Vietnam Bank for Industry and Trade

Transcription

1 NGÂN HÀNG CÔNG THƯƠNG VIỆT NAM Vietnam Bank for Industry and Trade BÁO CÁO THƯỜNG NIÊN ANNUAL REPORT

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3 Corporate Profile Financial Highlights Message from Chairman of The Board of Directors Performance in Fund Mobilization Loans to the Economy CONTENT Investments Joint-ventures and Capital Contribution Activities Subsidiaries Banking Service Development International Banking Activities Social Activities and Equitization Process Business Plan for Brand Identity Financial Statements Independent Auditors Report Consolidated Balance Sheet Consolidated Income Statement Consolidated Statement of Cash Flows Interpretation on Financial Reports Organization Chart Nationwide Network 38 44

4 Improving the Values of Life

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6 4 s Head Office Corporate Profile Vietnam Bank for Industry and Trade (formerly Industrial and Commercial Bank of Vietnam Incombank) was established in 1988, on its separation from the State Bank of Vietnam. is one of the four largest commercial banks in Vietnam and is ranked as one of the 23 special state-owned corporations.

7 s extensive network includes 3 Main Transaction Centers (in Hanoi and Ho Chi Minh City), 138 branches, 185 transaction offices, 428 savings bureaus, 750 ATMs, a Human Resource Development and Training Center (in Hanoi) and an Information Technology Center (in Hanoi). subsidiaries are Leasing Company, Securities Limited Company, Asia Insurance Company and Real Estate and Financial Investment Company. is a co-founder and major shareholder of Indovina Bank and Vietnam National Financial Switching JSC (Banknet). manages correspondent banking relationships with over 850 banks worldwide and thus can send authenticated SWIFT messages to more than 19,000 banks and their branches globally. provides a wide range of banking and financial products and services including deposits and savings, local and international payments, loans, guarantees and counter-guarantees, trade finance, remittances, issuance and payment services for domestic and international cards, travelers checques, foreign exchange, securities trading, insurance and financial leasing and etc. is the full member of: The Asian Bankers Association (ABA) The ASEAN Bankers Association Vietnam Bankers Association (VNBA) Society for Worldwide Inter-bank Financial Telecommunication (SWIFT) Visa/ Master Services Association Vietnam Chamber of Commerce and Industry (VCCI) APEC Financial Institutions dealing with Small and Medium-Sized Enterprises Vietnam Association of Small and Medium Enterprises 5 Financial Highlights (as of 31 December) in million VND Total assets 94,979,062 98,601, ,765, ,442, ,112,971 Total loans and investments 83,539,096 90,186, ,405, ,088, ,860,348 Total loans 61,751,878 69,238,983 74,632,271 80,152, ,190,640 Total mobilized funds 89,680,881 92,530, ,605, ,625, ,459,336 Deposits from customers 70,079,035 72,258,562 84,387,013 99,684, ,364,837 Total equity 3,921,638 4,593,153 4,999,839 5,637,625 10,646,529 After-tax profit 233, , , ,800 1,149,442 Return on Average Assets (ROAA) 0.26% 0.29% 0.39% 0.48% 0.76% Return on Average Equity (ROAE) 6.81% 6.50% 8.82% 11.33% 14.12% Capital Adequacy Ratio (CAR) 6.08% 6.30% 6.07% 5.18% 11.62%

8 6 Message from Chairman of The Board of Directors

9 7 One year after WTO entry, Vietnam s economy recorded substantial gains in most sectors in 2007, with GDP growth of 8.48% - the highest growth rate over the past 10 years. The confidence and expectations of both local and foreign investors in Vietnam s economy increased, as shown by the strong growth in investment capital, while FDI of USD 20.3 billion was double the amount received in 2006; industrial output rose by 17.1%; export turnover rose by 22% reaching USD 48.4 billion; official foreign currency reserves increased significantly. A large number of major and high-tech projects were signed, creating opportunities for Vietnam to accelerate national industrialization and modernization. However, in addition to the above solid achievements, in 2007 Vietnam s economy had to deal with a high inflation rate of 12.3%, a large trade deficit and an unstable real estate market. The Banking industry was considered to have had a successful year in 2007, contributing strongly to GDP growth. With total loans and investments to the economy increasing by 38% compared to 2006, commercial banks continued to maintain their impressive business performance. In 2007, under the strict anti-inflation monetary policy imposed by the State Bank of Vietnam and in the context of fierce competition in the banking sector, Vietnam Bank for Industry and Trade () continued its sustainable development momentum thanks to the direction given by the Board of Directors, and the ongoing efforts of the Board of Management and all employees. Total assets went up 24%, total capital increased by 19%, asset quality improved demonstrably, with year end NPLs of 1.02% (compared to 1.38% at the beginning of the year). The branch network was strengthened and the focus was in investments in modern banking technology. Furthermore, banking operations and banking services recorded good growth rates; risk provision increased by 47% and total income increased by 85%. s good performance contributed positively to the socio-economic development and industrialization of the country. With the strategy of becoming a leading bank in the region, must transform itself into an efficient universal bank and offer a full products suite to corporate, commercial and retail customers, supported by the latest technology. This will require substantial and ongoing investments in human resources (training programs, including developing management/ leadership skills). However, this can only be achieved with sound financials and sustainable growth, sound principles to which s Management is firmly committed. In 2008, s management approved a business plan with the following targets: total capital to increase by 20%, total loans and investments to increase by 25%, NPLs below 2%, loan loss provision of VND 1,500 billion and fee income of VND 700 billion. The year 2008 will witness many important events among which the most significant will be the 20 th anniversary of Vietnam Bank for Industry and Trade s establishment, the official introduction of new brand identity and the new logo. The new brand name has already been registered and protected at Vietnam s National Office of Intellectual Property and will then be registered in 40 countries in the world. Furthermore, will launch its IPO in the local market, list on the stock exchanges and offer shares to strategic foreign investors. will make all the necessary preparations to become Financial Group and actively promote its regional and international integration. On this occasion, on behalf of the Board of Directors, Board of Management and staffs, we would like to express our sincere thanks for the valued guidance and support of the Government, the State Bank of Vietnam and other relative bodies and authorities and to our distinguished customers, domestic and foreign partners who greatly contributed to the success of in the year We hope that will continue to receive your kind assistance and cooperation. Dr. Pham Huy Hung Chairman The Board of Directors

10 8 Vietinbank s Performance in 2007

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12 10 FUND MOBILIZATION Thanks to the large network countrywide, diversified deposit products with multi benefits for depositors, the total mobilized funds increased year by year. In 2007, deposit interest rate increased to a very high level due to competition by a many newly-established joint-stock commercial banks anxious to gain market share and meet liquidity needs. This situation had an overall negative effect on banking business. has implemented many measures to maintain the stability of its deposit base and to increase mobilized funds, including actively adjusting interest rates and tenors, enhancing marketing activities, expanding funding channels, launching flexible funding products and improving customer service. VND 151,459 billion total mobilized funds As of 31 st December 2007, total mobilized funds were VND 151,459 billion, an increase of VND 24,835 billion, or 19.6% up on 2006 and accounted for a Funding Mix Development Borrowings & Other liabilities Capital & Reserves Deposits VND Trillion FY03 FY04 FY05 FY06 FY07 The Governor of the State Bank of Vietnam at s 20 th Anniversary

