon Jewelry Corporation, and Vice
President of Saigon Jewelry Company Limited.
Mr. Cao Xuan LanhVice President
Annual Report 2014
31
Appointed in November 2014, holding a Master degree of Economics, and currently being the
Vice President of Vietnam Export Import Commercial Joint Stock Bank.
He used to hold such positions as Head of Operation Division of Sacombank, Chairman of the
Board of Directors cum General Director of Viet Tinh Investment Consulting Co. Ltd., member of the Board
of Directors cum General Director of Viet Dragon Fund Management.
Mr. Nguyen Thuc VinhVice President
Appointed in January 2014, holding a Master degree of Economics, and currently being the Vice
President of Vietnam Export Import Commercial Joint Stock Bank cum Southeast Regional Director.
He joined Eximbank in 2007 and used to hold such positions as Dong Nai Branch Director,
Southeast Regional Director.
Mr. Nguyen Van HaoVice President
Annual Report 2014
32
II.2.2. Changes in members of the Board of Management
1. Mr. Pham Huu Phu: Vice Chairman of the Board of Directors concurrently holding position of
Acting Chief Executive Officer in May 2014 and then Chief Executive Officer in October 2014.
2. Mr. Nguyen Quoc Huong: resigning from the title of Chief Executive Officer in May 2014 and
appointed as Vice President cum Ho Chi Minh City Regional Director of Eximbank in May 2014.
3.Mr. Nguyen Van Hao: appointed as Vice President in January 2014.
4.Mr. Nguyen Thanh Nhung: resigning from the title of Vice President and terminating his Labour
contract with Eximbank in May 2014.
5.Mr. Nguyen Thuc Vinh: received and appointed in November 2014.
No. Full name Position Shareholding ratio (%)
01
02
03
04
05
06
07
08
09
10
Vice Chairman of the Board of Directors cum Chief Executive Officer
Standing Executive Vice President
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President
Vice President
0.0033689
0.0057685
0.0016472
0.0000009
0.0042342
-Appointed as Acting Chief Executive Officer on May 12, 2014 - Appointed as Chief Executive Officer in October 2014
Note
-Resigned from Chief Executive Officer position on May 12, 2014 - Appointed as Vice President on May 12, 2014
Mr. Pham Huu Phu
Mr. Tran Tan Loc
Mr. Nguyen Quoc Huong
Mr. Dao Hong Chau
Mrs. Dinh Thi Thu Thao
Mrs. Van Thai Bao Nhi
Mr. Kenji Kuroki
Mr. Mitsuaki Shiogo
Mrs. Bui Do Bich Van
Mr. Le Anh Tu
0.2008940
II.2.3. Shareholding ratio by members of the Board of Management
Annual Report 2014
33
II.2.4. Human Resources and Personnel Policies
1. Human Resources
Eximbank's total human resource as of December 31, 2014 was 5,728 employees, up 365
employees compared to the early year. From that, Eximbank has maintained a young, dynamic and well-
trained personnel structure, whereby nearly 80% are aged from 18 to 35 and over 77% are holding
graduate and post-graduate degree.
4.70%
14.10%
Graduate College
UnskilledVocational
70.50% 78.80%
19.33%1.87%
Aged 18-35 Aged 36 - 50
Aged over 50
Personnel structure in terms of education level Personnel structure in terms of age
4.60%
11
12
13
14
15
16
17
Vice President cum Chief Financial Officer
Vice President
Vice President
Vice President
Vice President
Vice President
Chief Accountant
0.0023008
0.0001102
0.0000007Appointed on November 24, 2014
Mr. Le Hai Lam
Mr. Nguyen Quang Triet
Mr. Cao Xuan Lanh
Mr. Nguyen Van Hao
Mr. Nguyen Thuc Vinh
Mr. Nguyen Ngoc Ha
Mr. Nguyen Ho Hoang Vu
Appointed on January 20, 2014
No. Full name Position Shareholding ratio (%)
Note
Annual Report 2014
34
2. Personnel Policies
2.1. Officer planning policy
Officer planning at all levels receives particular attention from the Board of Directors and the
Management in order to prepare managing officer cadre, succeeding force for development and network
expansion, as well as to be proactive in human resource management. Eximbank's planning closely
follows guiding regulations of the State Bank of Vietnam (SBV) on implementing the Planning of banking
personnel development for 2011 – 2020 period as approved by the Governor of the State Bank under
Decision No. 219/QD-NHNN dated February 09, 2012.
2.2. Training policy
Eximbank encourages and creates the most favorable conditions for its employees to enhance
their professional competence to satisfy working demands in various forms such as: assigning officers to
short and long term training sessions held locally or overseas by Institutes, Universities, strategic partner,
correspondents banks; supporting tuition fees and facilitating officers' participation in postgraduate and
second-degree training courses relevant to their expertise; sending officers to Seminars, professional
enhanced training courses to satisfy working demands.
Eximbank itself also gives training and advanced coaching on both specialized operations and
banking administration skills to its employees.
In 2014, Eximbank's Training Center organized and coordinated to organize 144 training classes
with 4,355 learners, accounting for 76.5% of total employees of Eximbank's whole network.
2.3. Development of appointment qualifications and officer appointment policy
The enhancement of conditions and qualifications for key officers at Eximbank receives special
interest from the Board of Directors and the Management. In May 2012, the Board of Directors issued the
“Regulation on qualifications of managing officers at Eximbank” with improved conditions and
qualifications for key officer appointment as follows:
- Key officers (holding titles of from Department Director/Manager and higher) are required to
hold graduate degree with major appropriate with the position like: Economics, Finance, Banking,
Business Administration, Foreign Trade.
- Key officers are required to have at least 05 years' work experience in banking industry whereby
at least 02 years of which they hold managing position of from Deputy Director/Manager and higher.
Annual Report 2014
35
Above regulations aim at encouraging or forcing staff and officers to keep on studying and
researching to improve their professional competence, building up managing cadre with satisfactory
qualifications to ensure stability, inheritance and development of the officer cadre, improving business
quality and effectiveness of the units within the network, meeting the Bank's current and future demands
and missions.
Besides, with a view to develop the cadre of managing officers and bankers with high
competence, sense of responsibility and professional ethics, Eximbank has unceasingly improved
recruitment quality; applied reasonable promotion and appointment policies by issuing the “Regulation
on appointment and dismissal of managing officers” to serve as the grounds for the appointment and
dismissal of managing titles.
Furthermore, in order to effectively evaluate business performance, Eximbank has completed
the development of KPI for the titles for implementation in the whole network.
2.4. Remuneration, bonus and discipline policies
Eximbank applies adequate treatment regime attached to business results and working
efficiency via such forms as pay rise, bonus in cash or by cars, etc.
In 2014, Eximbank kept on expanding its policy of giving bonus to sales officers for
outperformance of the business targets. Simultaneously, Eximbank continued perfecting salary
mechanism suitable to each unit and each title, creating momentum for employees and units to strive for
and boost business activities for planned target accomplishment.
2.5. Social and union activities
In 2014, the Trade Union and Youth Union of Eximbank actively executed the activities to care for
spiritual life of staff such as music shows, sports events, professional competitions, etc., which created
ebullient atmosphere and receives response with great enthusiasm from the majority of employees.
Going forward the tradition from the first days of establishment till now, in 2014, Eximbank
continued participating in and contributing to charity and social security activities, namely as programs
of buying health insurance cards for poor patients; “surmounting the fate”; “connecting dreams, crossing
rivers and lakes for learning”; “light of belief”; “for beloved Truong Sa pupils”; sponsoring for the
construction of bridges, roads, medical service units, gratitude houses; supporting scholarship funds,
charity social funds, etc.
Annual Report 2014
36
II.3. Investment in Debt Management and Asset Exploitation Company (Eximbank AMC)
II.3.1. Business characteristics of the company
II.3.1.1. Form of capital ownership
The Debt Management and Asset Exploitation One-member Limited Liability Company
(Eximbank AMC) was established under Decision No. 157/2010/EIB/QD-HDQT dated 21 April 2010 of the
bank's Chairman of the Board of Directors and Decision No. 754/QD-NHNN dated 01 April 2010 of the
State Bank of Vietnam.
Eximbank AMC's Business Registration Certification No. 0310280974 was granted by the
Department of Planning and Investment on 24 August 2010 with the initial registered charter capital of
VND300 billion. The second amendment was made on 08 September 2011, the third on 30 March 2012,
the ninth on 02 April 2014 with the registered charter capital of VND1,700 billion. The paid-up charter
capital as of 31 December 2014 was VND955 billion.
II.3.1.2. Business sector, business lines and main business activities
Eximbank AMC performs these following functions:
- Receive and manage outstanding loans of Vietnam Export Import Commercial Joint Stock Bank
(including secured and unsecured loans) and the collaterals (i.e. mortgaged or pledged assets; debt set-
off assets; assets delivered to the bank by the Court) related to loans for disposal and fund recovery in the
quickest time;
- Proactively sell collaterals under the discretion of Vietnam Export Import Commercial Joint
Stock Bank at market price by such methods as publicly selling by itself on the market; selling through
Asset Auction Service Center; selling to the State's Debt trading company;
- Restructure outstanding loans by such methods as rescheduling, interest rate reduction or
waiver, additional investment, conversion of debts into contributing capital. Handle collaterals by
renovating, repairing, upgrading the same for sale, lease, business exploitation, capital contribution, joint
venture by assets in order to recover the loans. Perform other activities under authorization of Vietnam
Export Import Commercial Joint Stock Bank in accordance with law regulations;
- Buy and sell outstanding loans of other credit institutions, and of the asset management
companies of other commercial banks as stipulated by law.
Annual Report 2014
37
II.4. Number of shares and shareholding structure of Eximbank
II.4.1. Number of shares
As of 31 December 2014, number of shares: 1,235,522,904 shares
Number of transferable shares: 930,717,714 shares
Number of non-transferable shares as regulated at clause 1 Article 56 – Law on Credit Institutions
2010: 304,805,190 shares
II.4.2. Shareholding structure
No. Shareholder Number of shares Shareholding ratio (%)
Major shareholders (owning 5% of charter capital and upwards)
Shareholders owning less than 5% of charter capital
286,574,338
948,948,566
23.19
76.81
Entity shareholder
- Domestic
- Foreign
Individual shareholder
- Domestic
1
- Foreign
761,502,689
449,111,391
312,391,298
474,020,215
471,302,123
2,718,092
61.63
36.35
25.28
38.37
38.15
0.22
Domestic shareholder
2
3Foreign shareholder
920,413,514 74.50
315,109,390 25.50
State shareholders
4 Other shareholders
169,653,821 13.73
1,065,869,083 86.27
II.3.2. Summary of the operation, financial conditions and business results of AMC
Some financial figures of Eximbank AMC as of 31/12/2014:
-Total assets: VND979,083 million
-Owners' equity: VND955,000 million
-Profit before tax: VND12,127 million
-Profit after tax: VND9,663 million
Founding shareholders 0 0
Annual Report 2014
38
II.4.3. Changes in Shareholders' equity
Eximbank did not increase its charter capital in the year 2014.
II.4.4. Treasury stock transactions
On 06 December 2013, Eximbank issued Notice No. 489A/2013/EIB/TGD regarding anticipated
redemption of 11,000,000 EIB shares for treasury stock and on 17/01/2014 Eximbank reported in the
official dispatch No. 156/2014/EIB/TGD the completed buyback of 6,090,000 shares for treasury stock
with average trading price of VND12,853/share by order-matching method and in the official dispatch
No. 157/2014/EIB/TGD the number of outstanding shares with voting right (1,229,432,904 shares).
Number of treasury stocks as of 31 December 2014: 6,090,000 shares.
II.4.5. Other securities: none
Details of major shareholders
No. Name Line of business
Address Number of shares
Holding ratio (%)
01
Commercial Joint-stock Bank for Foreign Trade of Vietnam (Vietcombank)
Banking 198 Tran Quang Khai Street, Hoan Kiem District, Hanoi
101,245,131 8.1902
Sumitomo Mitsui Banking Corporation
Banking 1-2 Marunouchi 1-chome,Chiyado-ku, Tokyo 100-0005 Japan
185,329,207 15
Annual Report 2014
III. REPORTS AND ASSESSMENTS OF THE BOARD OF MANAGEMENT
40
III.1. Assessment on business performance
In 2014, although the business performance dealt with many impediments and challenges,
Eximbank still maintained its growth pace with respect to major targets such as loan balance to
customers growing by 4.6%; funds mobilized from economic entities and individuals increasing by 22.7%
compared to 2013; NPL ratio being curbed at a fairly low rate compared to the whole industry. To create
impetus for sustainable development for credit activity in 2015, Eximbank boldly set aside credit risk
provision, thus the profit after provision for credit losses reached 69 billion VND.
Regarding the governance and administration, Eximbank continued to perform strong and
comprehensive restructuring from the Head Office to Branches, strengthened the sales force,
consolidated and increased customer base, established centralized management models, focused on
developing retail banking activities and electronic banking, upgraded operating quality of the
transaction offices, continuously innovated products and services and set up suitable products to
customers' needs, enhanced service quality, reinforced risk management, tightly controlled credit
quality, boosted brand promotion, etc., which helped gradually surmount the limitations and
shortcomings to further improve business efficiency of the whole network and lay safe and solid
foundation for development in the coming years.
III.1.1. Retail Banking
Retail fund mobilization
As of 31/12/2014, funds mobilized from individual customers reached 65,829 billion VND, rising
by 20% compared to the early year with retail customer base accounting for up to 96% of the total
number of customers, reaching nearly 900,000 individual customers, surging by 18% from the early year.
In 2014, Eximbank structured its funding in the direction of positively increasing the proportion
of medium and long term funding to ensure funding stability and meet the demands for medium and
long term lending.
To achieve such positive results in 2014, Eximbank has always been proactive and timely in its
mobilization policies which are in line with the State Bank of Vietnam's policies and the market trends. In
addition, Eximbank continuously endeavoured to give out better customer care solutions, improved
customers' satisfaction and trust, enhanced and improved product and service quality, made
diversification in combination with modern technology, thus meeting customers' various demands.
Deposit products offered by Eximbank to individual customers are: Online Savings Deposit,
Annual Report 2014
41
Savings Deposit in Installments, Phuc Bao An Savings Deposit, Savings Deposit For Beloved Children,
Truong Phat Loc Savings Deposit, Salary Accumulation Savings Deposit, etc. together with many
attractive, practical and valued promotion programs with multiple utilities such as deposit in one place -
withdrawal in different places, registration for automatic transfer of interest or automatic funds transfer,
etc. as well as Eximbank VIP service with many prominent privileges and priority servicing by Eximbank.
Retail credits
In 2014, Eximbank continued to attach special importance to and shift its strong investment in
the retail credit market and considered it as the focused market share for the year. With prudent policies
concentrating on the group of individual customers with stable income and renovation of products and
services suitable to the market, Eximbank boosted lending to key and stable product groups such as
lending for purchase of houses, means of transport (cars), production and business, etc. As of 31/12/2014,
total outstanding retail loans reached 30,426 billion VND, up 5 % compared to 2013, accounting for 35%
of the total loan balance of the whole network.
With the policy of transforming to enhance retail credit development, Retail Banking Center
which is directly under the Chief Executive Officer was established in August 2013 to concentrate and
strengthen Head Office's role in retail banking activities, and improve business efficiency of the units in
the whole network of Eximbank.
Loan balance structure by products (%)
25.3% 31.4%
38.8% 2.6%
2.0%
House Cars
Overseas Studies Others
Production & Business
65%
35%
Retail credit balance proportion against the whole network in 2014 (%)
IndividualCorporate
Annual Report 2014
42
Card issuance and acquiring
In 2014, total number of cards issued reached 170,000 cards, raising the total number of issued
cards to 1.5 million cards, increasing by 13% compared to 2013. Card use volume reached 17,500 billion
VND, growing by 13% compared to 2013.
Eximbank's merchant network achieved 3,000 units with nearly 6,000 POS's and 260 ATMs
distributed in major locations nationwide. Total acquiring volume during 2014 through such channels
was quite satisfactory with 12,600 billion VND, up 15% over the same period last year.
Presently, Eximbank has connected to the ATM, POS system with all banks in the 2 big card
alliances in Vietnam (Smartlink, Banknet) and diversified types of businesses accepting card payment to
satisfy customers' needs for card use.
In addition, with an aim to better care customers, Eximbank has implemented many preferential
and promotional programs with multiple forms and diversified substance. In 2014, Eximbank launched
many products and services, increased facilities and customer care programs, prominently as MasterCard
Passbook credit card, Visa VioletCard credit card products, mPOS card payment service via mobile phone,
expanded online portal network accepting Eximbank cards, and enhanced card utilities on Internet
Banking, etc.
Services
* Payout of inward overseas remittance:
In 2014, Eximbank focused on building a solid foundation for the development of inward
overseas remittance service, promoted cooperation with many partners in key remittance markets and
large domestic remittance companies, diversified payout channels to increase the utilities and expand
remittance payout network, and strengthened remittance partners' support to promote Eximbank's
service in overseas markets.
Inward overseas remittance markets are mainly traditional ones such as USA, Germany,
Singapore, Australia and Japan.
For market development, Eximbank last year cooperated with new remittance partners in such
markets as South Korea, Japan, USA, Russia and Eastern Europe to facilitate customers' easy and fast
receipt of money transferred to from overseas by relatives.
Besides, Eximbank also expanded new remittance payout channels whereby customers
receiving money via Eximbank can choose the most convenient form of receipt, including cash pickup at
Annual Report 2014
43
counters, transfer to account, home delivery or through Eximbank's agents.
* Outward overseas remittance:
Total outward overseas remittance volume of retail customers in 2014 increased by 32% against
2013, fulfilling 107% of 2014's plan. Of which, overseas study remittance volume accounted for 74% of
total outward overseas remittance volume, surging by 20% compared to 2013. The largest remittance
market is the US, followed by Australia, Canada, England, etc.
During the year, Eximbank also further deployed express remittance channel from Vietnam to
overseas through MoneyGram to meet customers' needs for fast money transfer.
* Besides, Eximbank also provided a diversity of other services for individual customers such as:
Fingerprint service, Inward and outward domestic money transfer service, Bill payment for electricity,
water, telephone, cable TV, Internet, and air tickets, and Gold custody service.
III.1.2. Corporate Banking
Corporate fund mobilization
In 2014, the State Bank of Vietnam (SBV) regulated monetary policy in a flexible way aiming at
supporting the banking operations and the economy. Specifically, SBV had revised down the ceiling
deposit rate with respect to both VND and USD by 0.5 % p.a. - 1.5 % p.a. for each term and each different
currency.
For more sustainable and efficient increase of liquidity, Eximbank focused on growing the
funding sources, reasonably changing the mobilization structure of each term and increasing customers'
payment cash flow balance. Consequently, the fund mobilization from economic entities last year
achieved a good growth rate of 28% at the end of 2014.
Corporate customer services
Performing the goals of diversified development and increase of the proportion of service
income over the total income structure, last year, Eximbank achieved the service income growth rate of
about 20% and significant rise of transaction volumes, improved cash management services, focused on
increasing customer base using services of Eximbank's advantages such as collection at counters,
collection at designated locations, automatic payments through Internet Banking system, and batch
payments as per lists provided by customers, and improved services relating to specialized securities
trading accounts, etc.
Annual Report 2014
44
In addition, with the motto of perfecting products and services to best meet customer demands
while ensuring conformity with stipulations of laws and the State Bank, Eximbank has frequently
reviewed the existing products and services, simultaneously updated, built, and launched new products
and services such as margin deposit service for corporate establishment, current account innovation,
indirect and direct investment capital account, etc.; connected and cooperated with other partners such
as banks, groups, and large corporations domestically and overseas in order to diversify products and
services, as well as increase transaction volumes and cash flow.
Corporate credits
Lending to corporate customers had posted positive developments with outstanding loans
growing by about 5%, loan balance structure by industry being allocated properly and credit quality
being improved.
With advantage of export and import financing, Eximbank has implemented various lending
programs aiming at supporting enterprises to easily approach capital sources with preferential interest
rates to carry out export and import orders in a fast and convenient manner and at reasonable cost.
Giving special importance to developing small and medium enterprises lending, through the
review of loan programs for small enterprises, introduction of loan products with simple procedures,
establishment of fast document handling procedures to timely meet customers' capital demands, the
proportion of loans granted to small and medium enterprises over the total corporate customer loans
consequently increased during last year.
In addition, in response to the policies and directions of the State Bank, Ho Chi Minh City People's
Committee, and the State Bank - Ho Chi Minh City Branch, Eximbank actively participated in
implementing numerous credit packages to facilitate businesses to approach capital sources at
preferential interest rates, typically as the loan program of connecting Banks - Enterprises in Ho Chi Minh
City, loans to market stabilizing enterprises or to those companies that provide commodities or
participate in the distribution network of stabilizing enterprises, loans for the nation's rice temporary
storage program and agricultural and rural credit programs.
Under the context of increasingly fierce competition in the banking sector, it is very essential to
care basic and traditional customers, especially corporate ones. Eximbank has set up professional and
highly qualified relationship managers (RMs) to support and consult on financial solutions for customers
in an efficient and timely manner. Customer relation force with better training on both knowledge and
skills will be the pioneer cadre in caring and developing the customer base as well as promoting
corporate banking in the coming time.
Annual Report 2014
45
International settlement
Eximbank is one of the banks having quite large market share in international settlement,
advantages from a worldwide correspondent network with nearly 900 correspondent banks stretching
over 80 countries, good service quality and high competent human resources, bringing satisfaction to
customers throughout the network, which contributed to the growth in export and import settlement
volume in 2014, reaching 5.86 billion USD, rising by 19% compared to 2013, of which export settlement
volume gained 2.65 billion USD, increasing by 18.63% and import settlement volume reached 3.21 billion
USD, growing by 18.53% y-o-y.
III.1.3. Capital Trading
In 2014, the State Bank regulated the monetary and exchange rate policies in the direction of
boosting economic growth. Accordingly, interest rates were governed in a downward trend, exchange
rates were stable, credit growth was in parallel with bad debt resolution, and some weak banks were
restructured, ensuring to maintain a safe banking system. The whole sector credit growth despite
achieving its objectives still had quite big gap compared to fund mobilization growth, thus the liquidity
surplus continued to occur in the banking system, and the interbank interest rates were maintained at
low level.
Not being out of the common trend of the sector, Eximbank, although its profits and some targets
were not up to expectation, with its prudent operating policy in accordance with the State Bank's
orientations, has made significant innovation and perfection in the capital trading and management
activity through:
- Developing and upgrading the fund transfer pricing system towards centralized risk
management at the Head Office to create a solid foundation to promote business activities for the
banking units nationwide, enabling a smooth and transparent capital management system.
- Capturing and well exploiting market opportunities, maintaining capital balance to be in line
with capital supply and demand, ensuring the harmony among the capital liquidity, safety and business
efficiency for the whole network of Eximbank.
- With the award “Best Bank in Vietnam” voted for the second consecutive year by Euromoney
magazine, Eximbank's reputation continued to be asserted both in Vietnam's and Asian financial markets.
Beside reinforcing existing international relations, Eximbank has incessantly extended its relations with
new partners, especially in fund mobilization for the objective of not only satisfying business demands
but creating impetus for future great growth as well.
Annual Report 2014
46
Transaction figures in 2014
Volumes
VND (billion VND) 557,174
USD (million USD)
Target 2013 2014 (+)/(-) against 2013
III.1.4. Foreign Currency Trading
Leveraging existing advantages in export and import activities, 2014 continued to be a year
when Eximbank showed its flexibility and diversity in foreign exchange products offered to customers.
The proactive approach, service quality enhancement, and flexible adoption of foreign exchange trading
operations were paid with special focus in the whole network to fully meet customers' foreign currency
demands for payments.
The year 2014 also marks modern improvements and strong development in the administration
of internal trading system in foreign currencies. Online trading system which was studied, fully developed
and put into use, helped enhance the efficiency, save time, and mitigate risks for the whole network. The
ongoing training process in combination with succession has helped constantly improve and perfect the
professional competence of trading officers in accordance with international standards and in line with
Vietnamese market conditions.
That total foreign currency trading volume of 2014 increased by nearly 50% compared to 2013,
completing over 130% of the proposed plan showed rising competitiveness of Eximbank in foreign
currency trading, laying a foundation for growth in 2015 and subsequent years.
Target 2014 % of increase compared to 2013 % of plan in 2014
Foreign currency buying/ selling volume 57 + 50 % + 130 %
Unit: billion USD
461,808 -17.2%
14,455 14,622 +1.2%
Annual Report 2014
47
III.1.5. Gold Trading
Vietnam's gold market has undergone stable operation under the management of the State
Bank. Only qualified units being licensed by the State Bank are able to trade in gold bars. As a unit being
licensed by the State Bank to sell and purchase gold bars, in 2014, Eximbank focused on promoting retail
gold selling activity with the motto of best meeting customers' purchase and sale demands in areas
where Eximbank's banking units are located, and improving the customer service quality.
Achievements gained in 2014: Retail gold sale volume increased by 14% compared to 2013,
reaching 5.1 million taels.
III.1.6. Financial Investment
In 2014, although Vietnam's economy was still exposed to difficulties, stock market saw fairly
good growth rate, especially bond market experiencing outstanding growth and high liquidity,
facilitating the bond investment activity of credit institutions in general and Eximbank in particular.
For bond investment, Eximbank concentrated on investing in those enterprises with business
efficiency and high prestige in the market, and good rate of return. Therefore, although the interest rates
in 2014 continuously decreased, the bond portfolio was still effective and made not a small contribution
to Eximbank's profit.
The bond portfolio balance at the end of the period reached 14,082 billion VND (excluding
treasury bills and VAMC bonds), which was a significant growth (25.3%) compared to 2013.
III.1.7. Customer Base Development
Eximbank's customer base has kept its fair growth pace thanks to incessant efforts in setting up
professional sales force, improving servicing quality, and innovating products and services. Total number
of customers of Eximbank as at end of 2014 nearly reached 939 thousand customers, growing by 18%
compared to 2013. Of which:
Retail customers accounted for 96%, increasing by 18.2% from the early year (or 138 thousand
customers).
Corporate customers made up 4%, rising by 14.2% from the early year (or 5 thousand customers).
III.2. Financial conditions
III.2.1. Assets
In 2014, although total assets decreased slightly by 5% compared to 2013, Eximbank's funding
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48
and fund use structure was improved in a good way: funds mobilized from the primary market growing;
funds raised from the secondary market being contracted; loan balance increasing; and NPLs being
controlled at 2.46% of total loan balance.
Customers' deposits expanded sharply. Funds mobilized from economic entities and residents as
at 31/12/2014 reached 101,380 billion VND, rising by 18,730 billion VND or 22.7% compared to the figure
of 82,650 billion VND of the same period last year. Due to and loans from other credit institutions shrank
from 65,766 billion VND to 41,043 billion VND. The replacement of interbank borrowings by deposits
made the funding structure more stable and solid, laying a basis for medium and long-term loan growth
and customer base increase.
As loan balance as of the end of 2014 increased by 4.6% compared to the end of 2013, from 83,354
billion VND to 87,147 billion VND and funds mobilized from economic entities and residents had good
growth, loan-to-deposit ratio was brought down to 86%, aiming to enhance capital adequacy standards.
Eximbank has also focused on retail activity with professional and dynamic sales team so as to increase
the loan balance and achieve higher profits with less risk.
In 2014, Eximbank diversified its investment portfolio for various purposes. Of which, investment
in government bonds ensured not only the profitability target but also the liquidity reserve as stipulated
by the State Bank; investment in bonds issued by credit institutions and enterprises is for generating
profits.
Eximbank continued aiming at the objectives of safety, financial capability enhancement,
efficient fund management and use, contributing to sustainable growth and development.
III.2.2. Credit Quality
At the end of 2014, Eximbank's NPL ratio was 2.46%, increasing by 0.47% compared to early 2014.
Increase in bad loans of Eximbank was primarily due to its customers' dealing with difficulties in prior
years, whereby Eximbank had implemented debt restructuring to support customers to overcome
obstacles on the basis of compliance with the State Bank's stipulations; however, customers' business still
had no sign of improvement. Therefore, Eximbank had to carry out debt re-classification to properly
reflect its credit quality.
III.3. Improvements in organization structure, policy and management
III.3.1. Network Development
In 2014, Eximbank put into operations 2 more Branches (Kien Giang and Binh Phuoc) and 1
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49
more Transaction Office (Nam Phuoc Transaction Office belonging to Quang Nam Branch), and
terminated operation of 1 Transaction Point (Tang Bat Ho Transaction Point belonging to Dong Da
Branch). As of 31/12/2014, Eximbank's operation network comprised of 208 banking units (including 44
Branches, 163 Transaction Offices, and 01 Savings Fund).
TimeNetwork
2009 2010 2011 2012 2013 2014
MTO/Branch 38 40 41 42 42 44
Transaction Office/Savings Fund/Transaction Point
102 143 161 164 164 164
Total 140 183 202 206 206 208
III.3.2. Risk Management
Being aware of the risks that may arise from changes and challenges in today's economic
environment, in 2014, Eximbank continued setting up and perfecting its risk management model at all
management levels of from the Board of Directors, Board of Supervisors to the Management and
Divisions in three aspects: organization structure, policy, procedures, internal regulations and executing
personnel in line with the scope and orientations of the business activities, and prepared for
implementation of Basel II at the Bank.
In terms of organization structure, at the Board of Directors level, Eximbank supplemented
personnel to the Risk Management Committee comprising of foreign members with mastery of
international risk management standards and Vietnamese members with deep insight of characteristics
of risks in Vietnamese market.
At the Management level, the Bank kept on building, consolidating and increasing the scope of
operations of the risk management units according to the independent model advised by SMBC,
comprising of the following departments: Credit Risk Management, Market Risk Management, and
Operational Risk Management.
There was always constant and timely exchange of information between the two levels of risk
management to ensure that risks were fully identified by all persons in-charge. Simultaneously, units
under the Management level regularly consulted Risk Management Committee on necessary
adjustments in risk management policies and processes as well as risk appetite.
Situation of Eximbank's network development during 2009 –2014 period:
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50
The risk management at Eximbank is performed with respect to credit risk, liquidity risk, market
risk and operational risk.
III.3.2.1 Credit risk management
In 2014, Eximbank centralized the credit risk management through the appointment of Regional
directors, and establishment of regional offices to support the appraisal and approval of credit granting
to units throughout the network.
Credit monitoring activities were intensified. Eximbank implemented strict control over
performance of credit granting conditions before disbursement, and frequently reviewed credits
granted and security assets to timely assess its credit quality.
Eximbank focused on managing the concentration risk in credit activity. The granting of credits to
groups of customers was cautiously appraised and approved. Eximbank established credit limits by
economic sectors and target customers, and performed regular assessment and control.
