10 Hallmarks of LienVietPostBank 04. Message from Chairman 06. Organization Chart 08. The Board of Directors 10. The Board of Supervisors 11

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1 ANNUAL REPORT 2017

2 CONTENT LIENVIETPOSTBANK OVERVIEW 10 Hallmarks of LienVietPostBank 04 Message from Chairman 06 Organization Chart 08 The Board of Directors 10 The Board of Supervisors 11 The Board of Management 12 BUSINESS PERFORMANCE Business performance and key financial figures 14 Significant progress in banking product and service development 16 Effective investment and trading strengthen LienVietPostBank s position 20 IT infrastructure perfecting and modernizing 22 Advancement in LienVietPostBank s risk management 24 International cooperation success to continue 26 LienVietPostBank s network nationwide coverage 28 Human resource a key to success 30 Business plan for 2018 and upcoming years 32 FINANCIAL STATEMENTS Audited summary financial statements 34 2

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4 10 HALLMARKS OF LIENVIETPOSTBANK 4

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6 MESSAGE FROM CHAIRMAN Given the strategic orientation of becoming the leading retail bank in Vietnam and a Bank for everyone, in 2017, LienVietPostBank concentrated on developing various retail products, notably Pension Loan, Consumer Loan, etc. At the same time, the Bank continued to enrich Vi Viet a cashless payment and digital banking solution on mobile devices, meeting the demand of 24/7 payment and online banking services for all ranges of customers, from individuals to organizations. 6

7 Dear Shareholders, Partners, Customers and LienVietPostBank staff, After nearly 10 years of operation, in 2017, Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank) gained remarkable achievements in terms of business performance, network expansion, and brand name prestige in both domestic and international markets, remaining as the leading CSR bank in Vietnam. As of December 31st, 2017, charter capital of LienVietPostBank reached VND 6,460 billion; total assets was VND 163,000 billion, 15% higher than 2016 s and 22 times bigger than 2008 s; profit before tax was the highest among 10 years at VND 1,700 billion, increasing more than 31% compared to the previous year s; non-performing loan was controlled at 1.04%. LienVietPostBank is the largest commercial bank in terms of network in Vietnam with more than 220 bank owned branches/transaction offices in all 63 cities and provinces, more than 1,000 postal transaction offices and the exploitation right to provide banking services throughout over 10,000 nationwide post offices at district and commune levels. Given the strategic orientation of becoming the Leading Retail Bank in Vietnam and A bank for everyone, in 2017, LienVietPostBank concentrated on developing various retail products, notably Pension Loan, Consumer Loan, etc. At the same time, the Bank continued to enrich Vi Viet a cashless payment and digital banking solution on mobile devices, meeting the demand of 24/7 payment and online banking services for all ranges of customers, from individuals to organizations was also the year which witnessed Vi Viet s achievements in many prestigious awards domestically and internationally, with the most outstanding one being APICTA 2017 given by Asia Pacific ICT Alliance for Vi Viet s creativity, technology and international standardized quality. By the end of 2017, the solution reported more than 200 available payment services, over 2 million users, and 18,000 merchants. In October 2017, LienVietPostBank was officially listed on UpCom under stock code LPB, gaining positive appreciation from both investors and the market as a potential and effective one. LienVietPostBank was rated at B2 with positive potential, making it one of the top commercial banks in Vietnam. Continuing with the motto Integrate society into business, over the year, LienVietPostBank directly supported, sponsored local social security programs and projects; accordingly, the Bank has always been known as the leading bank for community in Vietnam is a new period of development. Given the solid foundation and achievements over the last 10 years, along with high determination of all staff, we are confident to achieve all goals set in Annual Shareholder Meeting, bringing LienVietPostBank to the Top 10 commercial banks in Vietnam. On behalf of LienVietPostBank s BOD, I would like to express my sincere thanks to all Shareholders, Partners, Customers, the State Bank of Vietnam and all levels of State Authorities for their support and belief over years and in the upcoming period. I would like to sincerely thank all LienVietPostBank staff who have together contributed to the Bank s proud achievements in the past 10 years and shall together strive for a strong, secure, effective and sustainable LienVietPostBank. I wish you all health, happiness and success./. Nguyen Dinh Thang CHAIRMAN OF THE BOARD OF DIRECTORS Moody s (one of the world s leading credit ratings agencies) assigned first-time credit ratings for LienVietPostBank at the end of Accordingly, 7

8 ORGANIZATION CHART SHAREHOLDER MEETING Board of Directors Board of Directors Office Postal Banking Committee Technology Committee Strategy Committee Business Management & ALCO Committee International Relations Council Strategy Council Bidding Council ALCO Council Board of Management BUSINESS DEVELOPMENT SECTION CONSULTING SECTION Digital Banking Division Big Corporate Banking Division Treasury Division Strategy & International Co-operation Division Banking Product Division Postal Banking Division Credit Review Division Legislation & Risk Management Division Sales Dept. Big Corporate Sales Dept. Capital Management Dept. International Relations & Global Capital Market Dept. Corporate Banking Dept. PTO Product & Service Management Dept. Northern Credit Appraisal and Review Dept. Legislation Dept. Accounting Payment Dept Vi Viet Business Center Card Center Big Corporate Management Dept. ODA Servicing Dept. Capital Trading Dept. Strategy & Economic Analysis Dept. Personal Banking Dept. Customer Service Dept. PTO Product & Service Deployment Dept. PTO Planning & Network Development Dept. Southern Credit Appraisal and Review Dept. FI Appraisal Dept. Northern Appraisal Dept. Risk Management & AML Dept. Northern Compliance & Debt Collection Dept. Southern Compliance & Debt Collection Dept. Southern Appraisal Dept. Branches Big Transaction Offices Transaction Offices, Upgraded PTOs Sales & Customer Management Dept. Accounting Cashier Management Dept. Operational Support Dept. Sales & Customer Accounting Cashier Management Dept. Management Dept. Operational Support Dept. Transaction Offices Upgraded PTOs Postal Transaction Office Sales Development Group Cashier - Transaction Management Group Operational Support Group Postal Transaction Group (Post Office Staff) Sales Development Group Cashier - Transaction Management Group Business Support Group Postal Transaction Group (Post Office Staff) 8

9 Board of Supervisors Legislation, Risk Management & AML Committee Credit Committee Overdue Debt Prevention and Collection Committee HR Management Committee Cost Management Committee Northern Credit Council Southern Credit Council Risk Handling and Debt Collection Council Debt Repayment Restructuring Council Northern Branch Credit Section Southern Branch Credit Section BACK OFFICE SECTION SUPERVISION SECTION Trade Service Division HR Division Finance Division IT Division Administration Division Regional Representative Office Asset Management Center Internal Audit Division International Payment Dept. HR Management Dept. Accounting & Finance Dept. IT & Project Quality Management Dept. Administration Dept. Credit Audit Dept. Domestic Payment Dept. Training Dept. Statistics & Assets Liabilities Management Dept. Technical Support Dept. General Planning Dept. Non-credit Audit Dept. KPI and Quality Management Dept. Banking Application & Service Development Dept. Office of Communist Party - Union PTO Audit Dept. Business Control Center at Business Unit IT Application Administration Dept. PR & Marketing Dept. Appraisal Group Compliance & Debt Collection Group IT Infrastructure Dept. Information Security Dept. Note: Postal Transaction Offices ALCO: AML: PTO: ODA: HR: Asset Liabilities Committee Anti-Money Laundering Postal Transaction Office Official Development Assistance Human Resources KPI: FI: PR: IT: Dept. Key Performance Indicators Financial Institution Public Relations Information Technology Department 9

10 THE BOARD OF DIRECTORS Mr. Nguyen Dinh Thang Chairman Bachelor of Economics Mr. Pham Doan Son Permanent Vice Chairman Master of Business Administration Mr. Nguyen Duc Cu Vice Chairman Bachelor of Commercial Economics Mr. Le Hong Phong Member PhD in Economics Ms. Chu Thi Lan Huong Member Master of Business Administration Mr. Duong Cong Toan Member Bachelor of Business Administration Ms. Duong Hoai Lien Independent Member Master of Economics 10

11 THE BOARD OF SUPERVISORS Mr. Huynh Ngoc Huy Member Bachelor of Information Technology Mr. Tran Thanh Tung Chairperson of the Board of Supervisors Bachelor of Banking and Finance Note: - From March 28th, 2018, Mr. Nguyen Dinh Thang was appointed as Chairman of Board of Directors - From June 06th, 2017, Mr. Pham Doan Son was appointed as Permanent Vice Chairman of Board of Directors - From March 28th, 2018, Mr. Huynh Ngoc Huy, Mr. Duong Cong Toan and Ms. Duong Hoai Lien were appointed as the Members of Board of Directors - From March 28th, 2018, Mr. Nguyen Duc Huong was no longer the Chairman of Board of Directors - From March 28th, 2018, Mr. Nguyen Van Huynh was no longer the Vice Chairman of Board of Directors Ms. Nguyen Thi Lan Anh Member Master of Economics 11 Mr. Phung The Viet Member Bachelor of Banking and Finance

12 THE BOARD OF MANAGEMENT Mr. Pham Doan Son CEO Master of Business Administration (MBA) Mr. Bui Thai Ha Permanent Deputy CEO Master of Business Administration Ms. Nguyen Thi Gam Deputy CEO Association of Chartered Certified Accountants (ACCA UK) Master of Financial Control Ms. Nguyen Thi Bich Loc Deputy CEO Master of Business Administration Ms. Nguyen Anh Van Deputy CEO Master of Banking and Finance Mr. Ho Nam Tien Deputy CEO Master of Banking Mr. Kim Minh Tuan Deputy CEO Master of Banking and Finance Mr. Vu Quoc Khanh Deputy CEO Bachelor of Business Administration 12

13 Ms. Nguyen Thu Hoa Ms. Nguyen Thi Thanh Son Mr. Nguyen Ngoc Nam Mr. Nguyen Thanh Tung Deputy CEO Master of Applied Finance Deputy CEO Master of Business Administration Deputy CEO Master of Banking and Finance Deputy CEO Master of Banking Credit Mr. Nguyen Quoc Thanh Deputy CEO Master of Information Technology Ms. Le Thi Thanh Nga Deputy CEO Master of Business Administration Note: - From April 24th, 2018, Mr. Duong Trong Chu was no longer the Deputy CEO 13

14 BUSINESS PERFORMANCE AND KEY FINANCIAL FIGURES 2017 was a successful year of Lien Viet Post Joint Stock Commercial Bank (LienVietPostBank) as the Bank continued to achieve remarkable results with dramatic growth in business performance indicators, reporting the profit before tax of VND 1,768 billion. Such amount of profit increased 31% compared to 2016 s and was 4 times higher than 2008 s being the largest profit within 10 years in operation of LienVietPostBank (from 2008 to 2017). Besides, other business indicators of the Bank by the end of 2017 were also very impressive. 14

