ANNU AL REP OR T 2014

Transcription

Annual Report ACB
2014
TH
EA
CC
UMU
L ATIO N O
UE
L
A
FV
S
CONTENTS
CHAIRMAN’S MESSAGE
01 Page 08
GENERAL INFORMATION
1.1. Name and business registration
1.2.History
1.3. Business scope and network
1.4. Organizational structure
1.5. Strategic intent
1.6. Financial risk management
02
BUSINESS PERFORMANCE IN 2014
03 REPORT OF THE MANAGEMENT
Page 20
Page 35
2.1.
2.2.
2.3.
2.4.
2.5.
3.1.
3.2.
3.3.
3.4.
3.5.
General overview
Organizational structure and human resources
Review of investments and project implementation
Financial review
Shareholding structure, changes in shareholders’ equity
Business performance
Financial review
Improvement in organizational structure, policy and management
Future development plan
Management’s explanation of the audit opinion
04
Page 40
BOARD OF DIRECTORS’ OVERVIEW OF
BUSINESS ACTIVITIES
4.1.
4.2.
4.3.
Board of Directors’ overview of business activities
Board of Directors’ overview of the Management’s operations
Board of Directors’ directions
05
CORPORATE GOVERNANCE
Page 42
5.1.
5.2.
5.3.
06
OVERVIEW OF THE VIETNAMESE
BANKING INDUSTRY IN 2014
Page 54
6.1.
6.2.
The Board of Directors
The Supervisory Board
Some issues in relation to directors and officers
Offshore and onshore macro-economic background
Monetary policy and the banking industry
07
AWARDS, HIGHLIGHTS OF THE YEAR,
CHARITABLE ACTIVITIES IN 2014
08
FINANCIAL STATEMENTS
09
BRANCH NETWORK
Page 58
Page 66
Page 270
8.1.
8.2.
Independent auditors’ report
Audited financial statements
Ladies and gentlemen,
In 2014, the Vietnamese economy was improved from the
previous year, but in general there were still many challenges,
such as the unevenness of economic growth, difficulties in the
credit market, the deceleration of export growth, and banks’
slow progress on bad debt resolution.
2014 was the second year in the bank’s five-year strategic
roadmap (2013-2018). It was also the second year of the threeyear restructuring plan (2013-2015), which aims to address
legacy issues.
...the following
three tenets need
to be reiterated:
satisfaction of
customers, trust
of shareholders,
and excellent
performance
driven by the
ACB family’s
determination to
innovate. Keeping
these three
tenets in mind,
then sustaining
them, and then
developing them
is what it will take
for ACB to be the
leading bank for
generations to
come.
6
•Regarding strategy implementation, ACB has finished “fixing
the basics” (Stage 1), and from 2015 to 2016 will be laying
groundwork and “building capabilities” (Stage 2), which are vital
steps to obtaining a leading market position.
• The bank’s core business has continued to grow relatively
well. The balance sheet has experienced measured growth,
largely in line with the market and in respect of internal risk
management principles that are continuously strengthened.
Loan growth has focused on consumers and small and
medium-sized enterprises. In 2014, consumer lending grew
15% and customer deposits grew 12%, while interbank
borrowing fell for a third consecutive year. In addition, the bank
was well capitalized, with a capital adequacy ratio of 14.1%.
•The bank’s income breakdown has changed, following the
strategy to focus on retail banking. Profit before tax increased
by 17%, indicating that the bank is on the fast track to recovery.
Non-interest income was strong, and recorded its highest
growth rate since 2011. Income from financial markets
returned to the black, after two years of negative performance
(following the closure of ACB’s gold position, per government
regulation). Since 2012, the main priority has been to
proactively address legacy issues and make ample provisions.
• In 2014, ACB fully upgraded its core banking platform, from
TCBS to DNA, and subsequently upgraded ACB Online, its
internet banking channel. The restructuring of the branch
network continued, encouraging better efficiency. Policies
and procedures were introduced or revised to promote faster
processing and increased convenience for customers. The
various types of banking risks were well managed. Late in 2014
and early in 2015, a new corporate identity was launched as part
Báo cáo thường niên 2014
CHAIRMAN’S MESSAGE
of the strategic change in serving customers,
putting the customer experience at the center
of everything bank employees do.
• In March 2015, The Asian Banker recognized
ACB with the Most Improved Retail Bank in Asia
Pacific for 2015 award for successfully rebuilding
its retail banking business.
In 2015 and in upcoming years, ACB will
observe three core tenets: maximize customer
satisfaction, maintain shareholder trust, and
strive for outstanding performance.
•Customer satisfaction can be achieved simply
by providing appropriate products and services,
but ACB strives for more; we aim to provide
extraordinary service and make additional
propositions that go beyond what customers
expect. ACB cannot compete on cost alone; it
must go further, and understand what makes
existing customers stay and what brings new
customers in. More investment must be made
in getting to know customers and building a
mutually beneficial relationship.
• Shareholder trust is built when the bank performs
exceptionally well, under the supervision of
shareholders and stakeholders. ACB adheres to
the principle of absolute transparency in corporate
governance, in order to promote sustainable
growth for a sustained source of wealth.
•Excellent performance requires the adoption
of appropriate technologies and respect for
corporate governance best practices, but more
importantly, excellence depends on the quality
of human resources, because high quality
tools still require highly skilled hands. ACB is
an organization full of people who are driven,
knowledgeable, innovative, and determined that
ACB emerge as the leading bank.
Ladies and gentlemen,
It is forecast that the Vietnamese economy will
www.acb.com.vn
continue to recover in 2015, with little change
in the inflation rate and a continued balance of
payments surplus. However, the economy still
faces challenges, including the government
budget deficit, the access to credit gap in the small
and medium-sized enterprises sector, and the
serious need for measures to resolve the high level
of non-performing loans.
It is in this challenging context that ACB has set its
2015 growth plan. The Board of Directors, with the
full knowledge that income will grow considerably,
has proposed a reasonable profit target to the
shareholders, as this is the final year to resolve legacy
issues under the three-year restructuring plan.
The bank cannot be satisfied with what has been
achieved or what will be achieved. Rather, ACB
must strive to be an organization with strong core
values that can guide it on the road to greatness,
distinguished from the market by its personal
and professional integrity, continuous innovation,
prudent business practices, balance between the
interests of shareholders and stakeholders, and
outstanding efficiency.
The bank’s strategic target for 2018 is to be
the leading bank in Vietnam in the following five
key areas: customer focus, risk management,
sustainable financial performance, efficiency, and
ethics. To help realize this aspiration, the following
three tenets need to be reiterated: satisfaction
of customers, trust of shareholders, and
excellent performance driven by the ACB family’s
determination to innovate.
Keeping these three tenets in mind, then
sustaining them, and then developing them is
what it will take for ACB to be the leading bank for
generations to come.
Tran Hung Huy
Chairman of the Board of Directors
7
01 General Information
1.1. Name and business registration
1.2.History
1.3. Business scope and network
1.4. Organizational structure
1.5. Strategic intent
1.6. Financial risk management
The tiny concentration of aromatic compounds found
in coffee is formed and accumulated in the coffee
beans. An ideal combination of natural factors and
processing techniques is required to fully extract the
hidden fragrance of coffee.
A bumper harvest of coffee
results from the great dedication
and relentless efforts of farmers.
Mr. Nguyen Van Huan, a coffee
farm owner in Lam Ha District, is
a case in point. ACB has the honor
to accompany him on the road to
success.
Undergoing a series of processes, including sorting, distilling,
sublimating and crystallizing, every cup of coffee is a collaboration
of the earth and human beings.
General Information
1.1 Name and business registration
• The bank’s name:
- Full name in Vietnamese: Ngân hàng thương mại cổ phần Á Châu
- Abbreviated name in Vietnamese: Ngân hàng Á Châu
- Full name in English: Asia Commercial Joint Stock Bank
- Abbreviated name in English: ACB
• Business registration No. 0301452948
- First registration: May 19, 1993
- The twenty-ninth registration: September 03, 2014
• Charter capital: VND 9,376,965,060,000 (In words: Nine trillion three hundred and seventy-six billion
nine hundred and sixty-five million and sixty thousand Vietnam dong)
• Address: 442 Nguyen Thi Minh Khai Street, Ward 5, District 3, Ho Chi Minh City, Vietnam.
• Phone number: (84.8) 3929 0999
• Fax: (84.8) 3839 9885
• Website: www.acb.com.vn
• Stock code: ACB
1.2 History
1.2.1 Establishment:
Asia Commercial Joint-Stock Bank (ACB) was
established under the Business License No.
0032/NH-GP dated April 24, 1993 by the State
Bank of Vietnam and Establishment Permit No.
533/GP-UB dated May 13, 1993 by the People’s
Committee of Ho Chi Minh City. ACB started
operations on June 04, 1993.
1.2.2 Listing:
ACB listed on the Hanoi Securities Trading Center
(now re-named the Hanoi Stock Exchange - HNX)
pursuant to Decision No. 21/QĐ-TTGDHN dated
October 31, 2006. The first transaction date was
November 21, 2006.
1.2.3. Development milestones
12
Annual Report 2014
General information
Stage
2011 - 2014
Issuance of Strategic Directions for 2011 – 2015
• The “Strategic Directions for 2011 to 2015 & the Vision to 2020” was issued. One focus was the
transformation of the bank’s corporate governance practices, in compliance with Vietnamese
rules & regulations, and the application of international best practices.
• An enterprise module data center was put into operation (the first in Vietnam built to
international construction standards), with an investment value of USD 2 million.
• ACB Gold Manufacturing Center was the first business in the industry certified by QMS Australia
for its quality management system (meeting the standards of ISO 9001:2008) and also
recognized by Accreditation of Vietnam for meeting the standards of ISO/IEC 17025:2005 in
testing and calibrating capacity (determining gold content).
• The August incident in 2012 had a serious impact on various bank activities, especially true for
gold deposit taking and gold trading activities. The bank took quick action in response to the
spike in withdrawals that took place in the last week of August, and was able to recover all of the
VND deposits relatively quickly. The bank then took drastic measures to cut costs in the second
half of the year.
• In 2013, although the business result did not meet expectations, ACB achieved positive growth
rates in terms of deposit taking (18%) and lending (15%). Bad debt was kept under 3%. ACB
managed to better arrange its personnel and cut headcounts. ACB began implementing the
restructuring roadmap (2013 – 2015), as stipulated by the State Bank of Vietnam.
• In August 2014, ACB upgraded the old core banking platform, which had been in use for 14 years,
to a new version called the DNA. ACB completed the first phase of its corporate identity
transformation, introducing new branding and renovating the facades of branches,
sub-branches, and ATMs. A soft launch was conducted on 05 January 2015.
• ACB developed a risk management framework to fully comply with new regulations regarding
prudential ratios. ACB’s branches grew in size and performance improved.
Stage
2006 - 2010:
Listing on the Hanoi Stock Exchange
Stage
2001 - 2005:
Application of the ISO 9001:2000 quality management system
Stage
1996 - 2000:
Approaching modern banking practices
Stage
1993 - 1995:
Embryonic stage of development
www.acb.com.vn
• Listed on the Hanoi Stock Exchange.
• Rapid expansion of the branch network: 223 offices were put into operation, a leap from 58
offices in 2005 to 281 offices in 2010.
• Established ACB Leasing (ACBL).
• Built a standard data backup center in Dong Nai Province.
• Awarded two Labor Medals by the Government, and recognized by various prestigious financial
magazines and organizations as the best bank in Vietnam.
• Adopted the ISO 9001:2000 quality management system and registered for recognition of (i)
deposit taking, (ii) short- and long-term lending, (iii) trade services, and (iv) human resources
processes at the Headquarters.
• Standard Chartered Bank (SCB) signed an agreement to provide ACB with comprehensive
technical assistance, and became an ACB shareholder.
• Carried out the second phase of the IT modernization program, including (i) server upgrading, (ii)
replacement of the bankcard transaction processing software with one compatible with the core
banking platform, and (iii) continued ATM installation.
• Became the first private Vietnamese bank to issue the international credit cards, MasterCard and Visa.
• Followed a two-year training program on banking operations conducted by foreign bankers and
banking specialists, in order to work towards modern banking practices.
• Launched an IT modernization program: the LAN was replaced by the WAN, with a core banking
platform named The Complete Banking Solution (TCBS), which was officially put into operation in 2001.
• Rearranged the organizational structure of Headquarters in order to facilitate business and
support activities.
• Established ACB Securities Company (ACBS).
• The founders shared the common business principle of “managing the development of
the enterprise in a safe and effective way.”
• Targeted segments included households and private SMEs.
13
General information
1.2.4 Growth charts
1.2.4.1 Total assets, consolidated (VND billion)
Total assets, consolidated
2014
179,610
2013
166,599
2012
176,308
281,019
2011
205,103
2010
0
50,000
100,000
150,000
200,000
250,000
300,000
1.2.4.2 Total deposits, consolidated (VND billion)
Total deposits, consolidated
164,025
2014
2013
150,988
159,500
2012
234,503
2011
183,132
2010
-
Total assets:
50,000
179,610
14
100,000
150,000
200,000
250,000
Total deposits:
164,025
Annual Report 2014
General information
1.2.4.3 Total outstanding loans, consolidated (VND billion)
Total outstanding loans, consolidated
2014
116,324
2013
107,190
2012
102,815
2011
102,809
2010
87,195
-
20,000
40,000
60,000
80,000 100,000 120,000 140,000
1.2.4.4 Total pre-tax profits, consolidated (VND billion)
Total pre-tax profits, consolidated
1,215
2014
2013
1,035
2012
1,043
2011
4,203
2010
3,102
0
500
1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
Total outstanding loans:
116,324
www.acb.com.vn
Total pre-tax profit:
1,215
15
General information
1.3Business scope and
network
1.3.1 Business scope
See Section “Principal activities” in the 2014
consolidated financial statements.
1.3.2 Network
As of December 31, 2014, ACB had 346 branches
& sub-branches in 47 provinces and cities
nationwide. In terms of the number of branches &
sub-branches and performance, Ho Chi Minh City,
the Southeast region, and the Red River delta are
regarded as the bank’s major markets.
1.4Organizational
structure
1.4.1 Managerial structure
The bank’s managerial structure consists of the
General Meeting of Shareholders, the Board of
Directors, the Supervisory Board, and the Chief
Executive Officer, as mandated by Article 32.1
of the Law on Credit Institutions 2010, on the
organizational and managerial structure of credit
institutions.
ACB Group includes the bank and its subsidiaries.
As of December 31, 2014, the bank was
comprised of ten divisions and nine departments
at Headquarters, and 346 branches and subbranches nationwide. In addition, there are
a number of specialized units including the
Bankcard Center, ATM Center, ACB Western
Union Center, Telesales Center and Call Center
24/7, the Centralized Credit Appraisal Center, and
the Debt Management Center.
As of December 31, 2014,
ACB had
346
branches and
sub-branches nationwide
The General Meeting of Shareholders is the
highest authority decision making body (Article
27.1 of ACB Charter 2012), and has the right to
elect, dismiss and remove members of the Board
of Directors and the Supervisory Board (Article
29.1.d of ACB Charter 2012).
The board committees include the Personnel
Committee, Risk Committee, Credit Committee,
Investment Committee, and Strategy Committee.
16
Annual Report 2014
General information
1.4.2 Organizational chart
GENERAL MEETING
OF
SHAREHOLDERS
SUPERVISORY BOARD
INTERNAL AUDIT DEPARTMENT
BOARD OF
DIRECTOR
BOARD COMMITTEES
CONSUMER
BANKING DIVISION
• Card center
• ATM center
• WU center
• Call center
• Telesales center
• Personal credit center
• Sales Management department
• Business Sub-department
• E-Banking department
• Market research Sub-dept.
• Affiliates
COMMERCIAL
BANKING DIVISION
• Large Corporation
• Sales Management Department
• International payment center
• Finalcial Institutions and corporate credit center
• Enterprises ratings Sub-department
• Business Sub-department
• Product development Sub-department
FINALCIAL
MARKETS DIVISION
• Money market department
• FX and gold department
• Treasury product department
• Gold manufacturing center
RISK MANAGEMENT
DIVISION
• Credit policy department
• Market risk department
• Operational risk department
• Legal & compliance department
OPERATIONS
DIVISION
• Operations department
• Credit support department
• Banknote deparment
• Legal documentation center
HUMAN
RESORCE DIVISION
• Recruitment department
• Sevirce delivery deparment
• Compensation and benefits department
• HR development department
• Training center
• HR relationship managers
OFFICE OF THE BOARD
OF DIRECTORS
BOARD OF
MANAGEMENT
MANAGEMENT COMMITTEES
PROJECT MANAGEMENT OFFICE
EXTERNAL DEPARTMENT
BRAND OF COMMUNICATION
DEPARTMENT
CUSTUMER EXPERIENCE
MANAGEMENT DEPARTMENT
GENERAL MANAGEMENT
DEPARTMENT
INVESTMENT DEPARTMENT
COLLATERAL APPAIRAL
DEPARTMENT
DEBT MANAGEMENT CENTER
CENTRALIZED CREDIT
APPROVAL CENTER
PROPERTY
MANAGEMENT DIVISION
• Facility management department
• Basic contruction department
• Project management department
• Technical service and supply department
IT DIVISION
• IT security and infrastructure department
• Database and sytems department
• Aplicantion management department
• Technical analysis department
• Data warehouse & BI department
• Aplication development department
• IT strategy & project
• IT management & policy
C/A & SUBORDNATE
DEPARTMENTS
• Accounting department for treasury
• Accounting department for payment
• Accounting department for internal expenses
• Statistical reports and general management department
CFO & SUBORDNATE
DEPARTMENTS
• Financial supervision department
• Business performance management department
• Blance sheet management department
BRANCHES AND SUB-BRANCHES
www.acb.com.vn
17
General information
1.4.3 Subsidiaries
Names
Address
License
&
Business
Capital
(billion
VND)
Owned
by
ACB
(%)
Owned by
Subsidiary
(%)
Total
Share
holding
(%)
ACB
Securities
Company
(ACBS)
41 Mac Dinh Chi Street, 06/GPHĐKD
Dakao Ward, District 1, Investment
Ho Chi Minh City.
banking
1,500
100
-
100
ACB Asset
Management
Floor 8, ACB Building,
4104000099
444A - 446 Cach Mang Troubled
Thang Tam Street,
asset
340
100
-
100
Company
(ACBA
District 3, Ho Chi Minh
City.
management
ACB
Leasing
Company
(ACB L)
131 Chau Van Liem
Street, Ward 14,
City.
4104001359
Leasing
200
100
-
100
ACB
Capital
Company
(ACBC)
Floor 1, ACB Building,
41/UBCK-GP
444A - 446 Cach Mang Fund
Thang Tam Street,
management
City.
50
-
100
100
1.5 Strategic intent
1.5.1 Key financial targets year 2015
Given the forecasts for the business environment, as well as the opportunities and challenges in front of
ACB, the Group’s key financial targets in 2015 are set as follows:
• Total assets are expected to increase
13%
• Customer deposit growth
13%
• Credit growth
13%
• Non-performing loans ratio
<3%
• Group pre-tax profit~ VND 1,314 billion
18
Annual Report 2014
General information
1.5.2 Medium and long-term strategic targets
A three-stage approach will allow ACB to become the leading bank in Vietnam.
• Stage 1 – Fix the basics (2014): Implement “no regrets” moves which are essential for ACB to maintain
its competitiveness in the market.
• Stage 2 – Building capabilities (2015 – 2016): Adopt or enhance capabilities that are vital to obtaining
a leading market position, such as segmentation capabilities, which will allow us to deliver customerfocused propositions to win in targeted market segments.
• Stage 3 – Leadership position (2017 – 2018): Introduce more sophisticated capabilities to understand
and analyze customers, and subsequently identify cross-selling opportunities.
1.5.3 Social responsibility
See item 7.
1.6 Financial risk management
See Item 44 in 2014 consolidated financial statements.
www.acb.com.vn
19
02 Business Performance in 2014
2.1.
2.2.
2.3.
2.4.
2.5.
General overview
Organizational structure and human resources
Review of investments and project
implementation
Financial review
Shareholding structure, changes in
shareholders’ equity
03 Report Of The
Management
3.1.
3.2.
3.3.
3.4.
3.5.
Business performance
Financial review
Improvement in organizational structure, policy
and management
Future development plan
Management’s explanation of the audit opinion
04
Board of Directors’ overview
of business activities
4.1.
4.2.
4.3.
Board of Directors’ overview of business activities
Board of Directors’ overview of the Management’s operations
Board of Directors’ directions
Beneath the shaggy bark, the valuable sap line must be
nurtured within the tree for a long time before harvesting with thoughtful and prudent care to yield pure
rubber.
Rubber products provide long-term and sustainable
beneficial value over time which consumers can trust. Such
value comes not only from tangible objects but also through
the creativity of human beings.
With sustainable activities, Mr.
Do Chon Thanh (living in Binh
Phuoc Province) chose ACB as
a trusted partner to support
his business development
more than 5 years ago.
Business Performance in 2014
2.1 General overview
2014 marks the second year in ACB’s three-year restructuring roadmap. Despite unfavorable economic
conditions and numerous difficulties in tackling legacy issues, ACB has managed to achieve a number
of outstanding results.
Some key results are as follows:
Target
(VND billion)
Actual result
(VND billion)
Actual result/
Target (%)
Growth
(%)
Total assets
190,000
180,000
95
7.8
Customer deposits
156,000
155,000
100
12
Outstanding loans
121,000
116,000
96
8.5
Pre-tax profit
1,189
1,215
102%
17
NPL ratio
< 3%
2.17%
N/A
N/A
2.2 Organizational structure and human resources
2.2.1 Management composition
No.
Name
Responsibility1
1
Do Minh Toan,
President
Overall responsibility for the Management’s activities; oversight
of the Chief Financial Officer (CFO), the Chief Accountant,
the Commercial Banking Division, the IT Division, the Brand &
Communication Department, the Debt Management Center, etc.
2
Bui Tan Tai,
Executive Vice President
Head of the Project Management Office (PMO), Head of
Operations Division, oversight of the Collateral Appraisal
Department and the Customer Experience Management
Department
3
Nguyen Thanh Toai,
Spokesman of the bank, in charge of information disclosure
4
Dam Van Tuan,
Head of the Office of the BOD, Head of Human Resources
Division, oversight of the Property Management Division
5
Nguyen Duc Thai Han,
Oversight of the Financial Markets Division and the Gold
Manufacturing Center
6
Nguyen Thi Hai,
Head of the HCMC Branch Credit Committee
7
Le Ba Dung,
Chief Risk Officer (CRO)
8
Tu Tien Phat,
Head of the Consumer Banking Division.
9
Nguyen Thi Tuyet Van
Head of the External Relations Department
10
Nguyen Van Hoa
Chief Accountant
11
Vijay Maheshwari
Chief Financial Officer (CFO)
12
Matthew Martin
Chief Information Officer (CIO)
(1) According to Notification No. 654/CV-TH.15 dated February 04, 2015 on task assignment in the Management.
24
Annual Report 2014
Business performance in 2014
2.2.2 Resumes
Mr. Do Minh Toan
President
• MBA, Colombia Southern University, USA
• 20 years’ experience in finance and banking (ACB: since 1995)
Mr. Bui Tan Tai
First Executive Vice President
• MBA, Southern California University, USA
Mr. Nguyen Thanh Toai
• PhD in Economics, Plekhanov University, Soviet Union
Mr. Dam Van Tuan
• MBA in Finance and Banking, University of Applied Sciences
Northwestern Switzerland.
Mr. Nguyen Duc Thai Han
• BA in Physics, University of HCMC
www.acb.com.vn
25
Ms. Nguyen Thi Hai
• Bachelor of Economics (Banking), HCMC University of Economics
Mr. Ba Dung Le
Executive Vice President, Chief Risk Officer (CRO)
• MA in International Relations, Georgetown University, USA
• 21 years’ experience in economics, finance and banking (ACB: since 2011)
Mr. Tu Tien Phat
• MBA, University of Economics, HCMC
Ms. Nguyen Thi Tuyet Van
• BA in economics, Banking University of HCMC
Mr. Nguyen Van Hoa
Chief Accountant
• BA in economics, Banking University of HCMC
26
Annual Report 2014
Mr. Vijay Maheshwari
Chief Financial Officer (CFO)
• BA in Commerce (honors), University of Calcutta , India
•24 years’ experience in finance and banking (ACB: since 2011)
Mr. Matthew Martin
Chief Information Officer (CIO)
• Graduated from the International Finance School, majoring in banking
2.2.3 Resignations and new appoitments
The following changes took place in 2014: Mr. Huynh Quang Tuan resigned his directorship effective
January 20, 2014. The temporary suspension of his executive vice presidency and other management
positions was approved the same day.
On January 26, 2015, Ms. Nguyen Thi Tuyet Van and Mr. Tu Tien Phat were appointed as executive vice
presidents of Asia Commercial Bank.
2.2.4 Number of employees and average annual income from 2011-2014
See Item 39 “Income status of employees” in 2014 consolidated financial statements.
2.2.5 Employee policies
2.2.5.1 Recruitment
In 2014, there was no new recruitment for Headquarters staff; the only recruitment was for sales and
operational positions at branches to meet growth demands.
2.2.5.2 Compensation and benefit
Compensation: ACB has adopted a competitive compensation policy, following surveys of market salary
and employee satisfaction. Employee salaries are linked to individual performance, unit performance,
and the broader performance of the bank.
www.acb.com.vn
27
Allowances: The bank offers employees
allowances for lunch, mobile communication,
travel, occupational hazards, etc., depending on
their rank and position. ACB also offers employees
who work away from home allowances for living
costs, accommodation, and travel.
2.2.5.4 Employee development
Human resources policies emphasize identifying
and developing branch employees with strong
potential to meet the operational needs of the
bank, meeting employee career development
goals, and providing a sound basis for the smooth
implementation of human resource programs.
Insurance and tax: ACB ensures full compliance
with insurance and tax obligations, as prescribed
by law.
2.3 Review of
investments and project
implementation
2.2.5.3 Training activities
Training activities in 2014 focused on: (1) providing
timely training for new employees to meet
the demand for sales and operations staff at
branches (tellers, CSRs, supervisors, PFCs, RAs);
(2) re-training for existing staff to improve technical
knowledge for operations staff and working skills for
sales staff; (3) providing support to Headquarters’
departments via e-learning for new business
processes and products, and via “e-testing” for
staff recruitment activities, promotion contests,
technical knowledge tests, etc.
2.3.1Review of investments and
project implementation
Some key results in 2014 include: (1) 398
courses were taken by 25,500 learners; (2) 6,354
employees took part in e-testing; (3) 751 new
employees were provided with anti-fraud training;
all employees were introduced to regulations
concerning anti-corruption efforts via e-learning.
28
Annual Report 2014
Completed projects in 2014 include:
• Branch relocation and renovation, as part of the
“new corporate identity” project.
•
Automation of legal documentation, which
included the development of a customer loan
management program to facilitate automation
and to improve the template system.
Projects launched in 2014 include:
•“Branch
restructuring”:
redesign
the
organizational structure for branches and subbranches, and group them into clusters in order
to strengthen linkages between units and raise
the level of focus on business activities.
•Development of a centralized Domestic
Payment Center and new payment processes
for specialization and automation.
2.3.2 Activities of subsidiaries
2.3.2.1 Report on ACB Securities Company (ACB
Securities)
2014 was a successful year for ACB Securities,
with the recovery of the securities market.
Revenue from financial services and brokerage
fees increased by 57% YTD, while expenditures
were closely controlled; the expense/revenue
ratio was kept at just 15%. ACB Securities’ profit
after tax grew 168%, while ROE grew 15%. ACB
Securities has reached fourth place in terms of
market share in the securities market. On both
the HOSE and the HNX, customer trading volume
through ACB Securities increased by 82%.
ACB Securities restructured the balance sheet
to reduce inefficient investments, minimize
financial risks, strengthen operational capacity,
and concentrate financial resources on the core
businesses. The result of this restructuring was
not just impressive performance, but also capital
adequacy ratio, which jumped to a remarkable
1,430% at the end of 2014, well above the
minimum 180% required by the State Securities
Commission. This is a solid foundation from which
www.acb.com.vn
ACB Securities can launch its core businesses in
coming years.
ACB Securities reorganized its branches in
order to streamline the system and strengthen
business activities. At the end of 2014, ACB
Securities’ headcount was up to 242 staff, a
slight increase from end-2013. The percentage
of staff with a 4-year university degree or higher
was more than 98%, while 16% of the staff held
master’s degrees, from Vietnam or abroad. The
quality of personnel was improved.
ACB Securities’ 2015 plan is to continue investing
in future growth. A new trading system will be put
into operation in late April 2015 in order to improve
customer service quality, while investments will
be made in human resources to ensure that
customers are served by highly professional staff.
ACB Securities will expand its customer network
by: leveraging its main strength, excellent service
to individual & corporate customers; taking full
advantage of opportunities for cross-selling
with ACB; following the core values laid out by
ACB; and adopting standard rules of professional
conduct for staff.
2.3.2.2 Report on ACB Assets Management
Company (ACB Assets)
ACB Assets manages and collects bad debts for all
ACB’s branches and sub-branches. In 2014, it faced
the difficult task of recovering collateral for debt
resolution, because bad debt transfers have been
2014 ACB Securities’
profit after tax grew
168%
29
more frequent than in the past;
meanwhile, the real estate market
has been frozen. However, ACB
Assets modified the procedure
for debt handling and improved
its debt collection results.
• Revenue: VND 46.8 billion;
•Profit before tax: VND 25.8
billion;
• Debt collections: VND 994 billion
(accounting for 28.5% of the bad
debt under its management);
• Number of liquidated accounts:
295.
In 2015, ACB Assets will
continue improving its debt
collection procedures in order
to increase professionalism
within the operation, and
input job descriptions for ACB
Assets staff into the CLCS
program. It will also stress
asset seizure and trade, and
sale of debts to third parties.
ACB Assets will foster better
linkages with courts, law
enforcement bodies, state
authorities, and other related
parties to facilitate debthandling activities.
had reached VND 947.58 billion, profit before tax was VND 10.85
billion, and the NPL ratio was just 0.19%.
Chart 1: ACB Leasing’s market share growth
VND billion
25,000
10%
9%
20,000
8%
5.95%
15,000
6.62%
7%
6.92%
5%
4.72%
10,000
6%
4%
3%
5,000
0.76%
0
2008
2%
2.15%
1%
0.83%
2009
2010
2011
Outstanding lease in the industry
2012 2013 2014
0%
Outstanding lease of ACBL
As a whole, ACB Leasing’s market share has grown since it was
established.
2.3.2.3 Report on ACB Leasing
Company (ACB Leasing)
The financial leasing market
has faced difficulties due to
weak credit demand in the
economy. However, thanks to
flexible business practices, as
of December 31, 2014, ACB
Leasing’s outstanding leases
30
Annual Report 2014
Chart 2: ACB Leasing’s revenue and profit growth
VND billion
180
158
160
140
120
111
120
96
100
80
60
40
40
14
20
-
18
1
2007 2008 2009 2010 2011 2012 2013 2014
Revenue
Profit before tax
ACB Leasing reorganized its organizational structure in the direction
of improving the quality of sales performance.
ACB Growth Fund (ACBGF),
managed by ACB Capital.
The ACB Growth Fund (ACBGF)
is a closed-end fund, which
was issued a certificate of
establishment and operation
(for 2011 - 2016) by the State
Securities Commission of
Vietnam (SSC) and traded
on the HOSE. Given market
conditions, ACBGF proposed to
close before maturity. ACBGF
was approved for delisting by the
SSC on December 31, 2014. As
of December 31, 2014, the net
asset value of ACBGF was VND
279.93 billion, equivalent to VND
11,660 per fund certificate.
In 2015, ACB Capital will focus
on portfolio management.
In 2015, ACB Leasing will focus on “Improving staff quality–
Controlling risks – Promoting sales activities.” ACB Leasing will
continue focusing on customers with strong financial positions, and
seeking customers in high-potential industries. It will also promote
sales packages, increase customer utility, and maximize the value of
each customer.
2.3.2.4 Report of ACB Fund Management Company (ACB Capital)
The market still faces many challenges, so ACB Capital continued
pursuing a risk-averse investment policy. It has focused mainly on
bank deposits with flexible terms, and has put effort into reducing
management costs and ensuring regulatory compliance.
As of end-2014, ACB Capital’s performance was as follows:
Revenue: VND 6.1 billion
Profit before tax: VND 3.8 billion
Available CAR (December 31, 2014): 532%
www.acb.com.vn
31
2.4 F i n a n c i a l 2.5 Shareholding structure, changes in
shareholders’ equity
review
For 2014, Group profit before tax
reached VND 1,215 billion, up by
17% YOY and completing 102%
of the profit plan. Interest and
non-interest income (especially
income from service provisions)
recorded strong annual growth
rates. In 2014, ACB made risk
provisions as per rules and
regulations, and proactively
made ample provisions for
legacy issues in order to
maintain a strong balance sheet.
In 2014, although the bank
spent money on two strategic
programs (upgrading the IT
system and phase 1 of the
bank’s
corporate
identity
renovation), operating costs
were strictly controlled. Costs
increased at a much slower
pace than total net income
(2.8% v.s, 7.2%). The cost-toincome ratio was manageable,
at 63.8%, down from 66.5% in
2013.
2.5.1Shares
The total number of outstanding common shares of the bank is
currently 937,696,506 (equivalent to VND 9,376,965,060,000 of
charter capital), where:
• Number of unrestricted shares:
• Number of restricted shares: 882,466,052 shares
55,230,454 shares
2.5.2 Shareholding structure (As of December
31, 2014.)
2.5.2.1 Major (*) and minor shareholders
Number
Shares owned
Shareholding
Major
shareholders
4
272,673,490
29.08%
Minor
shareholders
25,409
665,023,016
70.92%
Total
25,413
937,696,506
100%
(*) Pursuant to Article 4.26 of the Law on Credit Institutions 2010,
a “major shareholder of a credit institution means any shareholder
directly or indirectly owning five percent or more of the voting
shareholding of such shareholding credit institution.”
Group profit before tax
in 2014 reached
1,215
17%
billion VND
increase
compared with 2013
32
Annual Report 2014
2.5.2.2 Institutional and individual shareholders
Number
Institutional
shareholders
Shares owned Shareholding
207
528,809,343
56.39%
Individual shareholders
25,206
408,887,163
43.61%
Total
25,413
937,696,506
100%
Institutional
individual
2.5.2.3 Domestic and foreign shareholders
Number
Shares owned Shareholding
Domestic
shareholders
25,365
656,748,617
70.04%
Foreign
shareholders
48
280,947,889
29.96%
25,413
937,696,506
100%
Total
30%
70%
Domestic
2.5.2.4 Domestic and foreign shareholder breakdown
Number Shares owned
Shareholding
Domestic shareholders
- Institutional
foreign
190
248,054,122
26.45%
- Individual
25,175
408,694,495
43.59%
Sub-total (1)
25,365
656,748,617
70.04%
0.02%
26.45%
29.94%
43.59%
Foreign shareholders
- Institutional
17
280,755,221
29.94%
- Individual
31
192,668
0.02%
Sub-total (2)
48
280,947,889
29.96%
Total (1) & (2)
25,413
937,696,506
100%
Domestic & Institutional
Domestic & Individual
Foreign & Institutional
Foreign & Individual
2.5.2.5 Major foreign shareholders
Major foreign shareholders with more than 5% shareholding include the following:
No.
Name
1
Standard
01 Basinghall Avenue London, EC2V
Chartered APR Ltd. 5DD, United Kingdom
Banking
82,263,883
(8.77%)
2
Connaught
Investors Ltd.
Jardine House, 33-35 Reid St.,
Hamilton, Bermuda, United Kingdom
Investment
68,114,834
(7.26%)
3
Dragon Financial
Holdings Limited
C/O 1901 Me Linh Point Tower, 02 Ngo Investment
Duc Ke Street, Dist 1, HCMC, Vietnam
63,899,631
(6.81%)
4
Standard
Chartered Bank
(Hong Kong) Ltd.
32nd Floor 4-4A Des Voeux Road,
Central, Hong Kong
Banking
58,395,142
(6.23%)
-
Total
-
-
www.acb.com.vn
Address
Business
Shares owned
29.08%
33
2.5.3 Changes in shareholders’ equity
During the year, there was no change in the bank’s charter capital (VND
9,376,965,060,000). Pursuant to Decision No. 100/QĐ-SGDHN, dated
February 24, 2015 of the Hanoi Stock Exchange, ACB has listed VND
937,696,506 shares out of the total outstanding shares of 937,696,506.
2.5.4 Transaction of treasury shares
A total of VND 662,935,335,522 was reversed from the capital enrichment fund
to 2012 retained earnings (Shareholders’ Resolution dated April 26, 2013) and
2013 retained earnings were used to purchase the treasury shares.
VND 662,935,335,522 + VND 2,801,297,085 = VND 665,736,632,607 (1)
Transaction of treasury shares:
Number of
shares acquired
Repurchasing cost
2013:
16,181,131
VND 259,420,684,204
2014, tranche 1:
11,734,864
VND 196,775,259,608
2014, tranche 2:
13,506,613
VND 209,529,284,692
Total:
41,422,608
Total repurchasing cost:
Residual amount: (1) – (2)
VND 665,725,228,504 (2)
VND 11,404,103
2.5.5 Issuance of securities
During the year, there was no issuance of any type of securities.
The total number of treasury shares
acquired from 2013 - 2014 was
41,422,608
shares
34
Annual Report 2014
Board
Overview Of
ReportOf
ofDirectors’
the management
Business Activities
3.1 Business performance
In 2014, some of ACB’s outstanding activities
were as follows:
Perseverance and consistency were keys in
maintaining a healthy balance sheet with high
liquidity. Total asset size increased from VND
167 trillion to VND 180 trillion. Tier 1 separate
CAR and consolidated CAR were 10% and
14%, respectively. Liquidity was continuously
maintained at a good level. The loan-to-deposit
ratio held steady at around 75%. Liquid assets
accounted for the highest percentage of total
assets, of which government bonds accounted
for 15%.
The portfolio continued to be restructured, mainly
by divesting non-strategic investments of about
VND 600 billion, including divestments from
credit institutions. This boosted equity capital,
and allowed for a better distribution of funding in
core activities while still maintaining a strong CAR.
The bank was proactive in implementing the
restructuring plan, handling outstanding issues,
collecting and making provisions for loans, bonds,
and receivables for the group of six companies;
loans and bonds of a state-owned enterprise; and
deposits at a joint stock commercial bank.
ACB actively handled debt in order to minimize
the impact of Circulars No. 02/2013 and 09/2014
on asset quality and income. Non-performing
loans, provisions, and debt sales were carefully
monitored. As of the end of 2014, ACB sold bad
debts of more than VND 1,000 billion to the
VAMC. The NPL ratio was below 2.2%, much
lower than the industry average.
www.acb.com.vn
Interbank activities were restructured to comply
with the risk management system and ACB’s new
risk appetite; therefore, the balance of interbank
lending was stabilized at VND 7-8 trillion.
Interbank lending and deposits were targeted to
take advantage of cheap, short-term capital.
3.2 Financial review
3.2.1Assets
Assets were made up primarily of outstanding
loans to individuals and corporate customers.
In 2014, due to weak capital absorption in the
economy, and even though interest rates remained
low, credit growth for the industry in general and for
ACB in particular was quite a challenge. ACB has
adopted multifaceted strategy to maintain stable
and secure credit growth. By the end of 2014,
outstanding credit had reached VND 116,324
billion, up by 8.5% YTD, and completing 97% of
the plan. New NPLs fell significantly, bringing the
NPL ratio down to 2.17%, down from 3.02% in the
previous year.
3.2.2 Accounts payable
Liabilities mainly are deposits from individuals
and corporate customers. In 2014, ACB skillfully
managed deposit interest rates in order to
reduce capital costs, and achieved growth by
improving the average term structure to maintain
and develop stable funding at low cost. As of
December 31, 2014, the total volume of customer
deposits reached VND 154.6 trillion, up by 12%
YTD and meeting 98% of the plan.
35
Board Of Directors’ Overview Of
Business Activities
3.2.3Income,
cost, ROE
Income growth
2014
3.2.3.1Income:
After two years of decline, ACB
entered the recovery phase.
2013
2012
2011
2010
0
2,000
4,000
Net interest income
6,000
8,000
Non-interest income
3.2.3.2 Income mix:
The income mix in 2014 was
stable YOY. Net interest income
to total income of the bank was
over 21%, its highest level since
2011.
Net interest income
Non - interest income
Cost efficiency
3.2.3.3 Cost:
In 2014, operating costs
increased 3% YOY, below
the 7% rise in income due to
investments and the debt
handling of legacy issues, so the
cost-income ratio was reduced,
to 63.8%. According to the 2015
plan, the bank will continue to
carefully monitor operating costs
and boost revenues. The goal is
to cut this ratio to below 60%.
66.5%
73.2%
4,000
63.8%
3,500
2,500
39.3%
50%
41.2%
4,271
2,000
40%
3,759
3,861
1,500
3,147
1,000
500
Cost
70%
60%
3,000
0
36
80%
4,500
20%
2,161
2010
30%
10%
2011
2012
2013
2014
0%
Cost/ income
Annual Report 2014
Business Activities
3.2.3.4 ROE:
Returns before tax on average
equity and average assets were
both improved YOY.
0.7%
2014
0.6%
2013
2012
2011
2010
9.8%
8.2%
ROA
ROE
0.5%
8.5%
1.7%
36.0%
1.7%
28.9%
2009
2.1%
31.8%
0.0%
3.2.3.5 Earnings per share
10.0%
20.0%
30.0%
40.0%
EPS
3.50
3.00
3.28
2.75
2.86
2.50
2.00
1.50
1.00
After two
years of
dicline, ACB's
income
entered the
recovery
phase.
www.acb.com.vn
0.67
1.02
0.87
0.50
-
2009
2010
2011
2012
2013
2014
37
Business Activities
3.3
Improvement
in
organizational structure,
policy and management
In 2014, ACB made good progress in improving
technical processes related to legal documentation,
credit approval, debt handling, etc.
A completed project on the automation of legal
documentation helped to shorten processing
times, minimize costs, and limit operational risk.
The Centralized Credit Approval Center was
established to standardize processes and improve
the quality of decisions. Regional and sub-regional
debt tackling teams were established to quicken
debt collection. Back office operations were
improved, especially the safety of cash in vaults.
ACB introduced customer service standards
designed to enhance the quality of the customer
experience.
2014 was a pivotal year on the road to modernizing
the bank’s IT system. The 14-years-old core
banking platform, TCBS, was replaced by the new
DNA in August 2014. This change laid ground for
the development of new products and services.
ACB has successfully completed phase 1 of the
project to upgrade both ACB Online and the
mobile app, turning both into sales channels with
modern, user-friendly interfaces.
ACB continued to strengthen the branch network.
Among the tasks completed include: the grouping
of branches and sub-branches into clusters, and
clusters into a region, moving sub-branches into
new clusters; provision of guidance on targeted
segments (households and/or enterprises);
relocation of selected branches, along with
renovation of existing branches with the new
corporate identity.
38
3.4 Future development
plan
After Stage 1–“Fixing the basics”–ACB has
continued with Stage 2–“Building capabilities”–on
its strategic roadmap. Some of the tasks for 2015
are as follows:
To adjust credit policy and collateral appraisal
regulations, making them more appropriate to
the actual circumstances where ACB is doing
business, in order to facilitate credit growth.
To improve the quality of customer service in
deposit taking activities and provision of other
services.
Annual Report 2014
Business Activities
To closely monitor operational process risks,
especially those related to cash vault services;
improve the FATCA risk management and antimoney laundering systems; and apply Basel II.
To carefully implement solutions regarding debt
handling, ensuring that non-performing loans
stay below 3.0% of the total outstanding loans.
To develop innovative applications of the core
banking platform, DNA; upgrade the website, the
mobile app, the ATM network, etc.
www.acb.com.vn
To continue strengthening the branch network,
including renovation of branch interiors and
application of new transactional processes, to
provide a better experience for customers.
3.5 Management’s
explanation of the audit
opinion
There are no financial statement disclosures that
KPMG Limited Vietnam finds unacceptable.
39
Board of Directors’ overview of
business activities
4.1 Board of Directors’
overview of business
activities
Positive changes in the macro economy and a
flexible monetary policy have created a more
stable and favorable environment for banking
operations. Total assets, equity capital, and
charter capital for the whole system increased
12.2%, 4.36%, and 3.29%, respectively. However,
ROE and ROA for the group stood at 5.49%
and 0.51%, respectively, well below the regional
industry averages. Bad debts have been resolved
by various means, including the sale of bad debts
to the VAMC, but has progressed more slowly than
expected. It is in this context that ACB worked
to meet its 2014 financial targets. Notably, ACB
maintained a robust asset growth rate, a strong
balance sheet with improved liquidity, and kept its
CAR at a high level.
and No. 36/2014, the minimum CAR (separate
and consolidated) is 9%. The ratios listed above are
evidence of ACB’s determination to maintain a well
capitalized position.
Asset quality: In 2014, ACB followed a cautious
lending policy, and also developed a number of
solutions to maintain stable credit growth while
screening out potential bad debts. Additionally,
the bad debt issue has been effectively tackled:
(i) loan loss provision increased 14%, in line with
business growth; (ii) the NPL ratio fell to 2.17%,
down from 3.1% at end-2013.
Profit: ACB met the profit targets, and made ample
provision in accordance with rules & regulations and
the restructuring roadmap. Some key results are as
follows:
• Pre-tax profit increased 17%.
4.2Board of Directors’
overview
of
the
Management’s operations
• Average ROE and ROA (before tax) were 9.8%
and 0.7% respectively, thanks to the growing gap
between the revenue growth rate (7%) and the
cost growth rate (3%).
The Management implemented a strategy of
prudent growth and tight supervision of asset
quality. In the context of a delicate economy and
a fragile banking system, the bank obtained the
following results:
• Net interest margins were kept at 2.7%, leading
to an increase of 4% in net interest income in
spite of pressure to lower lending interest rates.
Growth: Total assets, outstanding loans, and
customer deposits increased 8%, 9%, and 12%,
respectively.
Capital adequacy ratio: At end-2014, TieR-1
CAR and total capital were 9.8% and 14.1%,
respectively. According to Circulars No. 13/2010
40
• Non-interest income increased 19%, with forex
trading growth sufficient to offset the decline
in income from bond trading. Fee income also
increased 19% from 2013.
Liquidity: ACB managed to maintain a strong
balance sheet, characterized by high liquidity;
the loan to deposit ratio stood at 75%, below the
regulatory threshold of 80%.
Annual Report 2014
Board of Directors’ overview of
business activities
4.3 Board of Directors’
directions
The Board of Directors directs the Management
to proactively identify business opportunities in
line with sustainable growth, tightly manage costs
& risks (especially credit and operational risks),
strictly implement the restructuring plan, and
strengthen the debt resolution operation, in order
to ensure reasonable asset growth, good asset
quality, and improve returns.
The Board of Directors has approved key financial
targets for 2015, including the growth rates of total
assets, customer deposits, outstanding loans,
profit, etc., which are presented in Article 1.5.
www.acb.com.vn
The Board of Directors also provides instructions
regarding the implementation of projects aimed
at enhancing the bank’s capabilities, including
IT infrastructure, human resources, operational
efficiency, etc.
Profit before tax increased
17%
41
05
CORPORATE GOVERNANCE
5.1.
5.2.
5.3.
The Board of Directors
The Supervisory Board
Some is issues in relation to directors and offices
It is the perfect balance between pungent (but not
hot and spicy) and sweet tastes that distinguishes bell
peppers from other chili peppers.
Bell peppers can turn a dish into a colorful party of flavors with
their delicious taste, high nutrition and a variety of different
colors when being cooked with other foodstuffs.
The support of ACB has added
to Mr. Duong Dinh Thanh Hoa’s
passion for offering customers
high-quality products and
encouraged him to invest in his
vegetable and flower garden in
Dalat.
Corporate Governace
5.1 Board of Directors (Term of office 2013 - 2017)
5.1.1 Composition
Members of the Board of Directors (term of office 2013-2017) were elected by the General Meeting of
Shareholders on April 26, 2013. The Chairman and Vice Chairman of the Board were elected the same day.
No. Name
Title
1 Tran Hung Huy
Chairman
2 Nguyen Thanh Long
Vice Chairman
3 Andrew Colin Vallis
Vice Chairman
4 Alain Xavier Cany
Director
5 Julian Fong Loong Choon
Director
6 Dinh Thi Hoa
Independent Director
7 Tran Mong Hung
Director
8 Tran Trong Kien
Director
9 Dang Thu Thuy
Director
10 Dam Van Tuan
Director
5.1.2 Resumes
Mr. Tran Hung Huy
Chairman
• Chairman of the Personnel Committee, members of the Strategy
Committee and the Investment Committee
• DBA, Golden Gate University, USA
Mr. Nguyen Thanh Long
Vice Chairman
• Chairman of the Investment Committee, member of the Personnel Committee
• BA in commerce, Van Hanh University, Saigon
• 40 years’ experience in finance, banking, and trading (ACB: since 2012)
46
Annual Report 2014
Corporate Governance
Mr. Andrew Colin Vallis
Vice Chairman
• Chairman of the Risk Committee, Chairman of the Strategy Committee,
and Vice Chairman of the Investment Committee
•BA in Law, Nottingham University, UK
Mr. Alain Xavier Cany
Director
• Member of the Strategy Committee
• Baccalaureate, Academie de Paris, France
Mr. Julian Fong Loong Choon
Director
• Member of the Strategy Committee
• MBA in Finance and Accounting, McGill University in Quebec, Canada.
Ms. Dinh Thi Hoa
Independent director
• Member of the Risk Committee and the Personnel Committee
• MBA, Harvard Business School, USA
• 27 years’ experience in finance, banking, commerce and services
(ACB: 1998 – 2007, since 2012)
Mr. Tran Mong Hung
Director
• Vice Chairman of the Risk Committee and member of the Personnel
Committee
•Bachelor of Economics (Banking), University of Economics, HCMC
•35 years’ experience in finance, banking, commerce and services (ACB:
since 1993)
www.acb.com.vn
47
Mr. Tran Trong Kien
Director
• Vice Chairman of the Strategy Committee and member of the
Investment Committee
• MBA, University of Hawaii, USA
• 20 years’ experience in finance, banking, commerce and services (ACB:
since 2012)
Ms. Dang Thu Thuy
Director
• Vice Chairperson of the Personnel Committee
• Bachelor of Economics, HCMC University of Economics
Mr. Dam Van Tuan
Director
• Member of the Personnel Committee and the Strategy Committee
•MBA in Finance and Banking, University of Applied Sciences
Northwestern Switzerland.
5.1.3 Activities of the Board of Directors
In 2014, the Board of Directors conducted six regular meetings, made decisions by written consent
three times, and issued 30 decisions regarding financial issues, organizational mechanisms, internal
terms of reference, appointments of officers of the Bank, its subsidiaries, etc. The activities of the Board
of Directors are reported to government authorities semiannually and annually.
5.1.4 Activities of the independent director
During the year, the independent director attended all meetings of the Board of Directors and relevant
committees.
48
Annual Report 2014
5.1.5 The board committees
5.1.5.1 Activities of the Board Personnel
Committee
The Board Personnel Committee (BPC) consists
of seven members, chaired by Mr. Tran Hung Huy,
Chairman of the Board of Directors.
In 2014, the BPC/Standing BPC made decisions
relating to the following three areas:
Appointments and re-appointments of managers,
including: heads and deputy heads of divisions;
departments under the oversight of the CEO; and
at branches & sub-branches.
Compensation policy, including: revision of
criteria for assessment of branch performance
and payment of performance bonuses for 2014;
adoption of a special pay scheme to facilitate the
recruitment of sub-branch managers in some
particular areas; and re-application of attendance
fees for members of the Board Credit Committee
and Management Credit Committee.
Organizational issues, including: reshuffling of
ACB Leasing management; re-organizing the
governance structure of ACB Assets; amendments
to the organization and operation of the Assets
and Liabilities Committee (ALCO) and the Bad
Debt Write-off Committee; restructuring the
collateral appraisal process; and appointment of
bank representatives at investee companies, etc.
5.1.5.2 Activities of the Board Risk Committee
The Board Risk Committee (BRC) provides
governance oversight for the Board of Directors
regarding risk management activities, and ensures
that the bank has an effective risk management
framework, policies and processes.
Vallis, Vice Chairman of the Board of Directors.
The BRC held six meetings in 2014 (once every
two months).
In 2014, the BRC focused on five key risk
priorities: (i) a framework and implementation
plan for an end-to-end process for managing the
collection of bad debts, (ii) business continuity
management (BCM), (iii) data governance
framework, (iv) internal crime or dishonesty, and
(v) regulatory compliance.
Some specific and important areas that the BRC
discussed and made decisions on in order to
improve the bank’s risk management practices
included: issuing a BCM framework to ensure the
bank’s on-going business operations; enhancing
the new core banking system (DNA); issuing and
implementing a fraud risk policy; strengthening
the anti-money laundering (AML) system and
relevant processes & organizational structures,
in accordance with international practices and
in compliance with the AML Law; revising and
preparing the plan to implement Basel 2 standards
from 2015 to 2018, as per the State Bank of
Vietnam’s schedule; and ensuring compliance
with new laws, including Circular No. 02/2013/TTNHNN on asset classification, provisioning, and
the use of provisions against risks in the activities
of credit institutions, & Circular No. 36/2014/
TT-NHNN, which stipulates prudential ratios for
credit institutions.
5.1.5.3
Activities of the Board Credit
Committee
The Board Credit Committee (BCC) consists of 15
members. The BCC conducts plenary meetings
to review credit policies, procedures and limits;
sub-groups of the BCC meet daily to grant
credit approval.
As of December 31, 2014, the BRC consists of
five members, and is chaired by Mr. Andrew Colin
www.acb.com.vn
49
In 2014, the BCC conducted 42 plenary meetings,
92 meetings of the standing BCC and 149 subgroup meetings to address credit applications
and issues. The BCC made decisions on credit
policies, products and limits in accordance with
market conditions, in order to ensure credit
growth and control risk. The BCC transferred the
task of handling non-performing loans to the Bad
Debt Write-off Committee.
In 2015, the BCC will further empower the
Management Credit Committee and Credit
Approval Center to approve credit applications, and
will instead spend more time focusing on the credit
growth policy and credit portfolio management.
5.1.5.4Activities of the Board Investment
Committee
The Board Investment Committee (BIC) is charged
with assessing proposed investment projects
before reporting to the relevant decision-making
authorities. The BIC also makes assessments of
the investment portfolio, proposes solutions to
address the pertinent risk issues, and nominates
representatives to investment projects and
investee entities.
5.1.5.5Activities of the Board Strategy
Committee
The Board Strategy Committee (BSC) acts in an
advisory capacity for the Board of Directors regarding
planning and executing long-term business strategy,
and works under the authority of the Board of
Directors.
As of December 31, 2014, the BSC had seven
members, chaired by Andrew Colin Vallis, Vice
Chairman of the Board of Directors. The BSC held
five meetings in 2014, including a “Board Strategy
Day” on August 26, 2014.
The BSC guides and supervises strategic projects
to ensure that ACB is on track to deliver its five-year
business strategy (2014-2018). The BSC works
closely with the Project Management Office, which
is responsible for delivering key projects to transform
and enhance the bank’s operations. In 2014, some
of the key projects designed to improve ACB’s
performance management tools: the relocation
and refurbishment of branches, branch governance
restructuring, the establishment of a domestic
payment center, automation of legal documentation,
and a project to examine a centralized and
decentralized operation model.
