Annual Report of 2010

Transcription

No. 8 Le Thai To, Hoan Kiem District, Ha Noi
Tel: 04.39288869
Customer Service: 04.39288880 / 1900545415
www.vpb.com.vn
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Vietnam Prosperity Bank
BOLD TRANSFORMATION
TO success
ANNUAL REPORT 2010
Annual Report 2010
63
64
Table Of Contents
68 Message from VPBank's Chairman - Mr. Ngo Chi Dzung
70 Message from VPBank's Chief Executive officer - Mr. Nguyen Hung
72 VPBank at a Glance
77 Board of Directors' Report
79 Board of Management's Report
89 Financial Statements
101 Subsidiaries
103 Our Organization
111 Shareholder's Information
119 VPBank with Community
121 Network Development
Annual Report 2010
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BOLD TRANSFORMATION
To Success
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Annual Report 2010
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Message from VPBank's Chairman Mr. Ngo Chi DZung
Dear Clients and Shareholders,
On behalf of VPBank’s Board of Directors, I would
like to express our sincere thanks to Shareholders
and Clients for your support over the last year.
The year 2010 has passed with challenges and
fluctuations in the country’s overall economy in
general and with businesses in particular. VPBank is
not an exception but we have managed to overcome
these challenges successfully. VPBank’s notable
features in 2010 are the organizational stability, the
overachievement of profit targets and the change
of the bank’s image. Yet, to develop further from the
second –tier to the number one retail bank in Vietnam
as well as among top five jointstock banks in Vietnam
by 2014, VPBank needs to choose our own path.
Bold transformation for success or continuous
development as it is? That’s the question that the
Board of Directors and Board of Management have
pondered, and finally arrived at a solution after
working with strategic consulting partners.
But where to start transformation?
A new vision with new ambitious goals and a new
brand image that is professional, dedicated, simple,
differentiated are the very first changes. Subsequent
changes would be the introduction of new sales skills,
new products and services, new style transaction
points, new service model, etc, which will take place
in the near future.
To achieve these ambitious goals, VPBank sets its
development mission and philosophy as follows: top
priority placed on customers’ benefits; attention paid to
employees’ and shareholders’ benefits; and effective
contributions made to community development.
► To employees: VPBank always pays great
attention to the work - life balance of employees.
VPBank ensures stable and highly competitive
salary packages as compared to its competitors
in the finance and banking industry. Employees
are regularly trained to improve their professional
skills and enjoy freedom to exercise their own
political and cultural rights.
► To community: VPBank is committed to fulfilling
its financial obligations to the National Budget;
and involving regularly in social and charitable
activities to share burden with the community.
Ladies and gentlemen,
In 2010, with great efforts made by all staff of the
bank, VPBank overcame most of the difficulties
and challenges in the market and achieved positive
results by the end of the year: VPBank’s consolidated
profit before tax as of December 31, 2010 was VND
663 billion or 102% of the 2010 target.
We anticipate that 2011 will continue to be a difficult
year for the finance and banking industry. For
VPBank, this will also be a very important year with a
lot of transformation activities that help turn VPBank
into one of the leading retail banks in Vietnam.
Driven by the staff’s determination and effort, we
strongly believe that we will meet the expectation of
our Shareholders and Clients.
Lastly, I would like to wish all good health,
happiness and success in your careers, and expect
your continuous support to VPBank during our
development.
► To customers: VPBank is committed to maximizing
customers’ benefits by offering a wide range of
services and products at competitive prices.
► To shareholders: VPBank adopts a policy of
increasing stock value and retaining high annual
dividend payout.
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Ngo Chi Dzung
Chairman
MR. NGO CHI DZUNG
Annual Report 2010
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Message from VPBank's Chief Executive OFFICER Mr. Nguyen Hung
Dear Clients, Partners and Shareholders,
Although Vietnam made slow but steady recovery
from the global crisis in 2010, its economy remained
unstable. Amid such unfavorable business
environment, VPBank managed to accomplish
aggressive growth and significant achievements in
2010. Specifically, VPBank surpassed annual profit
targets with a consolidated profit of VND663 billion,
or 102% of the plan. Total assets are valued at
VND59,807 billion, increased by VND32,264 billion
or 117% against that of last year. VPBank also
maintained security and stability, while achieving
substantial growth; liquidity was secured while
the bank's financial strength and operating size
increased significantly.
The year 2010 also saw notable changes in VPBank:
► A new brand image;
► Increase in chartered capital to VND 4,000 billion;
► Successful issuance of bonds to diversify types of
mobilized funds;
► Improved service quality and professionalism;
► Network coverage expansion with focus in
developed areas.
In 2011, priority will be given to the following plans:
(1)
To enhance productivity and efficiency of transaction points;
(2)
To expand customer base;
(3)
To restructure and fully strengthen the management mechanism;
(4)
To build solid foundation to accelerate development strategy in the subsequent years.
In 2010, VPBank signed an agreement with McKinsey,
one of the world’s leading strategic consulting companies
to restructure the bank comprehensively, so as to enhance
the bank’s position, strength and competitiveness in the
market.