15 By the end of 2017, total assets of the Bank surpassed VND 163,000 billion, 15.2% greater than it was in the previous year and 22 times higher than the starting point. Such achievement contributed to the enhancement of LienVietPostBank s position and scale, bringing the Bank closer to Top 10 largest commercial banks in Vietnam in terms of total assets. Billion VND 160, , , ,000 80,000 60,000 TOTAL ASSETS 79,594 66,413 56, , , , ,434 40,000 34,985 20,000 7,453 17,367 Year CAPITAL MOBILIZATION Billion VND 160, , , , , ,000 98,268 91,759 80,000 71,139 60,000 57,628 48,148 40,000 30,421 20,000 13,399 3,801 Year Despite the high pressure of competition from the market, LienVietPostBank s 2017 market share in capital mobilization was continuously improved and expanded. As of December 31st, 2017, total mobilized capital of LienVietPostBank exceeded VND 150,000 billion, increasing VND 19,124 billion or 15% compared to 2016 s volume and 40 times higher than 2008 s. Capital raised from individuals and economic organizations of LienVietPostBank accounted for 90% of the total amount, maintaining primary market as the core of capital mobilization. This was an evidence for the prestigious brand name, safe and effective operation as well as sustainable growth of LienVietPostBank. Credit growth in 2017 of LienVietPostBank was relatively positive with the growth rate in primary market of 25%, higher than the average credit growth rate of the entire industry (18%). As of December 31st, 2017, total outstanding loans of LienVietPostBank reached VND 104,555 billion, larger than that of 2016 by VND 19,600 billion. On the other hand, Non-performing loan (NPL) was well-controlled and on gradual downward trend. In 2017, non-performing loan ratio fell to 1.04%, enabling higher efficiency in capital use, ensuring capital adequacy, and thus, leading to sustainable growth of LienVietPostBank s profit. Billion VND LOANS 120, , ,000 84,908 80,000 64,784 60,000 51,667 40,000 37,024 29,325 20,000 10,114 12,757 2,674 5,983 Year In 2017, LienVietPostBank recorded the largest amount of profit before tax of VND 1,768 billion, which was 31% greater than 2016 s was also a milestone witnessing LienVietPostBank s outstanding development in network expansion with 97 new transaction points throughout the country, accomplishing the mission of bringing banking services to remote and rural areas and serving customers from all localities nationwide. Despite the huge investment in equipment acquisition, infrastructure innovation, new branches and transaction offices opening, profit of LienVietPostBank in 2017 continued to grow and outperformed the plan set out by 118%. This has proven LienVietPostBank s effective utilization of strengths and network advantages. With the judicious orientation of the Board of Directors, the management of the Board of Management and the effort and unity of all employees, LienVietPostBank promises to achieve more successes regarding business performance in upcoming years, driving the Bank closer to Top 10 Joint Stock Commercial Banks in Vietnam in terms of profit. 15

16 SIGNIFICANT PROGRESS IN BANKING PRODUCT AND SERVICE DEVELOPMENT Dramatically transform to become one of the leading retail banks in Vietnam, LienVietPostBank has spent endless effort diversifying products, improving service quality, and developing tailor-made products as per customers needs witnessed LienVietPostBank launching a variety of new products and services, being highly appreciated on both Banking and Postal transaction offices (PTOs) channels. 16

17 Building distinctive products that can bring breakthrough success A pioneer in the market, Spectacular growth are the two phrases commonly used to refer to Pension Loan the first-in-market credit product designed for pensioners. More specifically, customers could apply for a loan easily with simple and quick procedure, with the tenor of up to 5 years and lending limit up to VND 300 million. Accordingly, only after a short period of time, almost all retirees knew about and used the product of LienVietPostBank. In 2017 alone, Pension loan grew at 56%. Especially, after 3 years of implementation, Pension Loan still proved its significance as a typical product in PTO channel, and the leading position among retail product category of the Bank with increasingly high number of customers and disbursement volume. The Non-collateral Consumer Loan tailored made for customers being public servants, armed forces, and officials showed notable credit growth of nearly VND 3,000 billion. Together with Pension Loan, Loan for public servants, armed forces, and officials is a key product in PTO channel. In 2017, credit growth of the product in PTO channel reached VND 1,259 billion. Lien Viet An Thinh is the first life insurance product that LienVietPostBank introduces to its customers. Although 2017 was the first year launching this product, Lien Viet An Thinh s business result exceeded 104% of the expected plan, owing to endless effort of business units as well as Divisions at the Head Office. This impressive result created a strong premise for the Bank s plan in improving the ability of collecting service fees. Import Loan secured by goods for enterprises is also one of the breakthrough products of LienVietPostBank. This product package allows both future imported goods and current goods stored at LienVietLogistics Joint Stock Company to be the secured assets. The procedure is simple and fast, thus increasing the proactiveness of business units. Known as the pioneer joint stock commercial bank supporting Agriculture, Rural areas and Farmers, Loan for agriculture and rural development is among the key products of LienVietPostBank reporting impressive growth, about 45% higher than 2016 s. Thanks to the improvement in product s policy and quality, Mortgage Loan showed impressive result, with the growth rate of 41% in total outstanding loans compared to previous year. Improving the service quality Following the success of 2015 E-tax payment, LienVietPostBank kept on deploying other services featured with various utilities to save time and cost for customers, such as: Customs collection service, Vietlott collection service, product-offering in cooperation with Mobifone, etc. Besides, conventional collection services offered for Viettel, EVN, State budget, etc. maintained a stable development pace. In 2017, LienVietPostBank also signed contracts with water-supplying companies for water bill collection service. Alongside product and service designing and going to the market activities, standardizing and enhancing customer service has continuously been implemented by LienVietPostBank in the entire network. This would not only support the product - service development and deployment in gaining more positive results, but also better accomplish assigned goals, broadening the presence of the Bank s products and services in the mass market. Making impressive progress in capital mobilization In addition to quality enhancement, LienVietPostBank paid great attention to sales boosting strategy as well as promotion and customer care programs for depositors. These were the major factors in pushing up fund mobilization result of the year was considered a breakthrough year in retail aspect of LienVietPostBank with total deposits from individual customers claimed 6.3 times higher than its 2016 counterpart. In PTO channel separately, by the end of 2017, PTO mobilization was VND 39,701 billion with 890,367 customers, recording a mobilization increase of VND 10,396 billion and fulfilling 110% of the Bank s planned target. This was mainly resulted from proactive, drastic product deployment cooperation between Vietnam Post Corporation and LienVietPostBank since early period of the year. The drastic shift and breakthrough of LienVietPostBank in diversifying products and enhancing service quality aim towards the goal of affirming customers confidence in choosing the Bank. By the end of 2017, LienVietPostBank was proud to report nearly 3 million individual customers to use the Bank s products and services. This is a valuable treasure for LienVietPostBank and motivation for its further breakthrough and advancement in increasing customers satisfaction for the coming year

18 A fruitful year of Vi Viet in digital banking market 2017 was a remarkable year for Vi Viet when its position was strongly confirmed in the digital banking market, especially with the official launch of Online savings and Online loans secured by deposits in Vi Viet. Given the products, Vi Viet customers can actively select suitable terms, savings amount, recurring method, etc. to register their savings in a simple and secured way anytime, anywhere. Customers can choose among various savings terms from 1 week to 60 months. Additionally, customers making online savings will enjoy higher savings interest rates compared to at-the-counter ones. In case of consumption need, customer can, without redeeming his/her savings, utilize feature Online loan secured by deposit in Vi Viet to apply for an amount of up to 98% of total deposit value with due date being the maturity date of the pledged deposit, and borrowing interest rate being 1% higher than savings interest rate of the same term. As of December 31st, 2017, Vi Viet reported to have more than 2 million users and more than 18,000 merchants over 63 provinces, cities natiowide, facilitating the access to banking and payment services for residents in remote areas. The total number of transactions via Vi Viet showed incredible growth in In December 2017, the number of Vi Viet transactions reached 1 million transactions/month with total volume of VND1,600 billion, being 4.5 times higher than its December 2016 s figure. In addition to impressive numeric results, 2017 was a fruitful year of Vi Viet with various awards both domestically and internationally. APICTA Awards 2017 considered as Oscar in ICT sector of Asia - Pacific region held in Bangladesh by the Asia - Pacific ICT Alliance was a notable mention. Vi Viet was proudly to be titled as the Merit winner in Financial Industry Application category. In 2018, LienVietPostBank expects to reach 3.5 million Vi Viet users and 30,000 merchants; gradually transforming Vi Viet to be the digital banking inside LienVietPostBank. In addition to modernizing Core Banking, applying advanced management software, and developing E-banking and Card, etc., Vi Viet plays an undeniably important role in realizing LienVietPostBank s vision of becoming the leading retail bank in Vietnam a Bank for everyone. DIGITAL BANKING SERVICE MAKE ONLINE SAVINGS GET LOANS EASILY Bill payment services Connected to bank accounts, ATM card of more than 35 domestic banks Online savings Loan secured by savings book Loan redemption Current account inquiry 2 Million users 8, merchants Hotline (Free) 18

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20 EFFECTIVE INVESTMENT AND TRADING STRENGTHEN LIENVIETPOSTBANK S POSITION Turbulence in the money, debt securities and foreign exchange markets in 2017 consequently led to many difficulties for the banking system. However, by keeping good track of market fluctuations, LienVietPostBank attained remarkable success in capital utilization with superb results, ensuring liquidity for the bank at all times, earning great profits from effective investment opportunities, and maintaining the image as a proactive partner in the interbank market. 20

21 Monetary trading activities Interest rates in the interbank market experienced contrasting fluctuations in both halves of Market liquidity in the first 5 months of the year was always in tension. In such circumstances, LienVietPostBank always attempted to achieve set goals for 2017 including: to ensure liquidity for whole system at all time, to complete the Bank s obligations under the SBV s regulations, to maximize investment returns for the Bank as well as to secure benefits from proprietary trading. These results were successfully achieved by business acumen, timely investment opportunities seizing, and portfolios diversifying with different types of investment such as: short-term valuable papers (Certificates of Deposit, Registered Promissory Notes, differential term trading, etc.). LienVietPostBank s trading revenues from the interbank market in 2017 continued to attain remarkable figures (borowings/ taking deposits reached USD 2,839 million and VND 158,213 billion, respectively; lending/depositing hit USD 329 million and VND 40,636 billion, respectively). Debt securities investment/trading activities 2017 was another successful year in investing/trading debt securities of LienVietPostBank. Positively taking part in both Primary and Secondary markets, the Bank was continuously selected as the bidding member for Government Bond in 2018 by the Ministry of Finance. LienVietPostBank expanded Government bonds investment portfolio by tenor structure diversification, equal allocation of portfolios maturity for enhanced profit as well as better liquidity assistance for business of the Bank. Specifically, in 2017, LienVietPostBank restructured existing portfolio and purchased new Government bonds valued up to VND 5,000 billion with longer term, up to 20 years, in which mostly were acquired at the beginning of 2017 with better interest rates than common base at the end of Despite the unpredicted fluctuations in interest rates, Government bond business gained positive achievements, generating profits surpassed the planned goal with trading revenue over VND 9,000 billion of the Government bond par value. Moreover, portfolios of corporate bonds and Credit Organization bonds were stabilized with good investment interest rates, bringing LienVietPostBank substantial profits also witnessed the potential growth of Government bond Repo transactions. In details, the total transaction revenue surpassed VND 46,000 billion, increasing around 15% in comparison with 2016 s. Meanwhile, Re-Repo revenue of LienVietPostBank was greater than VND 1,000 billion. Foreign exchange trading activities Taking advantage of positive performance in Vietnam foreign exchange market in 2017, LienVietPostBank enlarged foreign currency as well as foreign exchange trading activities in the interbank market to seek for more profits. Solely in the interbank market, LienVietPostBank s volume of foreign currency transactions reached USD 36 billion, 34.33% greater than that in Moreover, LienVietPostBank remained high volume of foreign currency trading with the SBV, in which the sales volume to the SBV was approximate USD 1 billion. This made LienVietPostBank one of the leading banks in foreign currency sales to the SBV s foreign reserves. The total volume of foreign currency swap transactions exceeded USD 6.5 billion, making LienVietPostBank one of the banks with greatest number of foreign currency swap transactions in the market. Achievements in the foreign currency business in the interbank market affirmed the great effort and contribution of LienVietPostBank in general growth of Vietnam s foreign currency market. The volume of foreign currency transactions with the Primary market was kept at high level, greater than USD 1.1 billion, in which transactions with customer groups of state-owned corporations declined compared to This partly re-affirmed the judicious orientation of LienVietPostBank in customer base expansion and foreign currency product diversity, which is the motivation for service improvement and better revenue proportion in the future. 21

22 IT INFRASTRUCTURE: PERFECTING AND MODERNIZING In 2017, LienVietPostBank focused its resources on developing and upgrading Core systems of the Bank including Core Banking, Core Card, and Vi Viet Core system. 22