The BIC consists of seven members, a
combination of three directors and four senior
officers (the chief executive officer, the chief
financial officer, and the chief risk officer), chaired
by Mr. Nguyen Thanh Long, Vice Chairman. The
BIC conducts monthly or impromptu meetings at
the request of its Chairman.
In 2014, the BIC decided to divest from several
companies, earning nearly VND 108 billion for
the bank. In 2015, the BIC intends to continue
reviewing portfolios and is considering divestiture
from a number of investment projects that have
achieved their expected profit, while exploring for
further investment opportunities.
50
Annual Report 2014
5.1.6 The directors of ACB participated in various seminars on corporate
governance, and have practical experience in managing financial
institutions and non-bank organizations as directors and/or senior
executives.
5.2 The Supervisory Board
5.2.1Composition
Members of the Supervisory Board (terms of office 2013 – 2017) were elected by the General Meeting
of Shareholders on April 26, 2013. The Head of the Supervisory Board was elected the same day.
No.
Name
Title
Responsibility
1
Huynh Nghia Hiep
Head
Overall responsibility for the operations of the
Supervisory Board and directs the Internal Audit
Department.
2
Hoang Ngan
Full time
member
Overseeing the accounting operation and auditing the
bank’s financial statements.
3
Phung Thi Tot
Full time
member
Overseeing compliance with internal expense rules
and auditing the bank’s financial statements.
4
Nguyen Thi Minh Lan
Full time
member
Monitoring corrective actions recommended by state
supervision agencies & the Internal Audit Department,
and overseeing the actions of internal shareholders
and their related parties.
5.2.2Resumes
Mr. Huynh Nghia Hiep
Head of the Supervisory Board
• Bachelor of Economics (major in banking), University of Economics, HCMC
Ms. Hoang Ngan
Member
www.acb.com.vn
51
Ms. Phung Thi Tot
Member
Ms. Nguyen Thi Minh Lan
Member
5.2.3 Activities of the Supervisory
Board
The Supervisory Board monitors the Board of
Directors and the Management for compliance
with state rules & regulations as well as the bank’s
charter. In addition, the Supervisory Board is
responsible for internal audits, assessment of
the bank’s financial statements, maintaining the
accuracy and validity of accounting operations,
etc. It controls operating costs by monitoring
compliance with internal expense rules, and
verifying whether actualized costs are within
approved limits.
52
During the year, the Supervisory Board conducted
six meetings, and attended all meetings of
the Board of Directors. It provided opinions on
business plans, compliance with regulations on
prudential ratios, closure of gold positions, bad
debt settlement, and operational restructuring.
In addition, the Supervisory Board also monitored
developments in key areas, including deposit
taking, applications of funds, the foreign exchange
position, loan quality, etc.
Annual Report 2014
5.2.4 Activities of the Internal
Audit Department
In 2014, the Internal Audit Department (IAD)
conducted operation audits at 81 branches, 264
sub-branches, and nine units of the headquarters;
carried out 86 spontaneous reviews at the
request of the Chairman of the Board of Directors,
the Supervisory Board and the President; and
reviewed 211 NPL accounts at the request of
the Board Credit Committee and the Bad Debt
Write-off Committee. The IAD conducted 6,712
spontaneous checks of vault cash balances at
345 branches and sub-branches, and 1,096
checks of cash vault safety. It also conducted
distance monitoring by using a set of tools to
monitor compliance levels.
After the audits, the IAD made numerous
corrective action requests to the offices with
errors. It made several recommendations on
the improvement of technical processes to
strengthen internal control system, on the
accountability of the related employees.
The IAD is also the main contact point for
reviewing and providing required documents
to the state supervision agencies and provides
guidance to offices committing errors regarding
corrective action.
5.3
Some
issues
in
relation to directors and
officers
5.3.1Remuneration for directors
and officers
See Item 41 “Dealing with related party
transactions and balances” in the 2014
5.3.2Information on ACB stock
transactions of the directors and
officers et al
In 2014, there were no stock transactions by the
directors, members of the Supervisory Board,
the Management, or major shareholders & their
related persons, except for the following case:
One person related to the Management conducted
a sale of ACB shares. The detail is as follows:
Number of
transactions
Volume of shares
Buying
N/A
N/A
Selling
1
1,356,183
Total
1
1,356,183
5.3.3Economic
or transactions
stakeholders
contracts
with internal
None.
5.3.4The
implementation
of regulations on corporate
governance
ACB makes corporate governance reports every
six months, as per Circular No. 52/2012/TT-BTC
dated April 05, 2012.
www.acb.com.vn
53
Overview Of The Vietnamese
Banking Industry In 2014
6.1
Offshore
and
onshore macroeconomic
background
6.1.1. In 2014, the world economy
Faced myriad complex geopolitical challenges.
“Instability,
insecurity,
and
uncertainty”
accompanied by long-term hot events, such as
the Russia-Ukraine crisis, the expansion of the
Islamic State, the Ebola epidemic, instability in the
“Biển Đông”, the sudden and sharp decline in oil
prices, etc., had a negative impact on economic
recovery.
The US is a leader in terms of growth, with a slow
but firm recovery, while China is facing its lowest
growth rate in the past quarter century. The
Japanese economy has prospered a little under
the new economic policies of Prime Minister
Shinzo Abe, but faced two consecutive quarters of
negative growth due to a rise in the consumption
tax. The eurozone has faced prolonged stagnation,
with high unemployment rates and the increasing
risk of deflation.
Some countries and key economic regions
loosened monetary policies that were already
loose in non-traditional ways. The Fed kept interest
rates low (close to zero), and while the QE3 ended
in October 2014, interest rates have not risen as
expected. The ECB moved to a negative interest
rate, and pumped out more than EUR 1 trillion to
purchase government bonds, following previous
capital injections designed to create liquidity within
the banking system. Japan increased government
bond purchases, from JPY 50 trillion to JPY 80
trillion per month, and delayed another rise in the
consumption tax. China cut interest rates twice
and also reduced required reserve ratios, etc.
54
The World Bank’s economic outlook published in
January 2015 reported that the global economic
recovery was slow in 2014, and 2015 may not be
much better. Consequently, the global economy
was estimated to go from 2.6% growth in 2014
to 3.0% in 2015, which broken down is 2.4%
and 3.0% for the US; 0.2% and 1.2% for Japan;
7.4% and 7.1% for China; 0.8% and 1.1% for the
eurozone; 6.9% and 6.7% for East Asia Pacific
(which experienced growth of 7.1% in 2013).
6.1.2. Domestic economy
Unlike the global economy, Vietnam’s economy
in 2014 showed a strong quarter-by-quarter
recovery, well above forecasts by many institutions
or experts, and higher even than the target set
by the Government at the beginning of the year.
Inflation was controlled, and macroeconomic
stability was maintained thanks to the
government’s careful management; on the other
hand, aggregate demand (especially domestic
demand) and personal consumption increased
slowly. Raw materials prices fell significantly
and foreign political problems had a much less
negative impact on the Vietnamese economy.
Vietnam’s economy grew by 5.98% in 2014. Key
sectors had high growth rates YOY. The Index of
Industrial Production (IIP) increased by 7.6% (5.9%
YOY); agriculture, forestry and fishery increased
by 3.49%; total retail sales and consumer service
revenue, excluding inflation, increased by 6.25%;
exports increased by 12%. Meanwhile, the trade
surplus reached USD 1 billion.
Although the foreign investment sector was
still the key factor driving growth, the domestic
sector also began to see breakthroughs in
businesses associated with production and
export processing, or businesses working with
FDI enterprises. The real estate market warmed
Annual Report 2014
up, consumer confidence improved, and the
Purchasing Managers Index (PMI) stayed above
50 throughout 2014.
The CPI fell significantly, especially towards
the end of the year. CPI increased by 1.84% in
December 2014, 4.06% YOY, achieving just half
of the target (about 7-8%). This was the lowest
inflation level in ten years, since 2004’s 3.0%.
6.2. Monetary policy and
the banking industry
In 2014, the SBV introduced stringent operational
regulations and flexible monetary policies in order
to strengthen the macro-economy and spur
economic growth.
Money supply was allocated in a logical manner,
ensuring stable liquidity for the economy & the
banking system, and to increase foreign exchange
reserves. This has played an important role in
lowering deposit and lending interest rates, raising
outstanding loans, and keeping the inflation rate
manageable.
M2 in 2014 grew 16% (the target was 16-18%);
credit outstanding grew 12.62% as of December
22, 2014 (the target was 12-14%); deposit
www.acb.com.vn
interest rates dropped 1.5-2% from end-2013,
but total deposits still increased 16.3%; average
lending interest rates dropped approximately 2%,
bringing interest rates back to 2005-2006 levels.
The SBV trimmed operational interest rates and
lowered the deposit ceiling rate for VND (for terms
of less than six months) and the deposit ceiling
rate for USD for the whole of 2014. Additionally,
the SBV decided to lower commercial banks’
lending interest rates for certain priority sectors,
such as agriculture and exports. As of end-2014,
the overnight rate applied to electronic interbank
payments was 7.5%; the refinancing rate was
6.5%; the rediscount rate was 4.5%.
The exchange rates between the VND and other
strong currencies, notably the USD, have been
strictly monitored along with the supply and
demand for foreign currencies and other related
factors. The aim has been to raise confidence
in the dong, mitigate the risk of dollarization,
promote imports and exports, and increase
state foreign exchange reserves. At end-2014,
the USD/VND exchange rate rose within the
permitted threshold of 1.4%. There were no
significant changes recorded in either official or
unofficial markets.
55
Banking restructuring has yielded a number
of improvements. Notably, the SBV issued
regulations and guidance in compliance with
international practices (for instance, Circular No.
36/2014, effective from February 01, 2015). The
SBV also accelerated bad debt resolution by selling
NPLs to the VAMC and making risk provisions. As
of September 2014, the NPL ratio in the banking
industry was 5.2% according to data provided by
the BSA, and 3.4% according to data provided
directly by credit institutions. It is expected that
the NPL ratio will fall below 3% by end-2015. The
SBV is seeking practical ways to: (1) establish a
56
more favorable legal-financial framework to write
off bad debts, and (2) impose drastic measures to
restructure weak commercial banks. The case of
VNCB (which was acquired by the SBV at a price
of zero VND per share) turned out to be a positive
moment for banking system stabilization.
Improvements in the macro economy, flexible
monetary policies, and recent positive results
of banking restructuring have contributed to a
stable business environment, thus helping to
buoy credit activities. Some commercial banks
have managed to boost profits thanks to a
Annual Report 2014
number of breakthroughs in deposit taking and lending.
Some poorly performing banks have attempted to tackle
legacy issues and establish a solid foundation from which
they can pursue sustainable development.
NIM
2.84%
7.79%
0.65%
ROE
Liquidity of the banking system has become more
abundant. It is probable that lending activities will increase
in line with customer demand at lower interest rates, so
competition in the banking industry may get tougher. In
addition, more attention is being paid to strengthening
bank management and the need for quality human
resources.
ROA
At end-2014, total assets of both the entire banking
system and non-bank financial institutions (including
finance companies) were up 13%; net interest income
was up 10.5%; pre-provision profit was up 2.8%; provision
costs for credit risks were up 5.9%; and profit after tax was
up 9.2% relative to 2013.
NIM was 2.84% (2013: 2.92%), ROE stood at 7.79% (2013:
7.59%), while ROA achieved 0.65% (2013: 0.67%).
www.acb.com.vn
57
07
AWARDS, HIGHLIGHTS OF THE YEAR,
CHARITABLE ACTIVITIES IN 2014
The taste of tea is a subtle combination of materials
from nature and the clever processing techniques of
human beings. The most tender tea leaves are the
best choice when harvesting.
Pure tea becomes an invitation for human
communication. Each teacup is a story filtered
with typical features of traditional culture, spirit,
and cuisine.
For more than 22 years, ACB has
brought the highest satisfaction
by serving such filtered values
to Mr. Ho Tat Va (living in Lam
Ha - Lam Dong Province) and his
customers.
Awards, Highlights Of The Year,
Charitable Activities In 2014
7.1 Awards
Awards
Organizations
Certificate of merit to ACB for excellent performance in
People’s Committee of
the “Lantern festival - First Full Moon of the New Year, Giap District 5
Ngo Spring 2014”.
Decision No.
1035/QĐ-UBND
dated February 26,
2014
Letter of thanks to ACB for financing the construction of
People’s Committee of Tien
My Luong Secondary school, Cai Be District, Tien Giang
Giang Province
Province.
Certificate of merit to ACB for excellent social work and
social welfare in 2013
District 3
19/QĐ-UBND
dated March 06,
2014
Certificate of merit to ACB for excellent crime
HCMC Police Department
prevention in 2014
80/QĐ-KT
dated June 20, 2014
Letter of thanks to ACB for donations to the enterprises
University of Economics
and students scholarship fund for 2014-2015 school year.
and Law
Letter of thanks to ACB for financing the 2014 career fair
University of Economics,
for students of the banking faculty.
HCMC
Letter of thanks to ACB for financing the construction of
Tan Giang Primary school (Cao Bang City)
Cao Bang City
Letter of thanks to ACB for financing medical examinations
Fatherland Front of Oc Eo
for the poor in Oc Eo Town, An Giang Province.
Town, An Giang Province
Letter of thanks to ACB for financing medical
examinations for the poor in Ngoc Thuan Commune,
Ngoc Thuan Commune
September 19, 2014
October 12, 2014
December 08, 2014
December 13, 2014
Giong Rieng District, Kien Giang Province.
examinations for the poor in Thap Muoi District, Dong
Thap Muoi District
December 24, 2014
Thap Province.
examinations for the poor in Thanh Binh Commune,
Thanh Binh Commune
January 05, 2015
Trang Bom District, Dong Nai Province.
Hoc Mon District Red Cross
January 09, 2015
January 10, 2015
examinations for the poor in Xuan Lam Commune, Song
Xuan Lam Commune
examinations for the poor in Xuan Thoi Thuong
Commune, Hoc Mon District, HCMC.
Cau District, Phu Yen Province.
Letter of thanks to ACB for its contribution to the Fund for
Intellectual Women
Beloved Truong Sa, launched by the Fatherland Front of
Association, HCMC
November 02, 2014
HCMC.
Letter of thanks to ACB for a donation to the Fund for the
Fatherland Front of HCMC
November 24, 2014
Poor, Ho Chi Minh City
62
Annual Report 2014
Awards
Organizations
Most Improved Retail Banking In Asia Pacific
2015
The Asian Banker
The Vietnam Outstanding Banking Awards
2014
International Data Group (IDG) In
Collaboration With The Vietnam
Banks Association (VNBA)
Vietnam’s Favorite E-bank Award in the My
E-bank Awards 2014
Vnexpress
The Straight Through Processing Award
JP Morgan Chase
Top 20 Banks in terms of impeccable service
voted by customers for ACB’s utility allowing
customers to verify export documents on
ACB Online
The Vietnam Standards And
Consumer Association, Nguoi Tieu
Dung Newspaper
7.2 Notable events
Date
27/01
10/02
31/3
14/4
12/6
21/7
25/7
21/8
29/8
11/11
www.acb.com.vn
Highlights
Inauguration of Dong Xuan Sub-branch’s new building (Hanoi)
Inauguration of Nam Saigon Branch’s new building (HCMC)
Inauguration of Binh Tay Branch’s new building (HCMC)
Annual General Meeting of Shareholders 2014
Inauguration of Saigon Branch’s new building (HCMC)
Inauguration of Ha Thanh Branch’s new building (Hanoi)
Launch of the ACB2PAY Gateway
International payment seminar for Commercial Banking Division staff in
Ho Chi Minh City
International payment seminar for Commercial Banking Division staff in
Hanoi
Inauguration of the Dong Do Branch (Hanoi); Co-operation ceremony on
lending to customers of Golden Land project (Hanoi)
63
7.3 Charitable activities
In 2014, ACB funded an amount of :
VND
10,220,400,000
for community programs and activities
No. Activities
Amount
I
Educational funding programs
1
Scholarships for pupils and students in HCMC and Binh Phuoc province
230,000,000
2
Grant to Study Promotion Fund for pupils and students in HCMC, Da
Nang, Tay Ninh, Ben Tre, Phu Yen, Binh Dinh, Quang Ngai provinces
444,000,000
3
Donation to Duc Thang primary school (Bac Giang Province)
200,000,000
4
Construction of Tan Giang primary school (Cao Bang City)
5
Donation to Truong Bon historic site (Nghe An Province)
II
Health and social work
1
Blood drives in HCMC, Da Nang, Hanoi, Binh Duong and Khanh Hoa
provinces
510,000,000
2
Financing a program for medical examinations for children and poor
people in Ho Chi Minh City, An Giang, Kien Giang, Dong Thap, Dong Nai,
Phu Yen provinces
700,000,000
III
Care for the poor
2,205,000,000
1
“ACB Spring Tree 2014” festival for children of poor families in provinces
where ACB branches are located
1,175,000,000
2
Donation to the Fund for the Poor in HCMC, Daklak, Tra Vinh, Bac Lieu
and Nghe An provinces
563,000,000
3
Relief for victims of natural disasters in Tra Vinh, Soc Trang and Binh Dinh
provinces
467,000,000
IV
Others
581,400,000
1
Contribution to the Fund for Beloved Truong Sa
190,000,000
2
Other activities
391,400,000
Total
64
6,224,000,000
5,150,000,000
200,000,000
1,210,000,000
10,220,400,000
Annual Report 2014
ACB is aware that it has a role
to play in the development
of the broader community.
The Bank aims to become the
leading bank in Vietnam based
on its core values: integrity,
prudence, innovation, balance,
and efficiency. ACB pursues
social responsibility through
commitment to the following
related groups:
Customers: ACB is committed to
listening to and meeting the needs
of customers, while providing
exceptional quality service.
Staff: ACB is committed to
offering career opportunities
for employees, and creating
jobs for the community; building
a friendly working environment;
helping employees be the best
they can be while meeting
ACB’s need for talent; and
offering good benefits based on
qualifications and performance.
Shareholders: ACB is committed
to being a financial institution
that manages shareholders’
capital and the bank’s assets
transparently, effectively and
sustainably, in order to protect
and enhance the value offered
to shareholders.
www.acb.com.vn
State authorities: ACB is committed to complying with all
business laws and regulations, fully meeting all tax obligations, and
contributing to the stability & development of the banking industry
and the rest of the community.
Communities: ACB is committed to supporting charitable activities
in the fields of education, public healthcare, policy beneficiaries and
the poor people, and natural disaster relief, according to available
funding.
65
08 FINANCIAL STATEMENTS
8.1.
8.2.
Independent auditors’ report
Audited financial statements
8.1 Independent auditors’ report
See the Independent auditors’ report to the shareholders of Asia Commercial Bank by
KPMG Vietnam in 2014 the 2014 consolidated financial statements.
8.2 Audited financial statements
See 2014 financial statements as attachment.
Rice is the most widely consumed staple food of over
half the world’s population. Rice cultivation and harvesting are complex activities that require a series of
processes to achieve the finished product.
Rice dishes with thousand-year-old cultural values have
greatly contributed to enriching and fortifying the culinary arts
of Vietnam and the rest of Asia.
ACB takes pleasure in helping
customers produce an abundant
crop and creating shared values
based on a deep understanding
through years of experience.
We would like to show our
appreciation to Mr. Bui Van
Nghiem (living in An Giang
Province), who has chosen ACB
to be a reliable companion for his
agricultural business.
Consolidated financial statements
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
Corporate information 71
Statement of the Board of Management72
Independent Auditors’ report 74
Consolidated balance sheet
(Form B02/TCTD-HN)76
Consolidated statement of income
(Form B03/TCTD-HN)
78
Consolidated statement of cash flows
(Form B04/TCTD-HN)
79
Notes to the consolidated financial statements
(Form B05/TCTD-HN)
70
81
Annual Report 2014
Establishment and
Operation Licence No.
0032/NH-GP 24 April 1993
The Establishment and Operation Licence was issued by the State Bank
of Vietnam and is valid for 50 years from the licence date.
Business Registration
Certificate No.
0301452948
19 May 1993
The Business Registration Certificate has been amended several times,
the most recent certificate dated 3 September 2014. The Business
Registration Certificate was issued by the Department of Planning and
Investment of Ho Chi Minh City.
Board of Directors
Mr. Tran Hung Huy
Chairman
Ms. Dang Thu Thuy
Mr. Tran Mong Hung Mr. Dam Van Tuan
Mr. Tran Trong Kien
Ms. Dinh Thi Hoa
Mr. Huynh Quang Tuan
Vice Chairman Vice Chairman
Member
Member
Member
Member
Member
Member
Member
Member
(until 14 April 2014)
Mr. Do Minh Toan Mr. Nguyen Thanh Toai Mr. Dam Van Tuan
Mr. Bui Tan Tai Mr. Nguyen Đuc Thai Han
Ms. Nguyen Thi Hai
Mr. Le Ba Dung
Mr. Huynh Quang Tuan General Director
Deputy General Director
(until 31 December 2014)
(from 26 January 2015)
Board of Management
Mr. Tu Tien Phat
Supervisory Board
www.acb.com.vn
Ms. Hoang Ngan
Ms. Phung Thi Tot
Ms.Nguyen Thi Minh Lan
Head of Supervisory Board
Member
Member
Member
71
Principal activities
The principal activities of Asia Commercial Joint Stock Bank (“the Bank”)
and its subsidiaries (collectively referred to as “the Group”) are to mobilise
short, medium and long-term funds in the form of term deposits, demand
deposits; to receive entrusted investment and development funds from
domestic credit institutions; to borrow from other financial institutions;
to grant short, medium and long-term loans; to discount commercial
papers, bonds and other valuable papers; to contribute capital and to
invest in joint-ventures in accordance with the law; to provide settlement
services to customers; to trade foreign currencies, gold; to provide trade
finance services; to mobilise overseas funds and to perform other type
of services when dealing with overseas counterparties in accordance with
the approval of the State Bank of Vietnam; to provide factoring; to trade
bonds; trusted activities and fiduciary activities; insurance agent services;
to provide financial leasing; to trade securities; to provide consultancy
services for securities investment; to provide securities deposit services,
corporate finance consultancy services and underwriting services; to
provide investment fund and asset management services, and to provide
other banking services.
Registered Office
442 Nguyen Thi Minh Khai Street
Ward 5, District 3, Ho Chi Minh City, Vietnam
Auditors
KPMG Limited, Vietnam
STATEMENT OF THE BOARD OF MANAGEMENT’S
RESPONSIBILITY IN RESPECT OF THE CONSOLIDATED
The Board of Management is responsible for the preparation and presentation of the consolidated
financial statements of Asia Commercial Joint Stock Bank (“the Bank”) and its subsidiaries (collectively
referred to as “the Group”) for the year ended 31 December 2014 in accordance with Vietnamese
Accounting Standards, the Vietnamese Accounting System for Credit Institutions stipulated by the
State Bank of Vietnam and the relevant statutory requirements applicable to financial reporting. In
preparing these consolidated financial statements, the Board of Management is required to:
• select suitable accounting policies and then apply them consistently;
• make judgments and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, and material differences have
been disclosed and explained in the consolidated financial statements; and
• prepare the consolidated financial statements on the going concern basis unless it is inappropriate
to assume that the Group will continue in business.
72
Annual Report 2014
The Board of Management is also responsible for ensuring that proper accounting records are kept
which disclose, with reasonable accuracy at any time, the consolidated financial position of the Group
and ensuring that the accounting records comply with the requirements of Vietnamese Accounting
Standards, the Vietnamese Accounting System for Credit Institutions stipulated by the State Bank of
Vietnam and the relevant statutory requirements applicable to financial reporting. It is also responsible
for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
The Board of Management confirms that it has complied with the above requirements in preparing the
APPROVAL OF THE CONSOLIDATED FINANCIAL
STATEMENTS
I, Do Minh Toan, being General Director and on behalf of the Board of Management, hereby approve the
Group’s accompanying consolidated financial statements as of and for the year ended 31 December
2014. These consolidated financial statements give a true and fair view of the consolidated financial
position of the Group as of 31 December 2014 and of its consolidated results of operations and its
consolidated cash flows for the year then ended, prepared in accordance with Vietnamese Accounting
Standards, the Vietnamese Accounting System for Credit Institutions stipulated by the State Bank of
Vietnam and the relevant statutory requirements applicable to financial reporting.
On behalf of the Board of Management
Do Minh Toan
General Director
Ho Chi Minh City, 6 March 2015
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73
INDEPENDENT AUDITORS’ REPORT
To the Shareholders
Asia Commercial Joint Stock Bank
KPMG Limited Branch
10th Floor, Sun Wah Building,
115 Nguyen Hue, District 1, HCMC, Viet Nam.
Phone: +84 (8) 3821 9266 - Fax: +84 (8) 3821 9267
Web: kpmg.com.vn
We have audited the accompanying consolidated financial
statements of Asia Commercial Joint Stock Bank (“the
Bank”) and its subsidiaries (collectively referred to as “the
Group”), which comprise the consolidated balance sheet as
at 31 December 2014, the related consolidated statements
of income and cash flows for the year then ended and the
explanatory notes thereto which were authorised for issue
by the Bank’s Board of Management on 6 March 2015, as set
out on pages 6 to 111.
The Board of Management’s Responsibility
The Bank’s Board of Management is responsible for the preparation and fair presentation of these
consolidated financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese
Accounting System for Credit Institutions stipulated by the State Bank of Vietnam and the relevant
statutory requirements applicable to financial reporting, and for such internal control as the Board of
Management determines is necessary to enable the preparation of consolidated financial statements
that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our
audit. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the consolidated financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgement, including
the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
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Annual Report 2014
Auditor’s Opinion
In our opinion, the consolidated financial statements give a true and fair view, in all material respects, of
the consolidated financial position of the Group as at 31 December 2014 and of its consolidated results
of operations and its consolidated cash flows for the year then ended in accordance with Vietnamese
State Bank of Vietnam and the relevant statutory requirements applicable to financial reporting.
KPMG Limited’s Branch in Ho Chi Minh City
Vietnam
Operating registration certificate No.: 4114000230
Audit Report No.: 14-01-288/2
_____________________________________________________________________
John T. Ditty
Tran Dinh Vinh
Practicing Auditor Registration
Practicing Auditor Registration
Certificate No. 0555-2013-007-1
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75
Consolidated balance sheet as at 31December 2014
Form B02/TCTD-HN
Note
31/12/2014
31/12/2013
VND million
VND million
A
ASSETS
I
Cash on hand, gold and gemstones
5
2,496,287
2,043,490
II
Balances with the State Bank of Vietnam
6
3,357,730
3,065,322
III
Deposits with and loans to other credit institutions
7
4,559,007
7,215,519
1
Deposits with other credit institutions
3,882,060
5,624,520
2
Loans to other credit institutions
1,380,900
1,985,143
3
Allowance for losses on deposits with and loans to other credit
institutions
(703,953)
(394,144)
1,105,122
851,161
1,108,232
1,078,309
(3,110)
(227,148)
14,403
150
114,745,251
105,642,038
IV
Held-for-trading securities
1
2
Allowance for diminution in the value of held-for-trading securities
V
Derivatives and other financial assets
VI
Loans and advances to customers
1
10
116,324,055
107,190,021
2
Allowance for losses on loans and advances to customers
11
(1,578,804)
(1,547,983)
VII
Investment securities
12
39,676,852
33,482,828
1
Available-for-sale securities
23,683,261
7,232,001
2
Held-to-maturity securities
16,386,318
26,502,417
3
Allowance for losses on investment securities
(392,727)
(251,590)
VIII
Long-term investments
886,568
922,976
2
Investments in joint-ventures
1,278
1,277
3
Investments in associates
329
301
4
Other long-term investments
948,030
1,009,334
5
Allowance for diminution in the value of long-term investments
(63,069)
(87,936)
IX
Fixed assets
2,804,555
2,552,768
1
Tangible fixed assets
2,384,923
2,279,114
a
Cost
3,415,033
3,157,384
b
Accumulated depreciation
(1,030,110)
(878,270)
3
Intangible fixed assets
419,632
273,654
a
Cost
556,089
391,900
b
Accumulated amortisation
(136,457)
(118,246)
X
Investment property
8,654
9,015
a
Cost
9,015
9,015
b
(361)
-
XI
Other assets
9,955,342
10,813,722
1
Receivables
6,682,063
6,989,145
2
Accrued interest and fees receivable
3,254,051
3,689,556
3
Deferred tax assets
4,891
12,105
4
Other assets
557,408
444,379
5
Allowance for losses on other assets
(543,071)
(321,463)
179,609,771
166,598,989
TOTAL ASSETS
8
9
13
14
15
16
17
24
The accompanying notes are an integral part of these consolidated financial statements
76
Annual Report 2014
Note
B
31/12/2014
31/12/2013
VND million
VND million
LIABILITIES AND EQUITY
LIABILITIES
I
Borrowings from the State Bank of Vietnam
18
-
1,583,146
II
Deposits and borrowings from other credit institutions
19
6,145,238
7,793,776
1
Deposits from other credit institutions
3,244,143
5,842,936
2
Borrowings from other credit institutions
2,901,095
1,950,840
III
Deposits from customers
20
154,613,588
138,110,836
V
Funds received from the Government, international and other
credit institutions
21
188,155
363,345
VI
Valuable papers issued
22
3,078,000
3,500,000
VII
Other liabilities
23
3,187,487
2,743,684
1
Accrued interest and fees payable
1,736,746
1,544,951
2
Deferred tax liabilities
3
Other liabilities
4
Provision for off-balance sheet commitments
24
TOTAL LIABILITIES
-
14,708
1,450,741
1,126,077
-
57,948
167,212,468
154,094,787
EQUITY
VIII
Capital and reserves
12,397,303
12,504,202
1
Capital
25
8,711,841
9,117,544
a
Charter capital
9,376,965
9,376,965
d
Treasury shares
(665,124)
(259,421)
2
Reserves
2,207,666
2,034,952
5
Retained profits
1,477,796
1,351,706
TOTAL EQUITY
12,397,303
12,504,202
179,609,771
166,598,989
TOTAL LIABILITIES AND EQUITY
31/12/2014
31/12/2013
Note
VND million
VND million
OFF-BALANCE SHEET ITEMS
I
CONTINGENT LIABILITIES
1
Lending guarantees
40
39,275
420,070
2
Letters of credit commitments
40
5,610,824
3,474,168
3
Other guarantees
40
3,898,141
3,349,840
9,548,240
7,244,078
Nguyen Van Hoa
Do Minh Toan
Tran Hung Huy
Chief AccountantGeneral DirectorChairman
The accompanying notes are an integral part of
6 March 2015
these consolidated financial statements
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77
Consolidated statement of income
for the year ended 31 December 2014
From B03/TCTD-HN
Note
1
2014
2013
VND million
VND million
Interest and similar income
26
13,702,832
15,384,473
27
(8,937,199)
(10,818,660)
4,765,633
4,565,813
2
Interest and similar expenses
I
Net interest income
3
Fee and commission income
28
944,682
817,243
4
Fee and commission expenses
29
(250,242)
(226,223)
II
Net fee and commission income
694,440
591,020
III
Net gain/(loss) from trading of foreign currencies and gold
30
183,634
(77,616)
IV
Net gain from trading of held-for-trading securities
31
110,373
69,992
V
Net gain from trading of investment securities
32
230,647
396,395
5
Other income
33
106,598
76,739
6
Other expenses
33
(57,539)
(44,938)
VI
Net other income
33
49,059
31,801
VII
Income from investments in other entities
34
22,511
72,182
VIII
Operating expenses
35
(3,863,607)
(3,759,397)
IX
Operating profit before allowance and provision expenses for
credit losses
2,192,690
1,890,190
X
Allowance and provision expenses for credit losses
(977,289)
(854,630)
XI
Profit before tax
1,215,401
1,035,560
7, 11, 12, 23
7
Income tax expense - current
36
(271,093)
(201,214)
8
Income tax expense - deferred
36
7,494
(7,853)
XII
Total income tax expense
36
(263,599)
(209,067)
XIII
Profit after tax
951,802
826,493
XV
Basic earnings per share (VND/share)
1,021
868
37
Nguyen Van Hoa
Do Minh Toan
Tran Hung Huy
6 March 2015
78
Annual Report 2014
for the year ended 31 December 2014 (Direct method)
Form B04/TCTD-HN
2014
2013
VND million
VND million
01 Interest and similar income received
14,138,337
15,789,968
02 Interest and similar expenses paid
(8,745,404)
(11,083,196)
03 Net fee and commission income received
694,440
591,020
04 Net receipts/payments from foreign currencies, gold and securities trading activities
226,041
283,007
05 Other expenses paid
(40,845)
(61,186)
51,844
48,420
(3,393,081)
(3,231,267)
(82,116)
(113,316)
2,849,216
2,223,450
09 Decrease in deposits with and loans to other credit institutions
1,754,242
12,958,628
10 Increase in held-for-trading securities and investment securities
(6,638,924)
(6,863,009)
(14,253)
12,188
(9,134,034)
(4,375,173)
(496,006)
(421,007)
(27,142)
(213,513)
15 (Decrease)/increase in borrowings from the State Bank of Vietnam
(1,583,146)
1,583,146
16 Decrease in deposits and borrowings from other credit institutions
(1,648,538)
(5,955,024)
17 Increase in deposits from customers
16,502,752
12,877,241
18 Decrease in valuable papers issued
(422,000)
(16,701,212)
19 (Decrease)/increase in fund received from the Government,
international and other credit institutions
(175,190)
47,295
21 Increase/(decrease) in other operating liabilities
270,899
(1,261,599)
22 Utilisations of reserves
(14,798)
(45,000)
1,223,078
(6,133,589)
CASH FLOWS FROM OPERATING ACTIVITIES
06 Collection of bad debts previously written-off
07 Salaries and operating expenses paid
08 Income tax paid during the year
CASH FLOWS FROM OPERATING ACTIVITIES BEFORE
CHANGES IN OPERATING ASSETS AND LIABILITIES
Changes in operating assets
11 (Increase)/decrease in derivatives and other financial assets
12 Increase in loans and advances to customers
13 Utilisation of allowance for losses on loans and advances to
customers
14 Increase in other operating assets
Changes in operating liabilities
I NET CASH FLOWS FROM OPERATING ACTIVITIES
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79
for the year ended 31 December 2014 (Direct method – continued)
Form B04/TCTD-HN
2014
2013
VND million
VND million
(454,851)
(354,501)
11,078
6,925
-
(6,882)
08 Collections on other long-term investments
78,415
439,602
09 Receipts of dividends and distributions from long-term investments
63,734
44,501
(301,624)
129,645
04 Dividends paid
(636,847)
(642,322)
05 Payment for purchases of treasury shares
(405,703)
(259,421)
(1,042,550)
(901,743)
CASH FLOWS FROM INVESTING ACTIVITIES
01 Payments for purchases of fixed assets and other long-term assets
02 Proceeds from disposals of fixed assets
07 Payments for other long-term investments
II
NET CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
III
NET CASH FLOWS FROM FINANCING ACTIVITIES
IV
NET CASH FLOWS FOR THE YEAR
(121,096)
(6,905,687)
V
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR
9,762,451
16,668,138
VII
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR (NOTE 38)
9,641,355
9,762,451
Nguyen Van Hoa
Do Minh Toan
Tran Hung Huy
6 March 2015
80
Annual Report 2014
Notes to the consolidated financial statements
Form B05/TCTD-HN
These notes form an integral part of and should be read in conjunction with the accompanying
1. Reporting entity
Asia Commercial Joint Stock Bank (“the Bank”) is a commercial joint stock bank incorporated in the
Socialist Republic of Vietnam. The principal activities of the Bank are to carry out banking activities,
under Establishment and Operation Licence No. 0032/NH-GP issued by the State Bank of Vietnam
(“SBV”) on 24 April 1993 for a period of 50 years from the licence date. The Bank’s shares are listed
on the Hanoi Stock Exchange.
As at 31 December 2014, the Bank’s charter capital is VND9,376,965,060,000. The Bank has issued
937,696,506 ordinary shares with a par value of VND10,000.
The Bank’s Head Office is located at 442 Nguyen Thi Minh Khai Street, Ward 5, District 3, Ho Chi
Minh City, Vietnam. As at 31 December 2014, the Bank has one head office, three hundred and
forty five (345) branches and sub-branches nation-wide (31/12/2013: one head office, one main
branch, 344 branches and sub-branches).
As at 31 December 2014 and 2013, the Bank had the following subsidiaries:
Subsidiary
Operation licence
ACB Securities Company Limited (“ACBS”) 06/GP/HĐKD
115/GPĐC-UBCK
Nature of
business
Percentage of equity owned
and voting rights
31/12/2014
31/12/2013
Securities
company
100%
100%
Asia Commercial Bank Asset
Management Company Limited
(“ACBA”)
0303539425
Asset
managment
company
100%
100%
Asia Commercial Bank Leasing
Company Limited (“ACBL”)
06/GP-NHNN
Finance
leasing
company
100%
100%
ACB Capital Management Company
Limited (“ACBC”) (*)
41/UBCK-GP
Fund
managment
company
100%
100%
33/GPĐC-UBCK
(*)This percentage is indirectly held by the Bank through a subsidiary. ACBC is a wholly owned subsidiary
of ACBS.
All of the subsidiaries are established in Vietnam.
The consolidated financial statements for the year ended 31 December 2014 included the financial
statements of the Bank and its subsidiaries (collectively referred to as “the Group”).
As at 31 December 2014, the Group had 9,296 employees (31/12/2013: 9,131 employees).
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81
2. Basis of preparation
(a) Statement of compliance
The consolidated financial statements have been prepared in accordance with Vietnamese
These accounting policies may differ in some material respects from International Financial
Reporting Standards and the generally accepted accounting principles and standards in other
countries. Accordingly, the accompanying consolidated financial statements are not intended to
present the consolidated financial position and consolidated results of operations and consolidated
cash flows in accordance with generally accepted accounting principles and practices in countries
or jurisdictions other than Vietnam. Furthermore, their utilisation is not designed for those who are
not informed about Vietnam’s accounting principles, procedures and practices.
(b)Basis of measurement
The consolidated financial statements, except for the consolidated statement of cash flows, are
prepared on the accrual basis using the historical cost concept. The consolidated statement of cash
flows is prepared using the direct method.
(c) Annual accounting period
The annual accounting period of the Group is from 1 January to 31 December. .
(d)Accounting and presentation currency
The Group’ accounting currency is Vietnam Dong (“VND”). The consolidated financial statements are
presented in Vietnam Dong (“VND”) rounded to the nearest million (“VND million”).
(e) Form of records applied
The Group uses accounting software to record its transactions.
3. Changes in accounting policies
Except for the changes below, the Group has consistently applied the accounting policies as set
out in Note 4 to all periods presented in these consolidated financial statements.
The Group has adopted Circular No. 02/2013/TT-NHNN dated 21 January 2013 of the SBV regulating
the classification of assets, credit loss allowance level, allowance method and utilisation of allowance
in operations of credit institutions and foreign bank branches (“Circular 02”) and Circular No. 09/2014/
TT-NHNN dated 18 March 2014 of the SBV on amendments and supplementation to certain articles
of Circular 02 (“Circular 09”) with the effective date of 1 June 2014 and on a prospective basis. The
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Annual Report 2014
adoption of Circular 02 and Circular 09 has affected the following accounting policies:
• Loans and advances to customers – classification and allowance for losses (Notes 4(f)(ii) and 4(f)(iii));
• Allowance for off-balance sheet commitments (Note 4(g));
• Unlisted bonds issued by enterprises classified as available-for-sale securities and held-tomaturity securities – classification and allowance for losses (Note 4(h)(ii) and Note 4(h)(iii)); and
• Deposits with and loans to other credit institutions – classification and allowance for losses (Note
4(l)).
4. Summary of significant accounting policies
The following significant accounting policies have been adopted by the Group in the preparation of
these consolidated financial statements.
(a) Basis of consolidation
(i)Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to
govern the financial and operating policies of an entity in order to obtain economic benefits from
its activities. The financial statements of a subsidiary are included in the consolidated financial
statements from the date that control commences until the date that control ceases.
Where the accounting policies of subsidiaries are different from those adopted by the Bank,
adjustments have been made where necessary to ensure consistency of accounting policies for
consolidated financial statements purpose.
(ii) Associates and joint-ventures (equity accounted investees)
Associates are those entities in which the Group has significant influence, but not control, over the
financial and operating policies.
Joint-ventures are those entities over whose activities the Group has joint control, established
by contractual agreement and requiring unanimous consent for strategic, financial and operating
decisions.
Associates and joint-ventures (collectively referred to as “equity accounted investees”) are
accounted for using the equity method. The consolidated financial statements include the Group’s
share of the income and expenses of the equity accounted investees from the date that significant
influence or joint control commences until the date that significant influence or joint control
ceases. When the Group’s share of losses exceeds its carrying value of investments accounted by
using equity method, the carrying amount is reduced to nil and the recognition of further losses
is discontinued except to the extent that the Group has an obligation or has made payments on
behalf of the investee.
Where the accounting policies of associates and joint-ventures are different from those adopted
by the Bank, adjustments have been made where necessary to ensure consistency of accounting
policies for consolidated financial statements purpose.
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83
(iii) Transactions eliminated on consolidation
Intra-group balances, and any unrealised income and expenses arising from intra-group
transactions, are eliminated in preparing the consolidated financial statements.
Unrealised gains and losses arising from transactions with equity accounted investees are
eliminated against the investment to the extent of the Group’s interest in the investee.
(b)Foreign currency transactions
Monetary assets and liabilities denominated in currencies other than VND are translated into VND
at rates of exchange ruling at the reporting date. Transactions in currencies other than VND during
the period have been translated into VND at rates ruling on transaction dates.
Foreign exchange differences arising from monthly revaluation are recognised in the foreign
exchange revaluation reserve on the balance sheet at each month-end and transferred to the
statement of income at the year-end.
(c)Interest income and expenses
Interest income and expense are recognised on an accrual basis, except for interest income from
trading securities being recognised in the consolidated statement of income on a cash basis.
Interest income is not recognised when a loan becomes overdue (Group 2 to Group 5 as defined
in Note 4(f)(ii)) and is recorded into off-balance sheet items. Interest income on overdue loans is
recognised in the consolidated statement of income upon receipt.
(d) Fees and commission income
(i) Fees and commission income
Fees and commission income consist of fees received from settlement services, treasury services
and other services. Fees and commissions arising from settlement services, treasury services and
other services are recognised upon receipt.
(ii) Revenue from securities brokerage
Revenue from securities brokerage activities is recognised in the consolidated statement of
income when the securities transaction of the customer has been processed.
(e) Dividend income
Dividends are recognised in the consolidated statement of income when the Group’s right to
receive payment is established.
Share dividends and bonus shares are not recognised in the statement of income. The Group only
recognises the increases in the number of shares.
(f)Loans and advances to customers
(i) Measurement and recognition of loans and advances to customers
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Annual Report 2014
Short-term loans are those with repayment term within one year from the loan disbursement date; mediumterm loans are those with repayment term over one year to five years from the loan disbursement date and
long-term loans are those with repayment term of more than five years from the loan disbursement date.
Loans and advances to customers are stated at the amount of principal outstanding less allowance
for credit losses.
(ii) Classification of loans and advances to customers
Effective from 1 June 2014
Loan classification and allowance for losses are made in accordance with Circular 02 regulating the
classification of assets, credit loss allowance level, allowance method and utilisation of allowance
in operations of credit institutions and foreign bank branches and Circular 09 on amendments and
supplementation to certain articles of Circular 02. The Group has obtained approval of the SBV to
classify loans and advances to customers in accordance with a qualitative method as permitted in
Article 11 of Circular 02 in Official letter No. 6524/NHNN-TTGSNH dated 27 August 2010.
In accordance with Article 11, Point 6 of Circular 02, the Group has to classify loans and advances
to customers in accordance with a quantitative method as stipulated in Article 10 of Circular 02 in
parallel. In case where there are differences between the result of loan group classified in accordance
with Article 10 and Article 11 of Circular 02 then such loans and advance to customers have to be
classified into loan group with higher risk. The minimum period to classify loans in accordance with
both Article 10 and Article 11 of this Circular is within five years at least from the date of approval by
the SBV for the Group to classify loans and advances to customers in accordance with a qualitative
method.
In accordance with Article 10, Point 3a of Circular 02, amended and supplemented by Circular 09,
credit ratings of restructured loans and advance to customers remains unchanged as before the
restructure provided that the following conditions are met:
• The loan and advance was granted under credit facility which does not violate any law or regulation;
• The restructure of repayment term is in line with the purpose of the project as stated in the loan agreement;
• The borrower used the loan for the correct purpose;
• The borrower has a new loan repayment plan that is feasible and suitable to its conditions of business; and
• The Bank and its subsidiary remain in compliance with regulations of the SBV on limit, banking
safety ratio including the maximum ratio of short-term funding being used for medium and longterm lending in case of restructuring short-term loans into medium-term or long-term loans.
As and when the above conditions are met, the Group restructures the repayment terms of loans and
advances to customers based on the result of its internal rating system without changing their current credit
ratings. Article 10, Point 3a of Circular 02 is effective from 20 March 2014 and expires from 1 April 2015.
Loans and advances to customers are classified into five loan groups based on the internal rating
system of the Group as below:
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85
Classification per the Group’s internal rating system
Classification per Circular 02
AAA, AA, A credit rating
Group 1 - Current loans
BBB, BB, B credit rating
Group 2 - Special mentioned loans
CCC, CC credit rating
Group 3 - Sub-standard loans
C credit rating
Group 4 - Doubtful loans
D credit rating
Group 5 - Loss loans
Where a customer owes more than one debt to the Group, and has any of its debts classified into
a higher risk group of debts, the Group is obliged to classify the remaining debts of such customer
into the group of debts with higher risk corresponding with their level of risk.
Where the Group participates in a syndicated loan not as the lead bank, the Group reclassifies all
debts (including the outstanding syndicated loan) of the customer into a higher risk group of debt
as determined by the lead bank and by the Group.
Prior to 1 June 2014
Loan classification and allowance for losses were made in accordance with Decision No. 493/2005/
QD-NHNN dated 22 April 2005 (“Decision 493”) and Decision No. 18/2007/QD-NHNN dated 25
April 2007 (“Decision 18”) of the Governor of the SBV. From 1 January 2011, in accordance with
Official letter No. 6524/NHNN-TTGSNH dated 27 August 2010 of the SBV, the Group has classified
loans and advances to customers according to Article 7 of Decision 493.
In accordance with Decision No. 780/QD-NHNN dated 23 April 2012 (“Decision 780”), credit
ratings of rescheduled or extended debts of customers whose business and debt repayment
ability are assessed to become positive after their debts are rescheduled or extended remain
unchanged. Accordingly, the Group reschedules or extends the payment terms of loans and
advances to customers based on the result of its internal rating system without changing the loans
and advances to customers’ current credit ratings.
system of the Group as below:
Classification per the Group’s internal rating system
Classification per Decision 493
C credit rating
D credit rating
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Annual Report 2014
Where a customer owes more than one debt to the Group, and has any of its debts classified into
a higher risk group of debts, the Group is obliged to classify the remaining debts of such customer
Where the Group participates in a syndicated loan not as the lead bank, the Group reclassifies all
debts (including the outstanding syndicated loan) of the customer into a higher risk group of debt
as determined by the lead bank and by the Group.
The above change in accounting policy has been applied prospectively.
(iii) Allowance for losses on loans and advances to customers
Specific allowance for losses on loans and advances to customers is calculated using set rates
applied to each loan group as follows:
Allowance rates
0%
5%
20%
50%
100%
The specific allowance is calculated based on the net credit exposure of each borrower, i.e. based
on the borrower’s loan balance at the end of each quarter (for quarter 4, specific allowance is
calculated based on the borrower’s loan balance on the last working day of November) less the
discounted value of collateral assets. The discounted value of collateral assets is determined in
accordance with Circular 02 as follows:
• Collateral asset with value of VND50 billion or more for loans and advances to the Group’s related
parties or other parties under Article 127 of the Law on Credit Institutions and collateral asset with
value of VND200 billion or more must be valued by a licensed asset valuation organisation.
• Other than the above, collateral assets are valued in accordance with the Group’s internal policy
and process.
Maximum discounted ratio of collateral assets is determined as follows:
Type of collateral assets
Maximum
discounted ratio
(a) Customers deposits in VND
100%
(b) Gold billets, except for the types of gold specified in (i); customers deposits
in foreign currencies
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95%
87
(c) Government bonds, transferable instruments, valuable papers issued by
the Group, savings, certificate of deposit, bills and notes issued by other
credit institutions or foreign bank branches:
With a remaining term of less than 1 year
With a remaining term of between 1 year to 5 years
With a remaining term of over 5 years
95%
85%
80%
(d) Securities issued by other credit institutions and listed on a stock exchange
70%
(e) Securities issued by enterprises and listed on a stock exchange
65%
(f) Unlisted securities and valuable papers, except for the types of securities
specified in (c), issued by other credit institutions registered for listing on a
stock exchange;
50%
Unlisted securities and valuable papers, except for the types of securities
specified in (c), issued by other credit institutions not registered for listing
on a stock exchange
30%
(g) Unlisted securities and valuable papers issued by enterprises registered for
30%
listing on a stock exchange;
Unlisted securities and valuable papers issued by enterprises not registered
for listing on a stock exchange
10%
(h) Real estate
50%
(i) Gold billets not having quoted price, other types of gold and other collateral
assets
30%
Collateral assets that do not satisfy the conditions as specified in Article 12, Point 3 of Circular 02
are deemed to have zero discounted value.
In accordance with Circular 02, a general allowance is made at 0.75% of the outstanding balance of
loans and advances to customers at the end of each quarter (for quarter 4, a general allowance is
made at 0.75% of the outstanding balance of loans and advances to customers at the last working
day of November), excluding the total balance of loans and advances to customers which are
classified as loss loans.
Except for special cases of a state owned corporation as mentioned in Note 10, specific allowance
for losses on loans and advances to customers was calculated using set rates applied to each loan
group as follows:
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Annual Report 2014
Allowance rates
0%
5%
20%
50%
100%
calculated based on the borrower’s loan balance at the last working day of November) less the
accordance with Decision 493 and Decision 18 as follows:
Maximum
discounted ratio
Balance of deposit accounts, savings, valuable papers in VND issued by
credit institutions
100%
Treasury bills, gold, balance of deposit accounts, savings, valuable
papers in foreign currencies issued by credit institutions
95%
Government bonds:
• With a remaining term of 1 year or less
• With a remaining term of between 1 year to 5 years
• With a remaining term of over 5 years
95%
85%
80%
Securities, transferable instruments and valuable papers issued by other credit
institutions and listed on a stock exchange or at a securities trading centre
70%
Securities, transferable instruments and valuable papers issued by enterprises
and listed on a stock exchange or at a securities trading centre
65%
institutions but not yet listed on a stock exchange or at a securities trading centre
50%
Real estate
50%
Other types of collateral assets
30%
In accordance with Decision 493, a general allowance was also required to be made at 0.75% of the
outstanding balance of loans and advances to customers at the end of each quarter (for quarter
4, a general allowance is made at 0.75% of the outstanding balance of loans and advances to
customers at the last working day of November), excluding the total balance of loans and advances
to customers which were classified as loss loans. Such general allowance was required to be made
in full within five years from the effective date of Decision 493.
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89
(iv) Written-off loans and advances to customers classified as bad debts
Loans are written-off at the discretion of the Bank’s Risk Resolution Committee when they consider
that all reasonable efforts for recovery of bad debts, including legal actions, have been exhausted.
Loans and advances to customers are written-off against the allowance when loans and advances
to customers have been classified to Group 5 or when borrowers have been declared bankrupt
or dissolved (for borrowers being organisations and enterprises) or borrowers are deceased or
missing (for borrowers being individuals).
Loans written-off against allowance are recorded as off-balance sheet items for following up and
collection. The amount collected from previously written-off loans, including the amount from
sales of collaterals against those loans, is recognised in the consolidated statement of income
upon receipt.
(v) Loans sold to Vietnam Asset Management Company (“VAMC”)
Loans sold to VAMC in accordance with Decree No. 53/2013/ND-CP dated 18 May 2013 issued by
the Government (“Decree 53”), Circular No. 19/2013/TT-NHNN dated 6 September 2013 issued
by the SBV (“Circular 19”) are derecognised from the Bank’s balance sheet in accordance with the
guidance in Official Letter No. 8499/NHNN-TCKT dated 14 November 2013 issued by the SBV and
Official Letter No. 925/NHNN-TCKT dated 19 February 2014 issued by the SBV.
Special bond issued by VAMC as consideration for loan sold by the Bank is recognised as held-tomaturity securities in the consolidated balance sheet (Note 4(h)(iv)).
Upon completing the debt sales transactions, the Bank also utilises the corresponding specific
allowance made but not yet utilised to write down the book values of the bad debts, and writes off
interest receivables recorded in the off-balance sheet account.
(g) Off-balance sheet commitments
Off-balance sheet commitments consist of guarantees, settlement acceptances, and
unconditional and irrevocable commitments with specific time for settlement.
The classification of off-balance sheet commitments is conducted solely for risk management,
credit quality supervision of credit granting activities in accordance with the same accounting policy
applied to loans and advances as described in Note 4(f).
Off-balance sheet commitments are classified into five groups as follows:
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Annual Report 2014
Group
Definition
1 Current commitments
Commitments which, according to the Group’s assessment,
could be fully settled when they fall due.
2 Special mentioned
could be fully settled when they fall due but there are indicators
of declining capability to settle the commitments.
commitments
3 Sub-standard commitments
could not be fully settled when they fall due.
4 Doubtful commitments
Commitments which, according to the Group’s assessment, are
not highly probably settled by customers.
5 Loss commitments
could not be settled.
Off-balance sheet commitments are classified into five groups based on quantitative and qualitative factors
as follows:
Group
Definition
1 Current commitments
Undue commitments which, according to the Group’s assessment,
2 Special mentioned
Undue commitments which, according to the Group’s assessment,
could not be fully settled when they fall due; or
commitments
3 Sub-standard commitments
4 Doubtful commitments
5 Loss commitments
Overdue commitments which are classified in accordance with
the Group’s assessment.
Provision for losses on off-balance sheet commitments
credit quality supervision of credit granting activities. No provision is made for off-balance sheet
commitments, except where the Group has been required to made payment under the guarantee
contract, in which case the payment on behalf is classified and allowance is made in accordance with
accounting policy in Note 4(f).
Specific provision for losses on off-balance sheet commitments was calculated using set rates
applied to each group of off-balance sheet commitments as follows:
Provision rates
Group 1 - Current commitments
0%
Group 2 - Special mentioned commitments
5%
Group 3 - Sub-standard commitments
20%
Group 4 - Doubtful commitments
50%
Group 5 - Loss commitments
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100%
91
Specific provision is calculated based on the net credit exposure of each customer which equals the
off-balance sheet commitment balance at the end of each quarter (for quarter 4, specific provision
is calculated based on the off-balance sheet commitment balance of each customer at the last
working day of November) less the discounted value of collateral assets. The discounted value of
these collateral assets is determined in accordance with Decision 493 and Decision 18 (Note 4(f)(iii)).
According to Decision 493, a general provision is also required to be made at 0.75% of the outstanding
balance at the end of each quarter (for quarter 4, a general provision is made at 0.75% of the
outstanding balance at the last working day of November) of the off-balance sheet commitments
and excludes the off-balance sheet commitments which are classified as loss commitments.
The above change in accounting policy has been applied prospectively. In applying the change in
accounting policy the Group has reversed the allowance amounted to VND57,948 million for offbalance sheet commitments during the year.