13 % market share of the whole banking system. Deposits in local currency were VND 127,947 billion, an increase of VND 26,067 billion, or 25.5% up on 2006 and accounted for 84.5% total mobilized funds. Deposits in foreign currency were VND 23,512 billion equivalent, a decrease of VND 1,233 billion, or 5%. Deposits from economic entities reached VND 55,083 billion, accounting for 36.4% of total mobilized funds and increased by 35.5% as compared to 2006, in which deposits from enterprises were VND 28,836 billion, accounting for 52.3% of total deposits from economic entities, 38.5% up on Deposits from businesses and enterprises increased due to the fact that state-owned enterprises gained a comparatively large surplus capital from equitization, which were not yet invested in business but deposited temporarily in banks. Deposits from state-owned enterprises were VND 43,802 billion, an increase of VND 8,883 billion (25.4%) as compared to 2006; deposits from private enterprises reached VND 8,486 billion, an increase of VND 4,081 billion (93%) compared to last year; deposits of foreign-invested enterprises were VND 2,795 billion, up by VND 1,476 billion compared to Term deposits from enterprises accounted for about 30%-35% over total mobilized funds. Deposits from residents reached VND 55,060 billion, accounting for 36.4% of total mobilized funds, increasing by 4.3% compared to Stable, long term savings reached VND 51,388 billion, accounted for 33.9% of total mobilized funds and increased by 15.2% compared to last year. Debt issuance at VND 3,672 billion, accounted for 2.4% of total mobilized funds, was down 55% compared to in VND billion Deposits from customers 116,365 99,683 (i) Deposits from economic entities: 55,083 40,643 Local currency 41,368 36,544 (ii) Deposits from residents 55,060 52,773 Savings 51,388 44,595 Local currency 39,515 32,172 Debt issuance 3,672 8,178 Local currency 85 4,715 (iii) Deposits from others 6,222 6,267

14 12 Through better liability management, tenor structures were changed, with the holding of lower cost funds increasing. Demand deposits increased by 20.5% compared to 2006, time deposits increased by 13.6%, however, medium and long-term mobilized capital (more than 1 year), which accounted for 25.5% of total mobilized funds, decreased by 0.7% compared to In 2007, was successful in offering two issuances of long-term certificate of deposits and notes. in VND billion Demand deposits 29,354 24,342 Local currency 26,095 22,000 Time deposits (including debt issuance) 83,300 73,338 Local currency 65,758 56,282 With a reasonable growth rate and capital structure, the diversified mobilization products of proved to be suitable to depositors needs and meet the increasing demands of the market. LOANS TO THE ECONOMY Loans to the economy as at 31 st December 2007 were VND billion, rose by VND 22,039 billion, representing an increase of 27.5% compared to To-date, s market share accounted for 10.5% of the banking industry. Loans in VND made up 82.5% or VND 84,308 billion of total loans, and increased by 26%. Loans in foreign currencies were the equivalent of VND 17,883 billion, increased by VND 4,658 billion or 35.2%. Medium and long-term loans accounted for 38.9% of total loans. in VND billion Short-term loans 60,529 47,329 In VND 51,466 40,857 Medium-long term loans 39,707 31,388 In VND 30,998 24,776 Financial Leasing (VND) Loans to international credit program Other loans ,191 80,152 s Corporate Customer - Vietnam Petroleum Group

15 13 Loans to corporates accounted for 37.9%, loans to SMEs accounted for 41.8% and loans to individuals and households accounted for 20.3%. offered syndicated loans, with 10% of total loans to 84 key projects of importance to national economy. In 2007, acted as the arranger for two hydroelectricity projects: Song Tranh 2 project and Da Dang project with the amount of VND 1,860 billion (of which VND 850 billion was lent by ). also signed the loan agreement committing the bank to lend VND 5,000 billion to Son La hydroelectricity project. focused on financing major projects in the fields of oil and gas, coal, real estate, steel and mining to diversify the medium and long term loan portfolio. Being a state-owned bank that traditionally served large corporations and groups, has signed cooperation agreements with eight partners including Vietnam Cement Industry Corporation, Binh Minh Import-Export Production and Trade Company, Vietnam Coal and Mineral Corporation, Vietnam Posts and Telecommunication Group, Vietnam Petroleum Group, Vietnam Steel Corporation, Vietnam Northern Food Corporation, Vietnam Petrolimex Corporation. In 2007, paid special attention to expanding its market share of retail and SME banking. Three new credit programs to small and medium enterprises were implemented, which are JIBIC Phase 2, loans and guarantees to effective energy savings projects, and micro loans entrusted by the U.S. Save the Children. Total loans to SMEs from foreign organizations amounted to VND 1,000 billion. These types of loans not only provide financing but also non-financial services including training, consistency in project preparation, providing information, and audit services. These are good bases to attract more customers as well as create strong linkages for good customers with. Regarding individual customers, in 2007 developed a wide range of products such as advances against proceeds from the sale of securities on official stock exchanges, house loans and car loans. also signed agent contract with American International Assurance (AIA) to provide a creditinsurance combined product.

16 14 Credit quality has been improved and restructured to maintain effective and secure CAR (Capital Adequacy Ratio): - Ratio of Non-performing loans (group 3,4 and 5): 1.02% (against plan of less than 3%) - Ratio of loans with collateral: 72.67% (against plan of less than 75%) - Ratio of medium-long term loans: 38.9% (against plan of less than 40%) With the determination to enhance credit quality, has applied tight credit policies to reduce loans categorized as group 2 and recover nonperforming loans. classifies the loans portfolio in accordance with the regulation of the State Bank of Vietnam. Due to enhanced risk management, robust internal controls and effective resolution of bad debts over the past several years, s financial stiuation improved substantially, with gained a healthy status, thereby creating resources for better business performance. VND 12,841 billion Investments in the inter-bank market INVESTMENTS Vinasat I a Project financed by As a leading financial institution, has taken an active part in the government bonds market, supporting the liquidity of commercial banking system and maintaining stable solvency of in particular and the banking industry in general. Internal procedure for investment activities was updated, supplemented and adjusted to be in conformity with the model of a modern commercial bank. The investment portfolio in the money market and capital market which amounted to VND 51,669 billion, increased by 15% as compared to 2006 and accounted for 31.1% of total assets with the following structure:

17 15 Investments in the inter-bank market totaled VND 12,841 billion, a substantial reduction compared to 2006, as restructured its portfolio and shifted funds to investment in valuable papers to earn higher interest and benefit from a more stable income stream. Investment in securities were VND 38,144 billion, or a double the amount invested in 2006, mainly driven by increases in government bonds and bonds issued by other credit organizations. continued to support the payment needs of other commercial banks and at the same time fullly satisfied payment needs of the whole economy. By 31 December 2007, short-term investment in the interbank market amounted VND 12,841 billion, including VND 1,566 billion deposited with Vietnam Bank for Social Policy, in compliance with the regulations of the Government for the on-lending to customers under social policy programs aimed at hungder eradication and poverty alleviation initiated by the Government. also actively participated in open market operations together with the State Bank of Vietnam, and contributed significantly to the implementation of national monetary policy targets. Investment in securities saw a high growth rate in 2007, with investments being mainly in government bonds, treasury bills, and commercial bonds issued by reputable financial institutions. All securities held by have high liquidity and are easily convertible to cash, or serve as borrowing collateral when nessesary. Investment securities was a key instrument in managing the Bank s liquidity position. The strong growth rate of investments in securities reflected a shifting asset management strategy oriented to profitable asset portfolio diversification, increasing in risk free to low risk security investment, decreasing dependency on traditional credit activities, improving the efficent use of fund and supplementing secondary asset reserve for the liquidity purpose. As of 31 st December 2007, the outstanding balance reached VND 38,144 billion accounting for 73.8% of total investments. The securities portfolio has been diversified, details of which are as follow: Vietinbank No.11 in Ho Chi Minh City - Marketable securities valued at VND 32,353 billion, accounting for 84.8% of total investment in securities, increased by 2.7 times against 2006, and included government bonds, treasury bills, municipal bonds, VDB bonds, EVN bonds, bonds issued by other major corporation and enterprises in Vietnam.