23 CUSTOMER CHANNELS PARTNERS Internet Banking SMS Banking Mobile Banking Sers/Utils Providers Merchants Napas Branch ATM/POS Others CIT AD SWIFT Others SOA Government Multi- Channel Integration B2B Gateway/ Payment HUB Business Process Management Enterprise Service Bus Banking Systems Card Mgmt. System Core Banking Information technology system Vi Viet Core In April 2017, LienVietPostBank successfully transformed and integrated 2 legacy systems including Flexcube 7.2 and Postal Savings core into Flexcube 12.1 Core Banking system the latest version of Oracle after 18 months of deployment. Thanks to the successful integration, the Bank is now able to provide all banking services on both Branch/Transaction Office channel and Postal channel quickly and uniformly. The newly operated Core Banking system has served over 2 million of customers having bank accounts. Along with intergrating the Core Banking system, the Bank also transformed, upgraded the Core Card system and connected Vi Viet system to the Core Banking system seamlessly in order to serve cashless payment demands of customers with and without bank accounts. Seamless connection among all three Core systems has been the essential foundation for LienVietPostBank to develop more digital banking services in period, thus, promoting digital banking business to catch up with modern banking trends. Such ground, in combination with the large network coverage, would create absolute competitive advantage for LienVietPostBank in the future. Not only completing application systems, LienVietPostBank also focused on database security and has completed its backup data center in order to ensure real-time data synchronization and storage. Additionally, this center also allows the Bank to provide services continuously even when main data center undergoes incidents. Step-by-step completion of application systems in conjunction with expansion of Branch/Transaction Office network would create favourable conditions for LienVietPostBank to accomplish the target of becoming the leading retail bank in the near future. 23

24 ADVANCEMENT IN LIENVIETPOSTBANK S RISK MANAGEMENT At LienVietPostBank, risk management is one of the key activities constantly performed, being inseparable from business operations and towards the comprehensive management of fundamental risks. Risk management is uniformly operated from developing policy models and processes, implementing management tools, as well as improving human resource quality. 24

25 Risk management in marked some significant improvements in LienVietPostBank s risk management with the establishment of the Basel II Project Team in order to reach risk management standards in accordance with international practices. Credit risk management LienVietPostBank has been constantly investing in new, modern tools for credit quality management such as SMS debt reminder, Datawarehouse project, collateral management software, etc. Credit risk early warnings were enhanced by implementing many new portfolio management tools. Debt classifications, risk provisions and bad debt collection were drastically implemented with various synchronous measures. Prudential ratios for loan operations were frequently monitored to ensure the compliance to the SBV s regulations, playing an essential role in orienting and establishing business plans for the Bank in each period. Internal credit rating system was reviewed and fine-tuned to be more optimal, modern, accurate and multidimensional. Operational risk management The Bank s operations and system scope have been constantly expanding. As a result, operational risk management s increasingly important role has been paid higher attention, contributing to early risk detection and warnings against potential loss for the Bank. A corporate culture for risk management has been developed systemwide. Internal document system was constantly reviewed and updated to ensure the optimality and avoid overlapping conflicts. Human factors have been undergoing drastic improvements relating to recruiting process, training programs, performance assessment and efficiency at work. Operational risk checkpoints were established at many levels. Operational risk early warnings were frequently performed based on monitoring results from operational risk management unit, and benefit support from modern tools. Anti money laundering Anti money laundering activities continued to be a crucial part of the efforts to stabilize banking operations and enhance monetary market transparency. 25 Anti money laundering received significant investments from LienVietPostBank to modernize and enhance performance. The anti money laundering software procurement and deployment project in 2017 was a remarkable step in bringing the Bank s anti money laundering activities up to par with international standards, and ready for future challenges. Moreover, LienVietPostBank has been constantly reviewing and completing a system of internal regulations regarding anti money laundering, further investing in infrastructure, as well as organizing more training sessions to equip the Bank s staff in the field of anti money laundering operations. Market and liquidity risk management The structure of assets sensitive to market risks and liquidity were properly controlled, highly contributing to the Bank s business performance and ensuring the Bank s optimal asset structure. System liquidity was regularly and constantly maintained to guarantee return on capital. Liquidity ratios of the Bank all satisfied the SBV s regulations. Market risk and liquidity control were based upon a principle independent between transaction unit and risk management unit. Inspecting, monitoring and measuring activities with respect to the state of risk and developing testing schemes were regularly implemented. Monitoring quality was improved thanks to leveraging modern technologies and utilizing market risk, liquidity risk management tools flexibly and effectively (including pricing models, interest sensitivity gap, liquidity gap, etc.). Risk management strategies for 2018 In 2018, LienVietPostBank shall focus on several aspects regarding risk management: To implement more projects in risk management capability enhancement (Basel II project; internal credit rating project; anti money laundering software procurement and deployment project). To concentrate on and drastically take measures to recover and handle bad debts. To regularly monitor and guarantee prudential ratios compliance in accordance with the SBV s regulations. To conduct in-depth early warnings. To enhance credit quality inspecting, monitoring and controlling capabilities. To conduct fraud prevention programs. To standardize operational processes, to improve operational risk management capability.

26 INTERNATIONAL COOPERATION SUCCESS TO CONTINUE Following the success in 2016, LienVietPostBank constantly expanded and developed its international cooperation activities in 2017, offered more opportunities for new business cooperation as well as affirmed the prestige and reputation of LienVietPostBank in international arena. 26

27 One year since the official launch in September 2016, Vi Viet - An Innovative Financial Solution for Vietnamese Women project (hereinafter referred to as Vi Viet for Women ), which was financed USD 325,000 (about VND 7.26 billion) by the United Nation Capital Development Fund (UNCDF), has achieved impressive results far beyond the initial plan: an increase of more than 700,000 female users and 7,500 female-owned Vi Viet merchants. Given these achievements, the project was highly evaluated and granted W+ certification by WOCAN (a prestigious non-profit organization established to support and empower women) in January Such certification acknowledges positive impacts that financial education courses offered by LienVietPostBank and Vietnam Women Union bring to Vietnamese women in particular and to the society in general. In 2017, LienVietPostBank continued to affirm its objective of promoting financial inclusion and financial education for women by participating in the project of Financial Linkage for Inclusion (FINLINK) initiated by CARE International in Vietnam a nonprofit organization. The objective of this Project is to facilitate ethnic minority women s access to official and modern financial services via Vi Viet. After signing partnership agreement and successfully co-organizing the first training course in November 2016 with National Federation of French Savings Banks (National Federation of Caisses d Epargne FNCE), LienVietPostBank carried out two more training courses in 2017 namely Sale skills targeting Corporate Customers and Individual Customer Credit Review to help staff in charge of sales and credit review constantly improve their skills and knowledge in serving their work and get one step closer to international standards. Besides, international cooperation activities of LienVietPostBank were broadened with new opportunities. An outstanding example was the project titled Doreming human resources management and salary payment via Vi Viet in cooperation with Doreming Co., Ltd. and Mitsui Knowledge Industry Co., Ltd. (MKI) from Japan, allowing enterprises to manage human resources, proceed salary payment on monthly basis and enable employees to request for daily wages via Vi Viet. The project is currently under connection and trial process and expected to be launched in late Additionally, in November 2017, LienVietPostBank and WooriBank Vietnam signed a Memorandum of Understanding (MOU) for cooperation in various fields suitable and satisfactory for the needs of both Parties. Thanks to the above-mentioned projects, LienVietPostBank s image was strengthened as a prestigious, reliable and promising partner for exponential development in the coming years, being favored by many international partners. Follow such success, in 2018, LienVietPostBank shall proactively promote the connection with financial technology organizations and companies (Fintech) to seek more innovative solutions, breakthrough ideas; adopt new and appropriate technology trends to support digital banking transformation, heading to the new era of digital finance. 27

28 LIENVIETPOSTBANK S NETWORK: NATIONWIDE COVERAGE Orienting to become the leading retail bank in Vietnam a Bank for everyone, LienVietPostBank has strived to widen its outreach to a nationwide scale, especially in rural and remote areas. The network development in 2017 of the Bank was highlighted with the approval from the SBV to upgrade 185 Postal Transaction Offices to banking transaction ones; and the official establishment of branches in all 63 provinces and cities of Vietnam widening the Bank s transaction system to the entire country. 28

29 In June 2017, LienVietPostBank Ha Tinh Branch was officially inaugurated. Being the fifth one to operate in 2017, Ha Tinh Branch s establishment marked the Bank s coverage in all 63 cities and provinces of Vietnam. By December 31st, 2017, LienVietPostBank s transaction network included 70 Branches, 22 big Transaction offices; 110 transaction offices opened as per Circular No. 21/2013/TT-NHNN (regulation on commercial bank s network); and 27 banking transaction offices upgraded from PTOs totaling 159 transaction offices for the entire system. Especially, given the promulgation of Circular No. 43 regulating the organization and operation of PTOs under LienVietPostBank, the Bank has cooperated with VNPost to upgrade those PTOs to banking transaction ones. Upgraded PTO is a typical banking model, being the combination between the advantages of VNPost s widespread network, rich customer base and LienVietPostBank s modern technology as well as product/service deployment experience, which together bring sustainable and long lasting benefits to customers, the Bank and the Post. By December 31st, 2017, the SBV had licensed LienVietPostBank to upgrade 185 PTOs in the whole country. The fast-pace network expansion greatly supported LienVietPostBank in accomplishing 2 important objectives: effective management of PTOs system in provinces, cities; and prompt response to state authorities policies in agriculture and rural area development. The vast network system also created favorable conditions for LienVietPostBank in social security payment, providing other micro financial products & services via postal transaction points and the Bank s Branches/Transaction offices so as to bring convenient and modern banking products, services to people nationwide, especially those in remote areas. The nationwide network coverage significantly assists LienVietPostBank in reaching the target to be the leading retail bank in Vietnam a Bank for everyone. Therefore, continuation to affirm, complete, and expand the operation network remains a critical activity which earns special attention from LienVietPostBank. In 2018, LienVietPostBank expects to inaugurate 03 more Branches and 159 more Transaction offices to strengthen and develop the operation network. 29

30 HUMAN RESOURCE: A KEY TO SUCCESS After 10 years of operation, LienVietPostBank has become an appealing brand in the financial working market thanks to our competitive allowances, attractive remunerations accompanied with great career-advancement opportunities. Especially, 2017 was an important transitional year in the Bank s 3-year period roadmap ( ) of comprehensively and uniformly implementing human resource policies and mechanisms in order to reach the target of being in Top 10 best-paying commercial banks in the finance banking sector. 30

31 Human resource activities LienVietPostBank employed approximately 3,000 new recruits to service the goal of network expansion at 63 provinces, cities across the country. Besides, the Bank also increasingly developed and promoted the employment brand and image of LienVietPostBank by participating career-building conferences, employment forums, and exhibitions, etc. Pursuing the 3-year salary adjustment scheme ( ), in 2017, LienVietPostBank adjusted the salary of all staff across the whole network with the average growth of 15-20%, closely approaching the goal of making LienVietPostBank one of the Top 10 best paying commercial banks in the finance banking sector was also the first year that the Bank carried out the seniority-based bonus Loyalty to LienVietPostBank to recognize the contribution and long-term commitment of the staff to the Bank, gradually realizing the motto: Live well with salary, get rich with allowances. The Bank also implemented various programs to seek and train talented staff for management positions, which in turn would help preparing sufficicent human resources for the fast growing network in near future. In 2017, LienVietPostBank built and amended several human resource regulations and policies to meet HR management requirements and keep pace with new trends in the banking sector as well as the market. The accomplishment of Phase 1 in establishing and implementing People Soft the leading human resource software, contributed greatly to the target of improving human resource governance towards modern and professional international standards. Training activities In 2017, the training activities were enhanced exclusively in both quantity and quality, satisfying the employees needs of improving and strengthening skills. In general, the Bank organized 141 training courses with 381 classes and 23,836 trainees for the whole system, marking an increase of 103% compared to Additionally, the internal training courses at local units were increased significantly with 4,312 sessions. E-learning was significantly implemented with more than 14,000 trainees being trained and examined, accounting for 60% of total trainees of the entire system. Over 2,400 trainees completed training following title credit-based methods. 31 The training of local trainers, internal trainers at business units was also enforced. In 2017, 262 internal trainers were developed and acknowledged for internal training courses, and 49 local trainers were prepared for local training sessions in In 2017, the Bank continued to build, update and develop the training frameworks and materials, namely: Completing training framework for new staff of all positions at business units; Regularly updating training materials; Standardizing and digitalizing almost all documents on E-Learning software, etc Human resource and training orientation To recruit adequate human resources for the growing network and operating business units; to position LienVietPostBank recruitment brand in the banking sector and ensure high level of competitiveness and labor attraction. To maintain and ensure the highly competitive compensation scheme of LienVietPostBank in the sector. To implement Phase 2 of establishing and operating additional functions of People Soft the HR management software. To continue to complete the mechanism on assigning and evaluating Key Performance Indexes (KPIs) for business units; to research, develop and apply common quality management system for the whole Bank, especially for sales team at business units and Head Office. To give priority for training activities on E-Learning, considering it as the centric training system of the Bank with the concentration on system completion; to hold more training programs; increase E-learning training quality and effectiveness; to build up training resource and documents on E-learning to serve as the base for internal training and selfresearch activities. To focus on training new recruits to better serve the Bank s network growth in 2018; to enhance capabilities, professional knowledge of direct sales team, especially for employees at upgraded PTOs, new employees, etc. To develop training quality and effectiveness of internal training activities at local units via monitoring, controlling, assigning targets and applying internal training software. To concentrate on training, developing human resources to increase training quality of internal trainers, program framework, and training materials, etc.