The credit scoring system is the basic tool to assist in managing credit risks. In 2013, Eximbank put
this system into operation in order to support the credit granting approval and credit risk management.
Eximbank continued evaluating and adjusting the credit scoring system to ensure the classification of
customers' repayment capacity and using it as an official tool in its risk management activity.
III.3.2.2 Liquidity risk management
Liquidity is a crucial factor for financial institutions. Most of the failures of financial institutions
occurred largely due to failing to ensure their liquidity. To prevent and cope with issues relating to
liquidity risks, Eximbank set up a system of full and prudent internal regulations and procedures on
liquidity risk management in line with standards of the whole industry, with stipulations on solvency
management and on prudent ratios in operations by the State Bank, and with Eximbank's business
characteristics. The stress-test model was applied by Eximbank to forecast cases the Bank might
encounter problems of liquidity risk, and to offer the most optimal provisional treatment options
accordingly.
III.3.2.3 Market risk management
(i) Interest rate risk management: For timely response to and handling of interest rate risk,
Eximbank researched, built and implemented a risk management model: Gap in asset-liability
revaluation period (interest rate GAP technique), interest sensitivity ratio (ISR), interest rate risk
assessment by the net present value method with respect to interest-sensitive items (NPV). Eximbank will
Annual Report 2014
continue to research, build and enhance the internal regulation system including the Regulation on
interest rate risk management to ensure safe business operation of the Bank in compliance with relevant
stipulations of the State Bank, as well as gradually approach international practices in the future being
Basel II International Treaty.
(ii) Exchange rate risk management: To manage exchange rate risk, Eximbank researched, built
and promulgated regulations on policy, transaction limits, foreign exchange risk measuring and control
instruments, and launched derivative products with the aim of preventing issues resulted from exchange
rate risks.
(iii) Investment price risk management: To manage investment price risk, Eximbank
implemented portfolio measurement and assessment methods at market price, and set up limits for
investment price risk (e.g. securities investment limit, stop loss limit, risk provisioning limit, etc.) in line
with the Bank's objectives and business strategy from time to time.
III.3.2.4 Operational risk management
i) Internal fraud-related risk management:
- Eximbank issued internal regulations and conditions for the appointment of leadership
positions, and credit officers in the officer appointment task, which was centralized to Head Office only,
while Branches and Regions had no authority;
- Eximbank always considered evaluating the officer capability of each branch and transaction
office to assign appropriate credit approval and valuation authority;
- Segregating the functions of sales officers and credit appraisal officers by credit processes;
- Issuing new regulations on risk management, enhancing the role of internal control system, etc.
In addition, the inspection and supervision were frequently carried out by Internal Inspection
and Control Teams at branches so as to mitigate risks such as credit, international settlement, accounting,
cash, and card operations;
ii) Risk management relating to operational interruption and errors in information
technology system: Eximbank conducted the construction of a backup Data Center in Binh Duong and
set up business continuity plan upon occurrence of incidents such as responses to liquidity and
information technology incidents, and information crisis treatment;
iii) Risk management in connection with products and services: Eximbank issued regulations
and guidance on the implementation procedures for each specific product and service, focused on
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52
training new employees, ensured cross inspection and control in operations, established and managed
approval limits on the trading systems in line with new models of business activities and risk limits, and
promoted the role of internal control system;
iv) External fraud-related risk: Eximbank has always attached special importance to customer
due diligence, strictly performed operational procedures for each product and updated risk-related
information for warning the network;
v) Money-laundering risk management: Eximbank implemented anti-money laundering
system for monitoring and preventing fraudulent and suspicious transactions;
In the forthcoming time Eximbank will establish operational risk management policy aiming to
perfect the construction of evaluating and ranking method over branches; Develop tools to collect,
analyze and manage operational risk-related losses; Assess by its own the risks and the control barricades;
and Provide key risk indicators (KRI) to identify potential changes in internal and external environment.
III.3.3. Information Technology System
With the objective of building a modern and versatile bank on ground of state-of-art technology,
the Information Technology (IT) system of Eximbank in 2014 continued to be perfected and developed
with the following accomplishments:
(1)Eximbank's IT system is well-equipped with modern devices and regularly upgraded to meet
the Bank's business requirements. In 2014, Eximbank kept on accelerating the implementation of key
projects in the IT Development Program so as to satisfy the requirements of the business development
strategy in the period of 2011 – 2015 and visions up to 2020, specifically:
- Korebank replacement project: The project bidding was completely implemented. The
selection of world-leading Corebanking solution is the opportunity for Eximbank to take advantage of
the strengths of the same to deploy modern banking services, creating differentiates for products and
services, shortening time for product launch to the market, meeting international standards, and
enhancing the competitive position. In addition, the implementation of new Corebanking system will lay
a solid foundation, and also an opportunity to restructure the IT system, transform the current IT system
model to a new one with a strong and sustainable IT infrastructure platform aiming at the objective of
creating breakthrough in technology, well meeting and being a supportive motivation for the Bank's
business development requirements;
- Eximbank entered into an Agreement with Schneider Electric IT Vietnam to implement the
construction of a modern Data Center meeting international standards and the State Bank's
Annual Report 2014
requirements.
(2)Key systems of the Bank are under stable operation. Recently developed systems such as Card,
Internet Banking, Mobile Banking, Authentication, etc. systems are developed on strong and flexible
technical platform, meeting the Bank's needs for business expansion.
(3) With the business strategy of focusing on boosting retail banking, Eximbank had established
Electronic Banking Department to push diversified development of products and services on online
transaction channels, gradually making these services be advantages of Eximbank. After more than one
year of implementation, the number of customers using eBanking services increased significantly,
specifically as: The total number of customers using e-banking services rose by 19 % compared to 2013;
The total net income of the e-banking services increased by 10 % compared to 2013.
(4) Eximbank officially established IT System Security and Safety Center under IT Division
specializing in information security and safety to strengthen network information security and safety in
the new situation.
(5) Continued reviewing and setting up security policy with respect to transaction systems such
as hiring an independent consulting unit to assess the technical gaps and weaknesses of Internet
Banking and Mobile Banking systems to ensure security, safety and confidence for customers upon using
eBanking services of Eximbank.
(6) Eximbank established IT development strategy for 2015 to 2020 with the main development
objectives as follows:
- To successfully implement new Core Banking system and complete the construction of modern
Data center meeting international standards. To accomplish the transformation of existing IT system to a
new one, build strong IT infrastructure, serving as the premise for breakthrough development in IT
technologies and services.
- With the orientation of keeping on developing a strong IT system to support retail business
strategies through differentiates and diversification of products and services, intensification of
application level of banking technology, and reinforcement of customer relations through data analysis,
as well as technology application to optimize business costs. On the basis of modern IT platform, to
improve the system of applications in the direction of serving for business development demands,
administration and governance, risk management and compliance; enhancing eBanking product and
service quality; increasing customer satisfaction index; and raising the number of existing customers
using Eximbank's electronic banking services.
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54
- To promptly perfect the safety and security system in technical aspect, enhance the risk
management and compliance in the field of security and safety, and protect the engineering
infrastructure safety against risks from attacks of high-tech crimes.
- To perfect the organizational structure, standardize internal procedures related to IT system to
improve the management efficiency and transparency in Eximbank's IT system management.
The achievements of IT system in 2014 serve as the premise to move forward with the IT
development strategy for 2015 to 2020 and contribute to the business operations in accordance with the
Bank's general strategy.
III.3.4. Training and Human Resources Development
In a market economy, competition by products and services is only one side of the issue. The
important and core issue of competition having vital meaning to the bank's operations is the competition
by personnel and wisdom. Therefore, the training for human resources has always been a matter of
Eximbank's interest.
Eximbank's training activity aims at fostering and enhancing employees' skills and operational
competence, updating with new knowledge about modern banking, experiences of international
administration and governance to meet increasing requirements in banking activities. There are several
levels of training at Eximbank such as: Training managing officers of various levels, training operational
staff and training new employees.
Besides, Eximbank also encourages and motivates officers and staff to get training by themselves
or assigns them for training for enrichment of skills and operational competence in many forms such as
sending employees to short and long-term training courses domestically and overseas organized by
institutes, universities, and strategic partner. Eximbank also supports part of tuition fee and facilitates in
terms of time for employees to participate in postgraduate, and second-degree training courses related
to their profession.
In 2014, Eximbank's training activity focused on 02 key areas as Training to Standby Branch and
Transaction Office Directors and Training to sales officers. Additionally, the coaching and fostering on
operations and update of new knowledge had received much interest. Training results were as follows:
Eximbank held 144 training classes with 4,355 learners, accounting for 76.5% of the staff and officers
entitled to training.
In the forthcoming time, Eximbank's training activity will continue to aim at training standby
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55
Branch and Transaction Office Directors, Operational Department Managers at Branches, intensively
training sales officers in order to improve skills and operational competence for employees, and creating
the succeeding human resources. Besides, SMBC's support in training activity shall also be taken
advantage to learn and grasp modern banking skills and operations to serve for Eximbank's business and
development in future.
III.3.5. Cooperation with Foreign Strategic Shareholder
With its commitment to make long-term investment in Vietnamese market, in 2014, SMBC always
accompanied and supported Eximbank in funding and training, helped to increase risk management and
corporate governance. In order to promote each party's advantages, SMBC and Eximbank has
established Vietnamese – Japanese enterprises matching mechanism, referred counterparties and
provided financial services to customers.
Persistent with the objective of supporting Eximbank to expand Retail Banking market share and
further boost corporate banking business, SMBC has seconded and assigned officers to work at Eximbank
to along with Eximbank develop information technology infrastructure, research for innovation of key
consumer loan products, cash management service, and strengthen export-import financing products
being Eximbank's traditional advantage.
III.3.6. International Relations
In 2014, Eximbank's international relation activities were carried out in way of proactively
reviewing and reinforcing the cooperation with long-term partners, while continuously searching for,
proposing and conducting cooperation with new partners in various markets, especially emerging ones.
As at end of 2014, Eximbank had relations with nearly 900 Swift codes of banks/banks' branches in nearly
80 countries worldwide.
With such a large correspondent bank network and thanks to the proper and reasonable policy as
aforementioned, in 2014, Eximbank received significant assistance from valued partners in credit limits,
operations, training, etc., contributing to enhance its financial capabilities and ability of products and
services supply of Eximbank to meet diversified needs of customers.
Besides, with advantages as an export import bank, in recent years, more and more local and
foreign banks have approached and requested Eximbank to act as the confirming bank for their
commercial transactions, affirming rising prestige and position of Eximbank in international settlement
activities.
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56
In addition to enhancing cooperation with partners as international banks and organizations,
Eximbank also paid special attention to brand name promotion in international markets by applying for
awards of prestigious international magazines and organizations. Thanks to that, in 2014, Eximbank
honorably received the Best Bank in Vietnam award for the second consecutive year by Euromoney, a
leading magazine of Euromoney Institutional Investor PLC which is based in London. This award has
encouraging meaning, making Eximbank more steady and confident to further bring its brand name
forward.
III.4. Business plan for 2015
The Vietnamese economy in 2015 is forecast to keep facing with challenges, so the objectives set
out by the National Assembly include: strengthening macro-economic stability, unwinding difficulties
for business activities; strongly carrying out strategic breakthroughs, restructuring the economy in
association with transforming the growth model, and improving efficiency and competitiveness so as to
achieve higher growth than in 2014. According to which, some key targets are as follows: Gross Domestic
Product (GDP) to rise by around 6.2%, Consumer Price Index (CPI) by about 5%, total export turnovers by
about 10%, trade deficit against export turnovers to be approximately 5%, and total investment funds for
social development to be equal to 30% of GDP.
State Bank of Vietnam defines its objectives and management solutions towards monetary
policies in 2015 in way of actively and flexibly regulating monetary policy instruments to control inflation,
stabilizing the macro economy, supporting economic growth at a reasonable level, ensuring liquidity
safety of credit institutions; managing interest rates and exchange rates in line with macro-economic
progresses; and expanding credits in parallel with credit quality control. Concretely:
- Total means of payment to rise by about 16-18%
- Outstanding credits to increase by about 13%-15% and be adjusted in line with actual
situations.
- Carry out measures of credit regulation in way of expanding credits in parallel with controlling
credit quality; focus on unwinding difficulties for enterprises in approaching credit funds to serve for
business and production development; keep on implementing programs of attaching bank credits to
economic industry policies, shifting credit structure to concentrate loans on prioritized sectors as per the
Government's guidelines.
- Attach bad debt handling to banking system restructuring, ensuring strict compliance with the
roadmap of the Plan of restructuring the Credit Organization system for 2011-2015 period as approved by
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57
the Government's Prime Minister.
Starting from the State Bank's orientations in regulating the monetary policy in 2015 and
Eximbank's business performance in 2014; upon assessing its own internal strengths as well as
advantages, keeping consolidating and enhancing its position in both domestic and international
financial markets, the Board of Management has defined the focused targets and missions in 2015 as
follows:
* Plan of liabilities – fund use
Target 2015's plan Increase against 2014
Fund mobilization
Credit exposure
126,000
108,750
24%
11%
* Plan of service development (international settlement, inward overseas remittance and FX trading
volumes, number of cards, card payment volumes, card using volumes) to increase by 20%-30%
compared to 2014.
* Plan of profitability
- Profit before tax: 1,000 billion VND.
- Tentative dividends: 4.8%.
Unit: billion VND
Annual Report 2014
IV. EVALUATIONS OF THE BOARD OF DIRECTORS ON THE BANK'S OPERATIONS
59
IV.1. Evaluations of the Board of Directors on operational aspects of the Bank
In 2014, the State Bank flexibly and simultaneously regulated its monetary policy instruments to
fit with the objectives of controlling inflation, stabilizing the macro-economy, supporting economic
growth at a reasonable level, and ensuring liquidity of credit institutions and the economy in line with the
Government's guidelines. Average lending interest rate kept going downward; credit growth reached
the target as set out in the plan. Credit structure moved in a positive direction, focusing on production
and business areas, especially prioritized ones as directed by the Government. Average deposit rate
decreased by 1.5%-2% p.a., and lending rate decreased by about 2% p.a., causing average rates lower
than those in 2005-2006 period. Fund mobilization increased by 15.15%, FX market basically remained
stable, the process of restructuring the credit institution system was going forward in accordance with
the approved Plan, and bad debt settlement solutions had been drastically deployed, etc. The monetary
policy had close link with other macro-economic policies, especially the fiscal one, ensuring the
objectives of inflation control, macro-economic stabilization, and reasonable support to economic
growth.
On its own side, Eximbank strictly followed the State Bank's guidelines, actively shared difficulties
with borrowers through cutting down lending rates, offering different credit packages to facilitate
enterprises to approach funds at preferential rates, or concentrating credit funds on prioritized areas, etc.
In addition, Eximbank continued to enhance management capabilities, strengthen the organization
model, structure the mobilized funds in a more stable and sustainable way, tightly control credits, and be
determined in bad debt resolution, perfect policies, procedures and regulations with respect to all
operational areas to maintain stable businesses, and ensure liquidity and operating safety.
Total assets: 161,094 billion VND, fulfilling 95% of the plan
Funds raised from economic entities and individuals: 101,380 billion VND, fulfilling 101% of the
plan
Total credit exposure: 97,956 billion VND, fulfilling 100.7% of the plan
Of which, loan balance: 87,147 billion VND, fulfilling 97% of the plan
Non-performing loans: 2,144 billion VND, taking up 2.46% of total loan balance
Profit before tax: 69 billion VND, fulfilling 3.8% of the plan
ROA: 0.03%
ROE: 0.39%
Annual Report 2014
IV.2. Evaluations of the Board of Directors on operations of the Board of Management
Business performance in 2014 was noteworthy result achieved by the Management in executing
the guidelines of the Board of Directors. Eximbank had fulfilled some basic targets, of which the most
important ones were to maintain stable and sustainable customer base and business operation.
During last year, under the context of tough business environment, Eximbank's Board of
Management endeavoured to bring the whole network to overcome the obstacles, sustain and stabilize
business activities, which was reflected via some operating results such as: targets of fund mobilization
and loan balance keep increasing compared to 2013; total funding structure becoming more and more
sound and stable whereby the percentage of funds mobilized from the primary market over the total
assets surged to 63% as at end of 2014 from 49% in 2013, while funds mobilized from the interbank
market declined to 25% in 2014 from 39% in 2013; credit growth being boosted through approaching
large projects, promoting the strengths of corporate lending; customer base being consolidated and
amplified on the basis of increasing retail loan balance by setting up suitable products and professional
sales force; bad loan handling being pushed and NPL ratio being controlled at below 3%; banking
services also gaining good growth rate of more than 20% compared to 2013; business model being
transformed to fit with economic conditions with such solutions as: restructuring the organization model
from Head Office to branches, streamlining operating apparatus, focusing resources on sales force;
improving operating quality of transaction offices for better competitiveness to expand market shares,
etc.; and gradually remedying outstanding issues to take firm and solid steps.
IV.3. Plans and orientations of the Board of Directors
The Board of Directors has agreed with the Board of Management on the business plan for 2015
with key operating targets being: total assets to reach 180,000 billion VND, rising by 12% compared to
2014; funds raised from economic entities and individuals to reach 126,000 billion VND, rising by 24%
compared to 2014; credit exposure to reach 108,750 billion VND, rising by 11% compared to 2014; NPL
ratio to remain under 3%; and profit before tax to achieve 1,000 billion VND.
In order to achieve such objectives, Eximbank defines for 2015 the orientations of keeping
perfecting the business model, enhancing financial capabilities, developing infrastructure – technology,
improving the quality of senior managers and staff, focusing on “customer service quality enhancement”
through improving service quality, servicing attitude, as well as customer care policy. By such, Eximbank
should carry out the following solutions:
60 Annual Report 2014
- Set up suitable policies on products and interest rates to facilitate business units to grow loan
balance right from the early year; pay special attention to small and medium enterprise and retail
customer segments.
- Boost up service payment operation through some activities as follows: developing new
products and services; raising income from major service operations like international settlements, card,
etc.
- Improve the operation quality of AMC to ultimately and effectively exploit the debt set-off
assets; and realize the same for fund recovery.
- Promote technological developments, and facilitate to develop hi-tech products and services
which are breakthrough and distinctive of Eximbank.
- Continue implementing the projects of corebanking replacement and modern data center
construction meeting international standards.
- Expand the operation network in correspondence with the State Bank's stipulations, and
restructure the existing network to increase the performance of branches and transaction offices.
- Continue investing in infrastructure to serve for business activities on grounds of enhancing
Eximbank's presence at major economic regions within the country.
- Continue establishing and perfecting the reward and treatment policies to employees in order
to attach their benefits with the business results achieved.
- Strengthen training, especially training to leaders and sales officers.
- Establish Operational Division in order to standardize the Bank's operational procedures
according to domestic and international standards.
- Restructure the organization model from Head Office to branches in way of refining the
operating apparatus, improving productivity, and rotating personnel for supplementation to the sales
forces.
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V. CORPORATE GOVERNANCE
63
Mr. Le Hung DungBoard Chairman
V.1. The Board of Directors
V.1.1. Members and structure of the Board of Directors
The Board of Directors consists of 9 members: 1 Chairman, 6 Vice Chairmen, and 2 members.
Mr. Le Hung Dung was born in 1954 in Tan My, Cho Moi, An Giang. He used to study at Hanoi
Foreign Language University, Prague Foreign Language University (Czech), and graduated with
Advanced Level in Politics from Ho Chi Minh City Officer School (Southern National Academy of Politics
and Public Administration), with intermediate level in Political theory and youth mobilization from Hanoi
Central Union School.
From 1986 to 2003, he used to take the positions of Deputy Director of Festival Restaurant
(Vietnam Youth Tourism Centre), Director of Vietnam Youth Tourism Centre, Chairman of Vietnam Youth
Tourism Single Member Limited Liability Company. From August 2003 to April 2014, he was Secretary of
Party cell and Chairman of the Board of Members of Saigon Jewelry Company Limited (SJC). He was
appointed Chairman of the Board of Directors of Eximbank in April 2010 and has held this position until
now.
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64
Mr. Naoki Nishizawa was born in 1957 with Japanese nationality, and is a Master of Business
Administration at Harvard University, USA and a Bachelor of Law at Kyoto University, Japan. He is the
representative of the strategic partner, Sumitomo Mitsui Banking Corporation (SMBC), in Eximbank. He
used to be Deputy General Manager of Tokyo V-VI Corporate Banking Department of SMBC Tokyo, Japan;
Senior Vice President and then Executive Vice President of Asia-Japanese Banking Division; Executive Vice
President of Planning Department of Manufacturers Bank, Los Angeles, USA; and Executive Vice President
of Planning Department of SMBC, Tokyo, Japan.
He is currently Vice Chairman of the Board of Directors of Eximbank.
Mr. Naoki NishizawaVice Board Chairman
Mr. Ha Thanh HungStanding Vice Board Chairman
Mr. Ha Thanh Hung was born in 1955 in Tien Giang and has Bachelor degrees in Economics and
Electronics Engineering. He used to be Director of Investment Planning Department of The Voice of Ho
Chi Minh City People, Director of Business Planning Department of Imex Co., Deputy General Manager in
charge of Sales of Tenimex Joint Stock Company, Chairman and General Manager of TIE Joint Stock
Company, Vice Chairman of the Board of Directors of Samsung Vina Electronics Co., Ltd, and member of
the Board of Directors of Eximbank.
He is now Standing Vice Chairman of the Board of Directors of Eximbank, cum Chairman of the
Board of Directors of Song Viet Joint Stock Company.
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65
Mr. Pham Huu Phu was born in 1959 in Thua Thien Hue and has Bachelor degrees in Economics.
He used to be Chairman of Sai Gon Asia Finance Finance and Investment Joint Stock Company, Standing
Vice Chairman of the Board of Directors of Sai Gon Thuong Tin Commercial Joint Stock Bank, Board
Chairman of Sai Gon Thuong Tin Commercial Joint Stock Bank, and is now Vice Board Chairman cum Chief
Executive Officer of Eximbank.
Mr. Pham Huu PhuVice Board Chairman cum Chief Executive Officer
Mr. Dang Phuoc DuaVice Board Chairman
Mr. Dang Phuoc Dua was born in 1960 in An Giang and is a Bachelor at Hanoi Foreign Language
University and a Master of Business Administration at Vietnam National University, Hanoi. He used to be
Deputy Director of An Giang Province Police's General Production and Trading Company, Director of An
Giang Province Police's Life Serving Company – LISCO, Director of Natural Resources Export and Import
Company – Corimex – Vietnam Science Institute, Director of Natural Resources Export and Import–
Technical Materials Company – Vietnam Science Institute, Director of Technical Materials Export and
Import Company – Vietnam Academy of Science and Technology, Board member of Dong A Joint Stock
Commercial Bank, Board member of Phu Nhuan Jewelry Joint Stock Company, General Director of
Technical Materials Export and Import Joint Stock Company, Vice Board Chairman of Dong A Joint Stock
Commercial Bank, Board member of Dong A Joint Stock Commercial Bank.
He is currently Vice Chairman of the Board of Directors of Eximbank, cum Board Chairman of Viet
Tin Investment and Trading Joint Stock Company.
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66
Mr. Hoang Tuan KhaiVice Board Chairman
Mr. Hoang Tuan Khai was born in 1962 in Hanoi. He graduated from Foreign Trade University with
major in Foreign Trade Economics and studied Economics management in Holland. He used to be Deputy
Director and then Director of Vietnam National General Export – Import Joint Stock Company No.1.
He is now Vice Board Chairman of Eximbank, simultaneously, Chairman cum General Manager of
Vietnam National General Export – Import Joint Stock Company No.1, Chairman of the Board of Directors
of De Nhat Development Company, and a representative of capital of Eximbank and Board member of
Vinaconex Investment and Tourism Development Joint Stock Company.
Mr. Nguyen Quang ThongVice Board Chairman
Mr. Nguyen Quang Thong was born in 1963 in Kien Giang. He is a Bachelor of Economics. He used
to hold such positions as: member of the Board of Supervisors of Eximbank and member of the Board of
Directors of Eximbank.
He is currently Vice Chairman of the Board of Directors of Eximbank; simultaneously, Vice
Chairman of the Board of Directors of Bao Long Insurance Company, of Exim Real Estate Joint Stock
Company (Eximland), of Vinatexland and of Viet Long Securities Investment Fund Management
Corporation.
Annual Report 2014
67
Mr. Dang Anh MaiBoard member
Mr. Dang Anh Mai was born in 1966 and graduated with Master's degree from Duke University,
USA. He used to hold such positions as Senior Officer, Deputy Department Manager and then
Department Manager of International Cooperation Department of the State Bank of Vietnam, Expert of
World Bank in the U.S., Department Manager of International Cooperation Department of the State Bank
of Vietnam, Deputy Director of International Cooperation Department of the State Bank of Vietnam.
He is currently a member of the Board of Directors of Eximbank.
Mr. Lawrence Justin WolfeIndependent Board member
Mr. Lawrence Justin Wolfe was born in 1946 with U.S. nationality. He has more than 40 years'
experience in banking and finance and used to hold such important positions as Branch Manager of
Chase Manhattan Bank, Thailand; Private Banking International Manager of Chase Manhattan Bank, New
York; Credit and Marketing Manager of Chase Manhattan Bank-Osaka Branch; Credit Department
Manager of Deutsche Bank-Taipei Branch; Corporate Banking Manager of Deutsche Bank-Singapore
Branch; Chief Country Officer of Deutsche Bank-Jakarta Branch, Indonesia; Chief Country Officer of
Deutsche Bank-Ho Chi Minh City Branch; Business Development Director of Dong A Securities Company;
and Head of Transaction Banking Division of Techcombank.
He is currently an independent member of the Board of Directors of Eximbank.
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68
V.1.2. Changes in Board members
2014's Annual General Meeting of Shareholders elected 3 additional members to the Board of
Directors of Eximbank being Mr. Pham Huu Phu, Mr. Dang Phuoc Dua and Mr. Le Hung Dung (Mr. Le Hung
Dung was re-elected in personal capacity, not representing for the contributed capital of Saigon Jewelry
Company Limited – SJC).
V.1.3. Share ownership ratio of Board members
No. Full name PositionNo. of shares
personally owned
Representative of entity
shareholder
1 Mr. Le Hung Dung
Board Chairman
2 Mr. Ha Thanh Hung
Standing Vice Board Chairman
2,341,609
3 Mr. Naoki Nishizawa
Sumitomo Mitsui Banking Corporation
5 Mr. Nguyen Quang Thong
Mr. Hoang Tuan Khai
8 Mr. Dang Anh Mai
Board Member
9 Mr. Lawrence Justin Wolfe
Independent Board member
Personal shareholding
ratio (%)
Entity's shareholding
ratio (%)
No. of shares of the entity
0 0
0.1895237
Vice Board Chairman
185,329,207 15.00006240 0
4 Mr. Pham Huu Phu
Vice Board Chairman cum CEO
2,482,092 0.2008940
Vice Board Chairman
152,714 0.0123603
6 Vice Board Chairman
67,392 0.0054545Vietnam National General Export – Import Joint Stock Company No.1
12,870,000 1.0416642
Mr. Dang Phuoc Dua
7 Vice Board Chairman 95,097 0.0076969
0 0
0 0
Annual Report 2014
69
V.1.4. Operations of the Board of Directors
The management and guidelines of the Board of Directors under authorization of the General
Meeting of Shareholders towards the Board of Management and the Bank's business activities have been
oriented by the Board of Directors in 05 strategic programs, which have been implemented right at the
thstart of the V tenure, and so far certain results have been achieved as follows:
1.Program 1 - Credit development closely linked with risk management
The Board of Directors always pays attention to develop credit sustainably in strict compliance
with prevailing regulations; credit approval authorities have been reasonably allocated to each level
under tight supervision to ensure both credit growth and minimization of risks to the possible extent.
With the policy of transparency and law compliance in all operations, all overdue and bad debts are
reported to the regulator – the State Bank of Vietnam, and the Board of Directors has directed the Board of
Management to make weekly reports to the Risk Handling and Overdue Debt Prevention Council to
consider resolving and passing measures of set-off, foreclosure, interest waiver/reduction, sale of NPLs to
VAMC, etc. to strengthen the Bank's credit quality, and not to disguise figures of overdue or bad debts.
Thanks to that, Eximbank's balance sheet is always honest and objective, and reflects actual nature of its
business activities and control of bad debts arising during the course of business.
2.Program 2 – Operation network and infrastructure development
As to date, Eximbank has 208 business units spreading in 22 provinces and cities nationwide
including 44 branches, 163 transaction offices and 01 savings fund. Within the scope of the Program, the
Board of Directors has agreed to hire international consultants to design the work of Eximbank's Head
Office – Eximbank Tower at 7 Le Thi Hong Gam, District 1 with the most possible construction coefficients.
The company opted by Eximbank's Selection Council comprising of key representatives of Department of
Planning and Architecture, Department of Construction, Vietnam Architect Association, HCMC Architect
Association is a reputational designer in Japan and the world namely Nikken Sekkei, and the project
manager is Turner (US) which has managed the construction and execution of famous construction
works in the world and Vietnam with nearly absolute safety. While awaiting for completion of Eximbank
Tower implementation procedures, the Board of Directors has instructed the Board of Management to
cut down on lease and increase more ownership of branch and transaction office premises. So far, the
network of Eximbank's transaction units has been built or leased in good and breeding locations which
are attractive to customers.
In order to make supplementation to the current network of branches and transaction offices, the
Board of Director has guided the Board of Management to keep developing IT-based transaction systems
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70
to offer services directly to customers such as Internet Banking and Mobile Banking, etc. which are among
new tendencies of modern banking.
3. Program 3: Human resources training and development, officer policy
Personnel tasks such as recruitment, planning, training, professional development, etc. are
always attached with special importance in compliance with regulations, procedures and law
stipulations in the entire network of Eximbank. Eximbank has also taken courage to restructure its HR
mechanism since early 2013 in the direction of raising more direct sales officers, reducing intermediary
administrative officers, receiving and expanding qualified resources from other entities, etc. to increase
productivity and improve the Bank's performance; ultimately apply proper salary and bonus regimes
based on performance to create fairness in treatments, internal stimulus policies, and preferential house
loans for staff – officers, etc. Thanks to which, the working spirit of the Bank's labor force has been further
encouraged.
With the policy of taking human resources as one of the most significant elements to the Bank's
success, the Board of Directors has made all favorable conditions to enhance staff quality in all over the
network by on-site training, cooperating with prestigious training units to hold fostering and intensive
courses for staff and officers, especially standby branch and transaction office directors to well prepare for
successive resources. And assistance from the foreign strategic partner, Sumitomo Mitsui Banking
Corporation, has also been taken advantage to further strengthen operations of the Training Center.
So far, Eximbank has developed a cadre of qualified, professional, highly experienced and skilful key
officers which is the valuable resource and foundation for the Bank's growth.