18 16 - Held-to-maturity securities valued at VND 5,052 billion, decreased by 2.4% against last year as debt securities issued by other financial institutions became due. These securities included treasury bills, government special bonds, educational bonds, municipal bonds, notes and certificates of deposits issued by other financial institutions, bonds of irrigation work, Petro Vietnam bonds and bonds issued by major corporations and enterprises in Vietnam. VND 5,052 billion Held-to-maturity securities value is a major commercial bank with substantial investments in money and capital markets and has maintained its role as market maker, contributed actively in terms of liquidity support for the market and enhanced the development of the bond market in Viet Nam. Investment in valuable papers is an important option for re-arranging the Bank s asset mix, enhancing both liquidity management and portfolio diversification. Simultaneously, through investment in securities, and in particular government securities, has contributed to the State s plans for the development of socio-economic industries. JOINT-VENTURE AND CAPITAL CONTRIBUTION ACTIVITIES joint-venture and capital contributions increased by VND 174 billion resulting in total capital contribution and share purchasing of VND 684 billion, an increase of 34.1% as compared to Due to credit institutions need to increase chartered capital to meet anticipated 2007 customer loan demands, contributed to the capital increase of Indovina joint venture bank, Saigon Bank and Gia Dinh Joint-Stock Bank. On the other hand decided to divest its holdings in the jointventure Vietnam International Leasing Company (VILC). Additionally, made strategic investments in equitized enterprises such as Ha Tien Cement Company, Phuoc Hoa Rubber Company and participated in the establishment of UDIC, Vietnam s Corporate Customer - Vietnam National Shipping Lines (Vinalines)

19 17 Private Credit Information Company, Vietnam Health Care Financial Investment Joint-stock Company. initiated planning on projects on financial consultancy, fund management, debt sales, realestate, gold investment and trading, etc. VND 684 billion total capital contribution and share purchasing SUBSIDIARIES Securities Company Securities Company is limited company, wholly owned by with equity of VND 300 billion. The company s main services are brokerage, trading, underwriting, portfolio management and securities investment consultancy. In 2007, the Company completed the necessary conditions for equitization. The Company also maintained good performance and high growth in its business activities. In 2007, there were 10,117 new accounts opened, increasing the total number of investor accounts to 26,000, accounting for 8.5% of total investor accounts in the market. Securities Company established more than 10 agencies in various provinces. Income from brokerage increased sharply as compared with 2006 and amounted to VND 39,849 billion and gained market share of 2.44% of total brokerage activities. In 2007, the Company continued its focus on consultancy service for equitization of companies such as: Electricity Company No. 3, Tay Ninh Electricity Company, Hai Duong Electricity Company and etc., supported the public offering of the government s stake of Pha Lai Thermal Power Company, Ninh Binh Thermal Power Company. The total value of consultancy contracts in 2007 amounted to VND 4.2 billion. Financial consultancy services for public offerings, private placements, corporate valuations and securities auctions were well received and appreciated by large corporates such as Vietnam Electricity Corporation, Vigracera Corporation and Vietnam Livestock Breeding Company.

20 18 The Company successful met the financial targets set by the Board of Management. Income before tax was VND 98 billion, up 204.5% on 2007 s plan. ROAE was 23%. Vietinbank Leasing Company Leasing Company was established as a Leasing Company with a separate legal status and independent accounting under Decision No. 53/1998/ QĐ-NHNN5 issued by the Governor of the State Bank of Vietnam dated 26 th January In 2007, increased the company s chartered capital from VND 105 billion to VND 300 billion. Total assets as at 31 st December 2007 reached VND 839 billion, were up 20.5% in comparison with VND 18.3 billion Pre-tax profit Up to 31 st December 2007, total working capital was VND 839 billion. This was 105% against plan and up 21% compared to the previous year. Total loans and investments of VND 841 billion, again was 105% against plan and an increase of 21% as compared with Due to strong internal controls, non-performing loans decreased and accounted for 4.9% of total loans and investments at year end As at 31 st December 2007, the leasing balance to nonstate owned SMEs was VND 760 billion, and made up 90.3% of the total. Total finished financial leasing contracts were 220, 49 more than in Total value of liquidated leasing assets was over VND 328 billion, an increase of VND 61.8 billion over Pre-tax profit which reached VND 18.3 billion, was up 43% year on year and equivalent to 102% against plan. Interest income from financial leasing accounted for 99% of total income. Year end 2007 provisions were VND 15.5 billion of which general provisions were VND 2.3 billion. Leasing Company is required by law, contributed VND 5.1 billion to the state budget. General Secretary Nong Duc Manh visits

21 19 BANKING SERVICE DEVELOPMENT 1. Domestic Money Transfer With the advantage of a nationwide network, domestic money transfers continued to maintain high growth. The payment volume doubled as compared to 2006, amounting to 4.8 million transactions totaling VND 2,117 trillion. Bilateral payments with other financial institutions were 1.1 million transactions with a volume of VND 234,000 billion, up 37% against Interbank e-payment created 1.2 million transactions totaling VND 1.1 million, an increase of 28.3% against By year-end of 2007, signed an agreement with the State Treasury on the implementation of tax collection through s network and ATMs, which will increase the effectiveness of tax collection and generate funding for. 2. Import-Export Payment In a fiercely competitive environment, maintained its number two position among Vietnamese commercial banks in terms of trade finance volume, accounting for 7.9% of the country s import-export turnover. The total trade finance volume amounted to more than USD 7.1 billion, an increase of 35% against Overseas guarantee issuance increased by 149%, confirming s international reputation as a major trade bank. Cross-border payments with Chinese banks grew rapidly, increasing by 58% against 2006 and totaled RMB 700 million. was the first bank to apply e-banking in cross-border payments. In 2007, installed the technology and trained the personnel to establish Vietinbank Main Operation Center III with the aim of centralizing all trade finance transactions. Dr. Pham Huy Hung at the Vietnam Top Entrepreneurs Award Ceremony

22 20 IMPORT - EXPORT VALUE THROUGH VIETINBANK FROM Import Export 4,324 3,212 3,436 3,354 3,371 2,527 2,439 2,053 1,907 1,363 In USD million Card Service and E-banking Card issuance turnover continued to increase. By the end of the year, the total number of issued cards was 1.2 million ATMs cards and 5,000 credit cards. New functionalities and services were added to cards like savings accounts from ATM, mobile phone payment VNPay, S-phone payment, electric bill payment to EVN, train ticket payment for Vietnam Railway Corporation (VNR) through Banknet system, ATM can be used in other banks ATMs such as BIDV, Sacombank, Agribank, ACB, Dong A Bank and etc. s website has seen substantial improvements. With more updated information available, there are more than 3,000 visitors to the web site daily and the website is considered as the 2 nd most visited webpage among Vietnamese banks. General Secretary Nong Duc Manh visits

23 21 4. Overseas Remittance and Traveler s Cheque During 2007, overseas remittance gained considerable achievements. The overseas remittance payment network has been implemented in almost every transaction office, transaction point and saving bureaus. Overseas remittance transactions are processed centrally in Head Office, customer s accounts are credited as soon as Head Office receives and processes the transaction. Nonaccount holders can receive their money at any branch or transaction point that is most convenient. The volume of overseas remittances in 2007 reached USD750 million, a 67% increase over 2006, giving the Bank a 15% market share of the official overseas remittance market in Vietnam. The application of a new software solution for overseas remittance service has created potential for cooperation with wide range of foreign partners such as correspondent banks and remittance companies. Traveler s cheques payments in 2007 continued to deliver positive results and contributed to the diversification of the services provided to international tourists. In 2007, the volume of cheque collection reached USD 2.9 million, up 26% against implemented three operations for cheque collection, blank cheque selling and travelers cheque encashing. The implementation of travelers cheque authorization online for branches that have high revenues from cheques collection and which will authorize cheque 100%, contributed to the lower risks in cheque payment. In 2007, opened a new EUR cheque collection service for branches in the network, which contributed to service diversification and has the potential to be developed as a good fee income stream.