With the above-mentioned plans and ambitious goals,
we strongly believe that the solidarity and devotion of
our staff, as well as the support from our clients and
shareholders will be key drivers to help us successfully
fulfill the plans and to develop VPBank into one of the
leading retail commercial banks in Vietnam.
We hope that our Clients, Partners and Shareholders
will join VPBank in the journey ahead.
Thank you.
However, dissatisfied with these achievements and
success, we set higher targets for the year 2011:
total assets valued at VND80,000 billion; deposit
from customers at VND36,500 billion, lending
balances at VND30,400 billion, and profit before tax
at VND1,040 billion.
Nguyen Hung
CEO
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MR. NGUYEN HUNG
Annual Report 2010
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VPBANK AT A GLANCE
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VPBank AT A GLANCE
Vision
To be the leading retail bank in Vietnam by 2014 and
top five commercial bank group in Vietnam.
Mission
VPBank sets its development mission as follows:
top priority placed on customers’ benefits; attention
paid to employees’ and shareholders’ benefits;
and effective contributions made to community
development.
► To customers: VPBank is committed to maximizing
customers’ benefits by offering a wide range
of comprehensive services and products at
competitive prices.
► To shareholders: VPBank adopts a policy of
increasing stock value and retaining high annual
dividend payout.
► To employees: VPBank always pays great
attention to work life balance of the employees.
VPBank ensures stable and highly competitive
salary packages as compared to its competitors
in finance and banking industry. Employees are
regularly trained to improve their professional
skills and enjoy freedom to exercise their own
political and cultural rights.
► To community: VPBank is committed to fulfilling
its financial obligations to the National Budget;
and continuous involvement in social activities
and charity aimed at sharing burden with the
community.
Core values
► Professionalism: applying knowledge and
experience, together with professional working
style, to provide customers with modern, reliable
and appropriate banking products/services to
fulfill all their needs.
► Commitment: Enthusiastically consulting, guiding
and responding to customers’ inquiries to help
them understand VPBank’s products and services
clearly.
► Differentiation: always searching for ideas to
make a difference, offering first class services/
products with outstanding features and a variety
of utilities to customers.
► Simplicity: focusing on improving VPBank’s service
systems with simple, easily understood and
convenient procedures, applying modern technology
to serve customers quickly and effectively.
Annual Report 2010
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VPBank AT A GLANCE
Milestones
In 2009
History
► VPBank and Vietnam Prudential Corp signed a
cooperation agreement. Under this agreement,
VPBank became the official agency of Vietnam
Prudential Corp to deliver insurance packages to
consumers.
► VPBank launched the Golf preferential program to
VPBank MasterCard Platinum holders by signing
service agreements with OAAG Corporation
(Singapore).
► VPBank launched its Internet Banking service.
Vietnam Prosperity Joint Stock Commercial Bank
(transaction name: VPBank), previously named the
Vietnam Joint Stock Commercial Bank for Private
Enterprises, was founded in accordance with the
License # 0042/NH-GP dated August 12th, 1993 issued
by the State Bank of Vietnam, and License # 1535/QDUB dated September 4th, 1993 issued by the People’s
Committee of Hanoi City. The Bank has been officially
in operation since September 10th, 1993.
Other events
In 2006
► VPBank relocated its headquarters to: 8, Le Thai
To, Hoan Kiem, Hanoi. Located in the center of
the capital, the new headquarters serve as both a
modern image and a firm foundation for VPBank’s
long term development.
► VPBank and OCBC (Singapore) signed a
strategic cooperation agreement. Under this
agreement, OCBC officially became the biggest
strategic shareholder of VPBank.
► VPBank signed a purchase contract
with
Temenos (Switzerland) for the Core Banking
system software (Core Banking – T24), which is
the best technology foundation to help VPBank
develop high quality products/services for
customers.
► VPBank set up two subsidiaries – Debt and
Assets Management (VPBank AMC) and VPBank
Securities Company.
In 2007
► VPBank introduced its VPBank Platinum
MasterCard – the first built in chip card in Vietnam.
In 2008
► VPBank was endorsed to increase its chartered
capital to VND2,117 billion by the State Bank of
Vietnam; and to raise OCBC’s shareholding ratio
to 15%.
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In 2010
► VPBank signed a comprehensive cooperation
agreement with Eurowindow Holding.
► VPBank and Oceanbank together financed
Vinalines to purchase heavy-loaded ships.
► VPBank signed comprehensive cooperation
agreements with BIDV.
► VPBank obtained the State Bank’s approval
to change its name from “Vietnam Joint Stock
Commercial Bank for Private Enterprises” to
“Vietnam Prosperity Joint Stock Commercial
Bank”. With that name change, VPBank also
launched its new logo and brand identity. Under
such changes, VPBank officially entered a new
stage of development with new orientations
corresponding to prevailing economic and social
situations.
► VPBank inaugurated a new branch in Vung
Tau city.
► VPBank inaugurated a new branch in Binh
Duong town.
► VPBank increased its chartered capital to VND
4,000 billion.