4. Program 4: Information technology system development
With an aim of building a versatile bank on grounds of state-of-the-art technologies satisfactory
to the Bank's business development strategies, in 5 years of carrying out the program of information
technology development for management (2010-2015), Eximbank has reached the accomplishments as
follows:
4.1.System administration: For development of an IT administration model meeting growth
requirements and international standards, Eximbank has set up IT Steering Committee, Banking
Technology Modernization Committee, etc., gradually completed the organization structure, established
E-banking Department to promote the development of e-banking services, developed and standardized
information system-related internal procedures to improve the effectiveness and transparency in daily
management of the Bank's information system.
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71
4.2. Development of IT systems:
Continue to implement the Korebank replacement project to establish solid technological
platform, which is a chance to restructure the IT system, transform the current IT system model into a new
one, create differentiates in products and services, shorten the time of launching products to the market,
meet international standards and enhance competitiveness. Carry out to build up a state-of-the-art Data
Center which satisfies the State Bank's regulations and reaches international standards.
5. Program 5: Marketing, brand promotion, charity – social activities for community
Eximbank has always focused on and reserved a remarkable resource to invest in marketing and
brand promotion through different activities such as sponsoring large programs or events, regularly
advertising new products, etc. Procure and hire a design consultant to revise the Bank's logo and
standardize its set of brand identification including uniform, key colors in business designs and printouts,
etc. Thanks to which, the brand name of Eximbank has made good recognition to the customers and the
public, and its prestige as well as brand value have been raised to a new height. In addition, the Bank has
always insisted on performing its social responsibilities towards the community, giving support to social
charity programs, and contributing to create a humane and sociable image of Eximbank.
V.1.5. Operations of Councils and Committees under the Board of Directors
The 2014 General Meeting of Shareholders on 28/4/2014 elected 03 additional Board members.
After that, the Board of Directors had met to assign titles for the members and reviewed the personnel
and operating functions of the Councils and Committees under the Board of Directors to better assist
business activities. At present, Councils and Committees under the Board of Directors consist of:
Central Credit Council: hold meetings to timely resolve credit profiles exceeding the approval
authority of Head Office Credit Council to quickly satisfy customers' demands.
Financial Investment Council: analyze, assess and consult the Board of Directors on financial
investment policies and regulations. Suggest to the Board of Directors for tackling of some issues and
making decisions regarding investments in new bonds, restructuring of equity investments previously
executed in a more effective way, and considering strengthening cooperation with investment
counterparties for higher benefits, etc.
Fixed Asset Investment and Liquidation Council: analyze, assess and consult the Board of
Directors on fixed asset investments and disposals of Eximbank.
Risk Handling and Overdue Debt Prevention Council: meet every week to carry out regulations
Annual Report 2014
72
of the State Bank, then consider and propose policies for business units to review and handle overdue and
non-performing loans to maintain NPL ratio at the lowest possible level in compliance with regulations of
the State Bank. Resolve documents of debt restructuring, debt set-off asset purchase, interest rate waiver
or reduction which are over the authority of Credit Council or regions; sell loans to VAMC; start
proceedings, or report to legal agencies on incidents; discuss and provide for guidelines and policies to
push up the debt settlement process.
Emulation, Reward and Discipline Council: study and keep abreast of operating conditions and
staff quality to timely consult the Board of Directors on discipline or reward according to regulations.
Development Strategy Committee: The Committee's members regularly study and stay abreast
of the information to conduct discussions with and provide strategic consultations to the Board of
Directors in their instructions.
Personnel Committee: consult the Board of Directors on personnel policies in the network;
conduct planning of all levels to prepare for successive managing officers and employees for the
development and expansion of the operating network; arrange effective working mechanism; give
advice to the Board of Directors and Board of Supervisors on anticipated persons to be additionally
elected as members of the Board of Directors, members of the Board of Supervisors for the Vth term (2010
- 2015); and consult on development of the Regulations on the organization and operations of Councils
and Committees under the Board of Directors.
Risk Management Committee: meet every month to discuss on debt restructuring and
classification; assess the credit portfolio with respect to corporate bonds, property loans, mid and long-
term loans, etc.; plan to implement the draft Risk Management Circular of the State Bank; plan to
implement the official dispatch 1601 regarding Basel II of the State Bank; control over credit risk limits and
loans to groups of customers; and evaluate the impacts of Circular No. 36/2014/TT-NHNN.
Alliance Committee: meet regularly to guide Alliance Department and operational divisions to
promote business association and cooperation programs between SMBC and Eximbank. With its
commitment of long-term investment in Vietnam, in 2014, SMBC has been always accompanying and
assisting Eximbank in terms of capital, education and training, increase of risk management capabilities,
and corporate governance. So as to deploy mutual strengths, SMBC and Eximbank have set up different
mechanisms of matching Vietnamese – Japanese enterprises, referring counterparties and providing
financial services to two sides' customers. Besides, SMBC has also seconded and assigned several officers
to work at Eximbank in order to help the Bank develop information technology infrastructure, and study
Annual Report 2014
to innovate products, especially export import financing ones which have been Eximbank's traditional
advantage.
Training Council: approve development strategies, training plans, local and overseas training
programs, assign representative to work with joint-ventures and associates in carrying out and
developing Eximbank's training tasks; give consultation on the training programs for branch directors
and transaction office managers in the network, and financial regimes for training, build up the lecturing
cadre, and assess training quality; and participate in discussing the training program designed by
SMBCLS for Eximbank.
Operation Network Planning and Development Committee: consult the Board of Directors to
plan policies as well as restructure the operating network to fit with Eximbank's business conditions from
time to time.
Banking Technology Modernization Committee: advise the Board of Directors on technology
development strategies; establish technology development strategies, set up and carry out technology
modernization projects; and comply with Eximbank's mid and long-term development strategies.
Activities of the Banking Technology Modernization Committee aim at directing the technology
development strategies on the right track, ensuring stable and sustainable operation of the banking
technology systems, and quick and efficient support for both business and management tasks.
The Committee has, in cooperation with IT Division and Card Center, assessed the current status
of information technology application, reviewed the investment in modernization-related projects to
prepare an overall report to the Board of Directors. Especially, support the Board of Management and IT
Task Force Team in the corebanking and data center projects. Besides, the Banking Technology
Modernization Committee has assisted the Board of Directors in appraising IT projects, raised directions
on information technology in management and business support; and helped the Board of Management
in preparing IT plan for 2015.
73Annual Report 2014
74
V.2. The Board of Supervisors
V.2.1 Members and structure of the Board of Supervisors
Mr. Dang Huu TienChief Supervisor
Mr. Dang Huu Tien was born in 1962 in Hanoi. He
graduated from Master of Business Administration (MBA)
course of Columbia University, and also holds a Master Degree
in Economics of University of Commerce, Bachelor Degree in
Economic Planning, and Bachelor Degree in Foreign Trade
Economics.
From 1998 to 2010, he has been a specialized member
of the Board of Supervisors of Eximbank.
Mr. Nguyen Hong LongSpecialized member of the Board of Supervisors
Mr. Nguyen Hong Long was born in 1964 in Hoa Binh
(Hanoi). He graduated from the Master of Business
Administration (MBA) course of Southern Columbia University,
US. He also holds a Master Degree in Economics of the
University of Commerce and a Bachelor Degree in Economic
Planning. He is currently doctoral researcher at Southern
Columbia University. He is a financial expert with lots of
experience in banking-finance and corporate governance. He
used to be a major lecturer for the Chief Accountant, Chief
Financial Officer-CFO and Chief Executive Officer-CEO Training
Programs; Director of Economic Research Department at Ho Chi Minh City Economically Applied and
Informatics Research Institute; Chairman of Standard Securities JSC. Before being elected into the Board
of Supervisors of Eximbank (in April 2010), he was a standing member of the Development Strategy
Committee of Eximbank, and simultaneously a member of Eximbank's Board of Consultants. He is
currently a Specialized Member – Vice Chief of the Board of Supervisors of Eximbank.
He has lots of experience in treasury, credit, accounting-auditing, inspection and control. His current
position at Eximbank is Chief Supervisor of the Board of Supervisors.
Annual Report 2014
75
Mrs. Nguyen Thi PhungSpecialized member of the Board of Supervisors
Mrs. Nguyen Thi Phung was born in 1954 in Tien Giang.
She is a Bachelor of Banking-Finance. In July 2010, she was
elected to be member of the Board of Supervisors of Eximbank
for 2010 – 2015 tenure. She has intensive experience in
banking, especially in treasury - credit, internal inspection and
control, and banking governance. She used to be Vice
President cum Trade Union President of Eximbank through the
period of 2000 – 2010; member of the Board of Directors and
Vice Chairman of the Board of Directors of Viet A Commercial
J.S. Bank (2008-2011). She is currently a specialized member of the Board of Supervisors of Eximbank.
Mr. Tran Le QuyetSpecialized member of the Board of Supervisors
Mr. Tran Le Quyet was born in 1981 in Quang Binh and
has a Bachelor's degree in Economics with major in
Accounting-Auditing. In April 2014, he was elected to be
member of the Board of Supervisors of Eximbank for 2010 –
2015 tenure. He has lots of experiences in banking, especially
credit, risk management and banking governance. He has
more than 10 years of experiences in credit operation and used
to be Deputy Director of Head Office Credit Risk Management
Department in Ho Chi Minh City of JSC Bank for Foreign Trade
of Vietnam and Deputy Director of JSC Bank for Foreign Trade of Vietnam – Tien Giang Branch. His current
position at Eximbank is Specialized Member – Vice Chief of the Board of Supervisors.
Annual Report 2014
76
V.2.2. Changes in the members of the Board of Supervisors
2014's Annual General Meeting of Shareholders elected one additional member to the Board of
Supervisors for 2010 – 2015 tenure being Mr. Tran Le Quyet, which was approved by the State Bank.
Therefore, the structure of the Board of Supervisors of Eximbank changed from 3 to 4 members, including
01 Chief Supervisor, 02 Vice Chief Supervisors and 01 Specialized Member, specifically:
No. Full name Position Remarks
1 Mr. Dang Huu Tien Chief Supervisor Re-elected for 2010 – 2015 tenure
2 Mr. Nguyen Hong Long Specialized member (Vice Chief Supervisor)
3 Mr. Tran Le Quyet
4 Mrs. Nguyen Thi Phung
Elected for 2010 – 2015 tenure
The Board of Supervisors has the Board of Internal Auditors as its assisting body (in 2014, this Board had 68 people).
V.2.3. . Shareholding ratio of the members of the Board of Supervisors
No. Full namePosition
currently held at the CI
Name of entity
shareholder
1 Mr. Dang Huu Tien
Chief
2 Deputy Chief
3
Mr. Nguyen Hong Long
JSC Bank for Foreign Trade
of Vietnam
Personalshare
holding ratio
Entity's shareholding
ratio (%)
0.0068182
0.0000013
8.1945167(Mr. Tran Le Quyet was authorized to represent 12,362,043 shares (of the total number of 101,245,131 shares) of Vietcombank at Eximbank
0
4 Mrs. Nguyen Thi Phung
Member 0.0111444
Remarks
Specialized member (Vice Chief Supervisor)
Specialized member
Elected for 2010 – 2015 tenure
Elected for 2010 – 2015 tenure
Mr. Tran Le Quyet Deputy Chief
V.2.4. Operations of The Board of Supervisors
The Board of Supervisors is the body supervising the Bank's operations in order to have an
accurate assessment of the Bank's business activities and actual financial status, performing internal
auditing, controlling, and evaluating the compliance with law stipulations, internal regulations, the
Annual Report 2014
77
Bank's Charter, and the Resolutions and Decisions of the General Meeting of Shareholders and the Board
of Directors.
The Board of Supervisors closely coordinated with the Board of Directors and the Board of
Management to perform its functions and duties; attended all meeting sessions of the Board of Directors,
meetings among the Board of Directors - Board of Supervisors - Board of Management, monthly
meetings, and preliminary/final conferences.
In 2014, the Board of Supervisors met in 21 sessions (of which there were 17 extended sessions
with the Chief of the Board of Internal Auditors) to discuss, implement and perform its functions and
duties. In addition, specialized members of the Board of Supervisors directly participated and chaired 51
meeting sessions with auditing teams and audited units to discuss, consider, conclude and give
instructions on carrying out planned internal audit independently - objectively (to ensure precise/honest
reflection of the performance of audited units), as well as issues to be clarified with internal audit teams.
The Board of Supervisors used its Internal Auditor mechanism to conduct periodical and
unexpected risk-oriented internal audit, combined onsite and remote audits via the internal information
system (through the internal information system, the Board of Supervisors executed remote supervision
over major business activities at the units in Eximbank's network). The subjects audited were Branches,
Transaction Offices, subsidiary, Divisions, Centers and Departments/Sections at Head Office. The internal
inspection and control quality has been increasingly improved and enhanced. The contents of internal
audit focused on operational procedures and the inspection and control systems to detect, prevent and
restrict risks in operations, and ensure the compliance with regulations of the State regulators and
Eximbank.
In the fiscal year 2014, the Board of Supervisors assigned 51 working teams (members of the
Board of Supervisors directly instructing and presiding over the meetings with auditing teams and
audited units) to the belonging units to perform internal audit on a planned or unexpected basis,
specifically 11 tranches at the Head Office (including 06 tranches of review and 01 tranche of audit with
respect to information technology), 38 tranches at Eximbank's Branches (141 belonging transaction
offices) and 02 audit tranches at Eximbank AMC and Eximbank Debt Settlement Center; 02 tranches
(parallel with Independent auditor) of appraisal and review over the Financial statements of 2013 and
Interim Financial statements of 2014 of the Bank. Besides, in 2014, the Board of Supervisors and Board of
Internal Auditors also conducted audit tranches at the request of Banking Inspection and Supervision
Agency of the State Bank of Vietnam.
Annual Report 2014
78
No.Transaction performer
Relationship with internal shareholders/
major shareholders
Number of shares
Ratio/ charter
capital (%)
Number of shares
Number of shares held at the
beginning of the yearNumber of shares
held at the end of the year Reason for increase/decrease (buy, sell,
transfer, reward,etc.)
Song Viet Joint Stock Company
Mr. Ha Thanh Hung Chairman of the Board of Directors of Song Viet Joint Stock Company
2,341,929 0.1895 1,941,019 0.1571
Sold 400,910 shares (as per report No. 01-2014/HDQT dated 22/01/2014 of Song Viet JSC)
Mr. Le Duc Anh
Younger brother of Mr. Le Anh Tu – Vice President of Eximbank
0
V.3. Transactions, remunerations, and interests of the Board of Directors, the Board of Supervisors
and the Board of Management
V.3.1. Income, remunerations and other interests of the Board of Directors and the Board of
Supervisors
2014's General Meeting of Shareholder approved the total remunerations, salaries and
allowances of the Board of Directors and Board of Supervisors in 2014 to be 1.5% of the profit after tax.
V.3.2. Information on transactions of Eximbank's shares and other transactions made by the
related persons of the Board of Directors, the Board of Supervisors and the Board of Management.
1
2 0 0 0Bought 74,900 shares from 06/3/2014 to 15/5/2014;Sold 74,900 shares from 03/6/2014 to 03/7/2014 (as per notice dated 02/7/2014 of Mr. Le Duc Anh)
Ratio/ charter
capital (%)
Through the inspection and audit, the working teams made a total of 7,042 recommendations for
audited units to remedy/adjust/supplement mistakes so as to restrict risks in operations. Of which, there
were 66 recommendations relating to procedures and regulations for Head office so as to contribute to
prevent risks and ensure a stricter operation.
For the recommendations given by the Banking Inspection and Supervision Agency of the State
Bank of Vietnam, the Board of Supervisors and Board of Internal Auditors regarding strict handling of
responsibility of the individuals having intentional misconduct, or violation of credit and internal
governance policies of Eximbank and the State Bank in 2014, the Board of Directors and the Management
had received, processed, corrected and remedied the same, and now the bank's leaders keep on
executing them.
Annual Report 2014
No.Transaction performer
Relationship with internal shareholders/
major shareholders
Number of shares
Ratio/ charter
capital (%)
Number of shares
Number of shares held at the
beginning of the yearNumber of shares
held at the end of the year
Ratio/ charter
capital (%)
79
VOF Investment Ltd.
Major shareholder
V.3.3. Activities to enhance effectiveness of corporate governance
Credit activities: Continuing to promote credit growth in line with the State Bank's policies and
guidelines, enhancing credit quality, reviewing credit protfolio structure in way of focusing on safe and
efficient sectors and reducing high risk ones (real estate, securities, etc.); concentrating on traditional
areas of export – import, loans to companies in the list of 5 prioritized sectors of the Government, etc., and
pushing up SME loans and individual consumption loans to disperse risks and improve credit
performance.
International settlement activities: Promoting international settlement activities which have
been Eximbank's strengths over the past years. Establishing International Settlement Center under the
centralized model so as to improve transaction processing quality and professionalize manipulations,
from which to enhance productivity, cut down on costs and facilitate business units to focus on selling
products and increase volumes. Developing international settlement product packages including fund
financing, L/C issuance, L/C payment, foreign currency trading, etc.
Retail activities: Continuing to promote retail activities by setting up breakthrough solutions in
retail sales, reviewing personal loan products, keeping abreast of market movements and customers'
needs to suggest proper policies and products; expanding retail market share by strengthening to
cooperate and associate with property developers, units, entities, etc. in a deeper and wider level; and
building suitable retail model, qualified and professional sales staff, and proper emulation and reward
policies for sales officers.
362,062,517 5.023 60,962,517 4.934
Sold 60,000 shares & was no longer a major shareholder of Eximbank (as per report dated27/11/2014 of VOF). VOF further sold 1,040,000 shares (as per report dated 10/12/2014 of VOF)
Annual Report 2014
Reason for increase/decrease (buy, sell,
transfer, reward,etc.)
80
Risk management: being one of the most decisive duties to the sustainable development of
Eximbank. Continuing to strengthen such councils and committees as Risk Management Committee and
ALCO, increasing more supervision by Operational Supervision Division and cooperation among the
units, and strengthening the performance of Eximbank's Board of Supervisors. Defining limitations to
inspect and control risks in a centralized manner. Carrying out to restructure the organization model from
Head Office to branches in correspondence with business environment and operational scale in the new
period, in order to successfully execute the restructuring plan as approved by the State Bank, and
developing flexible business supporting regimes while ensuring safety and efficiency.
Network expansion and brand identification: Continuing to focus on transaction network
enlargement quality and distribution channel diversification to quickly raise the Bank's market shares
and gradually expand its business activities outside Vietnam, penetrate and compete to offer banking
products and services in ASEAN and international markets. Rushing to carry out the construction of the
Head Office premise at 7 Le Thi Hong Gam, District 1 and the building at 55 Nguyen Chi Thanh, District 5;
and quickly conducting the construction of branch premises.
Information technology: Continuing to develop and complete the information technology
system, especially the corebanking replacement project and data center project; carrying out MIS and
centralized international settlement management system; and upgrading e-banking services to increase
competitiveness, ensuring to apply the latest payment technologies and satisfy requirements of a
standard information technology infrastructure system.
Training and human resource development: Training and HR development remain one of the
important tasks to enhance the Bank's competitiveness. The core of HR development is recruitment,
training and use of human resources in an effective way together with promotion opportunities and
proper treatment policies. Focusing on staff's occupational process, balancing human resources in terms
of age, gender, working duration, and creating a cooperative environment which enables growth,
especially free deployment of personal competence and strengths.
Administration and governance: Developing and completing the Committees under the Board
of Directors to improve the consultations to the Board of Directors. Innovating the administration and
governance methods in the whole network of the Bank, continuing to restructure the organization
model; focusing on directions and guidelines in a consistent strategy, taking centralized control but
decentralizing in decision making. Strengthening network administration capabilities of managing
levels at Head Office; and improving the organization model and governance methods to meet
international standards and growth pace of Eximbank.
Annual Report 2014
VI. FINANCIAL STATEMENTS
Vietnam Export Import Commercial Joint Stock Bank
31 December 2014
Report of the Board of Management and audited consolidated financial statements
83Annual Report 2014
CONTENTS
General information
Report of the Board of Management
Independent auditors' report
Consolidated balance sheet
Consolidated income statement
Consolidated cash flow statement
Notes to the consolidated financial statements
84 Annual Report 2014
GENERAL INFORMATION
THE BANK
BOARD OF DIRECTORS
BOARD OF SUPERVISORS
Vietnam Export Import Commercial Joint Stock Bank (“the Bank”) is a commercial joint stock bank incorporated in the Socialist Republic of Vietnam.
Members of the Board of Directors for the financial year ended 31 December 2014 and at the date of this report are:
Members of the Board of Supervisors for the financial year ended 31 December 2014 and at the date of this report are:
The Bank was established on 24 May 1989 under Decision No. 140/CT issued by the Chairman of Council of Ministers under the name of Vietnam Export Import Bank. On 6 April 1992, the State Bank of Vietnam granted License No. 11/NH-GP to the Bank, which approved its operational duration of 50 years.
The Bank's principal activities are to provide banking services including mobilizing and receiving short, medium and long-term deposits from various organizations and individuals; providing short, medium and long-term loans to various organizations and individuals based on the Bank's nature and capacity of the capital resources; foreign exchange trading; international trade finance services; discount of commercial papers, bonds and other valuable papers; settlement services and other banking services as allowed by the State Bank of Vietnam.
Name
Name
Mr. Le Hung Dung
Mr. Dang Huu Tien
Chairman
Chief Supervisor
Appointed on 28 April 2010
Appointed on 28 April 2010
Mr. Naoki Nishizawa
Mr. Nguyen Hong Long
Vice Chairman
Vice Chief Supervisor
Appointed on 26 January 2011
Appointed on 28 April 2010
Mr. Ha Thanh Hung
Mr. Tran Le Quyet
Vice Chairman
Vice Chief Supervisor
Appointed on 25 April 2013
Appointed on 28 April 2014
Mr. Nguyen Quang Thong
Mrs. Nguyen Thi Phung
Vice Chairman
Member
Appointed on 20 December 2013
Appointed on 28 July 2010
Mr. Hoang Tuan Khai Vice Chairman Appointed on 28 April 2010
Mr. Dang Phuoc Dua Vice Chairman Appointed on 28 April 2014
Mr. Pham Huu Phu Vice Chairman Appointed on 28 April 2014
Mr. Dang Anh Mai Member Appointed on 26 April 2013
Mr. Lawrence Justin Wolfe Member Appointed on 26 April 2013
Position
Position
Date of appointment
Date of appointment
VI. Vietnam Export Import Commercial Joint Stock Bank
The head office of the Bank is located at 8 Floor, Office No. L8-01-11+16, Vincom Center, 72 Le Thanh Ton Street and 45A Ly Tu Trong Street, Ben Nghe Ward, District 1, Ho Chi Minh City. As at 31 December 2014, the Bank had one (1) Head Office, fourty four (44) branches located in cities and provinces in Vietnam and one (1) representative office in Hanoi.
th
Annual Report 2014 85
GENERAL INFORMATION (continued)
BOARD OF MANAGEMENT AND CHIEF ACCOUNTANT
Members of the Board of Management and Chief Accountant for the financial year ended 31 December 2014 and at the date of this report are:
Name
Mr. Pham Huu Phu Chief Executive Officer Appointed on 12 May 2014
Mr. Nguyen Quoc Huong Chief Executive Officer Resigned on 12 May 2014Mr. Nguyen Quoc Huong
Ms. Bui Do Bich Van
Vice President
Vice President
Appointed on 12 May 2014
Appointed on 6 August 2013
Mr. Tran Tan Loc
Mr. Nguyen Ho Hoang Vu
Standing Executive Vice President
Vice President cum Chief Financial Officer
Appointed on 28 March 2007
Appointed on 5 September 2013
Mr. Dao Hong Chau
Mr. Le Hai Lam
Vice President
Vice President
Appointed on 26 April 2004
Appointed on 17 September 2013
Ms. Dinh Thi Thu Thao
Mr. Nguyen Quang Triet
Mr. Nguyen Thanh Nhung
Vice President
Vice President
Vice President
Appointed on 19 December 2007
Appointed on 25 September 2013
Resigned on 28 April 2014
Mr. Kenji Kuroki
Mr. Cao Xuan Lanh
Mr. MitsuakiShiogo
Vice President
Vice President
Vice President
Appointed on 18 July 2008
Appointed on 2 December 2013
Resigned on 10 February 2015
Ms. Van Thai Bao Nhi
Mr. Nguyen Van Hao
Mr. Nguyen Ngoc Ha
Vice President
Vice President
Chief Accountant
Appointed on 9 May 2012
Appointed on 20 January 2014
Appointed on 5 September 2013
Mr. Le Anh Tu
Mr. Nguyen Thuc Vinh
Vice President
Vice President
Appointed on 6 August 2013
Appointed on 24 November 2014
Position Date of appointment/resignation
LEGAL REPRESENTATIVE
AUDITORS
SIGNIFICANT EVENTS DURING THE YEAR
The legal representative of the Bank from 1 January 2014 to 12 May 2014 is Mr. Nguyen Quoc Huong - Chief Executive Officer.
The auditor of the Bank is Ernst & Young Vietnam Limited.
In July 2014, the Bank disposed its entire investments in Eximland Corporation (“Eximland”), and accordingly Eximland is no longer an associate of the Bank.
The 2014 Annual General Meeting of Shareholders held on 28 April 2014 has approved the dividend rate for the year 2013 at 4% over the charter capital entitled to dividend as regulated and also approved to elect additional twomembers of the Board of Directors and one member of the Board of Supervisors to meet the Bank's operational scale and regulations.
The legal representative of the Bank from 12 May 2014 to the date of this report is Mr. Pham Huu Phu - Chief Executive Officer.
86 Annual Report 2014
REPORT OF THE BOARD OF MANAGEMENT
The Board of Management of Vietnam Export Import Commercial Joint Stock Bank (“the Bank”) is pleased to present its report and the consolidated financial statements of the Bank and its subsidiary as at and for the financial year ended 31December2014.
THE BOARD OF MANAGEMENT'S RESPONSIBILITY FOR THE CONSOLIDATED FINANCIAL STATEMENTS
STATEMENT BY THE BOARD OF MANAGEMENT
The Board of Management of the Bank is responsible for the consolidated financial statements, which give a true and fair view of the consolidated financial position of the Bank and its subsidiary and of the consolidated results of their operations and their consolidated cash flows for the year. In preparing those consolidated financial statements, the Board of Management of the Bank is required to:
The Board of Management does hereby state that, in its opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of the Bank and its subsidiary as at 31December2014 and of the consolidated results of their operations and their consolidated cash flows for the financial year then ended in accordance with Vietnamese Accounting Standards and Accounting System for Credit Institutions,regulations stipulated by the State Bank of Vietnam and statutory requirements relevant to preparation and presentation of consolidated financial statements.
The Board of Management is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the consolidated financial position of the Bank and its subsidiary and ensuring that the accounting records comply with the applied accounting system. The Board of Management is also responsible for safeguarding the assets of the Bank and its subsidiary and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Board of Management confirmed that it has complied with the above requirements in preparing the accompanying consolidated financial statements as at and for the financial year ended 31December2014.
select suitable accounting policies and apply them consistently;
make judgments and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, by the Bank and its subsidiary, subject to any material departures disclosed and explained in the consolidated financial statements; and
prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Bank and its subsidiary will continue in business.
VI. Vietnam Export Import Commercial Joint Stock Bank
Annual Report 2014 87
INDEPENDENT AUDITORS' REPORT
To: The Shareholders of Vietnam Export Import Commercial Joint Stock Bank
Management's responsibility
Auditor's responsibility
Opinion
We have audited the accompanying consolidated financial statements of Vietnam Export Import Commercial Joint Stock Bank (“the Bank”) and its subsidiary as prepared on 25 March 2015 and set out on pages 6 to 71which comprise the consolidated balance sheet as at 31 December 2014, the consolidated income statement and the consolidated cash flow statement for the year then ended and the notes thereto.
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Vietnamese Accounting Standards, Accounting System for Credit Institutions, regulations stipulated by the State Bank of Vietnam and statutory requirements relevant to preparation and presentation of consolidated financial statements, and for such internal control as management determines is necessary to enable the preparation and presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
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 to obtain reasonable assurance about 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 auditor's 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 Bank's 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 Bank and its subsidiary's 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.
Reference: 60859558/17203818-HN
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion, the consolidated financial statements give a true and fair view, in all material respects, of the consolidated financial position of the Bank and its subsidiary as at 31 December 2014, and of the consolidated results of their operations and theirconsolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, Accounting System for Credit Institutions, regulations stipulated by the State Bank of Vietnam and statutory requirements relevant to preparation and presentation of consolidated financial statements.