24 22 INTERNATIONAL BANKING ACTIVITIES - The year 2007 is considered a milestone as it marked the 15 th anniversary of the start of international banking activities. In 2007, continued to expand the correspondent banking network and now has more than 850 banks in 80 countries and terrritories. Cooperation with foreign banks has been developed across wide geographies, with very many long standing in depth relationships. - continues to actively explore foreign markets to meet growing customers demands; evaluates the financial, reputation, domestic and international reach, service quality and competitive advantages of foreign banks both to better serve our Vietnamese customers and to facilitate international entities in their business with Vietnam. - has always been active with correspondent banks in information exchange on markets and customers, so that reliable sources of information on foreign customers and partners can help to avoid risks and protect the interests of both customers and banks. - In the end of 2007, considered it a special honor to be the sponsor of and thereby contributed to the success of the 37 th Asean Banking Association Council Conference in Hanoi hosted by Vietinbank Banks Association (VNBA). Participating at this prestigious conference were 130 delegates from the ten Asean Banking Associations. made great efforts to ensure the success of the conference aimed at enhancing cooperation and development of member banks of Asean nations. The success of the conference will be measured by the heightened position of ABA, the favorable impression made on visiting delegates by Vietnam the country, the people, the banking sector, the VNBA and.

25 Social Activities Strong growth, prestige and efficiency in business performance have been affirmed by public polls; in 2007 was awarded five honorable prizes: Top Ten Vietnam Brand, Vietnam Golden Star, ISO Golden Cup, Brand Golden Cup, and Business Star Prize. On November 2007, successfully held Respecting ceremony for typical women receiving 120 typical women delegates in the banking system and was honored to welcome Vietnamese Deputy President, Mrs. Nguyen Thi Doan. Many sporting events and other activities were hosted with customers and institutions to promote friendship and build relationships. charitable activities have a very special meaning and include the continuing support to 160 Vietnamese Heroic mothers; constructing more than 1000 charity houses, in which 100 charity houses were built in 2007; supporting the construction and establishment of Quang Tri Ancient Wall bell-tower and the upgrade to Quang Tri Cemetery; building 33 kindergartens; present 600 wheel chairs and 600 scholarships in 20 Northern provinces, via Children Protection Fund to help the fees for cardiac operation, building and running a recovery center for children of difficult situations, and etc. actively contributes to the public development, fully implements social works and returns to the community gifts of human culture and real social meaning. 23 Music Festival to Celebrate s 20 th Anniversary

26 24 SMS Banking Service Launching Ceremony Signing Ceremony of Financial Advisory Contract for Equitization between and JP Morgan Securities Asia Pacific Limited Vietinbank and Equitization Process Government Ownership Likely trend over the next 5 years (%) 2012 Under the direct leadership from the Government, set up an Equitization Board to prepare for the implementation of equitization. The Board consists of senior leaders from and representatives from the Ministry of Finance, State Bank of Vietnam, Ministry of Jurisdiction, Ministry of Planning and Investment and Investment Bureau. From the bidding process, has selected one of the leading investment banks as financial consultant for the equitization process. The preparation process was taken with prompt action in 2007 with guidance from the Government and the State Bank of Vietnam. Overall, as the roadmap for equitization was built, nearly VND 4,000 billion was injected by the Government to s chartered capital. Through the bidding process, JP Morgan Securities (Asia) was selected as financial consultancy for the equitization. The Equitization Plan was prepared for the Government s approval and the necessary steps were taken to equitized subsidiaries together with a plan to look for strategic partners to set up new subsidiaries in banking and finance under the form of joint-stock company or joint venture.

27 Business Plan for The Asian Bankers Magazine visits In 2008, set up major business targets for the year as follows: 1. Business targets for the year 2008 Total mobilized funds: from 15% to 20% Total loans and investments: from 15% to 20%. Non-performing loans (Group 3,4 and 5): under 5%/total loans Medium and long term loans: max. 40%/total loans Secured loans 75%/total loans Loans to state-owned enterprises: 32%/Total loans Provisioning in accordance with clause 7, Regulation 493/2005/QD-NHNN dated 22 April 2005 from State Bank of Vietnam After tax profit VND 800 billion Non-interest income: VND 450 billion 2. Orientation Continuing to restructure overall banking operation and the processes of modernization, equitization, standardization of business procedures, management and human resources, ensuring the transparency and soundness of financial conditions; Strong growth in terms of equity, loans and investments, fund mobilization and market share on the basis of prudence, efficiency and sustainability; Enhancing the organizational structure, branch network, market and customers development; Ensuring financial prudence and safety in daily operations; Improving customer service, enhancing corporate culture, consolidating brand identity to benefit the whole network and clients.

28 26 Vietinbank Brand Identity On 14 April 2008, Vietnam Bank for Industry and Trade officially launched its new brandname to replace its former brandname Incombank. Legal name Ngân Hàng Công Thương Việt Nam English full name Vietnam Bank for Industry and Trade Brandname Slogan Improving the Values of Life Logo

29 27 s New Brand Identity Lauching Ceremony Logo is a special design with the letters and a symbol of a rising Earth embracing an ancient coin. The Brand logotype expresses the harmonized union of Heaven and Earth, Yin and Yang (two complementary principles of Chinese philosophy) as a stable and perfect composition. The overall image of the symbol expresses a brightening new dawn with a rising sun and orbit movement, representing the motions and harmonized continuation of Heaven and Earth in the universe. Vietinbank also brings to mind implications relating to Tin, which means trust in Vietnamese, one of the most important factors in banking and finance business. The brand positioning phrase Improving the Values of Life was developed to place emphasis on Efficiency, which is one of goals, reflecting the bank s dedication to support and assure customers of success as well as our efforts to build up a beautiful and meaningful life.

30 28 Financial Statements

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32 30 Independent Auditors Report INDEPENDENT AUDITORS REPORT on the consolidated financial statements of Vietnam Bank for Industry and Trade and its subsidiaries as at and for the year ended 31 December 2007 To: The Board of Directors and Board of Management of Vietnam Bank for Industry and Trade We have audited the accompanying consolidated balance sheet of Vietnam Bank for Industry and Trade and its subsidiaries ( the Bank ) as at 31 December 2007, the related consolidated income statement, consolidated statement of retained earnings, and consolidated statement of cash flows for the year then ended and the notes thereto ( the consolidated financial statements ), as set out on pages 2 to 68. These consolidated financial statements are the responsibility of the Bank s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. Basis of Opinion We conducted our audit in accordance with the Vietnamese and International Standards on Auditing applicable in Vietnam. These standards require that we plan and perform the audit to obtain reasonable assurance to determine whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion. Opinion In our opinion, the consolidated financial statements give a true and fair view of the financial position of the Bank as at 31 December 2007 and of the results of its operations and its cash flows for the year then ended in accordance with the Vietnamese Accounting Standards and System for Credit Institutions and comply with other relevant financial and accounting regulations stipulated by the State Bank of Vietnam and the Ministry of Finance. Michael Yu Lim Deputy General Director Registered Auditor Certificate No. 0629/KTV Tran Thi Thanh Thuy Auditor in-charge Registered Auditor Certificate No. 0815/KTV Hanoi, Vietnam 14 April 2008

33 Consolidated Balance Sheet as at 31 December VNDm 2006 restated VNDm ASSETS Cash and cash equivalents 1,743,604 1,436,603 Balances with the State Bank of Vietnam 8,496,135 5,620,312 Placements with and loans to other banks 12,841,040 26,229,341 Current accounts with other banks 4,829,941 4,731,685 Term deposits with and loans to other banks 8,011,099 21,497,656 Provision for placements with and loans to other banks - - Trading securities 739, ,393 Trading securities 742, ,374 Less: provision for impairment (3,075) (2,981) Derivative financial instruments and other financial assets Loans and advances to customers 100,482,233 80,142,030 Loans and advances to customers 102,190,640 80,152,334 Less provision for credit losses (1,708,407) (10,304) Investment securities 37,404,891 17,329,218 Securities available-for-sale 32,352,839 12,148,027 Securities held-to-maturity 5,052,052 5,181,191 Provision for impairment of investment securities - Long-term investments 684, ,211 Fixed assets 1,214,196 1,157,037 Property and equipment 996, ,888 Cost 2,238,996 1,958,849 Accumulated depreciation (1,242,325) (999,961) Intangible assets and land use rights 217, ,149 Cost 309, ,305 Accumulated amortization (92,117) (67,156) Other assets 2,507,095 2,150,375 TOTAL ASSETS 166,112, ,442,520