(h) Investment securities
Investment securities are classified into four categories according to Official letter No. 2601/
NHNN-TCKT dated 14 April 2009 issued by the SBV:
• Held-for-trading securities;
• Available-for-sale securities;
• Held-to-maturity securities; and
• Other long-term investments.
The Group classifies investment securities at the acquisition date.
(i) Held-for-trading securities
Classification
Held-for-trading securities are securities acquired principally for the purpose of selling in the shortterm, not over one year, for the purpose of short-term profit-taking.
Recognition
The Group recognises held-for-trading securities on the date it becomes a party to the contractual
provisions of these securities (trade date accounting).
Measurement
Held-for-trading securities are stated at cost less allowance for diminution in value. Allowance for
diminution in value is made when the market value is lower than the book value.
For listed held-for-trading equity securities, the market price is the closing price of securities
obtained from the Ho Chi Minh City Stock Exchange or average prices obtained from the Hanoi
Stock Exchange at the reporting date.
For unlisted held-for-trading equity securities that are actively traded on the OTC market, the
market price is the average of the transaction prices quoted by three securities companies having
charter capital above VND300 billion.
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Annual Report 2014
For listed held-for-trading debt securities, the market price is determined based on yield curve
listed on the Hanoi Stock Exchange at the reporting date.
For securities not actively traded in the market or where the market price of those securities cannot
be determined, no allowance is made and such securities are stated at cost.
Interest income during the holding period of trading securities is recognised in the consolidated
statement of income on a cash basis.
The allowance for diminution in the value of held-for-trading securities as mentioned above is
reversed if there is a subsequent increase in the recoverable amount after the allowance was
recognised. An allowance is reversed only to the extent that the investment’s carrying amount
does not exceed the carrying amount that would have been determined if no allowance had
been recognised.
Derecognition
Held-for-trading securities are derecognised when the rights to receive cash flows from the
investments have expired or the Group has transferred substantially all risks and rewards of ownership.
(ii) Available-for-sale securities
Classification
Available-for-sale securities are debt securities or equity securities which are intended to be held
for an indefinite period and may be sold at any time.
Recognition
The Group recognises available-for-sale securities on the date it becomes a party to the contractual
Measurement
Available-for-sale unlisted bonds issued by enterprises are stated at cost less allowance for credit
losses. Credit risk classification of unlisted bonds issued by enterprises and allowance thereof is
made in accordance with the same accounting policy applied for loans and advances to customers
as described in Note 4(f).
Other available-for-sale securities are stated at cost less allowance for diminution in value.
Allowance for diminution in value is made when the market value is lower than the book value.
For listed available-for-sale equity securities, the market price is the closing price of securities
For unlisted available-for-sale equity securities that are actively traded on the OTC market, the
charter capital above VND 300 billion.
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93
For listed available-for-sale debt securities, the market price is determined based on yield curve
For securities not actively traded in the market or where the market price of those securities can
not be determined, with the exception of unlisted bonds issued by enterprises being classified into
loan group and allowance thereof is made in accordance with the same accounting policy applied
for loans and advances to customers as described in Note 4(f), no allowance is made and such
securities are stated at cost.
Premiums and discounts arising from purchases of available-for-sale securities are amortised to
the consolidated statement of income using the straight line method over the period from the
acquisition date to the maturity date, in cases these available-for-sale securities would be sold
before their maturity date, the unamortised premiums and discounts are recognised fully in the
consolidated statement of income at the sale date.
Post-acquisition interest income of available-for-sale securities is recognised in the consolidated
statement of income on an accrual basis.
The allowance for credit loss on unlisted bonds issued by enterprises and allowance for diminution in
value of other available-for-sale securities as mentioned above is reversed if there is a subsequent
increase in the recoverable amount after the allowance was recognised. An allowance is reversed
only to the extent that the investment’s carrying amount does not exceed the carrying amount
that would have been determined if no allowance had been recognised.
Available-for-sale securities are stated at cost less allowance for diminution in value. Allowance for
Premiums and discounts arising from purchases of available-for-sale securities are amortised to
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Annual Report 2014
consolidated statement of income at the sale date.
Post-acquisition interest income of available-for-sale securities is recognised in the consolidated
The allowance for diminution in the value of available-for-sale securities as mentioned above
is reversed if there is a subsequent increase in the recoverable amount after the allowance was
been recognised.
Derecognition
Available-for-sale securities are derecognised when the rights to receive cash flows from the
(iii) Held-to-maturity securities
Classification
Held-to-maturity securities are debt securities with fixed or determinable payments and fixed
maturities where the Group's management has the positive intention and ability to hold until maturity.
Recognition
The Group recognises held-to-maturity securities on the date it becomes a party to the contractual
Measurement
Held-to-maturity unlisted bonds issued by enterprises are stated at cost less allowance for credit
losses. Credit risk classification of unlisted bonds issued by enterprises and allowance thereof is made
in accordance with the same accounting policy applied for loans and advances as described in Note 4(f).
Other held-to-maturity securities are stated at cost less allowance for diminution in value. Allowance
for diminution in value is made when there is an indicator of devaluation according to the Board of
Management’s assessment.
Premiums and discounts arising from purchases of held-to-maturity securities are amortised to
acquisition date to the maturity date.
Post-acquisition interest income of held-to-maturity securities is recognised in the consolidated
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95
The allowance for credit losses on held-to-maturity unlisted bonds issued by enterprises and the
allowance for diminution in the value of other held-to-maturity securities as mentioned above are
been recognised.
Held-to-maturity securities are stated at cost less allowance for diminution in value. Allowance
Premiums and discounts arising from purchases of held-to-maturity securities are amortised to
Post-acquisition interest income of held-to-maturity securities is recognised in the consolidated
The allowance for diminution in the value of held-to-maturity securities as mentioned above
recognised. An allowance is reversed only to the extent that the investment’s carrying amount does not
exceed the carrying amount that would have been determined if no allowance had been recognised.
accounting policy the Group has made additional general allowance amounted to VND34,041
million for held-to-maturity unlisted bonds issued by enterprises during the year.
Derecognition
Held-to-maturity securities are derecognised when the rights to receive cash flows from the
(iv) Special bonds issued by VAMC
Classification
Special bonds issued by VAMC as consideration for bad debts sold by the Bank to VAMC are
recognised as held-to-maturity securities.
Recognition
Special bonds are recognised at par value at the transaction date.
Measurement
Special bonds are carried at par value less specific allowance during holding period.
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Annual Report 2014
Under VAMC’s bad debt purchasing scheme, par value of the special bond is equal to the carrying
value of bad debts sold net of specific allowance which was made but not yet utilised.
Specific allowance for losses in respect of the special bonds are required to be made in accordance
with Decree 53 and Circular 19. Accordingly, the Bank makes specific allowance annually with the
minimum amount of 20% par value of each special bond within 5 working days prior to the date of
that year corresponding to the maturity date of the special bond. General allowance is not required
to be made for these special bonds.
When receiving back loans previously sold to VAMC, the Bank uses the specific allowance for special
bonds to write off bad debts and recognises the difference between allowance for losses on special
bonds and the uncollectable loan balance in the consolidated statement of income.
(v) Other long-term investments
Classification
Other long-term investments are investments in the equity of entities where the Group has no
control or significant influence. These investments must have a period of holding, recovering or
paying off more than one year with the purpose of gaining benefits in the following cases:
• The Bank or/and its subsidiaries is a founding shareholder;
• The Bank or/and its subsidiaries is a strategic partner; or
• The Bank or/and its subsidiaries has a significant influence on the process of establishment,
approval of financial and operating policies through written agreements about having the Bank or
its subsidiaries’s personnel joining the investee’s Board of Management/Board of Directors.
Recognition
The Group recognises other long-term investments on the date it becomes a party to the
contractual provisions of these investments (trade date accounting).
Measurement
These long-term investments are stated at cost less allowance for diminution in value. Allowance
for diminution in value is made if the total actual contributed capital exceeds the owner’s equity of
the investee in accordance with Circular No. 228/2009/TT-BTC dated on 7 December 2009 issued
by the Ministry of Finance (“Circular 228”) and Circular No. 89/2013/TT-BTC dated on 28 June 2013
issued by the Ministry of Finance (“Circular 89”). Accordingly, the allowance is equal to the difference
between the total contributed capital and the owner’s equity multiplied (x) by the proportion of the
Group’s actual contributed capital to the total contributed capital of the investors. The allowance
recognised. An allowance is reversed only to the extent that the investment’s carrying amount does not
exceed the carrying amount that would have been determined if no allowance had been recognised.
Derecognitio
Other long-term investments are derecognised when the rights to receive cash flows from these
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(i) Derivative financial instruments
Currency forward and currency swap contracts
Currency forward and currency swap contracts are recorded at contract value in the consolidated
financial statements. Differences between the currency amounts which are committed to buy/sell
at the contractual exchange rate and the buy/sell committed currency amounts translated at the
spot exchange rate at the effective dates of the currency forward contracts and currency swap
contracts are amortised to the consolidated statement of income on a straight-line basis over the
terms of the contracts.
Currency forward contracts are revalued at the spot exchange rate at month-end. Any unrealised
gains/losses are recognised in the foreign exchange revaluation reserve on the balance sheet at
each month-end and transferred to the statement of income at year-end.
Cross currency swap contracts
For cross currency swap of parties to exchange interest payments and principals denominated in two
different currencies which are exchanged at the effective date, the contract value is recognised on the
consolidated balance sheet. Income earned and expenses incurred are recognised on an accrual basis.
Currency option contracts
The committed value in currency option contract transactions is not recognised in the consolidated
balance sheet. Any paid or received option premium is recognised as deferred expense or revenue and
amortised to the consolidated statement of income on a straight-line basis over the terms of the contracts.
Currency option contracts are revalued at the spot exchange rate at month-end. Unrecognised
gains/losses are recognised in the foreign exchange revaluation reserve on the balance sheet at
each month-end and transferred into the statement of income at year-end.
(j) Gold
Gold is revalued at each month-end. Differences from the monthly revaluation are recognised in
the foreign exchange revaluation reserve on the balance sheet at each month-end and transferred
to the statement of income at the year-end.
(k) Cash and cash equivalents
For the presentation of consolidated statement of cash flows, cash and cash equivalents comprise
cash, gold, precious metals and gemstones, demand deposits at the SBV; promissory notes and
other short-term valuable papers qualified to be discounted at the SBV; securities which have
maturities date within 3 months from purchase date; and demand and term deposits at other
credit institutions with original maturity of three months or less.
(l) Deposits with and loans to other credit institutions
(i) Deposits with other credit institutions
Deposits with other credit institutions include demand deposits and term deposits.
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Annual Report 2014
Demand deposits with other credit institutions are stated at the amount of principal outstanding.
Term deposits with other credit institutions are stated at the amount of principal outstanding less
specific allowance.
In accordance with Circular No. 21/2012/TT-NHNN issued on 18 June 2012 by the SBV, effective
from 1 September 2012 (“Circular 21”) and Circular No. 01/2013/TT-NHNN issued on 7 January
2013 by the SBV (“Circular 01”) to amend and supplement Circular 21, credit institutions are only
allowed to undertake deposits for which the maximum term is three months with other credit
institutions and foreign banks’ branches. New deposits with over three months term after the
effective date of these circulars are classified as loans to other credit institutions.
Credit risk classification of term deposits with other credit institutions and allowance thereof is
made in accordance with Circular 02 and Circular 09 being similar to those policies on loans to other
credit institutions as described in Note 4(l)(ii).
Deposits with other credit institutions are stated at the amount of principal outstanding. In
accordance with Circular 21 and Circular 01 to amend and supplement Circular 21, credit
institutions are only allowed to undertake deposits for which the maximum term is three months
with other credit institutions and foreign banks’ branches. New deposits with over three months
term after the effective date of these circulars are classified as loans to other credit institutions.
Circular 21 and Circular 01 do not provide guidance on how to account for and make allowance
for deposits with other credit institutions including those for which the payment terms have been
extended or are overdue.
accounting policy, the Group made allowance for losses on deposits with other credit institutions
of VND328,045 million as mentioned in Note 7.
(ii) Loans to other credit institutions
Loans to other credit institutions are stated at the amount of principal outstanding less
specific allowance.
The specific allowance is calculated based on the net credit exposure of each credit institution,
i.e. based on the credit institution’s loan balance at the end of each quarter (for quarter 4, specific
allowance is calculated based on the credit institution’s loan balance at the last working day of
November) less the discounted value of collateral assets. The discounted value of collateral assets is
determined in accordance with the principles as set out in Circular 02 as mentioned in Note 4(f)(iii).
Credit risk classification of loans to other credit institutions and allowance thereof is made
in accordance with Circular 02 and Circular 09. The Group has classified loans to other credit
institutions in accordance with a quantitative method as permitted in Article 10 of Circular 02.
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Specific allowance for loss on loans to other credit institutions is calculated based on the overdue
status of the principal outstanding or interest at the following rates:
Group
1 Current
loans
Overdue status
Allowance
rates
(a) Current loans being assessed as fully and timely recoverable, both
principals and interests; or
(b) Loans being overdue less than 10 days and being assessed as fully
recoverable, both overdue principals and interests, and fully and timely
recoverable, both remaining principals and interests.
0%
(a) Loans being overdue between 10 days to 90 days; or
mentioned (b) Loans having been rescheduled terms of repayments for the first time.
loans
5%
2 Special
3 Substandard
loans
100
(a) Loans being overdue between 91 days and 180 days; or
(b) Loans having been extended terms of repayments for the first time; or
(c) Loans having been exempted or reduced interests because customers
are not able to pay the interests according to credit contracts; or
(d) Loans being fallen in one of the following cases:
• Loans to customers or guarantee parties being organisations,
individuals who are not subjected to credit granting by credit
institutions, foreign bank branches as prescribed by law.
• Loans being secured by securities of the Bank or its subsidiaries or
loans being used to contribute capital to another credit institution on
the basis that collateral assets pledged to the Bank or its subsidiaries
are securities issued by invested credit institution.
• Unsecured loans or loans being granted under preferential conditions
or having value exceeding 5% of the Bank or its subsidiaries’s capital
when granting credit to restricted customers as prescribed by law.
• Loans to the Bank or its subsidiaries’ associates that exceeds the
limit as prescribed by law.
• Loans having value exceeding credit limit, unless being allowed as
prescribed by law.
• Loans having violated the credit limit, foreign exchange management
and safety ratio applied for the the Bank or its subsidiaries as
prescribed by law.
• Loans having violated the the Bank or its subsidiaries’s internal
regulations on credit grant, loan management and policy on making
allowance for losses; or
(e) Loans being recovered under inspection conclutions.
20%
Annual Report 2014
Group
4 Doubtful
loans
5 Loss
loans
Overdue status
Allowance
rates
(b) Loans having been restructured terms of repayments for the first time
and being overdue less than 90 days according to the first restructured
terms of repayments; or
(c) Loans having been restructured terms of repayments for the second
time; or
(d) Loans specified in point (d) of loan Group 3 being overdue between 30
days and 60 days after the decisions of recovery have been issued; or
(e) Loans being recovered under inspection conclusions but being
overdue up to 60 days according to recovery term.
50%
(a) Loans being overdue more than 360 days; or
(b) Loans having been restructured terms of repayments for the first
time and being overdue more than 90 days according to the first
restructured terms of repayments; or
time and being overdue according to the second restructured terms
of repayments; or
(d) Loans having been restructured terms of repayments for the third
time or more, regardless whether the loans are overdue or not; or
(e) Loans specified in point (d) of loan Group 3 being overdue more than
60 days after the decisions of recovery have been issued; or
(f) Loans being recovered under inspection conclusions but being
overdue for more than 60 days according to recovery term; or
(g) Loans to credit institutions being announced under special control
status by the SBV, or to foreign bank branches of which capital and
assets are blockaded.
100%
Loans to other credit institutions are stated at the amount of principal outstanding less allowance
for losses on loans to other credit institutions.
Allowance for loss on loans to other credit institutions
Overdue status
Allowance rates
Group 1 - Overdue less than 10 days
0%
Group 2 - Overdue from 10 days to 90 days
5%
20%
50%
Group 5 - Overdue more than 360 days
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100%
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In accordance with Decision 493, a general allowance is made at 0.75% of total balance at the end
of each quarter (for quarter 4, a general allowance is made at 0.75% of the outstanding balance of
loans to other credit institutions at the last working day of November), excluding the total balance
of loans to other credit institutions which are classified as loss loans. Such general allowance is
required to be made in full within five years from the effective date of Decision 493.
accounting policy, the Group reversed general allowance amounted to VND18,236 million and
there was no specific allowance made for loans to other credit institutions during the year.
(m) Allowance for losses on other assets
Except for a special case of six companies that have an individual who was either the Chairman or
a member of the Board of Directors of these companies (“the Group of six companies”) that were
subject to a modified allowance method as mentioned in Notes 10 and 17, allowance for doubtful
receivables is made based on the anticipated possible loss or the overdue status of receivables
according to Circular 228 at the following rates:
Overdue status
Allowance rates
Over 6 months to below 1 year
30%
From 1 to below 2 years
50%
70%
From 3 years and above
100%
(n) Classification of financial instruments
Solely for the purpose of providing disclosures about the significance of financial instruments to
the Group’s financial position and results of operations and the nature and extent of risk arising
from financial instruments, the Group classifies its financial instruments as follows:
(i) Financial assets
Financial assets at fair value through profit or loss
A financial asset at fair value through profit or loss is a financial asset that meets either of the
following conditions:
• It is classified by the Group as held for trading. A financial asset is classified as held for trading if:
- it is acquired principally for the purpose of selling it in the near term;
- there is evidence of a recent pattern of short-term profit-taking; or
- it is a derivative (except for a derivative that is financial guarantee contract or a designated and
effective hedging instrument).
• Upon initial recognition, it is designated by the Group as a financial asset at fair value through profit
or loss.
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments
and fixed maturity that the Group has the positive intention and ability to hold to maturity, other than:
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Annual Report 2014
• those that the Group, upon initial recognition, designates as financial assets at fair value through
profit or loss;
• those that the Group designates as available-for-sale; and
• 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, other than those:
• that the Group intends to sell immediately or in the near term, which are classified as held for
trading and those that the Group, on initial recognition, designates as financial assets at fair value
through profit or loss;
•that the Group, upon initial recognition, designates as available-for-sale; or
•for which the Group may not recover substantially all of its initial investment, other than because
of credit deterioration, which are classified as available-for-sale.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are designated as
available for sale or those are not classified as:
• loans and receivables;
• held-to-maturity investments; or
• financial assets at fair value through profit or loss.
The above described classification of financial assets is solely for presentation and disclosure
purposes and is not intended to be a description of how the financial instruments are measured.
Accounting policies for measurement of financial assets are disclosed in other relevant notes. As
at 31 December 2014, financial assets of the Group included:
• Derivatives and other financial assets; and
• Held-for-trading securities.
• Held-to-maturity securities.
• Balances with the State Bank of Vietnam;
• Deposits with and loans to other credit institutions;
• Loans and advances to customers;
• Receivables; and
• Interest and fees receivable.
• Available-for-sale securities; and
• Other long-term investments.
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(ii) Financial liabilities
Financial liabilities at fair value through profit or loss
A financial liability at fair value through profit or loss is a financial liability that meets either of the
•It is considered by the Group as held for trading. A financial liability is classified as held for trading if:
- it is incurred principally for the purpose of repurchasing it in the near term;
- there is evidence of a recent pattern of short-term profit-taking; or
- it is a derivative (except for a derivative that is financial guarantee contract or a designated and
•Upon initial recognition, it is designated by the Group as a financial liability at fair value through
profit or loss.
Financial liabilities carried at amortised cost
Financial liabilities which are not classified as financial liabilities at fair value through profit or loss are
classified as financial liabilities carried at amortised cost.
The above described classification of financial liabilities is solely for presentation and disclosure
Accounting policies for measurement of financial liabilities are disclosed in other relevant notes. As
at 31 December 2014, financial liabilities of the Group included:
• Deposits and borrowings from other credit institutions;
• Deposits from customers;
• Funds received from the Government, international and other credit institutions;
• Valuable papers issued;
• Accrued interest and fees payable; and
• Other financial liabilities.
(o) Tangible fixed assets
(i) Cost
Tangible fixed assets are stated at cost less accumulated depreciation. The initial cost of a tangible
fixed asset comprises of its purchase price, import duties, non-refundable purchase taxes and any
directly attributable costs of bringing the asset to its working condition and location for its intended
use. Expenditure incurred after the tangible fixed assets have been put into operation, such as
repairs and maintenance and overhaul costs, is charged to the consolidated statement of income in
the year in which the costs are incurred. In situations where it can be clearly demonstrated that the
expenditure has resulted in an increase in the future economic benefits expected to be obtained
from the use of tangible fixed assets beyond its originally assessed standard of performance, the
expenditure is capitalised as an additional cost of tangible fixed assets.
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Annual Report 2014
(ii)Depreciation
Depreciation is computed on a straight-line basis over the estimated useful lives of tangible fixed
assets. The estimated useful lives are as follows:
• buildings and structures
25 - 40 years
• office equipment
3 - 5 years
• motor vehicles
6 - 10 years
• others
3 - 6 years
(iii) Disposals
Gains and losses on disposal of tangible fixed assets are the difference between the net proceeds
from disposals and the carrying amount of fixed assets and are recognised as other income or
other expenses in the consolidated statement of income.
(p) Intangible fixed assets
(i) Land use rights
Land use rights comprise those acquired in a legitimate transfer and indefinite land use rights.
Indefinite land use rights are stated at cost and without amortisation. Initial cost of a land use
right comprises its purchase price and any directly attributable costs incurred in conjunction with
securing the land use right
(ii) Software
Cost of acquiring new software, which is not an integral part of the related hardware, is capitalised
and treated as an intangible asset. Software costs are amortised on a straight-line basis over 5 to
8 years.
(iii) Disposals
Gains and losses on disposal of intangible fixed assets are the difference between the net proceeds
other expenses in the consolidated statement of income.
(q) Investment property
(i) Cost
Investment property is stated at cost less accumulated depreciation. The initial cost of investment
property comprises of its purchase price, land use rights cost and any directly attributable
costs of bringing the asset to its necessary condition for its intended operation by the Group.
Expenditure incurred after the investment property have been put into operation, such as repairs
and maintenance costs, is charged to the consolidated statement of income in the year in which
the costs are incurred. In situations where it can be clearly demonstrated that the expenditure has
resulted in an increase in the future economic benefits expected to be obtained from the use of
investment property beyond its originally assessed standard of performance, the expenditure is
capitalised as an additional cost of investment property.
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(ii) Depreciation
Depreciation is computed on a straight-line basis over the estimated useful lives of investment
property. The estimated useful lives are as follows:
• houses
25 years
(iii) Disposals
Gains and losses on disposal of investment property are the difference between the net proceeds
from disposals and the carrying amount of investment property and are recognised as other
income or other expenses in the consolidated statement of income.
(r) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits
will be required to settle the obligation. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required
in settlement is determined by considering the class of obligations as a whole. A provision is
recognised even if the likelihood of an outflow with respect to any one item included in the same
class of obligations may be small.
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability.
(s) Resignation allowance and unemployment allowance
(i) Resignation allowance
Under the Vietnamese Labour Code, when an employee who has worked for the Group for 12
months or more (“eligible employee”) voluntarily terminates his/her labour contract, the employer
is required to pay the eligible employee severance allowance calculated based on years of service
from starting date to 31 December 2008 and their average salary for the six-month period prior to
the termination date.
On 9 August 2013, the Ministry of Finance issued official letter No. 10441/BTC-TCDN guiding the
Bank in making the provision for severance allowance. According to this official letter, the Ministry
of Finance does not allow the Bank to make the provision for severance allowance to employees.
Accordingly, the Bank reversed the outstanding balance of the provision for severance allowance
as at 31 December 2012 amounted to VND24,000 million to other income for the year ended
31 December 2013 and will no longer make provision for severance allowance. This change in
accounting policy has been applied prospectively from 2013.
(ii) Unemployment allowance
Under the Vietnamese Labour Code, when an employee who has worked for the Group for
12 months or more (“the eligible employees”) lost his/her job due to the Group’s change of
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Annual Report 2014
organisational structure or technologies, the Group is required to pay the eligible employee
resignation allowance equals to one month of salary for each year that the employee has worked
for the Group up to 31 December 2008, with the minimum amount equals to two months of salary.
Resignation allowance paid to employees is recognised in the consolidated statement of income
when actually paid.
(t) Taxation
Income tax on the statement of income for the year comprises current and deferred tax. Income
tax is recognised in the consolidated statement of income except for the extent that it relates to
items recognised directly to equity, in which case it is recognised in equity.
Current tax is the tax payable on the taxable income for the year, using tax rates enacted at the
reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes. The amount of deferred tax provided is based on the expected
manner of realisation or settlement of the carrying amount of assets and liabilities using tax rates
enacted or substantively enacted at the reporting date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will
be available against which the asset can be utilised. Deferred tax assets are reduced to the extent
that it is no longer probable that the related tax benefit will be realised.
(u) Capital
(i) Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
ordinary shares are recognised as a deduction from equity.
(ii) Share premium
On receipt of capital from shareholders, the difference between the issue price and the par value of
the shares is credited/debited to the share premium account in equity.
(iii) Treasury shares
When the Bank repurchases its ordinary shares (“treasury shares”), the amount of the consideration
paid, which includes directly attributable costs, is recognised as a deduction from equity.
When treasury shares are sold or reissued subsequently, the amount received is recognised as an
increase in equity, and the resulting surplus or deficit on the transactions is transferred to/from
capital surplus.
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(v) Reserves
(i) The Bank
According to Decree No. 57/2012/ND-CP dated 20 July 2012 issued by the Government, the Bank
is required to make the following allocations before distribution of profits:
Annual allocation
Maximum balance
Reserve to supplement charter capital
5% of profit after tax
100% Charter capital
Financial reserve
25% Charter capital
The purpose of the financial reserve is to offset residual asset losses and damage occurring
in the course of business after such losses have been offset with compensation paid by the
organisations, individuals who caused them, indemnity paid by insurers and with the allowance set
up and accounted for in expenses, and shall be used for other purposes in accordance with the law.
The reserves are used for specific purposes and are appropriated from profit after tax of the Bank
according to the proportion prescribed below:
• Reserve to supplement charter capital;
•Financial reserve;
•Investment and development funds, bonus and welfare funds and other reserves: appropriated
according to the resolution of the Annual General Meeting of Shareholders. The appropriation
rates of these reserves are determined by the Annual General Meeting of Shareholders, in
accordance with legal regulations.
The remaining profit after deducting the appropriation of the above reserves and distribution of
dividends to the shareholders is recorded as retained profit of the Bank.
(ii) ACB Securities Company (“ACBS")
According to Circular No. 146/2014/TT-BTC dated 6 October 2014 issued by the Ministry of
Finance, ACBS should appropriate the following reserves:
Annual allocation
Maximum balance
Reserve to supplement contributed
capital
10% Contributed capital
Financial reserve
ACBS is required to make the reserve to supplement contributed capital and the financial reserve
annually. ACBS only appropriates the above reserves at the end of the fiscal year. Reserve to
supplement contributed capital and financial reserve of ACBS are recorded into other funds in the
consolidated balance sheet.
(iii) Asia Commercial Bank Asset Management Company (“ACBA”)
According to Circular 27/2002/TT-BTC issued by the Ministry of Finance on 22 March 2002, the
appropriation of the reserves should be performed according to the regulations applicable for the
Bank. These reserves are treated as other funds in the consolidated balance sheet.
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Annual Report 2014
(iv) ACB Capital Management Company (“ACBC”)
According to Circular No. 146/2014/TT-BTC dated 6 October 2014 issued by the Ministry of
Finance, ACBC should appropriate the following reserves:
Annual allocation
Maximum balance
Reserve to supplement contributed capital
Financial reserve
ACBC is required to make the reserve to supplement contributed capital and the financial reserve
annually. ACBC only appropriates the above reserves at the end of the fiscal year. Reserve to
supplement contributed capital and financial reserve of ACBC are recorded into other funds in the
consolidated balance sheet.
(w) Related parties
Related parties include enterprises and individuals that directly or indirectly through one or
more intermediaries, control, or are controlled by, or are under common control with the Group.
Associates and individuals owning, directly or indirectly, an interest in the voting power of the
Group that gives them significant influence over the Group, key management personnel, including
members of Board of Directors, members of Board of Management, members of Board of
Supervisors, Chief of Financial Officer, Chief Accountant and close members of the family of these
individuals and companies which these individuals directly or indirectly hold significant voting right
or have significant influence over also constitute related parties.
In considering each possible related party relationship, the Group pays attention to the substance
of the relationship, and not merely the legal form.
(x) Fiduciary activities
The Group acts as trustee and in other fiduciary capacities that result in the holding or placing of
assets, loans on behalf of individuals, corporates and other credit institutions.
The value of investment trusts and trust funds received are recognised when the trust contracts
have been signed and trust funds have been realised. Rights and obligations of the truster and
trustee relating to profit and profit sharing, trust fee, other rights and obligations are in compliance
with the terms of the contracts.
Based on the terms of the contracts, fiduciary activities of the Group comprise:
Fiduciary activities at no risk
The Group acts as trustee and in other fiduciary capacities that result in holding assets on behalf of
customers, entrusted investments and loans to customers. These assets are excluded from these
consolidated financial statements as they are not assets of the Group. The Group recognised
entrusted fund as off balance sheet items in accordance with Circular No. 30/2014/TT-NHNN
issued by the SBV on 6 November 2014.
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109
Fiduciary activities at risk
The Group acts as trustee receiving the funds from the Government, international and other credit
institutions to make loans to customers. The Group recognises loans to customers financed by
these funds as its loans and advances to customers. The accounting policies of these loans and
advances to customers are in accordance with the regulations issued by the SBV (Note 4(f)).
(y) Dividend distribution
Dividend distribution to the Bank’s shareholders is recognised as a liability in the consolidated
financial statements when the dividends are approved at the Annual General Meeting of
shareholders.
(z) Earnings per share
The Group presents basic and diluted earnings per share (EPS) for its ordinary shares. Basic EPS is
calculated by dividing the profit or loss attributable to the ordinary shareholders of the Bank, after
deducting the bonus and welfare funds made during the year, by the weighted average number of
ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or
loss attributable to the ordinary shareholders and the weighted average number of ordinary shares
outstanding for the effect of all dilutive potential ordinary shares.
(aa) Segment reporting
A segment is a distinguishable component of the Group that is engaged either in providing related
products or services (business segment), or in providing products or services within a particular
economic environment (geographical segment), which is subject to risks and rewards that are
different from those of other segments. The Group primary format for segment reporting is based
on geographical segments.
(bb) Nil balance
Items or balances required by Decision No. 16/2007/QD-NHNN dated 18 April 2007 issued by the
Governor of the SBV on promulgation of financial statements reporting for credit institutions that
are not shown in these consolidated financial statements indicate nil balances.
5. Cash on hand, gold and gemstones
31/12/2014
31/12/2013
VND million
VND million
1,860,346
1,281,753
544,388
653,876
Valuable papers
40,792
64,671
Gold
50,761
43,190
2,496,287
2,043,490
Cash in VND
Cash in foreign currencies
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Annual Report 2014
6. Balances with the State Bank of Vietnam
These consist of compulsory reserve for liquidity and current deposit at the SBV.
Under the SBV’s regulations relating to the compulsory reserve, banks are permitted to maintain
a floating balance for compulsory reserve requirement (“CRR”). The monthly average balance of
the reserve must not be less than relevant CRR rates multiplied by the preceding month’s average
balances of deposits in scope as follows:
Deposits in scope
CRR rates
31/12/2014
31/12/2013
Deposits in foreign currencies with term of less than 12 months
8%
8%
Deposits in foreign currencies with term of 12 months
and above
6%
6%
Deposits in VND with term of less than 12 months
3%
3%
Deposits in VND with term of 12 months and above
1%
1%
1%
1%
31/12/2014
31/12/2013
VND million
VND million
Current deposit in VND
1,997,941
2,160,753
Current deposit in USD
1,359,789
904,569
3,357,730
3,065,322
Preceding month’s average balances of:
Deposits from customers:
Deposits from foreign credit institutions:
Deposits in foreign currencies
Effective annual interest rates at the year-end were as follows:
31/12/2014
31/12/2013
Within compulsory reserve requirement
1.20%
1.20%
Exceeding compulsory reserve requirement
0.00%
0.00%
Within compulsory reserve requirement
0.00%
0.00%
Exceeding compulsory reserve requirement
0.05%
0.05%
Deposits in VND
Deposits in USD
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111
7. Deposits with and loans to other credit institutions
31 December 2014
Denominated in
VND
Denominated
in foreign
currencies
Total
VND million
VND million
VND million
192,497
283,114
475,611
-
1,285,541
1,285,541
2,120,908
-
2,120,908
2,313,405
1,568,655
3,882,060
1,380,900
-
1,380,900
3,694,305
1,568,655
5,262,960
(703,953)
-
(703,953)
2,990,352
1,568,655
4,559,007
Current deposits at domestic credit institutions
Current deposits at foreign credit institutions
Term deposits with domestic credit institutions (i)
Loans to domestic credit institutions (ii)
Allowance for losses on deposits with other credit
institutions (iii)
31 December 2013
Denominated in
VND
Denominated
in foreign
currencies
Total
VND million
VND million
VND million
44,360
505,007
549,367
-
1,454,245
1,454,245
3,620,908
-
3,620,908
3,665,268
1,959,252
5,624,520
1,985,143
-
1,985,143
5,650,411
1,959,252
7,609,663
(394,144)
-
(394,144)
5,256,267
1,959,252
7,215,519
Allowance for losses on deposits with and loans to
other credit institutions (iii)
(i) Included in term deposits with domestic credit institutions as at 31 December 2014 and 2013 were:
• VND718,908 million (31/12/2013: VND718,908 million) of overdue term deposits which had been
entrusted by the Bank to its employees to deposit at a local commercial joint stock bank (“Bank A”).
The Bank’s employee trustees initiated court proceedings against Bank A for repayment of the
principal of and interest on these deposits. In 2013, the Bank had planned to make allowance for
the deposit balance and decided to reverse the associated interest receivable over three years from
2013 to 2015. This plan was prepared by the Bank as required in “Restructuring credit organisation
system in the 2011 – 2015 period” project to supplement Decision No. 254/QD-TTg dated 1 March
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Annual Report 2014
2012 issued by the Prime Minister and Official letter No. 181/NHNN-TTGSNH.m dated 4 April 2013
issued by the SBV. This plan was approved by the SBV in Official letter No. 8879/NHNN-TTGSNH
dated 27 November 2013 and Official Letter No. 1089/NHNN-TTGSNH dated 25 February 2014.
According to the decision of the appellate court, the Ho Chi Minh City People’s Court ruled that
a former employee of Bank A is obliged to refund the amount of VND694,830 million to the
Bank and Bank A is obliged to refund the amount of VND24,078 million to the Bank. It is unlikely
that this individual is able to refund the amount of VND694,830 million to the Bank. Accordingly,
the Bank made allowance for full amount considered irrecoverable and reversed all associated
interest receivables. The total allowance made as at 31 December 2014 was VND694,830 million
(31/12/2013: VND375,908 million). Total associated interest receivable was VND36,523 million,
VND30,000 million of which was reversed in 2014 (2013: VND6,523 million) (Note 17(iii)). The
additional allowance and the amount of interest reversed in 2014 were approved by the SBV in
Official letter No. 1144/NHNN-TTGSNH dated 27 February 2015.
• VND772,000 million (31/12/2013: VND772,000 million) of term deposits with a local commercial
joint stock bank (“Bank B”) where the deposit term has been extended. On 31 March 2014, the
Bank signed an agreement with Bank B to extend the payment terms of these deposits for a
further 24 months and the new maturity date was agreed to be 4 September 2016. In addition,
the Bank is also in the process of negotiating with Bank B to collect the outstanding term deposits
including through the possible acquisition of assets, loans and bonds held by Bank B. As at 31
December 2014, management believes that the Bank will recover the extended term deposits
and the associated interest receivable (refer to Note 17(iii) for associated interest receivable of
VND99,230 million (31/12/2013: VND65,399 million)) and therefore no allowance has been made
against the outstanding balances.
• VND400,000 million (31/12/2013: VND950,000 million) term deposit with a local commercial
joint stock bank (“Bank C”) of which the associated interest receivable has been overdue. This
term deposit was classified as Group 2 – Special mentioned loans based on number of overdue
days of the interest receivable. In 2014, the Bank has made allowance for losses on deposit with
Bank C amounted to VND9,123 million (2013: nil). As at 31 January 2015, the SBV announced a
mandatory acquisition of all stakes of Bank C at a price of 0 VND per share. In addition, the Bank
is in the process of negotiating with Bank C about the repayment of these deposits including
through the possible acquisition of collaterals against these term deposits or/and the possible
acquisition of debts held by Bank C.
(ii) Loans to domestic credit institutions as at 31 December 2014 and 2013:
• As at 31 December 2013, the Bank had a loan to a local commercial joint stock bank (“Bank D”)
amounted to VND1,193,000 million and the associated interest receivable was VND477,600
million. The loan and the associated interest receivable were due on 28 July 2014. On 15 July 2014,
the Bank decided to waive VND368,132 million of the total accrued interest receivable at the
maturity date of VND519,809 million. The principal amount of this loan and its remaining accrued
interest receivable of VND151,677 million were fully repaid by Bank D on 28 July 2014 (Note 17(iii)).
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113
• As at 31 December 2013, the Bank had term deposits with a local commercial joint stock
bank (“Bank E”) amounted to VND600,000 million. These deposits (which became a loan (see
below)) and the associated interest receivables as at 31 December 2014 of VND111,667 million
(31/12/2013: VND81,250 million) were secured by bonds with a par value of VND600,000 million
issued by a company within the Group of six companies to Bank E.
On 12 August 2013, the Bank signed an agreement with Bank E to convert the term deposits into
a loan of VND 600,000 million when the deposits matured on 10 March 2014. Following this, the
Bank agreed to extend the maturity date of the loan and its associated interest receivable to 9
March 2015.
As at 31 December 2014, management believes that the Bank will be able to fully recover the loan
and its associated interest receivable (Note 17(iii)) therefore no allowance has been made against
the outstanding balances.
(iii) Allowance for losses on deposits with and loans to other credit institutions comprises:
31/12/2014
31/12/2013
VND million
VND million
General allowance
-
18,236
Specific allowance
703,953
375,908
703,953
394,144
Movements in the general allowance for losses on deposits with and loans to other credit institutions
during the year were as follows:
Opening balance
Allowance made during the year
Allowance reversed during the year
Closing balance
2014
2013
VND million
VND million
18,236
15,534
-
2,702
(18,236)
-
-
18,236
Movements in the specific allowance for losses on deposits with and loans to other credit institutions
2014
2013
VND million
VND million
Opening balance
375,908
-
328,045
375,908
Closing balance
703,953
375,908
The specific allowance for losses on deposits with and loans to other credit institutions as at 31
December 2014 comprised VND694,830 million and VND9,123 million of specific allowance for
losses on term deposits with Bank A and Bank C, respectively as disclosed above.
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Annual Report 2014
The effective annual interest rates at the year-end were as follows:
31/12/2014
31/12/2013
Demand deposits with domestic credit institutions in VND
0.10% - 0.50%
0.10% - 1.50%
Demand deposits with domestic credit institutions in foreign currencies
0.00% - 0.10%
0.00% - 0.05%
Demand deposits with foreign credit institutions in foreign currencies
0.00% - 0.22%
0.05% - 0.20%
Term deposits with domestic credit institutions in VND
0.00% - 6.90%
5.00% - 8.60%
Term deposits with domestic credit institutions in foreign currencies
2.25% - 2.70%
2.90% - 3.80%
Loans to domestic credit institutions in VND
4.60% - 9.50%
6.28% - 8.50%
Loans to domestic credit institutions in foreign currencies
2.25% - 2.70%
3.20%
8. Held-for-trading securities
31/12/2014
31/12/2013
VND million
VND million
1,015,684
555,909
Issued by other domestic credit institutions
69,933
270,727
Issued by domestic economic entities
22,615
251,673
1,108,232
1,078,309
(3,110)
(227,148)
1,105,122
851,161
Debt securities
Government bonds
Equity securities
Total held-for-trading securities (i)
Allowance for diminution in the value of held-for-trading securities (ii)
(i) Held-for-trading securities are categorised into listed and unlisted as follows:
31/12/2014
31/12/2013
VND million
VND million
1,015,684
555,909
Listed
20,197
516,382
Unlisted
72,351
6,018
1,108,232
1,078,309
Debt securities
Listed
Equity securities
Total held-for-trading securities
(ii) Movements in the allowance for diminution in the value of held-for-trading securities during the
year were as follows:
Opening balance
Allowance reversed during the year (Note 31)
Closing balance
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2014
2013
VND million
VND million
227,148
264,829
(224,038)
(37,681)
3,110
227,148
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9. Derivatives and other financial assets
31 December 2014
Total contract value (at
foreign exchange rate at
the contract date)
Total carrying value
(at foreign exchange rate as
at 31 December 2014)
Assets
Liabilities
VND million
VND million
VND million
769,174
4,246
-
1,838,997
10,157
-
+ Call options purchased
756,310
-
5,586
+ Put options purchased
424,920
-
1,360
+ Call options written
583,440
6,836
-
+ Put options written
437,008
6,996
-
48,545
-
-
Currency derivatives
• Forward contracts
• Currency swap contracts
• Options purchased (*)
• Options written (*)
Other derivatives
• Interest rate swap contracts
31 December 2013
foreign exchange rate at
the contract date)
(at foreign exchange rate as
at 31 December 2013)
Assets
Liabilities
VND million
VND million
VND million
450,959
-
4,080
2,049,180
4,230
-
85,383
125
-
102,922
-
4,428
168,288
-
6,692
86,094
2,669
-
97,091
-
-
Other derivatives
(*) Total carrying value of assets/liabilities from options purchased and written represented the net
income/(expenses) of outstanding options and was recognised in Other assets/liabilities.
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Annual Report 2014
10. Loans and advances to customers
Loan portfolio by type of loan was as follows:
31/12/2014
31/12/2013
VND million
VND million
114,964,429
105,950,891
Discount bills and valuable papers
329,088
217,358
Finance lease
947,582
972,935
82,558
48,537
Loans to domestic economic entities and individuals
Loans funded by the Government, international and other credit institutions
Payments on behalf of customers
398
300
116,324,055
107,190,021
Loan portfolio by business sector of customers was as follows:
Trading
Agriculture and forestry
Manufacturing and processing
31/12/2014
31/12/2013
VND million
VND million
28,220,351
27,095,125
937,475
1,037,612
21,186,829
20,896,900
Construction
4,279,018
3,806,157
Individual and community services
1,211,384
1,001,678
Warehousing, transportation and communication
2,791,264
3,150,961
146,458
116,841
Real estate 2,265,001
2,205,845
Hotels and restaurants
1,934,505
1,707,964
246,055
100
53,105,715
46,170,838
116,324,055
107,190,021
31/12/2014
31/12/2013
VND million
VND million
Short-term
58,568,473
56,837,993
Medium-term
19,047,553
17,208,970
Long-term
38,708,029
33,143,058
116,324,055
107,190,021
31/12/2014
31/12/2013
VND million
VND million
106,152,191
96,039,217
10,171,864
11,150,804
116,324,055
107,190,021
Training and education
Financial services
Others
Loan portfolio by term was as follows:
Loan portfolio by currency was as follows:
Denominated in VND
Denominated in foreign currencies and gold
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Loan portfolio by type of borrower and type of business was as follows:
31/12/2014
31/12/2013
VND million
VND million
1,896,498
2,684,646
59,334,949
57,996,180
Joint-venture companies
1,199,204
536,554
100% foreign owned companies
1,446,410
389,598
46,139
35,911
52,400,855
45,547,132
116,324,055
107,190,021
State owned enterprises
Joint stock companies, limited liability companies, private companies
Co-operatives
Individuals and others
31/12/2014
31/12/2013
• Short-term
0.07% - 23.00%
0.90% - 22.00%
• Medium-term
0.63% - 24.00%
0.00% - 23.20%
• Long-term
0.00% - 26.25%
0.72% - 22.48%
Loans in VND
Loans in foreign currencies
• Short-term
2.50% - 11.00%
3.00% - 13.30%
• Medium-term
2.25% - 8.85%
2.74% - 11.70%
• Long-term
1.58% - 8.50%
1.62% - 9.80%
2.40% - 5.01%
-
Loans in gold
• Short-term
• Medium-term
• Long-term
7.50%
6.50% - 8.80%
4.00% - 8.50%
4.00% - 8.50%
31/12/2014
31/12/2013
Loan portfolio by loan group was as follows:
VND million
VND million
110,796,873
100,980,134
2,993,934
2,967,018
Group 3 - Sub-standard loans (**)
293,035
656,978
444,308
463,358
Group 1 - Current loans (*)
Group 2 - Special mentioned loans (**)
118
1,795,905
2,122,533
116,324,055
107,190,021
Annual Report 2014
(*) Included in Group 1 – Current loans as at 31 December 2014 was VND4,116,527 million of
loans and advances to customers which was pledged with another bank as security for the
Bank’s borrowings amounted to VND1,062,300 million (Note 19).
(**) Included in Group 3 – Sub-standard loans and in Group 2 – Special mentioned loans as at 31
December 2014 and 2013 were:
• VND8,966 million of loans to a state owned corporation (“the Corporation”) (31/12/2013:
VND464,239 million) where the repayment terms have been extended. In 2014, the Bank
sold part of the loan, amounted to VND458,999 million to the VAMC.
In August 2013, the SBV informed the Bank of the results of their inspection of the
Bank’s operation in 2012. According to the SBV’s inspection results, the loans to the
Corporation were classified in Group 3 – Sub-standard loans and allowances for the loan
balances were made in accordance with Decision 493 and Decision 18 (from 1 June 2014,
superseded by Circular 02 and Circular 09). A specific allowance rate for the loans was 20%
to be established over a three year period from 2013 to 2015 with equal amounts being
provided in each of the three years. The bond balance (Note 12) was classified as Group
3 – Sub-standard loans to be consistent with the categorisation of the loans made to the
Corporation. A specific allowance of 20% of the bond balance was to be established over
a three year period from 2013 to 2015 with equal amounts being provided in each of the
three years. Bond interest receivable is being reversed evenly over three years from 2013
to 2015 (Note 17(iii)). The plan for the allowance and the reversal of bond interest receivable
was made by the Bank as required in the “Restructuring credit organisation system in the
2011 – 2015 period” project to supplement Decision No. 254/QD-TTg dated 1 March 2012
issued by the Prime Minister and Official letter No. 181/NHNN-TTGSNH.m dated 4 April
2013 issued by the SBV. This plan was approved by the SBV as mentioned in Official letter
No. 8879/NHNN-TTGSNH dated 27 November 2013.
On 24 September 2014, the Governor of the SBV approved for the Bank to exchange
bonds issued by the Corporation amounted to VND500,000 million for shares issued by
the Corporation’s related companies in Official Letter No. 6982/NHNN-TTGSNH. In 2014,
the Bank has exchanged VND56,875 million of the bonds for shares issued by two of the
nine companies approved by the SBV. These exchanged equity investments were classified
as available-for-sale securities (Note 12).
During 2014, the Bank has made allowance for losses on bonds issued by the Corporation
and fully reversed the associated interest receivable at 31 December 2013 which were
scheduled to be reversed in 2014 and 2015. The additional allowance and the amount of
interest reversed were approved by the SBV in Official letter No. 1144/NHNN-TTGSNH
dated 27 February 2015.
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119
As at 31 December 2014 and 2013, the outstanding balances and associated allowances
were as follows:
Maturity
Note Outstanding
balances
Loans and advances to
customers
- bonds
12
Specific
allowance
VND million
VND million
8,966
2016
67
-
443,125
8/2013
3,323
67,000
3.390
67.000
General
allowance
Specific
allowance
VND million
VND million
VND million
31/12/2014
General
allowance
452.091
31/12/2013
Maturity
Note Outstanding
balances
VND million
customers
- bonds
Interest receivable from
bonds (i)
464,239
2014, 2018
3,482
18,163
12
500,000
8/2013
-
34,000
17(iii)
94,000
8/2013
-
-
3,482
52,163
1,058,239
(i) Movements in interest receivable from bonds during the year were as follows:
2014
2013
VND million
VND million
94,000
87,500
Addition during the year
Opening balance
-
53,750
Reversal during the year
(94,000)
(47,250)
-
94,000
Closing balance
• VND2,237,284 million (31/12/2013: VND2,237,284 million) loans to the Group of six
companies.
In addition to the above balances of loans, the Group has balances of held-to-maturity securities,
other long-term investments and receivables with these companies. As at 31 December 2014
and 2013, details of the balances, maturity dates and the allowances were as follows:
31/12/2014
Note
Outstanding
balances
Maturity
VND million
General
allowance
Specific
allowance
VND million
VND million
2,237,284
2015, 2018
16,780
67,968
12
2,429,349
2018, 2020
18,220
79,836
13(ii)
20,939
-
3,453
Other receivables
17(ii)
Held-to-maturity securities bonds
1,179,485
5,867,057
120
2015
-
353,846
35,000
505,103
Annual Report 2014
31/12/2013
Note
Outstanding
balances
Maturity
VND million
2,237,284
Held-for-trading securities –
listed equity shares
Specific
allowance
VND million
VND million
24,280
67,297
-
44,921
-
48,903
151,222
Held-to-maturity securities –
bonds
12
13(ii)
20,939
Other receivables
17(ii)
1,654,803
Dividend receivables
Interest receivables
2015, 2018
General
allowance
2,429,349
2018, 2020
-
3,845
-
117,846
-
15,090
-
-
24,280
297,902
2015
41,251
17(iii)
192,000
6,726,848 2015, 2018
During 2012 and at the beginning of 2013, after the Group of six companies elected new
members of the Board of Management and legal representatives and their operations
became more stable, the Bank signed new arrangements with the Group of six companies
which provided that:
• All financial transactions, payments and receipts of these companies have to be
transacted through their bank accounts at the Bank;
• The Bank has the right to require these companies to sell or transfer collateral assets
when their selling prices are higher than their mortgage value; and
• All proceeds received from the companies’ investment portfolios, including investments
not pledged at the Bank, will be used to settle their obligations to the Bank.
Details of collateral assets and other guarantees which are held by the Bank against the
balances with the Group of six companies and other sources of repayment were as follows:
31/12/2014
31/12/2013
Estimated value
Estimated value
VND million
VND million
3,581,303
3,216,096
• Shares of unlisted corporates - joint stock companies
650,281
1,004,648
• Capital contributions in limited liabilities companies
446,478
546,791
• Term deposits at the Bank
176,509
322,126
• Receivables
113,525
100,000
• Guarantee letters issued by other bank
300,000
300,000
5,268,096
5,489,661
212,213
505,237
5,480,309
5,994,898
Collateral assets and other guarantees
• Shares of other credit institutions
Other sources of repayment
• Deposits at the Bank (ii)
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121
(ii) Included in the deposits were VND30,000 million of deposits from a third party to acquire
collateral assets of the Group of six companies. Proceeds from sales of these collaterals
will be used to settle these companies’ obligations to the Bank.
The deposits can be used to settle the Group of six companies’ obligations to the Bank at
any time.
Key assumptions used in evaluating the Group of six companies’ collateral assets and other
sources of repayment were as follows:
31/12/2014
31/12/2013
Estimated value Estimated value
VND million
VND million
Details of the basis used in evaluating collateral assets
• Listed shares
+ Offer price
2,139,733
-
-
1,774,526
14,354
482,170
+ Net book value
626,107
330,831
+ Market value of land owned by the companies or over which the companies have rights for property development
107,124
137,827
+ Valuation model
272,045
385,473
4,538
215,138
1,514,161
1,441,570
• Term deposits at the Bank - carrying amount
176,509
322,126
• Receivables - carrying amount
113,525
100,000
• Guarantee letters issued by other bank - guaranteed amount
300,000
300,000
5,268,096
5,489,661
212,213
505,237
5,480,309
5,994,898
+ Latest transaction prices
• Unlisted shares and capital contributions in limited liability companies
+ Par value
+ Cost
+ Offer price
Details of the basis used in evaluating other sources of repayment
• Deposits at the Bank - carrying amount
In August 2013, the SBV informed the Bank of the results of their inspection of the Bank’s
operations in 2012. Following the SBV’s inspection, the Bank submitted a plan to the SBV
regarding the allowances to be made and interest reversals in relation to the balances with
the Group of six companies as required in the “Restructuring credit organisation system in
the 2011 – 2015 period” project to supplement Decision No. 254/QD-TTg dated 1 March
2012 issued by the Prime Minister and Official letter No. 181/NHNN-TTGSNH.m dated 4
April 2013 issued by the SBV. This plan was approved by the SBV as mentioned in Official
letter No. 8879/NHNN-TTGSNH dated 27 November 2013. The results were:
• Loans to the Group of six companies amounted to VND2,237,284 million as at 31 December
2014 (31/12/2013: VND2,237,284 million) were classified as Group 2 – Special mentioned
loans. The allowances for losses on the loans were made in accordance with Decision 493
and Decision 18 (from 1 June 2014, superseded by Circular 02 and Circular 09).
122
Annual Report 2014
• Bonds issued by the Group of six companies of VND2,429,349 million as at 31 December
2014 (31/12/2013: VND2,429,349 million) (Note 12) were classified as Group 2 – Special
mentioned loans to be consistent with the categorisation of the loans made to the Group
of six companies. The allowances for losses on the bonds were made in accordance
with Decision 493 and Decision 18 (from 1 June 2014, superseded by Circular 02 and
Circular 09).
• Receivables from three companies within the Group of six companies of VND1,179,485
million as at 31 December 2014 (31/12/2013: VND1,179,485 million) (Note 17(ii)) was
to be made allowance at 30% of the balance of the receivables. This allowance was to
be established over a three year period from 2013 to 2015 with equal amounts being
provided in each of the three years.
• Interest receivable on bonds issued by three companies within the Group of six companies
was to be reversed evenly over three years from 2013 to 2015 (Note 17(iii)).
In 2014, the Bank has made full allowance for receivables and fully reversed the associated
bond interest receivable for 2014 and 2015. The additional allowance and the amount of
11. Allowance for losses on loans and advances
to customers
Allowance for losses on loans and advances to customers consists of:
31/12/2014
31/12/2013
VND million
VND million
General allowance (i)
846,376
790,226
Specific allowance (ii)
732,428
757,757
1,578,804
1,547,983
(i) Movements in the general allowance for losses on loans and advances to customers during the
year were as follows:
Opening balance
Closing balance
www.acb.com.vn
2014
2013
VND million
VND million
790,226
753,048
56,150
37,178
846,376
790,226
123
(ii) Movements in the specific allowance for losses on loans and advances to customers during
the year were as follows:
2014
2013
VND million
VND million
Opening balance
757,757
749,034
470,677
429,388
(496,006)
(420,665)
732,428
757,757
Allowance utilised during the year (*)
Closing balance
(*) Included in the allowance utilised during the year was VND220,682 million of allowance related
to loans prior to being sold to the VAMC (2013: VND104,816 million) (refer to Note 12 related
to special bonds issued by VAMC for these loans). Up to 31 December 2014, the Bank sold
VND1,457,053 million of loans to the VAMC, including VND1,036,082 million of loans sold in
2014 (2013: VND420,971 million).