88 Annual Report 2014
VI. Vietnam Export Import Commercial Joint Stock Bank
CONSOLIDATED BALANCE SHEETas at 31 December 2014
B02/TCTD-HN
ASSETS
Cash, gold and precious stones
Balances with the State Bank of Vietnam
Due from and loans to other banks
Derivatives and other financial assets
Loans and advances to customers
Investment securities
Long-term investments
Due from other banksLoans to other banks
Loans and advances to customersProvision for loan losses
Available-for-sale investment securitiesHeld-to-maturity investment securitiesProvision for investment securities
Investments in associates
Other long-term investments
Provision for diminution in value of long-term investments
Notes 31 December 2014 31 December 2013VND million VND million
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Annual Report 2014 89
CONSOLIDATED BALANCE SHEET (continued)as at 31 December 2014
B02/TCTD-HN
Fixed assets
Other assets
TOTAL ASSETS
LIABILITIES
TOTAL LIABILITIES
Due to and borrowings from other banks
Customer deposits
Valuable papers issued
Other liabilities
Borrowings from the Government and the State Bank of Vietnam
Tangible fixed assets
Receivables
Cost
Interest and fees receivable
Accumulated depreciation
Other assets
Due to other banks
Interest and fees payable
Intangible fixed assets
Provision for impairment of other assets
Borrowings from other banks
Other payablesProvision for contingent liabilities and off-balance sheet commitments
CostAccumulated amortization
Notes 31 December 2014 31 December 2013VND million VND million
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90 Annual Report 2014
VI. Vietnam Export Import Commercial Joint Stock Bank
CONSOLIDATED BALANCE SHEET (continued)as at 31 December 2014
B02/TCTD-HN
Notes 31 December 2014 31 December 2013VND million VND million
OFF-BALANCE-SHEET ITEMS
Contingencies
Loans guarantees
Letters of credit
Other guarantees
Other commitments
Commitments
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Notes 31 December 2014 31 December 2013VND million VND million
OWNERS' EQUITY
TOTAL OWNERS' EQUITY
TOTAL LIABILITIES AND OWNERS' EQUITY
Capital
ReservesRetained earnings
Charter capitalFund for capital expenditure Share premium
Treasury shares
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Annual Report 2014 91
CONSOLIDATED INCOME STATEMENTfor the financial year ended 31December 2014
B03/TCTD-HN
Notes 2014 2013VND million VND million
Interest and similar income
Fees and commission income
Other income
Interest and similar expenses
Fees and commission expenses
Other expenses
TOTAL OPERATING INCOMEPersonnel expenses Depreciation and amortization charges Other operating expenses TOTAL OPERATING EXPENSES
Provision for creditlossesReversal/(provision) for contingent liabilities and off-balance sheet commitments
Net interest and similar income
Net fees and commission incomeNet gain/(loss) from foreign currencies and gold trading
(Loss)/gain from other income
Net loss from dealing of investment securities
(Loss)/gain from long-term investments
Profit before credit loss expenses
Credit loss expenses
PROFIT BEFORE TAXCurrent corporate income tax expenseDeferred corporate income tax expenseTotal corporate income tax expensesPROFIT AFTER TAX
Basic earnings per share (VND)
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92 Annual Report 2014
CONSOLIDATED CASH FLOW STATEMENT for the financial year ended 31 December 2014
B04/TCTD-HN
VI. Vietnam Export Import Commercial Joint Stock Bank
Notes 2014 2013VND million VND million
Interest and similar receipts
Net operating cash flows before changes in operating assets and liabilities
Net cash flows from operating activities
Interest and similar paymentsFees and commission receiptsNet receipts/(payments) from dealing of securities, gold and foreign currenciesOther operating income/(expense)Recovery from bad debts written-off previouslyPayments to employees and other operating expenses
Corporate income tax paid during the year
Decreasein due from and loans to other banksIncreasein trading securitiesIncrease in derivatives and other financial assetsIncrease in loans and advances to customers
(Increase)/decrease in other assets
(Decrease)/increase in due to and borrowings from other banksIncrease in customer depositsDecrease in valuable papers issued
Decrease in derivatives and other financial liabilitiesDecrease in other liabilities
Reserves utilized during the year
(Decrease)/increase in borrowings from the Government and the State Bank of Vietnam
Decrease in provisions for writing-off of loans to customers
Changes in operating assets
Changes in operating liabilities
CASH FLOWS FROM OPERATING ACTIVITIES
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Annual Report 2014 93
CONSOLIDATED CASH FLOW STATEMENT (continued)for the financial year ended 31 December 2014
B04/TCTD-HN
Notes 2014 2013VND million VND million
CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Cash flows used in investing activities
Net cash flows used in financing activities
Net cash flows in the year
Cash and cash equivalents at the beginningof the year
Cash and cash equivalents at the end of the year
Purchase of fixed assets
Dividends paid to shareholders
Proceeds from disposal of fixed assets
Payments for repurchase of treasury shares
Payments for investments in other entities
Receipts from investments in other entities
Dividends receipts and profit shared from long-term investments
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94 Annual Report 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS as at and for the financial year ended 31 December 2014
B05/TCTD-HN
CORPORATE INFORMATION1.
Vietnam Export Import Commercial Joint Stock Bank (“the Bank”) is a commercial joint stock bank incorporated in the Socialist Republic of Vietnam.
The charter capital of the Bank as at 31December2014 was VND12,355,229 million (31 December 2013: VND12,355,229 million) which was fully contributed by the shareholders.
As at 31 December 2014, the Bank has an associate as follows:
The Bank is the founding shareholder and has significant influence on the operation of VDSC through its representatives in the Board of Directors and rights to participate in making financial and operatingpolicies of this associate.
Viet Dragon Securities Corporation (VDSC) Securities activities
The head office of the Bank is located at 8th Floor, Office No. L8-01-11+16, Vincom Center, 72 Le Thanh Ton Street and 45A Ly Tu Trong Street, Ben Nghe Ward, District 1, Ho Chi Minh City. As at 31 December 2014, the Bank had one (1) Head Office, forty four (44) branches located in cities and provinces in Vietnam and one (1) representative office in Hanoi.
As at 31December 2014, the Bank has a wholly-owned subsidiary named Eximbank Asset Management Company with charter capital of VND1,700,000 million which was established pursuant to Business Registration Certificate No. 0310280974 issued by the Department of Planning and Investment of Ho Chi Minh City on 24 September 2012. The actual contributed capital of the subsidiary as at 31December 2014was VND955,000 million (31 December 2013: VND955,000 million).
Total number of employees of the Bank and its subsidiary as at 31 December 2014 was 5,728 (31 December 2013: 5,362).
Establishment and Operations
Charter capital
Operation network
Subsidiary and associates
Employees
The Bank was established on 24 May 1989 under Decision No. 140/CT issued by the Chairman of Council of Ministers under the name of Vietnam Export Import Bank. On 6 April 1992, the State Bank of Vietnam (“SBV”) granted License No. 11/NH-GP to the Bank which approved its operational duration of 50 years.
The Bank's principal activities are to provide banking services including mobilizing and receiving short, medium and long-term deposits from various organizations and individuals; providing short, medium and long-term loans to various organizations and individuals based on the Bank's nature and capacity of the capital resources; foreign exchange trading; international trade finance services, discount of commercial papers, bonds and other valuable papers; settlement services and other banking services as allowed by the State Bank of Vietnam.
Operating License No. Nature of business Ownership bythe Bank
VI. Vietnam Export Import Commercial Joint Stock Bank
Annual Report 2014 95
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
FISCAL YEAR AND ACCOUNTING CURRENCY
ACCOUNTING STANDARDS AND SYSTEM
Fiscal year
Compliance with Vietnamese Accounting Standards and Accounting System for Credit Institutions
Accounting standards and system
Accounting currency
2.
3.
2.1
3.1
3.2
2.2
The Bank and its subsidiary's fiscal year starts on 1 January and ends on 31 December.
The Bank and its subsidiary maintain their accounting records in Vietnam Dong (“VND”). However, due to the Bank and its subsidiary's large scale of operations, for the purpose of preparing these consolidated financial statements, the amounts are rounded to and presented in millions of Vietnam Dong (VND million). This presentation does not impact the view of the readers on the consolidated financial position of the Bank and its subsidiary and the consolidated results of their operations and their consolidated cash flows.
The Board of Management confirms that the accompanying consolidated financial statements are prepared in accordance with the Vietnamese Accounting Standards and Accounting System for Credit Institutions.
Decision No. 149/2001/QD-BTC dated 31 December 2001 on the Issuance and Promulgation of Four Vietnamese Standards on Accounting (Series 1);
Decision No. 165/2002/QD-BTC dated 31 December 2002 on the Issuance and Promulgation of Six Vietnamese Standards on Accounting (Series 2);
Decision No. 234/2003/QD-BTC dated 30 December 2003 on the Issuance and Promulgation of Six Vietnamese Standards on Accounting (Series 3);
Decision No. 12/2005/QD-BTC dated 15 February 2005 on the Issuance and Promulgation of Six Vietnamese Standards on Accounting (Series 4); and
Decision No. 100/2005/QD-BTC dated 28 December 2005 on the Issuance and Promulgation of Four Vietnamese Standards on Accounting (Series 5).
The consolidated financial statements of the Bank and its subsidiary are prepared in accordance with the Vietnamese Accounting System for Credit Institutions required under Decision No. 479/2004/QD-NHNN issued on 29 April 2004 by the State Bank of Vietnam and Circular No. 10/2014/TT-NHNN issued on 20 March 2014 by the State Bank of Vietnam supplementing and amending to Decision No. 479/2004/QD-NHNN; Decision No. 16/2007/QD-NHNN issued on 18 April 2007 by the Governor of the State Bank of Vietnam regarding the financial reporting mechanism for credit institutions and other Vietnamese Accounting Standards issued by the Ministry of Finance as per:
The accompanying consolidated financial statements have been prepared using accounting principles and practices generally accepted in Vietnam. Accordingly, the accompanying consolidated balance sheet, consolidated income statement, consolidated cash flow statement and notes to the consolidated financial statements and their utilization are not designed for those who are not informed about Vietnam's accounting principles, procedures and practices and furthermore are not intended to present the consolidated financial position, the consolidated financial performance and the consolidated cash flows in accordance with accounting principles and practices generally accepted in countries other than Vietnam.
96 Annual Report 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
ACCOUNTING STANDARDS AND SYSTEM (continued)
Consolidation offinancial statements
Use of estimates
Changes in accounting policies and disclosures
Classification of assets, making and use of provision
Going concern
3.
3.3
3.4
3.5
3.5.1
The consolidated financial statements include the financial statements of the Bank and of its subsidiary as at 31December. The financial statements of the subsidiary are prepared for the same reporting period as the Bank and using consistent accounting policies.
All intra-group balances, transactions, including unrealized profits resulting from intra-group transactions are eliminated in full.
The financial statements of subsidiary (presented at Note 1) are fully consolidated from the date when the control is transferred to the Bank. The control is achieved when the Bank has the power, directly or indirectly, to govern the financial and operating policies of subsidiary so as to obtain benefits from its activities. The operating results of subsidiary acquired or disposed during the yearare included in theconsolidated income statement from the date of acquisition or up to the date of disposal, as appropriate.
The preparation of theconsolidated financial statements requires the Board of Management make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities. These estimates and assumptions also affect the income and expenses and the resultant provisions. Such estimates are necessarily based on assumptions involving varying degrees of subjectivity and uncertainty and actual results may differ, resulting in future changes in related items.
The Board of Management of the Bank has assessed the Bank and its subsidiary's ability to continue as a going concern and recognized that the Bank and its subsidiary have sufficient resources to maintain their business in a definite future. In addition, the Board of Management is not aware of any significant uncertainties that may affect the Bank and its subsidiary's ability to continue as a going concern. Therefore, the consolidated financial statements are prepared on a going concern basis.
The accounting policies adopted by the Bank in the preparation of the consolidated financial statements for financial year ended 31 December 2014 are consistent with those followed in the preparation of the consolidated financial statements for the financial year ended 31 December 2013, except for the changes of accounting policy related to the below transactions:
On 21 January 2013, the State Bank of Vietnam issued Circular No. 02/2013/TT-NHNN regulating classification of assets, making and use of provision in the operations of credit institutions and foreign banks' branches (“Circular 02”). This Circular is effective from 1 June 2013. Subsequently, on 18 March 2014, the State Bank of Vietnam issued Circular No. 09/2014/TT-NHNN (“Circular 09”)amending and supplementing a number of articles of Circular 02 effective from 20 March 2014, in which amending the effectiveness of Circular 02 to 1 June 2014.
VI. Vietnam Export Import Commercial Joint Stock Bank
Annual Report 2014 97
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
ACCOUNTING STANDARDS AND SYSTEM (continued)
Changes in accounting policies and disclosures (continued)
3.
3.5
Classification of assets, making and use of provision (continued)
Accounting System for Credit institutions
3.5.1
3.5.2
Significant changes in the Bank's and its subsidiary's accounting policies as regulated by Circular 02 and Circular 09 are as follows:
On 20 March 2014, the State Bank of Vietnam issued Circular No. 10/2014/TT-NHNN amending and supplementing Accounting System for Credit institutions in accordance with Decision No. 479/2004/QD-NHNN (“Circular 10”) effective from 1 June 2014. The Bank and its subsidiary have applied the amended accounting system according to Circular 10 in the year.
The State Bank of Vietnam issued Circular No. 49/2014/TT-NHNN on 31 December 2014 - Amending and supplementing some articles of Decision No. 16/2007/QD-NHNN issued on 18 April 2007 regarding the financial reporting mechanism for credit institutions and Decision No. 479/2004/QD-NHNN issued on 29 April 2004 regarding the accounting system for Credit Institutions. Circular 49 is effective from 15 February 2015.
The Bank and its subsidiary are requiredto additionally classify the following assets:
- The amount used to purchase or entrusted to purchase unlisted corporate bonds;
- The amount entrusted to grant the credit;
- Interbank deposits (except for demand deposits);
- Loans under the form of credit card.
The amount used to purchase or entrusted to purchase corporate bonds which are notlisted on the stock market or not registered for trading on unlisted public company market (Upcom) (“unlisted bonds”), excluding unlisted bonds purchased from trusted funds that the trustor bears risk, is subject to a general and specific provision at the rates as regulated by Article 12 and Article 13 of Circular 02.
The Bank and its subsidiary are not required to make a general provision for deposits, loans, term purchase of valuable papers from other credit institutions and foreign banks' branches in Vietnam.
The Bank and its subsidiary are not required to make a provision for off-balance sheet commitments.
Collateral assets exceeding VND200 billion, or collateral assets of loans to related parties and loans subject to credit restrictions exceeding VND50 billion must be appraised by a professional valuer.
The Bank and its subsidiary are permitted to restructure or extend repayment schedule and keep the same loan group as prior to the restructuring or extension of loans and advances which meet requirements as regulated in Clause 3a, Article 10 of Circular 09. However, the restructuring or extension without changing the loan group is only performed one time and will be terminated by 1 April 2015.
98 Annual Report 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
ACCOUNTING STANDARDS AND SYSTEM (continued)
Regulation issued but not yet effective
3.
3.6
Significant changes as regulated in Circular 49 are as follows:
- Amending and supplementing some articles of Decision No. 16/2007/QD-NHNN dated 18 April 2007 issued by the Governor of the State Bank of Vietnam regarding the financial reporting mechanism for credit institutions:
- Amending and supplementing some articles of Decision No. 479/2004/QD-NHNN dated 29 April 2004 of the Governor issued by the State Bank of Vietnam regarding the accounting system for credit institutions:
The Bank and its subsidiary will apply this Circular when it becomes effectively.
Subsidiaries/associates: subsidiaries and associates are defined in accordance with the Law on Credit Institutions;
The deadline for submission and receiving the financial statements: the Circular clearly specifies the time frame for submitting and receiving the unaudited annual financial statements, the audited annual financial statements, the interim financial statements, reviewed interim financial statements, and other periodical financial statements;
The form and time frame of publication of the financial statements: the Circular clearly specifies the form of publication of the annual financial statements, the interim financial statements and the semi-annual financial statements; the time frame of publication of the financial statement for the listed credit institutions, the large public credit institutions and the other credit institutions;
The forms of the financial statements as promulgated in Decision No. 16/2007/QD-NHNN are replaced by new forms as promulgated in Circular 49.
Amend and supplement the chart of account as revised by Circular No. 10/2014/TT-NHNN;
The primary change is to revise the method of defining subsidiaries and associates in accordance with Law on Credit Institutions.
Amend and supplement the accounting treatments as revised by Circular No. 10/2014/TT-NHNN for the following accounts:
Account 341 - Investment in subsidiaries in VND
Account 343 - Investment in associates in VND
Account 345 - Investment in subsidiaries in foreign currency
Account 347 - Investment in associates in foreign currency
VI. Vietnam Export Import Commercial Joint Stock Bank
Annual Report 2014 99
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
SIGNIFICANT ACCOUNTING POLICIES
Cash and cash equivalents
Loans and advances to customers
Provision for credit losses
4.
4.1
4.2
4.3
Cash and cash equivalents comprise cash, gold, precious stones, balances with the State Bank of Vietnam, treasury notes, and other short-term valuable papers which can be discounted with the State Bank of Vietnam, due from and loans to other banks on demand or with an original maturity of less than three months from transaction date and securities investments with maturity of less than three months from purchase date that are readily convertible into certain amounts of cash and subject to insignificant risk of change in value.
Loans and advances to customers are presented at the principal amounts outstanding at the end of the financial year.
Loans classification
Loans to customers are classified and provided for allowance in accordance with the Law on Credit Institutions No. 47/2010/QH12 effective from 1 January 2011; Decision No. 1627/2001/QD-NHNN dated 31 December 2001 issued by the SBV on lending statutory; Decision No. 127/2005/QD-NHNN dated 3 February 2005 amending and supplementing Decision No. 1627/2001/QD-NHNN;
Before 1 June 2014, loan classification, provision and use of provision against credit risks in the Bank's and its subsidiary's operations were implemented in accordance with Decision No. 493/2005/QD-NHNN dated 22 April 2005, Decision No. 18/2007/QD-NHNN dated 25 April 2007 and Decision No. 780/QD-NHNN dated 23 April 2012 issued by the State Bank of Vietnam.
Since 1 June 2014, the Bankand its subsidiary have applied Circular 02/2013/TT-NHNN dated 21 January 2013 and Circular 09/2014/TT-NHNN dated 18 March 2014 issued by the State Bank of Vietnam on loan classification, provisions and use of provisions against credit risks in the Bank's and its subsidiary's operations.
The Bank's and its subsidiary's loan are assessed and classified based on the quantitative factors and other factors as follows:
Loan group
Current
Special mention
Current debts which are assessed as fully and timely recoverable, both principals and interests;
Debts which are overdue from 10 days to 90 days;
Debts which are restructured the repayment term for the first time;
Debts which are classified into the group of lower or higher risks once theymeet the regulated conditions.
Debts which are overdue less than 10 days and assessed as fully recoverable, both overdue principals and interests, and fully recoverable, both remaining principals and interests on time;
Debts which are classified into the group of lower risks once they meet the regulated conditions.
Classification criteria
100 Annual Report 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
SIGNIFICANT ACCOUNTING POLICIES (continued)
Provision for credit losses (continued)
4.4.3
Loans classification (continued)
Loan group
Substandard Debts which are overdue from 91 days to 180 days;
Debts which violated Credit Institutions Law and are overdue less than 30 days from the date of recovery decision;Debts which arein the recovery period according to the SBV's inspection conclusions;Debts which are classified into the group of lower or higherrisks once they meet the regulated conditions;Debts which are classified in accordance with the SBV's inspection conclusions.
Doubtful Debts which are overdue from 181 days to 360 days;Debts which are restructured the repayment term for the first time but still overdue less than 90 days under such restructured repayment term;
Loss Debts which are overdue more than 360 days;Debts which are restructured the repayment term for the first time but still overdue from 90 days and above under suchfirst restructured repayment term;Debts which are restructured the repayment term for the second time but still overdue under such second restructured repayment term;Debts which are restructured the repayment term for the third time or later, regardless of debts are overdue or not;
Debts which must be recovered under the SBV's inspection conclusions but fail to be recovered more than 60 days from the recovery date;Debts of customers being credit institutions which are under the SBV's special control status as announce by the SBV or foreign banks' branches which capitaland assets are blockaded;Debts which are classified into the group with higherrisks once they meet the regulated conditions;Debts which are classified in accordance with the SBV's inspection conclusions.
Debts which violated Credit Institutions Law and are overdue more than 60 days from the date of recovery decision;
Debts which are restructured the repayment term for the second time;Debts which violated Credit Institutions Law and are overdue from 30 days to 60 days from the date of recovery decision;Debts which must be recovered according to the SBV's inspection conclusions but fail to be recovered up to 60 days from the recovery date;Debts which are classified into the group of lower or higherrisks once they meet the regulated conditions;Debts which are classified in accordance with the SBV's inspection conclusions.
Debts which are extended the repayment term for the first time;Debts which interests are exempted or reduced due to customers are unable to pay all interests under credit contracts;
Classification criteria
VI. Vietnam Export Import Commercial Joint Stock Bank
Annual Report 2014 101
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
SIGNIFICANT ACCOUNTING POLICIES (continued)
Provision for credit losses (continued)
4.4.3
Loans classification (continued)
Time of setting up provisions
Specific provision
Debts shall be classified into the group of lower risks in the following cases:
Debts shall be classified into the group of higher risks in the following cases:
All debt balances granted to one customer must be classified into the same group. For customers who have two or more debts, any debt has been classified into the group of higher risks, the other debts should be also classified into the group with highest risks.
Loans classified as Substandard, Doubtful and Loss are considered non-performing loans.
According to Article 3 of Decision No. 493/2005/QD-NHNN and Article 8 of Circular 02, the balance of outstanding loans is classified at the end of each quarter for the first three quarters of the year and as at 30 November for Quarter IV of the financial year.
Specific provision is created based on the net loan and advances exposure for each borrower using fixed provision rates as follows:
Net credit exposure for each borrower is calculated by subtracting from the loan balance the discounted value of collateral assets which is subject to certain accepted discount rates in accordance with Circular 02.
Customers have made full repayment of the overdue principal and interests (including interests on overdue principals) and the principals and interests of the following repayment terms in at least three months for long and medium-term debts and one month for short-term debts, from the date of fully repayment of the overdue principals and interest;
Having supporting documents which prove that customers have paid debts;
There are negative changes in the environment and business sector which have negative impact directly on the borrowers' repayment capability;Ratios on profitability, solvency, debts to capital, cash flow, borrowers' repayment capability are impaired continuously or change significantly according to the worse tendency over three consecutive times of assessment and classification;
Customers fail to provide fully, timely, and honestly financial information at the request of credit institutions, foreign banks' branches for assessment on the repayment capability of borrowers;
Debts which have been classified into Group 2, Group 3, Group 4 as above for one year or longer but do not sufficient conditions to classify into group of lower risks;Debts which the credit granting has been administratively sanctioned as regulated by law.
Having sufficient information and documents to assess the borrowers' capability of fully and timely repayment of remaining principals and interest.
Group Category
Current
Special mention
Substandard
Doubtful
Loss
Specific provision rate
102 Annual Report 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
SIGNIFICANT ACCOUNTING POLICIES (continued)
Provision for credit losses (continued)
Loans sold to Vietnam Asset Management Company (“VAMC”)
Investment securities
4.4.3
4.4
4.5
General provision
Bad debt resolution
In accordance with Circular No. 02/2013/TT-NHNN, a general provision is made for credit losses which have not been identified yet during the process of loan classification and specific provision and for the credit institutions' potential financial difficulties due to deterioration in loan quality. As such, the Bank is required to fully create and maintain a general provision at 0.75% of total loans and advances to customers, which are classified in Group 1 to 4, except for the items below:
Loans are sold to VAMC at the carrying amount in accordance with Decree No. 53/2013/ND-CP effective from 9 July 2013 on “Establishment, structure and operations of VAMC”, Circular No. 19/2013/TT-NHNN on “Regulations on selling, purchasing and writing-off of bad debts of VAMC” and Official Letter No. 8499/NHNN-TCKT on “Accounting guidance on selling and purchasing of loan transactions between VAMC and credit institutions”. Accordingly, selling price equals to the outstanding loan balance minus (-) unused balance of specific provision. Special bonds will be issued by VAMC for exchange of loans purchased.
Special bonds issued by VAMC are valuable papers issued by VAMC for purchase of bad debts from the Bank and its subsidiary which have specific terms. Special bonds are recognized at par value at the transaction date and continuously recorded at par value in subsequent periods. Par value of special bonds, which is corresponding to the bad debts sold, is the difference between the outstanding loan balance and unused balance of specific provision of loan.
Periodically, the Bank and its subsidiary calculate and make annual specific provision not less than 20% of the special bonds' par value. Specific provision for special bonds is recognized in “Credit loss expenses” of the consolidated income statement. These special bonds are not required to make general provision.
Upon the sale of loans to VAMC, loan balances and corresponding provisions are written off and special bonds issued by VAMC are recognized at par value determined as difference between the loan balance sold and the corresponding specific provision. Upon receiving loans previously sold to VAMC, annual specific provisions for special bonds are used for writing-off of bad debts and the difference between provision for credit losses and the remaining outstanding loan balance/bond value is recognized in “Other income” of the consolidated income statement.
The provision is recorded in the consolidatedincome statement as an expense and will be used to write off bad debts. According to Circular 02/2013/TT-NHNN, the Bank should establish the Bad Debt Resolution Committee to approve writing off of loans classified in Group 5 or loans of corporate borrowers which are bankrupted or liquidated or individual borrowers who are deceased or missing.
(i)
(i)
(ii)
Deposits (except for demand deposits) at domestic credit institutions, foreign banks' branches in Vietnam in accordance with the laws and regulations and deposits at foreign credit institutions; and
Special bonds issued by VAMC
Loans to other credit institutions, or purchase of term valuable papers issued by other credit institutions and foreign banks' branches in Vietnam
Held-to-maturity securities 4.5.1
VI. Vietnam Export Import Commercial Joint Stock Bank
Annual Report 2014 103
Investment securities (continued)4.5
Held-to-maturity securities include debt securities which are acquired by the Bank and its subsidiary for earning interest and which the Bank and its subsidiary have the intention and ability to hold to maturity. Held-to-maturity securities have fixed or determinable payments and maturity date. In case these securities are sold before maturity, they will be reclassified into available-for-sale securities.
Debt securities are initially recognized at face value at the purchase date. The accrued interest income (for debt securities with interest payment in arrears) and deferred interest income (for debt securities with interest payment in advance) are recognized in a separate account. Discount/premium which is the negative/positivedifference between the cost and the amount being the face value plus (+) accrued interest income (if any) or minus (-) deferred interest income (if any) is also recognized in a separate account.
In subsequent periods, these securities are continuously stated at face value, and the discount/premium (if any) is amortized to the consolidated income statement on a straight-line basis over the estimated remaining term of securities. The interest received in arrears is recognized in the principle that: the accrued interest prior to the purchase date is recognized as a deduction in the value of such securities corresponding to accrued interest receivable and the accrued interest after the purchase date is recognized into the income of the Bank and subsidiary under the cumulative method. The interest received in advance is amortized to the interest income from investment securities on a straight-line basis over the term of securities investment.
Periodically, held-to-maturity investments are subject to review of impairment. Provision for diminution in value of securities is made when their carrying value is higher than market value in compliance with Circular No. 228/2009/TT-BTC dated 7 December 2009. In case fair value or market prices of securities are not available or cannot be determined reliably, no provision is calculated. Provision for diminution in value is recognized intothe consolidated income statement in “Net gain/(loss) from dealing of investment securities”.
Corporate bonds which are not listed on the stock market or not registered on unlisted public company market should be made provision for credit risk in accordance with Circular No. 02/2013/TT-NHNN as presented in Note 4.3.
(ii) Other held-to-maturity securities
Held-to-maturity securities (continued)
Available-for-sale securities
Available-for-sale securities include debt and equity securities, which are held by the Bank and/or its subsidiary for the purpose of investment and available-for-sale, not regularly traded but can be sold when there is a benefit. For equity securities, the Bank and its subsidiary are also neither the founding shareholder nor the strategic partner, or do not have the ability to make certain influence in establishing and making the financial and operating policies of the investees through a written agreement on assignment of its officers to the Board of Directors/Management.
Debt securities are recognized, measured, considered for diminution of value and made provision similarly with held-to-maturity securities as presented in Note 4.5.1.(ii).
Available-for-sale equity securities are initially recognized at cost at the purchase date and continuously presented at cost in subsequent periods.
Periodically, available-for-sale investments are subject to review of impairment. Provision for diminution in value of securities is made when carrying value is higher than market value in compliance with Circular No. 228/2009/TT-BTC dated 7 December 2009. In case fair value or market prices of securities are not available or cannot be determined reliably, no provision is calculated. Provision for diminution in value is recognized into the consolidated income statement in “Net gain/(loss) from dealing of investment securities”.
4.5.1
4.5.2
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
SIGNIFICANT ACCOUNTING POLICIES (continued)4.
104 Annual Report 2014
Repurchase and reverse repurchase agreements
Long-term investments
Securities sold under agreements to repurchase at a specific date in the future (“repos”) are not derecognized from the consolidated balance sheet. The corresponding cash received is recognized in the consolidated balance sheet as a liability item. The difference between the sale price and repurchase price is treated as interest expense and is amortized on a straight-line basis at the contractual interest rate to the consolidated income statement over the term of the agreement.
Conversely, securities purchased under agreements to resell at a specific date in the future (“reverse repos”) are not recognized in the consolidated balance sheet. The corresponding cash paid is recognized in the consolidated balance sheet as an asset item. The difference between the purchase price and resale price is treated as interest income and is accrued on a straight-line basis at the contractual interest rate to the consolidated income statement over the term of the agreement.
An associate is an entity in which the Bank has significant influence and which is neither its subsidiary nor joint venture.Investments in associates are accounted for using the equity method.
The financial statements of the associates used for consolidation purpose under the equity method are prepared for the same accounting period as the Bank and the accounting policies are applied consistently with the Bank's accounting policies for similar transactions or events in the similar circumstances.
Other long-term investments represent capital contributions and investments in other entities which the Bank and its subsidiary hold less than 20% voting rights and are the founder shareholder; or the strategic partner; or have ability to make certain influence (not significant influence) on preparing and making the financial and operating policies of the investees through a written agreement on assignment of its representatives to the Board of Directors/Board of Management.
Provision is made when the investees are operating at loss (unless losses are previously estimated in the initial business plan) in accordance with Circular No. 228/2009/TT-BTC issued by the Ministry of Finance on 7 December 2009 and Circular No. 89/2013/TT-BTCissued by the Ministry of Finance on 28 June 2013 amending Circular No. 228/2009/TT-BTC. Provision is calculated as the difference between the actual contributed capital of all parties in the investee and the actual owners' equity of the investee multiplying by (x) the proportion of capital contributed by the Bank and its subsidiary to total actual capital contribution of all parties in the investee.
Other long-term investments are initially recognized at cost at the purchase date and continuously presented at cost less provision for diminution in value of long-term investments in subsequent periods (if any).
Under the equity method, investments in associates are initially recognized at cost and the carrying value of the investments which may increase or decrease reflects the Bank's share in net assets of the associates. The losses over the cost of investment in associate are recognized if they are the Bank's liabilities. The consolidated income statement reflects the Bank's share of the operating result of the associates. Where there has been a change recognized directly in the equity of the associates, the Bank recognizes its share of such changes in the consolidated balance sheet.
4.6
4.7
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
SIGNIFICANT ACCOUNTING POLICIES (continued)4.
Investments in associates
Other long-term investments
Provision for diminution in value of long-term investments
4.7.1
4.7.2
4.7.3
VI. Vietnam Export Import Commercial Joint Stock Bank
Annual Report 2014 105
Tangible fixed assets
Intangible fixed assets
Lease
Depreciation and amortization
Tangible fixed assets are stated at cost less accumulated depreciation.
Intangible fixed assets are stated at cost less accumulated amortization.
The cost of an intangible fixed asset comprises of its purchase price and any directly attributable costs of bringing the intangible fixed asset to working condition for its intended use.
Expenditures for improvements and renewals are added to the carrying amount of the assets and other expenditures are charged to the consolidated income statement as incurred.
When intangible fixed assets are sold or retired, their costs and accumulated amortization are removed from the consolidated balance sheet and any gain or loss resulting from their disposal is included in the consolidated income statement.
Lease payments of operating leasing contract are recognized into the consolidated income statement on a straight-line basis over the lease term.
The Bank and its subsidiary record operating lease assets into consolidated financial statements. Income from operating lease is recognized on a straight-line basis over the term of the lease, independent from payment method. Operating lease expenses, including depreciation expense of leased assets, are recorded as expenses when incurred.