► The number of transaction offices in the entire
network reached a total of 150.
VPBank AT A GLANCE
Development history
1. Key services
► Mobilize short-term, mid-term and long-term
capital from all entities in economic sectors
and residents with term and current deposits in
Vietnam dong;
► Be trusted with capital from domestic
organizations for investment and development;
► Borrow capital from the State Bank and other
credit organizations;
► Grant short-term, mid-term and long-term loans
to organizations and individuals depending on
purposes and capabilities of capital resources;
► Discount on bills, bonds and valuable certificates;
►Contribute capital, establish joint venture and
purchase shares in compliance with the law;
► Function as a payment service provider between
customers;
►Conduct foreign currency exchange, gold/
silver trade and international payment, mobilize
different types of capital from overseas and
other banking services in foreign relationship
authorized by the State Bank;
► Provide brokerage and consulting services for
securities investment, custody, enterprise finance
and underwriting guarantee;
► Provide services on investment, debt and assets
management.
Annual Report 2010
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VPBank AT A GLANCE
2. Key business performance
Key figures
Unit: VND ’billion
Items
2006
2007
2008
2009
2010
10,111
18,137
18,648
27,543
59,807
Deposit
9,056
15,448
15,609
24,444
48,719
Outstanding loan
5,006
13,323
12,986
15,813
25,324
0.41%
0.49%
3.41%
1.63%
1.20%
156.8
313.5
198.7
382.6
663.1
Chartered capital
750
2,000
2,117
2,117
4,000
Return on Assets
1.93%
1.80%
0.80%
1.30%
1.15%
22.59%
17.63%
6.70%
13.90%
22.65%
Total assets
NPL (%)
Consolidated profit before tax
Return on Equity
TOTAL ASSETS (VND ‘billion)
DEPOSIT (VND ‘billion)
60,000
59,807
50,000
50,000
48,719
45,000
40,000
35,000
40,000
30,000
30,000
25,000
20,000
18,137
10,000
0
15,000
18,648
10,000
10,111
2006
5,000
2007
2008
24,444
20,000
27,543
2009
2010
OUTSTANDING LOAN (VND ‘billion)
0
15,448
15,609
2007
2008
9,056
2006
2009
2010
PROFIT BEFORE TAX (VND ‘billion)
30,000
700
25,000
25,324
663.1
600
500
20,000
400
15,000
13,323
10,000
5,000
0
382.6
15,813
300
313.5
12,986
200
100
5,006
2006
2007
2008
2009
2010
0
198.7
156.8
2006
2007
2008
2009
Development orientation
To be the leading retail bank in Vietnam by 2014 and top five commercial bank group in Vietnam.
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2010
BOARD OF
Directors' report
Annual Report 2010
77
Board Of Directors' report
Outstanding results
Vietnam's economy in 2010, while on the recovering path, remained unstable. Various internal issues of the
economy could not be resolved any time soon. The world economy was undergoing complex changes and
fluctuations, which presented many challenges to the Vietnam macro-economy policies. Resolving these
challenges that emerged within the economy structure would take considerable time. As such, the biggest risks
for the banking industry in 2010 were from the policy changes, interest risk and exchange rate risk.
Although facing such a difficult situation, VPBank had the advantage of consistently gaining support and trust from
its shareholders and customers. At the same time, the Board of Directors and Board of Management continuously
monitored the banking market activities, so as to ensure that right and prompt decisions and business strategies
were being made, on various aspects such as interest rate, credit, investment, infrastructure, resources, etc. In
2010, VPBank officially announced its name change to “Vietnam Prosperity Bank” and kicked off its transformation
program. As a result, VPBank was able to achieve its targets for the year 2010 with satisfactory results. The Bank’s
brand name has become increasingly popular.
Performance against the plan and significant changes in the year
In 2010, with the concerted effort made by all staff, VPBank overcame most of the major challenges in the market
and attained satisfactory results by the end of 2010. In particular, the performance of each entity is as follows:
No.
Items
Target
2010
Performance
Completion
ratio (%)
1
650
663
102%
2
Consolidated profit after tax
486
503
103%
Outlook and future plan
In 2011, it is forecasted that the macro economic conditions will remain complex and business environment
will still be unfavorable. However, with direction, attention and support from the Board of Directors, VPBank is
determined to set strong business growth targets based on achievements in 2010, and prepared to seize all
business opportunities for the development of VPBank. The planned targets are as follows:
1. Consolidated profit before tax:
2. Profit after tax/Average chartered capital:
3. Estimated dividend ratio:
VND 1,040 billion
19.5%
17%
The Bank will closely monitor market situation to maintain of its business performance and ensure service
quality and brand value.
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Board of Management'S
report
Annual Report 2010
79
Board of management's REPORT
Our performance and achievement
in 2010
In 2010, while economies worldwide faced a lot of
difficulties following the financial crisis and economic
recession, Vietnam's economy gradually recovered
and progressed, especially towards the end of the
year. Vietnam’s annual GDP reached 6.78%, higher
than the target proposed by the National Assembly
(i.e. 6.5%). All sectors and areas also obtained
a higher growth rate compared to the previous
year. However, some weaknesses and difficulties
still existed as trade deficit remained high, putting
pressure on the balance of payment; real estate
market fluctuated wildly; property prices shot up;
the annual national consumer price index exceeded
forecast, posing difficulties businesses and people.