12. Investment securities
31/12/2014
31/12/2013
VND million
VND million
1,796,186
2,070,026
Debt securities
• Treasury bills
20,789,013
4,853,069
• Issued by other domestic credit institutions
• Government bonds
533,140
-
• Issued by domestic economic entities
300,000
-
Equity securities
4,222
4,247
260,700
304,659
23,683,261
7,232,001
(111,223)
(168,687)
23,572,038
7,063,314
4,894,442
16,519,114
5,822,304
3,500,000
• Issued by domestic economic entities (ii)
4,538,833
6,165,008
Total available-for-sale securities
Allowance for diminution in the value of available-for-sale securities (i)
Debt securities
• Special bonds issued by VAMC
1,130,739
318,295
Total held-to-maturity securities
16,386,318
26,502,417
(281,504)
(82,903)
16,104,814
26,419,514
39,676,852
33,482,828
Allowance for losses on held-to-maturity securities (iii)
124
Annual Report 2014
(i) Movements in the allowance for diminution in the value of available-for-sale securities during
2014
2013
VND million
VND million
Opening balance
168,687
248,106
(57,464)
(79,419)
Closing balance
111,223
168,687
(ii) Included in debt securities issued by domestic economic entities as at 31 December 2014
and 2013 were:
• VND2,429,349 million (31/12/2013: VND2,429,349 million) of bonds issued by three
companies within the Group of six companies (Note 10). These bonds will mature in March
2018 and November 2020 and carry interest at 5.29% per annum.
• VND443,125 million (31/12/2013: VND500,000 million) of bonds issued by the Corporation
(Note 10). These bonds matured on 5 August 2013 and carried interest at 10.75% per
annum. On 13 June 2013, the Corporation submitted Official letter No. 1609/HHVN-TC to
the SBV requesting for the SBV’s approval for credit institutions which held bonds issued by
the Corporation to extend the bond payment terms for one more year (new maturity date
is 5 August 2014) and not to change the loan group during this period. In 2014, the Bank
has exchanged VND56,875 million of bonds issued by the Corporation for shares issued
by two of the nine companies that were approved by the SBV in Official letter No. 6982/
NHNN-TTGSNH (Note 10). These shares were classified as available-for-sale securities. For
the remaining bonds of VND443,125 million, the Bank is in the process of negotiating with
the Corporation to collect bonds and associated interest receivables including through the
possible acquisition of the assets held by the Corporation.
The allowance for losses on balances with the Corporation and the Group of six companies
and the reversal of associated interest receivables are explained in Note 10.
(iii) Movements in the allowance for losses on held-to-maturity securities during the year
were as follows:
2014
2013
VND million
VND million
82,903
60,367
198,601
22,536
Closing balance
281,504
82,903
Opening balance
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125
Included in the allowance for losses on held-to-maturity securities as at 31 December 2014 and
2013 were:
• VND100,626 million (31/12/2013: nil) of specific allowance for special bonds issued by the
VAMC in exchange for non-performing loans of the Bank.
• VND79,836 million (31/12/2013: VND48,903 million) of specific allowance and VND18,220
million (31/12/2013: nil) of general allowance made for bonds issued by the Group of six
companies (Note 10).
• VND67,000 million (31/12/2013: VND34,000 million) of specific allowance and VND 3,323 million
(31/12/2013: nil) of general allowance made for bonds issued by the Corporation (Note 10).
13. Long-term investments
31/12/2014
31/12/2013
VND million
VND million
1,278
1,277
329
301
948,030
1,009,334
949,637
1,010,912
(63,069)
(87,936)
886,568
922,976
Investments in a joint venture (i)
Investments in an associate (i)
Other long-term investments (ii)
Allowance for diminution in the value of long-term investments (iii)
(i) The Group’s investments in a joint venture and an associate were as follows:
31/12/2014
%
equity
Cost
Carrying
value
VND million
VND million
1,278
10
1,000
1,277
200
329
10
200
301
1,200
1,607
1,200
1,578
%
equity
Cost
Carrying
value
VND million
VND million
ACB-SJC Saigon Jewelry
Jewelry Joint
production
Stock Company and trading
(“ACB-SJC”)
10
1,000
Asia Commercial Security
Bank Security
services
Services Joint
Stock Company
(“ACBD”)
10
Name
Nature of
business
31/12/2013
The Group classified its investment in ACBD as an investment in an associate although the Group
only owns 10% of the contributed capital because the Group:
• has representatives in the Board of Directors or equivalent management level of this company;
• has the right to take part in policy making process; and
• has significant influence over the financial and operating policies.
126
Annual Report 2014
The Group classified its investment in ACB-SJC as an investment in a joint venture
company because the Group signed a joint control contract with the joint venturer and all
strategic decisions about finance and operations must have the consent of the Group and
the joint venturer.
Movements in investments in an associate and a joint venture company were as follows:
Opening balance
Share of net profit of investee companies using the equity method
Closing balance
2014
2013
VND million
VND million
1,578
1,576
29
2
1,607
1,578
(ii) Other long-term investments where the Group has an equity interest of less than 20%:
31/12/2014
31/12/2013
VND million
VND million
150,000
150,000
• Listed (*)
544,742
544,742
• Unlisted (**)
253,288
314,592
948,030
1,009,334
Allowance for diminution in the value of other long-term investments (iii)
(63,069)
(87,936)
884,961
921,398
Investments in other domestic credit institutions
• Unlisted
Investments in domestic economic entities
(*) Included in investments in listed domestic economic entities as at 31 December 2014 was
VND20,939 million (31/12/2013: VND20,939 million) of equity securities which ACBS purchased
through cooperation contracts with a company within the Group of six companies and of which
the allowance for diminution in the value has been provided amounted to VND3,453 million
(31/12/2013: VND3,845 million) (Note 10).
(**) Movements in unlisted investments in domestic economic entities were as follows:
Opening balance
2014
2013
VND million
VND million
314,592
548,476
-
6,882
Disposal during the year
(61,304)
(240,766)
Closing balance
253,288
314,592
(iii) Movements in the allowance for diminution in the value of other long-term investments
Opening balance
Closing balance
www.acb.com.vn
2014
2013
VND million
VND million
87,936
50,053
-
70,793
(24,867)
(32,910)
63,069
87,936
127
14. Tangible fixed assets
2014
Buildings
and
structures
Office
equipment
Motor
vehicles
Others
Total
VND million
VND million
VND million
VND million
VND million
1,928,268
738,102
337,017
153,997
3,157,384
Cost
Opening balance
Additions
20,140
108,883
858
39,659
169,540
152,615
-
-
557
153,172
(7,000)
(30,208)
(14,643)
(1,923)
(53,774)
Reclassification
-
16,885
-
(28,174)
(11,289)
Closing balance
2,094,023
833,662
323,232
164,116
3,415,033
178,661
466,471
152,705
80,433
878,270
49,236
99,464
26,127
18,503
193,330
Transfer from construction
in progress
Disposals
Opening balance
Charge for the year
(89)
(29,922)
(9,732)
(1,447)
(41,190)
Reclassification
Disposals
-
(299)
-
(1)
(300)
Closing balance
227,808
535,714
169,100
97,488
1,030,110
Opening balance
1,749,607
271,631
184,312
73,564
2,279,114
Closing balance
1,866,215
297,948
154,132
66,628
2,384,923
Buildings
and
structures
Office
equipment
Motor
vehicles
Others
Total
VND million
VND million
VND million
VND million
VND million
913,308
989,099
352,208
192,454
2,447,069
Net book value
2013
Cost
Opening balance
Additions
1,728
49,429
-
17,966
69,123
Transfer from construction
in progress
1,013,232
11,917
7,460
43,167
1,075,776
Transfer to tools and
supplies under Circular 45 (*)
-
(349,658)
(15)
(39,156)
(388,829)
Disposals
-
(21,073)
(22,636)
(2,046)
(45,755)
Reclassification
-
58,388
-
(58,388)
-
Closing balance
1,928,268
738,102
337,017
153,997
3,157,384
150,808
635,983
143,449
78,768
1,009,008
27,853
114,836
26,621
27,718
197,028
-
(263,319)
(15)
(24,164)
(287,498)
Opening balance
Charge for the year
Transfer to tools and
supplies under Circular 45 (*)
Disposals
Closing balance
-
(21,029)
(17,350)
(1,889)
(40,268)
178,661
466,471
152,705
80,433
878,270
762,500
353,116
208,759
113,686
1,438,061
1,749,607
271,631
184,312
73,564
2,279,114
Net book value
Opening balance
Closing balance
128
Annual Report 2014
Included in the cost of tangible fixed assets were assets costing VND334,190 million which were
fully depreciated as of 31 December 2014 (31/12/2013: VND278,436 million), but which were still
in active use.
Carrying amount of temporarily idle equipment in tangible fixed assets amounted to VND3,610
million as of 31 December 2014 (31/12/2013: VND31,782 million).
(*) The reclassification represents net book value of existing fixed assets which do not meet
one of the criteria for recognition as fixed assets as regulated in Article 3 of Circular No.
45/2013/TT-BTC issued by the Ministry of Finance dated 25 April 2013 providing guidance on
management, use and depreciation of fixed assets (“Circular 45”), i.e. costing VND30 million
or more. These assets were reclassified to Tools and supplies and amortised over three years
from the reclassification date.
15. Intangible fixed assets
2014
Land use rights
Software
Total
VND million
VND million
VND million
214,974
176,926
391,900
-
43,520
43,520
16,808
103,899
120,707
Cost
Opening balance
Additions
Transfer from construction in progress
Disposals
-
(38)
(38)
231,782
324,307
556,089
Opening balance
-
118,246
118,246
Charge for the year
-
18,249
18,249
Disposals
-
(38)
(38)
Closing balance
-
136,457
136,457
Opening balance
214,974
58,680
273,654
Closing balance
231,782
187,850
419,632
Closing balance
Net book value
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129
2013
Land use
rights
Software
Cost
VND million
VND million
VND million
-
139,427
139,427
Cost
Opening balance
Additions
-
22,498
22,498
214,974
15,111
230,085
-
(110)
(110)
214,974
176,926
391,900
Opening balance
-
104,034
104,034
Charge for the year
-
14,309
14,309
Transfer to tools and supplies under Circular 45 (*)
-
(97)
(97)
Closing balance
-
118,246
118,246
Closing balance
Net book value
Opening balance
Closing balance
-
35,393
35,393
214,974
58,680
273,654
Included in the cost of intangible fixed assets were assets costing VND104,627 million which were fully
amortised as of 31 December 2014 (31/12/2013: VND 89,492 million), but which were still in active use.
(*) The reclassification represents net book value of existing fixed assets which do not meet one
of the criteria for recognition as fixed assets as regulated in Article 3 of Circular 45, i.e. costing
VND30 million or more. These assets were reclassified to Tools and supplies and amortised
over three years from the reclassification date.
16. Investment property
2014
2013
VND million
VND million
9,015
-
-
9,015
9,015
9,015
-
-
Charge for the year
361
-
Closing balance
361
-
Opening balance
9,015
-
Closing balance
8,654
9,015
Cost
Opening balance
Closing balance
Opening balance
Net book value
130
Annual Report 2014
17. Other assets
31/12/2014
31/12/2013
VND million
VND million
621,969
704,537
5,682,426
5,731,546
7,139
6,981
Receivables
• Construction in progress (i)
• Receivables from customers (ii)
• Receivables from the SBV
• Advances and internal receivables
370,529
345,985
• Corporate income tax overpaid (Note 24)
-
158,844
• Dividend receivables
-
41,252
6,682,063
6,989,145
3,254,051
3,689,556
4,891
12,105
479,349
382,764
78,059
61,615
557,408
444,379
(543,071)
(321,463)
9,955,342
10,813,722
2014
2013
VND million
VND million
Opening balance
704,537
1,792,454
Additions
241,791
262,880
Transfer to tangible fixed assets
(153,172)
(1,075,776)
Transfer to intangible fixed assets
(120,707)
(230,085)
-
(9,015)
Transfer to other assets
(50,480)
(35,921)
Closing balance
621,969
704,537
31/12/2014
31/12/2013
VND million
VND million
612,411
583,061
9,558
121,476
621,969
704,537
Accrued interests and fees receivable (iii)
Deferred income tax assets (Note 24)
Other assets
Prepaid expenses
Other assets
Allowance for losses on other assets (iv)
(i) Construction in progress
Transfer to investment property
Major construction in progress was as follows:
Office buildings
Others
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(ii) Included in receivables from customers as at 31 December 2014 and 2013 were:
• Receivable from ACB Real Estate Joint Stock Company (“ACBR”) for a payment made to
An Tien Limited Company through ACBR to acquire Hoang Anh Gold House apartments
amounted to VND240,637 million as at 31 December 2014 (31/12/2013: VND422,195
million). In accordance with the arrangement between the Group and ACBR, ACBR has
the obligation to sell these apartments to the Group's employees at cost or ACBR can sell
on the open market. The proceeds will be used to clear the advance from the Group. For
apartments sold on the open market, the Group will support selling expenses incurred by
ACBR at rates to be agreed on an individual transaction basis.
• Receivables from three companies within the Group of six companies amounted to
VND1,179,485 million (31/12/2013: four companies of the Group of six companies
amounted to VND1,654,803 million) (Note 10) of which, VND12,628 million (31/12/2013:
VND12,628 million) was interest receivable on principal balances of VND1,166,857 million
(31/12/2013: VND1,166,857 million). The allowance for loss on the receivables as at 31
December 2014 was VND353,846 million (31/12/2013: VND117,846 million).
• Loans from margin trading amounted to VND1,099,479 million (31/12/2013: VND 804,548
million). The loans from margin trading were granted by ACBS to its customers to perform
the margin trading transactions. The loans from margin trading are due within 90 days and
earned daily interest at rates ranging from 0.03% to 0.04% (2013: 0.04% to 0.05%). The
initial margin rate and the maintenance margin rate are 50% and 30% respectively.
(iii) Included in accrued interest and fee receivable as at 31 December 2014 and 2013 were:
• VND99,230 million (31/12/2013: VND65,399 million) of interest receivable from term
deposits with Bank B where the repayment terms were extended until 4 September 2016
(Note 7(i)).
• VND111,667 million (31/12/2013: VND81,250 million) of interest receivable from loans to
Bank E (Note 7(ii)).
In 2014, the Bank fully reversed associated interest receivable from overdue term deposits
with Bank A amounted to VND30,000 million (Note 7(i)). Simultaneously, the Bank also
reversed the full amount of interest receivable from bonds issued by the Corporation
and the Group of six companies for 2014 and 2015 amounted to VND94,000 million and
VND192,000 million respectively (Note 10). The reversal of this interest receivable was
approved by the SBV in Official letter No. 1144/NHNN-TTGSNH dated 27 February 2015.
As at 31 December 2013, the Bank had VND477,600 million of interest receivable from
a loan to Bank D which were due on 28 July 2014. On 15 July 2014, the Bank decided to
waive VND368,132 million of the total accrued interest receivable at the maturity date of
VND519,809 million. The principal amount of this loan and its remaining accrued interest
receivable of VND151,677 million were fully repaid by Bank D on 28 July 2014 (Note 7(ii)).
132
Annual Report 2014
(iv)Movements in the allowance for losses on other assets during the year were as follows:
2014
2013
VND million
VND million
Opening balance
321,463
181,093
236,307
159,841
Allowance utilised during the year
-
(342)
(14,699)
(19,129)
Closing balance
543,071
321,463
18. Borrowings from the State Bank of Vietnam
Short-term borrowings from the SBV secured by valuable papers
31/12/2014
31/12/2013
VND million
VND million
-
1,583,146
31/12/2014
31/12/2013
-
5.50%
Effective annual interest rate at the year-end was as follows:
Borrowings from the SBV in VND
19. Deposits and borrowings from other credit
institutions
31 December 2014
Denominated
in VND
Denominated in
foreign currencies
Total
VND million
VND million
VND million
155,601
6,970
162,571
253
-
253
2,826,317
255,002
3,081,319
2,982,171
261,972
3,244,143
1,838,795
1,062,300
2,901,095
4,820,966
1,324,272
6,145,238
Demand deposits from domestic credit
institutions
Demand deposits from foreign credit
institutions
Term deposits from domestic credit
institutions
Borrowings from domestic credit institutions
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133
31 December 2013
Denominated
in VND
Denominated in
foreign currencies
Total
VND million
VND million
VND million
37,312
72,101
109,413
252
-
252
4,786,651
946,620
5,733,271
4,824,215
1,018,721
5,842,936
1,530,120
420,720
1,950,840
6,354,335
1,439,441
7,793,776
Demand deposits from domestic credit
institutions
Demand deposits from foreign credit
institutions
Term deposits from domestic credit
institutions
Collateral assets of borrowings were as follows:
31 December 2014
Denominated
in VND
Denominated in
foreign currencies
Total
VND million
VND million
VND million
-
4,116,527
4,116,527
Loans and advances to customers (Note 10)
31/12/2014
31/12/2013
Demand deposits from domestic credit institutions in VND
0.00% - 0.50%
0.00% - 0.50%
Demand deposits from domestic credit institutions in foreign
currencies
0.00% - 0.50%
0.00% - 0.50%
Term deposits from domestic credit institutions in VND
3.20% - 4.70%
3.00% - 5.00%
Term deposits from domestic credit institutions in foreign currencies
0.80% - 0.90%
0.40% - 0.70%
Borrowings from domestic credit institutions in VND
3.60% - 6.48%
3.60% - 5.40%
Borrowings from domestic credit institutions in foreign currencies
1.13% - 1.16%
0.65% - 0.70%
20. Deposits from customers
31 December 2014
Current deposits
Denominated
in VND
Denominated in
foreign currencies
Total
VND million
VND million
VND million
18,537,680
2,001,418
20,539,098
Term deposits
16,132,284
304,373
16,436,657
Saving deposits
107,202,448
8,352,092
115,554,540
Margin deposits
1,236,795
318,892
1,555,687
386,309
141,297
527,606
143,495,516
11,118,072
154,613,588
Specialised capital deposits
134
Annual Report 2014
31 December 2013
Denominated
in VND
Denominated
Total
VND million
VND million
VND million
Current deposits
16,113,080
1,685,535
17,798,615
Term deposits
11,413,739
374,259
11,787,998
Saving deposits
96,934,288
9,762,448
106,696,736
Margin deposits
999,752
302,710
1,302,462
189,428
335,597
525,025
125,650,287
12,460,549
138,110,836
Deposits from customers by type of customers and industry sectors were as follows:
31/12/2014
31/12/2013
VND million
VND million
679,000
540,683
21,405,386
19,864,539
Joint ventures
1,404,392
667,674
Foreign companies
1,744,843
517,523
35,152
25,244
127,620,157
115,093,808
1,724,658
1,401,365
154,613,588
138,110,836
31/12/2014
31/12/2013
0.00% - 4.32%
0.00% - 4.32%
Term deposits in VND
0.00% - 12.00%
0.00% - 12.00%
Saving deposits in VND
0.00% - 12.00%
0.00% - 12.80%
Margin deposits in VND
0.00% - 8.00%
0.00% - 10.70%
Specialised capital deposits in VND
0.00% - 1.00%
0.00% - 1.20%
Demand deposits in foreign currencies
0.00% - 0.50%
0.00% - 0.50%
Term deposits in foreign currencies
0.25% - 1.25%
0.25% - 3.69%
Saving deposits in foreign currencies
0.00% - 2.00%
0.00% - 4.60%
Margin deposits in foreign currencies
0.00% - 1.25%
0.00% - 1.95%
Specialised capital deposits in foreign currencies
0.00% - 0.10%
0.00% - 0.10%
State-owned companies
Joint stock, limited liabilities and sole proprietors
Cooperatives
Individuals
Others
Demand deposits in VND
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135
21. Funds received from the Government, international
and other credit institutions
Funds received from Japanese Bank for International Cooperation
in VND (i)
Funds received from Japanese Bank for International Cooperation in
foreign currencies (i)
31/12/2014
31/12/2013
VND million
VND million
158,734
210,664
29,421
33,226
-
643
-
118,812
188,155
363,345
Funds received from Small and Medium Enterprises Development
Fund in VND
Funds received from Rural Development Fund in VND (ii)
(i) Funds received from Japanese Bank of International Co-operation (“JBIC”) are financed
by the Japanese Government via JBIC. Outstanding balances of funds received from JBIC
bear annual interest rates ranging from 5.16% to 5.88% (2013: from 5.88% to 7.44%) for
VND, and 1.91% (2013: 1.91%) for foreign currencies. These funds are granted to small and
medium enterprises with the maximum period of 20 years for medium and long-term loans
and 1 year for short-term loans in accordance with the Lending Agreement signed between
the SBV and the Bank.
(ii) On 25 July 2014, the SBV issued Official letter No. 5391/NHNN-TCKT which requires
financial institutions to classify funds received for rural financing project from “Fund
received from other organisation in VND” account to “Loans from other credit institution
in VND” account. The Bank has performed the reclassification accordingly.
22.Valuable papers issued
31/12/2014
31/12/2013
VND million
VND million
Bonds
One-year bonds issued by ACBS
78,000
200,000
-
300,000
3,000,000
3,000,000
3,078,000
3,500,000
31/12/2014
31/12/2013
8.50% - 9.00%
10.50%
-
7.50% - 15.83%
12.50%
12.50%
Three-year bonds issued by ACBS
Bonds with term of over ten years issued by the Bank
One-year bonds issued by ACBS
Three-year bonds issued by ACBS
136
Annual Report 2014
23.Other liabilities
31/12/2014
31/12/2013
VND million
VND million
1,736,746
1,544,951
-
14,708
237,506
148,273
• Taxes payable to the State Treasury (Note 24)
43,399
11,744
• Unearned revenue
15,286
2,773
1,153,197
963,287
1,353
-
1,450,741
1,126,077
-
57,948
3,187,487
2,743,684
31/12/2014
31/12/2013
VND million
VND million
Accrued interest and fee payables
Deferred tax liabilities (Note 24)
Payables and other liabilities
• Remittances in transit
• Other payables (i)
• Bonus and welfare fund (ii)
Provision for off-balance sheet commitments (iii)
(i) Other payables included:
Cash held on behalf and awaiting settlement
85,630
75,114
Amount awaiting settlement
290,778
361,831
Payables to employees
324,300
302,021
Advances from customers
225,000
-
Other payables
227,489
224,321
1,153,197
963,287
(ii) Movements of bonus and welfare fund for the year were as follows:
Opening balance
2014
2013
VND million
VND million
-
-
Transferred from equity (*) (Note 25)
(3,849)
-
Amount provided during the year (Note 25)
20,000
-
(14,798)
-
1,353
-
Amount utilised during the year
Closing balance
(*) Pursuant to Article 2 of Circular No. 10/2014/TT-NHNN issued by the SBV on 20 March 2014
to supplement and supplement several accounts in the chart of accounts of credit institutions
in conjunction with Decision No. 479/2004/QD-NHNN dated 29 April 2004 of the Governor
of the SBV (“Circular 10”), in 2014, the Bank has transferred its bonus and welfare fund from
equity to other liabilities.
The appropriation to bonus and welfare funds are proposed by the Board of Directors of the
Bank and approved in the Annual General Meeting of Shareholders.
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137
(iii) Movements in the provision for off-balance sheet commitments for the year were as
follows:
Opening balance
2014
2013
VND million
VND million
57,948
48,494
-
9,454
(57,948)
-
-
57,948
Provision made during the year
Provision reversed during the year
Closing balance
24.Taxes payable to State Treasury and deferred
income tax
(i) Taxes payable to State Treasury
2014
Opening
balance
Value added tax
Corporate income tax
Land and housing taxes
Other taxes
2013
Other taxes
Closing
balance
Incurred
Paid
VND million
VND million
VND million
VND million
5,850
67,541
(67,224)
6,167
(158,844)
271,093
(82,116)
30,133
-
112
(111)
1
5,894
111,506
(110,302)
7,098
(147,100)
450,252
(259,753)
43,399
Opening
balance
Value added tax
During the year
During the year
Closing
balance
Incurred
Paid
VND million
VND million
VND million
VND million
(8,868)
79,169
(64,451)
5,850
(246,742)
201,214
(113,316)
(158,844)
1
353
(354)
-
11,274
129,218
(134,598)
5,894
(244,335)
409,954
(312,719)
(147,100)
(ii)Deferred income tax
Deferred tax assets related to deductible temporary differences
Deferred tax liabilities originating from taxable temporary differences
138
31/12/2014
31/12/2013
VND million
VND million
4,891
12,105
-
14,708
Annual Report 2014
25.Capital and reserves
(i) Statement of changes in equity
Charter
capital
Reserve to
supplement
Treasury
charter
shares
capital
Financial
reserve
Other
reserves
Retained
profits
Total
VND
VND
VND
VND
VND
VND
VND
million
million
million
million
million
million
million
Balance at 1
January 2013
9,376,965
-
974,573
1,365,441
242,350
665,123
12,624,452
Net profit for
the year
-
-
-
-
-
826,493
826,493
Purchase of
treasury shares
-
(259,421)
-
-
-
-
(259,421)
Appropriation to
reserves
-
-
41,280
82,559
37,408
(161,247)
-
Reversal of
reserves
-
-
(662,935)
-
(724)
663,659
-
Distribution of
dividends from
2012 profit
-
-
-
-
-
(642,322)
(642,322)
Utilisation of
reserves
-
-
-
-
(45,000)
-
(45,000)
Balance at 1
January 2014
9,376,965
(259,421)
352,918
1,448,000
234,034
1,351,706
12,504,202
Net profit for
the year
-
-
-
-
-
951,802
951,802
Purchase of
treasury shares
-
(405,703)
-
-
-
-
(405,703)
Appropriation to
reserves
-
-
46,112
92,226
30,527
(168,865)
-
Appropriation to
bonus and welfare fund (Note
23(ii))
-
-
-
-
-
(20,000)
(20,000)
Dividends paid
from 2013 profit
(iii)
-
-
-
-
-
(636,847)
(636,847)
Transferred to
other liabilities
(Note 23(ii))
-
-
-
-
3,849
-
3,849
9,376,965
(665,124)
399,030
1,540,226
268,410
1,477,796
12,397,303
Balance at 31
December 2014
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139
Other funds as at 31 December 2014 was investment and construction fund and other funds of
subsidiaries (31/12/2013: included investment and construction fund, bonus and welfare funds
and other funds of subsidiaries).
(ii) Charter capital
31/12/2014
Authorised share capital
Number of
shares
31/12/2013
VND million
Number of
shares
VND million
937,696,506
9,376,965
937,696,506
9,376,965
937,696,506
9,376,965
937,696,506
9,376,965
(41,383,608)
(665,124)
(16,181,131)
(259,421)
896,312,898
8,963,129
921,515,375
9,215,154
Issued share capital
Ordinary shares
Treasury shares
Ordinary shares
Shares in circulation
Ordinary shares
All ordinary shares have a par value of VND10,000. Each share is entitled to one vote at meetings
of shareholders of the Bank. Shareholders are entitled to receive dividends as declared from time
to time. All ordinary shares are ranked equally with regard to the Bank’s residual assets. In respect
of shares bought back by the Bank, all rights are suspended until those shares are reissued.
Movements of the Bank’s capital during the year were as follows:
2014
Number of
shares
VND million
2013
Number of
shares
VND million
Opening balance
921,515,375
9,117,544
937,696,506
9,376,965
Treasury shares purchased
during the year
(25,202,477)
(405,703)
(16,181,131)
(259,421)
Closing balance
896,312,898
8,711,841
921,515,375
9,117,544
(iii) Dividends
The Annual General Meeting of Shareholders of the Bank on 14 April 2014 resolved to distribute
dividends amounted to VND636,847 million in cash from retained profits of 2013 (equivalent to
VND700 per share).
140
Annual Report 2014
26.Interest and similar income
2014
2013
VND million
VND million
(as reclassified)
Interest income from loans and advances to customers and loans to
other credit institutions
Interest income from deposits with other credit institutions
Interest income from investments – debt securities
Interest income from finance leasing
10,251,088
12,083,427
283,772
617,211
2,700,127
2,281,343
96,196
119,919
Income from guarantees activities
207,113
179,400
Other income from credit activities
164,536
103,173
13,702,832
15,384,473
2014
2013
VND million
VND million
27.Interest and similar expenses
Interest expense on deposits
8,374,067
10,131,060
Interest expense on borrowings
126,452
156,166
Interest expense on bonds and certificates of deposits
401,504
504,520
35,176
26,914
8,937,199
10,818,660
2014
2013
VND million
VND million
Other expenses from credit activities
28.Fees and commission income
(as reclassified)
Settlement services
609,287
551,670
31,467
33,598
Brokerage services
157,349
95,595
Other services
146,579
136,380
944,682
817,243
2014
2013
VND million
VND million
Cash services
29.Fees and commission expenses
Settlement and cash services
150,233
141,846
Brokerage services
34,988
23,401
Other services
65,021
60,976
250,242
226,223
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141
30.Net gain/(loss) from trading of foreign currencies
and gold
2014
2013
VND million
VND million
168,654
218,865
34,372
49,652
170,877
151,609
Gains from trading of foreign currencies and gold
• Currency spots
• Gold trading
• Other derivatives
Losses on trading of foreign currencies and gold
• Currency spots
• Gold trading
(9,872)
(23)
(30,779)
(329,409)
(149,618)
(168,310)
183,634
(77,616)
31.Net gain from held-for-trading securities
Gains from trading of held-for-trading securities
Losses on trading of held-for-trading securities
Reversal of diminution in the value of held-for-trading securities
during the year (Note 8)
2014
2013
VND million
VND million
74,538
68,882
(188,203)
(36,571)
224,038
37,681
110,373
69,992
32.Net gain from trading of investment securities
Gains from trading of investment securities
2014
2013
VND million
VND million
196,194
337,787
22,927
155,745
(40,122)
(2,543)
Losses on disposal of other long-term investments
(5,816)
(151,477)
Reversal of allowance for diminution in the value of investment securities
57,464
56,883
230,647
396,395
Gains from disposal of other long-term investments
Losses on trading of investment securities
142
Annual Report 2014
33.Net other income
2014
2013
VND million
VND million
3,480
20,666
380
608
102,738
55,465
106,598
76,739
(3,444)
(20,495)
(384)
(14,322)
(53,711)
(10,121)
(57,539)
(44,938)
49,059
31,801
Other income
Income from other derivatives
Income from other trading activities
Other income
Other expenses
Expenses on other derivatives
Expenses on other trading activities
Other expenses
34.Income from investment in other entities
2014
2013
VND million
VND million
9
43,144
473
3,294
22,000
25,742
29
2
22,511
72,182
Dividend income/shared profit during the year from:
Held-for-trading equity securities
Available-for-sale equity securities
Share of profit from an associate and a joint venture using equity
accounting
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35.Operating expenses
2014
2013
VND million
VND million
(as reclassified)
1. Tax, duties and fees
13,538
9,834
1,741,228
1,567,835
1,543,538
1,399,133
121,491
120,741
3,441
2,816
72,758
45,145
718,006
705,808
• Depreciation and amortisation expenses
211,940
211,337
• Others
506,066
494,471
4. Administration expenses
989,009
1,085,116
5. Insurance for deposits from customers
165,519
160,170
6. Allowance for diminution in the value of long-term investments
and allowance for doubtful debts (*)
236,307
230,634
3,863,607
3,759,397
2. Salaries and related expenses:
In which:
• Salaries and allowances
• Salary related contributions
• Subsidies
• Others
3. Expenses on assets
In which:
(*) Included in allowance for diminution in the value of long-term investments and allowance for
doubtful debts for the year ended 31 December 2014 was allowance for receivables from
three companies of the Group of six companies amounted to VND236,000 million (2013:
VND100,043 million) (Note 10).
36.Income tax
(a) Recognised in the consolidated statement of income
2014
2013
VND million
VND million
270,666
203,631
427
(2,417)
271,093
201,214
(7,494)
8,208
-
(355)
(7,494)
7,853
263,599
209,067
Current tax expense
Current year
Under/(over) provision in prior years
Deferred tax expense
Origination of taxable temporary differences
Effect of change in tax rate applied to temporary differences
Income tax expense
144
Annual Report 2014
(b) Reconciliation of effective tax rate
2014
2013
VND million
VND million
1,215,401
1,035,560
267,388
258,890
(4,952)
(47,090)
• Non-deductible expenses
736
39
• Under/(over) provision in prior years
427
(2,417)
-
(355)
263,599
209,067
Profit before tax
Tax calculated at current tax rate
Adjust for tax effect of:
• Non-taxable income
Different tax rate applied to temporary differences
Income tax expense
(c) Applicable tax rates
The Group has an obligation to pay the government income tax at the rate of 22% and 25% of
taxable profit for the years ended 31 December 2014 and 2013, respectively. The income tax rate
applicable to enterprises before any incentives is 22% for 2014 and 2015, and 20% from 2016.
37. Earnings per share
(a) Basic earnings per share
The calculation of basic earnings per share for the year ended 31 December 2014 was based on
profit attributable to ordinary shareholders of VND931,802 million (2013: VND806,423 million)
and a weighted average number of ordinary shares outstanding of 912,605,284 shares (2013:
928,849,061 shares), calculated as follows:
(i) Net profit attributable to ordinary shareholders
2014
2013
VND million
VND million
Net profit for the year
951,802
826,493
Appropriation to bonus and welfare fund
(20,000)
(20,070)
Net profit attributable to ordinary shareholders
931,802
806,423
2014
2013
Shares
Shares
921,515,375
937,696,506
(8,910,091)
(8,847,445)
912,605,284
928,849,061
(ii) Weighted average number of ordinary shares
Ordinary shares issued in the previous year carried forward
Effect of treasury shares purchased during the year
Weighted average number of ordinary shares
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(iIi) Basic earnings per share
Basic earnings per share
2014
2013
VND
VND
1,021
868
(b) Diluted earnings per share
In 2014, the Bank does not have any dilutive potential ordinary shares. Accordingly, the
requirement of presentation for diluted earnings per share is not applied.
38.Cash and cash equivalents
31/12/2014
31/12/2013
VND million
VND million
2,496,287
2,043,490
Balances with the SBV
3,357,730
3,065,322
Deposits with other credit institutions with original terms to maturity
of three months or less
1,991,152
2,583,613
Treasury bills
1,796,186
2,070,026
9,641,355
9,762,451
2014
2013
VND million
VND million
9,296
9,131
1,543,538
1,399,133
14,113
12,276
3. Total income (1+2)
1,557,651
1,411,409
Average annual salary
166
153
Average annual remuneration
168
155
39.Employees remuneration
Total number of employees
Employees remuneration
1. Total salary and bonus
2. Other remuneration
146
Annual Report 2014
40.Contingent liabilities and commitments
31 December 2014
Denominated
in VND
Denominated in
foreign currencies
Gross amount (*)
VND million
VND million
VND million
Letters of credit at sight
-
2,541,974
2,541,974
Deferred letters of credit
-
3,068,850
3,068,850
1,158,794
116,574
1,275,368
Performance guarantees
830,288
46,484
876,772
Bidding guarantees
220,573
1,062
221,635
1,441,242
83,124
1,524,366
39,275
-
39,275
3,690,172
5,858,068
9,548,240
Payment guarantees
Other guarantees
Lending guarantees
31 December 2013
Denominated
in VND
Denominated in
foreign currencies
Gross amount (*)
VND million
VND million
VND million
-
1,690,802
1,690,802
-
1,783,366
1,783,366
1,029,446
99,314
1,128,760
937,697
44,900
982,597
Bidding guarantees
189,778
3,147
192,925
Other guarantees
978,320
67,238
1,045,558
Lending guarantees
420,070
-
420,070
3,555,311
3,688,767
7,244,078
Payment guarantees
(*) This balance represented the gross amount of contingent liabilities and commitments
as at 31 December 2014 before marginal deposits of VND431,506 million (31/12/2013:
VND390,638 million).
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41.Significant transactions with related parties
As at the year-end and during the year, there were the following significant balances and
transactions with related parties:
Balance at the year-end
31/12/2014
31/12/2013
VND million
VND million
14,927
16,014
Deposits from other related parties (*)
559,636
799,758
Loans to other related parties (*)
654,081
932,329
1,000,000
1,000,000
-
200,000
Advances to and receivables from other related parties (*)
413,366
626,466
Interest receivables from loans to other related parties (*)
19,363
39,109
Interest receivables from bonds issued by a related party (*)
81,152
19,092
55
88
5,523
21,180
17,250
18,500
2014
2013
VND million
VND million
50,145
76,904
816
1,251
46,715
114,478
142,086
121,058
-
700,000
100,000
200,000
13,813
11,986
Remuneration – Members of the Board of Directors
4,960
4,840
Remuneration – Members of the Supervisory Board
2,950
2,416
Deposits from a joint venture and an associate
Investment in bonds issued by a related party (*)
Bonds issued to a related party (*)
Interest payables from deposits to a joint venture and an associate
Interest payables from deposits to other related parties (*)
Entrusted investments received from related parties (*)
Transactions incurred during the year
Interest income from loans to other related parties (*)
Interest expense on deposits from a joint venture and an associate
Interest expense on deposits from other related parties (*)
Fees paid to an associate
Purchased bond issued by a related party (*)
Bonds issued to a related party (*)
Remuneration – Members of the Board of Management
(*) Other related parties comprise key management personnel including members of Board of
Directors, members of Board of Management, members of Board of Supervisors, Chief of
Financial Officer, Chief Accountant and close members of the family of these individuals and
companies which these individuals directly or indirectly hold significant voting right or have
significant influence over.
148
Annual Report 2014
42.Concentration of assets, liabilities and off-balance
sheet commitments by geographical area
Loans and
advances to
customers –
gross
Deposits
from
customers
Contingent
liabilities and
loan commitments
VND
VND
VND
million
million
million
million
million
million
million
116,324,055 154,613,588
3,686,544
41,177,811
3,977,419
6,144,985
2,585,596
-
5,861,696
-
1,285,541
253
2,272,798
116,324,055 154,613,588
9,548,240
41,177,811
5,262,960
6,145,238
4,858,394
As at 31
December
2014
Domestic
Overseas
-
VND
VND
VND
Deposits
with and
loans to
other
Investment
credit
in securities institutions
– gross
– gross
VND
Deposits
and borrowings
from
other
credit institutions Derivatives
Deposits
from
customers
Contingent
liabilities and
loan commitments
VND
VND
VND
VND
VND
VND
VND
million
million
million
million
million
million
million
107,190,021 138,110,836
3,566,016
34,812,727
6,155,418
7,793,524
2,582,280
-
3,678,062
-
1,454,245
252
457,637
107,190,021 138,110,836
7,244,078
34,812,727
7,609,663
7,793,776
3,039,917
Loans and
advances to
customers –
gross
As at 31
December
2013
Domestic
Deposits
Deposits
with and
loans to
and borother
rowings
Investment
credit from other
in securities institutions credit insti– gross
– gross
tutions Derivatives
Overseas
-
43.Segment reporting
(a) Geographical segments
The Group reports segment information by main regions in Vietnam as follows:
For the year ended 31 December 2014
31 December 2014
The Northern
region
The Central
region
The Southern
region
Elimination
Total
Assets
26,667,757
14,269,533
142,642,666
(3,970,185)
179,609,771
Liabilities
26,344,897
14,166,677
128,561,197
(1,860,303)
167,212,468
80,000
123,824
2,600,731
-
2,804,555
VND million
Fixed assets
2014
The Northern
region
The Central
region
The Southern
region
Elimination
Total
Income
3,479,796
1,729,172
10,447,729
(355,420)
15,301,277
Expense
3,156,937
1,626,317
9,395,738
(93,116)
14,085,876
322,859
102,855
1,051,991
(262,304)
1,215,401
VND million
Profit before tax
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149
31 December 2013
The Northern
region
The Central
region
The Southern
region
Elimination
Total
Assets
21,011,234
10,231,493
138,978,977
(3,622,715)
166,598,989
Liabilities
21,044,440
6,207,236
128,364,856
(1,521,745)
154,094,787
91,823
133,553
2,327,392
-
2,552,768
VND million
Fixed assets
2013
VND million
The Northern
region
The Central
region
The Southern
region
Elimination
Total
Income
4,009,859
1,684,519
11,820,893
(698,247)
16,817,024
Expense
3,650,083
1,613,878
11,068,864
(551,361)
15,781,464
359,776
70,641
752,029
(146,886)
1,035,560
Profit before tax
(b) Business segments
The Group has activities in banking, securities trading, assets management, finance leasing and
fund management.
31 December 2014
Banking
Assets
179,897,356
2,267,638
410,127 950,583
54,252 (3,970,185) 179,609,771
Liabilities
167,768,750
576,681
3,668 723,071
601 (1,860,303) 167,212,468
2,749,954
53,377
VND million
Fixed assets
Asset Management
Finance Fund ManLeasing
agement
Securities
Trading
172
1,052
-
Elimination
-
Total
2,804,555
2014
Securities
Trading
Elimination
Total
Income
15,014,460
488,290
46,796 101,070
6,081
(355,420)
15,301,277
Expense
13,910,291
155,240
20,981
90,221
2,259
(93,116)
14,085,876
1,104,169
333,050
25,815
10,849
3,822
(262,304)
1,215,401
Profit before tax
Asset Management
Finance Fund ManLeasing
agement
Banking
VND million
31 December 2013
Banking
Securities
Trading
Assets
166,308,083
2,453,631
407,231 998,604
54,155
(3,622,715) 166,598,989
Liabilities
154,043,196
788,666
11,622 772,361
687
(1,521,745) 154,094,787
2,501,488
50,447
365
Banking
Securities
Trading
Asset Management
VND million
Fixed assets
Asset Management
Finance Fun ManLeasing agement
468
-
Elimination
-
Total
2,552,768
2013
VND million
Finance Fun ManLeasing agement
Elimination
Total
Income
16,598,216
365,877
421,360 122,665
7,153
(698,247)
16,817,024
Expense
15,592,703
262,535
420,551
53,769
3,267
(551,361)
15,781,464
1,005,513
103,342
809
68,896
3,886
(146,886)
1,035,560
Profit before tax
150
Annual Report 2014
44. Financial Risk Management
The Group’s business involves taking on risks in a targeted manner and managing them
professionally. The core functions of the Group’s risk management are to identify all key risks of
the Group, measure these risks, manage the risk positions and determine capital allocations. The
Group regularly reviews its risk management policies and systems to reflect changes in markets,
products and best market practice.
The Group’s aim is to achieve an appropriate balance between risk and return and to minimise
potential adverse effects on the Group’s financial performance.
The Group defines risks as the possibility of losses or profit foregone, which may be caused by
internal or external factors.
Risk management is carried out by a Risk Management Division under the policies approved by
the Board of Directors. The Risk Management Division identifies, evaluates and hedges financial
risks in close co-operation with the Group's operating units. The Board of Directors approves
written principles for overall risk management, as well as written policies covering specific areas,
such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments
and non-derivative financial instruments. In addition, the Internal Audit Committee is responsible
for the independent review of risk management and the control environment. All regulations,
policies, processes of risk management are established, maintained, carried out and controlled
in the consistence with statutes of internal control system issued and applied for the Group.
The financial risks arising from financial instruments which the Group is exposed to include credit
risk, liquidity risk, market risk and operational risk.
(a) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial
instrument fails to meet its contractual obligations. Credit risk mainly arises from lending activities
and guarantees.
The Group is also exposed to other credit risks arising from investments in debt securities and
other exposures arising from its trading activities, including non-equity trading portfolio assets,
derivatives and settlement balances with counterparties. See Notes 7, 8, 10, 12 and 17 for
specified matters related to credit risk.
Credit risk is the largest risk for the Group’s business; management therefore carefully manages
its exposure to credit risk. The credit risk management and control are centralised in a credit risk
management team, which regularly reports to the Board of Management, Credit Committee and
Board Risk Committee.
Management of credit risk for the assessment of impairment and provision
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151
(i) Loans and guarantees
The estimation of credit exposure is carried out before and during the period of lending.
The Group has developed models to support the quantification of the credit risk. These rating
and scoring models are in use for all key credit portfolios and form the basis for measuring default
risks before and during the period of lending.
Where there is an indication of a changing risk profile of large exposure customers which may have
significant negative impact on the loan portfolio of the Group, the management considers and
establishes a separate working group to assess the risk involved, monitor, control and minimise
the exposures on an ongoing basis.
In measuring these credit risks, the Group considers to classify loans and guarantees and make
allowance in accordance with Circular 02 and Circular 09 as disclosed in Note 4(f), 4(g) and 4(l).
(ii) Debt securities
The Group’s investments in debt securities are those issued by the Government, domestic
credit institutions and economic organisations. Credit risk is measured on a case-by-case basis
when the Group reassesses that the risk profile of the counterparty has changed. Investments in
these securities are viewed as a way to gain a better credit quality mapping and maintain a readily
available source to meet the funding requirements at the same time.
Credit risk control and mitigation policies
The Group manages credit risk by placing limits on exposures (for both on and off-balance sheet
exposures) in relation to each borrower, or group of borrowers in accordance with regulations
of the SBV. In addition, exposure to credit risk is also managed through regularly reviewing the
classes of collateral and analysing the ability of borrowers and potential borrowers to meet
interest and capital repayment obligations.
The Group employs a range of policies and practices to mitigate credit risk. The most traditional
practice is the taking of security for loans and advances, which is a common practice. The principal
collateral types for loans and advances are:
• Mortgages over residential properties, land use rights;
• Charges over business assets such as premises, machinery equipment, inventory and account
receivable; and
• Charges over financial instruments such as debt securities and equity securities.
For secured loans, collateral is independently valued by the Group and the Group applies specific
discount rates to determine the maximum amount of loans that can be granted which are
stipulated by the Group’s internal policies. When the market value of collateral is reduced, the Group
will require borrowers to provide additional collateral to maintain the security over loan exposure.
152
Annual Report 2014
Commitments having credit risk mainly include letters of credit and financial guarantees contracts
which carry the same credit risk as loans. Documentary and commercial letters of credit which
are written by the Group on behalf of a customer to authorise a third party to draw drafts on the
Group up to a stipulated amount under specific terms and conditions are collateralised by the
underlying shipments of goods to which they relate and therefore carry less risk than a direct
loan. Issuance of financial guarantee contracts and letters of credit are subject to the same credit
assessment and approval process as those for loans and advances to customers, unless the
customer places 100% margin deposits for the related commitments.
Maximum exposure to credit risk before collateral held or other credit enhancements
The maximum exposure to credit risk is the carrying amounts on the balance sheet as well as
off-balance sheet of financial instruments, without taking into account any collateral held or
other credit enhancements. For contingent liabilities, the maximum exposure to credit risk is the
maximum amount that the Group would have to pay if the obligations of the instruments issued
are called upon. For credit commitments, the maximum exposure to credit risk is the full amount
of the undrawn credit facilities granted to customers. The table below shows the maximum
exposure to credit risk for the Group:
31/12/2014
31/12/2013
VND million
VND million
Deposits with and loans to other credit institutions – gross
5,262,960
7,609,663
Held-for-trading securities – debt securities – gross
1,015,684
555,909
14,403
150
116,324,055
107,190,021
• Debt securities – Available-for-sales securities – gross
23,418,339
6,923,095
• Debt securities – Held-to-maturity securities – gross
16,386,318
26,502,417
9,307,006
9,808,339
171,728,765
158,589,594
9,548,240
7,244,078
181,277,005
165,833,672
Credit risk exposures relating to on balance sheet assets
Loans and advances to customers – gross
Investments securities:
Other financial assets – gross
Credit risk exposures relating to off-balance sheet assets
Contingent liabilities and credit commitments
The above table represents the worst case with the maximum level of loss of the Group as at
31 December 2014 and 31 December 2013, not taking into account any collateral held or other
credit enhancements.
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153
Credit quality
Finanical assets exposed to credit risk are summarised as follows:
Deposits
with and
loans to
other credit
institutions Derivatives
Held-fortrading
securities
Loans and
advances to Investment
customers
securities
Other
financial
assets
Total
VND
VND
VND
VND
VND
VND
VND
million
million
million
million
million
million
million
Balances
neither past
due nor
impaired
4,144,052
14,403
982,554
110,645,538
36,670,516
Balances
past due but
not impaired
-
-
-
151,334
-
3,368
154,702
Balances
impaired
1,118,908
-
33,130
5,527,183
3,134,141
1,371,299
11,184,661
Gross
5,262,960
14,403
1,015,684
116,324,055
39,804,657
Allowance
(703,953)
-
(136)
(1,578,804)
(282,445)
Net
4,559,007
14,403
1,015,548
114,745,251
39,522,212
Specific
allowance
(703,953)
-
-
(732,428)
(247,463)
(543,071)
(2,226,915)
General
allowance
-
-
-
(846,376)
(34,041)
-
(880,417)
Allowance
for
diminution
in value
-
-
(136)
-
(941)
-
(1,077)
(703,953)
-
(136)
(1,578,804)
(282,445)
(543,071)
(3,108,409)
As at 31
December
2014
7,932,339 160,389,402
9,307,006 171,728,765
(543,071)
(3,108,409)
8,763,935 168,620,356
Allowance
154
Annual Report 2014
Deposits
with and
loans to
other credit
As at 31
December
2013
Held-fortrading
securities
Loans and
advances to
customers
Investment
securities
Other
financial
assets
Total
VND
VND
VND
VND
VND
VND
million
million
million
million
million
million
6,890,755
150
555,909
100,621,614
30,496,163
8,079,070
146,643,661
Balances
past due
but not
impaired
-
-
-
358,520
-
371
358,891
Balances
impaired
718,908
-
-
6,209,887
2,929,349
1,728,898
11,587,042
Gross
7,609,663
150
555,909
107,190,021
33,425,512
9,808,339
158,589,594
Allowance
(394,144)
-
-
(1,547,983)
(82,903)
(321,463)
(2,346,493)
Net
7,215,519
150
555,909
105,642,038
33,342,609
9,486,876
156,243,101
Specific
allowance
(375,908)
-
-
(757,757)
(82,903)
(321,463)
(1,538,031)
General
allowance
(18,236)
-
-
(790,226)
-
-
(808,462)
(394,144)
-
-
(1,547,983)
(82,903)
(321,463)
(2,346,493)
Balances
neither past
due nor
impaired
VND
million
Allowance
Collateral
The Group usually accepts collateral for deposits with and loans to other credit institutions, debt
securities, loans and advances to customers and off-balance sheet commitments. Details of
collateral held as at 31 December 2014 and 31 December 2013 were:
31/12/2014
31/12/2013
VND million
VND million
182,708,978
170,674,676
Inventories
2,351,418
1,914,051
Machinery and equipment
8,992,606
8,867,253
Shares and valuable papers
27,389,453
31,390,767
Land and property
Other assets
20,294,262
20,597,858
241,736,717
233,444,605
Collateral held by the Group is recorded as an off-balance sheet item according to the SBV’s
current regulations.
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(b) Market risk
The Group takes on exposure to market risks. Market risks are the risks that the fair value or future
cash flows of a financial instrument will fluctuate because of changes in market prices. Market
risks arise from open positions in interest rate, currency and equity instruments, all of which
are exposed to general and specific market movements and changes in the level of volatility of
market rates or prices such as interest rates, foreign exchange rates and share prices.
Overdue
Non-interest
bearing
Up to 1 month
VND million
VND million
VND million
-
2,496,287
-
-
3,357,730
-
718,908
-
2,161,152
Held-for-trading securities – gross
-
1,108,232
-
-
14,403
-
2,766,184
5,000
2,762,932
443,125
1,395,661
-
Long-term investments – gross
-
949,637
-
Fixed assets
-
2,804,555
-
Investment property
-
8,654
-
Other assets – gross
195,182
9,207,119
1,096,112
4,123,399
21,347,278
6,020,196
-
-
2,796,712
-
-
76,050,155
Funds received from the Government, international and
-
-
-
-
-
-
Other liabilities
-
3,187,487
-
-
3,187,487
78,846,867
4,123,399
18,159,791
(72,826,671)
-
(9,548,240)
-
4,123,399
8,611,551
(72,826,671)
As at 31 December 2014
Assets
Investment securities – gross
Liabilities
Interest sensitivity gap of balance sheet items
Interest sensitivity gap of off-balance sheet items
Total sensitivity interest gap
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Annual Report 2014
(i) Interest rate risk
Cash flow interest rate risk is the risk that future cash flows of financial instruments will fluctuate
because of changes in the market interest rate. Fair value interest rate risk is the risk that the
value of a financial instrument will fluctuate because of changes in the market interest rate. The
Group manages interest rate risk by monitoring the level of mismatch of interest rate by terms on
a monthly basis.
Management of interest rate risk
The following table show the Group’s assets, liabilities and off-balance sheet items categorised
by the real interest adjustment term at the reporting date.
1-3 months
3-6 months
6-12 months
1-5 years
Over 5 years
Total
VND million
VND million
VND million
VND million
VND million
VND million
-
-
-
-
-
2,496,287
-
-
-
-
-
3,357,730
1,002,000
200,900
1,180,000
-
-
5,262,960
-
-
-
-
-
1,108,232
-
-
-
-
-
14,403
97,468,901
5,556,722
6,802,324
767,205
194,787
116,324,055
1,796,185
300,584
3,129,349
31,173,127
1,831,548
40,069,579
-
-
-
-
-
949,637
-
-
-
-
-
2,804,555
-
-
-
-
-
8,654
-
-
-
-
-
10,498,413
100,267,086
6,058,206
11,111,673
31,940,332
2,026,335
182,894,505
3,198,526
150,000
-
-
-
6,145,238
14,798,448
20,335,495
7,507,638
35,921,820
32
154,613,588
158,734
-
-
-
29,421
188,155
-
-
78,000
-
3,000,000
3,078,000
-
-
-
-
-
3,187,487
18,155,708
20,485,495
7,585,638
35,921,820
3,029,453
167,212,468
82,111,378
(14,427,289)
3,526,035
(3,981,488)
(1,003,118)
15,682,037
-
-
-
-
-
(9,548,240)
82,111,378
(14,427,289)
3,526,035
(3,981,488)
(1,003,118)
6,133,797
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Overdue
Non-interest
bearing
Up to 1 month
VND million
VND million
VND million
-
2,043,490
-
-
881,366
2,183,956
718,908
-
2,003,612
-
1,078,309
-
-
150
-
3,438,600
647,395
3,206,081
500,000
627,202
-
-
1,010,912
-
Fixed assets
-
2,552,768
-
Investment property
-
9,015
-
357,783
9,897,984
879,418
5,015,291
18,748,591
8,273,067
Borrowings from the SBV
-
-
1,583,146
-
-
7,767,776
-
-
74,934,711
-
-
-
-
-
-
Other liabilities
-
2,743,684
-
-
2,743,684
84,285,633
5,015,291
16,004,907
(76,012,566)
-
(7,244,078)
-
5,015,291
8,760,829
(76,012,566)
Assets
Liabilities
(ii) Currency risk
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in
foreign exchange rates. The Group was established and operates in Vietnam and the accounting
currency is VND. Major transactions of the Group are also in VND. During the year, exchange rates
between VND and foreign currencies did not fluctuate significantly, except for price of gold. The
Group’s loans and advances to customers were mainly denominated in VND and USD (most of
loan balances in gold as at 31 December 2012 have been converted into VND balance after the
amendment agreements between the Group and its customers). However, some other assets
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Annual Report 2014
1-3 months
3-6 months
6-12 months
1-5 years
Over 5 years
Total
VND million
VND million
VND million
VND million
VND million
VND million
-
-
-
-
-
2,043,490
-
-
-
-
-
3,065,322
580,000
792,143
1,193,000
2,322,000
-
7,609,663
-
-
-
-
-
1,078,309
-
-
-
-
-
150
86,383,414
4,746,964
7,599,679
931,255
236,633
107,190,021
200,000
2,370,026
2,370,000
24,861,518
2,805,672
33,734,418
-
-
-
-
-
1,010,912
-
-
-
-
-
2,552,768
-
-
-
-
-
9,015
-
-
-
-
-
11,135,185
87,163,414
7,909,133
11,162,679
28,114,773
3,042,305
169,429,253
-
-
-
-
-
1,583,146
-
-
-
26,000
-
7,793,776
16,715,072
14,838,465
17,573,082
14,049,422
84
138,110,836
-
643
-
310,107
52,595
363,345
-
300,000
200,000
-
3,000,000
3,500,000
-
-
-
-
-
2,743,684
16,715,072
15,139,108
17,773,082
14,385,529
3,052,679
154,094,787
70,448,342
(7,229,975)
(6,610,403)
13,729,244
(10,374)
15,334,466
-
-
-
-
-
(7,244,078)
70,448,342
(7,229,975)
(6,610,403)
13,729,244
(10,374)
8,090,388
of the Group are denominated in foreign currencies other than USD. The Board of Management
sets limits on the level of exposure by each currency, including gold. The currency position is
monitored daily and the Group takes risk mitigation actions to ensure that the currency position
is within the set limit.