Depreciation and amortization of tangible and intangible fixed assets are calculated on a straight-line basis over the estimated useful lives of the assets, as follows:
The cost of a tangible fixed asset comprises of its purchase price and any directly attributable costs of bringing the tangible fixed asset to working condition for its intended use.
Expenditures for additions, improvements and renewals are added to the carrying amount of the assets, expenditures for maintenance and reparation are charged to the consolidated income statement as incurred.
When tangible fixed assets are sold or retired, their costs and accumulated depreciation are removed from the consolidated balance sheet and any gain or loss resulting from their disposal is included in the consolidated income statement.
4.8
4.9
4.10
4.11
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
SIGNIFICANT ACCOUNTING POLICIES (continued)4.
The Bank or its subsidiary as lessee
The Bank or its subsidiary as lessor
4.10.1
4.10.2
Buildings and structure Machines and equipmentVehiclesOffice equipmentOther tangible fixed assetsComputer software
25 - 50 years5 - 10 years3 - 10 years3 - 10 years5 - 10 years5 - 10 years
106 Annual Report 2014
Receivables
Prepaid expenses
Recognition of income and expense
Foreign currency transactions
Payables and accruals
Overdue period
From over six months up to one yearFrom one year under two yearsFrom two years under three yearsFrom three years and above
Provision rate
Receivables other than receivables from credit activities of the Bank and its subsidiary are initially recognized at cost and continuously presented at cost in subsequent periods.
Provision for receivables is set up based on the aging schedule of overdue debts or expected losses which may occur in case where a debt has not been due for payment but an economic organization is bankrupted or liquidated; or individual debtor is missing, run away, being prosecuted, under a trial or serving sentence or dead. Provision expense occurred will be recognized into “Other operating expenses” for the year.Provision for overdue receivables is made in accordance with Circular No. 228/2009/TT-BTC issued on 7 December 2009 by the Ministry of Finance as follows:
Prepaid expenses are reported as short-term or long-term prepaid expenses on the consolidated balance sheet and amortized over the period for which the amount are prepaid or the period in which economic benefits are generated in relation to these expenses.
Interest income and expense are recognized in the consolidated income statement on an accrual basis. The recognition of accrued interest income is suspended when a loan is classified in groups 2 to 5 in accordance with Circular No. 02/2013/TT-NHNN and Circular No.09/2014/TT-NHNN. Suspended interest income is reversed and monitored in the off-balance sheet items, and recognized in the consolidated income statement upon actual receipt.
Income from securities investment is determined by the difference between the selling price and the cost of securities sold.
Fees and commissions are recognized when services are provided.
Dividend income on equity investment is recognized in the consolidated income statement when the Bank's and its subsidiary's right to receive the payment is established. For stock dividends and bonus shares, no dividend income isrecognized. Instead, only the number of shares held by the Bank and its subsidiary is updated.
Payables and accruals are recognized for amounts to be paid in the future for goods and services received, whether or not billed to the Bank and its subsidiary.
The Bank and its subsidiary maintain their accounting system and record all transactions in original currencies. Monetary assets and liabilities denominated in foreign currencies at period-end are translated into VND using exchange rates ruling at the ending date of the financial year (see list of exchange rates of applicable foreign currencies against VND as at 31 December 2014 in Note 42). Income and expenses arising in foreign currencies during the yearare converted into VND at rates ruling at the transaction dates. Unrealized foreign exchange differences arising from the revaluation of monetary assets and liabilities at the date of monthly financial statements are recognized in “Foreign currency differences” in owners' equity and are transferred into the consolidated income statement at the end of the financial year.
4.12
4.13
4.14
4.15
4.16
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
SIGNIFICANT ACCOUNTING POLICIES (continued)4.
VI. Vietnam Export Import Commercial Joint Stock Bank
Annual Report 2014 107
Treasury shares
Corporate income tax
Fiduciary assets
Provision for off-balance-sheet commitments
4.17
4.18
4.19
4.20
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
SIGNIFICANT ACCOUNTING POLICIES (continued)4.
Own equity instruments which are reacquired (treasury shares) are recognized at cost and deducted from equity. No gain or loss is recognized in profit or loss upon purchase, sale, issue or cancellation of the Bank and its subsidiary's own equity instruments.
Current corporate income tax assets and liabilities for the current and prior periods are measured at the amount expected to be paid to or recovered from the taxation authorities. The tax rates and tax laws effective at the consolidated balance sheet dateare applied.
Deferred corporate income tax is provided for temporary differences between the tax base of assets and liabilities and their carrying amount for financial reporting purpose at the consolidated balance sheet date.
Deferred corporate income tax liabilities are recognized for all taxable temporary differences.
Deferred corporate income tax assets are recognized for all deductible temporary differences, carried forward unused tax credit and unused tax losses, to the extent that it is probable that future taxable profit will be available against which deductible temporary differences, carried forward unused tax credit and unused tax losses can be utilized.
Deferred corporate income tax assets and liabilities are measured at the tax rates that are expected to apply in the financial year when the asset is realized or the liability is settled based on tax rates and tax laws effective at the consolidated balance sheet date.
Deferred corporate income tax is charged or credited to the consolidated income statement, except when it relates to items recognized directly to equity, in which case the deferred corporate income tax is also dealt with in the equity account.
Assets held in a fiduciary capacity are not reported in the consolidated financial statements as they are not owned by the Bank and its subsidiary.
According to Circular No. 02/2013/TT-NHNN, credit institutions only classify off-balance-sheet commitments for managing and monitoring credit quality, not for making provision purpose.
According to Circular 02/2013/TT-NHNN and Circular 09/2014/TT-NHNN issued by the State Bank of Vietnam, credit Institutions are required to classify for guarantees, acceptances for payment and irrevocable and unconditional loan commitments with specific effective date (generally called “Off-balance-sheet commitments”) into groups as stated in Article 10 of Circular No. 02/2013/TT-NHNN. Accordingly, off-balance sheet commitments are classified into groups such as Current, Special Mention, Substandard, Doubtful and Loss based on the overdue status and other qualitative factors.
Current corporate income tax is charged or credited to the consolidated income statement, except when it relates to items recognized directly to equity, in which case the current corporate income tax is also dealt with in equity.
Current corporate income tax assets and liabilities are offset when there is a legally enforceable right for the Bank and its subsidiary to set off current corporate income tax assets against current tax liabilities and when the Bank and its subsidiary intend to settle their current corporate income tax assets and liabilities on a net basis.
The Bank and its subsidiary's tax returns are subject to examination by the tax authorities. Due to the application of tax laws and regulations to many types of transactions is susceptible to varying interpretations, amounts reported in the consolidated financial statements could be changed at a later date upon final determination by the tax authorities.
Current corporate income tax
Deferred corporate income tax
4.18.1
4.18.2
108 Annual Report 2014
Derivatives
Offsetting
Employee benefits
Forward and swap foreign currency contracts
Option foreign currency contracts
4.21
4.22
4.23
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
SIGNIFICANT ACCOUNTING POLICIES (continued)4.
For forward and swap contracts, the difference between VND equivalent of a foreign currency which the Bank is committed to buy/sell translated at contractual exchange rate and spot rate at the effective date of the contract is recorded right at the effective date of the contract as an asset item – “Derivatives and other financial assets” if it is positive or as a liability item – “Derivatives and other financial liabilities” if it is negative. This difference will then be allocated to “Net gain/(loss) from foreign currencies and gold trading” on a straight-line basis over the contract term. At the consolidated balance sheet date, commitments under forward contracts are revaluated at the Bank's spot exchange rate as at that date. Gain/loss arising from revaluation is recognized in the consolidated balance sheet and transferred into the consolidated income statement at the end of financial year.
Option foreign currency contracts are monitored in the off-balance-sheet items. The difference between the market price and expected price is recognized at each time of revaluation as an asset item - “Interest receivables from option transactions” or a liability item - “Interest payables from option transactions”.
Financial assets and financial liabilities are offset and reported at the net amount in the consolidated balance sheet if, and only if, the Bank and its subsidiary have an enforceable legal right to offset financial assets against financial liabilities and the Bank and its subsidiary have intention to settle on a net basis, or the realization of the assets and settlement of liabilities is made simultaneously.
Post employment benefits are paid to retired employees of the Bank and its subsidiary by the Social Insurance Agency, which belongs to the Ministry of Labour, War Invalids and Social Affairs. The Bank and its subsidiary are required to contribute to these post employment benefits by paying social insurance premium to the Social Insurance Agency at the rate of 18% of an employee's basic salary on a monthly basis. The Bank and its subsidiary have no further obligation to fund the post employment benefits of its employees, other than the liability to pay Social Insurance Agency on a monthly basis.
Voluntary resignation benefits: The Bank and its subsidiary have the obligation, under the Vietnam Labour Code, to pay allowance arising from voluntarily resignation of employees, equal to one-half month's salary plus salary allowances (if any) for each year of employment until 31 December 2008. Since 1 January 2009, the salary used in this calculation will be the average monthly salary of the latest six-month period up to the resignation date.
Retrenchment benefits: The Bank and its subsidiary have the obligation, under the Vietnam Labour Code, to pay allowance to employees who are retrenched as a result of the organizational restructuring or technological changes. In such case, the Bank and its subsidiary will pay to employees an allowance for loss of work equivalent to the aggregate amount of one month's salary for each year of employment, but no less than two months' salary.
According to Circular No. 04/2009/TT-BLDTBXH guiding the detailed implementation of Decree No. 127/2008/ND-CP on unemployment insurance, the Bank and its subsidiary are obliged to pay unemployment insurance at 1% of their salary fund used to pay for unemployment insurance and simultaneously deduct 1% of salary of each employee to pay to the Unemployment Insurance Fund from 1 January 2009.
The Bank and its subsidiary's employees, who reach to their retirement age, are entitled to an allowance equivalent to the aggregate amount of three months' current wages (taken from pension fund).
Post employment benefits
Voluntary resignation and retrenchment benefits
Unemployment insurance
4.23.1
4.23.2
4.23.3
VI. Vietnam Export Import Commercial Joint Stock Bank
Annual Report 2014 109
Nil balances
Balances with the State Bank of Vietnam (SBV) include settlement and compulsory deposits. During the year, compulsory deposits in VND and settlement deposits in foreign currencies earned interest at rates of 1.20% p.a. and 0.05% p.a., respectively.
The compulsory deposit rates required by the SBV as at 31 December2014 were as follows:
In the year, the Bank has complied with the SBV's requirements regarding the compulsory deposits with the SBV.
Reserves are computed for customer demand deposits and term deposits with maturity of less than 12 months in VND and in foreign currencies at 3.00% and 8.00%, respectively.
Reserves are computed for term deposits with maturity of 12 months and above in VND and in foreign currencies at 1.00% and 6.00%, respectively.
Items or balances required by the Decision No.16/2007/QD-NHNN dated 18 April 2007 issued by the State Bank of Vietnam on promulgation of financial statement reporting for credit institutions that are not shown in these financial statements indicated nil balances.
4.24
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
SIGNIFICANT ACCOUNTING POLICIES (continued)
CASH, GOLD AND PRECIOUS STONES
BALANCES WITH THE STATE BANK OF VIETNAM
4.
5.
6.
-
-
Cash on hand in VND
Cash on hand in foreign currencies
Gold
31 December 2014
VND million
31 December 2013
VND million
,
,
,
,,
,
,
,
,,
In VND
In foreign currencies
31 December 2014
VND million
31 December 2013
VND million
,
,
,
,
,
,
,
,
,
,
,
,
110 Annual Report 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
DUE FROM AND LOANS TO OTHER BANKS7.
Due from other banks7.1
Loans to other banks
Classification of due from other banks and loans to other banks
7.2
7.3
VI. Vietnam Export Import Commercial Joint Stock Bank
31 December 2014
VND million
31 December 2013
VND million
Due from other banks
Loans to other banks
,
,
,
,
,
,
,
,
,
,
,
,
31 December 2014
VND million
31 December 2013
VND million
Demand deposits with other banks
Term deposits with other banks
In VND
In VND
In foreign currencies
In foreign currencies
,
,
,
,
,
,
,
,
,
, ,
,
,
,
,
,
,
,
31 December 2014
VND million
31 December 2013
VND million
Due from other banks
Loans to other banks- Current
- Current
,
,
,
,,
,
,
,
,,
,
,
,
,,
,
,
,
,,
31 December 2014
VND million
31 December 2013
VND million
Loans to other banks in VND
Loans to other banks in foreign currencies
,
,
,
,
,
, ,
,
,
,
,
,
Annual Report 2014 111
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS
LOANS AND ADVANCES TO CUSTOMERS
8.
9.
Analysis of loans by quality9.1
Nominal amount (using the exchange rate at the
effective date)
Carrying value (using the exchange rate at the balance sheet date)
VND million VND millionAssets Liabilities
VND million
At 31December2014
At 31 December 2013
Forward
Forward
Swap
Swap
Total
Total
Net value
Net value
,
,
,,
,
,
,
, ,
,
,
,
,
,
,
,
,
,
,
,
,
Loans to local economic entities and individuals
Loans for discounted commercial notes and valuable papers
Payments made on behalf of customers
Debts awaiting resolution
31 December 2014
VND million
31 December 2013
VND million
,
,
,,
,
,,
,
,,
,
,
Current
Special mention
Substandard
Doubtful
Loss
31 December 2014
VND million
31 December 2013
VND million
,
,
,
,
,
,,
,
,
,
,
,
,,
,
,
,
,
112 Annual Report 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
LOANS AND ADVANCES TO CUSTOMERS (continued)9.
Analysis of loans by original term
Analysis of loans by type of customer and ownership
9.2
9.3
VI. Vietnam Export Import Commercial Joint Stock Bank
Short-term loans
Medium-term loans
Long-term loans
31 December 2014
VND million
31 December 2013
VND million
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
Corporate loans
Private limited companies
Other joint-stock companies
State-owned enterprises
Private companies
State-owned limited companies
State-owned joint-stock companies
Foreign invested enterprises
Co-operatives
Joint-venture companies
Others
Loans to individuals
31 December 2014
VND million VND million
31 December 2013
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
.
.
.
.
.
.
.
.
.
.
.
.
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
.
.
.
.
.
.
.
.
.
.
.
.
.
,
,
,
Annual Report 2014 113
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
LOANS AND ADVANCES TO CUSTOMERS (continued)9.
Analysis of loans by economic sector 9.4
Individuals and public activities
Trading
Manufacturing and processing
Agriculture, forestry and aquaculture
Construction
Electricity, gas and water supply/distribution
Financial services
Hotel and restaurant
Transportation, warehousing and communication
Education and training
Operation of international organizations or parties
Asset trading activities and consultancy services
Health care and social relief activities
Mining exploration
Science and technology
Sport and cultural activities
31 December 2014
VND million VND million
31 December 2013
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
.
.
.
.
.
.
.
.
.
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.
.
.
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.
.
, ,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
,
114 Annual Report 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
PROVISION FOR CREDIT LOSSES10.
The Bank has classified its loans to other banks, loans and advances to customers according to Article 10 of Circular No. 02/2013/TT-NHNN dated 21 January 2013 issued by the State Bank of Vietnam effective from 1 June 2014 and Circular No. 09/2014/TT-NHNN issued by the State Bank of Vietnam effective from 20 March 2014 which supersede Decision No. 493/2005/QD-NHNN, Decision No. 18/2007/QD-NHNN, Decision No. 780/QD-NHNN and internal regulations on loan classification of the Bank. According to Article 8 of Circular No 02/2013/TT-NHNN, the Bank calculates and records provision for credit losses within the first 15 days of the month next to the previous quater in the first three quarters and as at 30 November for the last quarter of the year. Accordingly, the provision for credit losses at year end was made based on the classification of outstanding loan balances as at 30 November 2014.
Provision for credit losses at the year-end comprised of:
Credit loss expenses incurred during the current year are summarized bellow:
VI. Vietnam Export Import Commercial Joint Stock Bank
Provisioncharged for loans and advances to customers
Provision charged for special bonds issued by VAMC
Provision charged for held-to-maturity securities
(Reversal)/provision charged for off-balance sheet commitments
Total credit loss expenses
2014Notes
2013
VND million VND million
,
,
,
,
,
,
,
,
Provision for loans and advances to customers
Provision for special bonds issued by VAMC
Provision for held-to-maturity securities
Provision for off-balance-sheet commitments
31 December 2014Notes
31 December 2013
VND million VND million
,
,
,
,
,
,
,
,
,
Annual Report 2014 115
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
PROVISION FOR CREDIT LOSSES (continued)10.
The result of loan classification as at 30 November 2014 and corresponding provision for credit losses on loans and advances to customers as required by Circular No. 02/2013/TT-NHNN are as follows:
Changes in the provision for loans and advances to customers in 2014 are summarized below:
Provision for loan losses10.1
Current
Special mention
Substandard
Doubtful
Loss
Balance Specific provision General provision Total provsion
VND million VND million VND million VND million
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
Beginning balance
Provision charged in the period
Provision used for debts sold to VAMC in the period
Provision used to write off loans in the period
Balance as at 30November 2014
Provision charged in December
Provision used for debts sold to VAMC in December
Provision used to write off loans in December
Foreign exchange differences
Ending balance
Specific provision General provision Total
VND million VND million VND million
,
,
,
,
,
,
,
,
,
,
,
,
,
,,
,
,
,
,
,
,
,
,
116 Annual Report 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
PROVISION FOR CREDIT LOSSES (continued)10.
Changes in the provision for loans and advances to customers in 2013 are summarized below:
In 2014, the Bank and its subsidiary have made provision for special bonds issued by VAMC amounting to VND183,748 million. The provision is made at 20% of par value within one year from the time receiving special bonds issued by VAMC.
In 2014, the Bank has made general provision for held-to-maturity securities (corporate bonds) amounting to VND44,625 million in accordance with Circular 02/2013/TT-NHNN as presented in Note 4.3.
Provision for loan losses (continued)
Provision for special bond issued by VAMC
Provision for held-to-maturity securities
10.1
10.2
10.3
During 2014, the Bank has sold bad debts to VAMC amounting to VND4,055,821 million (2013: VND932,948 million), used the corresponding balance of provision for credit losses amounting to VND174,017 million (2013: VND 8,714 million) and received special bonds issued by VAMC amounting to VND3,881,804 million (2013: 924,234 million). The Bank has also released before maturity date some special bonds issued by VAMC amounting to VND21,715 million, and held the remaining value of special bonds issued by VAMC as at 31 December 2014 amounting to VND4,784,323 million (Note 11).
VI. Vietnam Export Import Commercial Joint Stock Bank
Specific provision General provision Total
VND million VND million VND million
Beginning balance
Provision charged in the period
Provision used for debts sold to VAMC in the period
Provision used to write off loans in the period
Balance as at 30November 2013
Provision charged in December
Foreign exchange differences
Provision used for debts sold to VAMC in December
Provision used to write off loans in December
Ending balance ,
,
,
,
,
,
,
,
,
,
,
,
,,
,
,
,
,
,
,
,
,
Annual Report 2014 117
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
PROVISION FOR CREDIT LOSSES (continued)10.
Changes in the provision for off-balance-sheet in 2014 are summarized below:Provision for contingent liabilities and off-balance-sheet commitments10.4
INVESTMENT SECURITIES11.
Changes in the provision for off-balance-sheet in 2013 are summarized below:
The Bank has reversed the entire provision for off-balance sheet commitments in the current year in accordance with Circular 02.
Available-for-sale investment securities Debt securities
Equity securities
Debt securities
Treasury bills issued by the State Bank of Vietnam (a)
Treasury bills issued by the Vietnam State Treasury (b)Debt securities issued by the Government (c)
Equity securities issued by other local credit institutionsEquity securities issued by local economic entities
Provision for diminution in value of available-for-sale investment securities
Debt securities issued by the Government (c)
Debt securities issued by other local credit institutions (d)
Debt securities issued by local economic entities (e)
Special bonds issued by VAMC (f )Provision for diminution in value of held-to-maturity investment securities
Held-to-maturity investment securities
31 December 2014 31 December 2013
VND million VND million
,
,
,
,,
,,
,
,
,
,
,
,
,
,
,,
,
,
,
,,
,
,,
,
,
,,
,
,
,,
,
,
,
,
Provision charged in the year
Beginning balance
Reversal of provision in the yearBalance as at 30November 2013 and 31December 2013
Specific provision General provision Total
VND million VND million VND million
,
,
,
,,
,
,
,
,
,
Beginning balance
Reversal of provision in the periodBalance as at 30November 2014 and 31December 2014
Specific provision General provision Total
VND million VND million VND million
,
,
,
,
,
,
118 Annual Report 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
INVESTMENT SECURITIES (continued)11.
Treasury bill issued by the State Bank of Vietnam has term from 3 to 6 months. Interest is prepaid.
Treasury bill issued by the Vietnam State Treasury has term of 1 year. Interest is prepaid.
Bonds issued by other local credit institutions have term from 3 to 10 years. Interest is paid annually.
Special bonds are issued by VAMC for purchase of bad debts from the Bank during the year (Note 10.1). These bonds have term of 5 years and bear interest at 0% p.a.
Except for special bonds issued by VAMC, the above debt securities bear interest at rates ranging from 3.35% to 13.00% p.a.
Listing status of investment securities is as follows:
Debt securities issued by the Government include:
- Government bonds have term from 3 to 5 years. Interest is paid annually.
- Municipal bonds have term of 10 years. Interest is paid annually.
- Local government bonds have term from 3 to 5 years. Interest is paid annually.
(a)
(b)
(d)
(f)
VI. Vietnam Export Import Commercial Joint Stock Bank
Available-for-sale investment securities
Debt securities
Equity securities
Held-to-maturity investment securitiesDebt securities
Government securities
- Listed
- Non-listed
- Listed
- Non-listed
- Listed
- Non-listed
- Non-listed
- Listed
Treasury bills issued by the State Bank of Vietnam
Equity securities issued by other local credit institutions
Treasury bills issued by the Vietnam State Treasury
Equity securities issued by local economic entities
Government securities
Debt securities issued by other local credit institutions
Debt securities issued by local economic entities
Securities issued by the Government
31December 2014 31December 2013
VND million VND million
7,
,
,
,
,
,
, ,
,
,
,
,
,
,
,
, ,
,
,
,
,
,
,
,
,
Annual Report 2014 119
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
INVESTMENT SECURITIES (continued)
LONG-TERM INVESTMENTS
11.
12.
Break down of provision for investment securities at year-end is as follows:
Breakdown of investments in associates as at 31Decemberis as follows:
The net carrying value of investments in associates is recognized under the equity method.
In 2014, the Bank has disposed its entire investment in Eximland Corporation (“Eximland”) at cost.
Investments in associates12.1
Eximland Corporation
Viet Dragon Securities Corporation
Cost Ownership OwnershipCostNet carrying
value Net carrying
value
VND million VND million VND million VND million
,
,
,
,
,
,
. .
.
,
,
,
,
Capital contribution in the yearShare of net profit of the associates under equity method
Disposal of investment in the year
Decreasing dividend due to disposal of investment in associateBalance at 31December 2014
TotalProvision for diminution in value of long-term investments
Balance at 31 December 2013
Other long-term investments
Investments in associates Total
VND millionVND million VND million
,
,
,
,
,,
,
,
,
,,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
Held-to-maturity securities
Special bonds issued by VAMC
31December 2014 31December 2013
VND million VND million
,
,
,
120 Annual Report 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
LONG-TERM INVESTMENTS (continued)
FIXED ASSETS
12.
13.
Other long-term investments
Provision for long-term investment
Tangible fixed assets
12.2
12.3
13.1
Breakdown of other long-term investments as at 31Decemberis as follows:
Movement of provision for diminution in value of long-term investments during the year is as follows:
Changes in tangible fixed assets in the current yearare as follows:
VI. Vietnam Export Import Commercial Joint Stock Bank
Beginning balanceIncrease/(decrease) during the period
Ending balance
- Provision charged (Note 28)- Reversal of provision(Note 28)
2014
VND million
2013
VND million
,
,,
,
,
,,
,
Investments in other local credit institutions
Investments in other local economic entities
Provision for diminution in value of long-term investments
- Listed
- Listed
- Non-listed
Book valueVND million
Book valueVND million
,
,,
,,,
,
,
,
,
,
, ,
,,
,,,
,
,
,
,
,
,
Cost
Balance at 31 December 2013
Reclassification
RevertsDisposal
Balance at 31 December 2014
Transferred from completed construction and purchases of fixed assets
Buildings & structure
Machines & equipment Vehicles
Office equipment
Other tangible fixed assets Total
VND million VND million VND million VND million VND million VND million
, , , , ,,,
, , , , ,
, ,
,,
, , , , ,,,
, , ,,
Annual Report 2014 121
FIXED ASSETS (continued)13.
Tangible fixed assets (continued)
Intangible fixed assets
Cost of tangible fixed assets which have been fully depreciated but are still in use as at 31December2014 amounted to VND184,247 million (31 December 2013: VND80,675 million).
Changes in intangible fixed assets in the current year are as follows:
Cost of intangible fixed assets which have been fully amortized but are still in use as at 31December2014 amounted to VND40,728 million (31 December 2013: VND33,712 million).
13.1
13.2
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
CostBalance at 31 December 2013AdditionReverts
Disposal
Balance at 31 December 2014
Balance at 31 December 2013
Balance at 31 December 2013
Balance at 31 December 2014Amortization charge
Balance at 31 December 2014
Accumulated amortization
Net book value
Indefinite-termland use rights Computer software Total
VND million VND million VND million
,
,
,
,
,
,
,,
,,
,
,,,,
,,
,
,
,
,
,,
,
,
,,,,
,
,
,
,
Accumulated depreciation
Balance at 31 December 2013
Depreciation charge
Reclassification
RevertsDisposal
Balance at 31 December 2014
Net book value
Balance at 31 December 2013
Balance at 31 December 2014
Buildings & structure
Machines & equipment Vehicles
Office equipment
Other tangible fixed assets Total
VND million VND million VND million VND million VND million VND million
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,,
,
122 Annual Report 2014
OTHER ASSETS14.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
(a)
(b)
(d)
This represents advances for purchase of fixed assets as land use rights and their attached assets acquired by the Bank during the period but their ownerships have not yet been completed and transferred to the Bank.
The balance as at 31 December 2014 reflects the remaining receivable related to the investment disposal of the Bank and will be paid within 5 years since disposal date.
This represents the advances for corporate income tax amounting to VND129,473 million (Note 20) and value added tax amounting to VND31,346 million.
This is the receivable from resolving debts of Vietnam Shipbuilding Industry Corporation (Vinashin) in accordance with guidance of the State Bank of Vietnam which is being amortized until 2017.
Receivables14.1
VI. Vietnam Export Import Commercial Joint Stock Bank
VND million VND million
Receivables (Note 14.1)
Interest and fee receivablesOther assets (Note 14.2)
Provision for other assets (Note14.3),
,,,,
,,
,,,
,,
, ,,
VND million VND million
Advance for purchase of fixed assets (a)
Receivable from investment disposal (b)
Constructions in progress
Receivables from State Budget (c)
Receivables from Vinashin (d)
Advances for operating activities
Receivables from subsidized-interest lending
Card receivables
Margin deposit for house renting and other activities
Deductible input VAT
Dividend receivable
Receivable from transferring of land use rights
Advance to SBV for gold purchasing
Deposit for trading of gold accountOther receivables
,
,,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,,
,
,
,,
Annual Report 2014 123
OTHER ASSETS (continued)
BORROWINGS FROM THE GOVERNMENT AND THE STATE BANK OF VIETNAM
DUE TO AND BORROWINGS FROM OTHER BANKS
14.
15.
16.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Other assets
Provision for other assets
Prepaid and deferred expenses mainly represent rental, prepaid interest and deferred expense of the assets which are not qualified as fixed asset in accordance to Circular No. 45/2013/TT-BTC. These prepaid and deferred expenses are amortized from 1 to 36 months.
Movement of risk provision for other assets in current year is as follow:
14.2
14.3
Prepaid expenses
Forfeited assets awaiting resolution
Materials and tools
VND million VND million
,
,
,
,
,
,
,
Due to other banks
Borrowings from other banks
VND million VND million
,
,
,
,
,
,
,
,
,
,
,
,
Borrowings from the State Bank of VietnamCurrent loan
Loans secured by valuable papers
VND million VND million
,
,
,
,
,
Beginning balance
Provision charged in current year (Note 29)
Provision used to written off in the period
Ending balance
VND million VND million
,
,
,
124 Annual Report 2014
DUE TO AND BORROWINGS FROM OTHER BANKS (continued)16.
Due to other banks16.1
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Borrowings from other banks16.2
CUSTOMER DEPOSITS17.Analysis by products17.1
VI. Vietnam Export Import Commercial Joint Stock Bank
Demand deposits
Term deposits
In VND
In VND
In foreign currencies
In foreign currencies
VND million VND million
,,
,,
,
,,
,
,,
,,
,
,,
,
Borrowings from other banks in VND
Borrowings from other banks in foreign currencies
VND million VND million
,
,
,
,
,
,
,
,
,
,
,
,
Demand deposits Demand deposits in VND
Demand deposits in foreign currenciesDemand saving deposits in VND
Demand saving deposits in foreign currencies
Term deposits
Term deposits in VND
Term deposits in foreign currencies
Term saving deposits in VND
Term saving deposits in foreign currencies
Margin deposits Margin deposits in VND
Margin deposits in foreign currencies
Deposits for specific purposes
Deposits for specific purposesin VND
Deposits for specific purposes in foreign currencies
VND million VND million
,
,,
,
,
,
,
,
,
,
,
,
,,
,
,
,
,
,
,
,
,,
,
,
,
,
,
,
,
,
,
,,
,
,
,
,
,
,
Annual Report 2014 125
CUSTOMER DEPOSITS (continued)
VALUABLE PAPERS ISSUED
17.
18.
Analysis by type of customers and ownership 17.2
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Deposits by economic entities
State-owned enterprises
Private enterprises and others
Foreign invested enterprises
Deposits by individuals
Deposits by others
VND million VND million
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,,
,
,
,
,
,
,
Certificates of deposit
Under 12 months
From 12 months to 5 years
5 years and above
Bills
Under 12 months
VND million VND million
,
,
,
,
,
,
,
,
,
,,
,
,
126 Annual Report 2014
OTHER PAYABLES19.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Bonus and welfare fund has been reclassified from Other reserves to Other payables in accordance with Circular No. 10/2014/TT-NHNN issued by the State Bank of Vietnam on 20 March 2014 (Note 21.2).
VI. Vietnam Export Import Commercial Joint Stock Bank
VND million VND million
Internal payables
External payables
Card payables
Payables to employees
Letter of Credit payables
Payables in loan resolution activities
Other internal payables
Payable to the SBV on interest subsidy lending
Tax payables (Note 20)
Dividend payables (Note 21.3)
Bonus and welfare fund
Remittance payables
Deferred income
Other payables
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
Annual Report 2014 127
OBLIGATIONS TO THE STATE BUDGET 20.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
The subsidiary has the obligation to pay CIT at the rate of 20% of taxable profits in the current year(last year: 20%).