The finance and banking sector faced a lot of
difficulties: the foreign exchange shortage since
2009 became more critical in early 2010; deposit
interest rate suddenly reversed and dramatically
increased in the last 6 months, peaking at 18% per
annum at one time; gold price and exchange rate of
VND/USD wildly fluctuated and increased sharply
in the last months of the year. In addition, on 20
May 2011, the State Bank promulgated Circular
No.13, which stipulated Capital Adequary Ratio
of credit institutions. This circular represented the
most prominent policy change in 2010, significantly
affecting banks’ operations and stirring up special
interest from the public – especially investors.
Basically, the provisions in Circular No.13 were
designed to improve prudential standards and
strictly control the usage of capital resources of
credit institutions.
In 2010, despite increasingly intense competition
in the financial market, VPBank made notable
achievements: attaining a better-than-expected
annual profit, reaching VND663 billion in
consolidated profit, or 102% of the annual of
target; total assets reached VND59,807 billion, an
increase of VND 32,264 billion or 117% compared
to the previous year; ensuring safety, stability and
achieving considerable growth; financial capability
and operation scale are greatly increased, liquidity
was ensured all the time.
The year also saw a bold change at VPBank when
it rebranded itself with the launch of a new brand
name and logo, drawing much public attention.
Besides, VPBank increased its chartered capital
to VND 4,000 billion, successfully issued bonds to
diversify methods of capital mobilization, focused
on
developing
products/services,
enhanced
professionalism and service quality as well as
expanded its operation network in developed
economic areas in particular.
Our key highlight
Table of main targets
Main targets
Year 2009
Year 2010
% increase
against 2009
% increase
against plan target
Total assets
27,543
59,807
117%
123%
Deposit from customers
16,490
23,970
45%
90%
Loan balance
15,813
25,324
60%
110%
NPL (%)
1.63%
1.20%
-0.43%
-
2,117
4,000
89%
-
383
663
73%
102%
Chartered capital
(accumulative)
80
Unit: VND ‘billion
Our capital mobilization
During the year, capital mobilization experienced a lot of difficulties: deposit interest rate suddenly reversed
and dramatically increased at the end of the year; competition in capital mobilization became more and more
intense. Banks continuously introduced many promotion programs and enticed customers of others, VPBank
also launched several interesting promotion programs of its own, such as: “Surf SHi, Drive Mercedes with
VPBank”; “Send money, win gold, enjoy wealth and prosperity”; “Spring gifts for a prosperous year”; “Golden
week brings wealth to customers”. VPBank’s interest rate always conformed to the State Bank’s regulations
and flexibly adjusted according to market situation. Besides, VPBank’s deposit products were increasingly
diversified through the issuance of promissory notes, smart account, etc. As a result, funds mobilized from
VPBank’s customers remained stable and grew steadily.
Deposit Structure
% against
previous
year
Year
2010
TOTAL DEPOSIT
24,444
48,719
100%
24,275
99%
16,490
23,970
49%
7,480
45%
In which: Savings deposits
12,953
17,235
35%
4,282
33%
3,537
6,735
14%
3,198
90%
7,477
13,782
28%
6,305
84%
-
9,631
20%
-
-
477
1,336
3%
859
180%
Current deposits and other deposits
Deposit from Credit Institutions
Issuance of valuable certificates
Other deposits
Ratio of
total deposit
Against
previous
year
Year
2009
Items
(*Source: Audit report)
In 2010, VPBank’s total deposit was VND 48,719 billion, an increase of VND 24,275 billion or 99% against the
previous year. Deposit from customers as of 31 December 2010 reached VND 23.970 billion, an increase of
VND 7,480 billion or 45% against the previous year. Of which, VND 17,235 billion was from savings deposits,
an increase of VND 4,282 billion or 33% against the same period of the previous year; VND 6.735 billion were
from current deposits and other types of deposits, an increase of VND 3,198 billion against the previous year.
Annual Report 2010
81
Capital mobilization performance
VND ‘billion
30,000
27,000
25,000
23,970
23,970
20,000
21,637
21,878
16,161
16,675
16,490
QII/10
QIII/10
QIV/10
18,996
16,490
15,000
12,941
14,230
14,262
10,000
5,000
0
2007
2008
2009
2010
QI/10
Actual 2010
E2010
Actual (same period of 2009)
Our credit and investment
As of 31 December 2010, VPBank's outstanding loans reached VND 25,324 billion, which was 110% of the
target and an increase of VND 9,511 billion or 60.18% against the previous year.
Credit quality: The bank-wide NPL was under tight control at year end, which stood at 1.2%, a 0.41% decrease
compared to the previous year and much lower than the industry average of 2.5%. The percentage of Group 2 loans
out of total outstanding loans was 1.15%, a decrease of VND 88 billion or 0.14% compared to the previous year.