32 BUSINESS PLAN FOR 2018 AND UPCOMING YEARS 32

33 Key financial ratios: Criteria Total Assets Charter Capital Deposits from customers Total loans and advances (*) Profit before tax Profit after tax Dividend payout ratio Non-performing loans (NPL) ratio Unit: Billion VND, % Results of 2017 Plan of , ,000 6,460 9, , , , ,500 1,768 1,800 1,368 1,440 15% (**) No less than 12% 1.04% <1.5% Note: (*) includes Corporate Bonds, (**) of which 10% was cash advance payment Development Strategy of LienVietPostBank for period With the vision to become The leading retail bank in Vietnam A bank for everyone, LienVietPostBank continues its adoption of new business strategy that is Transparency Effectiveness Safety to level up the Bank s position, focusing on 4 main pillars as follows: TOTAL ASSETS SCALE Draft an appropriate plan to scale up total assets. Ensure sustainable capital resources based on restructuring sources of capital mobilization and boosting deposits from individuals and households. Focus on marketing; retain and further serve big corporate customers; promote retail banking. HUMAN RESOURCE MANAGEMENT Reshape standpoints and personnel governance, leverage human resource management. Reduce input costs by reformation of payroll and training schemes, aiming to improve productivity, allocate salary budget towards increasing income but downsizing, enhance staff training quality, interleave self-training with outsourcing, etc. Implement Mobile Director/Regional Director models to better LienVietPostBank s operations. Take good care of employees lives with employee stock ownership plan (being included in 2018 capital raising plan). MODERNIZATION Ensure secured system operations, avoid and prevent incidents, errors possibly arising in information technology and digital banking. Create competitive advantage in the race of banking at fingertips, utilize business means available on smartphones and computers. OPERATION MANAGEMENT FOLLOWING INTERNATIONAL STANDARDS Apply financial indicators and ratios according to international standards. Continuously enhance and renovate operation management, targeting 9 golden words: dedication innovation transparency solidarity listening understanding discussion decision resoluteness. 33

34 AUDITED SUMMARY FINANCIAL STATEMENTS For the year ended 31 December

35 STATEMENT OF THE BOARD OF MANAGEMENT The Board of Management of Lien Viet Post Joint Stock Commercial Bank (the Bank ) presents this report together with the Bank s summary financial statements for the year ended 31 December BOARDS OF DIRECTORS AND MANAGEMENT The members of the Boards of Directors and Management of the Bank who held office during the year and to the date of this report are as follows: Board of Directors Mr. Duong Cong Minh Chairman (resigned on 06 June 2017) Mr. Nguyen Duc Huong Chairman (appointed on 06 June 2017) Mr. Pham Doan Son Permanent Vice Chairman (appointed on 06 June 2017) Mr. Nguyen Duc Cu Mr. Nguyen Van Huynh Vice Chairman Vice Chairman Mr. Nguyen Dinh Thang Vice Chairman (appointed on 28 April 2017) Mr. Le Hong Phong Ms. Chu Thi Lan Huong Mr. Huynh Ngoc Huy Member Member Independent Member Board of Management Mr. Pham Doan Son CEO Mr. Bui Thai Ha Permanent Deputy CEO Mr. Ho Nam Tien Deputy CEO Mr. Kim Minh Tuan Deputy CEO Mr. Nguyen Quoc Thanh Deputy CEO Mr. Duong Cong Toan Deputy CEO Mr. Nguyen Thanh Tung Deputy CEO Mr. Vu Quoc Khanh Deputy CEO Mr. Duong Trong Chu Deputy CEO Mr. Nguyen Ngoc Nam Deputy CEO Ms. Nguyen Thi Gam Deputy CEO Ms. Nguyen Anh Van Deputy CEO Ms. Nguyen Thi Bich Loc Deputy CEO Ms. Nguyen Thu Hoa Deputy CEO Ms. Nguyen Thi Thanh Son Deputy CEO Ms. Le Thi Thanh Nga Deputy CEO 35

36 STATEMENT OF THE BOARD OF MANAGEMENT (Continued) BOARD OF MANAGEMENT S STATEMENT OF RESPONSIBILITY The Board of Management is responsible for the preparation of a summary of the Bank s audited financial statements for the year ended 31 December The Board of Management confirms that the summary financial statements are consistent, in all material respects, with those financial statements. For and on behalf of the Board of Management, Pham Doan Son General Director 26 March

37 REPORT OF INDEPENDENT AUDITORS ON THE SUMMARY FINANCIAL STATEMENTS No: 747/VN1A-HN-BC Deloitte Vietnam Company Ltd. 15th Floor, Vinaconext Tower, 34 Lang Ha Street, Lang Ha Ward, Dong Da District, Hanoi, Vietnam Tel: Fax: Website: To: The Shareholders The Boards of Directors and Management Lien Viet Post Joint Stock Commercial Bank The accompanying summary financial statements prepared on 26 March 2018, as set out from page 4 to page 43, which comprise the summary balance sheet as at 31 December 2017, and the summary income statement, and summary cash flow statement for the year then ended, and related notes, are derived from the audited financial statements of Lien Viet Post Joint Stock Commercial Bank (the Bank ) for the year ended 31 December We expressed an unmodified audit opinion on those financial statements in the Independent Auditor s Report dated 26 March The summary financial statements do not contain all the disclosures required by Vietnamese Accounting Standards, Accounting Regime applicable to credit institutions in Vietnam and legal regulations relating to financial reporting. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statement of the Bank. Board of Management s Responsibility for the Financial Statements The Board of Management is responsible for the preparation of a summary of the audited financial statement on the basis described in Note 2. Auditors Responsibility Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with Vietnamese Standard on Auditing No.810 Engagements to Report on Summary Financial Statements. Opinion In our opinion, the summary financial statements derived from the audited financial statement of the Bank for the year ended 31 December 2017 are consistent, in all material respects, with those financial statements, on the basis described in Note 2. Khuc Thi Lan Anh Deputy General Director Audit Practising Registration Certificate No Deloitte Vietnam Company Limited 26 March 2018 Hanoi, S.R. Vietnam Do Hong Duong Auditor Audit Practising Registration Certificate No Deloitte refers to one or more of Deloitte Touche Tohmatsu Ltd,. a UK private company limited by quarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. Please see for a more detailed description of DTTL and its member firms. 37

38 SUMMARY BALANCE SHEET As at 31 December 2017 FORM B 02/TCTD Issued under Circular No.49/2014/TT-NHNN dated 31 December 2014 of State Bank of Viet Nam Unit: Million VND NO ITEMS Notes A. ASSETS I. Cash, gold and gemstones 5 892, ,592 II. Balances with the State Bank of Vietnam ( SBV ) 6 10,939,956 12,219,567 III. Placements with and loans to other credit institutions 1. Placements with other credit institutions 2. Loans to other credit institutions 3. Provisions for credit losses on loans to other credit institutions 7 12,352,188 9,277,203 10,922,188 8,097, ,184,634 (4,634) (4,634) IV. Derivative financial instruments and other financial assets 8-19,369 V. Loans to customers 1. Loans to customers 2. Provisions for credit losses on loans to customers VI. Investment securities 1. Available-for-sale investment securities 2. Held-to-maturity investment securities 3. Provisions for impairment of investment securities VII. Long-term investments 1. Other long-term investments VIII. Fixed assets 1. Tangible fixed assets a. Cost b. Accumulated depreciation 2. Intangible assets a. Cost b. Accumulated amortisation IX. Other assets 1. Other receivables 2. Interest and fee receivables 3. Other assets - In which: Goodwill 4. Provisions for impairment of other on balance sheet assets TOTAL ASSETS 99,391,852 78,705, ,621,236 79,676, (1,229,384) (970,416) 31,863,910 33,246, ,934,260 32,496, ,715,663 1,553, (786,013) (803,334) 324, , , ,731 1,454,298 1,255, , ,944 1,743,662 1,414,803 (745,630) (585,859) , , , ,613 (77,832) (61,392) 6,213,925 6,177, ,636,507 2,716,945 2,935,137 2,862, , , , , (2,939) 163,433, ,865,255 The accompanying notes are an integral part of these summary financial statements 38

39 SUMMARY BALANCE SHEET (Continued) As at 31 December 2017 FORM B 02/TCTD Issued under Circular No.49/2014/TT-NHNN dated 31 December 2014 of State Bank of Viet Nam Unit: Million VND NO ITEMS Notes B. LIABILITIES AND OWNERS EQUITY I. Borrowings from the Government and the SBV II. Deposits and borrowings from other credit institutions 1. Deposits from other credit institutions 2. Borrowings from other credit institutions 17 1,331, , ,538,858 14,796,745 11,486,217 7,959,893 2,052,641 6,836,852 III. IV. Deposits from customers Derivative financial instruments and other financial liabilities ,275, ,984, ,120 - V. Grants, trusted funds and borrowings at risk of the credit institution 20 1,121,250 1,107,950 VI. Valuable papers issued 21 6,157,131 4,100,000 VII. Other liabilities 1. Interest and fee payables 2. Other payables and liabilities TOTAL LIABILITIES VIII. Capital and reserves 1. Capital a. Charter capital b. Share premium 2. Reserves 3. Retained earnings TOTAL LIABILITIES AND OWNERS EQUITY 22 3,577,126 2,233,044 2,297,835 1,670,585 1,279, , ,050, ,533, ,383,258 8,331,885 6,523,331 6,523,331 6,460,000 6,460,000 63,331 63,331 1,065, ,572 1,793, , ,433, ,865,255 The accompanying notes are an integral part of these summary financial statements 39

40 SUMMARY BALANCE SHEET (Continued) As at 31 December 2017 FORM B 02/TCTD Issued under Circular No.49/2014/TT-NHNN dated 31 December 2014 of State Bank of Viet Nam Unit: Million VND OFF-BALANCE-SHEET ITEMS NO ITEMS Notes 1. Loan guarantees 2. Foreign currency commitments 2.1 Foreign currency purchase commitments 2.2 Foreign currency sell commitments 2.3 Foreign currency swaps commitments 3. L/C guarantees 4. Other guarantees 5. Other commitments 38 24,142 6,920 26,231,913 19,522, ,797 2,260, ,711 2,127,264 25,209,405 15,134, ,685,226 1,582, ,033,237 2,626,967 25,336 2,674,651 Preparer Approver Nguyen Thi Gam Chief Accountant Pham Doan Son General Director 26 March 2018 The accompanying notes are an integral part of these summary financial statements 40

41 SUMMARY INCOME STATEMENT For the year ended 31 December 2017 FORM B 03/TCTD Issued under Circular No.49/2014/TT-NHNN dated 31 December 2014 of State Bank of Viet Nam Unit: Million VND NO ITEMS Notes Current year Prior year 1. Interest and similar income 2. Interest and similar expenses I. Net interest income 3. Income from services 4. Expenses on services 25 11,509,779 8,907, (6,282,936) (4,884,081) 5,226,843 4,023, , ,177 (125,204) (88,112) II. III. IV. Net gain from services Net gain from trading foreign exchanges Net gain/(loss) from trading securities 27 64,880 76, , ,811 14,045 (324) V. Net gain/(loss) from trading investment securities 5. Income from other activities 6. Expenses on other activities , ,440 33,169 5,365 (611,803) (148,602) VI. Net (loss) from other activities 30 (578,634) (143,237) VII. Operating expenses VIII. Net profit from operating activities before credit loss provision expenses 31 (2,813,096) (2,031,488) 2,289,814 1,840,157 IX. Provision expenses for credit losses 32 (521,728) (492,299) X. Profit before tax 7. Current corporate income tax expense 1,768,086 1,347,858 (400,000) (285,072) XI. Corporate income tax expense 33 (400,000) (285,072) XII. Profit after tax XIII. Basic earnings per share (VND/share) 1,368,086 1,062, ,028 1,582 Preparer Approver Nguyen Thi Gam Chief Accountant Pham Doan Son General Director The accompanying notes are an integral part of these summary financial statements March 2018