The Bank and its subsidiary's tax returns are subject to examination by the tax authorities and are declared and finalized separately. Because the application of tax laws and regulations to many types of transactions is susceptible to varying interpretations, amounts reported in the consolidated financial statements could be changed at a later date upon final determination by the tax authorities.
The current CIT payables are determined based on taxable income of the current year. Taxable income differs from profit as reported in the consolidated income statement since it excludes taxable income or deductible expenses in prior years due to the differences between the Bank and its subsidiary's accounting policies and the current income tax policies, and also excludes non-taxable income or non-deductible expenses. The current CIT payables of the Bank and its subsidiary are calculated based on the statutory tax rates applicable at the consolidated balance sheet date.
The Bank has the obligation to pay CIT at the rate of 22% of taxable profits in accordance with Circular No. 78/2014/TT-BTC(2013: 25%).
Current corporate income tax (“CIT”)
Movements during the year
VND million
Beginning receivable
VND million
Payable
VND million
Ending payable balance
VND million
Paid
VND million
Ending receivable
balanceVND million
Beginning payable
Value added tax
Corporate income tax
Personal income tax
Foreign contract withholding tax
Other taxes
,
,
, ,
, ,
,
,
,
,
, ,
,
,
,
,
,
,
, ,
,
,
128 Annual Report 2014
OBLIGATIONS TO THE STATE BUDGET (continued)20.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Current CIT expense in the yearis estimated as follows:
Deferred corporate income tax
At year end, the Bank and subsidiary have not recognized deferred corporate income tax due to there are no significant temporary difference between the carrying value and the tax base of assets and liabilities.
(*) This is the tax adjustment due to cancellation of the real estate transfer contract in the current year.
Current corporate income tax (“CIT”) (continued)
VI. Vietnam Export Import Commercial Joint Stock Bank
Profit before tax
Adjust:
- Tax-exempt dividend income
- Reversal of provision for investments in associates for consolidation purpose
- Share of profit of the associates under the equity method
- Provision for investment in associates for consolidation purpose
- Loss due to disposal investment in associates
- Expenses not related to taxable income
- CIT expense of the Bank
- CIT expense of the subsidiary
- Additional tax payment for prior year
- Tax adjustment (*)
Estimated taxable profit for the year
Total estimated CIT expense for the year
CIT payable at the end of the year
CIT (receivable)/payable at the beginning of the year
CIT paid during the year
2014
VND million
2013
VND million
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
Annual Report 2014 129
CAPITAL AND RESERVES21.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Statement of changes in owners' equity
Changes in owners' equity of the Bank during the year are as follows:
Details of the Bank's shareholders are as below:
21.1
Beginning balance
Ending balance
Net profit for the year
Reserves made for current year
Reserves used in the year
Dividend paid for prior year(Note 21.3)
Purchase of treasury shares in the year
Reclassification bonus and welfare fund to other payables
Additional reserves made for prior year
TotalRetained earningsReservesShare premiumTreasury shares
Investment capital and
purchasing assetsCharter capital
VND millionVND millionVND millionVND millionVND millionVND millionVND million
,, ,
,
,
,
,
,
,
,
,
,,
,
,,
,
,
,
,
,,,,
,
,,,
,
,
,
,,
Sumitomo Mitsui Banking Corporation
VOF Investment Limited
Other shareholders
Joint Stock Commercial Bank for Foreign Trade of Vietnam
Number of shares
Number of shares
Value VND million
Value VND million
Ownership %
Ownership %
,,
,
,
,
,,
,
,
,
,
,
,,,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,,
,
,
,
,
,
,
,
..
.
.
.
.
.
.
.
.
130 Annual Report 2014
CAPITAL AND RESERVES (continued)21.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Statement of changes in owners' equity (continued)
Statutory reserves
21.1
21.2
Details of the Bank's shares are as follows:
According to Decree No. 57/2012/ND-CP effective from 15 September 2012 and the Bank's Charter, the Bank is required to make the following statutory reserves based on the percentage of profit after tax as follows:
The Bank and its subsidiary only create the above reverses from profit after tax at the end of fiscal year.
Supplementary capital reserve
Financial reserve
Other reserves
5% of profit after tax
10% of profit after tax
Subject to resolution of the Annual General Meeting of Shareholders
100% of charter capital
25% of charter capital
Not defined
Basic for calculation Maximum balance
VI. Vietnam Export Import Commercial Joint Stock Bank
Number of authorized shares
Number of issued shares
Number of treasury shares
Number of outstanding shares
Ordinary shares
Ordinary shares
Ordinary shares
Preference shares
Preference shares
Preference shares
Unit Unit
,
,
,
,
,
,
,
,
,
,
,
,
,
,
, ,
,,
,
,
,
,
,
, ,
,,
, ,
,,
,
,
,
Annual Report 2014 131
Statutory reserves (continued)
Dividends
21.2
21.3
CAPITAL AND RESERVES (continued)
BASIC EARNINGS PER SHARE
21.
22.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Changes in reserves of the Bank and its subsidiary during the year are as follows:
Basic earnings per share are calculated by dividing net profit after tax for the year attributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during the year. Details of basic earnings per share of the Bank are as follows:
Dividends payable at the beginning of the year
Dividends declared in the year
- Dividend payment for 2013: VND400/share
- First dividend payment for 2012: VND800/share
- Second dividend payment for 2012: VND550/share
Dividends paid in the year
Dividends payable at the end of the year
Dividends on ordinary shares
20132014
VND millionVND million
,
,
,
,
,
,, ,,
,
, ,
,
Net profit attributable to ordinary shareholders (VND million)
Weighted average number of outstanding ordinary shares (share)
Basic earnings per share (VND/share)
20132014
,
,,,
,
,,,
Beginning balance
Ending balance
Additional reserves made for prior yearReserves made for current year
Reserves used in the year
Transfer to other payables
Investment and development
reserveFinancial
reserveSupplementary
capital reserve
Bonus and welfare
fund TotalVND million VND million VND million VND million VND million
,
,
,
,
,,,
,
, ,
,
,
,
,
,,
, ,
132 Annual Report 2014
INTEREST AND SIMILAR INCOME
INTEREST AND SIMILAR EXPENSES
NET FEES AND COMMISSION INCOME
23.
24.
25.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
VI. Vietnam Export Import Commercial Joint Stock Bank
Fees and commission income
Fees and commission expenses
Net fees and commission income
Income from settlement services
Expenses from settlement services
Income from guarantee services
Expenses from postal and communication
Income from treasury services
Expenses from brokerage services
Income from advisory services
Expenses from transport of cash
Other income
Other expenses
VND million
2014
VND million
2013
,
,
,
,
,
,,
,
,
,
,
,
,
,
,
,
,
,,
,
,
,
,
,
Interest income from loans and advances to customers
Interest income from investments in debt securities
Interest income from deposits
Other income from credit activities
VND million
2014
VND million
2013
, ,
,
,
,
,
,
,
, ,
,
,
,
,
,
,
,
Interest expenses on deposits
Interest expenses on borrowings
Interest expenses on valuable papers
Other expenses from credit activities
VND million
2014
VND million
2013
,
,
,
,
, ,
, ,
,
,
,,
, ,
,
Annual Report 2014 133
NET GAIN/(LOSS) FROM FOREIGN CURRENCIES AND GOLD TRADING
NET OTHER (EXPENSE)/ INCOME
26.
27.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
VND million
2014
VND million
2013
Other income
Other expenses
Bad debt recoveries
Cost of disposal of land use rights and other fixed assets
Proceeds from disposal of land use rights and other fixed assets
Other expenses
Other income
Net other (expense)/income
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
VND million
2014
VND million
2013
Income from foreign currencies and gold trading
Expenses from foreign currencies and gold trading
Net gain from foreign currencies and gold trading
Income from spot foreign exchange
Expenses from spot foreign exchange
Income from derivatives
Expenses from derivatives
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
134 Annual Report 2014
(LOSS)/GAIN FROM LONG-TERM INVESTMENTS28.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
VI. Vietnam Export Import Commercial Joint Stock Bank
VND million
2014
VND million
2013
Dividends from investments
(Loss)/gain from disposal of other investments
Share of profit of the associates under equity method
Reversal of provision for diminution in value of long-term investments (Note 12.3)
Provision for diminution in value of long-term investments (Note 12.3)
- From equity investment securities
- From long-term investments
,
,
,
,
,
,
,
,
,
,
,
,
,
,
Annual Report 2014 135
OPERATING EXPENSES29.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Other provision expense includes provision for doubtful receivable from Vietnam Shipbuilding Industry Corporation (Vinashin) amounting to VND43,750 million (Note 14.1).
VND million
2014
VND million
2013
Personnel expenses
Salary and allowances
Social insurance, health insurance, unemployed insurance and union fee
Meal allowances
Uniform and safe labour instruments
Other allowances to employees
Social activities
Asset expenditures
Rental
Depreciation of fixed assets
Repair and maintenance
Purchase of tools
Insurance for assets
Other operating expenses
Advertisement, marketing and promotion
Materials and printing
Education and trainings
Meeting and conference
Business trips
Labour union's activities
Insurance for customer deposits
Postage and telecommunication
Others
Provision expense
Professional services
Utilities
Other taxes and fees
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,,,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,,,
136 Annual Report 2014
CASH AND CASH EQUIVALENTS
EMPLOYEES' INCOME
COLLATERALS AND MORTGAGES
30.
31.
32.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Cash and cash equivalents presented in the consolidated cash flow statement comprise the following balances in the consolidated balance sheet:
The book value of collaterals and mortgages from loans and advances to customers are as follows:
VI. Vietnam Export Import Commercial Joint Stock Bank
I. Total average number of employees (person)
II. Employees' income (VND million)
1. Total salary
2. Bonuses
3. Other income
4. Total income (1+2+3)
5. Average salary per month (VND/person)
6. Average income per month (VND/person)
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
VND million VND million
Real estate properties
Valuable papers
Movable assets
Other assets
,
,
,,,
,
,
,
, ,
,
,
,,,
,
,
,
, ,
VND million VND million
Cash, gold and precious stones
Balances with the State Bank of Vietnam
Demand deposits with other banks
Deposits with and loans to other banks with term of under three monthsSecurities with maturity of under three months from the purchasing date
,
,
,
,
, ,, ,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
Annual Report 2014 137
CONTINGENT LIABILITIES AND COMMITMENTS33.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
In the normal course of business, the Bank is a party to financial instruments which are recognized as off-balance sheet items. These financial instruments mainly comprise guarantee commitments and letters of credit. These instruments involve elements of credit risk in excess of the amounts recognized in the consolidated balance sheet.
Credit risk for off-balance sheet financial instruments is defined as the possibility of sustaining a loss because any other party to a financial instrument fails to perform in accordance with the terms of the contract.
Financial guarantees are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party including guarantee for borrowings, settlement, performing contracts and bidding. The credit risk involved in issuing guarantees is essentially the same as that involved in extending loans to other customers.
Commercial at sight letters of credit represents a financing transaction by the Bank to its customer where the customer is usually the buyer/importer of goods and the beneficiary is typically the seller/exporter. Credit risk from this type of letters of credit is limited as the merchandise shipped serves as collateral for the transaction.
Deferred letters of credits represent the amounts at risk should the contract be fully drawn upon but the client defaults in repayment to the beneficiary. Deferred letters of credit that defaulted by clients are recognized by the Bank as granting of a compulsory loan with a corresponding liability representing the financial obligation of the Bank to pay the beneficiaries and to fulfill the guarantor obligation.
The Bank requires margin deposits to support credit-related financial instruments when it is deemed necessary. The margin deposit required varies from nil to 100% of the value of a commitment granted, depending on the creditworthiness of clients as assessed by the Bank.
The outstanding commitments and contingent liabilities as at 31December are as follows:
At sight letters of credit
Deferred letters of credit
Financial guarantees
- Settlement guarantee
- Performance guarantee
- Tender guarantee
Loan guaranteesOther guarantees
Other commitments
Less: Margin deposits
Contingent liabilities and commitments
VND million VND million
,
,
,
,
,
,
,
,
,
,
,,,
,
,
,
,
,
,,
,,
,,
,
,,
,,
,,
,
,,
,,
138 Annual Report 2014
RELATED PARTY TRANSACTIONS34.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Related party transactions include all transactions undertaken with other entities to which the Bank and its subsidiary are related. Parties are considered as related parties if one party is able to control over or significantly influence the other party in making decision of financial and operational policies. A party is deemed to be related to the Bank and its subsidiary if:
Significant transactions with related parties for the year ended 31December2014 were as follows:
Other related parties are associates and other related shareholders of the Bankand its subsidiary.
Receivables and payables with the related parties as at 31December2014 were as follows:
Directly, or indirectly through one or more intermediaries, the party:
The party is a joint venture in which the Bankand its subsidiaryis a venture(owning over 11% of thecharter capital or voting share capital, but is not a subsidiary of the Bank);
The party is a close member of the family of any individual referred to in (a) or (c); or
The party is an entity that is, directly or indirectly, controlled, jointly controlled or significantly influenced by, or of which, significant voting power in such entity resides with any individual referred to in (c) or (d),
The party whose member is the key management personnel of the Bankand its subsidiary;
(a)
(b)
(d)
(e)
controls or is controlled by or is under common control of the Bank and its subsidiary;►
has an interest (owning 5% or more of the charter capital or voting share capital) in the Bank that gives it significant influence over the Bank and its subsidiary; or
►
has joint control over the Bank and its subsidiary; ►
VI. Vietnam Export Import Commercial Joint Stock Bank
Major shareholders Interest income
Interest income
Interest expenses
Interest expensesOther related parties
Relationship TransactionsAmount
VND million
,
,,
Major shareholders Deposits taken
Deposits taken
Deposits placed
Interest payables
Loans received
Loans grantedInterest receivablesOther receivables
Other related parties
Relationship Transactions Receivables/(Payables)VND million
,,
,
,,,
,
Annual Report 2014 139
CONCENTRATION OF ASSETS, LIABILITIES AND OFF-BALANCE-SHEET ITEMS BY GEOGRAPHICAL REGIONS35.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
(*) Excluding provision
Assets at 31December2014 (*)
Due from and loans to other banks
Loans and advances to customers
Derivatives (Nominal amount)
Investment securities
Long-term investments
Liabilities at 31December 2014
Due to and borrowings from other banks
Customer deposits
Valuable papers issued
Off-balance-sheet commitments at 31December 2014
VND million VND million VND million
Domestic Overseas Total
,
,
,
,
,
,
,
,
,
,
,
,
, ,
,
,
,
,
,
,
,
,,,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
,
140 Annual Report 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
SEG
MEN
T RE
PORT
Mai
n se
gmen
t rep
ort:
by g
eogr
aphi
cal r
egio
n
Info
rmat
ion
of in
com
e, e
xpen
ses,
asse
ts a
nd li
abili
ties
of th
e di
visi
ons
by g
eogr
aphi
cal a
rea
of th
e Ba
nk a
s at
and
for t
he y
ear e
nded
31
Dec
embe
r 201
4 is
as
follo
ws:
The
Hea
d O
ffice
whi
ch b
elon
gs to
the
Sout
h ha
s mad
e so
me
tran
sact
ions
for t
he w
hole
ban
k bu
t not
mad
e th
e al
loca
tion
to o
ther
bu
sine
ss u
nits
of t
he B
ank.
VND m
illion
Inte
rest
and s
imila
r inco
me
Inte
rest
and s
imila
r exp
ense
sNe
t int
eres
t and
sim
ilar in
com
e
TOTA
L OPE
RATIN
G IN
COM
ETO
TAL O
PERA
TING
EXPE
NSES
Prof
it be
fore
cred
it los
s exp
ense
sCr
edit
loss e
xpen
ses
PROF
IT B
EFOR
E TAX
Corp
orat
e inc
ome t
ax ex
pens
e
Due f
rom
and l
oans
to ot
her b
anks
Loan
s and
adva
nces
to cu
stom
ers
TOTA
L ASS
ETS
Due t
o and
borro
wing
s fro
m ot
her b
anks
Custo
mer
depo
sits
Othe
r liab
ilities
TOTA
L LIA
BILI
TIES
PROF
IT A
FTER
TAX
VND m
illion
VND m
illion
VND m
illion
VND m
illion
VND m
illion
North
Cent
ral
Sout
hTo
tal
segm
ent r
epor
ted
Elim
inatio
nTo
tal
, , , , , , , , , , , , , , , , , , , ,,
,,,,
,,,
,,,,,,,
,,,,,,
,
,,,,,
,,,,,,
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,
, , ,
, , ,
, , ,
, , ,
,
,,
,
,,,, , , , , , , , , , , ,
,,
,,
, ,, ,
, ,
,
,,,,, , , , , , , , ,
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,,,,
,
,,,,,,,
,,,,
, ,
, ,, , ,
, ,
Othe
r inco
me
ASSE
TS
Inve
stmen
tsOt
her a
ssets
LIAB
ILIT
IES
36.
36.1
VI. Vietnam Export Import Commercial Joint Stock Bank
Annual Report 2014 141
SEGMENT REPORT (continued)36.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Secondary segment report: by business sector36.2
For management purposes, the Bank and its subsidiary are organized into sectors based on the followings:
Individual customers and corporate customers:
Investments:
Interbank activities:
The products and services provided to individual and corporate clientsinclude:
Securities investments and other long-term investments
Placements from and to; borrowings, lending and other interbank activities with other banks.
- Customer deposits;
- Credits;
- Card services and money transfer services.
142 Annual Report 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
SEG
MEN
T RE
PORT
(co
ntin
ued)
36.
Seco
ndar
y se
gmen
t rep
ort:
by b
usin
ess s
ecto
r (co
ntin
ued)
36.2
Info
rmat
ion
on a
sset
s an
d lia
bilit
ies
of th
e bu
sine
ss s
ecto
rs o
f the
Ban
k as
at 3
1 D
ecem
ber 2
014
are
as fo
llow
s:
Segm
enta
l inf
orm
atio
n on
inco
me
and
expe
nses
of t
he B
ank
is n
ot p
rese
nted
bec
ause
the
Bank
has
not
est
ablis
hed
man
agem
ent
info
rmat
ion
syst
em to
col
lect
this
info
rmat
ion.
VI. Vietnam Export Import Commercial Joint Stock Bank
VND m
illion
ASSE
TS
Cash
, gold
and p
recio
us st
ones
Balan
ces w
ith th
e Sta
te Ba
nk of
Viet
nam
Due f
rom
and l
oans
to ot
her b
anks
Deriv
ative
s and
othe
r fina
ncial
asse
ts
Loan
s and
adva
nces
to cu
stom
ers
Inve
stmen
t sec
uriti
es
Long
-term
inve
stmen
ts
Fixed
asse
tsOt
her a
ssets
LIAB
ILIT
IES
Borro
wing
s fro
m th
e Gov
ernm
ent a
nd th
e Sta
te Ba
nk
of Vi
etna
m
Due t
o and
borro
wing
s fro
m ot
her b
anks
Custo
mer
depo
sits
Valua
ble pa
pers
issue
d
Othe
r liab
ilities
TOTA
L LIA
BILI
TIES
TOTA
L ASS
ETS
VND m
illion
VND m
illion
VND m
illion
VND m
illion
Indivi
dual
and
corp
orat
e cus
tom
ers
Inves
tmen
tsInt
erban
k acti
vities
Unall
ocat
ed
gene
ral a
ctivit
ies
Tota
l
,, , ,
,, , , , , , , , , , , , , , ,
,
,,
,,,,,,,,,
,,
,,,
, , , , , , ,
, ,
,,
, , , ,
,,
,,,
,,
, , , , ,
, , ,
, , , , , ,
, , ,
Annual Report 2014 143
FINANCIAL RISK MANAGEMENT POLICIES37.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Risk is inherent in the Bank and its subsidiary's activities and is managed through a process of ongoing identification, measurement and monitoring, subject to risk limits and other controls. This process of risk management is critical to the Bank and its subsidiary's continuing profitability and each individual within the Bank and its subsidiary is accountable for the risk prevention relating to his or her responsibilities. The Bank and its subsidiary are exposed to such types of risk as credit risk, liquidity risk and market risk (then being subdivided into trading and non-trading risks). The Bank and its subsidiary are also subject to various operational risks.
The independent risk control process does not include business risks such as changes in the environment, technology and industry. The Bank and its subsidiary's policy is to monitor those business risks through the Bank and its subsidiary's strategic planning process
Risk management structure
Board of Directors
Risk management Committee
Board of Supervisors
Internal Audit
The Board of Directors is ultimately responsible for identifying and controlling risks. However, each separate member shall be responsible for managing and monitoring risks.
The Board of Directors is responsible for monitoring the overall risk management process within the Bank and its subsidiary.
Risk management Committee analyses and provides warnings on thepotential risks that may affect the Bank and its subsidiaries' operation and preventive measures in the short term as well as long term.
The Board of Supervisors has the responsibility to control the overall risk management process within the Bank and its subsidiary.
According to the annual internal audit plan, business processes throughout the Bank and its subsidiary are audited by the internal audit function, which examines both the adequacy of the procedures and the Bank and its subsidiary's compliance with the procedures. Internal Audit discusses the results of all assessments with the Board of Management, and reports its findings and recommendations to the Board of Supervisors.
Risk management Committee reviews and evaluates the appropriateness and effectiveness of the risk management of procedures and policies of the Bank and its subsidiaries to make recommendations to the Board of Managementon the improvement of procedures, policies and operational strategies.
Risk management Committee advises the Board of Management in the promulgation of procedures and policies under their jurisdiction relating to risk management in the Bank and its subsidiaries' activities.
144 Annual Report 2014
Risk measurement and reporting systems
Risk mitigation
Excessive risk concentration
The Bank and its subsidiary's risks are measured using a method which reflects both the expected loss likely to arise in normal circumstances and unexpected losses, which are an estimate of the ultimate actual loss based on statistical models.
Monitoring and controlling risks is primarily performed based on limits established by the Bank and its subsidiary in compliance with the SBV's regulations. These limits reflect the business strategy and market environment of the Bank and its subsidiary as well as the level of risk that the Bank and its subsidiary are willing to accept.
For all levels throughout the Bank and its subsidiary, specifically tailored risk reports are prepared and distributed in order to ensure that all business departments have access to extensive, necessary and up-to-date information
The Bank and its subsidiary actively use collaterals to reduce its credit risk.
Risk concentrations arise when a number of customers of the Bank and its subsidiary are engaged in similar business activities, or activities in the same geographic region, or have similar economic features that would affect the group of customers' payment obligations or payment receipt rights when due under changes in economic, political or other conditions.
These above concentrations indicate the level of sensitivity of the Bank and its subsidiary's performance to the developments of a particular industry or geographic allocation.
In order to avoid excessive concentrations of risk, the Bank and its subsidiary's policies and procedures include specific guidelines to focus on maintaining a diversified portfolio. Identified concentrations of credit risk are controlled and managed accordingly. Selective hedging is used within the Bank and its subsidiary in respect of the industries and other related factors.
Information compiled from all business activities is examined and processed in order to analyze, control and early identify risks. This information is presented and explained to the Board of Directors, Board of Management, and the departments' directors. The report includes aggregate credit exposure, credit metric forecasts, limit exceptions, liquidity ratios and risk profile changes. The Management assesses the appropriateness of the allowance for credit losses on a quarterly basis. The Management receives a comprehensive risk report quarterly which is designed to provide all the necessary information to assess and conclude on the risks of the Bank and its subsidiary.
FINANCIAL RISK MANAGEMENT POLICIES (continued)37.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
VI. Vietnam Export Import Commercial Joint Stock Bank
Annual Report 2014 145
FINANCIAL RISK MANAGEMENT POLICIES (continued)37.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Credit risk
Financial assets neither past due nor impaired
Financial assets past due but not impaired
37.1
(a)
(b)
Credit risk is the risk that the Bank will incur a loss because its customers fail to discharge their contractual obligations.
To manage credit risk, the Bank and its subsidiary issued credit policies and instructions to standardize their credit operations.
The Bank believed that it can recover fully and timely these financial assets in the near future.
Aging of past due financial assets but not impaired are presented as below:
These are past due financial assets but not impaired as they are secured fully by collaterals, including reciprocal deposits, real estate properties, movable assets, valuable papers and other assets.
The Bank and its subsidiary manage and control credit risk by setting limits on the amount of risk they are willing to accept for each customers and for geographical and industry concentrations, and by monitoring exposures in relation to such limits.
The Bank and its subsidiary have established a credit quality review process to provide early identification of possible changes in the creditworthiness of customers, including regular collateral review. Credit limits for customers are established by the use of a credit rating system, which assigns each customer a risk rating. Risk ratings are subject to regular revision.
The Bank and its subsidiary's financial assets which are neither past due nor impaired include loans and advances to customers classified as Current loan in accordance with Circular No. 02/2013/TT-NHNN and Circular No, 09/2014/TT-NHNN; securities, receivables and other financial assets which are not past due and no provision is required in accordance with Circular No. 228/2009/TT-BTC.
Past due
VND million
Loan and advances to customers
VND millionLess than 90 days From 91 to 180 days
VND millionFrom 181 to 360 days
VND millionOver 360 days
VND millionTotal
,
,
,
,
146 Annual Report 2014
FINANCIAL RISK MANAGEMENT POLICIES (continued)37.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Market risks
Interest rate risk
37.2
(a)
Interest rate risk arises from the possibility that changes in interest rates will affect the fair values of financial instruments. The Bank and its subsidiary are exposed to interest rate risk as a result of mismatches of maturity dates or dates of interest rate re-pricing in respect of assets and liabilities and off-balance sheet instruments over a certain period. The Bank and its subsidiary manage this risk by matching the dates of interest rate re-pricing of assets and liabilities.
Analysis of assets and liabilities based on actual interest rate repricing term
The actual term of interest rate repricing is the remaining period calculated from the consolidated balance sheet date to the next interest rate repricing term or the maturity term of the items on the consolidated balance sheet whichever is earlier.
The following assumptions and conditions have been adopted in the analysis of actual interest rate repricing terms of the assets and liabilities of the Bank and its subsidiary:
Cash, gold, gemstones, long-term investments and other assets (including fixed assets, investment properties and other assets) and other liabilities are classified as non-interest bearing items.
Balances with the State Bank of Vietnam are considered as current and the actual; interest rate repricing term is therefore considered within 1 month.
The actual interest rate repricing term of investment securities and trading securities are determined based on the actual maturity term of each kind of securities as at the consolidated balance sheet date.
The actual interest rate repricing term of due from and loans to other banks; loans to customers; borrowings from Government and the State Bank of Vietnam; due to and borrowings from other banks and customer deposits and grants, entrusted funds and loans exposed to risks are determined as follows:
The actual interest rate repricing term of valuable papers is determined based on the remaining maturity term of each valuable paper calculated from the consolidated balance sheet date.
- Items which bear fixed interest rate for the entire contractual term: The actual interest rate repricing term is determined based on the remaining contractual term calculated from the consolidated balance sheet date.
- Items which bear floating interest rate: The actual interest rate repricing term is determined based on the next interest rate repricingterm subsequent to the consolidated balance sheet date.
►
►
►
►
►
VI. Vietnam Export Import Commercial Joint Stock Bank
Annual Report 2014 147
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
FIN
AN
CIA
L RI
SK M
AN
AG
EMEN
T PO
LICI
ES (c
onti
nued
)37
.M
arke
t ris
ks (
cont
inue
d)In
tere
st ra
te ri
sk (
cont
inue
d)Be
low
tabl
e sh
ows
the
effe
ctiv
e in
tere
st re
-pric
ing
term
of a
sset
s an
d lia
bilit
ies
as a
t 31
Dec
embe
r 201
4:
No
anal
ysis
on
inte
rest
rate
sen
sitiv
ity w
as p
erfo
rmed
at 3
1Dec
embe
r201
4 si
nce
the
Bank
and
its
subs
idia
ry d
o no
t hav
e su
ffici
ent d
ata
and
tech
nolo
gy.
37.2
(a)
Intere
st re-
prici
ng pe
riod
VND m
illion
Asse
ts
Cash
, gold
and p
recio
us st
ones
Balan
ces w
ith th
e SBV
Due f
rom
and l
oans
to ot
her b
anks
– gr
oss
Deriv
ative
s and
othe
r fina
ncial
asse
tsLo
ans a
nd ad
vanc
es to
custo
mer
s – gr
oss
Inve
stmen
t sec
uriti
es -
gros
s
Long
-term
inve
stmen
ts - g
ross
Fixed
asse
ts
Othe
r asse
ts - g
ross
Tota
l ass
ets
Liabi
litie
sBo
rrowi
ngs f
rom
the G
over
nmen
t and
the
Stat
e Ban
k of V
ietna
m
Due t
o and
borro
wing
s fro
m ot
her b
anks
Custo
mer
depo
sits
Valua
ble pa
pers
issue
dOt
her l
iabilit
ies
Tota
l lia
bilit
ies
Inte
rest
rate
sens
itivi
ty g
ap
Overd
ue
VND m
illion
Non-
intere
st be
aring
VND m
illion
Up to
1 m
onth
VND m
illion
From
1 to
3 m
onth
sVN
D milli
on
From
3 to
6 m
onth
sVN
D milli
on
From
6 to
12
mon
ths
VND m
illion
From
1 to
5 yea
rsVN
D milli
on
Over
5 ye
ars
VND m
illion
Tota
l
, , , , ,, ,
, , , , ,,,
,,
, ,,
,
,,
, , ,,
,,
, , ,,,
, , ,
, , ,,
, ,,,
,,
,
,,,,,,,,,
,,,,
,
,, , ,
,
,
,
, ,,,,,,
,,,, ,
, , ,,
,
,
,
, , ,,
, ,,,
,,
,
,,,
,
,
, ,,
,
,,
,,
,,
,,,
, ,,, , ,
, , ,
,
,
, , , , ,, ,
,,,,
, ,
148 Annual Report 2014
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
FINANCIAL RISK MANAGEMENT POLICIES (continued)37.Market risks (continued)Currency risk
37.2(b)
Curr
ency
risk
is th
e ris
k th
at th
e va
lue
of fi
nanc
ial i
nstr
umen
ts w
ill fl
uctu
ate
due
to c
hang
es in
fore
ign
exch
ange
rate
s.
Clas
sific
atio
n of
ass
ets
and
liabi
litie
s of
whi
ch c
urre
ncie
s ar
e tr
ansl
ated
into
VN
D a
s at
31
Dec
embe
r 201
4 ar
e as
follo
ws:
The
Bank
and
its
subs
idia
ry w
ere
inco
rpor
ated
and
ope
rate
in V
ietn
am, s
o VN
D is
the
repo
rtin
g cu
rren
cy. T
he m
ajor
cur
renc
y in
whi
ch
the
Bank
and
its
subs
idia
ry t
rans
act
is a
lso
VND
. How
ever
, som
e tr
ansa
ctio
ns a
re d
enom
inat
ed in
gol
d, U
SD, E
UR
and
othe
r fo
reig
n cu
rren
cies
. The
Ban
k an
d its
sub
sidi
ary
have
set
lim
its t
o co
ntro
l the
pos
ition
s of
the
cur
renc
ies.