Outstanding loans to customers (VND ‘billion, %)
VND ‘billion
4%
30,000
3.41%
25,324
25,000
24,017
20,945
20,000
18,677
15,810
15,000
13,218
15,787
15,781
23,000
22,317
15,920
15,904
3%
15,810
2%
2%
1.64%
1.63%
1.38%
1.20%
1.38%
1.26%
1.28%
1%
1.20%
5,000
0
1%
0.49%
2007
2008
2009
Actual 2010
82
4%
3%
12,604
12,986
10,000
14,327
25,324
2010
QI/10
QII/10
QIII/10
Same period of last year
M10/10
M11/10
M12/10
E2010
Loans under Groups 3-5
0%
In 2010, investment operation grew rapidly,
expanding and diversifying the total assets structure
while effectively contributing to the bank’s profit. In
the total assets structure, investment in valuable
papers and securities accounted for a larger
proportion and stood at VND 12,742 billion at year
end, of which VND 1,590 billion was government
bonds, the remaining were other types of bonds and
valuable papers.
and 16 transaction offices. Besides, most VPBank’s
branches and transaction offices were located in
economic zones or other strategic locations for
business development. Also in 2010, VPBank started
a project to standardize branches and transaction
offices throughout network in line with modern retail
banking model.
Gap trading activities and liquidity coverage
Analysis of financial figures
VPBank’s gap trading activities and liquidity
coverage have always remained stable and its
deposit interest rate was always adjusted according
to market. Although fluctuations of interest rate and
liquidity caused tension in market, especially at the
year end when many banks had to stop lending,
VPBank’s outstanding loans still thrived significantly.
In spite of wildly fluctuating foreign exchange rate,
especially US Dollar, VPBank always managed to
satisfy customer's foreign currency needs.
VPBank’s capital usage efficiency had clearly
increased. The profit after tax to consolidated average
chartered capital ratio (or Return on Equity, ROE) was
22.65%, an 8.75% increase from the previous year.
Profit after tax to average total assets ratio (or Return
on Assets, ROA) reached 1.2%, a 0.1% decrease
compared to the previous year due to a dramatic
increase of total assets.
Since the beginning of the third quarter, operation in
the secondary market became more active with scale
expansion and operation diversification, yielding a
considerable income and firmly ensuring liquidity
for VPBank. Deposits placed and lending extended
by other credit institutions reached VND 12,579
billion, a VND 5,231 billion or 71% increase from the
previous year. In the meantime, received deposits
and borrowing from other credit organizations
reached VND 25,998 billion, a VND 18,379 billion or
241% increase from the previous year. In 2010, the
turnover from transactions in interbank market was
over VND 195,056 billion. Business limit in interbank
market of VPBank in 2010 increased dramatically,
from VND 12,000 billion to VND 20,100 billion,
signifying VPBank’s prestige in the interbank market.
Business operation of the Treasury group showed
remarkable development, significantly contributing
to the bank’s performance with a profit before tax of
more than VND 171 billion, or 26% of the total profit
of the bank.
Network development
VPBank’s operation network was extensive and
covered most cities and provinces in the country. As
of end December 2010, there were 150 transaction
points in total (i.e. 38 branches and 112 transaction
offices). In 2010, VPBank opened 3 new branches
Report of financial status
Profitability
Ratio
2009
2010
Profit after tax /Average
chartered capital (ROE)
13.9%
22.65%
Profit after tax/Average total
assets (ROA)
1.3%
1.2%
Capital adequacy ratio: VPBank always meets the
State Bank’s requirements on prudential ratios. As
of 31 December 2010, the capital adequacy ratio
was 14.66%, much higher than the required ratio of
the State Bank of 9% ; liquidity ratio was 15.7%; the
ratio of short-term capital resources used for midand long-term loans was 5.53%; the ratio of credit to
deposit reached 51%.
Changes in shareholders’ capital
In 2010, VPBank was approved to increase its
chartered capital two times. The first time was in
September 2010 when VPBank’s chartered capital
increased from VND 2,117 billion to VND 2,456
billion; the second time was in December 2010 when
chartered capital increased from VND 2,456 billion to
VND 4,000 billion. As of 31 December 2010, a total
of 400,000,000 VPBank shares werein circulation
(100% common stocks).
Dividends
Dividend ratio in 2010 was 10.5% paid by shares.
Annual Report 2010
83
Major events in the year
Organization and management structures
In 2010, VPBank’s organization structure continued
to follow the division model, which had gradually
been improved, to enhance its supporting role toward
other business units.
Over the past time, VPBank’s business results and
growth were found to be lower than a number of
competitors. Therefore, VPBank need significant
innovations to propel itself into a faster development
track and ambitiously become a leading bank in the
market. The transformation project consulted by
McKinsey officially started on 15 November 2010.
This big, strategic and breakthrough project has
great influence on the entire VPBank. The goal of this
project was to restructure the bank’s system so as
to enhance quality, productivity and operation scale,
thereby elevating VPBank to a higher level.