34 32 Consolidated Balance Sheet as at 31 December VNDm 2006 restated VNDm LIABILITIES Borrowings from the Ministry of Finance and the State Bank of 712, ,363 Vietnam Deposits and borrowings from other banks 5,428,856 4,923,742 Current accounts from other banks 1,263, ,792 Term deposits and borrowings from other banks 4,165,622 4,686,950 Customer deposits and other amounts due to customers 112,692,813 91,505,860 Debts issued and other borrowed funds 28,952,892 21,525,679 Valuable papers issued by the Bank 3,672,024 8,178,374 Derivative financial instruments 6 - Other liabilities 4,007,106 3,179,877 Accrued interest expenses 1,832,736 1,959,092 Other payables 2,013,942 1,220,785 Provision for contingent liabilities and commitments 160,428 - TOTAL LIABILITIES 155,466, ,804,895 OWNER S EQUITY Capital 7,972,180 3,974,521 Chartered capital 7,608,643 3,616,043 Capital to purchase fixed assets 297, ,006 Other capital 66,472 66,472 Reserves 2,420,702 1,544,414 Foreign exchange translation reserve 61,585 61,139 Retained earnings 192,062 57,551 TOTAL OWNER S EQUITY 10,646,529 5,637,625 TOTAL LIABILITIES AND OWNER S EQUITY 166,112, ,442,520 OFF-BALANCE SHEET ITEMS 2007 VNDm 2006 restated VNDm Contingencies Credit guarantees 75,402 46,717 Letters of credit commitments 13,995,644 8,897,617 Other guarantees 6,006,839 3,421,193 20,077,885 12,365,527

35 Consolidated Income Statement for the year ended 31 December VNDm 2006 restated VNDm OPERATING INCOME Interest and similar income 12,769,280 10,116,365 Interest and similar expenses (8,085,890) (6,571,160) NET INTEREST AND SIMILAR INCOME 4,683,390 3,545,205 Fees and commission income 437, ,447 Fees and commission expenses (102,909) (76,763) Net gain from fees and commission income 334, ,684 Net gain from dealing in foreign currencies 64,087 60,002 Net gain arising from trading securities 71,374 22,765 Net share of profit in associates and joint ventures and 88,247 64,638 dividend income Net other operating income 1,406, ,275 TOTAL OPERATING INCOME 6,648,680 4,571,569 OPERATING EXPENSES Payroll and other staff costs (1,619,189) (1,118,567) Depreciation and amortization charges (312,022) (302,987) Other operating expenses (834,816) (719,768) TOTAL OPERATING EXPENSES (2,766,027) (2,141,322) Net profit before provision for credit losses 3,882,653 2,430,247 Provision of credit losses (2,353,568) (1,600,256) PROFIT BEFORE TAX 1,529, ,991 Current enterprise income tax (379,643) (227,191) Deferred enterprise income tax - - Enterprise income tax (379,643) (227,191) NET PROFIT FOR THE YEAR 1,149, ,800

36 34 Consolidated Statement of Cash flows as at and for the year ended 31 December VNDm 2006 restated VNDm CASH FLOW FROM OPERATIONS Interest and similar income receipts 12,390,675 9,861,044 Interest and similar expense payments (8,212,246) (5,805,002) Fees and commission income receipts 334, ,684 Net gain from dealing in foreign currencies 64,087 60,002 Net gain arising from trading securities 71,374 22,765 Other operating income 61, ,833 Recovery from bad debts previously written-off 1,345,623 - Payment to employees and suppliers (2,454,005) (1,656,455) Taxation paid in the year (262,441) (217,495) Net cash flow from operating profit before changes in operating assets 3,339,026 3,136,376 and working capital Changes in operating assets: (34,191,639) (19,704,597) Decrease/(increase) in placements with and loans to other banks 8,272,339 (8,451,808) Increase in investment securities (19,987,437) (4,201,862) Increase in derivative financial assets instruments (258) - Increase in loans and advances to customers (22,038,306) (5,518,777) Bad debts written-off (495,037) (1,772,878) Increase in operating assets 57, ,728 Changes in operating liabilities: 25,376,689 17,953,697 Increase in borrowings from the MOF and the SBV (15,583,770) (1,963,649) Increase in term deposits and borrowings from other banks 505,114 2,356,843 Increase in customer deposits and other amounts due to customers 36,992,105 7,118,848 Increase in debts issued and other borrowed funds 7,427,213 2,328,988 (Decrease)/increase in valuable papers issued by the Bank (4,506,350) 8,177,547 Increase in derivatives financial instruments and other financial 6 - liabilities Increase in other liabilities 678,924 27,773 Reserves utilization in the year (136,553) (92,653) Net cash flows (used in)/from operating activities (5,475,924) 1,385,476 CASH FLOW FROM INVESTING ACTIVITIES Acquisition of fixed assets and construction in progress (409,276) (234,013) Proceeds from disposal of premises and equipment 4,920 38,188 Additional equity investments in associate and joint ventures (120,660) (80,505) Receipts from equity investment in other entities 21,757 Dividend income from other long-term investments 53,445 32,606 Net cash used in investing activities (449,814) (243,724) CASH FLOW FROM FINANCING ACTIVITY Increase in chartered capital during the year 3,992, ,555 Net cash flows from financing activities 3,992, ,555 Net (decrease)/increase in cash and cash equivalents (1,933,138) 1,252,307 Cash and cash equivalents at the beginning of the year 14,951,633 13,699,326 Cash and cash equivalents at the end of the year 13,018,495 14,951,633

37 Interpretation on Financial Reports ASSETS AND LIABILITIES STRUCTURE in VND billion I-Funding 166, ,363 1 Mobilized funds 151, , Deposits from customers 116,365 99, Loans from State Bank of Vietnam Loans and deposits from institutions 34,703 26,568 2 Shareholders equity 10,647 5,607 3 Accounts payables 4,007 3,132 II Use of funds 166, ,363 1-Balances at State Bank of Vietnam 10,240 7,057 2-Total loans and investments 153, , Loans and advances to customers 102,191 80, Investments 51,669 44,937 3 Fixed Assets 1,214 1,118 4 Other assets 2,507 2,099 5% 3% 71% 21% Free Income Investment Lending Others Total loans and advances to customers which rose 27.5% to VND 102,190 billion, for 61.5% (59.5% in 2006) of total assets. In 2007, restructured its loan portfolio, by exercising prudence in selecting customers and reducing the number of customers with weak financials. Thanks to prudence measures, NPL ratio was reduced. CONTRIBUTION TO TOTAL INCOME OF VIETINBANK ASSETS Total assets increased to VND 166,113 billion, or by 22.7% year on year. However, and most, important asset quality improved substantially. accounted for 10.5% of total banking assets in Vietnam, thus securing its position as one of largest banks of Vietnam in terms of total assets. In 2007, the asset structure shifted to improve asset quality, reduce risk, increase profitability and enhance liquidity. Total loans and investments at VND 153,860 billion, increased by 23% and accounted for 92.6% of total assets. short term placements in the interbank market declined in 2007 and made up 7.7% of total assets. In the early months of 2007, there was a surplus of capital in the market. However, as doubled its compulsory reserves and placed these funds as deposits with the State Bank, this reduced the amount of VND available to the market and to most commercial banks. This is shown by the 51% reduction in interbank placements as at 31 st December Investment in securities was 2.2 time higher than in 2006 and accounted for 22.5% of total assets. Investment in medium term and long-term valuable papers were favored as this helped restructure both the securities portfolio, and assets, to enhance liquidity, reduce risks and deliver earnings stability. Reserves and balances with the State Bank of Vietnam were VND 10,240 billion, or up by VND 3,183 billion