Posi
tions
are
mon
itore
d on
a d
aily
ba
sis
and
hedg
ing
stra
tegi
es a
re u
sed
to e
nsur
e th
at th
e cu
rren
cy p
ositi
ons
are
mai
ntai
ned
with
in e
stab
lishe
d lim
its.
VI. Vietnam Export Import Commercial Joint Stock Bank
VND m
illion
VND m
illion
VND m
illion
VND m
illion
VND m
illion
Asse
tsCa
sh, g
old an
d pre
cious
ston
esBa
lance
s with
the S
tate
Bank
of Vi
etna
mDu
e fro
m an
d loa
ns to
othe
r ban
ks -
gros
s
Deriv
ative
s and
othe
r fina
ncial
asse
tsLo
ans a
nd ad
vanc
es to
custo
mer
s - gr
oss
Othe
r asse
ts - g
ross
Liabi
litie
s and
owne
rs' e
quity
Borro
wing
s fro
m th
e Gov
ernm
ent a
nd SB
V
Due t
o and
borro
wing
s fro
m ot
her b
anks
Custo
mer
depo
sits
Off-b
alan
ce-sh
eet f
orei
gn ex
chan
ge po
sitio
n
Deriv
ative
s and
othe
r fina
ncial
liabil
ities
On an
d of
f-bal
ance
-shee
t for
eign
exch
ange
pos
ition
Valua
ble pa
pers
issue
dOt
her l
iabilit
ies
Tota
l lia
bilit
ies a
nd ow
ners
' equ
ityOn
-bal
ance
shee
t for
eign
exch
ange
posit
ion
Tota
l ass
ets
Tota
lOt
her f
oreig
n cu
rrenc
ies
equiv
alent
to
USD
equiv
alent
toEU
R eq
uivale
nt to
Gold
equiv
alent
to
,,
,,
,,,
,
,,
,,,
,,
,,,
,,,
,,,,,,,,,,,,,
, , , , ,
, , ,
, , ,,
,,
,,,,
,,,
,
,
,
,,,
,
,,,
,,,,, ,
,,, , , , ,
, , ,
,,,
,
Annual Report 2014 149
FINANCIAL RISK MANAGEMENT POLICIES (continued)37.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)as at and for the financial year ended 31 December 2014
B05/TCTD-HN
Market risks (continued)
Currency risk (continued)
Liquidity risk
Foreign currency sensitivity
No analysis on foreign currency sensitivity was performed at 31 December 2014 since the Bank and its subsidiary do not have sufficient data and technology.
Liquidity risk is the risk which the Bank and its subsidiary have difficulty in meeting its financial obligations. Liquidity risk occurs when the Bank and its subsidiary cannot afford to settle debt obligations at the due dates in the normal or stress conditions. To minimize the liquidity risk exposure, the Bank and its subsidiary diversify the mobilization of deposits from various sources apart from their basic capital resources. In addition, the Bank and its subsidiary have a flexible policy to control liquidity of assets, monitors the future cash flows and daily liquidity. The Bank and its subsidiary also evaluate the estimated cash flows and the availability of current collaterals in case of obtaining more deposits.
Liquidity risk is restricted by holding a high proportion of cash and cash equivalents in the form of Nostro accounts, term deposits at the State Bank of Vietnam and other credit institutions and valuable papers. The risk-weighted ratios are used to manage liquidity risk.
The maturity term of assets and liabilities represents the remaining period of assets and liabilities calculated from the consolidated balance sheet date to the settlement date in accordance with contractual terms and conditions.
The following assumptions and conditions are applied in the maturity analysis of the Bank and its subsidiary's assets and liabilities:
Balances with the State Bank of Vietnam are classified as demand deposits which include compulsory deposits.
The maturity term of investment securities is calculated based on the maturity date of each kind of securities.
The maturity term of due from and loans to other banks; and loans to customers is determined based on the maturity date as stipulated in contracts. The actual maturity term may be altered because loan contracts may be extended.
The maturity term of long-term investments is considered as more than one year because these investments do not have specific maturity date.
The maturity term of deposits and borrowings from other banks and customer deposits is determined based on features of these items or the maturity date as stipulated in contracts. Vostro account and demand deposits are transacted as required by customers, and therefore, being classified as current accounts. The maturity term of borrowings and term deposits is determined based on the maturity date in contracts. In fact, these amounts may be rotated, and therefore, they last beyond the original maturity date.
The maturity term of fixed assets is determined on the remaining useful life of assets.
37.2
(b)
►
►
►
►
►
►
as at and for the financial year ended 31 December 2014
FIN
AN
CIA
L RI
SK M
AN
AG
EMEN
T PO
LICI
ES (c
onti
nued
)
Mar
ket r
isks
(con
tinue
d)37
.2
Liqu
idit
y ri
sk (c
ontin
ued)
Belo
w ta
ble
show
s th
e an
alys
is o
f the
rem
aini
ng m
atur
ity te
rm o
f ass
ets
and
liabi
litie
s as
at 3
1 D
ecem
ber 2
014:
150 Annual Report 2014
37.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) B05/TCTD-HN
Curre
ntOv
erdue
VND m
illion
Cash
, gold
and p
recio
us st
ones
Balan
ces w
ith th
e Sta
te Ba
nk of
Viet
nam
Due f
rom
and l
oans
to ot
her b
anks
- gr
oss
Deriv
ative
s and
othe
r fina
ncial
asse
tsLo
ans a
nd ad
vanc
es to
custo
mer
s - gr
oss
Inve
stmen
t sec
uriti
es -
gros
s
Long
-term
inve
stmen
ts - g
ross
Othe
r asse
ts - g
ross
Borro
wing
s fro
m th
e Gov
ernm
ent a
nd SB
VDu
e to a
nd bo
rrowi
ngs f
rom
othe
r ban
ks
Custo
mer
depo
sits
Valua
ble pa
pers
issue
d
Net l
iqui
dity
gap
Abov
e 3
mon
ths
VND m
illion
Up to
3 m
onth
s
VND m
illion
Up to
1 m
onth
VND m
illion
From
1 to
3 m
onth
s
VND m
illion
From
3 to
12
mon
ths
VND m
illion
From
1 to
5 y
ears
VND m
illion
Abov
e 5 y
ears
VND m
illion
Tota
l
Tota
l ass
ets
Othe
r liab
ilities
Tota
l lia
bilit
ies
,,,,
,,,
,,
,,
,,,
,,
,,,,,
,,
,
,,
,,,,,,
,,
,,,
,,,,
,,,
,,,
,,
,
,,
,,
,,
,
,
,,
,,
,
,
,,
,,
,,
,,
,,
,,
,,
,,,,,,
,,,,,,,
,,,
,,
,
,,,,,,,,,,,,,,,, ,
,, ,,,,,,,,,,
,, ,
,
,
,,
,,
Asse
ts
Fixed
asse
ts
Liabi
litie
s
VI. Vietnam Export Import Commercial Joint Stock Bank
Annual Report 2014 151
as at and for the financial year ended 31 December 2014NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) B05/TCTD-HN
CAPITAL AND OPERATING LEASE COMMITMENTS
SUPPLEMENTAL NOTES ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES ACCORDING TO CIRCULAR NO. 210/2009/TT-BTC
38.
39.
Capital commitments
On 6 November 2009, the Ministry of Finance issued Circular No. 210/2009/TT-BTC (“Circular 210”) providing guidance for the adoption of the International Financial Reporting Standards on presentation and disclosures of financial instruments which is effective for financial years beginning on or after 1 January 2011.
Circular 210 only requires for the presentation and disclosures of financial instruments, and therefore, the Bank and its subsidiary solely apply the concepts of financial assets, financial liabilities and related concepts for the supplemental presentation according to Circular 210. Items of assets, liabilities and equity of the Bank and its subsidiary have been recognized and accounted for in accordance with the prevailing stipulations of the Vietnamese Accounting Standards and Accounting System for Credit Institutions and the statutory requirements relevant to preparation and presentation of consolidated financial statements.
Financial assets of the Bank and its subsidiary within the scope of Circular 210 comprise cash, gold, precious stones, balances with the SBV, due from and loans to other banks, loans and advances to customers, trading and investment securities, receivables and other assets under monetary derivative contracts.
Financial assets
Operating lease commitments
38.1
38.2
Irrevocable operating lease commitments
- Due within one year- Due from two to five years- Due after five years
In which:
VND million VND million
,,,
,
,,,
,
Capital commitments on building constructions and office equipment acquisition
VND million VND million
,,
152 Annual Report 2014
as at and for the financial year ended 31 December 2014NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) B05/TCTD-HN
SUPPLEMENTAL NOTES ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES ACCORDING TO CIRCULAR NO. 210/2009/TT-BTC (continued)
39.
Financial assets (continued)
According to Circular 210, financial assets are classified appropriately, for the purpose of disclosure in the consolidated financial statements, into one of the following categories:
Financial asset at fair value through profit or loss:
Held-to-maturity investments:
Loans and receivables:
Available-for-sale assets:
is a financial asset that meets either of the following conditions:
are non-derivative financial assets with fixed or determinable payments and fixed maturity that the Bank and its subsidiary have the positive intention and ability to hold to maturity other than:
are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market other than:
are non-derivative financial assets that are designated as available for sale or are not classified as:
a) It is classified as held for trading. A financial asset is classified as held for trading if:
b) Upon initial recognition, it is designated by the Bank and its subsidiary as at fair value through profit or loss.
a) Those that the Bank and its subsidiary upon initial recognition designate as at fair value through profit or loss;
a) Those that the Bank and its subsidiary intend to sell immediately or in the near term, which shall be classified as held for trading, and those that the Bank and its subsidiary upon initial recognition designate as at fair value through profit or loss;
b) Those that the Bank and its subsidiary designate as available for sale; and
b) Those that the Bank and its subsidiary upon initial recognition designate as available for sale; or
b) Held-to-maturity investments;
c) Financial assets at fair value through profit or loss.
a) Loans and receivables;
c) Those that meet the definitions of loans and receivables.
c) Those for which the holder may not recover substantially all of its initial investment, other than because of credit deterioration, which shall be classified as available for sale.
- It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;
- There is evidence of a recent actual pattern of short-term profit-taking; or
- It is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument);
►
►
►
►
VI. Vietnam Export Import Commercial Joint Stock Bank
Annual Report 2014 153
as at and for the financial year ended 31 December 2014NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) B05/TCTD-HN
SUPPLEMENTAL NOTES ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES ACCORDING TO CIRCULAR NO. 210/2009/TT-BTC (continued)
39.
Financial liabilities
Offsetting financial assets and liabilities
Fair value of the financial instruments
Financial liabilities of the Bank and its subsidiary under Circular 210 consist of borrowings from the Government and the State Bank of Vietnam, due to and borrowings from other banks, customer deposits, grants, entrusted funds and loans exposed to risks, valuable papers issued, payables and other liabilities under monetary derivative contracts.
Financial assets and financial liabilities are offset and reported at the net amount in the consolidated balance sheet if, and only if, the Bank and its subsidiary have an enforceable legal right to offset financial assets against financial liabilities and the Bank and its subsidiary have intention to settle on a net basis, or the realization of the assets and settlement of liabilities is made simultaneously.
The Bank and its subsidiary use the following methods and assumptions to estimate the fair value: The fair value of cash on hand and short-term deposits equivalent to the carrying value of these items because they are short-term.
According to Circular 210, financial liabilities are classified appropriately, for the purpose of disclosure in the consolidated financial statements, into one of the following categories:
Financial liabilities at fair value through profit or loss
Financial liabilities at amortized cost
are financial liabilities that meet either of the following conditions:
Financial liabilities which are not categorized as at fair value through profit or loss will be classified as financial liabilities at amortized cost.
a) They are classified as held for trading. A financial liability is classified as held for trading if:
b) Upon initial recognition they are designated by the Bank and its subsidiary as at fair value through profit or loss.
- It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;
- There is evidence of a recent actual pattern of short-term profit-taking; or
- It is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).
►
►
154 Annual Report 2014
as at and for the financial year ended 31 December 2014
SUPPLEMENTAL NOTES ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES ACCORDING TO CIRCULAR NO. 210/2009/TT-BTC (continued)
39.
Carr
ying
val
ue a
nd fa
ir v
alue
of f
inan
cial
ass
ets a
nd fi
nanc
ial l
iabi
litie
s
The
carr
ying
val
ue a
nd fa
ir va
lue
of th
e Ba
nk a
nd it
s su
bsid
iary
's fin
anci
al in
stru
men
ts a
s at
31
Dec
embe
r 201
4 ar
e pr
esen
ted
as b
elow
:
(*)
Th
e fa
ir va
lue
of th
ese
finan
cial
ass
ets
and
finan
cial
liab
ilitie
s ca
nnot
be
dete
rmin
ed a
s th
ere
is n
o sp
ecifi
c gu
idan
ce o
f Vie
tnam
ese
Acco
untin
g
Stan
dard
s an
d Ac
coun
ting
Syst
em o
n de
term
inat
ion
of fa
ir va
lue
of fi
nanc
ial i
nstr
umen
ts.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) B05/TCTD-HN
39.1
VI. Vietnam Export Import Commercial Joint Stock Bank
Carry
ing va
lue
VND m
illion
FINA
NCIA
L ASS
ETS
Cash
, gold
and p
recio
us st
ones
Balan
ces w
ith th
e SBV
Due f
rom
and l
oans
to ot
her b
anks
Deriv
ative
s and
othe
r fina
ncial
asse
tsLo
ans a
nd ad
vanc
es to
custo
mer
s
Avail
able-
for-s
ale se
curit
ies
Held-
to-m
atur
ity se
curit
ies
Othe
r lon
g-te
rm in
vestm
ents
Othe
r fina
ncial
asse
ts
FINA
NCIA
L LIA
BILI
TIES
Borro
wing
s fro
m th
e Gov
ernm
ent a
nd SB
V
Due t
o and
borro
wing
s fro
m ot
her b
anks
Custo
mer
depo
sits
Valua
ble pa
pers
issue
d
Othe
r fina
ncial
liabil
ities
Held
for tr
ading
VND m
illion
Held-
to-ma
turity
sec
uritie
s
VND m
illion
Loan
s and
rec
eivab
les
VND m
illion
Avail
able-
for-sa
le sec
uritie
s
VND m
illion
Othe
r asse
ts an
dlia
bilitie
s at
amor
tized
cost
VND m
illion
Tota
l
VND m
illion
Fair v
alue
,,,,,,,,,,
, , ,
,,
,,,,,,,,
,,
,
,
,,,,
, , ,
,,
, ,
,,,,,,,,
,,
,
,,,,,
,,,,,,,,
,
,,
, ,,,,,
Annual Report 2014 155
as at and for the financial year ended 31 December 2014NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) B05/TCTD-HN
SUPPLEMENTAL NOTES ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES ACCORDING TO CIRCULAR NO. 210/2009/TT-BTC (continued)
HEDGING
SUBSEQUENT EVENTS AFTER THE CONSOLIDATED BALANCE SHEET DATE
EXCHANGE RATES OF APPLICABLE FOREIGN CURRENCIES AGAINST VIETNAM DONG AT YEAR END
39.
40.
41.
42.
In the year, the Bank and its subsidiary did not have any financial assets which have been pledged or mortgaged to secure for loans or have been transferred under the sale and repurchase contracts with the SBV and other credit institutions.
For assets and liabilities management, the Bank and its subsidiary has used derivatives for hedging to mitigate credit risk and market risk. Hedging is applied to specific derivatives, a portfolio of financial instruments having fixed interest rate as well as total financial position.
There has been no significant event occurring after the consolidated balance sheet date, which would require adjustments or disclosures to be made in the consolidated financial statements.
The Bank and its subsidiary has used fair value hedging to mitigate the risk from the fluctuation of financial assets and liabilities' fair value caused by the changes in interest rate and foreign exchange rate. For interest rate hedging, hedged financial instruments include loans and advances to customers, available-for-sale debt securities and issued valuable papers. For currency hedging, the Bank has used swap contracts.
Financial assets which have been pledged, mortgaged39.2
VNDVND
SJC gold (one tenth of a tale) , , , ,
, ,
, ,
, ,
, ,
, ,
, ,
, ,
156
VI.3. Opinions of internal auditors
In 2014, based on the approved internal audit plan, the Board of Internal Auditors conducted
auditing Head Office's divisions, centers, departments, sections, subsidiary, branches and transaction
offices in Eximbank's network by means of sampling and risk orientation, prioritizing to focus on auditing
the units which are considered having higher risk levels than others.
The responsibilities of the Board of Internal Auditors are giving opinions about:
- Eximbank's financial statements of 2014
- Completeness of the internal control system
- Compliance by the units
Scope of auditing in 2014:
- Head Office's divisions, departments/sections/centers
- Branches
- Transaction offices
Pursuant to Decision No. 37/2006/QD-NHNN dated August 01, 2006 by the State Bank of Vietnam,
the Board of Internal Auditors of Eximbank was established under Decision No. 99/EIB/HDQT-07 dated
May 03, 2007 and operated under the Regulations on Internal Audit issued in conjunction with Decision
No. 35/EIB/HDQT-07 dated March 07, 2007 by the Board of Directors of Eximbank.
Pursuant to the Law on Credit Institutions 2010, Circular No. 44/2011/TT-NHNN dated December
29, 2011 by the State Bank of Vietnam, on August 06, 2012, the Board of Directors of Eximbank issued
Decision No. 285/2012/EIB/QD-HDQT providing for “Regulation on the organization and operations of
the Board of Internal Auditors” superseding the previous Regulations on Internal Audit (issued under
Decision No. 35/EIB/HDQT-07)
Therefore, the organization and operations of Eximbank's Board of Internal Auditors are
performed in accordance with the Regulation on the organization and operations of the Board of Internal
Auditors, coming into effect from August 06, 2012.
Besides, the Board of Internal Auditors must observe auditing standards and professional ethical
norms. The purpose of consulting the opinions of the Board of Internal Auditors is to provide necessary
assurance for readers of the financial statements, Board of Directors and Board of Supervisors in assessing
the efficiency of the internal control system. Also, recommendations by the Board of Internal Auditors are
raised for the units to perfect their internal control system, and remedy the errors.
Annual Report 2014
Opinions of Internal Auditors
Internal auditors had audited the interim and whole-year financial statements of 2014, and
monitored risk indicators as required, and hereby confirmed that the financial statements of 2014 of
Eximbank were prepared in accordance with prevailing regulations and forms enclosed with Decision No.
16/2007/QD–NHNN dated April 18, 2007 by the State Bank of Vietnam providing for the financial
reporting regimes of credit institutions and Circular No. 52/2012/TT–BTC dated April 05, 2012 by the
Ministry of Finance giving guidance on the disclosure in the stock market.
In all material aspects, the figures reflected in the financial statements of 2014 of Eximbank were
sufficiently, apparently, and reasonably shown and independently audited by Ernst & Young.
The financial indicators of Eximbank were within the permitted limits as defined by the State Bank of
Vietnam.
Internal auditors realized that the internal control system of Eximbank was fully set up for all
operations, in all divisions, departments/sections/centers, branches and transaction offices, ensuring
compliance and risk control during their course of operation. Risks in operations were fully identified and
assessed, thus proper risk management policies are timely given in line with actual conditions.
Especially in 2014, general difficult progresses of Vietnam's economy and unfavorable business
environment directly affected the domestic financial-banking sector. Based on the State Bank of
Vietnam's regulations, Eximbank paid attention to analyze and evaluate such major risks as credit risk
(particularly actual status of credit quality), operational risk, market risk (particularly liquidity risk), legal
risk, and risks due to regulatory policies concerning banking activities. Through which, Eximbank's
leaders issued appropriate decisions and had cautious movements in business policies so as for the Bank
to maintain stability and be able to develop in harmony with common growth pace of Vietnamese
banking sector.
In addition, regular supervision was also attached with importance in all operational areas so as
to both promote businesses and ensure safety in activities. Controlling procedures including risk
management were sufficiently expressed in operational workflows and constantly improved to suit with
risk management objectives and development process of Eximbank.
From the opinions collected during several audits in 2014, the Board of Internal Auditors assessed
that the internal control system of Eximbank was in line with the regulations of the State Bank of Vietnam.
Although Eximbank suffered direct impacts from common obstacles of Vietnamese economy as well as
157Annual Report 2014
the consequences accumulated over the years, and its business performance in 2014 was at a lower level
than that of previous years (due to reversing accrued interest with respect to restructured loans and loans
sold to VAMC, and setting aside provision as per the general regulations of the State Bank of Vietnam);
however, Eximbank still ensured prudent ratios in operations, especially tightly controlling over actual
status of credit quality to serve as premise for sustainable development in the coming years.
158 Annual Report 2014
MILESTONES IN 2014
160
AWARDS
In March 2014, Vietnam Export Import Commercial Joint Stock Bank-Eximbank was honorably
bestowed “Excellence in International Payments” award by The Bank of New York Mellon. This award is the
acknowledgement of a well-established and reputable foreign financial institution for Eximbank's
automatic payment message quality.
In July 2014, Eximbank was presented “Best Annual Report 2014” award by Ho Chi Minh City Stock
Exchange and Vietnam Investment Review newspaper. This is the fourth consecutive year Eximbank's
Annual Report wins high position in the polls.
In August 2014, Eximbank continued to receive the “Best Bank in Vietnam 2014” award for the
second consecutive year by Euromoney, a leading magazine of Euromoney Institutional Investor PLC
which is based in London.
In August 2014, Eximbank continued to be ranked in Top 1,000 World Banks in 2014 by The
Banker, a leading magazine in the financial industry. Eximbank is honored to be in the list of the world's
leading banks for many consecutive years. Such ranking has proved Eximbank's outstanding growth in
the period of world economic integration and development.
In August 2014, Eximbank was bestowed Top 100 Virtue-Talented Managers and Top 100 Most
Outstanding Enterprises awards by Vietnam Enterprise Association.
In October 2014, Eximbank was selected as “Strong and Sustainable Enterprises 2014” by
Businessmen Cultural Center.
COMMUNITY-ORIENTED ACTIVITIES
Apart from focusing on business development and brand promotion, Eximbank also expressed
its interests in and sharing towards the community, thus enhancing the Bank's image and brand value to
all social classes, and discriminating its trademark from other peers, by means of:
- Educational sponsorship for scholarship funds, educational promotion associations, school
construction, etc.
- Medical aid to poor people in way of offering health insurance cards, constructing medical
service units and consolidating the healthcare network.
- Sponsorship of the construction of houses and bridges, gratitude programs, prevention of
natural disasters, and many other programs.
- Supporting soldiers at islands through the “Heading towards the homeland's islands, DK1
Annual Report 2014
161Annual Report 2014
drilling rig” program, sponsoring scholarships for soldiers' children through the “Caring hinterland,
assuring islands” program.
- Cooperating with the Youth Union of Ho Chi Minh City to build a Green-Clean-Beautiful
environment.
After a year of implementing charity and community-oriented programs, Eximbank gave a hand
to share difficulties and contribute to bring joy to the community and society, typically as:
- Facilitating poor patients in Ho Chi Minh City to receive health insurance cards for free medical
treatment.
- Supporting to care for fishermen and sea police force through the “For the beloved Spratly
islands, for the nation's front” Fund.
- Supporting difficulty-overcoming scholarships of Banking University of Ho Chi Minh City and
more than 1,000 scholarships for poor pupils and students with great desire for education all over the
country, such as Da Nang, Quang Ngai, Ho Chi Minh City, etc.
- Supporting the Youth Union of Ho Chi Minh City to implement 03 social programs.
- Supporting the Elderly Care Fund of Ho Chi Minh City.
- Supporting the construction and renovation of schools and kindergartens for children in
remote areas.
The sponsorship of charity and community-oriented programs has created great resonance for
Eximbank's brand name, and its image has also become familiar and touched people's hearts. The above
contributions have made the Bank's brand name be acknowledged and highly appreciated by the
community, associations and society.
OPERATING NETWORK
EXIMBANK'S REPRESENTATIVE OFFICE IN HANOI
EXIMBANK HANOI BRANCH
EXIMBANK THU DO BRANCH
EXIMBANK LONG BIEN BRANCH
EXIMBANK BA DINH BRANCH
Hang Bong Transaction Office
189 Hang Bong St., Hoan Kiem Dist., Hanoi.(Levels 1-5) Building No.91, Nguyen Thai Hoc St., Hanoi
Tel: (04) 3928 9945 Fax: (04) 3928 9943Tel: (04) 85853153 Fax: (04) 3933 6081
Trung Yen Transaction Office
19 Tran Hung Dao St., Hoan Kiem Dist., Hanoi. No. 143, Trung Kinh St., Cau Giay Dist., Hanoi
Tel: (04) 3824 2306 Fax: (04) 3826 7798 Tel: (04) 3786 8516 Fax: (04) 3786 8517
Nguyen Du Transaction Office Trung Hoa Transaction OfficeLevels 1+2, Build No. 76, Mai Hac De St., Hanoi. Lot NV-B30, Nguyen Thi Dinh St., Hanoi.Tel: (04) 6278 3128 Fax: (04) 6278 3125 Tel: (04) 6251 1795 Fax: (04) 6251 1749
Bach Mai Transaction Office Cua Dong Transaction OfficeLevels 2+3, Building No. 134, Bach Mai St., Hanoi. No.1 Duong Thanh St., Hoan Kiem Dist., Hanoi.Tel: (04) 3627 4980 Fax: (04) 3627 6724 Tel: (04) 3923 3681 Fax: (04) 3923 3680
Hang Than Transaction Office Thang Long Transaction Office18, Hang Than St., Ba Dinh Dist., Hanoi. Technological Center, Thang Long Industrial Zone, Hanoi.Tel: (04) 3927 4349 Fax: (04) 3927 4350 Tel: (04) 3959 0175 Fax: (04) 3959 0177
Xuan Dieu Transaction Office
Levels 1-5 Building No. 257 Giai Phong St., Hanoi96 Yen Phu St., Yen Phu Ward, Tay Ho Dist., Hanoi.
Tel: (04) 3627 4490 Fax: (04) 3627 4495Tel: (04) 3719 0692 Fax: (04) 3719 0693
Tay Ho Transaction Office439 Tran Khat Chan St., Hai Ba Trung Dist., Hanoi509B Lac Long Quan St., Tay Ho Dist., Hanoi.Tel: (04) 3533 4628 Fax: (04) 3533 4638Tel: (04) 3758 8035 Fax: (04) 3758 8025
Tay Son Transaction OfficeNguyen Chi Thanh Transaction Office108 Tay Son St., Dong Da Dist., Hanoi
Tel: (04) 3533 4628 Fax: (04) 3533 4638
Ly Thuong Kiet Transaction Office558 Nguyen Van Cu St., Long Bien Dist., Hanoi30 Ly Thuong Kiet St., Hoan Kiem Dist., Hanoi.Tel: (04) 3877 9108 Fax: (04) 3877 9111Tel: (04) 3938 6994 Fax: (04) 3938 6995
Viet Hung Transaction OfficeBa Trieu Transaction OfficeLevel 1 No. 567 Ngo Gia Tu St., Long Bien Dist., Hanoi.Levels 1-4, Building No. 2C, Thai Phien St., Hanoi.Tel: (04) 3652 7188 Fax: (04) 3652 7187Tel: (04) 3278 0015 Fax: (04) 3278 0007
Dong Xuan Transaction Office 67 Hang Bo St., Hoan Kiem Dist., Hanoi.
Levels 1-2, HAREC Building No. 4A Lang Ha St., Hanoi.Tel: (04) 3929 0250 Fax: (04) 3929 0254
Tel: (04) 3776 3998 Fax: (04) 3776 3989
Nguyen Thai Hoc Transaction OfficeMy Dinh Transaction Office
Levels 1-2, Bld No. 91 Nguyen Thai Hoc St., Hanoi60 Lang Ha St., Lang Ha Wd., Dong Da Dist., Hanoi
Tel: (04) 3747 8940 Fax: (04) 3747 8941Tel: (04) 3794 0146 Fax: (04) 3794 0145
No.91A Nguyen Chi Thanh St., Dong Da Dist., Hanoi.
Tel: (04) 6275 2400 Fax: (04) 6275 2404
Tran Khat Chan Transaction Office
NORTH REGION
Annual Report 2014 163
Lo Duc Transaction Office Nomura Hai Phong Industrial Zone Transaction Office
Level 1 No. 73 Lo Duc St., Hai Ba Trung Dist., Hanoi. Side gate of Nomura Industrial Zone, Hai Phong City.