Product development
In 2010, VPBank focused on the development of its
products and services. As such, its service quality
significantly improved and results had been very
favorable. Total service turnover of the entire bank
in 2010 reached VND 334 billion, a 66.4% increase
from the previous year.
Corporate product development
VPBank has been gradually developing its structures,
policies and products, to offer greater flexibility and
satisfaction to its customer’s needs, focusing on
trade finance products such as full package project
financing, logistics and guarantees. Therefore,
corporate customer development plan in 2010 has
attained remarkable results, with the number of
corporate clients reaching 16,357, a 26.94% increase
from the previous year; corporate outstanding loan
reached VND 10,893 billion, a 63.63% increase from
the previous year; especially deposit from corporate
clients reached VND 5,579 billion, a 118.78% increase
from the previous year; service fee from international
payment increased 111.07% to reach VND 32.2 billion.
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Retail product development
In 2010, based on market research and analyses of
VPBank capacity, VPBank provided comprehensive
policies targeted at individual customers, strengthening
sustainable relationship between VPBank and it's
existing customers as well as attracting new customers.
Noticeably, although capital mobilization activities
faced lots of difficulties due to wildly fluctuating interest
rates and intense competition among banks in the
year, VPBank’s capital mobilization from customers
managed to achieve steady growth, thanks to new
and competitive products (e.g. smart accounts,
savings accounts with floating interest rate, savings
for cumulative luck) and other interesting promotional
programs, 24/7 customer care programs. In addition,
VPBank also developed business connections with
strategic partners such as Prudential, BIDV, Vincom,
etc. to attract more customers and cross-sell products
and services.
Card development
Compared to other joint stock commercial banks,
VPBank offers a wide range of cards suitable for all
groups of customers. Besides Autolink cards, VPBank
MasterCard Platinum is dedicated to businessmen
and professionals, VPBank MasterCard MC2 was
aimed at the youth and VPBank MasterCard E-card
was designed for online payment. In addition,
VPBank also paid attention to bringing added value
to cardholders through partnership with a series of
pretigious service providers.
Rebranding
On 12 August 2010, VPBank officially announced
it's new name – “Vietnam Prosperity Joint Stock
Commercial Bank” and introduced its new brand
identity.
VPBank’s new brand name with the slogan “Act for
your dream” was established based on the following
factors: Professionalism, Commitment, Uniqueness
and Simplicity.
In 2010, VPBank set up a variety of new products
integrated with advanced technology, unique
features and maximized utilities for customers. At
the beginning of 2011, VPBank launched new key
products, such as Savings for Cumulative Luck, VP
Super and Saving account with floating interest rate
with many distinctive features, attracting customers’
interest as well as becoming outstanding product in
the market.
E-banking product development
VPBank has introduced many e-banking products
related to deposit accounts and bank cards, such as
SMS banking, Internet Banking-i2b to both individual
and corporate clients. With Internet banking, the
system offers clients greater protection and security
by using a double authentication system, which
requires an individual password and a OTP password
(one-time password) sent to the customer’s mobile
phone. This service has been updated with new
features to provide more utilities to customers.
► Professionalism: applying knowledge and
experience, together with quick, accurate and
professional working style to provide customers
with modern, reliable and appropriate banking
products/services to fulfill all their needs.
►Commitment: Enthusiastically consulting, guiding
and answering customers’ inquiries to help them
understand VPBank’s products and services clearly.
► Differentiation: was always researching and
innovating to make a difference, offering first class
services/products with outstanding features and a
variety of utilities to customers.
► Simplicity: focusing on improving VPBank’s
service systems with simple, easily understood
and convenient procedures, applying modern
technology to serve customers quickly and
effectively.
The new symbol is a stylized image of a blooming lotus
– a typical flower in Vietnam that represents VPBank’s
commitment in contributing to the sustainable
development, prosperity and eternity of Vietnam.
Annual Report 2010
85
It is also like a cupped pair of hands holding a
growing sprout, representing the bank’s firm and
reliable foundation and support for a continuous
development and prosperity.
The vibrant red of the flower petals represents
VPBank’s enthusiasm and devotion towards its work,
the bank’s creativity, prosperity and luck, as well as
its responsibility towards society and community.
The typography is an open and simple design to
portray modernity and symbolize its transparency in
all banking transaction activities.
The gentle curves of the symbol represent a flexible
and faithful service with simple procedures. The
green color shows a new and fresh vitality, which
symbolizes a sustainable success and development
for both the bank and its customers. Especially,
a line in the alphabet “k” is an upward red lotus
petal, representing VPBank’s determination to
offer customers modern and unique products and
services, best quality with a professional and reliable
manner through the bank’s efforts and practical
actions, so as to help customers attain their dreams.
Also, this special petal in the letter “k” expresses a
feeling of persistence and consistence with VPBank’s
orientation of sustainable development and its aim
to brand VPBank as a prestigious partner for a firm
cooperation and development with customers.
86
the Government is carrying out fiscal and monetary
tightening policies decisively, together with other
measures to manage the economy. Therefore,
banking operations this year is expected to face
more pressure and difficulties.