42 SUMMARY CASH FLOW STATEMENT For the year ended 31 December 2017 FORM B 04/TCTD Issued under Circular No.49/2014/TT-NHNN dated 31 December 2014 of State Bank of Viet Nam Unit: Million VND NO ITEMS Current year Prior year CASH FLOWS FROM OPERATING ACTIVITIES 01. Interest and similar income received 02. Interest and similar expenses paid 03. Income received from services 04. Net cash from trading foreign currencies, gold and trading securities 05. Other (expenses) 06. Receipts from debts written off or paid off by risk fund 07. Payments to employees and for operating management 08. Corporate income tax paid Net cash flows from operating activities before movements in assets and working capital Changes in operating assets 09. Change in deposits, gold at and loans to other credit institutions 10. Change in trading securities 11. Change in derivatives and other financial assets 12. Change in loans to customers 13. Change in provisions (credit, securities and long-term investments) 14. Change in other operating assets Changes in operating liabilities 15. Change in borrowings from the Government and the State Bank of Vietnam 16. Change in deposits and borrowings from other credit institutions 17. Change in deposits from customers (including State Treasury) 18. Change in valuable papers (excluding issued valuable papers charged into financial activities) 19. Change in grants, trusted funds and borrowings at risk of the credit institution 20. Change in derivatives and other financial liabilities 21. Change in other operating liabilities 22. Cash outflows from reserves of the credit institution I. Net cash generated by operating activities 11,436,802 9,575,797 (5,655,686) (4,684,052) 64,880 76, , ,340 (586,692) (143,672) 8, (2,618,797) (1,868,459) (390,585) (210,250) 2,422,102 2,903,203 (19,849,094) (21,723,568) (250,000) (432,750) 1,562,452 (2,669,548) 19,369 14,827 (20,848,722) (22,108,592) (53,703) (1,814) (278,490) 3,474,309 19,822,033 33,232,970 1,020,782 (6,034,096) (1,257,887) 3,597,111 17,290,483 33,355,910 2,057,131 2,100,000 13,300 13,450 49, , ,858 (36,530) (46,263) 2,395,041 14,412,605 The accompanying notes are an integral part of these summary financial statements 42

43 SUMMARY CASH FLOW STATEMENT (continued) For the year ended 31 December 2017 FORM B04/TCTD Issued under Circular No.49/2014/TT-NHNN dated 31 December 2014 of State Bank of Viet Nam Unit: Million VND NO. ITEMS Current year Prior year CASH FLOWS FROM INVESTING ACTIVITIES 01. Acquisition of fixed assets 02. Proceeds from sales, disposal of fixed assets 03. Investments in other entities (340,101) (205,691) 2, II. Net cash (used in) investing activities (338,079) (204,963) CASH FLOWS FROM FINANCING ACTIVITIES 01. Dividends and profit paid to shareholders (258,400) (290,700) III. IV. Net cash (used in) financing activities Net increase in cash (258,400) (290,700) 1,798,562 13,916,942 V. Cash and cash equivalents at the beginning of the year VI. Cash and cash equivalents at the end of the year (Note 35) 20,956,361 7,039,419 22,754,923 20,956,361 Preparer Approver Nguyen Thi Gam Chief Accountant Pham Doan Son General Director 26 March 2018 The accompanying notes are an integral part of these summary financial statements 43

44 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD The notes are an integral part of and should be read in conjunction with the accompanying summary financial statements. 1. GENERAL INFORMATION Lien Viet Post Joint Stock Commercial Bank (hereinafter referred to as LienVietPostBank or the Bank ) is a joint stock commercial bank incorporated in the Socialist Republic of Vietnam. Establishment and operation The Bank was formerly known as Lien Viet Joint Stock Commercial Bank, which had been established in accordance with Establishment and Operation License No. 91/GP-NHNN dated 28 March 2008 by the Governor of the State Bank of Vietnam ( SBV ). The license is valid for 99 years from the issuance date. In accordance with Official Letter No. 244/TTtg-DMDN dated 21 February 2011, the Vietnamese Prime Minister approved the capital contribution of Vietnam Post Corporation ( VNPost ) to Lien Viet Joint Stock Commercial Bank by the value of Vietnam Postal Savings Service Company ( VPSC ) and cash. As at 01 July 2011, VNPost completed the transfer of assets and liabilities of VPSC to the Lien Viet Joint Stock Commercial Bank. Under Decision No.1633QD-NHNN dated 22 July 2011, Lien Viet Joint Stock Commercial Bank was approved to change its name to Lien Viet Post Joint Stock Commercial Bank by the State Bank of Vietnam. The Bank s main activities are to provide banking services including mobilising and receiving short-term, mediumterm, and long-term deposits from organisations and individuals; making short-term, medium-term, and longterm loans to organisations and individuals based on the nature and capability of the Bank s sources of capital; conducting foreign exchange transactions, international trade financial services, discounting of commercial papers, bonds and other valuable papers, and providing other banking services permitted by the State Bank of Vietnam. Charter capital The Bank s charter capital under Establishment and Operation License No. 91/GP-NHNN dated 28 March 2008 is VND 3,300,000 million with founding shareholders namely Him Lam Corporation, Saigon Trading Group and Southern Airports Services Joint Stock Company. On 30 October 2009, the Bank completed its share issuance of VND 350,000 million and raised its charter capital to VND 3,650,000 million. On 02 April 2011, the Bank completed its conversion of VND 2,000,000 million of bonds and raised its charter capital to VND 5,650,000 million. In July 2011, through the merger with Vietnam Postal Savings Services Company approved by the Government under Official Letter No. 244/TTg-DMDN, the Bank s charter capital increased to VND 6,010,000 million. In 2012, the Bank completed its share issuance of VND 450,000 million to Vietnam Post Corporation under agreement and raised its charter capital to VND 6,460,000 million. As at 31 December 2017, the Bank s charter capital was VND 6,460,000 million. Branch network The Head Office of the Bank is located at 109 Tran Hung Dao Street, HoanKiem District, Hanoi, Vietnam. As at 31 December 2017, the Bank has one (01) Head Office, four (04) representative offices, seventy (70) branches, one hundred and fifty seven (157) transaction offices, one thousand three hundred twenty one (1,321) post transaction offices nationwide. Employees The total number of employees of the Bank as at 31 December 2017 was 7,380 (as at 31 December 2016: 5,150). 44

45 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 2. ACCOUNTING CONVENTION AND FINANCIAL YEAR Accounting convention The accompanying summary financial statements are derived from the Bank s audited financial statements for the year ended 31 December The audited financial statements for the year ended 31 December 2017 were published by the Bank in accordance with relevant regulations. The accompanying summary financial statements are not intended to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Vietnam. Financial year The Bank s financial year begins on 01 January and ends on 31 December. 3. CASH, GOLD AND GEMSTONES Cash in VND Cash in foreign currencies 789, , ,498 78, , , Balances with the state bank of Vietnam ( SBV ) Current account at the State Bank of Vietnam in VND Current account at the State Bank of Vietnam in foreign currencies 10,910,388 11,678,348 29, ,219 10,939,956 12,219,567 45

46 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 5. PLACEMENTS WITH AND LOANS TO OTHER CREDIT INSTITUTIONS Placements with other credit institutions Demand deposits - In VND - In foreign currencies Term deposits - In VND - In foreign currencies Total 4,387, ,937 2,473, ,905 1,913, ,032 6,534,370 7,487,266 4,740,370 6,733,860 1,794, ,406 10,922,188 8,097,203 Loans to other credit institutions - In VND Including: discounts, rediscounts - In foreign currencies Including: discounts, rediscounts - Provisions for credit losses Total Total placements with and loans to other 1,434,634 1,184, (4,634) (4,634) 1,430,000 1,180,000 12,352,188 9,277, DERIVATIVE FINANCIAL INSTRUMENTS AND OTHER FINANCIAL ASSETS Nominal value of the contracts (at the date of the contract s effective date) Carrying value Assets Liabilities Currency derivative financial instruments Currency forward contracts Currency swap contracts Net amount 1,327,655 - (4,374) 3,479,223 - (44,746) - (49,120) (49,120) Currency derivative financial instruments Currency forward contracts Currency swap contracts 1,336,737 34, ,791 (15,314) - 19,369 - Net amount 19,369 46

47 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 7. LOANS TO CUSTOMERS Loans to local business entities and individuals Discounting promissory notes and valuable papers Loans by grants, investment trusts 100,491,273 79,594,456 20,925 15, ,038 66, ,621,236 79,676,162 Analysis of loan balances by quality Current loans Special-mention loans Sub-standard loans Doubtful loans Loss loans 97,662,286 77,802,729 1,885, , , , , , , , ,621,236 79,676,162 Analysis of loan balances by term Short term loans Medium term loans Long term loans 26,585,887 20,909,750 51,384,071 42,115,885 22,651,278 16,650, ,621,236 79,676,162 Short term, medium term and long term loans have initial terms of less than 1 year, from 1 year to 5 years and more than 5 years respectively. Analysis of loan balances by currency Loans in VND Loans in foreign currencies 95,497,618 74,812,069 5,123,618 4,864, ,621,236 79,676,162 47

48 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 8. PROVISIONS FOR CREDIT LOSSES ON LOANS TO CUSTOMERS General provision Specific provision 727, , , ,959 1,247, , INVESTMENT SECURITIES 9.1 Available-for-sale investment securities Debt securities - Government bonds - Debt securities issued by local credit institutions - Debt securities issued by local economic entities 15,834,836 15,426,872 11,727,432 13,703,798 2,499,950 2,494,000 Equity securities - Equity securities issued by other local credit insititutions 872, ,042 30,934,260 32,496,712 Provision for impairment of available-for-sale securities General provisions for impairment of available-for-sale debt investment securities Specific provisions for impairment of available-for-sale equity investment securities (19,050) (21,863) (19,038) (244,735) 30,896,172 32,230, Listing status of available-for-sale investment securities Par value of special bonds Provision for special bonds 1,715,663 1,553,047 (747,925) (536,736) 967,738 1,016,311 48

49 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 10. PROVISION FOR IMPAIRMENT OF INVESTMENT SECURITIES Movements of provision for impairment of investment securities for the year ended 31 December 2017 were as follows: Provision for impairment of avaiable for sale equity investment securities General provision of avaiable for sale debt investment securities Specific provision of held to maturity debt investment securities Total Provision charged for the year Provision reversed for the year 244,735 21, , ,334-1, , ,926 (225,697) (3,931) (36,619) (266,247) 19,038 19, , , OTHER LONG-TERM INVESTMENTS Cost Carrying value Ownership interest Cost Carrying value Ownership interest Investments in business entities LienViet Securities Joint Stock Company Xin Man Development Joint Stock Company(*) Viet Lao Power Joint Stock Company 13,750 15, ,750 15, ,800 8, ,800 8, , , , , , , , ,731 (*) The Bank holds more than 20% of the share capital of Xin Man Development Joint Stock Company. However, the Bank has obtained the Prime Minister s approval on the excess of the shareholding in the form of the normal commercial investment over the prevailing level as stated in Official Letter No. 2493/TTg-DMDN dated 15 May The operation objective of Xin Man Development Joint Stock Company is to implement charity activities in Xin Man District, Ha Giang Province. Therefore, the investment in this company is classified as Other long-term investments rather than Investments in associates. 49