38 36 Interpretation on Financial Reports (continued) or 45%, with the rise attributed to the tight monetary policy of the State Bank of Vietnam which increased compulsory reserves. Reserves and balances with the central bank were equal to 6.8% of total mobilized capital and 6.2% of total assets (including cash, compulsory reserves and current accounts). Return on Avg Assets (ROA) LIQUIDITY MANAGEMENT Liquidity management to ensure a reasonable liquidity level is considered one of the most important tasks for. In 2007, solvency indicators reached the target set by management. Loans to deposits ratio as of December 31, 2007 was 87.8%, from which can be seen that main funding for loans to the economy are mainly customer deposits, considered a stable source of funding. Loans to total fund mobilization were kept stable at 67.5% (%) The ratio of liquid assets to total assets reached 31.1% compared to 30.7% recorded in Liquid assets are mostly securities with high liquidity, or valuable papers which can readily sold such as treasury bills, State Bank bills, government bonds, inter-bank short term deposits, cash and deposits at the State Bank EQUITY LIABILITIES liabilities as of 31 st December 2007 reached VND 155,466 billion, an increase of 19.8% over Total mobilized capital of VND 151,459 billion, rose by 19.6% and accounted for 97.4% of total liabilities. Customers deposits totaled VND 116,365 billion, which accounted for the majority of liabilities (74.8%), increased by 16.7% compared to Deposits and loans from financial institutions increased by 30.6% to VND 34,703 billion and accounted for 22.3% total liabilities., as a wholesale commercial bank, maintained its important role and ability as market maker in the interbank market. Borrowings from the State Bank of Vietnam included loans to overcome consequences of floods, loans to compensate frozen debts and borrowings for debt repayment and, finally, loans to implement the banking modernization project and payment system. These borrowings accounted for a small percentage (0.25%) of liabilities and care trending downward. Payables accounted for 2.6% of liabilities. equity recorded significant increases. As of 31 st December 2007, shareholders equity reached VND10,647 billion, an increase of VND 5,009 billion as compared to To improve the Bank s financial capabilities to expand business, to successfully implement the equitization program and to fully integrate in regional and international markets, in 2007 the Government injected VND 3,920 billion, thereby increasing s chartered capital by two fold to VND 7,609 billion. The capital increase had positive impacts on s operations, enhancing investment in banking infrastructure and modernization herby strengthening the balance sheet. The capital adequacy ratio (CAR) improved significantly, from the 5.18% recorded in 2006 to 11.62% as of 31st December 2007, or 3.62% higher than the minimum requirement of 8%. The increase in shareholders equity positively impacted performance, being reflected by the year-on-year rise in ROA from 0.45% as of 31st December 2006 to 0.69% as of 31 st December 2007; ROE also also rose, from 10.7% to 10.8% respectively.

39 Interpretation on Financial Reports (continued) 37 INCOME - EXPENSE Income before provision amounted to VND 3, million and was up by 60% as compared to Loan loss provision of VND 2,353,568 million, increased by 47% compared to Net income was VND 1,149,442 million, an increase of 91% as compared to the VND 546,642 million reported in The main contribution to the growth in pre-tax profits was net interest income of VND 1,138,185 million, which recorded a 32% increase. A second important contributor was other operating income, which increased by 132% to VND 800,560 million compared to These could be broken down as: - Net interest income of VND 4,683,390 million, accounted for 70% total net operating income, of which interest and similar income amounted VND 12,769,280 million, 73% of which was interest income from loans, 15% from securities investments (which was equivalent to VND 1,977,649 million). Interest expenses and Return on Avg Equity (ROE) equivalent were VND 8,085,890 million, of which interest paid on deposits accounted for 82% and interest on borrowings accounted for 10% of total interest expense. - Other operating income of VND 1,406,835 million accounted for 71% of total non-interest income, being mainly recovery of written-off NPLs which totaled VND 1,345,623 million. - Commissions and fee income amounted to VND 334,747 million, and accounted for 17% of noninterest income. The 2007 interest expenses increased by 23%. Deposit interest expenses rose by 19% and accounted for 82% total interest expenses. Debenture interest expenses were 7% while interest on borrowings was 10% of total interest expenses. Together with the increase in total income and income before tax, operating expenses (included salaries, depreciation and other operating expenses) recorded a similar trend. The changes of other operating expenses and salaries were the major factors contributing to the change of total operating expenses. Of which, staff salaries were up 45% to VND 500,662 million compared to 2006; depreciation increased by 3% while other operating expenses grew by 16% compared to the previous year. These rises were totally in line with the business expansion reported by in (%) In short, significant growth in income, expenses and profits could be seen in This is the result of ongoing efforts of the Bank to improve credit quality, reduce non-performing loans, diversify services and products and reinforce debt recovery from collateral of debts written-off

40 38 Organization Chart Credit Committee Business Group Banking Service Group Risk Management Group Corporate Banking Department SMEs Banking Department Consumer Banking Department Financial Institutions Department Corporate Service Department Dealing Room Card Service Center Main Operation Center E-Banking Department Cash Payment Department VND Remittance Department Overseas Remittance Department Credit and Investment Risk Management Department Credit and Investment Policy Department Market & Operational Risk Management Department NPLs Management Department Board of Internal Controllers Investment Department

41 39 The Board of Directors & Board of Management of Board of Directors Supervisory Board General Director - CEO Deputy General Directors & Chief Accountant Supporting Group IT Group General Director s Office Planning and ALCO Supporting Department MIS Department Financial Accounting Management Department Accounting Policy Department Cash and Vault Management Department IT Center Command Center & Helpdesk Legal Department Back Office ISO Department Administraion Department Human Resources Department Labour and Salary Management Department Human Resources Training & Development Center Captital Construction and Purchasing Department Emulation Department Information Publicity Department Call Center

42 40 Hội đồng quản trị The Board of Directors Dr. PHẠM XUÂN LẬP Ủy viên HĐQT - Tổng giám đốc Member - Chief Executive Officer Dr. PHẠM THỊ HOÀNG TÂM Ủy viên HĐQT Member Dr. PHẠM HUY HÙNG Chủ tịch HĐQT Chairman

43 41 Dr. ĐỖ THỊ THỦY Ủy viên HĐQT Member Mr. TRẦN XUÂN CHÂU Ủy viên HĐQT Member Ms. NGUYỄN HỒNG VÂN Ủy viên HĐQT Member

44 42 Ban Điều hành The Board of Management 1. Dr. PHẠM XUÂN LẬP Tổng giám đốc Chief Executive Officer (General Director) 3 2. Dr. NGUYỄN VĂN THẠNH Phó Tổng giám đốc Deputy General Director 3. Mr. NGUYỄN VIẾT MẠNH Phó Tổng giám đốc Deputy General Director 4. Mr. VÕ TẤN THÀNH Phó Tổng giám đốc Deputy General Director 1 4 2

45 Ms. NGUYỄN PHƯƠNG LY Phó Tổng giám đốc Deputy General Director 6. Mr. NGUYỄN VĂN DU Phó Tổng giám đốc Deputy General Director 7. Mr. PHẠM ANH TUẤN Phó Tổng giám đốc Deputy General Director 8. Ms. BÙI NHƯ Ý Phó Tổng giám đốc Deputy General Director 9 9. Mr. NGUYỄN VĂN CHUNG Kế toán trưởng Chief Accountant