Management of currency risk
The following table show the Group’s assets, liabilities and equity categorised by currencies are
translated into VND at the reporting date.
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159
VND
USD
Gold
VND million
VND million
VND million
1,900,345
493,989
50,761
1,997,941
1,359,789
-
3,694,305
1,457,967
-
1,108,232
-
-
358,043
(364,803)
-
106,152,191
9,569,232
593,154
40,069,579
-
-
949,637
-
-
2,804,555
-
-
Investment property
8,654
-
-
10,144,705
269,962
3,852
169,188,187
12,786,136
647,767
4,820,966
1,324,152
-
143,495,516
10,979,000
-
158,734
-
-
3,078,000
-
-
Other liabilities
2,707,692
286,846
-
12,397,303
-
-
166,658,211
12,589,998
-
FX position on-balance sheet
2,529,976
196,138
647,767
FX position off-balance sheet
(3,690,172)
(5,765,223)
-
FX position on and off-balance sheet
(1,160,196)
(5,569,085)
647,767
Assets
Fixed assets
Liabilities and equity
credit institutions
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Annual Report 2014
EUR
JPY
AUD
CAD
Other
currencies
Total
VND million
VND million
VND million
VND million
VND million
VND million
26,722
5,640
9,095
5,310
4,425
2,496,287
-
-
-
-
-
3,357,730
65,184
23,665
2,060
6,043
13,736
5,262,960
-
-
-
-
-
1,108,232
-
17,800
6,968
(1,834)
(1,771)
14,403
9,478
-
-
-
-
116,324,055
-
-
-
-
-
40,069,579
-
-
-
-
-
949,637
-
-
-
-
-
2,804,555
-
-
-
-
-
8,654
28
63,303
-
9
16,554
10,498,413
101,412
110,408
18,123
9,528
32,944
182,894,505
19
22
79
-
-
6,145,238
74,751
41,435
11,032
1,513
10,341
154,613,588
-
29,421
-
-
-
188,155
-
-
-
-
-
3,078,000
22,190
135,611
8,350
5,685
21,113
3,187,487
-
-
-
-
-
12,397,303
96,960
206,489
19,461
7,198
31,454
179,609,771
4,452
(96,081)
(1,338)
2,330
1,490
3,284,734
(51,910)
(34,408)
(577)
-
(5,950)
(9,548,240)
(47,458)
(130,489)
(1,915)
2,330
(4,460)
(6,263,506)
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161
VND
USD
Gold
VND million
VND million
VND million
1,333,918
579,115
43,190
2,160,753
904,569
-
5,650,411
1,851,145
-
1,078,309
-
-
(23,352)
(19,071)
-
96,039,217
10,304,937
829,402
33,734,418
-
-
1,010,912
-
-
Fixed assets
2,552,768
-
-
Investment property
9,015
-
-
10,725,002
323,322
5,300
154,271,371
13,944,017
877,892
1,583,146
-
-
6,354,335
1,439,291
-
125,650,287
12,279,551
-
330,119
-
-
3,500,000
-
-
Other liabilities
2,216,638
203,071
42
12,504,202
-
-
152,138,727
13,921,913
42
2,132,644
22,104
877,850
Assets
credit institutions
(3,555,311)
(3,463,044)
-
(1,422,667)
(3,440,940)
877,850
(iii) Equity price risk
The Group is exposed to equity price risk. The price risk relating to held-for-trading equity
securities is managed through the analysis of the market movement and investment decision is
made based on the purpose of gaining profit in the short term. Investments in available-for-sale
equity investments are made based on business purpose of the Group, taking into account the
diversification in the investment portfolio.
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Annual Report 2014
EUR
JPY
AUD
CAD
Other
currencies
Total
VND million
VND million
VND million
VND million
VND million
VND million
42,824
10,535
16,699
7,654
9,555
2,043,490
-
-
-
-
-
3,065,322
36,454
38,972
2,553
687
29,441
7,609,663
-
-
-
-
-
1,078,309
44,451
-
(1,878)
-
-
150
16,465
-
-
-
-
107,190,021
-
-
-
-
-
33,734,418
-
-
-
-
-
1,010,912
-
-
-
-
-
2,552,768
-
-
-
-
-
9,015
99
62,674
18,778
10
-
11,135,185
140,293
112,181
36,152
8,351
38,996
169,429,253
-
-
-
-
-
1,583,146
41
24
85
-
-
7,793,776
105,202
43,012
8,439
3,202
21,143
138,110,836
-
33,226
-
-
-
363,345
-
-
-
-
-
3,500,000
75,566
231,154
7,325
4,533
5,355
2,743,684
-
-
-
-
-
12,504,202
180,809
307,416
15,849
7,735
26,498
166,598,989
(40,516)
(195,235)
20,303
616
12,498
2,830,264
(119,070)
(34,263)
-
-
(72,390)
(7,244,078)
(159,586)
(229,498)
20,303
616
(59,892)
(4,413,814)
(iv) Sensitivity analysis
Changes in market risks can result in increase/decrease of the profit which the Group has
recognised.
The sensitivity assessment of market risk can be made based on changes to main risk factors
such as interest rate, currency exchange rate and share prices while other factors are kept
constant. The Group will analyse and present the sensitivity analysis of its market risks when it
has detailed guidance from the regulators.
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163
(c) Liquidity risk
Liquidity risk is the risk that the Group is unable to meet the payment obligations associated
with its financial liabilities when they fall due and to replace funds when they are withdrawn. The
consequence may be the failure to meet obligations to repay depositors, payables and fulfil
commitments to lend. The main management processes include:
Overdue
Over 3 months
Up to 3 months
VND million
VND million
-
-
-
-
718,908
-
-
-
-
-
2,255,151
511,033
443,125
-
-
-
Fixed assets
-
-
Investment property
-
-
191,814
3,368
3,608,998
514,401
-
-
-
-
credit institutions
-
-
-
-
Other liabilities
-
-
-
-
3,608,998
514,401
Assets
Liabilities
Net liquidity gap
164
Annual Report 2014
• Monitor day-to-day mobilisation and lending activities;
• Maintain a portfolio of securities that can be easily converted into cash; and
• Monitor the balance sheet liquidity ratios against the regulatory requirements of the SBV.
Management of liquidity risk
The following table show the Group’s assets and liabilities categorised by the remaining
contractual maturities at the reporting date.
Current
Up to 1 month
1-3 months
3-12 months
1-5 years
Over 5 years
Total
VND million
VND million
VND million
VND million
VND million
VND million
2,496,287
-
-
-
-
2,496,287
3,357,730
-
-
-
-
3,357,730
1,841,152
1,030,900
500,000
1,172,000
-
5,262,960
1,108,232
-
-
-
-
1,108,232
14,403
-
-
-
-
14,403
6,447,239
14,105,413
39,371,562
22,342,812
31,290,845
116,324,055
662,501
2,498,737
4,022,933
26,442,161
6,000,122
40,069,579
-
-
-
-
949,637
949,637
-
-
-
-
2,804,555
2,804,555
-
-
-
-
8,654
8,654
9,123,746
-
1,179,485
-
-
10,498,413
25,051,290
17,635,050
45,073,980
49,956,973
41,053,813
182,894,505
4,250,123
1,036,380
721,881
118,896
17,958
6,145,238
75,634,254
30,508,593
44,930,219
3,443,447
97,075
154,613,588
-
17,280
46,853
94,999
29,023
188,155
-
-
78,000
-
3,000,000
3,078,000
3,187,487
-
-
-
-
3,187,487
83,071,864
31,562,253
45,776,953
3,657,342
3,144,056
167,212,468
(58,020,574)
(13,927,203)
(702,973)
46,299,631
37,909,757
15,682,037
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165
Overdue
Over 3months
Up to 3 months
VND million
VND million
-
-
-
-
718,908
-
-
-
-
-
2,727,182
711,418
500,000
-
-
-
Fixed assets
-
-
Investment property
-
-
357,412
371
4,303,502
711,789
-
-
-
-
-
-
Funds received from the Government, international and other credit
institutions
-
-
-
-
Other liabilities
-
-
-
-
4,303,502
711,789
Assets
Liabilities
Net liquidity gap
(d) Fair value of financial assets and financial liabilities
Circular No. 210/2009/TT-BTC requires the Group to disclose the measurement method and
related information of fair value of financial assets and financial liabilities for the purpose of
comparing their book value and fair value of these financial instruments.
Basis for determining fair values
Cash on hand, gold and gemstones, short-term deposits and short-term borrowings (including
balances with the SBV, deposits with other credit institutions, borrowings from the SBV and
deposits and borrowings from other credit institutions)
166
Annual Report 2014
Current
Up to 1 month
1-3 months
3-12 months
1-5 years
Over 5 years
Total
VND million
VND million
VND million
VND million
VND million
VND million
2,043,490
-
-
-
-
2,043,490
3,065,322
-
-
-
-
3,065,322
2,203,612
980,000
2,265,000
1,442,143
-
7,609,663
1,078,309
-
-
-
-
1,078,309
150
-
-
-
-
150
7,198,742
16,411,379
31,282,438
22,897,442
25,961,420
107,190,021
872,731
2,070,026
4,470,891
20,975,757
4,845,013
33,734,418
-
-
-
-
1,010,912
1,010,912
-
-
-
-
2,552,768
2,552,768
-
-
-
-
9,015
9,015
8,862,917
-
543,000
1,371,485
-
11,135,185
25,325,273
19,461,405
38,561,329
46,686,827
34,379,128
169,429,253
1,583,146
-
-
-
-
1,583,146
7,767,776
-
-
26,000
-
7,793,776
81,350,505
25,181,028
29,744,611
1,816,258
18,434
138,110,836
1,350
20,912
65,078
237,728
38,277
363,345
-
-
500,000
-
3,000,000
3,500,000
2,743,684
-
-
-
-
2,743,684
93,446,461
25,201,940
30,309,689
2,079,986
3,056,711
154,094,787
(68,121,188)
(5,740,535)
8,251,640
44,606,841
31,322,417
15,334,466
Fair value of cash on hand, gold and gemstones, short-term deposits and short-term liabilities
are equivalent to their carrying amount because these instruments have short-term maturity.
Other financial instruments
The Group has not determined fair values of these financial instruments for disclosure in these
consolidated financial statements because there is currently no guidance on determination of
fair value using valuation techniques under Vietnamese Accounting Standards, the Vietnamese
Accounting System for Credit Institutions stipulated by the SBV and the relevant statutory
requirements applicable to financial reporting. The fair values of these financial instruments may
differ from their carrying amounts.
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167
45. Commitments
(a) Capital expenditure
As at 31 December 2014 and 31 December 2013, the Group had the following outstanding
capital commitments approved but not provided for in the consolidated balance sheet:
Approved and contracted
31/12/2014
31/12/2013
VND million
VND million
101,439
57,071
(b) Leases
The future minimum lease payments under non-cancellable operating leases were:
31/12/2014
31/12/2013
VND million
VND million
Within one year
252,050
148,504
Over one year to five years
666,128
558,801
More than five years
281,435
155,725
1,199,613
863,030
168
Annual Report 2014
46. Corresponding figures
Effective from 1 June 2014, the Group adopted Circular 10 to amend and supplement several
accounts in the chart of accounts of credit institutions issued in conjunction with the Decision No.
479/2004/QD-NHNN dated 29 April 2004 of the Governor of the SBV prospectively. As a result
of the change in the chart of accounts, corresponding figures for the year ended 31 December
2013 have been reclassified to conform with the current year's presentation. A comparison of
the amounts previously reported and reclassified is as follows:
(a) Consolidated statement of income
2013
(as reclassified)
(as previously reported)
VND million
VND million
15,384,473
15,205,073
817,243
996,643
(b) Consolidated statement of cash flows
2013
Interest and similar income received
Net fee and commission income received
Nguyen Van Hoa
Chief Accountant
(as reclassified)
VND million
VND million
15,789,968
15,610,568
591,020
770,420
Do Minh Toan General Director
Tran Hung Huy
Chairman
6 March 2015
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169
Separate Financial
After a long period of care, the extraction of cashew
nuts requires a clever and complex process to ensure
nutritional value is not lost and yielding cashew nuts
that are rich in minerals.
Maintaining the nutritional value throughout the
process creates a higher economic value.
In addition to maintaining our
core values, ACB also focuses on
customers to grow with them just
as ACB has accompanied Mr. Do
Thanh Tung (living in Binh Phuoc
Province) for 6 years.
Separate Financial
SEPARATE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
Corporate information 175
Statement of the Board of Management
176
Independent Auditors’ report 178
Separate balance sheet
(Form B02/TCTD)
180
Separate statement of income
(Form B03/TCTD)
182
Separate statement of cash flows
(Form B04/TCTD)
183
Notes to the separate financial statements
(Form B05/TCTD)
174
185
Annual Report 2014
Separate Financial
Establishment and
Operation Licence No,
0032/NH-GP 24 April 1993
The Establishment and Operation Licence was issued by the State Bank
of Vietnam and is valid for 50 years from the licence date.
Business Registration
Certificate No,
0301452948
19 May 1993
The Business Registration Certificate has been amended several times, the
most recent certificate dated 3 September 2014. The Business Registration
Certificate was issued by the Department of Planning and Investment of
Ho Chi Minh City.
Board of Directors
Mr. Tran Hung Huy
Chairman
Ms. Dang Thu Thuy Mr. Tran Mong Hung Mr. Dam Van Tuan
Mr. Tran Trong Kien
Ms. Dinh Thi Hoa
Mr. Huynh Quang Tuan
Vice Chairman
Vice Chairman
Member
Member
Member
Member
Member
Member
Member
Member
(until 14 April 2014)
Board of Management
Mr. Do Minh Toan Mr. Nguyen Thanh Toai Mr. Dam Van Tuan
Mr. Bui Tan Tai Mr. Nguyen Duc Thai Han
Ms. Nguyen Thi Hai
Mr. Le Ba Dung
Mr. Huynh Quang Tuan Mr. Tu Tien Phat
Supervisory Board
www.acb.com.vn
Ms. Hoang Ngan
Ms. Phung Thi Tot
Ms. Nguyen Thi Minh Lan
General Director
(until 31 December 2014)
Head of Supervisory Board
Member
Member
Member
175
Separate Financial
Principal activities
The principal activities of Asia Commercial Joint Stock Bank (“the Bank”) are
to mobilise short, medium and long-term funds in the form of term deposits,
demand deposits; to receive entrusted investment and development funds
from domestic credit institutions; to borrow from other financial institutions;
to grant short, medium and long-term loans; to discount commercial
papers, bonds and other valuable papers; to contribute capital and to invest
in joint-ventures in accordance with the law; to provide settlement services
to customers; to trade foreign currencies, gold; to provide trade finance
services; to mobilise overseas funds and to perform other type of services
when dealing with overseas counterparties in accordance with the approval
of the State Bank of Vietnam; to provide factoring; to trade bonds; trusted
activities and fiduciary activities; insurance agent services; and to provide
other banking services.
Registered Office
442 Nguyen Thi Minh Khai Street
Ward 5, District 3, Ho Chi Minh City, Vietnam
Auditors
KPMG Limited, Vietnam
STATEMENT OF THE BOARD OF MANAGEMENT’S
RESPONSIBILITY IN RESPECT OF THE SEPARATE
The Board of Management is responsible for the preparation and presentation of the separate financial
statements of Asia Commercial Joint Stock Bank (“the Bank”) for the year ended 31 December 2014
in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for Credit
Institutions stipulated by the State Bank of Vietnam and the relevant statutory requirements applicable to
financial reporting. In preparing these separate financial statements, the Board of Management is required to:
• select suitable accounting policies and then apply them consistently;
• make judgments and estimates that are reasonable and prudent;
• state whether applicable accounting standards have been followed, and material differences have
been disclosed and explained in the separate financial statements; and
• prepare the separate financial statements on the going concern basis unless it is inappropriate to
assume that the Bank will continue in business,
The Board of Management is also responsible for ensuring that proper accounting records are kept
which disclose, with reasonable accuracy at any time, the financial position of the Bank and ensuring
that the accounting records comply with the requirements of Vietnamese Accounting Standards, the
176
Annual Report 2014
Separate Financial
Vietnamese Accounting System for Credit Institutions stipulated by the State Bank of Vietnam and the
relevant statutory requirements applicable to financial reporting. It is also responsible for safeguarding
the assets of the Bank and hence for taking reasonable steps for the prevention and detection of fraud
and other irregularities.
The Board of Management confirms that it has complied with the above requirements in preparing the
separate financial statements.
APPROVAL OF THE SEPARATE FINANCIAL
STATEMENTS
I, Do Minh Toan, being General Director and on behalf of the Board of Management, hereby approve the
Bank’s accompanying separate financial statements as of and for the year ended 31 December 2014.
These separate financial statements give a true and fair view of the unconsolidated financial position of
the Bank as of 31 December 2014 and of its unconsolidated results of operations and its unconsolidated
cash flows for the year then ended, prepared in accordance with Vietnamese Accounting Standards, the
Vietnamese Accounting System for Credit Institutions stipulated by the State Bank of Vietnam and the
relevant statutory requirements applicable to financial reporting.
On behalf of the Board of Management
Do Minh Toan
General Director
www.acb.com.vn
177
Separate Financial
INDEPENDENT AUDITORS’ REPORT
To the Shareholders
Asia Commercial Joint Stock Bank
KPMG Limited Branch
10th Floor, Sun Wah Building,
115 Nguyen Hue Street, District 1, HCMC, Vietnam.
ĐT: +84 (8) 3821 9266 - Fax: +84 (8) 3821 9267
Web: kpmg,com,vn
We have audited the accompanying separate financial
statements of Asia Commercial Joint Stock Bank (“the
Bank”), which comprise the separate balance sheet as at 31
December 2014, the related separate statements of income
and cash flows for the year then ended and the explanatory
notes thereto which were authorised for issue by the Bank’s
Board of Management on 6 March 2015, as set out on pages
178 to 269.
The Board of Management’s Responsibility
The Bank’s Board of Management is responsible for the preparation and fair presentation of these
separate financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese
Accounting System for Credit Institutions stipulated by the State Bank of Vietnam and the relevant
statutory requirements applicable to financial reporting, and for such internal control as the Board of
Management determines is necessary to enable the preparation of separate financial statements that
are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these separate financial statements based on our audit.
We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the separate financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgement, including
the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
entity’s preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
178
Annual Report 2014
Separate Financial
Auditor’s Opinion
In our opinion, the separate financial statements give a true and fair view, in all material respects, of the
unconsolidated financial position of the Bank as at 31 December 2014 and of its unconsolidated results
of operations and its unconsolidated cash flows for the year then ended in accordance with Vietnamese
KPMG Limited’s Branch in Ho Chi Minh City
Vietnam
Operating registration certificate No.: 4114000230
Audit Report No.: 14-01-288/1
_____________________________________________________________________
John T. Ditty
Tran Dinh Vinh
Practicing Auditor Registration Practicing Auditor Registration
www.acb.com.vn
179
Separate Financial
Separate balance sheet as at 31 December 2014
Form B02/TCTD
31/12/2014
31/12/2013
Note
VND million
VND million
A
ASSETS
I
5
2,496,266
2,043,413
II
Balances with the State Bank of Vietnam
6
3,357,730
3,065,322
III
Deposits with and loans to other credit institutions
7
4,874,800
7,626,715
1
3,821,446
5,872,190
2
1,757,307
2,149,674
3
Allowance for losses on deposits with and loans to other credit
institutions
(703,953)
(395,149)
IV
1,015,548
555,909
1
1,015,684
555,909
2
(136)
-
8
V
VI
1
2
14,403
150
113,798,958
104,665,125
10
115,353,743
106,178,937
Allowance for losses on loans and advances to customers
11
(1,554,785)
(1,513,812)
VII
Investment securities
12
39,676,852
33,282,828
1
23,683,261
7,232,001
2
16,386,318
26,302,417
3
Allowance for losses on investment securities
(392,727)
(251,590)
VIII
2,790,252
2,835,004
1
Investments in subsidiaries
2,040,000
2,040,000
2
Investments in joint-ventures
1,000
1,000
3
Investments in associates
200
200
4
797,936
858,990
5
Allowance for diminution in the value of long-term investments
(48,884)
(65,186)
IX
Fixed assets
2,749,954
2,501,488
1
Tangible fixed assets
2,330,759
2,227,840
a
Cost
3,325,798
3,073,770
b
(995,039)
(845,930)
13
14
3
Intangible fixed assets
a
Cost
b
XI
Other assets
1
Receivables
2
Accrued interest and fees receivable
3
Deferred tax assets
4
Other assets
5
Allowance for losses on other assets
TOTAL ASSETS
9
15
16
23
419,195
273,648
552,965
389,362
(133,770)
(115,714)
9,122,593
9,732,129
5,911,028
5,950,417
3,240,254
3,659,715
4,891
12,105
508,267
415,432
(541,847)
(305,540)
179,897,356
166,308,083
The accompanying notes are an integral part of these separate financial statements
180
Annual Report 2014
Separate Financial
B
31/12/2014
31/12/2013
Note
VND million
VND million
LIABILITIES AND EQUITY
LIABILITIES
I
Borrowings from the State Bank of Vietnam
17
-
1,583,146
II
18
5,997,390
7,801,022
1
3,246,295
5,850,182
2
2,751,095
1,950,840
III
19
155,515,111
138,669,127
V
credit institutions
20
188,155
363,345
VI
21
3,000,000
3,000,000
VII
Other liabilities
22
3,068,094
2,626,556
1
Accrued interest and fees payable
1,737,261
1,544,418
2
Deferred tax liabilities
-
14,708
3
Other liabilities
1,330,833
1,009,482
4
Provision for off-balance sheet commitments
-
57,948
167,768,750
154,043,196
12,128,606
12,264,887
23
TOTAL LIABILITIES
EQUITY
VIII
24
1
Capital
8,711,841
9,117,544
a
Charter capital
9,376,965
9,376,965
d
Treasury shares
(665,124)
(259,421)
2
Reserves
1,939,377
1,797,019
5
Retained profits
1,477,388
1,350,324
TOTAL EQUITY
12,128,606
12,264,887
179,897,356
166,308,083
TOTAL LIABILITIES AND EQUITY
31/12/2014
31/12/2013
Note
VND million
VND million
OFF-BALANCE SHEET ITEMS
I
CONTINGENT LIABILITIES
1
Lending guarantees
38
39,275
420,070
2
Letters of credit commitments
38
5,610,824
3,474,168
3
Other guarantees
38
3,898,141
3,349,840
9,548,240
7,244,078
Nguyen Van Hoa Chief Accountant
6 March 2015
www.acb.com.vn
Do Minh Toan General Director Tran Hung Huy
Chairman
181
Separate Financial
Separate statement of income
Form B03/TCTD
2014
2013
Note
VND million
VND million
1
25
13,440,026
15,184,589
2
Interest and similar expenses
26
(8,955,948)
(10,798,660)
I
Net interest income
4,484,078
4,385,929
3
27
786,092
720,367
4
Fee and commission expenses
28
(215,248)
(202,392)
II
Net fee and commission income
570,844
517,975
III
Net gain/(loss) from trading of foreign currencies and gold
29
183,451
(77,750)
IV
Net gain from trading of held-for-trading securities
30
12,710
13,435
V
Net gain from trading of investment securities
31
230,000
446,197
5
Other income
81,354
72,279
6
Other expenses
(57,376)
(43,165)
VI
Net other income
32
23,978
29,114
VII
Income from investments in other entities
33
280,827
161,349
VIII
Operating expenses
34
(3,735,962)
(3,626,086)
IX
Operating profit before allowance and provision
expenses for credit losses
2,049,926
1,850,163
X
Allowance and provision expenses for credit losses
(945,757)
(844,650)
XI
Profit before tax
1,104,169
1,005,513
7
Income tax expense - current
35
(189,414)
(177,314)
8
Income tax expense - deferred
35
7,494
(2,603)
XII
Total income tax expense
35
(181,920)
(179,917)
XIII
Profit after tax
922,249
825,596
7, 11, 12, 22
Chairman
6 March 2015
182
Annual Report 2014
Separate Financial
for the year ended 31 December 2014 (Direct method)
Form B04/TCTD
2014
2013
VND million
VND million
CASH FLOWS FROM OPERATING ACTIVITIES
01
13,859,487
15,613,297
02
Interest and similar expenses paid
(8,763,105)
(10,790,757)
03
570,844
517,975
04
Net receipts/payments from foreign currencies, gold and
securities trading activities
351,663
271,023
05
Other expenses paid
(42,589)
(63,873)
06
Collection of bad debts previously written-off
51,844
48,420
07
Salaries and operating expenses paid
(3,275,134)
(3,127,881)
08
Income tax paid during the year
(52,214)
(69,719)
2,700,796
2,398,485
CASH FLOWS FROM OPERATING ACTIVITIES BEFORE
CHANGES IN OPERATING ASSETS AND LIABILITIES
Changes in operating assets
09
Decrease in deposits with and loans to other credit institutions
1,699,290
13,085,089
10
Increase in held-for-trading securities and investment securities
(7,268,776)
(7,387,175)
11
(Increase)/decrease in derivatives and other financial assets
(14,253)
12,188
12
Increase in loans and advances to customers
(9,174,806)
(4,346,834)
13
Utilisation of allowance for losses on loans and advances to
customers
(455,327)
(420,665)
14
(Increase)/decrease in other operating assets
(254,776)
103,835
Changes in operating liabilities
15
(Decrease)/increase in borrowings from the State Bank of Vietnam
(1,583,146)
1,583,146
16
Decrease in deposits and borrowings from other credit institutions
(1,803,632)
(5,966,992)
17
Increase in deposits from customers
16,845,984
11,989,248
18
Decrease in valuable papers issued
-
(15,501,212)
19
(Decrease)/increase in fund received from the Government,
international and other credit institutions
(175,190)
47,295
21
Increase/(decrease) in other operating liabilities
287,085
(1,009,919)
22
Utilisations of reserves
(14,718)
(44,997)
I
NET CASH FLOWS FROM OPERATING ACTIVITIES
788,531
(5,458,508)
www.acb.com.vn
183
Separate Financial
for the year ended 31 December 2014 (Direct method – continued)
Form B04/TCTD
2014
2013
VND million
VND million
(446,140)
(695,847)
11,000
6,907
-
(7,650)
78,224
123,917
CASH FLOWS FROM INVESTING ACTIVITIES
01
Payments for purchases of fixed assets and other longterm assets
02
Proceeds from disposals of fixed assets
07
Payments for other long-term investments
08
Collections on other long-term investments
09
Receipts of dividends and distributions from long-term
investments
338,535
27,163
II
NET CASH FLOWS FROM INVESTING ACTIVITIES
(18,381)
(545,510)
CASH FLOWS FROM FINANCING ACTIVITIES
04
Dividends paid
(636,847)
(642,322)
05
Payment for purchases of treasury shares
(405,703)
(259,421)
III
NET CASH FLOWS FROM FINANCING ACTIVITIES
(1,042,550)
(901,743)
IV
NET CASH FLOWS FOR THE YEAR
(272,400)
(6,905,761)
V
CASH AND CASH EQUIVALENTS AT THE BEGINNING
OF THE YEAR
9,761,779
16,667,540
VII
CASH AND CASH EQUIVALENTS AT THE END OF THE
YEAR (NOTE 36)
9,489,379
9,761,779
Chairman
6 March 2015
184
Annual Report 2014
Separate Financial
Notes to the separate financial statements
Form B05/TCTD
These notes form an integral part of and should be read in conjunction with the accompanying separate
financial statements,
1. Reporting entity
Asia Commercial Joint Stock Bank (“the Bank”) is a commercial joint stock bank incorporated in the
Socialist Republic of Vietnam. The principal activities of the Bank are to carry out banking activities,
under Establishment and Operation Licence No. 0032/NH-GP issued by the State Bank of Vietnam
(“SBV”) on 24 April 1993 for a period of 50 years from the licence date. The Bank’s shares are listed
on the Hanoi Stock Exchange.
As at 31 December 2014, the Bank’s charter capital is VND9,376,965,060,000. The Bank has issued
937,696,506 ordinary shares with a par value of VND10,000.
The Bank’s Head Office is located at 442 Nguyen Thi Minh Khai Street, Ward 5, District 3, Ho Chi Minh
City, Vietnam. As at 31 December 2014, the Bank has one head office, three hundred and forty five
(345) branches and sub-branches nation-wide (31/12/2013: one head office, one main branch, 344
branches and sub-branches).
As at 31 December 2014 and 2013, the Bank had the following subsidiaries:
Subsidiary
Operation
licence
Nature of
business
Percentage of equity owned
and voting rights
31/12/2014
31/12/2013
Securities
company
100%
100%
ACB Securities Company Limited
(“ACBS”)
06/GP/HDKD
Asia Commercial Bank Asset
Management Company Limited
(“ACBA”)
0303539425
Asset
management
company
100%
100%
Asia Commercial Bank Leasing
Company Limited (“ACBL”)
06/GP-NHNN
Finance
leasing
company
100%
100%
ACB Capital Management Company
Limited (“ACBC”) (*)
41/UBCK-GP
Fund
management
company
100%
100%
115/GPDC-UBCK
33/GPDC-UBCK
(*)This percentage is indirectly held by the Bank through a subsidiary, ACBC is a wholly owned subsidiary
of ACBS.
All of the subsidiaries are established in Vietnam.
As at 31 December 2014, the Bank had 8,939 employees (31/12/2013: 8,791 employees).
www.acb.com.vn
185
Separate Financial
2. Basis of preparation
(a)Statement of compliance
The separate financial statements have been prepared in accordance with Vietnamese Accounting
Standards, the Vietnamese Accounting System for Credit Institutions stipulated by the State
Bank of Vietnam and the relevant statutory requirements applicable to financial reporting. These
accounting policies may differ in some material respects from International Financial Reporting
Standards and the generally accepted accounting principles and standards in other countries.
Accordingly, the accompanying separate financial statements are not intended to present the
unconsolidated financial position and unconsolidated results of operations and unconsolidated
cash flows in accordance with generally accepted accounting principles and practices in countries
or jurisdictions other than Vietnam. Furthermore, their utilisation is not designed for those who are
not informed about Vietnam’s accounting principles, procedures and practices.
In addition, the Bank has also prepared consolidated financial statements of the Bank and its
subsidiaries (“the Group”) in accordance with Vietnamese Accounting Standards, the Vietnamese
Accounting System for Credit Institutions stipulated by the State Bank of Vietnam and the
relevant statutory requirements applicable to financial reporting. Users of these separate financial
statements should read them together with the Group’s consolidated financial statements as at
and for the year ended 31 December 2014 in order to obtain full information on the consolidated
financial position and the consolidated financial performance of the Group as a whole.
(b)Basis of measurement
The separate financial statements, except for the separate statement of cash flows, are prepared on
the accrual basis using the historical cost concept. The separate statement of cash flows is prepared
using the direct method.
(c)Annual accounting period
The annual accounting period of the Bank is from 1 January to 31 December.
(d)Accounting and presentation currency
The Bank’s accounting currency is Vietnam Dong (“VND”). The separate financial statements are
presented in Vietnam Dong (“VND”) rounded to the nearest million (“VND million”).
(e)Form of records applied
The Bank uses accounting software to record its transactions.
186
Annual Report 2014
Separate Financial
3. Changes in accounting policies
Except for the changes below, the Bank has consistently applied the accounting policies as set out
in Note 4 to all periods presented in these separate financial statements.
The Bank has adopted Circular No. 02/2013/TT-NHNN dated 21 January 2013 of the SBV
regulating the classification of assets, credit loss allowance level, allowance method and
utilisation of allowance in operations of credit institutions and foreign bank branches (“Circular
02”) and Circular No. 09/2014/TT-NHNN dated 18 March 2014 of the SBV on amendments and
supplementation to certain articles of Circular 02 (“Circular 09”) with the effective date of 1 June
2014 and on a prospective basis. The adoption of Circular 02 and Circular 09 has affected the
following accounting policies:
• Loans and advances to customers – classification and allowance for losses (Notes 4(e)(ii) and 4(e)(iii));
• Allowance for off-balance sheet commitments (Note 4(f));
• Unlisted bonds issued by enterprises classified as available-for-sale securities and held-tomaturity securities – classification and allowance for losses (Note 4(g)(ii) and Note 4(g)(iii)); and
• Deposits with and loans to other credit institutions – classification and allowance for losses (Note 4(l)).
4. Summary of significant accounting policies
The following significant accounting policies have been adopted by the Bank in the preparation of
these separate financial statements.
(a) Foreign currency transactions
Monetary assets and liabilities denominated in currencies other than VND are translated into VND
at rates of exchange ruling at the reporting date. Transactions in currencies other than VND during
the period have been translated into VND at rates ruling on transaction dates.
Foreign exchange differences arising from monthly revaluation are recognised in the foreign
exchange revaluation reserve on the separate balance sheet at each month-end and transferred
to the separate statement of income at the year-end.
(b) Interest income and expenses
Interest income and expense are recognised on an accrual basis, except for interest income from
trading securities being recognised in the separate statement of income on a cash basis. Interest
income is not recognised when a loan becomes overdue (Group 2 to Group 5 as defined in Note 4(e)
(ii)) and is recorded into off-balance sheet items. Interest income on overdue loans is recognised in
the separate statement of income upon receipt.
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187
Separate Financial
(c) Fees and commission income
Fees and commission income consist of fees received from settlement services, treasury services
and other services. Fees and commissions arising from settlement services, treasury services and
other services are recognised upon receipt.
(d)Dividend income
Dividends are recognised in the separate statement of income when the Bank’s right to receive
payment is established.
Share dividends and bonus shares are not recognised in the separate statement of income. The
Bank only recognises the increases in the number of shares.
(e)Loans and advances to customers
(i) Measurement and recognition of loans and advances to customers
Short-term loans are those with repayment term within one year from the loan disbursement
date; medium-term loans are those with repayment term over one year to five years from the loan
disbursement date and long-term loans are those with repayment term of more than five years
from the loan disbursement date.
Loans and advances to customers are stated at the amount of principal outstanding less allowance
for credit losses.
(ii) Classification of loans and advances to customers
Loan classification and allowance for losses are made in accordance with Circular 02 regulating the
classification of assets, credit loss allowance level, allowance method and utilisation of allowance
in operations of credit institutions and foreign bank branches and Circular 09 on amendments and
supplementation to certain articles of Circular 02. The Bank has obtained approval of the SBV to
classify loans and advances to customers in accordance with a qualitative method as permitted in
Article 11 of Circular 02 in Official letter No. 6524/NHNN-TTGSNH dated 27 August 2010.
In accordance with Article 11, Point 6 of Circular 02, the Bank has to classify loans and advances
to customers in accordance with a quantitative method as stipulated in Article 10 of Circular
02 in parallel. In case where there are differences between the result of loan group classified
in accordance with Article 10 and Article 11 of Circular 02 then such loans and advance to
customers have to be classified into loan group with higher risk. The minimum period to classify
loans in accordance with both Article 10 and Article 11 of this Circular is within five years at least
from the date of approval by the SBV for the Bank to classify loans and advances to customers in
accordance with a qualitative method.
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Annual Report 2014
Separate Financial
In accordance with Article 10, Point 3a of Circular 02, amended and supplemented by Circular 09,
credit ratings of restructured loans and advance to customers remains unchanged as before the
restructure provided that the following conditions are met:
•The loan and advance was granted under credit facility which does not violate any law or regulation;
• The restructure of repayment term is in line with the purpose of the project as stated in the loan
agreement;
•The borrower used the loan for the correct purpose;
• The borrower has a new loan repayment plan that is feasible and suitable to its conditions of
business; and
• The Bank remains in compliance with regulations of the SBV on limit, banking safety ratio including
the maximum ratio of short-term funding being used for medium and long-term lending in case
of restructuring short-term loans into medium-term or long-term loans.
As and when the above conditions are met, the Bank restructures the repayment terms of loans
and advances to customers based on the result of its internal rating system without changing their
current credit ratings. Article 10, Point 3a of Circular 02 is effective from 20 March 2014 and expires
from 1 April 2015.
system of the Bank as below:
Classification per the Bank’s internal rating system
Classification per Circular 02
C credit rating
D credit rating
Where a customer owes more than one debt to the Bank, and has any of its debts classified into a
higher risk group of debts, the Bank is obliged to classify the remaining debts of such customer into
the group of debts with higher risk corresponding with their level of risk.
Where the Bank participates in a syndicated loan not as the lead bank, the Bank reclassifies all debts
(including the outstanding syndicated loan) of the customer into a higher risk group of debt as
determined by the lead bank and by the Bank.
Loan classification and allowance for losses were made in accordance with Decision No. 493/2005/
QD-NHNN dated 22 April 2005 (“Decision 493”) and Decision No. 18/2007/QD-NHNN dated 25
April 2007 (“Decision 18”) of the Governor of the SBV. From 1 January 2011, in accordance with
Official letter No. 6524/NHNN-TTGSNH dated 27 August 2010 of the SBV, the Bank has classified
loans and advances to customers according to Article 7 of Decision 493.
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In accordance with Decision No. 780/QD-NHNN dated 23 April 2012 (“Decision 780”), credit
ratings of rescheduled or extended debts of customers whose business and debt repayment
ability are assessed to become positive after their debts are rescheduled or extended remain
unchanged.Accordingly, the Bank reschedules or extends the payment terms of loans and
advances to customers based on the result of its internal rating system without changing the loans
and advances to customers’ current credit ratings.
system of the Bank as below:
Classification per the Bank’s internal rating system
Classification per Decision 493
C credit rating
D credit rating
Where a customer owes more than one debt to the Bank, and has any of its debts classified into a
higher risk group of debts, the Bank was obliged to classify the remaining debts of such customer
Where the Bank participates in a syndicated loan not as the lead bank, the Bank reclassifies all debts
(including the outstanding syndicated loan) of the customer into a higher risk group of debt as
determined by the lead bank and by the Bank.
(iii) Allowance for losses on loans and advances to customers
Specific allowance for losses on loans and advances to customers is calculated using set rates
applied to each loan group as follows:
Allowance rates
0%
5%
20%
50%
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100%
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calculated based on the borrower’s loan balance on the last working day of November) less the
accordance with Circular 02 as follows:
• Collateral asset with value of VND50 billion or more for loans and advances to the Bank’s related
parties or other parties under Article 127 of the Law on Credit Institutions and collateral asset with
value of VND200 billion or more must be valued by a licensed asset valuation organisation.
• Other than the above, collateral assets are valued in accordance with the Bank’s internal policy
and process.
Maximum discounted ratio of collateral assets is determined as follows:
Maximum
discounted ratio
(a) Customers deposits in VND
100%
(b) Gold billets, except for the types of gold specified in (i); customers deposits
95%
(c) Government bonds, transferable instruments, valuable papers issued by
the Bank, savings, certificate of deposit, bills and notes issued by other
credit institutions or foreign bank branches:
• With a remaining term of less than 1 year
95%
85%
80%
(d) Securities issued by other credit institutions and listed on a stock exchange
70%
(e) Securities issued by enterprises and listed on a stock exchange
65%
(f) Unlisted securities and valuable papers, except for the types of securities
specified in (c), issued by other credit institutions registered for listing on a
stock exchange;
50%
Unlisted securities and valuable papers, except for the types of securities
specified in (c), issued by other credit institutions not registered for listing
on a stock exchange
30%
(g) Unlisted securities and valuable papers issued by enterprises registered for
listing on a stock exchange;
30%
Unlisted securities and valuable papers issued by enterprises not registered for listing on a stock exchange
10%
(h) Real estate
50%
(i) Gold billets not having quoted price, other types of gold and other collateral
assets
30%
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Collateral assets that do not satisfy the conditions as specified in Article 12, Point 3 of Circular 02
are deemed to have zero discounted value.
In accordance with Circular 02, a general allowance is made at 0.75% of the outstanding balance of
loans and advances to customers at the end of each quarter (for quarter 4, a general allowance is
made at 0.75% of the outstanding balance of loans and advances to customers at the last working
day of November), excluding the total balance of loans and advances to customers which are
classified as loss loans.
Except for special cases of a state owned corporation as mentioned in Note 10, specific allowance
for losses on loans and advances to customers was calculated using set rates applied to each loan
group as follows:
Allowance rates
0%
5%
20%
50%
100%
The specific allowance is calculated based on the net credit exposure of each borrower, i.e. based on
the borrower’s loan balance at the end of each quarter (for quarter 4, specific allowance is calculated
based on the borrower’s loan balance at the last working day of November) less the discounted
value of collateral assets. The discounted value of collateral assets is determined in accordance with
Decision 493 and Decision 18 as follows:
Maximum
discounted ratio
Balance of deposit accounts, savings, valuable papers in VND issued by credit
institutions
100%
Treasury bills, gold, balance of deposit accounts, savings, valuable papers in
foreign currencies issued by credit institutions
95%
Government bonds:
• With a remaining term of 1 year or less
95%
85%
80%
institutions and listed on a stock exchange or at a securities trading centre
70%
Securities, transferable instruments and valuable papers issued by enterprises
and listed on a stock exchange or at a securities trading centre
65%
Securities, transferable instruments and valuable papers issued by other
credit institutions but not yet listed on a stock exchange or at a securities
trading centre
50%
Real estate
50%
Other types of collateral assets
30%
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In accordance with Decision 493, a general allowance was also required to be made at 0.75%
of the outstanding balance of loans and advances to customers at the end of each quarter (for
quarter 4, a general allowance is made at 0.75% of the outstanding balance of loans and advances
to customers at the last working day of November), excluding the total balance of loans and
advances to customers which were classified as loss loans. Such general allowance was required
to be made in full within five years from the effective date of Decision 493.
(iv) Written-off loans and advances to customers classified as bad debts
Loans are written-off at the discretion of the Bank’s Risk Resolution Committee when they
consider that all reasonable efforts for recovery of bad debts, including legal actions, have been
exhausted.
Loans and advances to customers are written- off against the allowance when loans and advances
to customers have been classified to Group 5 or when borrowers have been declared bankrupt
or dissolved (for borrowers being organisations and enterprises) or borrowers are deceased or
missing (for borrowers being individuals).
Loans written-off against allowance are recorded as off-balance sheet items for following up and
collection. The amount collected from previously written-off loans, including the amount from sales
of collaterals against those loans, is recognised in the separate statement of income upon receipt.
(v) Loans sold to Vietnam Asset Management Company (“VAMC”)
Loans sold to VAMC in accordance with Decree No. 53/2013/ND-CP dated 18 May 2013 issued
by the Government (“Decree 53”), Circular No. 19/2013/TT-NHNN dated 6 September 2013
issued by the SBV (“Circular 19”) are derecognised from the Bank’s balance sheet in accordance
with the guidance in Official Letter No. 8499/NHNN-TCKT dated 14 November 2013 issued by
the SBV and Official Letter No. 925/NHNN-TCKT dated 19 February 2014 issued by the SBV.
Special bond issued by VAMC as consideration for loan sold by the Bank is recognised as held-tomaturity securities in the separate balance sheet (Note 4(g)(iv)).
Upon completing the debt sales transactions, the Bank also utilises the corresponding specific
allowance made but not yet utilised to write down the book values of the bad debts, and writes off
interest receivables recorded in the off-balance sheet account.
(f) Off-balance sheet commitments
Off-balance sheet commitments consist of guarantees, settlement acceptances, and
unconditional and irrevocable commitments with specific time for settlement.
credit quality supervision of credit granting activities in accordance with the same accounting
policy applied to loans and advances as described in Note 4(e).
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Off-balance sheet commitments are classified into five groups as follows:
Group
Definition
1
Current commitments
• Commitments which, according to the Bank’s assessment,
2
Special mentioned
commitments
could be fully settled when they fall due but there are indicators
of declining capability to settle the commitments.
3
Sub-standard commitments
could not be fully settled when they fall due.
4
Doubtful commitments
• Commitments which, according to the Bank’s assessment, are
not highly probably settled by customers.
5
Loss commitments
could not be settled.
Off-balance sheet commitments are classified into five groups based on quantitative and
qualitative factors as follows:
Group
Definition
1
Current commitments
• Undue commitments which, according to the Bank’s assessment,
2
Special mentioned
commitments
3
Sub-standard commitments
4
Doubtful commitments
• Undue commitments which, according to the Bank’s
assessment, could not be fully settled when they fall due; or
• Overdue commitments which are classified in accordance with
the Bank’s assessment.
5
Loss commitments
Provision for losses on off-balance sheet commitments
The classification of off-balance sheet commitments is conducted solely for risk management, credit
quality supervision of credit granting activities. No provision is made for off-balance sheet commitments,
except where the Bank has been required to made payment under the guarantee contract, in which case
the payment on behalf is classified and allowance is made in accordance with accounting policy in Note 4(e).
Specific provision for losses on off-balance sheet commitments was calculated using set rates applied
to each group of off-balance sheet commitments as follows:
Provision rates
Group 1 - Current commitments
0%
Group 2 - Special mentioned commitments
5%
Group 3 - Sub-standard commitments
20%
Group 4 - Doubtful commitments
50%
Group 5 - Loss commitments
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100%
Annual Report 2014
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Specific provision is calculated based on the net credit exposure of each customer which equals the
off-balance sheet commitment balance at the end of each quarter (for quarter 4, specific provision
is calculated based on the off-balance sheet commitment balance of each customer at the last
working day of November) less the discounted value of collateral assets. The discounted value of
these collateral assets is determined in accordance with Decision 493 and Decision 18 (Note 4(e)(iii)).
According to Decision 493, a general provision is also required to be made at 0.75% of the
outstanding balance at the end of each quarter (for quarter 4, a general provision is made at
0.75% of the outstanding balance at the last working day of November) of the off-balance sheet
commitments and excludes the off-balance sheet commitments which are classified as loss
commitments.
accounting policy the Bank has reversed the allowance amounted to VND57,948 million for offbalance sheet commitments during the year.
(g) Investment securities
Investment securities are classified into four categories according to Official letter No, 2601/
NHNN-TCKT dated 14 April 2009 issued by the SBV:
• Held-for-trading securities;
• Available-for-sale securities;
• Held-to-maturity securities; and
• Other long-term investments,
The Bank classifies investment securities at the acquisition date,
(i) Held-for-trading securities
Classification
Held-for-trading securities are securities acquired principally for the purpose of selling in the shortterm, not over one year, for the purpose of short-term profit-taking.
Recognition
The Bank recognises held-for-trading securities on the date it becomes a party to the contractual
Measurement
Held-for-trading securities are stated at cost less allowance for diminution in value. Allowance for
For listed held-for-trading equity securities, the market price is the closing price of securities
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For unlisted held-for-trading equity securities that are actively traded on the OTC market, the
For listed held-for-trading debt securities, the market price is determined based on yield curve
Interest income during the holding period of trading securities is recognised in the separate
statement of income on a cash basis.
The allowance for diminution in the value of held-for-trading securities as mentioned above
does not exceed the carrying amount that would have been determined if no allowance had been
recognised.
Derecognition
Held-for-trading securities are derecognised when the rights to receive cash flows from the
investments have expired or the Bank has transferred substantially all risks and rewards of
ownership.
(ii) Available-for-sale securities
Classification
Available-for-sale securities are debt securities or equity securities which are intended to be held
for an indefinite period and may be sold at any time.
Recognition
The Bank recognises available-for-sale securities on the date it becomes a party to the contractual
Measurement
Available-for-sale unlisted bonds issued by enterprises are stated at cost less allowance for credit
made in accordance with the same accounting policy applied for loans and advances to customers
as described in Note 4(e).
Other available-for-sale securities are stated at cost less allowance for diminution in value.
Allowance for diminution in value is made when the market value is lower than the book value.
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For securities not actively traded in the market or where the market price of those securities can
not be determined, with the exception of unlisted bonds issued by enterprises being classified into
loan group and allowance thereof is made in accordance with the same accounting policy applied
for loans and advances to customers as described in Note 4(e), no allowance is made and such
securities are stated at cost.
Premiums and discounts arising from purchases of available-for-sale securities are amortised
to the separate statement of income using the straight line method over the period from the
separate statement of income at the sale date.
Post-acquisition interest income of available-for-sale securities is recognised in the separate
The allowance for credit loss on unlisted bonds issued by enterprises and allowance for diminution in
value of other available-for-sale securities as mentioned above is reversed if there is a subsequent
increase in the recoverable amount after the allowance was recognised. An allowance is reversed
only to the extent that the investment’s carrying amount does not exceed the carrying amount
that would have been determined if no allowance had been recognised.
Available-for-sale securities are stated at cost less allowance for diminution in value. Allowance for
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Separate Financial
Premiums and discounts arising from purchases of available-for-sale securities are amortised
separate statement of income at the sale date.
Post-acquisition interest income of available-for-sale securities is recognised in the separate
The allowance for diminution in the value of available-for-sale securities as mentioned above is reversed
if there is a subsequent increase in the recoverable amount after the allowance was recognised. An
allowance is reversed only to the extent that the investment’s carrying amount does not exceed the
carrying amount that would have been determined if no allowance had been recognised.
Derecognition
Available-for-sale securities are derecognised when the rights to receive cash flows from the
investments have expired or the Bank has transferred substantially all risks and rewards of ownership.
(iii) Held-to-maturity securities
Classification
Held-to-maturity securities are debt securities with fixed or determinable payments and fixed
maturities where the Bank's management has the positive intention and ability to hold until maturity.
Recognition
The Bank recognises held-to-maturity securities on the date it becomes a party to the contractual
Measurement
Held-to-maturity unlisted bonds issued by enterprises are stated at cost less allowance for credit
made in accordance with the same accounting policy applied for loans and advances as described
in Note 4(e).
Other held-to-maturity securities are stated at cost less allowance for diminution in value. Allowance
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Annual Report 2014
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Premiums and discounts arising from purchases of held-to-maturity securities are amortised
Post-acquisition interest income of held-to-maturity securities is recognised in the separate
The allowance for credit losses on held-to-maturity unlisted bonds issued by enterprises and the
allowance for diminution in the value of other held-to-maturity securities as mentioned above are
reversed if there is a subsequent increase in the recoverable amount after the allowance was recognised.
An allowance is reversed only to the extent that the investment’s carrying amount does not exceed the
Held-to-maturity securities are stated at cost less allowance for diminution in value. Allowance
Premiums and discounts arising from purchases of held-to-maturity securities are amortised
Post-acquisition interest income of held-to-maturity securities is recognised in the separate
The allowance for diminution in the value of held-to-maturity securities as mentioned above is reversed
if there is a subsequent increase in the recoverable amount after the allowance was recognised. An
allowance is reversed only to the extent that the investment’s carrying amount does not exceed the
accounting policy the Bank has made additional general allowance amounted to VND34,041 million
for held-to-maturity unlisted bonds issued by enterprises during the year.
Derecognition
Held-to-maturity securities are derecognised when the rights to receive cash flows from the
(iv) Special bonds issued by VAMC
Classification
Special bonds issued by VAMC as consideration for bad debts sold by the Bank to VAMC are
recognised as held-to-maturity securities.
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Recognition
Special bonds are recognised at par value at the transaction date.
Measurement
Special bonds are carried at par value less specific allowance during holding period.
Under VAMC’s bad debt purchasing scheme, par value of the special bond is equal to the carrying
value of bad debts sold net of specific allowance which was made but not yet utilised.
Specific allowance for losses in respect of the special bonds are required to be made in accordance
with Decree 53 and Circular 19. Accordingly, the Bank makes specific allowance annually with the
minimum amount of 20% par value of each special bond within 5 working days prior to the date of
that year corresponding to the maturity date of the special bond. General allowance is not required
to be made for these special bonds.
When receiving back loans previously sold to VAMC, the Bank uses the specific allowance for special
bonds to write off bad debts and recognises the difference between allowance for losses on special
bonds and the uncollectable loan balance in the separate statement of income.
(v) Other long-term investments
Classification
Other long-term investments are investments in the equity of entities where the Bank has no
control or significant influence. These investments must have a period of holding, recovering or
paying off more than one year with the purpose of gaining benefits in the following cases:
• The Bank is a founding shareholder;
• The Bank is a strategic partner; or
• The Bank has a significant influence on the process of establishment, approval of financial and
operating policies through written agreements about having the Bank’s personnel joining the
investee’s Board of Management/Board of Directors,
Recognition
The Bank recognises other long-term investments on the date it becomes a party to the contractual
provisions of these investments (trade date accounting).
Measurement
These long-term investments are stated at cost less allowance for diminution in value. Allowance for
diminution in value is made if the total actual contributed capital exceeds the owner’s equity of the
investee in accordance with Circular No. 228/2009/TT-BTC dated on 7 December 2009 issued by the
Ministry of Finance (“Circular 228”) and Circular No. 89/2013/TT-BTC dated on 28 June 2013 issued
by the Ministry of Finance (“Circular 89”). Accordingly, the allowance is equal to the difference between
the total contributed capital and the owner’s equity multiplied (x) by the proportion of the Bank’s actual
contributed capital to the total contributed capital of the investors. The allowance is reversed if there
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Annual Report 2014
Separate Financial
is a subsequent increase in the recoverable amount after the allowance was recognised. An allowance
is reversed only to the extent that the investment’s carrying amount does not exceed the carrying
amount that would have been determined if no allowance had been recognised.
Derecognition
Other long-term investments are derecognised when the rights to receive cash flows from these
(h) Investments in subsidiaries, associates and jointly controlled entities
Subsidiaries are entities controlled by the Bank. Jointly controlled entities are those entities over
whose activities the Bank has joint control, established by contractual agreement and requiring
unanimous consent for strategic financial and operating decisions. Associates are those entities in
which the Bank has significant influence, but not control, over the financial and operating policies.
Investments in subsidiaries, jointly controlled entities and associates are stated at cost less
allowances for diminution in value in the separate financial statements of the Bank. An allowance
is made if the total actual contributed capital is higher than the owner’s equity of the investee in
accordance with Circular 228 and Circular 89. Accordingly, the allowance is equal to the difference
between the total contributed capital and the owner’s equity multiplied (x) by the proportion of the
Bank’s actual contributed capital to the total contributed capital of the investors. The allowance is
been recognised.
(i) Derivative financial instruments
Currency forward and currency swap contracts
Currency forward and currency swap contracts are recorded at contract value in the separate
financial statements.Differences between the currency amounts which are committed to buy/sell
at the contractual exchange rate and the buy/sell committed currency amounts translated at the
spot exchange rate at the effective dates of the currency forward contracts and currency swap
contracts are amortised to the separate statement of income on a straight-line basis over the
terms of the contracts.
Currency forward contracts are revalued at the spot exchange rate at month-end. Any unrealised
gains/losses are recognised in the foreign exchange revaluation reserve on the separate balance
sheet at each month-end and transferred to the separate statement of income at year-end.