50 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 12. TANGIBLE FIXED ASSETS Movements of tangible fixed assets for the year ended 31 December 2017 were as follows: COST Acquisitions during the year Transfer from construction in progress Disposals Buildings, refurbishment cost Machinery, equipment Motor vehicles Other Total 338, , , ,648 1,414, , ,250 40, ,616 55, ,353 - (2,028) (17,352) (730) (20,110) ACCUMULATED DEPRECIATION Depreciation charged for the year Disposals NET BOOK VALUE 394, , , ,900 1,743,662 76, , ,239 72, ,859 24,790 59,143 68,113 25, ,859 - (1,825) (15,577) (686) (18,088) 101, , ,775 97, , , , ,834 78, , , , ,472 63, ,944 Movements of tangible fixed assets for the year ended 31 December 2016 were as follows: Buildings, refurbishment Machinery, cost(*) equipment (*) Motor vehicles Other Total COST Acquisitions during the year Transfer from construction in progress Disposals ACCUMULATED DEPRECIATION Depreciation charged for the year Transfer from construction in progress Disposals NET BOOK VALUE 295, , , ,441 1,213,838-57, , ,524 42, ,796 - (8,491) (3,504) (360) (12,355) 338, , , ,648 1,414,803 49, , ,423 49, ,387 24,781 44,779 56,599 22, ,062 2, ,037 - (8,484) (2,738) (360) (11,627) 76, , ,239 72, , , , ,472 63, , , , ,231 60, ,451 (*) Certain items were restated for comparability purpose. 50

51 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 13. INTANGIBLE ASSETS Movements of intangible assets for the year ended 31 December 2017 were as follows: Land-use rights Computer software Total COST Acquisitions during the year Other decreases ACCUMULATED AMORTISATION Amortisation charged for the year Other additions NET BOOK VALUE 373, , ,613-46,485 46, , , ,098 8,151 53,241 61,392 1,678 14,762 16, ,829 68,003 77, ,441 92, , ,119 61, ,221 Movements of intangible assets for the year ended 31 December 2016 were as follows: Land-use rights Computer software Total COST Acquisitions during the year Other decreases ACCUMULATED AMORTISATION Amortisation charged for the year Other decreases NET BOOK VALUE 348, , ,532 25,000 10,167 35,167 - (10,086) (10,086) 373, , ,613 5,399 52,112 57,511 2,752 11,215 13,967 - (10,086) (10,086) 8,151 53,241 61, ,119 61, , ,871 62, ,021 51

52 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 14. OTHER RECEIVABLES Construction in progress Advance to the State budget Advance for purchases of fixed assets Advance for constructions for charity purposes Deposits for long-term office rental Deposits for land leases Other receivables 19,278 36,660 2,913 2,902 26,524 40, , , , , , , , ,403 2,636,507 2,716, OTHER ASSETS Prepaid expenses (i) Goodwill (ii) Other assets 354, , , ,430 45,381 21, , ,291 (i)prepaid expenses include: Office rental prepaid expenses Head office repair and improvement expenses Brokerage commission fees Other prepaid expenses 44,348 42,311 12,747 11, , ,978 94,957 98, , ,515 (ii) This amount represents goodwill arising from receiving capital contribution by Vietnam Postal Savings Services Company ( VPSC ) from Vietnam Post Corporation ( VNPost ) in Current year Prior year Allocated to expenses during the year 311, ,636 (69,139) (69,206) 242, ,430 52

53 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 16. BORROWINGS FROM THE GOVERNMENT AND THE SBV Borrowings under credit documents Deposit in VND 331, ,737 1,000,000-1,331, , DEPOSITS AND BORROWINGS FROM OTHER CREDIT INSTITUTIONS Demand deposits - In VND - In foreign currencies Term deposits - In VND - In foreign currencies Borrowings - In VND In which: Discounting, rediscounting borrowings Mortgage, pledge borrowings - In foreign currencies In which: Discounting, rediscounting borrowings Mortgage, pledge borrowings 5,812 5,240 5,803 5, ,480,405 7,954,653 7,017,830 6,868,862 4,462,575 1,085,791 2,052,641 6,836, ,375 5,506, ,495 4,900, ,122,266 1,330, ,538,858 14,796, DEPOSITS FROM CUSTOMERS Analysis by type of deposits Demand deposits - Demand deposits in VND - Demand deposits in foreign currencies Term deposits - Term deposits in VND - Term deposits in foreign currencies Deposits for specific purpose - Deposits for specific purposes in VND - Deposits for specific purposes in foreign currencies Margin deposits - Margin deposits in VND - Margin deposits in foreign currencies 36,412,964 45,745,230 34,967,365 44,627,694 1,445,599 1,117,536 91,554,384 65,002,138 90,452,446 64,028,618 1,101, ,520 41,568 72, ,134 72, , , , ,348 23,599 14, ,275, ,984,894 53

54 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 18. DEPOSITS FROM CUSTOMERS (Continued) Analysis by type of customers and type of business entity Economic entities Individuals 68,746,599 68,060,185 59,528,778 42,924, ,275, ,984, GRANTS, TRUSTED FUNDS AND BORROWINGS AT RISK OF THE CREDIT INSTITUTION Funds received from other organisations and individuals in foreign currencies 1,121,250 1,107,950 1,121,250 1,107, VALUABLE PAPERS ISSUED Valuable papers in VND Par value Certificate deposits Par value 4,100,000 4,100,000 4,100,000 4,100,000 2,057,131-2,057,131-6,157,131 4,100,000 In the year 2017, the Bank additionally issued VND 2,057,131 million of valuable papers in terms from 1.5 years to 5 years with interest rate from 7.04% per annum to 8.8% per annum. 21. OTHER LIABILITIES Payables to internal parties Payables to external parties (i) Payables to bonus and welfare funds 94, ,206 3,458,082 2,027,403 24,218 2,435 3,577,126 2,233,044 54

55 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 21. OTHER LIABILITIES (Continued) (i) Details of payables to external parties Interest and fee payables Construction in progress Purchases of fixed assets Amount due to customers and deferred payment Tax payables (ii) Commissions fees for provincial post office Interest received by government bonds in advance Payables for payment of scratch cards of Vi Viet ewallet Guarantee commitment fee received in advance Payables for card services Payable regarding the sale of debts, sale or management of secured assets Other payables 2,297,835 1,670,585 57,528 55,373 11,447 9, ,893 12, , ,080 56,967 44,207 6,152 6,152 72,244 29,496 14,996 15,147 37,343 18,737 7,480 7,180 75,073 28,367 3,458,082 2,027,403 (ii) Details of tax payables Value added tax Corporate income tax Other taxes 2,565 2, , ,000 16,145 9, , , THE BANK S OBLIGATIONS TO THE STATE BUDGET Opening balance Movement during the year Payables Paid Closing balance Value added tax Corporate income tax Other taxes 2,692 16,133 16,260 2, , , , ,415 9, , ,756 16, , , , ,124 55

56 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 23. CAPITAL AND RESERVES Movements of major items in owners equity: Charter capital Share premium Financial reserve fund Charter capital supplementary reserve Investment and development fund Retained earnings Total Profit for the year Distribution to reserves (*) The fund used during the year Dividends declared (**) 6,460,000 63, , ,854 3, ,982 8,331, ,368,086 1,368, ,968 68,404 - (198,372) (58,313) (58,313) (258,400) (258,400) 6,460,000 63, , ,258 3,793 1,793,983 9,383,258 (*) Under the approved Resolution dated 25 March 2017 of the General Meeting of Shareholders, the Bank made distribution to funds from 2016 profit, including the approved distribution to bonus and welfare funds with the amount of VND 58,313 million. (**)In accordance with Resolution No. 01/2017/NQ-HDQT dated 04 January 2017 of the Bank s Board of Directors for the 2nd term and Announcement No.03/2017/T-HDQT dated 04 January 2017, the Bank paid the first 2016 dividend in advance with a payout ratio of 4% on the total face value of ownership in January The total amount paid is VND 258,400 million. 56

57 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 23. CAPITAL AND RESERVES (Continued) Details of the Bank s number of shares are as follows: Number of the registered shares for issue Number of shares offered to the public - Ordinary shares - Preferred shares Number of shares in circulation - Ordinary shares - Preferred shares Par value of a common share (VND) Dividends: 646,000, ,000, ,000, ,000, ,000, ,000, ,000 10,000 Ordinary shares Preferred shares Paid dividends Paid dividends/share 258, INTEREST AND SIMILAR INCOME Current year Prior year Interest from deposits Interest from loans to customers Income from guarantee services Interest from trading and investing in debt securities Other income from credit activities 108, ,385 9,119,891 6,342,591 44,540 46,170 2,236,356 2,264, ,509,779 8,907, INTEREST AND SIMILAR EXPENSES Current year Prior year Interest expense for deposits Interest expense for borrowings Interest expense on valuable papers issued Expenses for other credit activities Commission fee on brokerage of postal saving services 5,119,840 4,158, , , , ,322 16,383 2, , ,947 6,282,936 4,884,081 57

58 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 26. NET GAIN FROM SERVICES Current year Prior year Income from services - Income from remittance services and treasury services - Income from trust and agency services - Others Expense for services - Expense for remittance services and treasury services - Others Net gain from services 190, ,177 68,130 48,837 34,674 20,156 87,280 95, ,204 88,112 69,250 46,697 55,954 41,415 64,880 76, NET GAIN/(LOSS) FROM TRADING FOREIGN CURRENCIES Current year Prior year Income from trading foreign exchanges - Income from trading foreign currencies - Income from trading currency derivative financial instruments Expenses for trading foreign exchanges - Expenses for trading foreign currencies - Expenses for trading currency derivative financial instruments Net gain from trading foreign exchanges 250, ,090 76, , , , , ,279 30,341 61, , ,354 5, , NET GAIN/(LOSS) FROM TRADING INVESTMENT SECURITIES Current year Prior year Income from trading investment securities (Expense) for trading investment securities Provision (charged)/reversed for impairment of investment securities Net gain/(loss) from trading investment securities 153,952 33,730 (9,533) (13,877) 225,698 (242,293) 370,177 (222,440) 29. NET (LOSS) FROM OTHER ACTIVITIES Current year Prior year Income from other activities Income from disposals of assets Other income Expenses for other activities Expenses for social activities Other expenses (Loss) from other activities 33,169 5,365 8, ,981 4, , , , , ,167 22,124 (578,634) (143,237) 58

59 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 30. OPERATING EXPENSES Current year Prior year Taxes, fees and charges Staff costs - Salaries and allowances - Salary-based expenses - Other benefits - Other staff costs Expenses for assets - Depreciation and amortisation expenses - Rental expenses - Maintenance and repair expenses - Materials and tools - Others Expenses for operating management - Per diem - Expenses for union activities - Communication and postal expenses - Printing, marketing and promotion expenses - Others Insurance premium for customers deposits Other operating expenses 75,391 67,790 1,506,146 1,023,221 1,285, , ,436 79, ,036 73, , , , , , ,201 99,083 66,739 75,245 54,085 9,847 6, , ,634 24,804 18,478 3, ,439 5, ,339 70, , ,758 52,997 4,947 3,213 2,813,096 2,031, PROVISION EXPENSES FOR CREDIT LOSSES Current year Prior year Provision expense for credit losses on loans to customers Provision reversed for corporate bonds (Note 10) Provision expense for VAMC bonds Provision expense for deposits at other credit institutions (Reversal) of provision expense for receivables from loans sold 312, ,819 (2,813) (13,042) 214, ,681-2,317 (2,939) (3,476) 521, ,299 59

60 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 32. CORPORATE INCOME TAX EXPENSE Current year Prior year Profit before corporate income tax Adjustments for Plus: Non-deductible expenses Taxable profit In which: Profit before tax Normal corporate income tax rate Current corporate income tax expense based on taxable profit Adjustment as per previous year s tax inspection report CIT paid in arrears after tax finalization Total current corporate income tax for the year 1,768,086 1,347, ,916 48,461 1,884,002 1,396,319 1,884,002 1,396,319 20% 20% 376, ,264 23, , , , BASIC EARNINGS PER SHARE (i) Profit after tax: Current year Prior year Profit afer tax Appropriation to bonus and welfare funds Profit attributable to ordinary shareholders 1,368,086 1,062,786 (58,313) (40,721) 1,309,773 1,002,065 (ii) Weighted average numbers of ordinary shares: Current year Prior year Outstanding ordinary shares carried forward Effect of shares issued during the year Weighted average of ordinary shares for calculation of basic earnings per share 646,000, ,000, ,000, ,000,000 (iii) Basic earnings per share: Current year Prior year Basic earnings per share 2,082 1,582 60