46 44 Vietinbank Nationwide Network

47 45

48 46 Head Office 108 Tran Hung Dao Street, Hoan Kiem District, Hanoi, Vietnam Tel: / SWIFT CODE: ICBV VN VX Representative Office 79 Ham Nghi Street, District 1, Ho Chi Minh City, Vietnam Tel: Tran Quoc Toan Street, Hai Chau District, Da Nang City, Vietnam Tel: es City/Province Name Address Telephone SWIFT Code HA NOI Main Transaction Office No. I 34 Hai Ba Trung St., Hanoi, Vietnam ICBV VN VX 106 HO CHI MINH Main Transaction Office No. II 79 Ham Nghi, Dist. 1, Ho Chi Minh City ICBV VN VX 900 AN GIANG An Giang Chau Doc 270 Ly Thai To Str.,Long Xuyen City, An Giang Nguyen Huu Canh, Chau Doc Town, An Giang ICBV VN VX ICBV VN VX 742 BA RIA VUNG TAU Ba Ria - Vung Tau Ba Ria 10 Trung Trac, Vung Tau City, Ba Ria- Vung Tau Nguyen Huu Tho, Ba Ria Town, Ba Ria-Vung Tau ICBV VN VX ICBV VN VX 890 BAC GIANG Bac Giang 45 Nguyen Van Cu Str., Bac Giang Town, Bac Giang ICBV VN VX 280 BAC LIEU Bac Lieu 1 Hai Ba Trung, Bac Lieu Town, Bac Lieu ICBV VN VX 862 Bac Ninh 31 Nguyen Dang Tao Str., Bac Ninh City, Bac Ninh ICBV VN VX 282 BAC NINH Tien Son Tien Son Industrial Zone Tu Son Town, Tu Son Suburban District, Bac Ninh ICBV VN VX 284 No.18 Central Road, Tien Son Industrial Zone, Bac Ninh ICBV VN VX 285 Que Vo E6 Que Vo Industrial Zone, Van Duong, Que Vo, Bac Ninh BEN TRE Ben Tre 142A Nguyen Dinh Chieu, Ben Tre Town, Ben Tre ICBV VN VX 780 BINH DINH Binh Dinh Phu Tai 257 Le Hong Phong, Quy Nhon City, Binh Dinh Hung Vuong Str., Quy Nhon City, Binh Dinh ICBV VN VX ICBV VN VX 542 BINH DUONG Binh Duong Binh Duong Industrial Zone 330 Binh Duong Avenue, Thu Dau Mot Town, Binh Duong ICBV VN VX Doc Lap Str., Di An suburban district, Binh Duong BINH PHUOC Binh Phuoc th Avenue, Dong Xoai Town, Binh Phuoc ICBV VN VX 504

49 es (continued) BINH THUAN CA MAU CAN THO DA NANG DAC LAC DONG NAI DONG THAP GIA LAI HA NAM HA NOI Binh Thuan Ca Mau Can Tho Tra Noc Industrial Zone Da Nang Ngu Hanh Son Lien Chieu Dac Lac Dong Nai Nhon Trach Bien Hoa Industrial Zone Long Thanh Dong Thap Sa Dec Gia Lai Ha Nam Hai Ba Trung Dong Da Hoan Kiem 2 Nguyen Tat Thanh, Phan Thiet City, Binh Thuan 94 Ly Thuong Kiet, Ca Mau City, Ca Mau 9 Phan Dinh Phung, Can Tho City ICBV VN VX ICBV VN VX ICBV VN VX 820 Block 30A9, Tra Noc Idustrial Zone, Binh Thuy Dist., Can Tho ICBV VN VX Nguyen Van Linh, Thanh Khe, Da Nang 49 Ngu Hanh Son, Ngu Hanh Son Dist., Da Nang City 381 Nguyen Luong Bang, Lien Chieu Dist. Da Nang City 35 Nguyen Tat Thanh, Buon Ma Thuat City, Dac Lac 77D Hung Dao Vuong, Bien Hoa City ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX B, Phu Hoi Commune, Nhon Trach, Dong Nai ICBV VN VX 681 Quater No.10, An Binh Dist., Bien Hoa City, Da Nang Phuoc Hai, Long Thanh Town, Dong Nai 87 Nguyen Hue, Cao Lanh City, Dong Thap 209A Tran Hung Dao, Sa Dec Town, Dong Thap 1 Tran Hung Dao, Pleiku City, Gia Lai 135 Nguyen Van Troi Str., Phu Ly Town, Ha Nam 285 Tran Khat Chan, Hai Ba Trung, Hanoi 187 Nguyen Luong Bang, Dong Da, Hanoi 37 Hang Bo, Hoan Kiem, Hanoi Cau Dien 72A Ho Tung Mau Str., Tu Liem, Ha Noi Cau Giay Ba Dinh Thanh Xuan Chuong Duong Yen Vien 117A Hoang Quoc Viet, Cau Giay, Hanoi 126 Doi Can, Ba Dinh, Hanoi 275 Nguyen Trai, Thanh Xuan, Hanoi 32/298 Ngoc Lam, Long Bien Dist., Hanoi 284 Ha Huy Tap, Yen Vien Town, Gia Lam, Hanoi ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX

50 48 es (continued) HA NOI HA TAY HA TINH HAI DUONG HAI PHONG HO CHI MINH CITY Bac Hanoi Industrial Zone Hoang Mai Dong Anh Ha Tay Quang Trung - Ha Tay Nguyen Trai - Ha Tay Song Nhue - Ha Tay Lang Hoa Lac Ha Tinh Hai Duong Nhi Chieu Hai Duong Industrial Zone Hai Phong To Hieu Do Son Hong Bang Le Chan Ngo Quyen HCM City No.1 HCM City No. 2 HCM City No.3 HCM City No.4 HCM City No.5 HCM City No.6 Group No.11, Nguyen Van Linh Str.,Sai Dong Ward, Long bien Dist., Hanoi ICBV VN VX 129 No.2-4 Kim Dong Str., Giap Bat, Hoang Mai, Hanoi Dong Anh Town, Hanoi 269 Quang Trung, Ha Dong Town, Ha Tay ICBV VN VX ICBV VN VX Tran Phu, Van Mo Ward, Ha Dong Town, Ha Tay ICBV VN VX Tran Phu, Van Mo Ward, Ha Dong Town, Ha Tay 10 Ngo Quyen Str., Ha Dong Town, Ha Tay No.3 Tan Binh Zone, Xuan Mai Town, Chuong My, Ha Tay 160 Ha Huy Tap Str., Ha Tinh Town, Ha Tinh No.1 Hong Quang Str., Hai Duong City, Hai Duong Group II, Phu Thu Town, Kim Mon, Hai Duong ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX 344 Km Avenue No.5, Hai Duong City, Hai Duong ICBV VN VX Dien Bien Phu, Ngo Quyen, Hai Phong 116 To Hieu, Le Chan, Hai Phong 193 Ly Thanh Tong, Do Son, Hai Phong 90 Tran Quang Khai, Hong Bang Dist., Hai Phong 189 Hai Ba Trung, Le Chan, Hai Phong 5 Pham Minh Duc, Ngo Quyen, Hai Phong 93 Ham Nghi, Dist. 1, Ho Chi Minh City Phan Dinh Phung, Phu Nhuan Dist. Ho chi Minh City 461 Nguyen Dinh Chieu, Dist. 3, Ho Chi Minh City Ben Van Don, Dist. 4, Ho Chi Minh City 218 Tran Hung Dao B, Dist. 5, Ho Chi Minh City 78 Thap Muoi, Dist. 6, Ho Chi Minh City ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX 922

51 es (continued) HO CHI MINH CITY HOA BINH HUNG YEN KHANH HOA KIEN GIANG KON TUM LAO CAI LAM DONG LANG SON LONG AN Binh Tan HCM City No.7 HCM City No. 8 HCM City No. 9 HCM City No. 10 HCM City No. 11 HCM City No. 12 Tan Binh HCM City No. 14 Thu Duc Cu Chi Hoa Binh Hung Yen My Hao Khanh Hoa Kien Giang Kon Tum Lao Cai Lam Dong Bao Loc Di Linh Lang Son Long An Ben Luc Chau Thanh Block No.9, C Str.,Tan Tao Industrial Zone, Binh Tan Dist., Ho Chi Minh City ICBV VN VX Bui Huu Nghia, Binh Thanh Dist., Ho Chi Minh City ICBV VN VX H ung Phu, Dist. 8, Ho Chi Minh City ICBV VN VX 926 No.1 Nguyen Oanh, Go Vap Dist., Ho Chi Minh City ICBV VN VX Le Hong Phong, Dist. 10, Ho Chi Minh City ICBV VN VX , 3/2 Road, Dist. 11, Ho Chi Minh City ICBV VN VX Tr uong Chinh, Tan Binh Dist., Ho Chi Minh City ICBV VN VX Ly Thuong Kiet, Tan Binh Dist., Ho Chi Minh City ICBV VN VX Nguyen Van Ba, Thu Duc Dist., Ho Chi Minh City ICBV VN VX 946 No.1 Vo Van Ngan, Thu Duc Dist., Ho Chi Minh City ICBV VN VX 947 No Road No.8, Cu Chi Town, Ho Chi Minh City Cu Chinh Lan Str, Phuong Lam Ward, Hoa Binh City, Hoa Binh No.1 Dien Bien, Hung Yen Town, Hung Yen ICBV VN VX 342 Ban Yen Nhan Town, My Hao, Hung Yen ICBV VN VX 343 No.4 Hoang Hoa Tham, Nha Trang City, Khanh Hoa 63 Le Loi, Rach Gia Town, Kien Giang 90 Tran Phu, Kon Tum Town, Kon Tum 7 Hoang Lien Str., Coc Leu Ward, Lao Cai City, Lao Cai 1 Le Dai Hanh, Da Lat City, Lam Dong No.3 28/3 Str., Bao Loc Town, Lam Dong 616 Hung Vuong, Di Linh Town, Lam Dong 51 Le Loi Str., Lang Son City, Lang Son 396 National Highway 1, Tan An Town, Long An 234 Vo Cong Ton Str., Ben Luc Town, Long An A Str., Tam Vu Town, Chau Thanh, Long An ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX

52 50 es (continued) NAM DINH NINH THUAN NGHE AN NINH BINH PHU THO PHU YEN QUANG BINH QUANG NAM QUANG NGAI QUANG NINH QUANG TRI SOC TRANG Nam Dinh Nam Dinh City Ninh Thuan Nghe An Cua Lo Bac Nghe An Ben Thuy Ninh Binh Tam Diep Phu Tho Den Hung Phu Tho Town Nam Viet Tri Phu Yen Quang Binh Quang Nam Hoi An Quang Ngai Quang Ninh Cam Pha Uong Bi Bai Chay Mong Cai Quang Tri Soc Trang 119 Quang Trung, Nam Dinh City No.1, May To Str., Tran Hung Dao Ward, Nam Dinh City, Nam Dinh 468 Thong Nhat Str., Phan Rang-Thap Cham Town, Ninh Thuan 7 Nguyen Sy Bach, Vinh City, Nghe An 62 Binh Minh Str., Thu Thuy, Cua Lo Town, Nghe An Block No.2, Cau Giat Town, Quynh Luu, Nghe An 229 Le Duan, Vinh City, Nghe An ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX 442 Tran Hung Dao, Ninh Binh Town, Ninh Binh ICBV VN VX 400 Group No.17, Trung Son Ward, Tam Diep Town, Ninh Binh ICBV VN VX Hung Vuong Avenue, Viet Tri City, Phu Tho ICBV VN VX 240 Group 1, Van Phu, Viet Tri City, Phu Tho ICBV VN VX Phu An Str., Phu Tho Town, Phu Tho ICBV VN VX 244 No.806 Hung Vuong Avenue, Viet Tri City, Phu Tho Hung Vuong, Tuy Hoa Town, Phu Yen ICBV VN VX Ly Thuong Kiet, Dong Hoi City, Quang Binh ICBV VN VX Phan Boi Chau, Tam Ky Town, Quang Nam ICBV VN VX Hoang Dieu, Hoi An Town, Quang Nam ICBV VN VX Hung Vuong Avenue, Quang Ngai Town ICBV VN VX 520 Kho than 1,2, Bê tông Str., Hong Gai Dist., HaLong City, Quang Ninh ICBV VN VX Tran Phu, Cam Trung, Cam Pha, Quang Ninh ICBV VN VX Quang Trung, Uong Bi, Quang Ninh ICBV VN VX 304 Ha Long Str., Bai Chay Ward, Ha Long City, Quang Ninh 01 Huu Nghi, Mong Cai Town, Quang Ninh 64 Nguyen Trai, Dong Ha Town, Quang Tri 67A Le Loi, Soc Trang Town, Soc Trang ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX 822

53 es (continued) TAY NINH THAI BINH THAI NGUYEN THANH HOA THUA THIEN - HUE TIEN GIANG TRA VINH VINH LONG VINH PHUC Tay Ninh Trang Bang Industrial Zone Hoa Thanh Thai Binh Diem Dien Thai Nguyen Song Cong Luu Xa Thanh Hoa Sam Son Bim Son Thua Thien Hue Phu Bai Industrial Zone Tien Giang Tay Tien Giang Tra Vinh Vinh Long Vinh Phuc Phuc Yen Binh Xuyen Quang Minh Industrial Zone 145, 30/4 Road, Tay Ninh Town ICBV VN VX 660 Km A1 An Binh Hamlet, Trang Bang, Tay Ninh ICBV VN VX /12B, Hung Vuong Str., Hoa Thanh Town, Tay Ninh 190 Trung Trac, Thai Binh Town, Thai Binh Block No.5, Diem Dien Town, Thai Thuy, Thai Binh 62 Hoang Van Thu, Thai Nguyen City, Thai Nguyen No.1 Thang Loi Str., Song Cong Town, Thai Nguyen Trung Thanh Ward, Thai Nguyen City, Thai Nguyen 17 Phan Chu Trinh, Thanh Hoa City, Thanh Hoa Tai Loc Str., Truong Son Ward, Sam Son Town, Thanh Hoa 169 Tran Phu, Bim Som Town, Thanh Hoa 2 Le Quy Don, Hue City, Hue ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX 460 Zone 1, Phu Bai Town, Huong Thuy, Thua Thien Hue ICBV VN VX B Nam Ky Khoi Nghia, My Tho City, Tien Giang 560 National Highway 1A, Block No.5, Cai Lay Town, Tien Giang 15A Dien Bien Phu, Tra Vinh Town 143B Le Thai To, Vinh Long Town ICBV VN VX ICBV VN VX ICBV VN VX ICBV VN VX 800 No.4 Ngo Quyen, Vinh Yen Town, Vinh Phuc ICBV VN VX 246 No.4 Trn Hung Dao Str., Phuc Yen Town, Vinh Phuc ICBV VN VX 260 Zone No.1, Huong Canh Town, Binh Xuyen, Vinh Phuc ICBV VN VX 262 Km9 Thang Long Highway, Noi Bai, Me Linh, Vinh Phuc ICBV VN VX

54 52 Subsidiaries Leasing Company 16 Phan Dinh Phung Str., Hanoi Tel: Securities Company Ltd. 306 Ba Trieu Str., Hanoi Tel: Real Estate and Financial 76 Nguyen Van Cu Str., Dist. 1, HCM City Tel: Investment Company Joint Ventures Indovina Bank 36 Ton That Dam Str., Dist. 1, Ho Chi Minh City Tel: Insurance Company 141 Le Duan Str., Hanoi Tel: Non-profit Making Units Training Center 133 Kim Ma Str., Hanoi Tel: IT Center 46A Tang Bat Ho Str., Hanoi Tel: Trade Union 27 Phu Dong Thien Vuong Str., Hanoi Tel:

55 Corporate Information HEAD OFFICE 108 Tran Hung Dao Str., Hanoi, Vietnam Tel : Fax : Swift : ICBV VN VX Website : FINANCIAL INSTITUTIONS DEPARTMENT 108 Tran Hung Dao Str., Hanoi, Vietnam Tel : , Fax : fi@vietinbank.vn MAIN TRANSACTION OFFICE No Hai Ba Trung Str., Hanoi, Vietnam Tel : Fax : icbt106@hn.vnn.vn MAIN TRANSACTION OFFICE No Ham Nghi Str., Dist. 1 Ho Chi Minh City, Vietnam Tel : Fax : VIETINBANK MAIN OPERATION CENTER 108 Tran Hung Dao Str., Hanoi, Vietnam Tel : Fax : haiph@vietinbank.vn REPRESENTATIVE OFFICES 79 Ham Nghi Str., Dist. 1, Ho Chi Minh City, Vietnam Tel : Tran Quoc Toan Str., Hai Chau Dist. Da Nang City, Vietnam Tel : VietiBank Management Team