Tel: (04) 3972 8517 Fax: (04) 3972 8516 Tel: (0313) 3291929 Fax: (0313) 3291 899
Levels 1+ 2, Bld No. 292 Ty Son, Dong Da Dist., Hanoi 14-16 Tran Hung Dao St., Ha Long City, Quang Ninh.ÑT: (04) 35737 732 Fax: (04).35737 738 Tel: (033) 3518 585 Fax: (033) 3518 586
Kim Lien Transaction Office Cam Pha Transaction Office206 Xa Dan St., Dong Da Dist., Hanoi. 114 Tran Phu St., Block 30b, Cam Pha Town, Quang Ninh.Tel: (04) 3573 7736 Fax: (04) 3573 8201 Tel: (033) 3962 828 Fax: (033) 3962 829
Tran Dang Ninh Transaction Office Mong Cai Transaction Office6C Block 24, Nghia Do Wd., Cau Giay Dist., Hanoi 01 Hung Vuong St., Mong Cai City, Quang Ninh.Tel: (04) 3793 1873 Fax: (04) 3793 1630 Tel: (033) 3779 979 Fax: (033) 3779 777
Ha Dong Transaction Office Quang Yen Transaction Office24 Quang Trung St., Ha Dong, Hanoi. 66 Le Loi St., Quang Yen Town, Quang Ninh.Tel: (04) 6325 0172 Fax: (04) 6325 0180 Tel: (033) 3559 188 Fax: (033) 3559 299
Dong Tam Transaction Office Uong Bi Transaction Office10 B2, Tran Dai Nghia St., Hai Ba Trung Dist., Hanoi 434 Quang Trung St., Uong Bi Town, Quang Ninh.Tel: (04) 3628 4715 Fax: (04) 3628 4701 Tel: (033) 3567 679 Fax: (033) 3567 689
Ha Long Transaction OfficeMachinco Building, No. 444 Hoang Hoa Tham St., Hanoi. Ground Floor, Post Office Building, Ha Long, Quang Ninh.ÑT: (04) 37557 841 Fax: (04) 37557 535 Tel: (033) 3815 585 Fax: (033) 3815 586
Nguyen Co Thach Savings Fund
Level 1 Building No. 136, Hoang Quoc Viet St., Hanoi. 182 Nguyen Van Cu St., Vinh City, Nghe An. Tel: (04) 3212 1047 Fax: (04) 3212 1044 Tel: (038) 3585 717 Fax: (038) 3585 722
Nam Vinh Transaction Office32 Tran Phu St., Ngo Quyen Dist., Hai Phong City. 343 Le Duan St., Trung Do Ward, Vinh City, Nghe An Tel: (031) 3757 578 Fax: (031) 375 7571 Tel: (038) 3552 838 Fax: (038) 3552 468
Tran Nguyen Han Transaction Office Bac Vinh Transaction Office274 Tran Nguyen Han St., Le Chan Dist., Hai Phong City. 150 Nguyen Trai St., Vinh City, Nghe An Tel: (031) 3786 963 Fax: (031) 3786 965 Tel: (038) 3513 537 Fax: (038) 3513 536
Thuy Nguyen Transaction Office Thanh Chuong Transaction OfficeFront side of TL359 St., Phu Lien Hamlet, Hai Phong City. Block 4, Thanh Chuong Town, Nghe An Tel: (031) 3653 596 Fax: (031) 3653 586 Tel: (038) 6933888 Fax: (038) 6932 555
To Hieu Transaction Office Yen Thanh Transaction Office172 To Hieu St., Le Chan Dist., Hai Phong City. Block 1, Yen Thanh Town, Yen Thanh Dist., Nghe An Tel: (031) 3611 996 Fax: (031) 3611 995 Tel: (038) 368 5555 Fax: (038) 368 5556
EXIMBANK DONG DA BRANCH EXIMBANK QUANG NINH BRANCH
EXIMBANK CAU GIAY BRANCH
EXIMBANK VINH BRANCH
EXIMBANK HAI PHONG BRANCH
Annual Report 2014164
Dien Chau Transaction Office Cau Kenh Bac Transaction Office
Kiosk No.2, Dien Chau Trading Center, Nghe An 385 Nguyen Van Cu St., Vinh City, Nghe An
Tel: (038) 377 6776 Fax: (038) 360 2602 Tel: (038) 357 5556 Fax: (038) 357 5557
Do Luong Transaction Office
Block 3, Do Luong Town, Do Luong Dist., Nghe An
Tel: (038) 871 8668 Fax: (038) 871 8568
EXIMBANK QUANG NGAI BRANCH
EXIMBANK DA NANG BRANCH EXIMBANK QUANG NAM BRANCH
EXIMBANK HUE BRANCH
EXIMBANK NHA TRANG BRANCH
EXIMBANK HUNG VUONG BRANCH
Hoa Cuong Transaction Office
35A - 35B Hung Vuong, Quang Ngai City, Quang Ngai. 205 Phan Chau Trinh St., Hai Chau Dist., Da Nang City.
Tel: (055) 3713 318 Fax: (055) 3713 319 Tel: (0511) 3621 701 Fax: (0511) 3621 703
Nguyen Nghiem Transaction Office Thuan Phuoc Transaction Office
268 Nguyen Nghiem St., Quang Ngai City 180-182 Dong Da St., Hai Chau Dist., Da Nang
Tel: (055) 3713 318 Fax: (055) 3713 319 Tel: (0511) 3573 222 Fax: (0511) 3573 224
48 Tran Phu St., Hai Chau Dist., Da Nang City. 226-228 Phan Chu Trinh St., Tam Ky City, Quang Nam
Tel: (0511) 3830 889 Fax: (0511) 3826 674 Tel: (0510) 6252 246 Fax: (0510) 6252 247
Hai Chau Transaction Office Hoi An Transaction Office
484 Hoang Dieu St., Hai Chau Dist., Da Nang City. 22 Tran Hung Dao St., Hoi An City, Quang Nam
Tel: (0511) 3552 710 Fax: (0511) 3552 709 Tel: (0510) 3926 555 Fax: (0510) 3926 558
Thanh Khe Transaction Office Nam Phuoc Transaction Office
203 Ong Ich Khiem St., Hai Chau Dist., Da Nang City. National Highway No. 1A, Long Xuyen 1 Str., Quang Nam
Tel: (0511) 3751 736 Fax: (0511) 3751 735 Tel: (0510) 3777 368 Fax: (0510) 3776 368
Ham Nghi Transaction Office
44A Ham Nghi St., Thanh Khe Dist., Da Nang City. 205 Tran Hung Dao St., Phu Hoa Ward, Hue City
Tel: (0511) 3653892 Fax: (0511) 3653 891 Tel: (054) 3588 678 Fax: (054) 3588 603
Son Tra Transaction Office
794-796 Ngo Quyen St., Son Tra Dist., Da Nang City. 63 Yersin St., Phuong Sai Ward, Nha Trang City
Tel: (0511) 3937 066 Fax: (0511) 3937 067 Tel: (058) 3811 888 Fax: (058) 3826 715
Quang Trung Transaction Office
151-153 Nguyen Van Linh St., Thanh Khe Dist., Da Nang. 61A Quang Trung St., Loc Tho Ward, Nha Trang City
Tel: (0511) 3565 347 Fax: (0511) 3866 596 Tel: (058) 3228 075Fax: (058) 3528 068
Dien Bien Phu Transaction Office Dien Khanh Transaction Office
433 Dien Bien Phu St., Thanh Khe Dist., Da Nang City. 246 Lac Long Quan, Dien Khanh Town, Nha Trang City
Tel: (0511) 3720 474 Fax: (0511) 3720 473 Tel: (058) 3895 595 Fax: (058) 3895 596
Cho Con Transaction Office Le Hong Phong Transaction Office
336-338 Hung Vuong St., Thanh Khe Dist., Da Nang City. 584 Le Hong Phong St., Nha Trang City
Tel: (0511) 3826 637 Fax: (0511) 3826 638 Tel: (058) 3889 919Fax: (058) 3888 299
CENTRAL AND HIGHLANDS REGION
Annual Report 2014 165
EXIMBANK BUON MA THUOT BRANCH
EXIMBANK DA LAT BRANCH
Nguyen Tat Thanh Transaction Office
114 – 116 Phan Boi Chau St., BMT City, Dac Lac 316 Nguyen Tat Thanh St., Buon Ma Thuot City, Dac Lac
Tel: (0500) 6250 414 Fax: (0500) 6250 411 Tel: (0500) 3975 858 Fax: (0500) 3975 856
Buon Ho Transaction Office
327 Hung Vuong St., Buon Ho Wd., Dac Lac 2D-2D/1-2E Nguyen Van Troi St., Da Lat City, Lam Dong.
Tel: (0500) 3571 506/7/9 Fax: (0500) 3571508 Tel: (063) 3522 111 Fax: (063) 3522 115
Buon Ma Thuot Market Transaction Office Duc Trong Transaction OfficeKiost No.C21 BMT Market, Thong Nhat Wd., BMT No. 25 Thong Nhat St.,, Duc Trong Dist., Lam Dong.Tel: (0500) 3936 668 Fax: (0500) 3936 667 Tel: (063) 3651 111 Fax: (063) 3651 115
Phan Chu Trinh Transaction Office Bao Loc Transaction Office240 Phan Chu Trinh St., Buon Ma Thuot City, Dac Lac 11 De Tham St., Ward 1, Bao Loc Town, Lam Dong.Tel: (0500) 3977 227/8/9 Fax: (0500) 3977 226 Tel: (063) 6260 090 Fax: (063) 6260 095
Le Duan Transaction OfficeChi Lang Transaction Office
420 Le Duan St., Buon Ma Thuot City, Dac LacBlock A7, Suong Mai Planning Area, Da Lat, Lam Dong.
Tel: (0500) 3934 848 Fax: (0500) 3934 747Tel: (063) 3565 153 Fax: (063) 3565 155
EXIMBANK DONG NAI BRANCH EXIMBANK BINH DUONG BRANCH
EXIMBANK BA RIA – VUNG TAU BRANCH
223 Ha Huy Giap St., Bien Hoa City, Dong Nai. 244 Binh Duong Blvd., Thu Dau Mot Town, Binh Duong
Tel: (0613) 3915 185 Fax: (0613). 3915 187 Tel: (0650) 3872 468 Fax: (0650) 3872 460
Long Thanh Transaction Office Binh Duong Canary Transaction Office
National Road 51A, Block 19, Long Thanh Dist., Dong Nai. 231 Yersin St., Thu Dau Mot Town., Binh Duong.
Tel: (061) 3501 777 Fax: (061) 3501 780 Tel: (0650) 3872467 Fax : (0650) 3872 464
Trang Bom Transaction Office Di An Transaction Office118 An Chu Hamlet, Trang Bom Dist., Dong Nai. 3/21 Tran Hung Dao St., Di An Dist., Binh Duong.Tel: (061) 8971 678 Fax: (061) 8971 677 Tel: (0650) 3736 965 Fax : (0650) 3736 967
Long Khanh Transaction Office My Phuoc Transaction Office245 Hung Vuong St., Quarter 5, Long Khanh Town, DN C4-Lot16 - Block I, Street No. DA1-1, Rupby Land, BDTel: (061) 3647 990 Fax: (061) 3647 456 Tel: (0650) 3556 245 Fax : (0650) 3556 246
Tan Tien Transaction OfficeTan Phuoc Khanh Transaction Office
113 Pham Van Thuan St., Bien Hoa City, Dong Nai.08 Block E, Tan Phuoc Khanh Trade Center, Binh Duong.
Tel: (061) 3940 898 Fax: (061) 3940 866Tel: (0650) 3659 001 Fax : (0650) 3659 003
Gia Kiem Transaction OfficeLai Thieu Transaction Office
5/E1 National Road No. 20, Thong Nhat Dist., Dong Nai.544A Nguyen Trai St., Lai Thieu Town, Binh Duong.
Tel: (061) 8911 444 Fax: (061) 8911 678Tel: (0650) 3636 036 Fax : (0650) 3636 037
Bien Hoa Transaction Office
881 Pham Van Thuan St., Bien Hoa City, Dong Nai.43 Tran Hung Dao St., Vung Tau City, Ba Ria Vung Tau.
Tel: (0613) 3915 999 Fax: (0613) 3915 888Tel: (064) 3513 674 Fax: (064) 3513 677
SOUTH-EASTERN REGION
Annual Report 2014166
Ba Ria Transaction Office Phuoc Tinh Transaction Office
112-114 Bach Dang St., Ba Ria Town, Ba Ria Vung Tau. 286 (T17) - Block 8, Tan Phuoc Hamlet, Ba Ria Vung Tau.
Tel: (064) 3717 531 Fax: (064) 3717 536 Tel: (064) 3673 738 Fax : (064) 3673 737
Tan Thanh Transaction Office Ngai Giao Transaction Office
No. 27, National Road No. 51, Tan Thanh Dist., BRVT 270 Hung Vuong St., Chau Duc Dist., Ba Ria Vung Tau
Tel: (064) 3876 974 Fax : (064) 3876 976 Tel: (064) 6252 473 Fax: (064) 6252 477
Nguyen An Ninh Transaction Office
513 Nguyen An Ninh St., Vung Tau City, Ba Ria Vung Tau. GF Level 1&2 Dong Xoai ITC, 1029 Phu Rieng Do St., BP
Tel: (064) 3584 433 Fax : (064) 3584 435 Tel: (0651) 3887 878 Fax: (0651) 3838 929
EXIMBANK BINH PHUOC BRANCH
HO CHI MINH CITY REGION
HO CHI MINH CITY BRANCH
EXIMBANK SAIGON BRANCH
Hang Xanh Transaction Office
Building No. 229, Dong Khoi St., Dist 1, Hochiminh City. 155A-155B Dien Bien Phu St.,Binh Thanh Dist., HCM City.
Tel: (08) 38210 055 Fax: (08) 38296 063 Tel: (08) 54221 074 Fax: (08) 54221 075
Trung Son Transaction Office Van Thanh Transaction Office
2-4-6 Street 9A, Trung Son Residential Area, Binh Chanh 85,D2 Street, Van Thanh Bac, Binh Thanh Dist., HCM City.
Tel: (08) 54319 019 Fax: (08) 54319 018 Tel: (08) 35121 033 Fax: (08) 35122 400
Tao Dan Transaction Office
Viet Dragon Tower Building – 141 Nguyen Du St., Dist. 1. Building No. 136-138 Le Thi Hong Gam St., Dist. 1, HCM
Tel: (08) 38270 800 Fax: (08) 38270 804 Tel: (08) 39143 152 Fax: (08) 39143 150
Le Loi Transaction Office Vo Van Tan Transaction Office
08 Le Loi St., Ben Nghe Ward, Dist. 1, Hochiminh City. 365 Vo Van Tan St., Ward 5, Dist. 3, Hochiminh City.
Tel: (08) 38222 162 Fax: (08) 38220 373 Tel: (08) 3818 1345 Fax: (08) 3818 1346
Minh Khai Transaction Office Da Kao Transaction Office
Ground Fl., 179EF CMT 8, Wd. 14, Dist. 3, HCM City. 23A-B Nguyen Dinh Chieu St., Dist. 1, Hochiminh City.
Tel: (08) 38329 877 Fax: (08) 38329 876 Tel: (08) 39110 163 Fax: (08) 39110 161
Truong Dinh Transaction Office Nguyen Cong Tru Transaction Office
Ground Fl., 24B Truong Dinh, Wd. 14, Dist. 3, HCM City. 130 Nguyen Cong Tru St., Dist. 1, Hochiminh City.
Tel: (08) 39330 046 Fax: (08) 39330 047 Tel: (08) 38215 212 Fax: (08) 38215 214
Ben Thanh Transaction Office Truong Son Transaction Office
36-38 Ngo Duc Ke St., Ben Nghe Ward, Dist 1, HCM City. 39B Truong Son St., Tan Binh Dist., Hochiminh City.
Tel: (08) 38271 011 Fax: (08) 38271 012 Tel: (08) 35470 768 Fax: (08) 35470 872
Thanh Da Transaction Office Phan Xich Long Transaction Office
629-631 XVNT St., Wd. 26, Binh Thanh Dist., HCM City. Ha Phan Building–05 Phan Xich Long St., Hochiminh City.
Tel: (08) 54453 380 Fax: (08) 54453 384 Tel: (08) 39959 498 Fax: (08) 39959 493
Bui Thi Xuan Transaction Office Thao Dien Transaction Office
Building No. 122A-B-C Bui Thi Xuan, Dist. 1, HCM City. 14R-14S Quoc Huong St., Dist. 2, Hochiminh City.
Tel: (08) 54043 380 Fax: (08) 54043 381 Tel: (08) 35194 215 Fax: (08) 35194 216
Annual Report 2014 167
Ben Chuong Duong Transaction Office Ho Van Hue Transaction Office
327 Ben Chuong Duong, Dist. 1, Hochiminh City. 164 Ho Van Hue St., Phu Nhuan Dist., Hochiminh City.
Tel: (08) 38364 495 Fax: (08) 38364 675 Tel: (08) 39971 208 Fax: (08) 39973 758
Go Vap Transaction Office
141 Nguyen Chi Thanh St., Dist. 5, Hochiminh City 126 Nguyen Oanh St., Go Vap Dist., Hochiminh City.
Tel: (08) 39575 287 Fax: (08) 39575 290 Tel: (08) 39896 483 Fax: (08) 39896 485
District 6 Transaction Office Phan Dinh Phung Transaction Office
41 Hau Giang, Wd. 2, Dist. 6, Hochiminh City 130 Phan Dinh Phung St., Phu Nhuan Dist., HCM City.
Tel: (08) 39691 638 Fax: (08) 39606 947 Tel: (08) 3995 6925 Fax: (08) 39956 929
Kim Bien Transaction Office Nguyen Thai Son Transaction Office
250 Nguyen Thai Son St., Go Vap Dist., Hochiminh City.161 Hai Thuong Lan Ong St., Wd. 13, Dist. 5, HCM City.
Tel: (08) 39940 257 Fax: (08) 39940 259Tel: (08) 3854 7388 Fax: (08) 3854 7381
Ben Nghe Transaction Office Phu Tho Transaction Office
11A–11B Nguyen Thi Minh Khai St., Dist. 1, HCM City.286 Ly Thuong Kiet St., Wd. 14, Dist. 10, Hochiminh City.
Tel: (08) 39105 433 Fax: (08) 39105 594 Tel: (08) 3866 9620 Fax: (08) 3866 9622
Hong Bang Transaction Office
78 Nguyen Trai St., Wd. 3, Dist. 5 Hochiminh City.258 Hong Bang St., Ward 15, Dist. 5, Hochiminh City.
Tel: (08) 3924 5802 Fax: (08) 3924 5812Tel: (08) 39560 814 Fax: (08) 38556 333
Ky Hoa Transaction Office Hung Dao Transaction Office
773 Le Hong Phong (extended), Dist .10, Hochiminh City.466 Tran Hung Dao St., Wd. 2, Dist. 5, Hochiminh City.
Tel: (08) 38680398 Fax: (08) 38680 397Tel: (08) 39244 885 Fax: (08) 39244 889
Dong Khanh Transaction OfficeAn Dong Transaction Office
81 Bui Huu Nghia, Wd. 5, Dist. 5, Hochiminh City.265 Tran Phu St., Wd. 8, Dist. 5, Hochiminh City.
ÑT: (08) 39244 782 Fax: (08) 39244 783Tel: (08) 3924 5863 Fax: (08) 3838 2553
Hoa Hung Transaction OfficeDistrict 8 Transaction Office
138 To Hien Thanh St., Wd. 15, Dist. 10, Hochiminh City.390-392 Pham Hung St., Wd. 5, Dist. 8, Hochiminh City.
Tel: (08) 39797 972 Fax: (08) 39797 971Tel: (08) 38523 290 Fax: (08) 38523 295
Ly Thai To Transaction Office
65-65A and 63/6 Ba Thang Hai St., Dist. 10, Hochiminh.291 Ly Thai To St., Wd. 9, Dist. 10, Hochiminh City.
Tel: (08) 3929 5959 Fax: (08) 3929 5858Tel: (08) 39274 710 Fax: (08) 39274 715
Ba Thang Hai Transaction OfficeNhat Tao Transaction Office
530 Ba Thang Hai St., Wd. 14, Dist. 10, Hochiminh City.410 Nguyen Tri Phuong St., Wd. 4, Dist. 10, HCM City
ÑT: (08) 38687 490 Fax: (08) 38687 492Tel: (08) 39274 601 Fax: (08) 39274 605
Van Hanh Transaction Office
373 Su Van Hanh (extended), Wd. 12, Dist. 10, HCM City.48-50 Nguyen Huu Cau St., Dist. 1, Hochiminh City.
Tel: (08) 3868 0020 Fax: (08) 3865 9212Tel: (08) 38205 305 Fax: (08) 38205 301
EXIMBANK CHO LON BRANCH
EXIMBANK HOA BINH BRANCH
EXIMBANK DISTRICT 10 BRANCH
EXIMBANK TAN DINH BRANCH
Annual Report 2014168
Ban Co Transaction Office Nguyen Thi Thap Transaction Office
619 Nguyen Dinh Chieu St., Dist. 3, Hochiminh City. 527 Nguyen Thi Thap St., Dist. 7. Hochiminh City
Tel: (08) 3833 3424 Fax: (08) 3833 3427 Tel: (08) 37752 829 Fax: (08) 37752 831
Le Van Sy Transaction Officeõï Phu My Transaction Office
213 Le Van Sy St., Wd. 14, Dist. 3, Hochiminh City. No.07 Lot O, Hoang Quoc Viet St., Dist. 7, Hochiminh City.
Tel: (08) 35264 448 Fax: (08) 35264 449 Tel: (08) 37734 393 Fax: (08) 37734 394
Thanh Thai Transaction Office
61 Thanh Thai St., Wd. 14, Dist. 10, Hochiminh City. 19 Cong Hoa St., Wd. 12, Tan Binh Dist., Hochiminh City.
Tel: (08) 38651 675 Fax: (08) 38651 677 Tel: (08) 38121 617 Fax: (08) 38122 161
Minh Phung Transaction Office Vo Thanh Trang Transaction Office
90 Minh Phung St., Wd. 5, Dist. 6, Hochiminh City. 509 Truong Chinh St., Tan Binh Dist., Hochiminh City.
Tel: (08) 39699 790 Fax: (08) 39699 792 Tel: (08) 38123 619 Fax: (08) 38123 657
An Suong Transaction Office
31-33-27/1 Au Co St., Wd. 14, Dist. 11, Hochiminh City. 379-381 Truong Chinh St., Dist. 12, Hochiminh City.
Tel: (08) 39744 300 Fax: (08) 38652 892 Tel: (08) 35921 905 Fax: (08) 35921 908
Tan Binh Transaction Office Trung Chanh Transaction Office
1115 Cach Mang Thang 8 St., Tan Binh Dist., HCM City. 150/3 Nguyen Anh Thu St., Hoc Mon Dist., Hochiminh
Tel: (08) 39708 639 Fax: (08) 39708 641 Tel: (08) 3718 1495 Fax: (08) 3718 1494
Bac Hai Transaction Office Pham Van Hai Transaction Office
02 Bis Cuu Long St., Bac Hai Residential Block, HCM City. 156 Pham Van Hai St., Tan Binh Dist., Hochiminh City.
Tel: (08) 39708 907 Fax: (08) 39708 905 Tel: (08) 39919 824 Fax: (08) 39919 825
Au Co Transaction Office Nguyen Son Transaction Office
334-336 Au Co St., Tan Binh Dist., Hochiminh City. 230-232 Nguyen Son St., Tan Phu Dist., Hochiminh City.
Tel: (08) 39750 671 Fax: (08) 39750 672 Tel: (08) 39721 840 Fax: (08) 39721 841
Phu Lam Transaction Office
616 Hong Bang St., Wd. 16, Dist. 11, Hochiminh City. H2 Building, Hoang Dieu St., Dist. 4, Hochiminh City.
Tel: (08) 22293 660 Fax: (08) 62641 709 Tel: (08) 3941 4947 Fax: (08) 3941 4948
Dam Sen Transaction Office
377A Minh Phung St., Wd. 10, Dist. 11, Hochiminh City. 42 Vo Van Tan St., Wd. 6, Dist. 3, Hochiminh City
Tel: (08) 38581 660 Fax: (08) 38582 595 Tel: (08) 3930 3861 Fax: (08) 3930 3862
Ly Tu Trong Transaction Office
448A Huynh Tan Phat St., Dist. 7, Hochiminh City. 232 Ly Tu Trong St., Dist. 1, Hochiminh City.
Tel: (08) 37733 063 Fax: (08) 37733 053 Tel: (08) 38246 822 Fax: (08) 38246 832
Phu Xuan Transaction Office Thi Nghe Transaction Office ø
6/8 Block 5, Nha Be Town, Nha Be Dist., Hochiminh City. 117-117A, XVNT St., Binh Thanh Dist., Hochiminh City.
Tel: (08) 38738 790 Fax: (08) 38738 805 Tel: (08) 35146 806 Fax: (08) 35146 804
EXIMBANK CONG HOA BRANCH
EXIMBANK DISTRICT 11 BRANCH
EXIMBANK DISTRICT 4 BRANCH
EXIMBANK DISTRICT 7 BRANCH
Khanh Hoi Transaction Office
Annual Report 2014 169
EXIMBANK PHU MY HUNG BRANCH EXIMBANK BINH PHU BRANCH
EXIMBANK THU DUC BRANCH
EXIMBANK TAN SON NHAT BRANCH
EXIMBANK DISTRICT 3 BRANCH
EXIMBANK BINH TAN BRANCH
Vinamilk Tower, 10 Tan Trao St., Dist. 7, Hochiminh City. 110-112-114 Cho Lon St., Dist. 6, Hochiminh City.
Tel: (08) 5413 5588 Fax: (08) 5413 5589 Tel: (08) 3755 4314 Fax: (08) 3755 4318
Pham The Hien Transaction Office Binh Tri Dong Transaction Office
721 Pham The Hien St., Wd. 4, Dist. 8, Hochiminh City. 141-141A, Str. No. 1, Binh Tri Dong, Binh Tan Dist., HCM
Tel: (08) 38521 153 Fax: (08) 38521 156 Tel: (08) 3817 0493 Fax: (08) 3817 0498
Tan Phong Transaction Office Tan Phu Transaction Office
1469 Nguyen Van Linh, My Toan Residential Area, Dist.7 611-611A Luy Ban Bich St., Tan Phu Dist., HCM City.
Tel: (08) 54123 765 Fax: (08) 54123 769 Tel: (08) 39761 881 Fax: (08) 39761 886
Binh Chanh Transaction Office
147A Vo Van Ngan St., Thu Duc Dist., Hochiminh City. A29/25 National Road No.50, Binh Chanh Dist., Hochiminh
Tel: (08) 37225 450 Fax: (08) 37225 448 Tel: (08) 3758 1771 Fax: (08) 3758 1007
Phuoc Long Transaction Office Go Dau Transaction Office
479 Do Xuan Hop, Phuoc Long B Wd., Dist. 9, HCM City. 54 Go Dau St., Tan Phu Dist., Hochiminh City.
Tel: (08) 36400 869 Fax: (08) 36400 898 Tel: (08) 35594 200 Fax: (08) 35594 204
District 9 Transaction Office
35 Le Van Viet St., Hiep Phu Wd., Dist. 9, Hochiminh City. 307 Nguyen Van Troi St., Tan Binh Dist., Hochiminh City.
Tel: (08) 37360 864 Fax: (08) 37360 872 Tel: (08) 38456 370 Fax: (08) 38456 372
Tam Binh Transaction Office
141 National Road No. 1A, Thu Duc Dist., Hochiminh City. Building No. 21, Ky Dong St., Dist. 3, Hochiminh City.
Tel: (08) 37294 100 Fax: (08) 37294 065 Tel: (08) 3930 0653 Fax: (08) 3930 0516
Le Van Ninh Transaction Office
12 Le Van Ninh St., Thu Duc Dist., Hochiminh City. 10 Kinh Duong Vuong St., Dist. 6, Hochiminh City.
Tel: (08) 38979 479 Fax: (08) 38979 582 Tel: (08) 37527 073 Fax: (08) 37527 076
District 2 Transaction Office An Lac Transaction Office
08 Tran Nao St., Binh Khanh 2 Hamlet, Dist. 2, HCM City. 478-476 Kinh Duong Vuong St., Binh Tan Dist., HCM City.
Tel: (08) 37402 961 Fax: (08) 37402 965 Tel: (08) 37527 991 Fax: (08) 37527 992
Linh Xuan Transaction Office
76 National Highway No. 1K, Block 3, Thu Duc Dist., HCM
Tel: (08) 37246 200 Fax: (08) 37246 204
SOUTH-WESTERN REGION
EXIMBANK AN GIANG BRANCH Long Xuyen Transaction Office
70-72 Hai Ba Trung St., Long Xuyen City, An Giang. 3/4 Ton Duc Thang St., Long Xuyen City, An Giang.
Tel: (076) 394 0880 Fax: (076) 394 0884 Tel: (076) 394 1881 Fax: (076) 394 1884
Chau Doc Transaction Office Phu Tan Transaction Office
56-58-60 Nguyen Van Thoai St., Chau Doc City, An Giang. Trung Hoa Hamlet, Tan Trung Commune, Phu Tan Dist.,
Tel: (076) 356 5881 Fax: (076) 356 5884 Tel: (076) 3588 881 Fax: (076) 3588 884
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Chau Phu Transaction Office
21 Tran Khanh Du St., Cai Dau, Chau Phu, An Giang 70 Hung Vuong St., Wd. 2, Tan An Town, Long An.
Tel: (076)3684 881 Fax: (076) 3684 884 Tel: (072) 3526 526 Fax: (072) 3526 527
Tan Chau Transaction Office
46 Thoaïi Ngoïc Haàu, Tx.Taân Chaâu, tænh An Giang 08 Phan Dinh Phung St., Ninh Kieu Dist., Can Tho City.
Tel: (076) 3536 881 Fax: (076) 3536 884 Tel: (0710) 3821 915 Fax: (0710) 3821 916
Cai Rang Transaction Office
77-79 Le Loi St., Wd. 1, My Tho City, Tien Giang. 171 National Road No. 1A, Cai Rang Dist., Can Tho City.
Tel: (073) 397 6977 Fax: (073) 397 6981 Tel: (0710) 3914 779 Fax: (0710) 3914 778
Cai Lay Transaction Office Hung Loi Transaction Office
41, 30/4 Street, Block 2, Cai Lay Dist., Tien Giang. 221A , Ba Thang Hai St., Ninh Kieu Dist., Can Tho City
Tel: (073) 3710 991 Fax: (073) 3710 995 Tel: (0710) 3783 018 Fax: (0710) 3783 019
Ap Bac Transaction Office An Hoa Transaction Office
366 Ap Bac St., Wd. 5, My Tho City, Tien Giang. 177D Nguyen Van Cu St., Ninh Kieu Dist., Can Tho City.
Tel: (073) 3977 700 Fax: (073) 3977 701 Tel: (0710) 3896562 Fax: (0710) 3896 563
An Phu Transaction Office
Lot P+R, Tran Van Kheo St., Ninh Kieu Dist., Can Tho City. 87, 30/4 St., Ninh Kieu Dist., Can Tho City.
Tel: (0710) 3763 053 Fax: (0710) 3763 052 Tel: (0710) 3733 449 Fax: (0710) 373 3448
O Mon Transaction Office Binh Thuy Transaction Office
292-293National Road No. 91, O Mon Dist., Can Tho City. 308 CMT 8 St., Binh Thuy Dist., Can Tho City.
Tel: (0710) 3817 280 Fax: (0710) 3817 281 Tel: (0710) 3880 446 Fax: (0710) 3880 449
Thot Not Transaction Office
568 National Road No.91(Long Thanh A Area), Can Tho 477 Tran Phu St., Wd. 7, Bac Lieu City, Bac Lieu.
Tel: (0710) 3611 161 Fax: (0710) 3611 181 Tel: (0781) 6252 274 Fax: (0781) 6252 275
An Nghiep Transaction Office
174 Tran Hung Dao St., Ninh Kieu Dist., Can Tho City. 02-04 Pham Hong Thai, Rach Gia City, Kien Giang
Tel: (0710) 3733 124 Fax: (0710) 3733 125 Tel: (077) 3777 716 Fax: (077) 3777 717
Tra Noc Transaction Office
37 Le Hong Phong St., Binh Thuy Dist., Can Tho City.
Tel: (0710) 3881 870 Fax: (0710) 3881 872
EXIMBANK LONG AN BRANCH
EXIMBANK CAN THO BRANCH
EXIMBANK MY THO BRANCH
EXIMBANK TAY DO BRANCH
EXIMBANK BAC LIEU BRANCH
EXIMBANK KIEN GIANG BRANCH
Annual Report 2014 171