61 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 34. CASH AND CASH EQUIVALENTS Cash and cash equivalents presented in the cash flow statement includes the following balance shees items: Cash on hand (*) Balances with the State Bank of Vietnam (*) Placements with and loans to other credit institutions with terms of not exceeding 3 months 892, ,592 10,939,956 12,219,567 10,922,188 8,097,203 22,754,923 20,956,361 (*) Balances of cash on hand, balances with the SBV and current deposits at other credit institutions are presented in Note 3, Note 4 and Note EMPLOYEE S INCOME I. Total number of employees (person) II. Employees income () 1. Basic salary 2. Allowances 3. Other income 4. Total income (1+2+3) 5. Average monthly salary 6. Average monthly income Current year 7,380 Prior year 5,150 1,008, , ,764 89,273 33,484 16,021 1,285, , COLLATERAL 36.1 Type and value of collateral Carrying value at balance sheet date () Real estate Movable assets Valuable papers Others assets 105,996,485 74,692,838 8,043,469 34,552,518 17,111,761 10,980,125 38,783,646 64,026, ,935, ,251, Collateral held by the Bank which are permitted to sell to or re-pledge for a third party in the absence of default by the owner of the collateral As at 31 December 2017, the Bank did not hold any collateral which the Bank is permitted to sell or re-pledge for a third party in the absence of default by the owner of the collateral. 61

62 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 37. CONTINGENT LIABILITIES AND COMMITMENTS In normal course of business, the Bank uses financial instruments which are related to off-balance sheet items. These financial instruments mainly comprise financial guarantees and commercial letters of credit. These instruments involve elements of credit risk apart from those recognised in the balance sheet. Credit risk of off-balance sheet financial instruments is defined as the possibility of the Bank s sustaining a loss because any other party to a financial instrument fails to meet its contractual obligations. Financial guarantees are conditional commitments issued by the Bank to guarantee the performance of the Bank s customer to a third party, including guarantee for borrowings, settlement, contract performance and bidding, etc. The credit risk associated with issuing guarantees is essentially the same as that associated with loans to customers; other guarantees have risk concentration at lower level. Letter of credit (L/C) transaction is a transaction where the Bank issues a financial guarantee to its customers (buyer or importer) in which the seller or the exporter is the beneficiary. There are 2 types of L/C by term: L/C at sight and usance L/C. Credit risk of L/C is limited if the Bank can manage the receipt of goods. Usance L/C represents higher risk than L/C at sight. If the Bank makes payment to the beneficiary under L/C or financial guarantees conditions but the Bank s customer does not reimburse to the Bank, the Bank has the right to record a loan to the customer under their agreement signed before issuing L/C or financial guarantees. The Bank requires margin deposits to cover the credit risk relating financial instrument 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 customers as assessed by the Bank. In addition, the Banjs engages conditional commitments, in forms of commitments in interest swap contracts, commitments in valuable papers trading contracts and other commitments. Details of classification of off balance sheet commitments under Circular 02 and Circular 09 of the SBV at the end of the financial year are as follows: Current loans 4,742,605 4,216,580 4,742,605 4,216, RISK-FREE TRUST AND AGENCY ACTIVITIES Trusted fund from organisations 4,117,276 3,924,712 4,117,276 3,924,712 62

63 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 39. FINANCIAL INSTRUMENTS On 06 November 2009, the Ministry of Finance issued Circular No. 210/2009/TT-BTC ( Circular 210 ) guiding the application of International Financial Reporting Standards on presentation of financial statements and disclosures of financial instruments, which is effective for the financial year beginning on or after 01 January Circular 210 provides the definition of financial instruments, including financial assets, financial liabilities, derivative financial instruments and equity instruments and requirements on classification, presentation and disclosures of these financial instruments. As Circular 210 only regulates the presentation and disclosure of financial instruments, the following terms under Circular 210 are adopted for Note 39 to the financial statements. Assets and liabilities of the Bank are recognised in accordance with Vietnamese Accounting Standards, Accounting Regime applicable to credit institutions in Vietnam and other prevailing regulations of State Bank of Vietnam. Financial assets Under Circular 210, the Bank s financial assets includes cash, gold and gemstone, balances with the State Bank of Vietnam, placements with and loans to other credit institutions, loans to customers, investment securities, other long-term investments, other assets and assets under currency derivative contracts. Financial assets within the scope of Circular 210 are classified, for disclosures in the financial statements, into either of the followings: Financial assets at fair value through profit and loss: Financial asset at fair value through profit and loss is a financial asset that meets either of the following conditions: a) A financial asset is classified as held for trading if: + It is acquired or incurred principally for the purpose of selling or repurchasing in the near term; + There is evidence of a recent actual pattern of short-term profit-taking; or + It is a derivative (except for the derivative that is a financial guarantee contract or effective hedging instrument). b) Upon initial recognition, it is designated by the Bank as at fair value through profit or loss. Held-to-maturity investments: Held-to-maturity investments are non-derivative financial assets with determinable payments and fixed maturity that the Bank has the positive intention and ability to hold to maturity except for: a) Those that the Bank designates at fair value through profit or loss upon initial recognition; b) Those that the Bank designates as available for sale; and c) Those that meet the definition of loans and receivables. Loans and receivables: Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market except for: a) Those that the Bank intends to sell immediately or in the near term, which shall be classified as held for trading, and those that the Bank designates as at fair value through profit and loss upon initial recognition; b) Those that the Bank designates as available for sale upon initial recognition; or 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. Available-for-sale financial assets: Available-for-sale financial assets are those non-derivative financial assets that are designated as available for sale or are not classified as: a) Loans and receivables; b) Held-to-maturity investments or; c) Financial assets designated as at fair value through profit or loss. 63

64 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 39. FINANCIAL INSTRUMENTS (Continued) Financial liabilities According to Circular 210, the Bank s financial liabilities include borrowings from the Government and SBV, deposits and borrowings from other credit institutions, customer deposits, bonds, grants, trusted funds and borrowings at risk of the credit institution, valuable papers issued, other payables and payables under currency derivative contracts. Financial liabilities within the scope of Circular 210 are classified, for disclosures in the financial statements, into either of the following: Financial liabilities at fair value through profit or loss: a) A financial liability must meet either of the following conditions: It is acquired or incurred principally for the purpose of selling or repurchasing in the near term; There is evidence of a recent actual pattern of short-term profit-taking; or It is a derivative (except for the derivative that is a financial guarantee contract or effective hedging instrument). b) Upon initial recognition, it is designated by the Bank as at fair value through profit or loss. Financial liabilities at amortised cost: Financial liabilities that are not classified as at fair value through profit or loss are classified as at amortised cost. Offsetting of financial assets and financial liabilities Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously. The risk management policy related to financial instruments The Board of Directors has overall responsibility for the establishment and oversight of the Bank s risk management framework. The Board has established Audit and Risk Committee, which are responsible for developing and monitoring the Bank s risk management policies in specified areas. All Board s committees have executive and non-executive members and report periodically to the Board of Directors on their responsibility. The Bank s risk management policies are established to identify and analyse the risks exposed to the Bank, to set appropriate risk limits and controls, and to monitor risks and adhere to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions, products and services offered. The Bank, through its training activities, management standards and management systems, aims to develop a disciplined and constructive control environment, in which all employees understand their roles and responsibilities. The Bank s Internal Audit Division and Strategies and Risk Management Division undertakes both regular and ad-hoc reviews of risk management controls and monitoring procedures, the results of which are reported to the Board of Directors. Along with setting up the departments in charge of risk management and risk management policies relating to financial instruments, the Bank also coordinates with suppliers in the information technology and telecommunication sectors to build an integrated system of risk management tools to support the risk management operation in protecting customers, suppliers and therefore, to enhance the sustainable development of the Bank. The policies on currency risk, interest rate risk, credit risk and liquidity risk are analysed in details in Notes 40, 41, 42 and 43. Determination of fair value of financial instruments The Bank uses the method and assumptions to estimate fair value as following: Fair value of cash and short-term deposits is measured at the carrying value of the items because these are short-term instruments. The Bank s financial instruments are detailed as follows: 64

65 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 39. FINANCIAL INSTRUMENTS (Continued) Determination of fair value of financial instruments (Continued) Carrying value (Excluding provision) Fair value Financial assets Cash on hand 892, , , ,592 Balances with the State Bank of Vietnam (SBV) 10,939,956 12,219,567 10,939,956 12,219,567 Placements with and loans to other credit institutions 12,356,822 9,281,837 12,356,822 9,281,837 Derivative financial instruments and other financial assets - 19,369 * * Loans to customers 100,621,236 79,676,162 * * Investment securities 32,649,923 34,049,759 * * Other financial assets 2,935,137 3,254,489 Financial liabilities 160,395, ,140,775 Borrowings from the Government and the SBV 1,331, ,737 * * Deposits and borrowings from other credit institutions 13,538,858 14,796,745 * * Deposits from customers 128,275, ,984,894 * * Derivative financial instruments and other financial liabilities 49,120 - * * Valuable papers issued 6,157,131 4,100,000 * * Grants, trusted funds and borrowings at risk of the credit institution 1,121,250 1,107,950 * * Other financial liabilities 2,297,835 1,699,869 * * 152,771, ,000,195 (*) The Bank has not determined fair value of financial assets and financial liabilities as at the balance sheet date since Vietnamese Accounting Standards as well as prevailing regulations have not had specific guidance on the fair value determination of such items. 65

66 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 39. FINANCIAL INSTRUMENTS (Continued) Classification of financial assets and financial liabilities as at 31 December 2017: Book value Loans and receivables Held-fortrading Held-tomaturity Availablefor-sale Amortised cost Total Financial assets Cash on hand Balances with the State Bank of Vietnam (SBV) Placements with and loans to other credit institutions Derivative financial instruments and other financial assets Loans to customers Investment securities Other financial assets Financial liabilities Borrowings from the Government and the SBV Deposits and borrowings from other credit institutions Deposits from customers Derivative financial instruments and other financial liabilities Valuable papers issued Grants, trusted funds and borrowings at risk of the credit institution Other financial liabilities 892, ,779 10,939, ,939, ,356, ,356, ,621, ,621,236-1,715,663-30,934,260-32,649, ,935, ,935,137 11,832,735 1,715, ,913,195 30,934, ,395, ,331,519 1,331, ,538,858 13,538, ,275, ,275,377 49, , ,157,131 6,157, ,121,250 1,121, ,297,835 2,297,835 49, ,721, ,771,

67 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 40. CURRENCY RISK Currency risk is the risk that values of financial instruments will be affected by the changes in foreign exchange rate. The Bank was incorporated and operates in Vietnam and its reporting currency is Vietnam Dong (VND). Most of the Bank s transactions are denominated in VND and USD. As reporting currency of the Bank is VND, thus, the Bank s financial statements could be affected by fluctuations of exchange rate between USD and VND. Risk arising from transactions denominated in foreign currency would result in foreign exchange gain or loss and these are recognised in the income statement. This risk exposes when the assets and liabilities of the Bank are denominated in currencies other than the reporting currency and these include cash on hand, placements with and loans to other credit institutions, investment securities, deposits and borrowings from other credit institutions, deposits from customers. The Bank has set limits on position of each currency based on the internal risk assessment of the Bank and regulations of the SBV. A foreign currency position is monitored on a daily basis and hedging strategies that the Bank ensures positions to be maintained within the established limits. The Bank also maintains open positions to earn profits from exchange rate fluctuations. 67