Cross currency swap contracts
For cross currency swap of parties to exchange interest payments and principals denominated in two
different currencies which are exchanged at the effective date, the contract value is recognised on the
separate balance sheet. Income earned and expenses incurred are recognised on an accrual basis.
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Currency option contracts
The committed value in currency option contract transactions is not recognised in the separate
balance sheet. Any paid or received option premium is recognised as deferred expense or revenue
and amortised to the separate statement of income on a straight-line basis over the terms of the
contracts.
Currency option contracts are revalued at the spot exchange rate at month-end. Unrecognised
gains/losses are recognised in the foreign exchange revaluation reserve on the separate balance
sheet at each month-end and transferred into the separate statement of income at year-end.
(j)Gold
Gold is revalued at each month-end. Differences from the monthly revaluation are recognised in
the foreign exchange revaluation reserve on the separate balance sheet at each month-end and
transferred to the separate statement of income at year-end.
(k)Cash and cash equivalents
For the presentation of separate statement of cash flows, cash and cash equivalents comprise
cash, gold, precious metals and gemstones, demand deposits at the SBV; promissory notes and
other short-term valuable papers qualified to be discounted at the SBV; securities which have
maturities date within 3 months from purchase date; and demand and term deposits at other
credit institutions with original maturity of three months or less.
(l) Deposits with and loans to other credit institutions
(i) Deposits with other credit institutions
Deposits with other credit institutions include demand deposits and term deposits.
Demand deposits with other credit institutions are stated at the amount of principal outstanding.
Term deposits with other credit institutions are stated at the amount of principal outstanding less
specific allowance.
In accordance with Circular No. 21/2012/TT-NHNN issued on 18 June 2012 by the SBV, effective from
1 September 2012 (“Circular 21”) and Circular No. 01/2013/TT-NHNN issued on 7 January 2013 by
the SBV (“Circular 01”) to amend and supplement Circular 21, credit institutions are only allowed to
undertake deposits for which the maximum term is three months with other credit institutions and
foreign banks’ branches. New deposits with over three months term after the effective date of these
circulars are classified as loans to other credit institutions.
Credit risk classification of term deposits with other credit institutions and allowance thereof is
made in accordance with Circular 02 and Circular 09 being similar to those policies on loans to other
credit institutions as described in Note 4(l)(ii).
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Deposits with other credit institutions are stated at the amount of principal outstanding. In
accordance with Circular 21 and Circular 01 to amend and supplement Circular 21, credit institutions
are only allowed to undertake deposits for which the maximum term is three months with other
credit institutions and foreign banks’ branches. New deposits with over three months term after
the effective date of these circulars are classified as loans to other credit institutions.
Circular 21 and Circular 01 do not provide guidance on how to account for and make allowance
for deposits with other credit institutions including those for which the payment terms have been
extended or are overdue.
accounting policy, the Bank made allowance for losses on deposits with other credit institutions of
VND328,045 million as mentioned in Note 7.
(ii) Loans to other credit institutions
Loans to other credit institutions are stated at the amount of principal outstanding less specific
allowance.
The specific allowance is calculated based on the net credit exposure of each credit institution,
i.e. based on the credit institution’s loan balance at the end of each quarter (for quarter 4, specific
allowance is calculated based on the credit institution’s loan balance at the last working day of
November) less the discounted value of collateral assets. The discounted value of collateral assets
is determined in accordance with the principles as set out in Circular 02 as mentioned in Note 4(e)(iii).
Credit risk classification of loans to other credit institutions and allowance thereof is made
in accordance with Circular 02 and Circular 09. The Bank has classified loans to other credit
institutions in accordance with a quantitative method as permitted in Article 10 of Circular 02.
1
Group
Overdue status
Current
loans
(a) Current loans being assessed as fully and timely recoverable, both
principals and interests; or
(b) Loans being overdue less than 10 days and being assessed as fully
recoverable, both overdue principals and interests, and fully and
timely recoverable, both remaining principals and interests.
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Allowance
rates
0%
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Separate Financial
Group
Overdue status
Allowance
rates
2
(a) Loans being overdue between 10 days to 90 days; or
mentioned (b) Loans having been rescheduled terms of repayments for the first time.
loans
3
Substandard
loans
(b) Loans having been extended terms of repayments for the first time; or
(c) Loans having been exempted or reduced interests because
customers are not able to pay the interests according to credit
contracts; or
(d) Loans being fallen in one of the following cases:
• Loans to customers or guarantee parties being organisations,
individuals who are not subjected to credit granting by credit
institutions, foreign bank branches as prescribed by law.
• Loans being secured by securities of the Bank or its subsidiaries or
loans being used to contribute capital to another credit institution
on the basis that collateral assets pledged to the Bank are securities
issued by invested credit institution.
• Unsecured loans or loans being granted under preferential
conditions or having value exceeding 5% of the Bank’s capital when
granting credit to restricted customers as prescribed by law.
• Loans to the Bank’s subsidiaries, associates or enterprises in
which the Bank holds the right to control that exceeds the limit as
prescribed by law.
• Loans having value exceeding credit limit, unless being allowed as
prescribed by law.
• Loans having violated the credit limit, foreign exchange management
and safety ratio applied for the Bank as prescribed by law.
• Loans having violated the Bank’s internal regulations on credit grant,
loan management and policy on making allowance for losses; or
(e) Loans being recovered under inspection conclusions.
20%
4
Doubtful
loans
time and being overdue less than 90 days according to the first
time; or
(d) Loans specified in point (d) of loan Group 3 being overdue between
30 days and 60 days after the decisions of recovery have been
issued; or
(e) Loans being recovered under inspection conclusions but being
overdue up to 60 days according to recovery term.
50%
Special
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Annual Report 2014
Separate Financial
5
Group
Overdue status
Allowance
rates
Loss
loans
(a) Loans being overdue more than 360 days; or
time and being overdue more than 90 days according to the first
time and being overdue according to the second restructured terms
of repayments; or
(d) Loans having been restructured terms of repayments for the third
time or more, regardless whether the loans are overdue or not; or
(e) Loans specified in point (d) of loan Group 3 being overdue more than
60 days after the decisions of recovery have been issued; or
(f) Loans being recovered under inspection conclusions but being
overdue for more than 60 days according to recovery term; or
(g) Loans to credit institutions being announced under special control
status by the SBV, or to foreign bank branches of which capital and
assets are blockaded.
100%
Loans to other credit institutions are stated at the amount of principal outstanding less allowance
for losses on loans to other credit institutions.
Allowance for loss on loans to other credit institutions
Overdue status
Allowance rates
Group 1 - Overdue less than 10 days
0%
5%
20%
50%
Group 5 - Overdue more than 360 days
100%
In accordance with Decision 493, a general allowance is made at 0.75% of total balance at the end
of each quarter (for quarter 4, a general allowance is made at 0.75% of the outstanding balance of
loans to other credit institutions at the last working day of November), excluding the total balance
of loans to other credit institutions which are classified as loss loans. Such general allowance is
required to be made in full within five years from the effective date of Decision 493.
accounting policy, the Bank reversed general allowance amounted to VND19,241 million and there
was no specific allowance made for loans to other credit institutions during the year.
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(m) Allowance for losses on other assets
Except for a special case of six companies that have an individual who was either the Chairman or
a member of the Board of Directors of these companies (“the Group of six companies”) that were
subject to a modified allowance method as mentioned in Notes 10 and 16, allowance for doubtful
receivables is made based on the anticipated possible loss or the overdue status of receivables
according to Circular 228 at the following rates:
Overdue status
Allowance rates
Over 6 months to below 1 year
30%
50%
70%
From 3 years and above
100%
(n) Classification of financial instruments
Solely for the purpose of providing disclosures about the significance of financial instruments to
the Bank’s financial position and results of operations and the nature and extent of risk arising from
financial instruments, the Bank classifies its financial instruments as follows:
(i) Financial assets
A financial asset at fair value through profit or loss is a financial asset that meets either of the
• It is classified by the Bank as held for trading, A financial asset is classified as held for trading if:
- it is acquired principally for the purpose of selling it in the near term;
-there is evidence of a recent pattern of short-term profit-taking; or
-it is a derivative (except for a derivative that is financial guarantee contract or a designated and
• Upon initial recognition, it is designated by the Bank as a financial asset at fair value through profit
or loss.
Held-to-maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturity that the Bank has the positive intention and ability to hold to maturity,
other than:
• those that the Bank, upon initial recognition, designates as financial assets at fair value through
profit or loss;
• those that the Bank designates as available-for-sale; and
• those that meet the definition of loans and receivables.
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Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market, other than those:
• that the Bank intends to sell immediately or in the near term, which are classified as held for trading,
and those that the Bank, on initial recognition, designates as financial assets at fair value through
profit or loss;
• that the Bank, upon initial recognition, designates as available-for-sale; or
• for which the Bank may not recover substantially all of its initial investment, other than because of
credit deterioration, which are classified as available-for-sale.
Available-for-sale financial assets are non-derivative financial assets that are designated as
available for sale or those are not classified as:
• loans and receivables;
• held-to-maturity investments; or
• financial assets at fair value through profit or loss.
The above described classification of financial assets is solely for presentation and disclosure
Accounting policies for measurement of financial assets are disclosed in other relevant notes. As
at 31 December 2014, financial assets of the Bank included:
Derivatives and other financial assets; and
Held-for-trading securities.
Held-to-maturity securities.
Balances with the State Bank of Vietnam;
Deposits with and loans to other credit institutions;
Loans and advances to customers;
Receivables; and
Interest and fees receivable.
Available-for-sale securities; and
Other long-term investments.
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(ii) Financial liabilities
Financial liabilities at fair value through profit or loss
A financial liability at fair value through profit or loss is a financial liability that meets either of the
• It is considered by the Bank as held for trading, A financial liability is classified as held for trading if:
- it is incurred principally for the purpose of repurchasing it in the near term;
-there is evidence of a recent pattern of short-term profit-taking; or
-it is a derivative (except for a derivative that is financial guarantee contract or a designated and
• Upon initial recognition, it is designated by the Bank as a financial liability at fair value through profit
or loss.
Financial liabilities which are not classified as financial liabilities at fair value through profit or loss are
classified as financial liabilities carried at amortised cost.
The above described classification of financial liabilities is solely for presentation and disclosure
purposes and is not intended to be a description of how the financial instruments are measured,
Accounting policies for measurement of financial liabilities are disclosed in other relevant notes, As
at 31 December 2014, financial liabilities of the Bank included:
• Deposits and borrowings from other credit institutions;
• Deposits from customers;
• Funds received from the Government, international and other credit institutions;
• Valuable papers issued;
• Accrued interest and fees payable; and
• Other financial liabilities.
(o) Tangible fixed assets
(i) Cost
Tangible fixed assets are stated at cost less accumulated depreciation. The initial cost of a tangible
fixed asset comprises of its purchase price, import duties, non-refundable purchase taxes and any
directly attributable costs of bringing the asset to its working condition and location for its intended
use. Expenditure incurred after the tangible fixed assets have been put into operation, such as
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repairs and maintenance and overhaul costs, is charged to the separate statement of income in
the year in which the costs are incurred. In situations where it can be clearly demonstrated that the
expenditure has resulted in an increase in the future economic benefits expected to be obtained
from the use of tangible fixed assets beyond its originally assessed standard of performance, the
expenditure is capitalised as an additional cost of tangible fixed assets.
(ii) Depreciation
Depreciation is computed on a straight-line basis over the estimated useful lives of tangible fixed
assets. The estimated useful lives are as follows:
• buildings and structures
40 years
• office equipment
3 - 5 years
• motor vehicles
10 years
• others
5 years
(iii)Disposals
Gains and losses on disposal of tangible fixed assets are the difference between the net proceeds
other expenses in the separate statement of income.
(p)Intangible fixed assets
(i) Land use rights
Land use rights comprise those acquired in a legitimate transfer and indefinite land use rights.
Indefinite land use rights are stated at cost and without amortisation. Initial cost of a land use
right comprises its purchase price and any directly attributable costs incurred in conjunction with
securing the land use right.
(ii)Software
Cost of acquiring new software, which is not an integral part of the related hardware, is capitalised and
treated as an intangible asset. Software costs are amortised on a straight-line basis over 5 to 8 years.
(iii)Disposals
Gains and losses on disposal of intangible fixed assets are the difference between the net proceeds
other expenses in the separate statement of income.
(q) Provisions
A provision is recognised if, as a result of a past event, the Bank has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits
will be required to settle the obligation. Provisions are not recognised for future operating losses.
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Where there are a number of similar obligations, the likelihood that an outflow will be required
in settlement is determined by considering the class of obligations as a whole. A provision is
recognised even if the likelihood of an outflow with respect to any one item included in the same
class of obligations may be small.
Provisions are determined by discounting the expected future cash flows at a pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability.
(r)Resignation allowance and unemployment allowance
(i) Resignation allowance
Under the Vietnamese Labour Code, when an employee who has worked for the Bank for 12
months or more (“eligible employee”) voluntarily terminates his/her labour contract, the employer
is required to pay the eligible employee severance allowance calculated based on years of service
from starting date to 31 December 2008 and their average salary for the six-month period prior to
the termination date.
On 9 August 2013, the Ministry of Finance issued official letter No. 10441/BTC-TCDN guiding the
Bank in making the provision for severance allowance. According to this official letter, the Ministry
of Finance does not allow the Bank to make the provision for severance allowance to employees.
Accordingly, the Bank reversed the outstanding balance of the provision for severance allowance
as at 31 December 2012 amounted to VND24,000 million to other income for the year ended
31 December 2013 and will no longer make provision for severance allowance. This change in
accounting policy has been applied prospectively from 2013.
(ii) Unemployment allowance
Under the Vietnamese Labour Code, when an employee who has worked for the Bank for 12 months
or more (“the eligible employees”) lost his/her job due to the Bank’s change of organisational
structure or technologies, the Bank is required to pay the eligible employee resignation allowance
equals to one month of salary for each year that the employee has worked for the Bank up to 31
December 2008, with the minimum amount equals to two months of salary. Resignation allowance
paid to employees is recognised in the separate statement of income when actually paid.
(s)Taxation
Income tax on the statement of income for the year comprises current and deferred tax. Income
tax is recognised in the separate statement of income except for the extent that it relates to items
recognised directly to equity, in which case it is recognised in equity.
Current tax is the tax payable on the taxable income for the year, using tax rates enacted at the
reporting date, and any adjustment to tax payable in respect of previous years.
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Deferred tax is provided using the balance sheet method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and
the amounts used for taxation purposes. The amount of deferred tax provided is based on the
expected manner of realisation or settlement of the carrying amount of assets and liabilities using
tax rates enacted or substantively enacted at the reporting date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will
be available against which the asset can be utilised. Deferred tax assets are reduced to the extent
that it is no longer probable that the related tax benefit will be realised.
(t)Capital
(i) Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of
ordinary shares are recognised as a deduction from equity.
(ii) Share premium
On receipt of capital from shareholders, the difference between the issue price and the par value of
the shares is credited/debited to the share premium account in equity.
(iii) Treasury shares
When the Bank repurchases its ordinary shares (“treasury shares”), the amount of the consideration
paid, which includes directly attributable costs, is recognised as a deduction from equity.
When treasury shares are sold or reissued subsequently, the amount received is recognised as an
increase in equity, and the resulting surplus or deficit on the transactions is transferred to/from
capital surplus.
(u)Reserves
According to Decree No. 57/2012/ND-CP dated 20 July 2012 issued by the Government, the Bank
is required to make the following allocations before distribution of profits:
Annual allocation
Maximum balance
Reserve to supplement
charter capital
100% Charter
capital
Financial reserve
25% Charter
capital
The purpose of the financial reserve is to offset residual asset losses and damage occurring
in the course of business after such losses have been offset with compensation paid by the
organisations, individuals who caused them, indemnity paid by insurers and with the allowance set
up and accounted for in expenses, and shall be used for other purposes in accordance with the law.
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The reserves are used for specific purposes and are appropriated from profit after tax of the Bank
according to the proportion prescribed below:
• Reserve to supplement charter capital;
• Financial reserve;
• Investment and development funds, bonus and welfare funds and other reserves: appropriated
according to the resolution of the Annual General Meeting of Shareholders. The appropriation
rates of these reserves are determined by the Annual General Meeting of Shareholders. in
accordance with legal regulations.
The remaining profit after deducting the appropriation of the above reserves and distribution of
dividends to the shareholders is recorded as retained profit of the Bank.
(v) Related parties
Related parties include enterprises and individuals that directly or indirectly through one or more
intermediaries, control, or are controlled by, or are under common control with the Bank. Associates
and individuals owning, directly or indirectly, an interest in the voting power of the Bank that gives
them significant influence over the Bank, key management personnel, including members of Board
of Directors, members of Board of Management, members of Board of Supervisors, Chief of Financial
Officer, Chief Accountant and close members of the family of these individuals and companies
which these individuals directly or indirectly hold significant voting right or have significant influence
over also constitute related parties.
In considering each possible related party relationship, the Bank pays attention to the substance of
the relationship, and not merely the legal form.
(w) Fiduciary activities The Bank acts as trustee and in other fiduciary capacities that result in the holding or placing of
assets, loans on behalf of individuals, corporates and other credit institutions.
The value of investment trusts and trust funds received are recognised when the trust contracts
have been signed and trust funds have been realised. Rights and obligations of the truster and
trustee relating to profit and profit sharing, trust fee, other rights and obligations are in compliance
with the terms of the contracts.
Based on the terms of the contracts, fiduciary activities of the Bank comprise:
Fiduciary activities at no risk
The Bank acts as trustee and in other fiduciary capacities that result in holding assets on behalf of
customers, entrusted investments and loans to customers. These assets are excluded from these
separate financial statements as they are not assets of the Bank. The Bank recognised entrusted
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fund as off balance sheet items in accordance with Circular No. 30/2014/TT-NHNN issued by the
SBV on 6 November 2014.
Fiduciary activities at risk
The Bank acts as trustee receiving the funds from the Government, international and other credit
institutions to make loans to customers. The Bank recognises loans to customers financed by
these funds as its loans and advances to customers. The accounting policies of these loans and
advances to customers are in accordance with the regulations issued by the SBV (Note 4(e)).
(x)Dividend distribution
Dividend distribution to the Bank’s shareholders is recognised as a liability in the separate financial
statements when the dividends are approved at the Annual General Meeting of shareholders.
(y)Segment reporting
A segment is a distinguishable component of the Bank that is engaged either in providing related
products or services (business segment), or in providing products or services within a particular
economic environment (geographical segment), which is subject to risks and rewards that are
different from those of other segments. The Bank primary format for segment reporting is based
on geographical segments.
(z)Nil balance
Items or balances required by Decision No. 16/2007/QD-NHNN dated 18 April 2007 issued by the
Governor of the SBV on promulgation of financial statements reporting for credit institutions that
are not shown in these separate financial statements indicate nil balances.
5. Cash on hand, gold and gemstones
31/12/2014
VND million
31/12/2013
VND million
1,860,325
1,281,676
544,388
653,876
Valuable papers
40,792
64,671
Gold
50,761
43,190
2,496,266
2,043,413
Cash in VND
Cash in foreign currencies
6. Balances with the State Bank of Viet Nam
These consist of compulsory reserve for liquidity and current deposit at the SBV,
Under the SBV’s regulations relating to the compulsory reserve, banks are permitted to maintain
a floating balance for compulsory reserve requirement (“CRR”).The monthly average balance of
the reserve must not be less than relevant CRR rates multiplied by the preceding month’s average
balances of deposits in scope as follows:
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Deposits in scope
CRR rates
31/12/2014
31/12/2013
Deposits in foreign currencies with term of less than 12 months
8%
8%
Deposits in foreign currencies with term of 12 months and above
6%
6%
Deposits in VND with term of less than 12 months
3%
3%
Deposits in VND with term of 12 months and above
1%
1%
1%
1%
31/12/2014
31/12/2013
VND million
VND million
Current deposit in VND
1,997,941
2,160,753
Current deposit in USD
1,359,789
904,569
3,357,730
3,065,322
Preceding month’s average balances of:
Deposits from customers:
Deposits from foreign credit institutions:
Deposits in foreign currencies
31/12/2014
31/12/2013
• Within compulsory reserve requirement
1.20%
1.20%
• Exceeding compulsory reserve requirement
0.00%
0.00%
• Within compulsory reserve requirement
0.00%
0.00%
• Exceeding compulsory reserve requirement
0.05%
0.05%
Deposits in VND
Deposits in USD
7. Deposits with and loans to other credit institutions
31 December 2014
Denominated
in VND
Denominated
in foreign
currencies
Total
VND million
VND million
VND million
40,543
283,114
323,657
-
1,285,541
1,285,541
2,130,908
81,340
2,212,248
2,171,451
1,649,995
3,821,446
1,731,200
26,107
1,757,307
3,902,651
1,676,102
5,578,753
(703,953)
-
(703,953)
3,198,698
1,676,102
4,874,800
Allowance for losses on deposits with other credit
institutions (iii)
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31 December 2013
Denominated in
VND
Denominated
in foreign
currencies
Total
VND million
VND million
VND million
43,765
505,007
548,772
-
1,454,245
1,454,245
3,731,408
137,765
3,869,173
3,775,173
2,097,017
5,872,190
2,149,043
631
2,149,674
5,924,216
2,097,648
8,021,864
(395,149)
-
(395,149)
5,529,067
2,097,648
7,626,715
Allowance for losses on deposits with and loans to
other credit institutions (iii)
(i) Included in term deposits with domestic credit institutions as at 31 December 2014 and 2013 were:
• VND718,908 million (31/12/2013: VND718,908 million) of overdue term deposits which had been
entrusted by the Bank to its employees to deposit at a local commercial joint stock bank (“Bank
A”). The Bank’s employee trustees initiated court proceedings against Bank A for repayment of
the principal of and interest on these deposits. In 2013, the Bank had planned to make allowance
for the deposit balance and decided to reverse the associated interest receivable over three
years from 2013 to 2015. This plan was prepared by the Bank as required in “Restructuring credit
organisation system in the 2011 – 2015 period” project to supplement Decision No. 254/QD-TTg
dated 1 March 2012 issued by the Prime Minister and Official letter No. 181/NHNN-TTGSNH.m
dated 4 April 2013 issued by the SBV. This plan was approved by the SBV in Official letter No. 8879/
NHNN-TTGSNH dated 27 November 2013 and Official Letter No. 1089/NHNN-TTGSNH dated
25 February 2014.
According to the decision of the appellate court, the Ho Chi Minh City People’s Court ruled that
a former employee of Bank A is obliged to refund the amount of VND694,830 million to the
Bank and Bank A is obliged to refund the amount of VND24,078 million to the Bank. It is unlikely
that this individual is able to refund the amount of VND694,830 million to the Bank. Accordingly,
the Bank made allowance for full amount considered irrecoverable and reversed all associated
interest receivables. The total allowance made as at 31 December 2014 was VND694,830 million
(31/12/2013: VND375,908 million). Total associated interest receivable was VND36,523 million,
VND30,000 million of which was reversed in 2014 (2013: VND6,523 million) (Note 16 (iii)). The
additional allowance and the amount of interest reversed in 2014 were approved by the SBV in
Official letter No. 1144/NHNN-TTGSNH dated 27 February 2015.
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• VND772,000 million (31/12/2013: VND772,000 million) of term deposits with a local commercial
joint stock bank (“Bank B”) where the deposit term has been extended. On 31 March 2014, the
Bank signed an agreement with Bank B to extend the payment terms of these deposits for a
further 24 months and the new maturity date was agreed to be 4 September 2016. In addition,
the Bank is also in the process of negotiating with Bank B to collect the outstanding term deposits
including through the possible acquisition of assets, loans and bonds held by Bank B. As at 31
December 2014, management believes that the Bank will recover the extended term deposits
and the associated interest receivable (refer to Note 16(iii) for associated interest receivable of
VND99,230 million (31/12/2013: VND65,399 million)) and therefore no allowance has been made
against the outstanding balances.
•VND400,000 million (31/12/2013: VND950,000 million) term deposit with a local commercial
joint stock bank (“Bank C”) of which the associated interest receivable has been overdue. This
term deposit was classified as Group 2 – Special mentioned loans based on number of overdue
days of the interest receivable. In 2014, the Bank has made allowance for losses on deposit with
Bank C amounted to VND9,123 million (2013: nil). As at 31 January 2015, the SBV announced a
mandatory acquisition of all stakes of Bank C at a price of 0 VND per share. In addition, the Bank is in
the process of negotiating with Bank C about the repayment of these deposits including through
the possible acquisition of collaterals against these term deposits or/and the possible acquisition
of debts held by Bank C.
(ii) Loans to domestic credit institutions as at 31 December 2014 and 2013:
• As at 31 December 2013, the Bank had a loan to a local commercial joint stock bank (“Bank D”)
amounted to VND1,193,000 million and the associated interest receivable was VND477,600
million. The loan and the associated interest receivable were due on 28 July 2014. On 15 July 2014,
the Bank decided to waive VND368,132 million of the total accrued interest receivable at the
maturity date of VND519,809 million. The principal amount of this loan and its remaining accrued
interest receivable of VND151,677 million were fully repaid by Bank D on 28 July 2014 (Note 16(iii)).
• As at 31 December 2013, the Bank had term deposits with a local commercial joint stock
bank (“Bank E”) amounted to VND600,000 million. These deposits (which became a loan (see
below)) and the associated interest receivables as at 31 December 2014 of VND111,667 million
(31/12/2013: VND81,250 million) were secured by bonds with a par value of VND600,000 million
issued by a company within the Group of six companies to Bank E.
On 12 August 2013, the Bank signed an agreement with Bank E to convert the term deposits into
a loan of VND600,000 million when the deposits matured on 10 March 2014. Following this, the
Bank agreed to extend the maturity date of the loan and its associated interest receivable to 9
March 2015.
As at 31 December 2014, management believes that the Bank will be able to fully recover the loan
and its associated interest receivable (Note16(iii)) therefore no allowance has been made against
the outstanding balances.
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Annual Report 2014
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(iii) Allowance for losses on deposits with and loans to other credit institutions comprises:
31/12/2014
31/12/2013
VND million
VND million
General allowance
-
19,241
Specific allowance
703,953
375,908
703,953
395,149
Movements in the general allowance for losses on deposits with and loans to other credit institutions
Opening balance
Closing balance
2014
2013
VND million
VND million
19,241
15,534
-
3,707
(19,241)
-
-
19,241
Movements in the specific allowance for losses on deposits with and loans to other credit institutions
2014
2013
VND million
VND million
Opening balance
375,908
-
328,045
375,908
Closing balance
703,953
375,908
The specific allowance for losses on deposits with and loans to other credit institutions as at 31
December 2014 comprised VND694,830 million and VND9,123 million of specific allowance for
losses on term deposits with Bank A and Bank C, respectively as disclosed above.
31/12/2014
31/12/2013
Demand deposits with domestic credit institutions in VND
0.10% - 0.50%
0.10% - 1.50%
Demand deposits with domestic credit institutions
0.00% - 0.10%
0.00% - 0.05%
0.00% - 0.22%
0.05% - 0.20%
Term deposits with domestic credit institutions in VND
0.00% - 6.90%
5.00% - 8.60%
Term deposits with domestic credit institutions
2.25% - 2.70%
2.90% - 3.80%
Loans to domestic credit institutions in VND
4.60% - 9.50%
6.28% - 8.50%
Loans to domestic credit institutions
2.25% - 2.70%
3.20%
Demand deposits with foreign credit institutions
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8. Held-for-trading securities
31/12/2014
31/12/2013
VND million
VND million
1,015,684
555,909
(136)
-
1,015,548
555,909
Debt securities
Government bonds (i)
Allowance for diminution in the value of held-fortrading securities (ii)
(i) Held-for-trading securities are categorised into listed and unlisted as follows:
31/12/2014
31/12/2013
VND million
VND million
1,015,684
555,909
Debt securities
Listed
(ii) Movements in the allowance for diminution in the value of held-for-trading securities during
2014
2013
VND million
VND million
-
-
Allowance made during the year (Note 30)
136
-
Closing balance
136
-
Opening balance
9. Derivatives and other financial assets
31 December 2014
foreign exchange rate
at the contract date)
VND million
(at foreign exchange rate
as at 31 December 2014)
Assets
Liabilities
VND million
VND million
769,174
4,246
-
1,838,997
10,157
-
756,310
-
5,586
424,920
-
1,360
583,440
6,836
-
437,008
6,996
-
48,545
-
-
Other derivatives
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Annual Report 2014
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31 December 2013
foreign exchange rate
at the contract date)
(at foreign exchange rate
as at 31 December 2013)
Assets
Liabilities
VND million
VND million
VND million
450,959
-
4,080
2,049,180
4,230
-
85,383
125
-
102,922
-
4,428
168,288
-
6,692
86,094
2,669
-
97,091
-
-
Other derivatives
•Interest rate swap contracts
(*) Total carrying value of assets/liabilities from options purchased and written represented the net
income/(expenses) of outstanding options and was recognised in Other assets/liabilities.
10. Loans and advances to customers
Loan portfolio by type of loan was as follows:
Loans to domestic economic entities and individuals
Discount bills and valuable papers
Loans funded by the Government, international and
Payments on behalf of customers
www.acb.com.vn
31/12/2014
31/12/2013
VND million
VND million
114,941,699
105,912,742
329,088
217,358
82,558
48,537
398
300
115,353,743
106,178,937
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Separate Financial
Trading
31/12/2014
31/12/2013
VND million
VND million
27,947,827
26,877,644
Agriculture and forestry
903,138
988,335
20,787,072
20,413,287
Construction
4,233,201
3,770,152
Individual and community services
1,209,398
999,326
Warehousing, transportation and communication
2,692,084
3,046,330
Manufacturing and processing
Training and education
146,458
116,841
Real estate
2,228,868
2,181,965
Hotels and restaurants
1,934,505
1,707,964
241,367
100
53,029,825
46,076,993
115,353,743
106,178,937
Financial services
Others
31/12/2014
31/12/2013
VND million
VND million
Short-term
58,568,473
56,837,993
Medium-term
18,544,617
16,685,473
Long-term
38,240,653
32,655,471
115,353,743
106,178,937
31/12/2014
31/12/2013
VND million
VND million
105,310,025
95,181,569
Loan portfolio by currency was as follows:
Denominated in VND
Denominated in foreign currencies and gold
10,043,718
10,997,368
115,353,743
106,178,937
Loan portfolio by type of borrower and type of business was as follows:
31/12/2014
31/12/2013
VND million
VND million
1,884,759
2,625,950
58,381,065
57,043,792
Joint-venture companies
1,199,204
536,554
100% foreign owned companies
1,446,410
389,598
46,139
35,911
52,396,166
45,547,132
115,353,743
106,178,937
State owned enterprises
Joint stock companies, limited liability companies,
private companies
Co-operatives
Individuals and others
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Annual Report 2014
Separate Financial
31/12/2014
31/12/2013
• Short-term
0.07% - 23.00%
0.90% - 22.00%
• Medium-term
0.63% - 24.00%
0.00% - 23.20%
• Long-term
0.00% - 26.25%
0.72% - 22.48%
2.50% - 11.00%
3.00% - 13.30%
• Medium-term
2.25% - 8.85%
2.74% - 11.70%
• Long-term
1.58% - 8.50%
1.62% - 9.80%
2.40% - 5.01%
-
7.50%
6.50% - 8.80%
4.00% - 8.50%
4.00% - 8.50%
31/12/2014
31/12/2013
VND million
VND million
109,851,108
100,007,601
2,993,934
2,967,018
Group 3 - Sub-standard loans (**)
293,035
656,978
444,308
463,358
1,771,358
2,083,982
115,353,743
106,178,937
Loans in VND
Loans in foreign currencies
• Short-term
Loans in gold
• Short-term
• Medium-term
• Long-term
Loan portfolio by loan group was as follows:
Group 1 - Current loans (*)
Group 2 - Special mentioned loans (**)
(*) Included in Group 1 – Current loans as at 31 December 2014 was VND4,116,527 million of
loans and advances to customers which was pledged with another bank as security for the
Bank’s borrowings amounted to VND1,062,300 million (Note 18).
(**) Included in Group 3 – Sub-standard loans and in Group 2 – Special mentioned loans as at 31
December 2014 and 2013 were:
• VND8,966 million of loans to a state owned corporation (“the Corporation”) (31/12/2013:
VND464,239 million) where the repayment terms have been extended. In 2014, the Bank
sold part of the loan, amounted to VND458,999 million to the VAMC.
In August 2013, the SBV informed the Bank of the results of their inspection of the
Bank’s operation in 2012. According to the SBV’s inspection results, the loans to the
Corporation were classified in Group 3 – Sub-standard loans and allowances for the loan
balances were made in accordance with Decision 493 and Decision 18 (from 1 June 2014,
superseded by Circular 02 and Circular 09). A specific allowance rate for the loans was 20%
to be established over a three year period from 2013 to 2015 with equal amounts being
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221
Separate Financial
provided in each of the three years. The bond balance (Note 12) was classified as Group
3 – Sub-standard loans to be consistent with the categorisation of the loans made to the
Corporation. A specific allowance of 20% of the bond balance was to be established over
a three year period from 2013 to 2015 with equal amounts being provided in each of the
three years. Bond interest receivable is being reversed evenly over three years from 2013 to
2015 (Note 16(iii)). The plan for the allowance and the reversal of bond interest receivable
was made by the Bank as required in the “Restructuring credit organisation system in the
2011 – 2015 period” project to supplement Decision No. 254/QD-TTg dated 1 March 2012
issued by the Prime Minister and Official letter No. 181/NHNN-TTGSNH.m dated 4 April
2013 issued by the SBV. This plan was approved by the SBV as mentioned in Official letter
No. 8879/NHNN-TTGSNH dated 27 November 2013.
On 24 September 2014, the Governor of the SBV approved for the Bank to exchange
bonds issued by the Corporation amounted to VND500,000 million for shares issued by the
Corporation’s related companies in Official Letter No. 6982/NHNN-TTGSNH. In 2014, the
Bank has exchanged VND56,875 million of the bonds for shares issued by two of the nine
companies approved by the SBV. These exchanged equity investments were classified as
available-for-sale securities (Note 12).
During 2014, the Bank has made allowance for losses on bonds issued by the Corporation
and fully reversed the associated interest receivable at 31 December 2013 which were
scheduled to be reversed in 2014 and 2015. The additional allowance and the amount of
As at 31 December 2014 and 2013, the outstanding balances and associated allowances
were as follows:
31/12/2014
Note
customers
Held-to-maturity
securities - bonds
12
Outstanding
balances
VND million
Maturity
General
allowance
VND million
Specific
allowance
VND million
8,966
2016
67
-
443,125
8/2013
3,323
67,000
3,390
67,000
452,091
31/12/2013
Note
Outstanding
balances
VND million
Maturity
General
allowance
VND million
Specific
allowance
VND million
464,239
2014, 2018
3,482
18,163
12
500,000
8/2013
-
34,000
16(iii)
94,000
8/2013
-
-
3,482
52,163
customers
Held-to-maturity
securities - bonds
Interest receivable from
bonds (i)
1,058,239
222
Annual Report 2014
Separate Financial
(i) Movements in interest receivable from bonds during the year were as follows:
Opening balance
2014
2013
VND million
VND million
94,000
87,500
-
53,750
Reversal during the year
(94,000)
(47,250)
-
94,000
Closing balance
• VND2,237,284 million (31/12/2013: VND2,237,284 million) loans to the Group of six
companies,
In addition to the above balances of loans, the Bank has balances of held-to-maturity
investments and receivables with these companies. As at 31 December 2014 and 2013,
details of the balances, maturity dates and the allowances were as follows:
31/12/2014
Note
customers
Outstanding
balances
VND million
Maturity
General
allowance
VND million
Specific
allowance
VND million
2,237,284
2015, 2018
16,780
67,968
Held-to-maturity
securities - bonds
12
2,429,349
2018, 2020
18,220
79,836
Other receivables
16(ii)
1,179,485
2015
-
353,846
35,000
501,650
5,846,118
31/12/2013
Note
customers
Outstanding
balances
VND million
Maturity
General
allowance
VND million
Specific
allowance
VND million
2,237,284
2015, 2018
24,280
67,297
Held-to-maturity
securities - bonds
12
2,429,349
2018, 2020
-
48,903
Other receivables
16(ii)
1,179,485
2015
-
117,846
Interest receivables
16(iii)
192,000
2015, 2018
6,038,118
-
-
24,280
234,046
During 2012 and at the beginning of 2013, after the Group of six companies elected new members
of the Board of Management and legal representatives and their operations became more stable,
the Bank signed new arrangements with the Group of six companies which provided that:
• All financial transactions, payments and receipts of these companies have to be transacted
through their bank accounts at the Bank;
• The Bank has the right to require these companies to sell or transfer collateral assets when their
selling prices are higher than their mortgage value; and
• All proceeds received from the companies’ investment portfolios, including investments not
pledged at the Bank, will be used to settle their obligations to the Bank.
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223
Separate Financial
Details of collateral assets and other guarantees which are held by the Bank against the balances
with the Group of six companies and other sources of repayment were as follows:
31/12/2014
31/12/2013
Estimated value
Estimated value
VND million
VND million
Collateral assets and other guarantees
Shares of other credit institutions
3,581,303
3,216,096
Shares of unlisted corporates - joint stock companies
650,281
1,004,648
Capital contributions in limited liabilities companies
446,478
546,791
Term deposits at the Bank
176,509
322,126
Receivables
113,525
100,000
Guarantee letters issued by other bank
300,000
300,000
5,268,096
5,489,661
212,213
491,664
5,480,309
5,981,325
Other sources of repayment
Deposits at the Bank (ii)
(ii) Included in the deposits were VND30,000 million deposits from a third party to acquire
collateral assets of the Group of six companies. Proceeds from sales of these collaterals
will be used to settle these companies’ obligations to the Bank.
The deposits can be used to settle the Group of six companies’ obligations to the Bank at any time.
Key assumptions used in evaluating the Group of six companies’ collateral assets and other
sources of repayment were as follows:
31/12/2014
31/12/2013
Estimated value
Estimated value
VND million
VND million
2,139,733
-
-
1,774,526
Details of the basis used in evaluating collateral assets
• Listed shares
+ Offer price
+ Latest transaction prices
• Unlisted shares and capital contributions in limited liability
companies
+ Par value
14,354
482,170
+ Net book value
626,107
330,831
+ Market value of land owned by the companies or over
which the companies have rights for property development
107,124
137,827
+ Valuation model
272,045
385,473
4,538
215,138
+ Cost
+ Offer price
1,514,161
1,441,570
• Term deposits at the Bank - carrying amount
176,509
322,126
• Receivables - carrying amount
113,525
100,000
• Guarantee letters issued by other bank - guaranteed amount
300,000
300,000
5,268,096
5,489,661
212,213
491,664
5,480,309
5,981,325
Details of the basis used in evaluating other sources of repayment
• Deposits at the Bank - carrying amount
224
Annual Report 2014
Separate Financial
In August 2013, the SBV informed the Bank of the results of their inspection of the Bank’s operations in
2012. Following the SBV’s inspection, the Bank submitted a plan to the SBV regarding the allowances to
be made and interest reversals in relation to the balances with the Group of six companies as required
in the “Restructuring credit organisation system in the 2011 – 2015 period” project to supplement
Decision No. 254/QD-TTg dated 1 March 2012 issued by the Prime Minister and Official letter No.
181/NHNN-TTGSNH.m dated 4 April 2013 issued by the SBV. This plan was approved by the SBV as
mentioned in Official letter No. 8879/NHNN-TTGSNH dated 27 November 2013. The results were:
• Loans to the Group of six companies amounted to VND2,237,284 million as at 31 December
2014 (31/12/2013: VND2,237,284 million) were classified as Group 2 – Special mentioned
loans. The allowances for losses on the loans were made in accordance with Decision 493 and
Decision 18 (from 1 June 2014, superseded by Circular 02 and Circular 09).
• Bonds issued by the Group of six companies of VND2,429,349 million as at 31 December 2014
(31/12/2013: VND2,429,349 million) (Note 12) were classified as Group 2 – Special mentioned
loans to be consistent with the categorisation of the loans made to the Group of six companies.
The allowances for losses on the bonds were made in accordance with Decision 493 and
Decision 18 (from 1 June 2014, superseded by Circular 02 and Circular 09).
• Receivables from three companies within the Group of six companies of VND1,179,485 million as
at 31 December 2014 (31/12/2013: VND1,179,485 million) (Note 16(ii)) was to be made allowance
at 30% of the balance of the receivables. This allowance was to be established over a three year
period from 2013 to 2015 with equal amounts being provided in each of the three years.
• Interest receivable on bonds issued by three companies within the Group of six companies was
to be reversed evenly over three years from 2013 to 2015 (Note 16(iii)).
In 2014, the Bank has made full allowance for receivables and fully reversed the associated bond
interest receivable for 2014 and 2015. The additional allowance and the amount of interest reversed
were approved by the SBV in Official letter No. 1144/NHNN-TTGSNH dated 27 February 2015.
11. Allowance for losses on loans and advances to customers
Allowance for losses on loans and advances to customers consists of:
31/12/2014
31/12/2013
VND million
VND million
General allowance (i)
839,289
783,219
Specific allowance (ii)
715,496
730,593
1,554,785
1,513,812
(i) Movements in the general allowance for losses on loans and advances to customers
2014
2013
Opening balance
Closing balance
www.acb.com.vn
VND million
VND million
783,219
745,554
56,070
37,665
839,289
783,219
225
Separate Financial
(ii) Movements in the specific allowance for losses on loans and advances to customers during
Opening balance
Allowance utilised during the year (*)
Closing balance
2014
2013
VND million
VND million
730,593
733,342
440,230
417,916
(455,327)
(420,665)
715,496
730,593
(*) Included in the allowance utilised during the year was VND220,682 million of allowance related
to loans prior to being sold to the VAMC (2013: VND104,816 million) (refer to Note 12 related
to special bonds issued by VAMC for these loans). Up to 31 December 2014, the Bank sold
VND1,457,053 million of loans to the VAMC, including VND1,036,082 million of loans sold in
2014 (2013: VND420,971 million).
12. Investment securities
31/12/2014
31/12/2013
VND million
VND million
1,796,186
2,070,026
20,789,013
4,853,069
533,140
-
300,000
-
Debt securities
• Treasury bills
Equity securities
4,222
4,247
260,700
304,659
23,683,261
7,232,001
(111,223)
(168,687)
23,572,038
7,063,314
Government bonds
4,894,442
16,519,114
Issued by other domestic credit institutions
5,822,304
3,500,000
Issued by domestic economic entities (ii)
4,538,833
5,965,008
Special bonds issued by VAMC
1,130,739
318,295
16,386,318
26,302,417
(281,504)
(82,903)
16,104,814
26,219,514
39,676,852
33,282,828
Total available-for-sale securities
Allowance for diminution in the value of available-for-sale securities (i)
Debt securities
Total held-to-maturity securities
Allowance for losses on held-to-maturity securities (iii)
226
Annual Report 2014
Separate Financial
(i) Movements in the allowance for diminution in the value of available-for-sale securities
2014
2013
VND million
VND million
Opening balance
168,687
248,106
(57,464)
(79,419)
Closing balance
111,223
168,687
(ii) Included in debt securities issued by domestic economic entities as at 31 December 2014
and 2013 were:
• VND2,429,349 million (31/12/2013: VND2,429,349 million) of bonds issued by three
companies within the Group of six companies (Note 10). These bonds will mature in March
2018 and November 2020 and carry interest at 5.29% per annum.
• VND443,125 million (31/12/2013: VND500,000 million) of bonds issued by the Corporation
(Note 10). These bonds matured on 5 August 2013 and carried interest at 10.75% per
annum. On 13 June 2013, the Corporation submitted Official letter No. 1609/HHVN-TC to
the SBV requesting for the SBV’s approval for credit institutions which held bonds issued by
the Corporation to extend the bond payment terms for one more year (new maturity date is
5 August 2014) and not to change the loan group during this period. In 2014, the Bank has
exchanged VND56,875 million of bonds issued by the Corporation for shares issued by two of
the nine companies that were approved by the SBV in Official letter No. 6982/NHNN-TTGSNH
(Note 10). These shares were classified as available-for-sale securities. For the remaining
bonds of VND443,125 million, the Bank is in the process of negotiating with the Corporation to
collect bonds and associated interest receivables including through the possible acquisition of
the assets held by the Corporation.
The allowance for losses on balances with the Corporation and the Group of six companies and
the reversal of associated interest receivables are explained in Note 10.
(iii) Movements in the allowance for losses on held-to-maturity securities during the year were
as follows:
2014
2013
VND million
VND million
82,903
60,367
198,601
22,536
Closing balance
281,504
82,903
Opening balance
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227
Separate Financial
Included in the allowance for losses on held-to-maturity securities as at 31 December 2014 and
2013 were:
• VND100,626 million (31/12/2013: nil) of specific allowance for special bonds issued by the
VAMC in exchange for the non-performing loans of the Bank.
• VND79,836 million (31/12/2013: VND48,903 million) of specific allowance and VND18,220 million
(31/12/2013: nil) of general allowance made for bonds issued by the Group of six companies (Note 10).
• VND67,000 million (31/12/2013: VND34,000 million) of specific allowance and VND3,323 million
(31/12/2013: nil) of general allowance made for bonds issued by the Corporation (Note 10).
13. Long-term investments
31/12/2014
31/12/2013
VND million
VND million
2,040,000
2,040,000
1,000
1,000
Investments in subsidiaries (i)
Investments in a joint venture (ii)
Investments in an associate (ii)
Other long-term investments (iii)
Allowance for diminution in the value of long-term investments (iv)
200
200
797,936
858,990
2,839,136
2,900,190
(48,884)
(65,186)
2,790,252
2,835,004
(i) Investment in wholly owned subsidiaries:
31/12/2014
31/12/2013
VND million
VND million
1,500,000
1,500,000
Asia Commercial Bank Asset Management Company (“ACBA”)
340,000
340,000
Asia Commercial Bank Leasing Company Limited (“ACBL”)
200,000
200,000
2,040,000
2,040,000
ACB Securities Company (“ACBS”)
(ii) The Bank’s investments in a joint venture and an associate were as follows:
31/12/2014
Name
Nature of
business
ACB-SJC Saigon Jewelry
Joint Stock Company
(“ACB-SJC”)
Asia Commercial Bank
Security Services Joint
Stock Company (“ACBD”)
%
equity
Cost
VND million
%
equity
Cost
VND million
Jewelry
production and
trading
10
1,000
10
1,000
Security services
10
200
10
200
1,200
228
31/12/2013
1,200
Annual Report 2014
Separate Financial
The Bank classified its investment in ACBD as an investment in an associate although the Bank
only owns 10% of the contributed capital because the Bank:
• has representatives in the Board of Directors or equivalent management level of this company;
• has the right to take part in policy making process; and
• has significant influence over the financial and operating policies.
The Bank classified its investment in ACB-SJC as an investment in a joint venture company
because the Bank signed a joint control contract with the joint venture and all strategic decisions
about finance and operations must have the consent of the Bank and the joint venturer.
(iii) Other long-term investments where the Bank has an equity interest of less than 20%:
31/12/2014
31/12/2013
VND million
VND million
150,000
150,000
Listed
400,732
400,732
Unlisted (*)
247,204
308,258
797,936
858,990
(48,884)
(65,186)
749,052
793,804
Investments in other domestic credit institutions
Unlisted
Investments in domestic economic entities
Allowance for diminution in the value of other long-term investments (iv)
(*) Movements in unlisted investments in domestic economic entities were as follows:
2014
2013
VND million
VND million
308,258
350,504
-
7,650
Disposal during the year
(61,054)
(49,896)
Closing balance
247,204
308,258
Opening balance
(iv) Movements in the allowance for diminution in the value of other long-term investments during
Opening balance
Closing balance
www.acb.com.vn
2014
2013
VND million
VND million
65,186
-
-
65,186
(16,302)
-
48,884
65,186
229
Separate Financial
14. Tangible fixed assets
2014
Buildings
and
Office
structures equipment
Motor
vehicles
VND million VND million
VND million
Others
Total
Cost
Opening balance
Additions
1,865,822
725,138
332,386
150,424
3,073,770
20,140
101,888
-
39,425
161,453
152,615
-
-
557
153,172
(7,000)
(29,364)
(14,080)
(1,278)
(51,722)
Reclassification
-
17,186
-
(28,061)
(10,875)
Closing balance
2,031,577
814,848
318,306
161,067
3,325,798
164,896
454,509
148,471
78,054
845,930
46,738
97,543
25,834
18,137
188,252
(89)
(29,083)
(9,169)
(802)
(39,143)
211,545
522,969
165,136
95,389
995,039
Opening balance
1,700,926
270,629
183,915
72,370
2,227,840
Closing balance
1,820,032
291,879
153,170
65,678
2,330,759
Buildings
and
structures
Office
equipment
Motor
vehicles
Others
Total
VND million
Disposals
Opening balance
Charge for the year
Disposals
Closing balance
Net book value
2013
Cost
Opening balance
850,862
961,252
347,577
188,078
2,347,769
1,728
48,927
-
17,834
68,489
1,013,232
11,917
7,460
43,167
1,075,776
Transfer to tools and supplies under
Circular 45 (*)
-
(345,122)
(15)
(38,375)
(383,512)
Disposals
-
(10,224)
(22,636)
(1,892)
(34,752)
Reclassification
-
58,388
-
(58,388)
-
Closing balance
1,865,822
725,138
332,386
150,424
3,073,770
139,542
612,534
139,763
76,318
968,157
25,354
112,617
26,073
27,230
191,274
-
(260,443)
(15)
(23,760)
(284,218)
Additions
Opening balance
Charge for the year
Transfer to tools and supplies under
Circular 45 (*)
Disposals
Closing balance
-
(10,199)
(17,350)
(1,734)
(29,283)
164,896
454,509
148,471
78,054
845,930
711,320
348,718
207,814
111,760
1,379,612
1,700,926
270,629
183,915
72,370
2,227,840
Net book value
Opening balance
Closing balance
230
Annual Report 2014
Separate Financial
Included in the cost of tangible fixed assets were assets costing VND320,394 million which were
fully depreciated as of 31 December 2014 (31/12/2013: VND265,111 million), but which were still
in active use.
Carrying amount of temporarily idle equipment in tangible fixed assets amounted to VND3,610
million as of 31 December 2014 (31/12/2013: VND31,782 million).
(*) The reclassification represents net book value of existing fixed assets which do not meet
one of the criteria for recognition as fixed assets as regulated in Article 3 of Circular No.
45/2013/TT-BTC issued by the Ministry of Finance dated 25 April 2013 providing guidance on
management, use and depreciation of fixed assets (“Circular 45”), i.e. costing VND30 million
or more. These assets were reclassified to Tools and supplies and amortised over three years
from the reclassification date.
15. Intangible fixed assets
2014
Land use rights
Software
Total
VND million
VND million
VND million
214,974
174,388
389,362
Cost
Opening balance
Additions
-
42,896
42,896
16,808
103,899
120,707
231,782
321,183
552,965
Opening balance
-
115,714
115,714
Charge for the year
-
18,056
18,056
Closing balance
-
133,770
133,770
Closing balance
Net book value
Opening balance
214,974
58,674
273,648
Closing balance
231,782
187,413
419,195
www.acb.com.vn
231
Separate Financial
2013
Land use rights
Software
Total
VND million
VND million
VND million
Opening balance
-
136,946
136,946
Additions
-
22,413
22,413
214,974
15,111
230,085
Cost
Closing balance
-
(82)
(82)
214,974
174,388
389,362
-
102,062
102,062
Opening balance
Charge for the year
-
13,723
13,723
-
(71)
(71)
Closing balance
-
115,714
115,714
-
34,884
34,884
214,974
58,674
273,648
Net book value
Opening balance
Closing balance
Included in the cost of intangible fixed assets were assets costing VND102,128 million which were fully
amortised as of 31 December 2014 (31/12/2013: VND87,012 million), but which were still in active use.
(*) The reclassification represents net book value of existing fixed assets which do not meet one
of the criteria for recognition as fixed assets as regulated in Article 3 of Circular 45, i.e. costing
VND30 million or more. These assets were reclassified to Tools and supplies and amortised
over three years from the reclassification date.
16. Other assets
31/12/2014
31/12/2013
VND million
VND million
621,969
704,537
4,554,935
4,356,976
7,139
6,981
468,377
443,198
Receivables
• Construction in progress (i)
• Receivables from customers (ii)
• Receivables from the SBV
• Advances and internal receivables
• Corporate income tax overpaid (Note 23)
• Dividend receivables
Accrued interests and fees receivable (iii)
Deferred income tax assets (Note 23)
-
122,409
258,608
316,316
5,911,028
5,950,417
3,240,254
3,659,715
4,891
12,105
475,152
380,889
33,115
34,543
508,267
415,432
Other assets
• Prepaid expenses
• Other assets
Allowance for losses on other assets (iv)
232
(541,847)
(305,540)
9,122,593
9,732,129
Annual Report 2014
Separate Financial
(i) Construction in progress
Opening balance
Additions
2014
2013
VND million
VND million
704,537
1,441,375
241,791
604,945
Transfer to tangible fixed assets
(153,172)
(1,075,776)
Transfer to intangible fixed assets
(120,707)
(230,085)
Transfer to other assets
(50,480)
(35,922)
Closing balance
621,969
704,537
31/12/2014
31/12/2013
VND million
VND million
612,411
583,061
9,558
121,476
621,969
704,537
Major construction in progress was as follows:
Office buildings
Others
(ii) Included in receivables from customers as at 31 December 2014 and 2013 were:
• Receivable from ACB Real Estate Joint Stock Company (“ACBR”) for a payment made to
An Tien Limited Company through ACBR to acquire Hoang Anh Gold House apartments
amounted to VND240,637 million as at 31 December 2014 (31/12/2013: VND422,195
million). In accordance with the arrangement between the Bank and ACBR, ACBR has the
obligation to sell these apartments to the Bank's employees at cost or ACBR can sell on the
open market. The proceeds will be used to clear the advance from the Bank. For apartments
sold on the open market, the Bank will support selling expenses incurred by ACBR at rates to
be agreed on an individual transaction basis.
•Receivables from three companies within the Group of six companies amounted to
VND1,179,485 million (31/12/2013: VND1,179,485 million) (Note 10) of which, VND12,628
million (31/12/2013: VND12,628 million) was interest receivable on principal balances of
VND1,166,857 million (31/12/2013: VND1,166,857 million). The allowance for loss on the
receivables as at 31 December 2014 was VND353,846 million (31/12/2013: VND117,846
million).
(iii) Included in accrued interest and fee receivable as at 31 December 2014 and 2013 were:
•VND99,230 million (31/12/2013: VND65,399 million) of interest receivable from term deposits
with Bank B where the repayment terms were extended until 4 September 2016 (Note 7(i)).
•VND111,667 million (31/12/2013: VND81,250 million) of interest receivable from loans to
Bank E (Note 7(ii)).
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233
Separate Financial
In 2014, the Bank fully reversed associated interest receivable from overdue term deposits with
Bank A amounted to VND30,000 million (Note 7(i)). Simultaneously, the Bank also reversed
the full amount of interest receivable from bonds issued by the Corporation and the Group of
six companies for 2014 and 2015 amounted to VND94,000 million and VND192,000 million
respectively (Note 10). The reversal of this interest receivable was approved by the SBV in Official
letter No. 1144/NHNN-TTGSNH dated 27 February 2015.
As at 31 December 2013, the Bank had VND477,600 million of interest receivable from a loan to
Bank D which were due on 28 July 2014. On 15 July 2014, the Bank decided to waive VND368,132
million of the total accrued interest receivable at the maturity date of VND519,809 million. The
principal amount of this loan and its remaining accrued interest receivable of VND151,677 million
were fully repaid by Bank D on 28 July 2014 (Note 7(ii)).