It is also not easy to expand network distribution
because the State Bank has been applying restriction
policies and stopped licensing new Branches/
Transaction Offices while waiting for a Circular
guiding the new Law on Credit Institutions.
Although VPBank has increased its capital to VND
4,000 billion and attained a more than VND 5,000
billion equity capital in 2010, there was insufficient
capital for the expansion of business operation in
2011, as well as in the subsequent years. The Capital
Adequacy Ratio (“CAR”), which should be kept at the
minimum level of 9%, is currently 14.66%. However,
due to specific characteristics of VPBank’s credit
operation and its growth rate since the beginning
of the year, coupled with the State Bank’s stricter
evaluation criteria on loans and risk ratios on granted
credit, the CAR ratio can be lowered to 9%, which will
fail to meet the demands of continuous credit growth,
business expansion and other requirements for
investment, asset acquisition and other essential and
urgent needs. Therefore, increase in chartered capital
in 2011 and the subsequent years is still required.
Concurrently, VPBank also carried out a
comprehensive restructuring project to achieve a
modern and versatile bank model that maximizes
management mechanism efficiency, technology
capability and human resources.
Based on VPBank’s overall transformation strategy
approved by the Board of Directors, performances
in 2010, market activities during first months of 2011
and forecast for the remaining months of the year,
the Board of Management has set a number of main
targets and development plans for the whole network.
Our priorities in 2011
Financial targets
At the start of 2011, a number of macro-indicators
showed difficulties in the banking industry: Resolution
No.11/NQ-CP dated 24 February 2011 guiding some
measures to curb inflation, stabilize macro-economy
and guarantee social security; Directive No.01/CTNHNN dated 1 March 2011 on monetary management
and banking operation solutions to implement
Resolution No.11; help to control credit growth under
20% in accordance with circulars to stipulate deposit
ceiling interest rates; State Bank’s decisions to raise
key interest rates, etc. In the meantime, CPI of the
first quarter reached 6.12%, almost reaching the
National Assembly’s 7% annual target. Currently,
Substantial growth was initially anticipated, with
bank-wide profit-before-tax target of VND 1,349
billion, deposit and outstanding loan growth of
80% and 45% respectively. However, due to the
Government’s Resolution No.11, the State Bank
Governor’s Circular No.01/2011 and other strict
macro-economic policies, credit growth must be
under 20% and non-production loans must not
exceed 16%, and restrictions were imposed on
public expenditures. There is also tighter control over
money supply and possible increase of compulsory
reserves. These would greatly affect VPBank’s
business operation and the implementation of its
plans. As such, targets for 2011 will be as follows:
1
Total assets
80.000
2
36.500
3
Outstanding loan
30.400
4
NPL
5
Consolidated profit
6
Number of transaction offices
< 2%
1.040
200-210
Under prevailing conditions, it is a challenge for
VPBank to achieve the above mentioned targets,
which requires great efforts from all staffs and
can only be fulfilled provided that the State Bank
does not introduce more stringent regulations to
increase compulsory reserve ratios. The increase
in compulsory reserve ratios would put liquidity in
the market under undue pressure, compelling most
banks to sacrifice profits and efficiency to ensure
payment capabilities.
Directive orientations
Performing the overall transformation strategy
approved by the Board of Directors, VPBank plans to
implement 6 strategic initiatives in 2011:
► Sale Stimulation Program (SSP), which includes
processes, tools, training and incentives, etc. will
help branches to achieve sustainable progress
in sales capacity of all sales staffs, including
account officers (AO) and tellers so as to turn
each branch and transaction office into an
effective sales outlet. The pilot program held at
the Ngo Quyen branch has achieved success
since August 2010 and it will be widely applied
across the bank in 2011.
► Key process centralization: properly and effectively
centralize back-office activities to ensure a
centralized control. Based on analysis, evaluation
of current credit processes and transactions,
identify methods to consolidate or optimise those
processes to improve VPBank’s production
capacity, so it can accommodate ambitious
growth targets within next 3-4 years. Together with
improvement of credit risk management activities,
process improvement will create advanced tools
for credit risk management, to ensure VPBank’s
capability to control credit risks effectively and
grant customers credit approval in a fast and
timely manner.
► Network development and distribution: research
and re-design branches and transaction offices
according to the latest and most advanced
standards so as to best satisfy customers’ needs.
Set up sales channels management division
and establish focal points for area management.
Divide branch operation according to areas under
the control of regional and area managers.
Annual Report 2010
87
88
► Product innovation and development for different
customer segments to raise VPBank’s position
each group: study and develop prominent
products for specific customer segments (i.e.
income, education); customized customer
policies for different groups of corporate clients
(e.g. SMEs, Micro-SMEs and large corporate
clients). New products will be launched with
innovative marketing tactics, combined with
better service quality, improved sales process,
new layout of branches to improve service quality.
► Organizational
structure,
performance
management and human resources strategy:
build and strengthen operation mechanism;
design modern organizational structure, distinct
separate business and back-office divisions,
develop a proper reporting structure and ensure
accountability of reporting business results;
recognize and nurture staffs with potential by
building an appropriate training and development
program to prepare for the bank’s long-term
development and network expansion.