68 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 40. CURRENCY RISK (Continued) Carrying amounts of monetary assets and liabilities by type of currencies as at 31 December 2017 are as follows: ITEM VND EUR equivalent USD equivalent Other currencies equivalent Total Assets Cash on hand Balances with the State Bank of Vietnam (SBV) Placements with and loans to other credit institutions (*) Derivative financial instruments and other financial assets (*) Loans to customers (*) Investment securities (*) Long-term investments (*) Fixed assets Other assets (*) Total assets Liabilities and owners equity Borrowings from the Government and the SBV Deposits and borrowings from other credit institutions Deposits from customers Derivative financial instruments and other financial liabilities Grants, trusted funds and borrowingsat risk of the credit institution Valuable papers issued Other liabilities (*) Capital and reserves Total liabilities and owners equity Balance sheet currency position Off-balance sheet currency position Total currency position 789, , ,779 10,910,388-29,568-10,939,956 8,648,942 21,185 3,473, ,796 12,356, ,497,617-5,123, ,621,236 32,649, ,649, , ,731 1,454, ,454,298 6,085, , ,213, ,360,565 21,234 8,859, , ,453,670 1,331, ,331,519 7,954,008-5,584,850-13,538, ,663,106 19,952 2,582,928 9, ,275,377 49, , ,121,250-1,121,250 6,157, ,157,131 3,561, ,207-3,577,126 9,383, ,383, ,100,039 19,974 9,304,235 9, ,433,639 2,260,526 1,260 (445,186) 203,431 2,020, ,586,812 30,117 36,386, , ,201, ,847,338 31,377 35,941, , ,221,667 (*) Excluding risk provision. 68

69 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 41. INTEREST RATE RISK Interest rate risk is the possibility of the Bank s income or asset value being affected when market interest rate fluctuates. Interest rate risk to the Bank s operation possibly derives from difference in maturity or amount between interest-bearing assets and liabilities. Some assets have no specific term or are sensitive to interest rates and do not correspond to specific liabilities. The assets and liabilities of the Bank are classified by term according to an earlier time between the re-pricing period and the maturity date as at the balance sheet date. Expected re-pricing date and maturity date of assets might be very different from those specified in the contract, especially the deposits from customers. Interest rate risk to the Bank possibly arises from investment, funding and lending activities. The effective interest rate re-pricing term of assets and liabilities is the remaining period from the date of financial statements to the nearest interest rate re-pricing date. The following assumptions and conditions have been adopted in the analysis of effective interest rate re-pricing term of the Bank s assets and liabilities: - Cash on hand, long-term investments and other assets (fixed assets, investment properties and other assets) are classified as non interest-bearing items; - Balances with the SBV are considered settlement deposits, thus the re-pricing effective interest rate term is assumed to be within one month; - The effective interest rate re-pricing term of investment securities is determined based on contractual interest rate re-pricing term of each securities; - The effective interest rate re-pricing term of placements with and loans to other credit institutions; loans to customers; borrowings from the Government and the SBV; deposits and borrowings from other credit institutions; deposits from customers are determined as follows: Items with fixed interest rate during the contractual period: the effective interest rate re-pricing term is determined from the balance sheet date to maturity date; Items with floating interest rate: the re-pricing effective interest rate term is determined from the balance sheet date to the nearest interest rate re-pricing date; - The effective interest rate re-pricing term of valuable papers issued is determined based on the actual maturity date of each valuable paper issued; is dependent on the Bank s regulations on interest rates of each issuance; - The effective interest rate re-pricing term of grants, trusted funds and borrowings at risk of the credit institution is determined as the remaining period to maturity date of the transactions since such transactions have fixed interest rates. - The effective interest rate re-pricing term of other borrowings is from one to five years. - The effective interest rate re-pricing term of other liabilities is from one to three months. In fact, these items could have various interest rate re-pricing terms. Interest rate sensitivity Since Circular 210 does not provide specific guidance on implementation of interest rate sensitivity analysis, the Bank has not disclosed such information herein. 69

70 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 41. INTEREST RATE RISK (Continued) Current Overdue Non-interest bearing Within 01 month From 01 to 03 months From 03 to 06 months From 06 to 12 months From 01 to 05 years Over 05 years Total Assets Cash on hand Balances with the SBV Placements with and loans to other credit institutions (*) Loans to customers (*) Investment securities (*) Long-term investments (*) Fixed assets Other assets (*) Total assets Liabilities Borrowings from the Government and the SBV Deposits and borrowings from other credit institutions Deposits from customers Derivative financial instruments and other financial liabilities(*) Grants, trusted funds and borrowings at risk of the credit institution Valuable papers issued Other liabilities (*) Total liabilities Balance sheet net interest gap Off-balance sheet commitments affecting sensitivity with assets and liabilities interest rate - 892, , ,939, ,939,956 4,634-8,758,748 2,963, , , ,356, ,461-25,918,154 73,781,949 53,574 39,775 17,834 12, ,621, , , , ,431 1,139,313 15,417,251 14,067,726 32,649, , ,731-1,454, ,454,298-6,213, ,213, ,095 9,757,775 45,766,906 76,945,501 1,387,005 1,279,088 15,435,085 14,080, ,453, ,022,688 80,668 80,852 79,918 53,544 13,849 1,331, ,917,323 2,265,390 1,365 4,701 1,297,163 52,916 13,538, ,439,141 24,054,218 19,533,327 20,930,884 7,317, ,275,377 49,120 49, ,121,250-1,121, ,740, , ,157,131-3,577, ,577,126-3,626,246 67,397,152 26,400,276 19,615,544 22,756,214 10,305,415 3,967, ,050, ,095 6,131,529 (21,612,246) 50,545,225 (18,228,539) (21,477,153) 5,129,670 10,112,708 11,403, Total net interest rate gap 802,095 6,131,529 (21,612,246) 50,545,225 (18,228,539) (21,477,153) 5,129,670 10,112,708 11,403,289 (*) Excluding risk provision. 70

71 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 42. CREDIT RISK Credit risk to the Bank derives from lending, investing and granting guarantees to customers or third parties in which the Bank acts as an intermediary. Credit risk arises when counterparties lose their ability to pay debt and are monitored continually. To manage the credit risk level, the Bank is attempting to transact only with counterparties who have high credit rating and require collateral if appropriate. Credit risk to the Bank mainly derives from lending and advances to customers. The credit risk level is shown on the carrying value of the assets as at the balance sheet. In addition, the Bank also faces credit risk in the form of offbalance sheet commitments to extend credit and guarantees. The concentration of credit risk (on or off-balance sheet) rising from financial instruments accompanies groups of partners in which members have similar economic characteristics that would cause the ability of the groups to fulfil their obligations to be affected if there are fluctuations in economic conditions or other conditions. The main concentration of credit risk is from various areas and types of customers regarding to investments, loans and advances, credit commitments and guarantees granted by the Bank. Credit risk of the Bank is focused on certain number of economic sectors. The Bank controls and manages risks by setting policies and procedures, including the credit risk management and operation policy of ALCO, Legislation, Risk Management & AML Council and Headquarters Credit Council. The Bank classifies its loans and advances to customers and other credit institutions based on Circular 02 and Circular 09, through which the Bank could regularly assess risks of doubtful debts, non-performing loans, and propose appropriate solutions. The Bank manages and controls credit risk by setting policies and issuing regulations regarding to the management of credit risk, creating credit process, reviewing credit risk, building credit rating system, loans classifying and decentralising credit. Financial assets overdue but not impaired The Bank s overdue financial assets that are not impaired include overdue loans with no provision required under Vietnamese Accounting Standards, Accounting Regime applicable to credit institutions in Vietnam and legal regulations relating to financial reporting ( VAS ). The aging of such financial assets is presented below: Overdue Within 90 days days days Over 360 days Loans to customers 95,657 1, ,876 The Bank is currently holding collateral in the forms of real estate, movable assets, valuable papers and others in kind for the above financial assets. However, the Bank has not been able to determine the fair value of such assets due to the lack of specific guidance and necessary market information. For the purpose of determining whether the assets are impaired and any provision is needed under VAS, these assets value are measured in accordance with Circular 02 and Circular

72 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 43. LIQUIDITY RISK Liquidity risk is the risk that results to the Bank s losses and/or failing to meet its payment obligation when the Bank cannot mobilise sufficient liquid capital at appropriate costs and/or cannot sell assets at fair value and/or the Bank has to mobilise funds at high costs to meet its payment obligations at a point of time. Liquidity risk arises due to: unmatching of maturity terms of assets and maturity terms of liabilities, the sensitivity of financial assets to changes in interest rates that leads the Bank unable to meet its payment obligation. The maturity term of assets and liabilities represents the remaining period from the balance sheet date to the maturity date agreed in the contracts or in terms of issuance. The following assumptions and conditions have been adopted in the analysis of the Bank s maturity relating to its assets and liabilities: - Balance with the State Bank of Vietnam is considered current including the required reserve, which is determined upon the composition and maturity of the Bank s customer deposits. - The maturity term of investment securities is based on the contractual maturity date of each type of securities. - The maturity term of deposits with other credit institutions and loans to customers is based on the contractual maturity date. The actual settlement date sometimes varies contractual maturity date when the contract is extended. In addition, loans to customers are represented by the residual value after deducting risk provision. - The maturity term of equity investment is considered to be over five years as equity investments have indefinite maturity. - The maturity term of deposits, loans from other credit institutions and deposits from customers are determined on the nature of these amounts or maturity date. For demand deposits from business entities and the grants, trusted funds and borrowings at risk of the credit institution, there is an assumption that a certain volume is maintained in the next term. - The maturity term of Vostro accounts and current accounts which are settled upon customers demand are considered to be current. The maturity term of term borrowings and deposits is based on their contractual maturity dates. In practice, such items may be rolled over and maintained for longer period. - The maturity term of fixed assets is determined based on their remaining useful lives. The table below shows the analysis of assets and liabilities of the Bank by terms of maturity based on the remaining period from the balance sheet date to the maturity date. In fact, the settlement date of financial assets and liabilities could be different according to oral agreements or amendments to contracts if any. The data in the Liquidity Risk Table as at 31 December 2017 shows that the Bank net liquidity within one year is quite limited. This is a common situation of commercial banks in Vietnam. In fact, the Bank still maintains an appropriate rate of short-term funds utilisation for medium and long-term loans within the limit required by the State Bank of Vietnam. 72

73 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 43. LIQUIDITY RISK (Continued) Overdue Current Within 3 months Over 3 months Within 1 month From 01 to 03 months From 3 to 12 months From 1 to 5 years Over 5 years Total Assets Cash on hand Balances with the State Bank of Vietnam Placements with and loans to other credit institutions (*) Derivative financial instruments and other financial assets (*) Loans to customers (*) Investment securities (*) Long-term investments (*) Fixed assets Other assets (*) Total assets Liabilities Borrowings from the Government and the SBV Deposits and borrowings from other credit institutions Deposits from customers Derivative financial instruments and other financial liabilities Grants, trusted funds and borrowings at risk of the credit institution Valuable papers issued Other liabilities (*) Total liabilities Net liquidity difference , , ,939, ,939,956-4,634 8,758,748 2,963, , ,356, , ,407 1,682,167 8,265,054 16,104,298 51,328,371 22,443, ,621, ,022, ,112 1,942,744 15,417,251 14,067,726 32,649, , , ,454, ,454,298-6,213, ,213, , ,041 31,288,694 11,428,606 18,677,042 66,745,622 36,511, ,453, ,022,688 80, ,770 53,544 13,849 1,331, ,917,323 2,265,390 6,066 1,297,163 52,916 13,538, ,439,141 24,054,218 40,464,211 7,317, ,275, , , ,121,250-1,121, ,740, ,393 3,900,000 6,157, ,577, ,577, ,005,398 26,400,276 42,371,785 10,305,415 3,967, ,050, , ,041 (39,716,704) (14,971,670) (23,694,743) 56,440,207 32,544,104 11,403,289 (*) Excluding risk provision. 73

74 NOTES TO THE SUMMARY FINANCIAL STATEMENTS ( Continued) FORM B 05/TCTD 44. EXCHANGE RATES OF SOME FOREIGN CURRENCIES AT THE END OF THE YEAR USD EUR GBP CHF JPY SGD CAD AUD HKD VND VND 22,425 22,159 27,119 23,939 30,522 28,087 23,214 22, ,976 15,722 18,080 16,949 17,705 16,422 2,05 2, SUBSEQUENT EVENTS There is no event subsequent to the balance sheet date till the date of issue of these financial statement that might require an adjustment to or disclosure In the financial statements. 46. COMPARATIVE FIGURES Comparative figures are the figures of the Bank s audited financial statements for the year ended 31 December Preparer Approver Nguyen Thi Gam Chief Accountant Pham Doan Son General Director 26 March