(iv) Movements in the allowance for losses on other assets during the year were as follows:
2014
2013
VND million
VND million
Opening balance
305,540
180,162
236,307
144,507
-
(19,129)
541,847
305,540
Closing balance
17. Borrowings from the State Bank of Vietnam
Short-term borrowings from the SBV secured by valuable papers
31/12/2014
31/12/2013
VND million
VND million
-
1,583,146
31/12/2014
31/12/2013
-
5.50%
Effective annual interest rate at the year-end was as follows:
Borrowings from the SBV in VND
234
Annual Report 2014
Separate Financial
18. Deposits and borrowings from other credit institutions
31 December 2014
Denominated
in VND
Denominated
in foreign
currencies
Total
VND million
VND million
VND million
Demand deposits from domestic credit institutions
157,133
7,590
164,723
Demand deposits from foreign credit institutions
253
-
253
Term deposits from domestic credit institutions
2,826,317
255,002
3,081,319
2,983,703
262,592
3,246,295
1,688,795
1,062,300
2,751,095
4,672,498
1,324,892
5,997,390
31 December 2013
Denominated
in VND
Denominated
in foreign
currencies
Total
VND million
VND million
VND million
42,424
74,235
116,659
Demand deposits from foreign credit institutions
252
-
252
Term deposits from domestic credit institutions
4,786,651
946,620
5,733,271
4,829,327
1,020,855
5,850,182
1,530,120
420,720
1,950,840
6,359,447
1,441,575
7,801,022
Collateral assets of borrowings were as follows:
31 December 2014
Denominated
in VND
Denominated
in foreign
currencies
Total
VND million
VND million
VND million
-
4,116,527
4,116,527
Loans and advances to customers (Note 10)
31/12/2014
31/12/2013
Demand deposits from domestic credit institutions in VND
0.00% - 0.50%
0.00% - 0.50%
0.00% - 0.50%
0.00% - 0.50%
Term deposits from domestic credit institutions in VND
3.20% - 4.70%
3.00% - 5.00%
Term deposits from domestic credit institutions in foreign currencies
0.80% - 0.90%
0.40% - 0.70%
Borrowings from domestic credit institutions in VND
3.60% - 6.48%
3.60% - 5.40%
1.13% - 1.16%
0.65% - 0.70%
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235
Separate Financial
19. Deposits from customers
Current deposits
31 December 2014
Denominated
in VND
Denominated
in foreign
currencies
Total
VND million
VND million
VND million
18,903,623
2,001,418
20,905,041
Term deposits
16,809,553
304,373
17,113,926
Saving deposits
107,202,448
8,352,092
115,554,540
Margin deposits
1,095,573
318,425
1,413,998
386,309
141,297
527,606
144,397,506
11,117,605
155,515,111
31 December 2013
Denominated
in VND
Denominated
in foreign
currencies
Total
VND million
VND million
VND million
Current deposits
16,286,948
1,685,535
17,972,483
Term deposits
11,928,089
374,259
12,302,348
Saving deposits
96,934,288
9,762,448
106,696,736
Margin deposits
870,131
302,404
1,172,535
189,428
335,597
525,025
126,208,884
12,460,243
138,669,127
Deposits from customers by type of customers and industry sectors were as follows:
State-owned companies
Joint stock, limited liabilities and sole proprietors
31/12/2014
31/12/2013
VND million
VND million
676,171
527,301
22,310,197
20,436,212
Joint ventures
1,404,392
667,674
Foreign companies
1,744,843
517,523
35,152
25,244
127,620,157
115,093,808
Cooperatives
Individuals
Others
1,724,199
1,401,365
155,515,111
138,669,127
31/12/2014
31/12/2013
0.00% - 4.32%
0.00% - 4.32%
Term deposits in VND
0.00% - 12.00%
0.00% - 12.00%
Saving deposits in VND
0.00% - 12.00%
0.00% - 12.80%
Margin deposits in VND
0.00% - 8.00%
0.00% - 10.70%
Specialised capital deposits in VND
0.00% - 1.00%
0.00% - 1.20%
Demand deposits in foreign currencies
0.00% - 0.50%
0.00% - 0.50%
Term deposits in foreign currencies
0.25% - 1.25%
0.25% - 3.69%
Demand deposits in VND
Saving deposits in foreign currencies
0.00% - 2.00%
0.00% - 4.60%
Margin deposits in foreign currencies
0.00% - 1.25%
0.00% - 1.95%
Specialised capital deposits in foreign currencies
0.00% - 0.10%
0.00% - 0.10%
236
Annual Report 2014
Separate Financial
20. Funds received from the Government, international
and other credit institutions
31/12/2014
31/12/2013
VND million
VND million
in VND (i)
158,734
210,664
in foreign currencies (i)
29,421
33,226
Funds received from Small and Medium Enterprises Development
Fund in VND
-
643
Funds received from Rural Development Fund in VND (ii)
-
118,812
188,155
363,345
(i) Funds received from Japanese Bank of International Co-operation (“JBIC”) are financed
by the Japanese Government via JBIC. Outstanding balances of funds received from JBIC
bear annual interest rates ranging from 5,16% to 5,88% (2013: from 5,88% to 7,44%) for
VND, and 1,91% (2013: 1,91%) for foreign currencies. These funds are granted to small
and medium enterprises with the maximum period of 20 years for medium and long-term
loans and 1 year for short-term loans in accordance with the Lending Agreement signed
between the SBV and the Bank.
(ii) On 25 July 2014, the SBV issued Official letter No, 5391/NHNN-TCKT which requires
financial institutions to classify funds received for rural financing project from “Fund
received from other organisation in VND” account to “Loans from other credit institution
in VND” account. The Bank has performed the reclassification accordingly.
21. Valuable papers issued
31/12/2014
31/12/2013
VND million
VND million
3,000,000
3,000,000
31/12/2014
31/12/2013
12.50%
12.50%
Bonds
www.acb.com.vn
237
Separate Financial
22. Other liabilities
31/12/2014
31/12/2013
VND million
VND million
1,737,261
1,544,418
-
14,708
237,506
148,273
• Taxes payable to the State Treasury (Note 23)
25,617
8,942
• Unearned revenue
14,435
1,924
1,052,013
850,343
1,262
-
1,330,833
1,009,482
-
57,948
3,068,094
2,626,556
31/12/2014
31/12/2013
VND million
VND million
Accrued interest and fee payables
Deferred tax liabilities (Note 23)
Payables and other liabilities
• Remittances in transit
• Other payables (i)
• Bonus and welfare fund (ii)
Provision for off-balance sheet commitments (iii)
(i) Other payables included:
85,630
75,114
Amount awaiting settlement
Cash held on behalf and awaiting settlement
290,778
361,831
Payables to employees
306,297
288,084
Advances from customers
225,000
-
Other payables
144,308
125,314
1,052,013
850,343
(ii) Movements of bonus and welfare fund for the year were as follows:
Opening balance
Transferred from equity (*) (Note 24)
Amount provided during the year (Note 24)
Amount utilised during the year
Closing balance
2014
2013
VND million
VND million
-
-
(4,020)
-
20,000
-
(14,718)
-
1,262
-
(*) Pursuant to Article 2 of Circular No, 10/2014/TT-NHNN issued by the SBV on 20 March 2014
to amend and supplement several accounts in the chart of accounts of credit institutions in
conjunction with Decision No, 479/2004/QD-NHNN dated 29 April 2004 of the Governor
of the SBV (“Circular 10”), in 2014, the Bank has transferred its bonus and welfare fund from
equity to other liabilities.
The appropriation to bonus and welfare funds are proposed by the Board of Directors of the Bank and approved in the Annual General Meeting of Shareholders.
238
Annual Report 2014
Separate Financial
(iii) Movements in the provision for off-balance sheet commitments for the year were as follows:
Opening balance
Provision made during the year
Provision reversed during the year
Closing balance
2014
2013
VND million
VND million
57,948
48,494
-
9,454
(57,948)
-
-
57,948
23.Taxes payable to State Treasury and deferred
income tax
(i) Taxes payable to State Treasury
2014
Value added tax
Other taxes
2013
Value added tax
Other taxes
Opening
balance
During the year
Incurred
Paid
Closing
balance
VND million
VND million
VND million
VND million
6,070
67,587
(66,483)
7,174
(122,409)
189,414
(52,214)
14,791
-
112
(111)
1
2,872
55,339
(54,560)
3,651
(113,467)
312,452
(173,368)
25,617
Opening
balance
Incurred
Paid
Closing
balance
VND million
VND million
VND million
VND million
4,549
56,248
(54,727)
6,070
(230,004)
177,314
(69,719)
(122,409)
During the year
1
353
(354)
-
5,752
92,850
(95,730)
2,872
(219,702)
326,765
(220,530)
(113,467)
31/12/2014
31/12/2013
VND million
VND million
4,891
12,105
-
14,708
(ii) Deferred income tax
Deferred tax assets related to deductible temporary differences (Note 16)
Deferred tax liabilities originating from taxable temporary differences
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239
Separate Financial
24. Capital and reserves
(i) Statement of changes in equity
Charter
capital
Reserve to
supplement
Treasury
charter
shares
capital
Financial
reserve
VND million
VND million
Retained
profits
Total
VND million
Other
reserves
Balance at 1
January 2013
9,376,965
-
974,573
1,365,441
21,098
647,954
12,386,031
Net profit for
the year
-
-
-
-
-
825,596
825,596
Purchase of
treasury shares
-
(259,421)
-
-
-
-
(259,421)
Appropriation
to reserves
-
-
41,280
82,559
20,000
(143,839)
-
Reversal of
reserves
-
-
(662,935)
-
-
662,935
-
Distribution of
dividends from
2012 profit
-
-
-
-
-
(642,322)
(642,322)
Utilisation of
reserves
-
-
-
-
(44,997)
-
(44,997)
Balance at 1
January 2014
9,376,965
(259,421)
352,918
1,448,000
(3,899)
1,350,324
12,264,887
Net profit for
the year
-
-
-
-
-
922,249
922,249
Purchase of
treasury shares
-
(405,703)
-
-
-
-
(405,703)
Appropriation
to reserves
-
46,112
92,226
(138,338)
-
Appropriation
to bonus and
welfare fund
(Note 22(ii))
-
-
-
-
-
(20,000)
(20,000)
Dividends paid
from 2013
profit (iii)
-
-
-
-
-
(636,847)
(636,847)
Transferred to
other liabilities
(Note 22(ii))
-
-
-
-
4,020
-
4,020
121
1,477,388
12,128,606
Balance at 31
December
2014
240
9,376,965
(665,124)
399,030
1,540,226
Annual Report 2014
Separate Financial
Other funds as at 31 December 2014 was investment and construction fund (31/12/2013:
included investment and construction fund, bonus and welfare funds),
(ii) Charter capital
Authorised share capital
31/12/2014
31/12/2013
Number of
shares
VND million
Number of
shares
VND million
937,696,506
9,376,965
937,696,506
9,376,965
937,696,506
9,376,965
937,696,506
9,376,965
(41,383,608)
(665,124)
(16,181,131)
(259,421)
896,312,898
8,963,129
921,515,375
9,215,154
Issued share capital
Ordinary shares
Treasury shares
Ordinary shares
Shares in circulation
Ordinary shares
All ordinary shares have a par value of VND10,000, Each share is entitled to one vote at meetings
of shareholders of the Bank. Shareholders are entitled to receive dividends as declared from time
to time, All ordinary shares are ranked equally with regard to the Bank’s residual assets. In respect
of shares bought back by the Bank, all rights are suspended until those shares are reissued.
Movements of the Bank’s capital during the year were as follows:
2014
2013
Number of
shares
VND million
Number of
shares
VND million
Opening balance
921,515,375
9,117,544
937,696,506
9,376,965
Treasury shares purchased during
the year
(25,202,477)
(405,703)
(16,181,131)
(259,421)
Closing balance
896,312,898
8,711,841
921,515,375
9,117,544
(iii) Dividends
The Annual General Meeting of Shareholders of the Bank on 14 April 2014 resolved to distribute
dividends amounted to VND636,847 million in cash from retained profits of 2013 (equivalent to
VND700 per share).
25. Interest and similar income
2014
2013
VND million
VND million
(as reclassified)
Interest income from loans and advances to customers and loans to
Interest income from deposits with other credit institutions
Interest income from investments – debt securities
Income from guarantees activities
Other income from credit activities
www.acb.com.vn
10,265,560
12,079,099
288,900
670,125
2,673,197
2,249,770
207,113
179,400
5,256
6,195
13,440,026
15,184,589
241
Separate Financial
26. Interest and similar expenses
2014
2013
VND million
VND million
8,420,876
10,184,100
Interest expense on borrowings
125,019
156,166
Interest expense on bonds and certificates of deposits
375,000
431,598
35,053
26,796
8,955,948
10,798,660
2014
2013
VND million
VND million
Interest expense on deposits
Other expenses from credit activities
27. Fees and commission income
as reclassified
Settlement services
609,412
551,782
Cash services
31,467
33,598
Other services
145,213
134,987
786,092
720,367
2014
2013
VND million
VND million
150,233
141,846
65,015
60,546
215,248
202,392
28. Fees and commission expenses
Settlement and cash services
Other services
29. Net gain/(loss) from trading of foreign currencies
and gold
2014
2013
VND million
VND million
168,471
218,731
34,372
49,652
170,877
151,609
(9,872)
(23)
(30,779)
(329,409)
(149,618)
(168,310)
183,451
(77,750)
Gains from trading of foreign currencies and gold
• Currency spots
• Gold trading
Losses on trading of foreign currencies and gold
• Currency spots
• Gold trading
242
Annual Report 2014
Separate Financial
30. Net gain from held-for-trading securities
2014
2013
VND million
VND million
Gains from trading of held-for-trading securities
74,534
24,207
Losses on trading of held-for-trading securities
(61,688)
(10,772)
(136)
-
12,710
13,435
during the year (Note 8)
31. Net gain from trading of investment securities
Gains from trading of investment securities
Gains from disposal of other long-term investments
2014
2013
VND million
VND million
196,194
337,787
22,927
53,976
(40,828)
(2,449)
Losses on disposal of other long-term investments
(5,757)
-
Reversal of allowance for diminution in the value of investment securities
57,464
56,883
230,000
446,197
2014
2013
VND million
VND million
3,480
20,666
380
608
77,494
51,005
81,354
72,279
(3,444)
(20,495)
(384)
(14,322)
(53,548)
(8,348)
(57,376)
(43,165)
23,978
29,114
Losses on trading of investment securities
32. Net other income
Other income
Income from other derivatives
Income from other trading activities
Other income
Other expenses
Expenses on other derivatives
Expenses on other trading activities
Other expenses
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243
Separate Financial
33. Income from investment in other entities
2014
2013
VND million
VND million
473
(306)
280,354
161,655
280,827
161,349
2014
2013
VND million
VND million
Dividend income/shared profit during the year from
Available-for-sale equity securities
34. Operating expenses
(as reclassified)
1, Tax, duties and fees
13,357
9,663
1,662,927
1,499,718
1,472,182
1,337,095
116,291
115,618
3,005
2,770
71,449
44,235
708,647
699,905
• Depreciation and amortisation expenses
206,308
204,997
• Others
502,339
494,908
4, Administration expenses
949,205
1,046,937
5, Insurance for deposits from customers
165,519
160,170
6, Allowance for diminution in the value of long-term investments
and allowance for doubtful debts (*)
236,307
209,693
3,735,962
3,626,086
2, Salaries and related expenses:
In which:
• Salaries and allowances
• Salary related contributions
• Subsidies
• Others
3, Expenses on assets
In which:
(*) Included in allowance for diminution in the value of long-term investments and allowance for
doubtful debts for the year ended 31 December 2014 was allowance for receivables from
three companies of the Group of six companies amounted to VND236,000 million (2013:
VND100,043 million) (Note 10).
244
Annual Report 2014
Separate Financial
35. Income tax
(a) Recognised in the statement of income
2014
2013
VND million
VND million
188,975
177,790
439
(476)
189,414
177,314
(7,494)
2,958
-
(355)
(7,494)
2,603
181,920
179,917
2014
2013
VND million
VND million
1,104,169
1,005,513
242,917
251,378
(61,782)
(70,662)
• Non-deductible expenses
346
32
• Under/(over) provision in prior years
439
(476)
-
(355)
181,920
179,917
Current tax expense
Current year
Under/(over) provision in prior years
Deferred tax expense
Origination of taxable temporary differences
Effect of change in tax rate applied to temporary differences
Income tax expense
(b) Reconciliation of effective tax rate
Profit before tax
Tax calculated at current tax rate
Adjust for tax effect of:
• Non-taxable income
• Different tax rate applied to temporary differences
Income tax expense
(c) Applicable tax rates
The Bank has an obligation to pay the government income tax at the rate of 22% and 25% of
taxable profit for the years ended 31 December 2014 and 2013, respectively. The income tax rate
applicable to enterprises before any incentives is 22% for 2014 and 2015, and 20% from 2016.
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245
Separate Financial
36. Cash and cash equivalents
31/12/2014
31/12/2013
VND million
VND million
2,496,266
2,043,413
3,357,730
3,065,322
Deposits with other credit institutions with original terms to maturity
of three months or less
1,839,197
2,583,018
Treasury bills
1,796,186
2,070,026
9,489,379
9,761,779
2014
2013
VND million
VND million
8,939
8,791
1,472,182
1,337,095
13,507
11,889
1,485,689
1,348,984
37. Employees remuneration
Total number of employees
Employees remuneration
1, Total salary and bonus
2, Other remuneration
3, Total income (1+2)
Average annual salary
165
152
Average annual remuneration
166
153
38. Contingent liabilities and commitments
31 December 2014
Denominated
in VND
Denominated
in foreign
currencies
Gross amount (*)
VND million
VND million
VND million
-
2,541,974
2,541,974
-
3,068,850
3,068,850
1,158,794
116,574
1,275,368
830,288
46,484
876,772
Payment guarantees
Bidding guarantees
Other guarantees
Lending guarantees
246
220,573
1,062
221,635
1,441,242
83,124
1,524,366
39,275
-
39,275
3,690,172
5,858,068
9,548,240
Annual Report 2014
Separate Financial
31 December 2013
Denominated
in VND
Denominated
in foreign
currencies
Gross amount (*)
VND million
VND million
VND million
-
1,690,802
1,690,802
-
1,783,366
1,783,366
1,029,446
99,314
1,128,760
Payment guarantees
937,697
44,900
982,597
Bidding guarantees
189,778
3,147
192,925
Other guarantees
978,320
67,238
1,045,558
Lending guarantees
420,070
-
420,070
3,555,311
3,688,767
7,244,078
(*) This balance represented the gross amount of contingent liabilities and commitments
as at 31 December 2014 before marginal deposits of VND431,506 million (31/12/2013:
VND390,638 million).
39. Significant transactions with related parties
As at the year-end and during the year, there were the following significant balances and
transactions with related parties:
Balance at the year-end
Deposits from subsidiaries
Deposits from a joint venture and an associate
Deposits from other related parties (*)
Deposits with a subsidiary
31/12/2014
31/12/2013
VND million
VND million
1,045,364
695,464
14,927
16,014
559,636
799,758
91,340
248,265
Loans to a subsidiary
376,407
164,531
Loans to other related parties (*)
654,081
932,329
1,000,000
1,000,000
Advances to and receivables from subsidiaries
100,000
100,000
Advances to and receivables from other related parties (*)
413,366
626,466
462
1,451
2,461
1,592
Interest receivables from loans to other related parties (*)
19,363
39,109
Interest receivables from bonds issued by a related party (*)
81,152
19,092
2,457
3,011
55
88
5,523
21,180
17,250
18,500
258,608
316,316
Investment in bonds issued by a related party (*)
Interest receivables from deposit with a subsidiary
Interest receivables from loans to a subsidiary
Interest payables from deposits to subsidiaries
Interest payables from deposits to a joint venture and an associate
Interest payables from deposits to other related parties (*)
Entrusted investments received from related parties (*)
Distribution from subsidiaries
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Transactions incurred during the year
Interest income from deposits with a subsidiary
2014
2013
VND million
VND million
6,991
29,132
Interest income from loans to a subsidiary
17,938
4,561
Interest income from loans to other related parties (*)
50,145
76,904
-
25,341
48,712
55,102
816
1,251
46,715
114,478
258,608
141,813
-
3,645
Interest income from deposits for trading securities
with a subsidiary
Interest expense on deposits from subsidiaries
Interest expense on deposits from a joint venture and an associate
Interest expense on deposits from other related parties (*)
Distribution income from subsidiaries
Reversal of distribution income from a subsidiary
Purchased other long-term investments from a subsidiary
Fees paid to subsidiaries
Fees paid to an associate
-
767
4,929
13,429
139,888
118,810
129
117
-
481,325
Fees earned from a subsidiary
Purchases of fixed assets from subsidiaries
Purchased bond issued by a related party (*)
-
700,000
13,813
11,986
Remuneration – Members of the Board of Directors
4,960
4,840
Remuneration – Members of the Supervisory Board
2,950
2,416
Remuneration – Members of the Board of Management
(*) Other related parties comprise key management personnel including members of Board of
Directors, members of Board of Management, members of Board of Supervisors. Chief of
Financial Officer. Chief Accountant and close members of the family of these individuals and
companies which these individuals directly or indirectly hold significant voting right or have
significant influence over.
40. Concentration of assets, liabilities and off-balance
sheet commitments by geographical area
Loans and
advances to
customers gross
Deposits
from
customers
Deposits
with and
Deposits
loans to
and borContingent
other
rowings
liabilities and Investment
credit from other
loan comin securi- institutions
credit inmitments ties - gross
- gross stitutions Derivatives
As at 31
December
2014
VND million
VND million
VND million VND million VND million VND million VND million
Domestic
115,353,743
155,515,111
Overseas
-
-
115,353,743
155,515,111
248
3,686,544 41,085,263
4,293,212 5,997,137
2,585,596
5,861,696
1,285,541
253
2,272,798
5,578,753 5,997,390
4,858,394
-
9,548,240 41,085,263
Annual Report 2014
Separate Financial
Loans and
advances to
customers gross
As at 31
December
2013
VND million
Deposits
from
customers
Contingent
liabilities
and
loan commitments
Deposits
with and
loans to
other
credit
institutions
- gross
Deposits
and borrowings
from other
credit institutions Derivatives
Investment
in securities
- gross
Domestic
106,178,937
138,669,127
3,566,016
34,090,327
6,567,619
7,800,770
2,582,280
Overseas
-
-
3,678,062
-
1,454,245
252
457,637
106,178,937
138,669,127
7,244,078
34,090,327
8,021,864
7,801,022
3,039,917
41. Segment reporting
Geographical segments
The Bank reports segment information by main regions in Vietnam as follows:
31 December 2014
VND million
The Northern
region
The Central
region
The Southern
region
Total
Assets
26,667,757
14,269,533
138,960,066
179,897,356
Liabilities
26,344,897
14,166,677
127,257,176
167,768,750
80,000
123,824
2,546,130
2,749,954
Fixed assets
2014
VND million
The Northern
region
The Central
region
The Southern
region
Total
Income
3,479,796
1,729,172
9,805,492
15,014,460
Expense
3,156,937
1,626,317
9,127,037
13,910,291
322,859
102,855
678,455
1,104,169
Profit before tax
31 December 2013
VND million
The Northern
region
The Central
region
The Southern
region
Total
Assets
21,011,234
10,231,493
135,065,356
166,308,083
Liabilities
21,044,440
6,207,236
126,791,520
154,043,196
91,823
133,553
2,276,112
2,501,488
Fixed assets
2013
VND million
The Northern
region
The Central
region
The Southern
region
Total
Income
4,009,859
1,684,519
10,903,838
16,598,216
Expense
3,650,083
1,613,878
10,328,742
15,592,703
359,776
70,641
575,096
1,005,513
Profit before tax
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42. Financial Risk Management
The Bank’s business involves taking on risks in a targeted manner and managing them
professionally. The core functions of the Bank’s risk management are to identify all key risks of
the Bank, measure these risks, manage the risk positions and determine capital allocations. The
Bank regularly reviews its risk management policies and systems to reflect changes in markets,
products and best market practice.
The Bank’s aim is to achieve an appropriate balance between risk and return and to minimise
potential adverse effects on the Bank’s financial performance.
The Bank defines risks as the possibility of losses or profit foregone, which may be caused by
internal or external factors.
Risk management is carried out by a Risk Management Division under the policies approved by
the Board of Directors. The Risk Management Division identifies, evaluates and hedges financial
risks in close co-operation with the Bank's operating units. The Board of Directors approves
written principles for overall risk management, as well as written policies covering specific areas,
such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments
and non-derivative financial instruments. In addition, the Internal Audit Committee is responsible
for the independent review of risk management and the control environment. All regulations,
policies, processes of risk management are established, maintained, carried out and controlled
in the consistence with statutes of internal control system issued and applied for the Bank.
The financial risks arising from financial instruments which the Bank is exposed to include credit
risk, liquidity risk, market risk and operational risk.
(a) Credit risk
Credit risk is the risk of financial loss to the Bank if a customer or counterparty to a financial
instrument fails to meet its contractual obligations. Credit risk mainly arises from lending activities
and guarantees.
The Bank is also exposed to other credit risks arising from investments in debt securities and
other exposures arising from its trading activities, including non-equity trading portfolio assets,
derivatives and settlement balances with counterparties. See Notes 7, 8, 10, 12 and 16 for
specified matters related to credit risk.
Credit risk is the largest risk for the Bank’s business; management therefore carefully manages
its exposure to credit risk. The credit risk management and control are centralised in a credit risk
management team, which regularly reports to the Board of Management, Credit Committee and
Board Risk Committee.
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Annual Report 2014
Separate Financial
Management of credit risk for the assessment of impairment and provision
(i) Loans and guarantees
The estimation of credit exposure is carried out before and during the period of lending.
The Bank has developed models to support the quantification of the credit risk. These rating and
scoring models are in use for all key credit portfolios and form the basis for measuring default
risks before and during the period of lending.
Where there is an indication of a changing risk profile of large exposure customers which may
have significant negative impact on the loan portfolio of the Bank, the management considers
and establishes a separate working group to assess the risk involved, monitor, control and
minimise the exposures on an ongoing basis.
In measuring these credit risks, the Bank considers to classify loans and guarantees and make
allowance in accordance with Circular 02 and Circular 09 as disclosed in Notes 4(e), 4(f) and 4(l).
(ii) Debt securities
The Bank’s investments in debt securities are those issued by the Government, domestic credit
institutions and economic organisations. Credit risk is measured on a case-by-case basis when
the Bank reassesses that the risk profile of the counterparty has changed. Investments in these
securities are viewed as a way to gain a better credit quality mapping and maintain a readily
available source to meet the funding requirements at the same time.
Credit risk control and mitigation policies
The Bank manages credit risk by placing limits on exposures (for both on and off-balance sheet
exposures) in relation to each borrower, or group of borrowers in accordance with regulations
of the SBV. In addition, exposure to credit risk is also managed through regularly reviewing the
classes of collateral and analysing the ability of borrowers and potential borrowers to meet
interest and capital repayment obligations.
The Bank employs a range of policies and practices to mitigate credit risk. The most traditional
practice is the taking of security for loans and advances, which is a common practice, The principal
collateral types for loans and advances are:
• Mortgages over residential properties, land use rights;
• Charges over business assets such as premises, machinery equipment, inventory and account
receivable; and
• Charges over financial instruments such as debt securities and equity securities.
For secured loans, collateral is independently valued by the Bank and the Bank applies specific
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Separate Financial
discount rates to determine the maximum amount of loans that can be granted which are
stipulated by the Bank’s internal policies. When the market value of collateral is reduced, the Bank
will require borrowers to provide additional collateral to maintain the security over loan exposure.
Commitments having credit risk mainly include letters of credit and financial guarantees contracts
which carry the same credit risk as loans, Documentary and commercial letters of credit which are
written by the Bank on behalf of a customer to authorise a third party to draw drafts on the Bank
up to a stipulated amount under specific terms and conditions are collateralised by the underlying
shipments of goods to which they relate and therefore carry less risk than a direct loan. Issuance
of financial guarantee contracts and letters of credit are subject to the same credit assessment
and approval process as those for loans and advances to customers, unless the customer places
100% margin deposits for the related commitments.
Maximum exposure to credit risk before collateral held or other credit enhancements
The maximum exposure to credit risk is the carrying amounts on the balance sheet as well as
off-balance sheet of financial instruments, without taking into account any collateral held or
other credit enhancements. For contingent liabilities, the maximum exposure to credit risk is the
maximum amount that the Bank would have to pay if the obligations of the instruments issued
are called upon, For credit commitments, the maximum exposure to credit risk is the full amount
of the undrawn credit facilities granted to customers. The table below shows the maximum
exposure to credit risk for the Bank:
31/12/2014
31/12/2013
VND million
VND million
5,578,753
8,021,864
Held-for-trading securities – debt securities – gross
1,015,684
555,909
14,403
150
115,353,743
106,178,937
Debt securities – Available-for-sales securities – gross
23,418,339
6,923,095
Debt securities – Held-to-maturity securities – gross
16,386,318
26,302,417
8,522,174
8,776,205
170,289,414
156,758,577
9,548,240
7,244,078
179,837,654
164,002,655
Credit risk exposures relating to on balance sheet assets
Investments securities:
Other financial assets – gross
Credit risk exposures relating to off-balance sheet assets
Contingent liabilities and credit commitments
The above table represents the worst case with the maximum level of loss of the Bank as at 31
December 2014 and 31 December 2013, not taking into account any collateral held or other
credit enhancements.
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Annual Report 2014
Separate Financial
Credit quality
Finanical assets exposed to credit risk are summarised as follows:
Deposits
with and
loans to
other credit
As at 31
December
2014
Held-fortrading
securities
Loans and
advances to
customers
Investment
securities
Other
financial
assets
Total
VND million VND million VND million
VND million
VND million
Balances
neither past
due nor
impaired
4,459,845
14,403
982,554 109,699,774
36,670,516
7,152,110
158,979,202
Balances
past due
but not
impaired
-
-
-
151,334
-
-
151,334
Balances
impaired
1,118,908
-
33,130
5,502,635
3,134,141
1,370,064
11,158,878
Gross
5,578,753
14,403
1,015,684 115,353,743
39,804,657
8,522,174
170,289,414
Allowance
(703,953)
-
(1,554,785)
(282,445)
(541,847)
(3,083,166)
Net
4,874,800
14,403
1,015,548 113,798,958
39,522,212
7,980,327
167,206,248
Specific
allowance
(703,953)
-
-
(715,496)
(247,463)
(541,847)
(2,208,759)
General
allowance
-
-
-
(839,289)
(34,041)
-
(873,330)
Allowance
for
diminution in
value
-
-
(136)
-
(941)
-
(1,077)
(703,953)
-
(136)
(1,554,785)
(282,445)
(541,847)
(3,083,166)
(136)
Allowance
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As at 31
December
2013
Deposits
with and
loans to
othe credit
Held-fortrading
securities
Loans and
advances to Investment
customers
securities
Other
financial
assets
Total
VND million VND million VND million
VND million
VND million
VND million
VND million
Balances
neither past
due nor
impaired
7,302,956
150
555,909
99,649,081
30,296,163
7,089,722
144,893,981
Balances
past due but
not impaired
-
-
-
358,520
-
-
358,520
718,908
-
-
6,171,336
2,929,349
1,686,483
11,506,076
Gross
8,021,864
150
555,909
106,178,937
33,225,512
8,776,205
156,758,577
Allowance
(395,149)
-
-
(1,513,812)
(82,903)
(305,540)
(2,297,404)
Net
7,626,715
150
555,909
104,665,125
33,142,609
8,470,665
154,461,173
Specific
allowance
(375,908)
-
-
(730,593)
(82,903)
(305,540)
(1,494,944)
General
allowance
(19,241)
-
-
(783,219)
-
-
(802,460)
(395,149)
-
-
(1,513,812)
(82,903)
(305,540)
(2,297,404)
Balances
impaired
Allowance
Collateral
The Bank usually accepts collateral for deposits with and loans to other credit institutions, debt
securities and loans and advances to customers and off-balance sheet commitments, Details of
collateral held as at 31 December 2014 and 31 December 2013 were:
31/12/2014
31/12/2013
VND million
VND million
182,706,309
170,672,006
Inventories
2,351,418
1,914,051
Machinery and equipment
8,992,606
8,867,253
Shares and valuable papers
27,368,517
31,357,262
Other assets
20,294,262
20,597,858
241,713,112
233,408,430
Land and property
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Annual Report 2014
Separate Financial
Collateral held by the Bank is recorded as an off-balance sheet item according to the SBV’s
current regulations.
(b) Market risk
The Bank takes on exposure to market risks, Market risks are the risks that the fair value or future
cash flows of a financial instrument will fluctuate because of changes in market prices, Market
risks arise from open positions in interest rate, currency and equity instruments, all of which
are exposed to general and specific market movements and changes in the level of volatility of
market rates or prices such as interest rates, foreign exchange rates and share prices.
(i) Interest rate risk
Cash flow interest rate risk is the risk that future cash flows of financial instruments will fluctuate
because of changes in the market interest rate, Fair value interest rate risk is the risk that the
value of a financial instrument will fluctuate because of changes in the market interest rate, The
Bank manages interest rate risk by monitoring the level of mismatch of interest rate by terms on
a monthly basis.
Management of interest rate risk
The following table show the Bank’s assets, liabilities and off-balance sheet items categorised by
the real interest adjustment term at the reporting date.
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255
Separate Financial
Overdue
Non-interest
bearing
Up to 1 month
VND million
VND million
VND million
-
2,496,266
-
-
3,357,730
-
718,908
-
2,009,198
-
1,015,684
-
-
14,403
-
2,766,184
5,000
2,762,932
443,125
1,395,661
-
-
2,839,136
-
Fixed assets
-
2,749,954
-
190,579
9,473,861
-
4,118,796
23,347,695
4,772,130
-
-
2,798,864
-
-
76,584,659
-
-
-
-
-
-
Other liabilities
-
3,068,094
-
-
3,068,094
79,383,523
4,118,796
20,279,601
(74,611,393)
-
(9,548,240)
-
4,118,796
10,731,361
(74,611,393)
Assets
Liabilities
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Annual Report 2014
Separate Financial
1-3 months
3-6 months
6-12 months
1-5 years
Over 5 years
Total
VND million
VND million
VND million
VND million
VND million
VND million
-
-
-
-
-
2,496,266
-
-
-
-
-
3,357,730
1,469,747
200,900
1,180,000
-
-
5,578,753
-
-
-
-
-
1,015,684
-
-
-
-
-
14,403
96,498,589
5,556,722
6,802,324
767,205
194,787
115,353,743
1,796,185
300,584
3,129,349
31,173,127
1,831,548
40,069,579
-
-
-
-
-
2,839,136
-
-
-
-
-
2,749,954
-
-
-
-
-
9,664,440
99,764,521
6,058,206
11,111,673
31,940,332
2,026,335
183,139,688
3,198,526
-
-
-
-
5,997,390
14,798,448
20,338,014
7,552,138
36,241,820
32
155,515,111
158,734
-
-
-
29,421
188,155
-
-
-
-
3,000,000
3,000,000
-
-
-
-
-
3,068,094
18,155,708
20,338,014
7,552,138
36,241,820
3,029,453
167,768,750
81,608,813
(14,279,808)
3,559,535
(4,301,488)
(1,003,118)
15,370,938
-
-
-
-
-
(9,548,240)
81,608,813
(14,279,808)
3,559,535
(4,301,488)
(1,003,118)
5,822,698
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257
Separate Financial
Overdue
Non-interest
bearing
Up to 1 month
VND million
VND million
VND million
-
2,043,413
-
-
881,366
2,183,956
718,908
-
2,003,017
-
555,909
-
-
150
-
3,438,198
647,395
3,190,464
500,000
627,202
-
-
2,900,190
-
Fixed assets
-
2,501,488
-
314,998
9,722,671
-
4,972,104
19,879,784
7,377,437
-
-
1,583,146
-
-
7,775,022
-
-
75,125,902
-
-
-
-
-
-
Other liabilities
-
2,626,556
-
-
2,626,556
84,484,070
4,972,104
17,253,228
(77,106,633)
-
(7,244,078)
-
4,972,104
10,009,150
(77,106,633)
Assets
Liabilities
(ii) Currency risk
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in
foreign exchange rates. The Bank was established and operates in Vietnam and the accounting
currency is VND. Major transactions of the Bank are also in VND. During the year, exchange rates
between VND and foreign currencies did not fluctuate significantly, except for price of gold. The
Bank’s loans and advances to customers were mainly denominated in VND and USD (most of
loan balances in gold as at 31 December 2012 have been converted into VND balance after the
amendment agreements between the Bank and its customers). However, some other assets
of the Bank are denominated in foreign currencies other than USD. The Board of Management
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Annual Report 2014
Separate Financial
1-3 months
3-6 months
6-12 months
1-5 years
Over 5 years
Total
VND million
VND million
VND million
VND million
VND million
VND million
-
-
-
-
-
2,043,413
-
-
-
-
-
3,065,322
582,131
792,143
1,275,001
2,563,969
86,695
8,021,864
-
-
-
-
-
555,909
-
-
-
-
-
150
85,390,905
4,746,964
7,597,123
931,255
236,633
106,178,937
-
2,370,026
2,370,000
24,861,518
2,805,672
33,534,418
-
-
-
-
-
2,900,190
-
-
-
-
-
2,501,488
-
-
-
-
-
10,037,669
85,973,036
7,909,133
11,242,124
28,356,742
3,129,000
168,839,360
-
-
-
-
-
1,583,146
-
26,000
-
7,801,022
16,715,072
14,841,065
17,937,582
14,049,422
84
138,669,127
-
643
-
310,107
52,595
363,345
-
-
-
-
3,000,000
3,000,000
-
-
-
-
-
2,626,556
16,715,072
14,841,708
17,937,582
14,385,529
3,052,679
154,043,196
69,257,964
(6,932,575)
(6,695,458)
13,971,213
76,321
14,796,164
-
-
-
-
-
(7,244,078)
69,257,964
(6,932,575)
(6,695,458)
13,971,213
76,321
7,552,086
sets limits on the level of exposure by each currency, including gold. The currency position is
monitored daily and the Bank takes risk mitigation actions to ensure that the currency position is
within the set limit.
Management of currency risk
The following table show the Bank’s assets, liabilities and equity categorised by currencies are
translated into VND at the reporting date.
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Separate Financial
VND
USD
Gold
VND million
VND million
VND million
1,900,324
493,989
50,761
1,997,941
1,359,789
-
3,902,651
1,565,414
-
1,015,684
-
-
358,043
(364,803)
-
105,310,025
9,441,086
593,154
40,069,579
-
-
2,839,136
-
-
Fixed assets
2,749,954
-
-
9,310,634
270,060
3,852
169,453,971
12,765,535
647,767
4,672,498
1,324,772
-
144,397,506
10,978,533
-
158,734
-
-
3,000,000
-
-
Other liabilities
2,588,299
286,846
-
12,128,606
-
-
166,945,643
12,590,151
-
2,508,328
175,384
647,767
(3,690,172)
(5,765,223)
-
(1,181,844)
(5,589,839)
647,767
Assets
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Annual Report 2014
Separate Financial
EUR
JPY
AUD
CAD
Other
currencies
Total
VND million
VND million
VND million
VND million
VND million
VND million
26,722
5,640
9,095
5,310
4,425
2,496,266
-
-
-
-
-
3,357,730
65,184
23,665
2,060
6,043
13,736
5,578,753
-
-
-
-
-
1,015,684
-
17,800
6,968
(1,834)
(1,771)
14,403
9,478
-
-
-
-
115,353,743
-
-
-
-
-
40,069,579
-
-
-
-
-
2,839,136
-
-
-
-
-
2,749,954
28
63,303
-
9
16,554
9,664,440
101,412
110,408
18,123
9,528
32,944
183,139,688
19
22
79
-
-
5,997,390
74,751
41,435
11,032
1,513
10,341
155,515,111
-
29,421
-
-
-
188,155
-
-
-
-
-
3,000,000
22,190
135,611
8,350
5,685
21,113
3,068,094
-
-
-
-
-
12,128,606
96,960
206,489
19,461
7,198
31,454
179,897,356
4,452
(96,081)
(1,338)
2,330
1,490
3,242,332
(51,910)
(34,408)
(577)
-
(5,950)
(9,548,240)
(47,458)
(130,489)
(1,915)
2,330
(4,460)
(6,305,908)
www.acb.com.vn
261
Separate Financial
VND
USD
Gold
VND million
VND million
VND million
1,333,841
579,115
43,190
2,160,753
904,569
-
5,924,216
1,989,541
-
555,909
-
-
(23,352)
(19,071)
-
95,181,569
10,151,501
829,402
33,534,418
-
-
2,900,190
-
-
Fixed assets
2,501,488
-
-
9,627,227
323,581
5,300
153,696,259
13,929,236
877,892
1,583,146
-
-
6,359,447
1,441,425
-
126,208,884
12,279,245
-
330,119
-
-
3,000,000
-
-
Other liabilities
2,099,511
203,070
42
12,264,887
-
-
151,845,994
13,923,740
42
1,850,265
5,496
877,850
(3,555,311)
(3,463,044)
-
(1,705,046)
(3,457,548)
877,850
Assets
(iii) Equity price risk
The Bank is exposed to equity price risk, The price risk relating to held-for-trading equity
securities is managed through the analysis of the market movement and investment decision is
made based on the purpose of gaining profit in the short term, Investments in available-for-sale
equity investments are made based on business purpose of the Bank, taking into account the
diversification in the investment portfolio.
262
Annual Report 2014
Separate Financial
EUR
JPY
AUD
CAD
Other
currencies
Total
VND million
VND million
VND million
VND million
VND million
VND million
42,824
10,535
16,699
7,654
9,555
2,043,413
-
-
-
-
-
3,065,322
36,454
38,972
2,553
687
29,441
8,021,864
-
-
-
-
-
555,909
44,451
-
(1,878)
-
-
150
16,465
-
-
-
-
106,178,937
-
-
-
-
-
33,534,418
-
-
-
-
-
2,900,190
-
-
-
-
-
2,501,488
99
62,674
18,778
10
-
10,037,669
140,293
112,181
36,152
8,351
38,996
168,839,360
-
-
-
-
-
1,583,146
41
24
85
-
-
7,801,022
105,202
43,012
8,439
3,202
21,143
138,669,127
-
33,226
-
-
-
363,345
-
-
-
-
-
3,000,000
75,566
231,154
7,325
4,533
5,355
2,626,556
-
-
-
-
-
12,264,887
180,809
307,416
15,849
7,735
26,498
166,308,083
(40,516)
(195,235)
20,303
616
12,498
2,531,277
(119,070)
(34,263)
-
-
(72,390)
(7,244,078)
(159,586)
(229,498)
20,303
616
(59,892)
(4,712,801)
(iv) Sensitivity analysis
Changes in market risks can result in increase/decrease of the profit which the Bank has recognised.
The sensitivity assessment of market risk can be made based on changes to main risk factors
such as interest rate, currency exchange rate and share prices while other factors are kept
constant, The Bank will analyse and present the sensitivity analysis of its market risk when it has
detailed guidance from the regulators.
www.acb.com.vn
263
Separate Financial
(c)Liquidity risk
Liquidity risk is the risk that the Bank is unable to meet the payment obligations associated
with its financial liabilities when they fall due and to replace funds when they are withdrawn. The
consequence may be the failure to meet obligations to repay depositors, payables and fulfil
commitments to lend. The main management processes include:
Overdue
Over 3 months
Up to 3 months
VND million
VND million
-
-
-
-
718,908
-
-
-
-
-
2,255,151
511,033
Assets
Deposits with and loans to other
credit institutions – gross
customers – gross
443,125
-
-
-
Fixed assets
-
-
190,579
-
3,607,763
511,033
Deposits and borrowings from other
credit institutions
-
-
-
-
Funds received from the
Government, international and
-
-
-
-
Other liabilities
-
-
-
-
3,607,763
511,033
Liabilities
Net liquidity gap
264
Annual Report 2014
Separate Financial
•Monitor day-to-day mobilisation and lending activities;
•Maintain a portfolio of securities that can be easily converted into cash; and
•Monitor the balance sheet liquidity ratios against the regulatory requirements of the SBV.
Management of liquidity risk
The following table show the Bank’s assets and liabilities categorised by the remaining contractual
maturities at the reporting date.
Current
Up to 1 month
1-3 months
3-12 months
1-5 years
Over 5 years
Total
VND million
VND million
VND million
VND million
VND million
VND million
2,496,266
-
-
-
-
2,496,266
3,357,730
-
-
-
-
3,357,730
1,689,197
1,031,900
522,670
1,561,846
54,232
5,578,753
1,015,684
-
-
-
-
1,015,684
14,403
-
-
-
-
14,403
6,424,495
14,104,297
39,342,142
21,560,526
31,156,099
115,353,743
662,501
2,498,737
4,022,933
26,442,161
6,000,122
40,069,579
-
-
-
-
2,839,136
2,839,136
-
-
-
-
2,749,954
2,749,954
8,294,376
-
1,179,485
-
-
9,664,440
23,954,652
17,634,934
45,067,230
49,564,533
42,799,543
183,139,688
4,252,275
1,036,380
571,881
118,896
17,958
5,997,390
76,306,746
30,552,671
45,232,872
3,335,115
87,707
155,515,111
-
17,280
46,853
94,999
29,023
188,155
-
-
-
-
3,000,000
3,000,000
3,068,094
-
-
-
-
3,068,094
83,627,115
31,606,331
45,851,606
3,549,010
3,134,688
167,768,750
(59,672,463)
(13,971,397)
(784,376)
46,015,523
39,664,855
15,370,938
www.acb.com.vn
265
Separate Financial
Overdue
Over 3 months
Up to 3 months
VND million
VND million
-
-
-
-
718,908
-
-
-
-
-
2,726,780
711,418
500,000
-
-
-
Fixed assets
-
-
314,998
-
4,260,686
711,418
-
-
Deposits and borrowings from other
credit institutions
-
-
-
-
Funds received from the Government, international and other credit
institutions
-
-
-
-
Other liabilities
-
-
-
-
4,260,686
711,418
Assets
Deposits with and loans to other
credit institutions – gross
– gross
Liabilities
Net liquidity gap
(d) Fair value of financial assets and financial liabilities
Circular No, 210/2009/TT-BTC requires the Bank to disclose the measurement method and
related information of fair value of financial assets and financial liabilities for the purpose of
comparing their book value and fair value of these financial instruments.
Basis for determining fair values
Cash on hand, gold and gemstones, short-term deposits and short-term borrowings (including
balances with the SBV, deposits with other credit institutions, borrowings from the SBV and
deposits and borrowings from other credit institutions)
266
Annual Report 2014
Separate Financial
Current
Up to 1 month
1-3 months
3-12 months
1-5 years
Over 5 years
Total
VND million
VND million
VND million
VND million
VND million
VND million
2,043,413
-
-
-
-
2,043,413
3,065,322
-
-
-
-
3,065,322
2,203,017
982,131
2,404,563
1,646,293
66,952
8,021,864
555,909
-
-
-
-
555,909
150
-
-
-
-
150
7,160,593
16,411,379
31,267,807
22,136,924
25,764,036
106,178,937
872,731
2,070,026
4,470,891
20,775,757
4,845,013
33,534,418
-
-
-
-
2,900,190
2,900,190
-
-
-
-
2,501,488
2,501,488
7,808,186
-
543,000
1,371,485
-
10,037,669
23,709,321
19,463,536
38,686,261
45,930,459
36,077,679
168,839,360
1,583,146
-
-
-
-
1,583,146
7,775,022
-
-
26,000
-
7,801,022
81,657,242
25,225,528
30,062,836
1,723,521
-
138,669,127
1,350
20,912
65,078
237,728
38,277
363,345
-
-
-
-
3,000,000
3,000,000
2,626,556
-
-
-
-
2,626,556
93,643,316
25,246,440
30,127,914
1,987,249
3,038,277
154,043,196
(69,933,995)
(5,782,904)
8,558,347
43,943,210
33,039,402
14,796,164
Fair value of cash on hand, gold and gemstones, short-term deposits and short-term liabilities
are equivalent to their carrying amount because these instruments have short-term maturity.
Other financial instruments
The Bank has not determined fair values of these financial instruments for disclosure in these
separate financial statements because there is currently no guidance on determination of fair
value using valuation techniques under Vietnamese Accounting Standards, the Vietnamese
Accounting System for Credit Institutions stipulated by the SBV and the relevant statutory
requirements applicable to financial reporting, The fair values of these financial instruments may
differ from their carrying amounts.
www.acb.com.vn
267
Separate Financial
43. Commitments
(a) Capital expenditure
As at 31 December 2014 and 31 December 2013, the Bank had the following outstanding capital
commitments approved but not provided for in the separate balance sheet:
Approved and contracted
31/12/2014
31/12/2013
VND million
VND million
101,439
57,071
(b) Leases
The future minimum lease payments under non-cancellable operating leases were:
31/12/2014
31/12/2013
VND million
VND million
Within one year
245,253
144,744
Over one year to five years
641,749
553,498
262,744
155,725
1,149,746
853,967
More than five years
268
Annual Report 2014
Separate Financial
44. Corresponding figures
Effective from 1 June 2014, the Bank adopted Circular 10 to amend and supplement several
accounts in the chart of accounts of credit institutions issued in conjunction with the Decision No,
479/2004/QD-NHNN dated 29 April 2004 of the Governor of the SBV prospectively. As a result
of the change in the chart of accounts, corresponding figures for the year ended 31 December
2013 have been reclassified to conform with the current year’s presentation, A comparison of
the amounts previously reported and reclassified is as follows:
(a) Separate statement of income
2013
(as reclassified)
VND million
VND million
15,184,589
15,005,189
720,367
899,767
(b) Separate statement of cash flows
2013
(as reclassified)
VND million
VND million
15,613,297
15,433,897
517,975
697,375
Nguyen Van Hoa Do Minh Toan Tran Hung Huy
6 March 2015
www.acb.com.vn
269
Branch Network
As of December 31, 2014, ACB had 346 branches and sub-branches.
Number of branches & sub-branches and sub-branches over year
2014
346
2013
346
342
2012
326
2011
281
2010
0
50
100
150
200
250
300
350
400
Number of branches & sub-branches
81
265
Branches
Sub-branches
Number of branches and sub-branches by region:
Number of branches & sub-branches by region
32
28
84
2
14
14
172
Red River Delta
Northheast
North Central
Highlands
Southeast
South Central Coast
Mekong Delta
270
Red River
Delta:
Hanoi, Vinh Phuc, Bac Ninh, Hai Duong,
Hai Phong, Hung Yen, Ha Nam, Nam Dinh,
Quang Ninh;
Northeast:
Thai Nguyen, Bac Giang;
North Central:
Thanh Hoa, Nghe An, Ha Tinh, Quang Binh;
Highlands:
Kon Tum, Gia Lai, Daklak, Lam Dong;
Southeast:
Binh Phuoc, Tay Ninh, Binh Duong, Dong
Nai, Vung Tau, HCMC;
South Central
Coast:
Hue, Da Nang, Quang Nam, Quang Ngai,
Binh Dinh, Phu Yen, Khanh Hoa, Ninh
Thuan, Binh Thuan;
Mekong Delta:
Long An, Tien Giang, Ben Tre, Tra Vinh,
Vinh Long, Dong Thap, An Giang,
Kien Giang, Can Tho, Hau Giang, Soc Trang,
Bac Lieu, Ca Mau.
Annual Report 2014
Branch Network
Unit
Adress
THE SOUTH OF VIETNAM
Phone
Fax
HO CHI MINH CITY
District 1
Ben Thanh Branch
96, Ly Tu Trong, Ben Thanh Ward, District 1, HCMC
(08) 38257949
(08) 38257950
Sai Gon Branch
41 Mac Dinh Chi, Da Kao Ward, District 1, HCMC
(08) 38243770
(08) 38243946
Ben Chuong Duong Sub-Branch
225, Ben Chuong Duong, Co Giang Ward, District 1, HCMC
(08) 38370585
(08) 38370584
Citi Plaza Sub-Branch
230, Nguyen Trai, Nguyen Cu Trinh Ward, District 1, HCMC
(08) 38378275
(08) 39256645
Da Kao Sub-Branch
45, Vo Thi Sau, Da Kao Ward, District 1, HCMC
(08) 62905980
(08) 62905981
Le Loi Sub-Branch
41, Le Loi, Ben Nghe Ward, District 1, HCMC
(08) 38214619
(08) 38434618
Nguyen Cong Tru Sub-Branch
74 - 76, Nguyen Cong Tru, Nguyen Thai Binh Ward, District 1, HCMC
(08) 62959056
(08) 62959057
Nguyen Thai Binh Sub-Branch
176 – 178, Ky Con, Nguyen Thai Binh Ward, District 1, HCMC
(08) 39151310
(08) 39151311
Thi Nghe Sub-Branch
2 Bis - 04, Nguyen Thi Minh Khai, Da Kao Ward, District 1, HCMC
(08) 54046300
(08) 54046301
Tran Khac Chan Sub-Branch
23, Tran Khac Chan, Tan Dinh Ward, District 1, HCMC
(08) 35267737
(08) 35267738
Hai Ba Trung Sub-Branch
56-58-60, Hai Ba Trung, Ben Nghe Ward, District 1, HCMC
(08) 62913900
(08) 62913109
Sai Gon Commercial Center
Sub-Bracnh
72, Le Loi, Ben Thanh Ward, District 1, HCMC
(08) 38272060
(08) 38272061
Nguyen Du Sub-Branch
Ground floor, 94 - 96, Nguyen Du, Ben Nghe Ward, District 1, HCMC
(08) 35218626
(08) 35218627
District 2
Dong Sai Gon Sub-Branch
204, Tran Nao, Binh An Ward, District 2, HCMC
(08) 62607080
(08) 62607079
Cat Lai Sub-Branch
354 – 356, Nguyen Thi Dinh, Thanh My Loi Ward, District 2, HCMC
(08) 37423730
(08) 37423731
Thao Dien Sub-Branch
14, Thao Dien (Fidico Building) , Thao Dien Ward, District 2, HCMC
(08) 35194020
(08) 35194021
An Phu Sub-Branch
280 A18, Luong Dinh Cua, An Phu Ward, District 2, HCMC
(08) 3740 7908
(08) 3740 7909
Binh Trung Sub-Branch
399, Nguyen Duy Trinh, Binh Trung Tay Ward, District 2, HCMC
08 37 436 167
08 37 436 166
District 3
Hoa Hung Sub-Branch
444A-446, Cach Mang Thang 8, Ward 11, District 3, HCMC
(08)38681727
(08) 38681728
Le Ngo Cat Branch
7, Le Ngo Cat, Ward 7, District 3, HCMC
(08) 39302420
(08) 39302421
Dien Bien Phu Sub-Branch
331, Dien Bien Phu, Ward 4, District 3, HCMC
(08) 38181308
(08) 38181309
Ky Dong Sub-Branch
20/6B-20B, Ky Dong, Ward 9, District 3, HCMC
(08) 35264789
(08) 35264780
Ly Chinh Thang Sub-Branch
71, Ly Chinh Thang, Ward 8, District 3, HCMC
(08) 38480520
(08) 38480521
Minh Chau Sub-Branch
457, Le Van Sy, Ward 12, District 3, HCMC
(08) 38435984
(08) 38435983
Nga Bay Sai Gon Sub-Branch
625, Dien Bien Phu, Ward 1, District 3, HCMC
(08) 38336256
(08) 38336232
Nguyen Dinh Chieu Sub-Branch
411/2 - 413 - 415, Nguyen Dinh Chieu, Ward 5, District 3, HCMC
(08) 39301191
(08) 38301190
Nhieu Loc Sub-Branch
945 Hoang Sa, Ward 11, District 3, HCMC
(08) 39352190
(08) 39352191
Tan Dinh Sub-Branch
339, Hai Ba Trung, Ward 8, District 3, HCMC
(08) 38203243
(08) 38203253
Truong Dinh Sub-Branch
107N, Truong Dinh, Ward 6, District 3, HCMC
(08) 54043252
(08) 54043251
HCMC Branch
442-444-446-448, Nguyen Thi Minh Khai, Ward 5, District 3, HCMC
(08) 38395179
(08) 38344404
Head Office
442-444-446-448, Nguyen Thi Minh Khai, Ward 5, District 3, HCMC
(08) 39290999
(08) 38399885
Pham Ngoc Thach Sub-Branch
24-26, Pham Ngoc Thach, Ward 6, District 3, HCMC
(08) 54047510
(08) 54047509
District 4
Khanh Hoi Branch
130, Khanh Hoi, Ward 6, District 4, HCMC
(08) 54011224
(08) 54011225
Nha Rong Sub-Branch
14-16, Hoang Dieu, Ward 12, District 4, HCMC
(08) 39430161
(08) 39430160
Ton Dan Sub-Branch
400-402, Ton Dan, Ward 4, District 4, HCMC
(08) 39415646
(08) 39415644
Nguyen Khoai Sub-Branch
76, Nguyen Khoai, Ward 2, District 4, HCMC
(08) 3945 0700
(08) 3945 0701
District 5
Chau Van Liem Branch
130-132, Chau Van Liem, Ward 11, District 5, HCMC
(08) 39508450
(08) 39508454
Tran Khai Nguyen Branch
134, Nguyen Tri Phuong, Ward 9, District 5, HCMC
(08) 38339123
(08) 38339122
An Dong Sub-Branch
1, An Dương Vương, Ward 8, District 5, HCMC
(08) 38306448
(08) 38306438
Ham Tu Sub-Branch
10-12, Nhieu Tam, Ward 5, District 5, HCMC
(08) 39246599
(08) 39246590
Hung Vuong Sub-Branch
35B-37, Hung Vuong, Ward 4, District 5, HCMC
(08) 62534500
(08) 62534501
Nguyen Bieu Sub-Branch
60, Nguyen Bieu, Ward 1, District 5, HCMC
(08) 62611219
(08) 62611220
Nguyen Trai Sub-Branch
84, Nguyen Trai, Ward 3, District 5, HCMC
(08) 39240898
(08) 39240897
Ta Uyen Sub-Branch
101-103, Ta Uyen, Ward 15, District 5, HCMC
(08) 39552225
(08) 39552235
Tran Hung Dao Sub-Branch
811, Tran Hung Dao, Ward 1, District 5, HCMC
(08) 39245601
(08) 39245602
District 6
Binh Tay Branch
47-49, Hau Giang, Ward 2, District 6, HCMC
(08) 62610070
(08) 62610071
Cho Lon Branch
747, Hong Bang, Ward 6, District 6, HCMC
(08) 39606980
(08) 39690979
Phu Lam Branch
391A, Kinh Duong Vuong, Ward 12, District 6, HCMC
(08) 37516100
(08) 38776590
Binh Phu Sub-Branch
721 - 723, Hau Giang, Ward 11, District 6, HCMC
(08) 37553911
(08) 37553912
Binh Tien Sub-Branch
269 – 271, Binh Tien, Ward 8, District 6, HCMC
(08) 38540074
(08) 38540075
District 7
Tan Thuan Branch
334, Huynh Tan Phat, Binh Thuan Ward, District 7, HCMC
(08) 38720505
(08) 38720506
Huynh Tan Phat Sub-Branch
1097, Huynh Tan Phat, Quarter 3, Phu Thuan Ward, District 7, HCMC
(08) 37733359
(08) 37733360
Nam Sai Gon Sub-Branch
Gosto Commercial Building, 27-29 Nguyen Khac Viet, Tan Phu Ward, District 7, HCMC
(08) 54136500
(08) 54136501
www.acb.com.vn
271
Branch Network
Phu My Sub-Branch
1405, Nguyen Van Linh Highway, Tan Phong Ward, District 7, HCMC
(08) 54120355
(08) 54120352
Tan Phong Sub-Branch
433A, Nguyen Thi Thap, Tan Phong Ward, District 7, HCMC
(08) 37752450
(08) 37752451
District 8
Tung Thien Vuong Branch
402-404, Tung Thien Vuong, Ward 13, District 8, HCMC
(08) 39514191
(08) 39514192
Chanh Hung Sub-Branch
370 - 372, Pham Hung, Ward 5, District 8, HCMC
(08) 38523363
(08) 38523362
Hung Phu Sub-Branch
385 - 387, Hung Phu, Ward 9, District 8, HCMC
(08) 39544525
(08) 39544526
District 9
Kien Thiet Sub-Branch
70, Le Van Viet, Hiep Phu Ward, District 9, HCMC
(08) 37309090
(08) 37307657
Phuoc Binh Sub-Branch
407, Do Xuan Hop, Quarter 5, Phuoc Long Ward, District 9, HCMC
(08) 37283262
(08) 37283263
District 10
Ky Hoa Branch
109, Ba Thang Hai, Ward 11, District 10, HCMC
(08) 38398358
(08) 38398361
Phu Tho Branch
455, To Hien Thanh, Ward 14, District 10, HCMC
(08) 38638467
(08) 38638466
Ba Thang Hai Sub-Branch
590, Ba Thang Hai, Ward 14, District 10, HCMC
(08) 38669931
(08) 38669932
Bac Hai Sub-Branch
SS16, Hong Linh, Bac Hai Housing Compound, Ward 15, District 10 , HCMC
(08) 39770440
(08) 39770441
Ly Thuong Kiet Sub-Branch
324G, Ly Thuong Kiet, Ward 14, District 10, HCMC
(08) 3.866.9414
(08) 3.8669410
Ngo Gia Tu Sub-Branch
90 - 92, Ngo Gia Tu, Ward 9, District 10, HCMC
(08) 39273560
(08) 39273561
Nguyen Chi Thanh Sub-Branch
490, Nguyen Chi Thanh, Ward 7, District 10, HCMC
(08) 54051827
(08) 54051828
Nguyen Tri Phuong Sub-Branch
385, Nguyen Tri Phuong, Ward 5, District 10, HCMC
(08) 39572050
(08) 39572051
Van Hanh Sub-Branch
439, Su Van Hanh (prolonged), Ward 12, District 10, HCMC
(08) 38623470
(08) 38623471
District 11
Lac Long Quan Branch
624-626, Lac Long Quan, Ward 5, District 11, HCMC
(08) 39745714
(08) 39745715
Ong Ich Khiem Branch
132, Ong Ich Khien, Ward 5, District 11, HCMC
(08) 35103623
(08) 35103624
Minh Phung Sub-Branch
395 A-B Minh Phung, Ward 10, District 11, HCMC
(08) 39637150
(08) 39637151
Le Dai Hanh Sub-Branch
331, Le Dai Hanh, Ward 13, District 11, HCMC
(08) 39626986
(08) 39626987
District 12
An Suong Branch
1/6, Truong Chinh, Tan Thoi Nhat Ward, District 12, HCMC
(08) 62557793
(08) 62557794
Tan Chanh Hiep Sub-Branch
248-250-252-254, To Ky, Tan Chanh Hiep Ward, District 12, HCMC
(08) 37159957
(08) 37159958
To Ky Sub-Branch
B87-B88, Quarter 3, To Ky, Dong Hung Thuan Ward, District 12, HCMC
(08) 37159930
(08) 37159931
Nguyen Anh Thu Sub-Branch
10B/A, Nguyen Anh Thu, Quarter 1, Trung My Tay Ward, District 12, HCMC
(08) 37185180
(08) 37185181
Le Van Khuong Sub-Branch
201, Le Van Khuong, Hiep Thanh Ward, District 12, HCMC
(08) 37178317
(08) 37178318
Thanh Loc Sub-Branch
377, Ha Huy Giap, Ward Thanh Loc, District 12, HCMC
(08) 37010068
(08) 3701 0067
Binh Tan District
An Lac Sub-Branch
489 - 491, Kinh Duong Vuong,An Lac Ward, Binh Tan District, HCMC
(08) 37526757
(08) 37526756
Binh Tri Dong Sub-Branch
246, Vanh Dai Trong, Binh Tri Đong B Ward, Binh Tan District, HCMC
(08) 38779282
(08) 38779281
Binh Tan Sub-Branch
666, Tinh Lo 10, Quarter 16, Binh Tri Dong Ward, Binh Tan District, HCMC
(08) 37620030
(08) 37620031
Go Cat Sub-Branch
973, Tan Ky Tan Quy, Binh Hung Hoa A Ward, Binh Tan District, HCMC
(08) 37671960
(08) 37671961
Go May Sub-Branch
745, Le Trong Tan, Binh Hung Hoa Ward, Binh Tan District, HCMC
(08) 37658160
(08) 37658161
Le Van Quoi Sub-Branch
31, Le Van Quoi, Quarter 3, Binh Tri Dong Ward, Binh Tan District, HCMC
(08) 3961 0330
(08) 3961 0338
Binh Thanh District
Binh Thanh Branch
71, Dien Bien Phu, Ward 15, Binh Thanh District, HCMC
(08) 35180787
(08) 35180788
Phan Dang Luu Branch
30A, Phan Dang Luu, Ward 6, Binh Thanh District, HCMC
(08) 35103623
(08) 35103624
Ba Chieu Sub-Branch
293 - 295, Bui Huu Nghia, Ward 1, Binh Thanh District, HCMC
(08) 35512785
(08) 35512685
Bach Dang Sub-Branch
60, Bach Dang, Ward 24, Binh Thanh District, HCMC
(08) 35119160
(08) 35119161
Ben Xe Mien Dong Sub-Branch
147, Nguyen Xi, Ward 26, Binh Thanh District, HCMC
(08) 62948791
08) 62948776
Binh Hoa 2 Sub-Branch
256, No Trang Long, Ward 12, Binh Thanh District, HCMC
(08) 62978612
(08) 62978613
Bui Dinh Tuy Sub-Branch
61, Bui Dinh Tuy, Ward 24, Binh Thanh District, HCMC
(08) 35119910
(08) 35119912
Hang Xanh Sub-Branch
278, Xo Viet Nghe Tinh, Ward 21, Binh Thanh District, HCMC
(08) 35146200
(08) 35146199
Le Quang Dinh Sub-Branch
342-344, Le Quang Dinh, Ward 11, Binh Thanh District, HCMC
(08) 54452624
(08) 54452625
Ngo Tat To Sub-Branch
66, Ngo Tat To, Ward 19, Binh Thanh District, HCMC
(08) 35146400
(08) 35146401
Thanh Da Sub-Branch
625, Xo Viet Nghe Tinh, Ward 26, Binh Thanh District, HCMC
(08) 35119353
(08) 35119354
Van Thanh Sub-Branch
197, D2, Ward 25, Binh Thanh District, HCMC
(08) 38991055
(08) 38991065
Go Vap District
Van Lang Branch
01, Quang Trung & 01-05 Nguyen Oanh, Ward 10, Go Vap District, HCMC
(08) 39894469
(08) 39894470
Go Vap Sub-Branch
626A, Quang Trung, Ward 11, Go Vap District, HCMC
(08) 35891677
(08) 38959701
Thong Nhat Sub-Branch
468, Thong Nhat, Ward 16, Go Vap District, HCMC
(08) 54465400
(08) 54465399
Nguyen Thai Son Sub-Branch
10A – 12A, Nguyen Thai Son, Ward 3, Go Vap District, HCMC
(08) 54465200
(08) 54465201
Phan Van Tri Sub-Branch
434, Nguyen Thai Son, Ward 5, Go Vap District, HCMC
(08) 39859814
(08) 39859815
Thach Da Sub-Branch
319 Le Van Tho, Ward 11, Go Vap District, HCMC
(08) 39212676
(08) 39212675
Nguyen Van Luong Sub-Branch
129 Nguyen Van Luong, Ward 17, Go Vap District, HCMC
(08) 39847430
(08) 39847431
Phu Nhuan District
Nguyen Van Troi Branch
23, Nguyen Van Troi, Ward 12, Phu Nhuan District , HCMC
(08) 38447231
(08) 38455690
Phan Dinh Phung Branch
51 – 51A, Phan Dinh Phung, Ward 17, Phu Nhuan District, HCMC
(08) 39956470
(08) 39956468
Ho Van Hue Sub-Branch
146, Ho Van Hue, Ward 9, Phu Nhuan District, HCMC
(08) 38479515
(08) 38479516
272
Annual Report 2014
Branch Network
Phan Xich Long Sub-Branch
132 -134, Phan Xich Long, Ward 2, Phu Nhuan District, HCMC
(08) 39308660
(08)39308661
Phu Nhuan Sub-Branch
177 - 177A, Phan Dang Luu, Ward 3, Phu Nhuan District, HCMC
(08) 39950798
(08) 39950799
Tan Binh District
Bay Hien Branch
1069 CMT8, Ward 7, Tan Binh District, HCMC
(08) 39707950
(08) 39707951
Cong Hoa Branch
463 – 465, Cong Hoa, Ward 15, Tan Binh District, HCMC
(08) 38105518
(08) 38102770
Le Van Sy Branch
318, Le Van Sy, Ward 1, Tan Binh District, HCMC
(08) 39916428
(08) 39916429
Tan Binh Branch
29, Ly Thuong Kiet, Ward 7, Tan Binh District, HCMC
(08) 62653500
(08) 62653501
Truong Chinh Branch
85 - 87, Xuan Hong, Ward 12, Tan Binh District, HCMC
(08) 38115422
(08) 38115432
Bau Cat Sub-Branch
253-255-257, Nguyen Hong Dao, Ward 14, Tan Binh District, HCMC
(08) 39492242
(08) 39492241
Hoang Viet Sub-Branch
72, Ut Tich, Ward 4, Tan Binh District, HCMC
(08) 39914171
(08) 39914161
Tan Binh Industrial Zone Sub-Branch 700-702, Truong Chinh, Ward 15, Tan Binh District, HCMC
(08) 38159610
(08) 38159611
Maximark Cong Hoa Sub-Branch
15-17, Cong Hoa,Ward 5 Tan Binh District, HCMC
(08) 38118681
(08) 38118682
Maximark Cong Hoa 2 Sub-Branch
110, Cong Hoa, Ward 4, Tan Binh District, HCMC
(08) 39481430
(08) 39481431
Phu Trung Sub-Branch
641, Lac Long Quan, Ward 10, Tan Binh District, HCMC
(08) 39752090
(08) 39752089
Tan Son Nhat Sub-Branch
International Arrival Terminal of Tan Son Nhat Airport, Ward 2, Tan Binh District, HCMC
(08) 35470502
(08) 35470503
Vo Thanh Trang Sub-Branch
304A, Truong Chinh, Ward 13, Tan Binh District, HCMC
(08) 38427819
(08) 38427829
Pho Quang Sub-Branch
38-40 Pho Quang, Ward 2, Tan Binh District, HCMC
(08) 39990779
(08) 39990778
Tan Phu District
Tan Phu Branch
414, Luy Ban Bich, Hoa Thanh Ward, Tan Phu District, HCMC
(08) 39735204
(08) 39735205
Tan Son Nhi Sub-Branch
360, Tan Son Nhi, Tan Son Nhi Ward, Tan Phu District, HCMC
(08) 38108717
(08) 38108718
Le Trong Tan Sub-Branch
45, Le Trong Tan, Son Ky Ward, Tan Phu District , HCMC
(08) 38165282
(08) 38165281
Nguyen Son Sub-Branch
334 – 334A, Nguyen Son, Phu Tho Hoa Ward, Tan Phu District, HCMC
(08) 39789331
(08) 39789332
Tan Huong Sub-Branch
220, Tan Huong, Tan Quy Ward, Tan Phu District, HCMC
(08) 35592918
(08) 35592917
Tay Thanh Sub-Branch
183, Tay Thanh, Tay Thanh Ward, Tan Phu District, HCMC
(08) 38143501
(08) 38143500
Thu Duc District
Thu Duc Branch
178- 180, Vo Van Ngan, Binh Tho Ward, Thu Duc District , HCMC
(08) 38968726
(08) 38968504
Binh Trieu Sub-Branch
200, National Road 13, Hiep Binh Chanh Ward, Thu Duc Thu Duc District, HCMC
(08) 37263676
(08) 37263675
Linh Xuan Sub-Branch
26-28, 1K National Road, Quarter 3, Linh Xuân Ward, Thu Duc District, HCMC
(08) 37245830
(08) 37245831
Tam Ha Sub-Branch
267A - 267B, To Ngoc Van, Linh Dong Ward, Thu Duc District, HCMC
(08) 37205676
(08) 37205680
Binh Chanh District
Binh Chanh Sub-Branch
A11/11, Hamlet 1, Binh Chanh Ward, Binh Chanh District , HCMC
(08) 54292004
(08) 54292005
Trung Son Sub-Branch
27-29-31, Trung Son Residential Area, Binh Hung Ward, Binh Chanh District, HCMC
(08) 54318727
(08) 54318726
Cu Chi District
Cu Chi Branch
863, Quarter 5, National Road 22, Cu Chi Town, Cu Chi District , HCMC
Hoc Mon District
Hoc Mon Sub-Branch
5/4, Ly Thuong Kiet, Quarter 2, Hoc Mon Town, Hoc Mon District , HCMC
Nha Be District
Phu Xuan Sub-Branch
37, Huynh Tan Phat, Quarter 4, Nha Be Town, Nha Be District, HCMC
(08) 37909140
(08) 37909141
(08) 37102930
(08) 37102931
(08) 38739699
(08) 38739698
WEST & EAST SOUTH OF VIETNAM
An Giang
An Giang Branch
9, Tran Hung Dao, My Xuyen Ward, Long Xuyen City, An Giang
(076) 3844531
(076) 3844530
Chau Doc Sub-Branch
46, Quang Trung, Chau Phu B Ward, Chau Doc Township, An Giang
(076) 3550999
(076) 3550990
Long Xuyen Sub-Branch
95, Nguyen Trai, My Long Ward, Long Xuyen City , An Giang
(076) 6253777
(076) 6253238
Binh Khanh Sub-Branch
582/30 Tran Hung Dao, Binh Khanh Ward, Long Xuyen City, An Giang
(076) 3952990
(076) 3952555
Tan Chau Sub-Branch
85 Nguyen Van Cu, Long Thanh Ward, Tan Chau Township, An Giang
(076) 3597 999
(076) 3597990
Ben Tre
Ben Tre Branch
67C1, Dong Khoi Highway, Phu Khuong Ward, Ben Tre City, Ben Tre
Ca Mau
Ca Mau Branch
3A, Hung Vuong, Ward 7, Ca Mau City, Ca Mau
Can Tho
Can Tho Branch
14 - 16B, Hoa Binh, An Cu Ward, Ninh Kieu District , Can Tho
(0710) 3824 510
(0710) 3825628
(075) 3512100
(075) 3512101
(0780) 3837327
(0780) 3837326
Ninh Kieu Sub-Branch
86B - 86C, Hung Vuong, Thoi Binh Ward, Ninh Kieu District, Can Tho
(0710) 3768768
(0710) 3768769
Thot Not Sub-Branch
487, National Road 91, Thot Not Town, Thot Not District , Can Tho
(0710) 3611999
(0710) 3611998
An Thoi Sub-Branch
49, Cach Mang Thang Tam, An Thoi Ward, Binh Thuy Distric , Can Tho
(0710) 3880998
(0710) 3880997
Xuan Khanh Sub-Branch
5/8A, 30/4 Street, Xuan Khanh Ward, Ninh Kieu District, Can Tho
(0710) 3782777
(0710) 3782158
Tay Do Sub-Branch
17 - 19, Nam Ky Khoi Nghia, Tan An Ward, Ninh Kieu District, Can Tho
(0710) 3816818
(0710) 3816817
Dong Thap
Dong Thap Branch
55, Dang Van Binh, Ward 1, Cao Lanh City, Dong Thap
(067) 3876187
(067) 3876188
Sa Dec Sub-Branch
251, Nguyen Sinh Sac, Ward 2, Sa Dec Township, Dong Thap
(067) 3653653
(067) 3775222
Long An
Long An Branch
Ben Luc Sub-Branch
www.acb.com.vn
123B, Hung Vuong, Ward 2, Tan An City, Long An
(072) 3523650
(072) 3523651
108, Nguyen Huu Tho, Ben Luc Township, Ben Luc District, Long An
(072) 3638678
(072) 3638679
273
Branch Network
Kien Giang
Kien Giang Branch
451 Nguyen Trung Truc, Vinh Lac Ward, Rach Gia City, Kien Giang
(077) 3949070
(077) 3949071
Rach Soi Sub-Branch
08, Mai Thi Hong Hanh, Rach Soi Ward, Rach Gia City, Kien Giang
(077) 6257267
(077) 6257268
Bac Lieu
Bac Lieu Branch
20 Tran Phu, Ward 3, Bac Lieu City, Bac Lieu
Tien Giang
Tien Giang Branch
139, Nam Ky Khoi Nghia, Ward 4, My Tho City, Tien Giang
(073) 3976800
(073) 3976801
My Tho Sub-Branch
377, Ap Bac, Ward 5, My Tho City, Tien Giang
(073) 3978200
(073) 3978201
Go Cong Sub-Branch
19, Nguyen Hue, Go Cong Township, Tien Giang
(073) 3514960
(073) 3514958
Cai Lay Sub-Branch
13/571B 1A International Road, Cai Lay Town, Cai Lay District, Tien Giang
(073) 3710922
(073) 3710928
Vinh Long
Vinh Long Branch
03, Hoang Thai Hieu, Ward 1, Vinh Long City, Vinh Long
Tra Vinh
Tra Vinh Branch
96 Dien Bien Phu, Ward 3, Tra Vinh City, Tra Vinh
Hau Giang
Hau Giang Branch
37-39-41, 1/5 Street, Vi Thanh City, Hau Giang
Soc Trang
Soc Trang Branch
01 Tran Hung Dao, Ward 3, Soc Trang City, Soc Trang
Binh Duong
Binh Duong Branch
305, Binh Duong Highway, Quarter 1, Chanh Nghia Ward, Thu Dau Mot City, Binh Duong
(0650) 3811720
(0650) 3811721
Lai Thieu Sub-Branch
188A, DT 745 Street, Binh Duc 1 Quarter, Lai Thieu Township, Thuan An District, Binh Duong
(0650) 3762339
(0650) 3762340
Thu Dau Mot Sub-Branch
67, Hung Vuong, Phu Cuong Ward, Thu Dau Mot City, Binh Duong
(0650) 3843666
(0650) 3843777
Song Than Industrial Park
Sub-Branch
3/31 – 4/31, Doc Lap Highway, Nhi Dong Ward, Di An Town, Thuan An District, Binh Duong
(0650) 3793400
(0650) 3793401
Di An Sub-Branch
15A/21, Binh Minh 1 Ward, Di An Town, Di An District,, Binh Duong
(0650) 3796070
(0650) 3796069
Cho Dinh Sub-Branch
4 Phu Loi, Phu Hoa Ward, Thu Dau Mot City, Binh Duong
(0650) 3877688
(0650) 3877388
Ben Cat Sub-Branch
378, 30/4 Street, My Phuoc Town, Ben Cat District, Binh Duong
(0650) 3592 999
(0650) 3594999
Binh Phuoc
Binh Phuoc Branch
Block 19 – 20, Phu Rieng Do, Tan Binh Ward, Dong Xoai Township, Binh Phuoc
Binh Long Sub-Branch
Phuoc Long Sub-Branch
(0781) 3896666
(0781) 3932015
(070) 3839999
(070) 3839998
(074) 3859077
(074) 3858677
(0711) 3876599
(0711) 3877599
(079) 3886886
(079) 3717171
(0651) 3863863
(0651) 3863864
131 Nguyen Hue, Phu Trung Ward, Binh Long Township, Binh Phuoc
(0651) 3616789
(0651) 3611111
21 DT 741 Street, Long Phuoc Ward, Phuoc Long Township, Binh Phuoc
(0651) 3713 888
(0651) 3713999
Loc Ninh Sub-Branch
272, 13 National road, Ninh Thinh Ward, Loc Ninh Town, Loc Ninh District, Binh Phuoc
(0651) 3569999
(0651) 3566787
Chon Thanh Sub-Branch
8, 13 National road, Group 2, Ward 4, Chon Thanh Town, Chon Thanh District, Binh Phuoc
(0651) 3667 678
(0651) 3667666
Dong Nai
Dong Nai Branch
134 – 136 – 138, Ha Huy Giap (the old name is National Road 1), Bien Hoa City, Dong Nai
(061) 8820 010
(061) 3948333
Bien Hoa Sub-Branch
94/467 Pham Van Thuan, Tan Mai Ward, Bien Hoa City, Dong Nai
(061) 3813 900
(061) 3813 907
Dong Khoi Sub-Branch
Block 7 – 8 /9, Dong Khoi Street, Tan Hiep Ward, Bien Hoa City, Dong Nai
(061) 8823 222
(061) 8823223
Gia Kiem Sub-Branch
10T Phuc Nhac Hamlet, Gia Tan 3 village, Thong Nhat District, Dong Nai
(061) 3867942
(061) 3867935
Ho Nai Sub-Branch
95/5 Quarter 9, Tan Bien Ward, Bien Hoa City, Dong Nai
(061) 3882480
(061) 3882641
Long Khanh Sub-Branch
11B - 12B Hung Vuong, Long Khanh Township, Dong Nai
(061) 3647909
(061) 3647908
Long Thanh Sub-Branch
09 Phuoc Hai Zone, Long Thanh Town, Long Thanh District, Dong Nai
(061) 3545001
(061) 3525355
Tan Tien Sub-Branch
360 Nguyen Ai Quoc, Tan Tien Ward, Bien Hoa City, Dong Nai
(061) 8820323
(061) 8820324
Long Binh Tan Sub-Branch
G1/8-9-10, Quarter 1, Long Binh Tan Ward, Bien Hoa City, Dong Nai
(061) 3834848
(061) 3932400
Trang Bom Sub-Branch
B17- B18 Nguyen Huu Canh, Trang Bom Town, Trang Bom City, Dong Nai
(061) 3676 088
(061) 3676 188
Tay Ninh
Tay Ninh Branch
448, 30 Thang 4 Street, Ward 3, Tay Ninh Township, Tay Ninh
(066) 6250 899
(066) 6250 890
Long Hoa Sub-Branch
53/1, Ward 1, Hoa Thanh Town, Tay Ninh Province, Tay Ninh
(066) 3648091
(066) 3648092
Trang Bang Sub-Branch
Post office of Trang Bang Industrial Zone, An Binh Hamlet, An Tinh Village, Trang Bang District,
Tay Ninh Province, Tay Ninh
(066) 3899 694
(066) 3899 690
(066) 3739 999
(066) 37 39 990
Tan Bien Sub-Branch
Post office of Tan Binh, Ward 2, Tan Bien Town, Tan Bien District., Tay Ninh
Ba Ria - Vung Tau
Vung Tau Branch
Block A3-A8, 111 Hoang Hoa Tham, Ward 2, Vung Tau City, Ba Ria - Vung Tau
(064) 3511970
(064) 3511971
Ba Ria Sub-Branch
265 Cach Mang Thang 8, Phuoc Hiep Ward, Ba Ria Township, Ba Ria - Vung Tau
(064) 3711584
(064) 3711585
Nguyen An Ninh Sub-Branch
89 Nguyen An Ninh, Ward 6, Vung Tau City, Ba Ria - Vung Tau
(064) 3563262
(064) 3563 208
Rach Dua Sub-Branch
306, 30/4 Street, Rach Dua Ward, Vung Tau City, Ba Ria - Vung Tau
(064) 3512 115
(064) 3512 116
Le Hong Phong Sub-Branch
328 Le Hong Phong, Ward 3, Vung Tau City, Ba Ria - Vung Tau
(064) 3543232
(064) 3543233
Vung Tau Commercial Center
Sub-Branch
413 - 415 Nguyen An Ninh, Ward 9, Vung Tau City , Ba Ria - Vung Tau
(064) 3597100
(064) 3597101
Long Dien Sub-Branch
Unit 5, Group 9, Long Dien District, Ba Ria - Vung Tau
(064) 367 4696
(064) 367 4697
Tan Thanh Sub-Branch
Land plot 1820, map number 10, Quang Phu Ward, Phu My Town, Tan Thanh District,
Ba Ria - Vung Tau
(064) 3924 515
(064) 392 4516
Lam Dong
Lam Dong Branch
59-61 Phan Boi Chau, Ward 1, Da Lat City, Lam Dong
(063) 3587778
(063) 3587779
Duc Trong Sub-Branch
13 - 13A Pham Van Dong, Ward 2, Duc Trong District, Lam Dong
(063) 3668878
(063) 3668879
Di Linh Sub-Branch
1 Ly Thuong Kiet, Di Linh District, Lam Dong
(063) 3778878
(063) 3778879
Lam Ha Sub-Branch
219, National Road 27, Dinh Van Town, Lam Ha District, Lam Dong
(063) 368 7898
(063) 3687899
274
Annual Report 2014
Branch Network
Bao Loc Sub-Branch
921 Tran Phu, B'lao Ward, Bao Loc City, Lam Dong
(063) 3731 188
(063) 3731 199
Da Lat Sub-Branch
81 Phan Dinh Phung, Ward 1, Da Lat City, Lam Dong
(063) 3836 379
(063) 3837 479
Binh Thuan
Phan Thiet Branch
01 Nguyen Van Cu, Duc Nghia Ward, Phan Thiet City, Binh Thuan
(062) 3722410
(062) 3722409
Lagi Sub-Branch
61 Le Loi, Phuoc Hoi Ward, Lagi Township, Binh Thuan
(062) 3845 666
(062) 3845 333
THE CENTRAL OF VIETNAM
Binh Dinh
Binh Dinh Branch
171 Tran Hung Dao, Le Loi Ward, Qui Nhon City, Binh Dinh
(056) 3814418
(056) 3814419
Khu Sau Market Sub-Branch
314-314A Nguyen Thai Hoc, Ngo May Ward, Quy Nhon City, Binh Dinh
(056) 3525366
(056) 3525368
Quy Nhon Sub-Branch
115 Le Hong Phong, Tran Phu Ward, Quy Nhon City, Binh Dinh
(056) 3821414
(056) 3821415
Bong Son Sub-Branch
196A - 196B Quang Trung, Bong Son Town, Hoai Nhon District, Binh Dinh
(056) 3961234
(056)3961569
Daklak
DakLak Branch
152-154-156, Y Jút, Thang Loi Ward, Buon Ma thuot City, Daklak
(0500) 3810198
(0500) 3810199
Krong Pak Sub-Branch
318B Giai Phong, Phuoc An Town, Krong Pak District, Daklak
(0500) 3528101
(0500) 3528102
Buon Ma Thuot Sub-Branch
238 – 240 Nguyen Tat Thanh, Tan Lap Ward, Buon Ma Thuot City, Daklak
(0500) 3985555
(0500) 3875555
Le Hong Phong Sub-Branch
60-62 Le Hong Phong, Thong Nhat Ward, Buon Ma Thuot City, Daklak
(0500) 3935555
(0500) 3982222
Buon Ho Sub-Branch
220 Hung Vuong, An Lac Ward, Buon Ho Township, Daklak
(0500) 3779977
(0500) 3770077
Quang Phu Sub-Branch
44 Hung Vuong, Quan Phu Town, Cu Mgar District, Daklak
(0500) 3534555
(0500) 3535555
Da Nang
Da Nang Branch
218 Bach Dang, Hai Chau 1 Ward, Hai Chau District, Da Nang
(0511) 3897806
(0511) 3897883
Cau Vong Sub-Branch
215 Ong Ich Khiem, Hai Chau 2 Ward, Hai Chau District, Da Nang
(0511) 3751603
(0511) 3751604
Hai Chau Sub-branch
307 Phan Chau Trinh, Phuoc Ninh Ward, Hai Chau District, Da Nang
(0511) 3819789
(0511) 3819790
Hoa Cuong Sub-Branch
296 Nui Thanh, Hoa Cuong Ward, Hai Chau District , Da Nang
(0511) 3634222
(0511) 3634223
Hoang Dieu Sub-Branch
388-390 Hoang Dieu, Binh Thuan Ward, Hai Chau District, Da Nang
(0511) 3574222
(0511) 3574822
Ly Thai To Sub-Branch
128 Ly Thai To, Thac Gian Ward, Thanh Khe District, Da Nang
(0511) 3651888
(0511) 3651889
Son Tra Sub-Branch
745 Ngo Quyen, An Hai Bac Ward, Son Tra District, Da Nang
(0511) 3922999
(0511) 3922998
Thanh Khe Sub-Branch
276 Dien Bien Phu, Chinh Gian Ward, Thanh Khe District, Da Nang
(0511) 3648999
(0511) 3648666
Thuan Phuoc Sub-Branch
254 Dong Da, Thuan Phuoc Ward, Hai Chau District, Da Nang
(0511) 3889555
(0511) 3889556
Hoa Khanh Sub-Branch
888 Ton Duc Thang, Hoa Khanh Bac Ward, Lien Chieu District, Da Nang
(0511) 3774888
(0511) 3774889
Hue
Hue Branch
1 Tran Hung Dao, Phu Hoa Ward, Hue City, Thua Thien Hue
(054) 3571175
(054) 3571234
Phu Hoi Sub-Branch
30 Hung Vuong, Phu Hoi Ward, Hue City, Thua Thien Hue
(054) 3936639
(054) 3936937
An Cuu Sub-Branch
100 Hung Vuong, Phu Nhuan Ward, Hue City, Thua Thien Hue
(054) 3883699
(054) 3883696
Quang Ngai
Quang Ngai Branch
485 Quang Trung, Nguyen Nghiem Ward, Quang Ngai City, Quang Ngai
Phu Yen
Phu Yen Branch
206A Tran Hung Dao, Ward 4, Tuy Hoa City, Phu Yen
Khanh Hoa
Khanh Hoa Branch
80 Quang Trung, Loc Tho Ward, Nha Trang City, Khanh Hoa
(058) 3525999
(058) 3525888
Cho Dam Sub-Branch
33 Le Loi, Xuong Huan Ward, Nha Trang City, Khanh Hoa
(058) 3819570
(058) 3819571
Phuong Son Sub-Branch
296 Thong Nhat, Phuong Son Ward, Nha Trang City, Khanh Hoa
(058) 3562999
(058) 3562888
Vinh Phuoc Sub-Branch
124B-28A Hai Thang Tu, Vinh Phuoc Ward, Nha Trang City , Khanh Hoa
(058) 3543999
(058) 3543888
Cam Ranh Sub-Branch
152 22/8 Street, Cam Linh Ward, Cam Ranh City, Khanh Hoa
(058) 3956 868
(058) 3950777
(055) 3721779
(055) 3721188
(057) 3818456
(057) 3838123
Ninh Hoa Sub-Branch
03 Nguyen Thi Ngoc Oanh, Ninh Hiep Ward, Ninh Hoa District, Khanh Hoa
(058) 3846 888
(058) 3846777
Phuoc Long Sub-Branch
386-388 Le Hong Phong, Phuoc Long Ward, Nha Trang City, Khanh Hoa
(058) 3883999
(058) 3886888
Gia Lai
Gia Lai Branch
61 Tran Phu ( extended), Tay Son Ward, Pleiku City, Gia Lai
Kon Tum
Kon Tum Branch
94 Tran Phu, Thang Loi Ward, Kon Tum City, Kon Tum
Ninh Thuan
Phan Rang Branch
495 – 497 Thong Nhat, Kinh Dinh Ward, Phan Rang City, Ninh Thuan
Quang Nam
Hoi An Branch
570 Cua Dai, Son Phong Ward, Hoi An City, Quang Nam
(0510) 3914633
(0510) 3914634
Tam Ky Sub-Branch
556 Phan Chu Trinh, Tam Ky City, Quang Nam
(0510) 3821128
(0510) 3821129
Hoi An Ancient Town Sub-Branch
66 Tran Hung Dao, Hoi An City , Quang Nam
(0510) 3915979
(0510) 3915980
THE NORTH OF VIETNAM
Hanoi
Chua Ha Branch
44/42 Nguyen Phong Sac (extended), Dich Vong Hau Ward, Cau Giay District, Hanoi
(04) 37686638
(04) 37686639
(059) 3720678
(059) 3720789
(060) 3854999
(060) 3854888
(068) 3921999
(068) 3837888
Cua Nam Branch
48 Phung Hung, Hang Bong Ward, Hoan Kiem District, Hanoi
(04) 3568 3015
(04) 3568 3016
Hanoi Branch
184-186 Ba Trieu, Nguyen Du Ward, Hai Ba Trung District, Hanoi
(04) 39433508
(04) 39439283
Thang Long Branch
10 Phan Chu Trinh, Hoan Kiem District, Phan Chu Trinh Ward , Hanoi
(04) 39332828
(04) 39334722
Au Co Sub-Branch
49 Au Co, Quang An Ward, Tay Ho District, Hanoi
(04) 37153986
(04) 37153982
Bat Dan Sub-Branch
29 Duong Thanh, Cua Dong Ward, Hoan Kiem District , Hanoi
(04) 39233629
(04) 39233630
www.acb.com.vn
275
Branch Network
Bach Mai Sub-Branch
329 Bach Mai, Bach Mai Ward, Hai Ba Trung District , Hanoi
(04) 36276757
(04) 36276758
Cua Bac Sub-Branch
8 Cua Bac, Truc Bach Ward, Ba Dinh District, Hanoi
(04) 37153476
(04) 37153470
Den Lu Sub-Branch
70 Plot7 Den Lu 2, Hoang Van Thu Ward, Hoang Mai District, Hanoi
(04) 36343036
(04) 36343037
Dinh Cong Sub-Branch
Plot 25 (CT9), Dinh Cong Commercial Center, Hoang Mai District, Hanoi
(04) 36404635
(04) 36404636
Dong Xuan Sub-Branch
1,2,3,4 Floor, No. 25 Hang Luoc, Hang Ma Ward, Hoan Kien District, Hanoi
(04) 39274800
(04) 39274801
Dong Anh Sub-Branch
Dan Di Hamlet, Uy No Village, Dong Anh District, Hanoi
(04) 39656030
(04) 39656040
Duc Giang Sub-Branch
913 Ngo Gia Tu, Duc Giang Ward, Long Bien District, Hanoi
(04) 36525983
(04) 36525982
Giang Van Minh Sub-Branch
2 Floor, No, 142 Doi Can, Doi Can Ward, Ba Dinh District, Hanoi
(04) 38489525
(04) 38489529
Giang Vo Sub-Branch
211 Giang Vo, Cat Linh Ward, Dong Da District, Hanoi
(04) 35123399
(04) 35123443
Ha Dong Sub-Branch
13 Quang Trung, Nguyen Trai Ward, Ha Dong District, Hanoi
(04) 33552373
(04) 33552371
Hoang Cau Sub-Branch
6 - 7 -8 Line B, Hoang Cau, O Cho Dua Ward, Dong Da District, Hanoi
(04) 35379736
(04) 35379739
Hoang Hoa Tham Sub-Branch
671 Hoang Hoa Tham, Vinh Phuc Ward, Ba Dinh District, Hanoi
(04) 37616489
(04) 37616491
Hoang Quoc Viet Sub-Branch
365-367 Hoang Quoc Viet, Nghia Tan Ward, Cau Giay District, Hanoi
(04) 37915626
(04) 37915630
Ho Tung Mau Sub-Branch
1 Le Duc Tho, Mai Dich Ward, Cau Giay District, Hanoi
(04) 37958775
(04) 37958770
Huynh Thuc Khang Sub-Branch
29 Huynh Thuc Khang, Lang Ha Ward, Dong Da District, Hanoi
(04) 37738041
(04) 37738047
Kham Thien Sub-Branch
2 Alley of Kham Thien market, Kham Thien Ward, Dong Da District, Hanoi
(04) 35160690
(04) 35160685
Kim Dong Sub-Branch
11A Kim Dong, Giap Bat Ward, Hoang Mai District, Hanoi
(04) 36649282
(04) 36649267
Kim Lien Sub-Branch
Level 1, 7 Chua Boc, Quang Trung Ward, Dong Da District, Hanoi
(04) 35746688
(04) 35745372
Lang Thuong Sub-Branch
106 Nguyen Chi Thanh, Lang Thuong Ward, Dong Da District
(old address: Group 20, Lang Thuong Ward, Dong Da District), Hanoi
(04) 32595075
(04) 32595080
Lieu Giai Sub-Branch
30 Lieu Giai, Cong Vi Ward, Ba Dinh District, Hanoi
(04) 37674318
(04) 37674316
Linh Dam Sub-Branch
Level 1, CC2 Building, Linh Dam Residential Zone, Dai Kim Ward, Hoang Mai District, Hanoi
(04) 35400236
(04) 35400230
Loc Duc Sub-Branch
166 Lo Duc, Dong Mac Ward, Hai Ba Trung District, Hanoi
(04) 39728580
(04) 39728579
Minh Khai Sub-Branch
249 Minh Khai, Vinh Tuy Ward, Hai Ba Trung District, Group 47b, Hanoi
(04) 36368970
(04) 36368972
My Dinh Sub-Branch
Level 1 The Manor Apartment, My Dinh new Residential Zone, Tu Liem District, Hanoi
(04) 37940196
(04) 37940206
Nam Ha Noi Sub-Branch
321 Truong Chinh, Group 49, Khuong Trung Ward, Thanh Xuan District, Hanoi
(04) 35683015
(04) 35683016
Ngoc Ha Sub-Branch
94 Ngoc Ha, Doi Can Ward, Ba Dinh District, Hanoi
(04) 38489484
(04) 38489483
Ngoc Lam Sub-Branch
398 Nguyen Van Cu, Bo De Ward, Long Bien District, Hanoi
(04) 36505688
(04) 36500690
Nguyen Huu Huan Sub-Branch
90A Nguyen Huu Huan, Ly Thai To Ward, Hoan Kiem District, Hanoi
(04) 39352002
(04) 39352003
Nguyen Khanh Toan Sub-Branch
103-203-303-403-503 B1-DN16,KDTM Nghia Do-Dich Vong, Quan Hoa Ward, Cau Giay
District, Hanoi
(04) 3767 8292
(04) 3767 8295
Nguyen Thi Dinh Sub-Branch
126 can ho, House A1, Nhan Chinh Ward, Thanh Xuan District, Hanoi
(04) 35558822
(04) 35558823
Noi Bai Sub-Branch
Block C, Level 1, T1 Terminal, Noi Bai International Airport i, Hanoi
(04) 35844375
(04) 35844377
O Cho Dua Sub-Branch
113 De La Thanh, Nam Dong Ward, Dong Da District , Hanoi
(04) 35739116
(04) 35739121
Quan Su Sub-Branch
50 Ly Thuong Kiet, Tran Hung Dao Ward, Hoan Kiem District, Hanoi
(04) 39393963
(04) 39393960
Tay Ho Sub-Branch
1 floor, Hancom Tower, Lane No.39, 603 Lac Long Quan, Xuan La Ward, Tay Ho District , Hanoi
(04) 37100405
(04) 37100361
Thanh Cong Sub-Branch
24 Thanh Cong, Thanh Cong Ward, Ba Dinh District, Hanoi
(04) 37727818
(04) 37727819
Thanh Nhan Sub-Branch
499 Tran Khat Chan, Thanh Nhan Ward, Hai Ba Trung District, Hanoi
(04) 36228540
(04) 36228546
Thanh Tri Sub-Branch
Km 10 – 300 market area, Van Dien Town, Thanh Tri District, Hanoi
(04) 36876079
(04) 36815393
Thanh Xuan Sub-Branch
104 Khuat Duy Tien, Nhan Chinh Ward, Thanh Xuan District, Hanoi
(04) 35574261
(04) 35574263
Thuy Khue Sub-Branch
115 Thuy Khue, Thuy Khue Ward, Tay Ho District, Hanoi
(04) 37282435
(04) 37282436
Ton Duc Thang Sub-Branch
32B-34 Ton Duc Thang, Cat Linh Ward, Dong Da District, Hanoi
(04) 62757048
(04) 62757046
Tran Dai Nghia Sub-Branch
161 To 1, Lane Ngo Cot Co, Dong Tam Ward, Hai Ba Trung District, Hanoi
(04) 3628 4182
(04) 3628 4182
Tran Duy Hung Sub-Branch
216 Tran Duy Hung, Trung Hoa Ward, Cau Giay District, Hanoi
(04) 37832802
(04) 37832803
Tran Quoc Hoan Sub-Branch
38 Tran Quoc Hoan, Dich Vong Hau Ward, Cau Giay District, Hanoi
(04) 3793 8010
(04) 3793 8011
Tran Quoc Toan Sub-Branch
95-97 Tran Quoc Toan, Tran Hung Dao Ward, Hoan Kiem District, Hanoi
(04) 39429236
(04) 39429235
Trang Thi Sub-Branch
10B, Trang Thi Ward, Hoan Kiem Phố Tràng Thi, Q. Hoàn Kiếm District, Hanoi
(04) 39288972
(04) 39288971
Trung Van Sub-Branch
206 Nguyen Trai, Trung Van Village, Tu Liem District, Hanoi
(04) 35544479
(04) 35544472
Tuong Mai Sub-Branch
1K26 Truong Dinh, Tuong Mai Ward, Hoang Mai District, Hanoi
(04) 36628671
(04) 36628664
Van Quan Sub-Branch
A4 TT10, Van Quan Residential Zone, Van Quan Ward, Ha Dong District, Hanoi
(04) 33120538
(04) 33120539
Xuan Thuy Sub-Branch
183 Xuan Thuy, Quan Hoa Ward, Cau Giay District, Hanoi
(04) 37958822
(04) 37958823
Bac Giang
Bac Giang Branch
174 Ly Thai To, Tran Phu Ward, Bac Giang City, Bac Giang
Bac Ninh
Bac Ninh Branch
242 Tran Phu, Tu Son Town, Tu Son District, Bac Ninh
(0241) 3760139
(0241) 3760142
Kinh Bac Sub-Branch
202 Ngo Gia Tu, Suoi Hoa Ward, Bac Ninh City, Bac Ninh
(0241) 3875329
(0241) 3875327
Tien Du Sub-Branch
54 Ly Thuong Kiet, Lim Town, Tien Du District, Bac Ninh
(0241) 3711516
(0241) 3711513
Hai Duong
Hai Duong Branch
(0240) 3 844886
(0240) 3 844844
76 -78 Tran Hung Dao, Hai Duong City, Hai Duong
(0320) 3836788
(0320) 3836766
Le Thanh Nghi Sub-Branch
61 Thong Nhat, Le Thanh Nghi Ward, Hai Duong City, Hai Duong
(0320) 3836345
(0320) 3836678
Hai Phong
Duyen Hai Branch
15 Hoang Dieu, Hong Bang District, Hai Phong
(031) 3823388
(031) 3823383
Hai Phong Branch
69 Dien Bien Phu, Hong Bang District, Hai Phong
(031) 3823392
(031) 3823267
Thuy Nguyen Branch
6-8 Da Nang Street, Nui Deo Town, Thuy Nguyen District, Hai Phong
(031) 3642888
(031) 3642999
Lach Tray Sub-Branch
388 Lach Tray, Ngo Quyen District, Hai Phong
(031) 3833 668
(031) 3833 555
276
Annual Report 2014
Branch Network
Ngo Quyen Sub-Branch
15 Tran Phu, Luong Khanh Thien Ward, Ngo Quyen District, Hai Phong
(031) 3757988
(031) 3757900
Quan Toan Sub-Branch
Km number 9, National road 5, Quan Toan Ward, Hong Bang District, Hai Phong
(031) 3748598
(031) 3748597
TD Plaza Sub-Branch
Level 1, TB Business Center Building, TB Plaza, Le Hong Phong Street, N
go Quyen District, Hai Phong
(031) 3629798
(031) 3629677
Thai Phien Sub-Branch
311B Da Nang, Cau Tre Ward, Ngo Quyen District, Hai Phong
(031) 3568899
(031) 3568566
To Hieu Sub-Branch
150 To Hieu, Le Chan District, Hai Phong
(031) 3611888
(031) 3611999
Tran Nguyen Han Sub-Branch
71 Tran Nguyen Han, Tran Nguyen Han Ward, Le Chan District, Hai Phong
(031) 3719688
(031) 3719690
Hung Yen
Hung Yen Branch
Ban Yen Nhan Town, My Hao District, Hung Yen
(0321) 3942461
(0321) 3942589
Van Lam Sub-Branch
New Town, Nhu Quynh Town, Van Lam District, Hung Yen
(0321) 3785789
(0321) 3785790
Pho Hien Sub-Branch
279 Dien Bien Street, Quang Trung Ward, Hung Yen City, Hung Yen
(0321) 3869888
(0321) 3553111
Van Giang Sub-Branch
137, 179 Street, Van Giang District, Hung Yen
(0321) 3932 886
(0321) 3932866
Thanh Hoa
Thanh Hoa Branch
180 Tong Duy Tan, Lam Son Ward, Thanh Hoa City, Thanh Hoa
Bim Son Sub-Branch
47 Nguyen Hue, Ngoc Trao Ward, Bim Son Township, Thanh Hoa City, Thanh Hoa
Phu Son Sub-Branch
Phu Tho Business Center, Le Loi Boulevard, Phu Son Ward, Thanh Hoa City, Thanh Hoa
(037) 3940222
(037) 3942898
Ba Trieu Sub-Branch
658 Ba Trieu, Dien Bien Ward, Thanh Hoa City, Thanh Hoa
(037) 666 0089
(037) 666 0098
PGD Quang Trung
432 Quang Trung, phuờng Ðông Vệ, TP Thanh Hóa, Thanh Hóa, Thanh Hoa
(037) 666 0085
(037) 666 0058
Vinh Phuc
Vinh Phuc Branch
251 Me Linh, Lien Bao Ward, Vinh Yen City, Thanh Hoa
Thai Nguyen
Thai Nguyen Branch
70 Hoang Van Thu, Hoang Van Thu Ward, Thai Nguyen City, Thanh Hoa
Nam Dinh
Nam Dinh Branch
67 Le Hong Phong, Nguyen Du Ward, Nam Dinh City, Thanh Hoa
(0350) 3527 666
(0350) 3527567
(0350) 3525666
(0350) 3525568
Thanh Nam Sub-Branch
83 Thanh Chung, Cua Bac Ward, Nam Dinh City, Thanh Hoa
Nghe An
Nghe An Branch
(037) 3888899
(037) 3888889
(037). 377 6989 (037).377 2788
(0211) 3728668
(0211) 3728998
(0280) 3653868
(0280) 3653688
37A Quang Trung, Quang Trung Ward, Vinh City, Nghe An
(038) 3556979
(038) 3556989
Cho Vinh Sub-Branch
39 Hong Son, Hong Son Ward, Vinh City, Nghe An
(038) 8686386
(038) 8686486
Quan Bau Sub-Branch
154 Nguyen Trai, Ha Huy Tap Ward, Vinh City, Nghe An
(038) 8605568
(038) 8606689
Nguyen Phong Sac Sub-Branch
157B Nguyen Phong Sac, Hung Dung Ward, Vinh City, Nghe An
(038) 3535688
(038) 3535689
Thai Hoa Sub-Branch
265 Tran Hung Dao, Hoa Hieu Ward, Thai Hoa Township, Nghe An
(038) 3810683
(038) 3810688
Dien Chau Sub-Branch
Block 4, Dien Chau Town, Dien Chau District, Nghe An
(038) 3670 777
(038) 3622 227
Quang Binh
Quang Binh Branch
257 Tran Hung Dao, Dong Hoi City, Quang Binh
Ha Tinh
Ha Tinh Branch
52 Phan Dinh Phung, Nam Ha Ward, Ha Tinh City, Ha Tinh
(039) 3579777
(039) 3579779
Hong Linh Sub-Branch
02 Tran Phu, Block 4, Bac Hong Ward, Hong Linh Township, Ha Tinh
(039) 3577666
(039) 3577111
Quang Ninh
Quang Ninh Branch
747-749 Le Thanh Tong, Bach Dang Ward, Ha Long City, Quang Ninh
Cam Pha Sub-Branch
Bai Chay Sub-Branch
(052) 3816222
(052) 3818686
(033) 3818282/
(033) 3818299
(033) 3818881
307 Tran Phu, Cam Pha Township, Quang Ninh
(033) 3939626
(033) 3939226
416 Street Ha Long, Bai Chay Ward, Ha Long City, Quang Ninh, Quang Ninh
(033) 3815969
(033) 3815968
Mong Cai Sub-Branch
44B Hung Vuong, Mong Cai City, Quang Ninh
(033) 3789388
(033) 3789389
Cot 8 - Hong Ha Sub-Branch
661 Nguyen Van Cu, Hong Ha Ward , Ha Long City, Quang Ninh
(033) 3618661
(033) 3618660
Uong Bi Sub-Branch
63 Tran Nhan Tong, Yen Thanh Ward, Uong Bi City, Quang Ninh
(033) 3567969
(033) 3567869
Ha Nam
Ha Nam Branch
54 Bien Hoa, Minh Khai Ward, Phu Ly City, Ha Nam Province, Ha Nam
ACB-WESTERN UNION MONEY TRANSFER CENTER
Floor 4, 331 Le Dai Hanh, 13 Ward, District 11, HCM City
ACB BANKCARD CENTER
27B Nguyen Dinh Chieu,Da Kao Ward, District 1, HCM City
ATM CENTER
90 - 92 Ngo Gia Tu, 9 Ward, District 10, HCM City
ACB SUBSIDIARIES
ACB ASSET MANAGEMENT COMPANY (ACBA)
444 Nguyen Thi Minh Khai, District 3, HCM City
ACB SECURITIES COMPANY (ACBS) 107N Truong Dinh, 6 Ward, District 3, HCM City
ACB LEASING COMPANY (ACBL)
131 Chau Van Liem, 16 Ward, District 5, HCM City
ACB CAPITAL COMPANY (ACBC)
Floor 1, 45 Vo Thi Sau, District 1, HCM City
www.acb.com.vn
(0351) 3848 999 (0351) 3848666)
(08) 38356605
(08) 38324271
(08) 38222022
(08) 38220392
(08) 35140494
(08) 35140495
(08) 38328988
(08) 38328987
(08) 5404 3054
(08) 5404 3085
(08) 62905966
(08) 62905960
(08) 62905989
(08) 62905987
277
Branch Network
278
Annual Report 2014
Branch Network
www.acb.com.vn
279
MOST IMPROVED RETAIL BANKING
IN ASIA PACIFIC 2015
The Asian Banker
THE VIETNAM OUTSTANDING BANKING AWARDS 2014
International Data Group (IDG) In Collaboration With The
Vietnam Banks Association (VNBA)
VIETNAM’S FAVORITE E-BANK AWARD
IN THE MY E-BANK AWARDS 2014
VnExpress
THE STRAIGHT THROUGH PROCESSING AWARD
JP Morgan Chase
TOP 20 BANKS IN TERMS OF IMPECCABLE SERVICE
VOTED BY CUSTOMERS FOR ACB’S UTILITY
ALLOWING CUSTOMERS TO VERIFY EXPORT
DOCUMENTS ON ACB ONLINE
The Vietnam Standards And Consumer Association,
Nguoi Tieu Dung Newspaper

ANNU AL REP OR T 2014

Transcription

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