► Build and gradually improve the risk management
apparatus, particularly market risk and operation
risk, together with enhancement of credit risk
management. Enhance quality of credit risk
analysis and control; build and gradually improve
the customer evaluation and ranking system
for implementation of its price policy; build a
centralized credit risk management department
to assist the leadership in decision-making.
Fulfilling all the above initiatives will help VPBank
transform in-depth, generating long-term effects to
the bank. All branches and transaction offices will
undergo a complete transformation encompassing
various facets, including products, service quality, sale
channels, processes and branch layout, etc. These
changes will bring about “a totally new and different
experience” to VPBank’s customers, bringing VPBank
the image of a retail bank with enthusiasm, activeness,
modernity and devotion to its customers.
SUMMARY of
FINANCIAL STATEMENTS
Annual Report 2010
89
SUMMARY of FINANCIAL STATEMENTS
The Board of Management of Vietnam Prosperity Joint Stock Commercial Bank is pleased to present its report
and consolidated financial statements of the Bank and its subsidiaries for the year ended 31 December 2010.
THE BANK
Vietnam Prosperity Joint Stock Commercial Bank (herein referred to as "the Bank") is a joint stock commercial
bank incorporated and registered in the Socialist Republic of Vietnam.
The Bank was established in accordance with the Business Licence No. 0042/NH-GP granted by the State
Bank of Viet Nam on 12 August 1993. The operational duration under the license is ninety nine (99) years and
the Bank operated officially on 12 August 1993. On 27 July 2010, the Bank has renamed to Vietnam Prosperity
Joint Stock Commercial Bank in accordance with the Business License No. 1815/QD - NHNN granted by the
State Bank of Viet Nam.
The Bank has been established to provide banking services including receiving short, medium and long-term
deposits from organisations and individuals; making short, medium and long-term loans and advances to
organisations and individuals based on the nature and capability of the Bank's sources of capital; also including
foreign exchange transactions, international trade financial services, discount of commercial papers, bonds and
other valuable papers, and providing other banking services allowed by the State Bank of Vietnam.
The original chartered capital of the Bank was VNDm 20,000 and subsequently supplemented for each period
under the approval of the General Shareholders' Meeting. As at 31 December 2010, the chartered capital of the
Bank is VND million 4,000,000 (as at 31 December 2009' VND million 2,117,474).
The Head Office of the Bank is located at No. 8 Le Thai To, Hoan Kiem District, Hanoi, Viet Nam. As at 31 Dec
2010, the Bank has one (1) Head Office, one (1) Operations Center, two (2) subsidiaries, thirty-seven (37)
branches and one hundred and twenty-six (126) transaction offices nationwide.
CONSOLIDATED RESULTS AND DIVIDENDS
Summary of consolidated results and dividends of the Bank and its subsidiaries is as follows:
Net profit for the year
Dividend of the previous year paid in current year
Undistributed earnings at the end of the year
90
2010
VNDm
2009
VNDm
503,325
293,565
-
84,699
499,271
129,465
Board of Directors
The members of the Board of Directors for the year ended 31 December 2010 and as at the date of this
report are
Full Name
Title
Mr. Pham Ha Trung
Chairman
Mr. Bui Hai Quan
Deputy Chairman
Mr. Lo Bang Giang
Deputy Chairman
Member
Mr Ngo Chi Dzung
Chairman
Ms. Nguyen Thi Nguyet Huong Deputy Chairman
Mr. Tran Trong Kien
Member
Mr. Soon Tit Koon
Member
Mr. Nguyen Quang A
Member
Mr. Ngo Ha Bac
Member
Date of appointment/reappointment/resignation
Appointed on 16 March 2010
Appointed on 31 March 2006,
resigned on 16 March 2010
Appointed on 10 December 2008,
reappointed on
16 March 2010
Appointed on 14 July 2010
resigned on 21 October 2010
Appointed on 18 August 2009,
reappointed on 16 March 2010,
resigned on 7 January 2011
Appointed on 2 May 2008,
Board of Supervisors
The members of the Board of Supervisors for the year ended 31 December 2010 and at the date of this report
are as follows:
Full Name
Ms. Nguyen Quynh Anh
Mr. Vu Hai Bang
Title
Ms. Trinh Thi Thanh Hang
Head
Head
Member
Member
Ms. Phan Thi Thu Ha
Member
Mr Tran Duc Ha
Member
Date of appointment
Resigned on 16 March 2010,
appointed on 16 March 2010
Board of Management and Chief Accountant
The members of the Board of Management and Chief Accountant during the year ended 31 December 2010
and at the date of this report are:
Full Name
Mr. Nguyen Hung
Mr. Vu Minh Quynh
Mr Nguyen Thanh Binh
Ms. Duong Thi Thuy
Ms. Duong Thi Thu Thuy
Ms Nguyen Thi Bich Thuy
Mr Phan Ngoc Hoa
Mr Low Boon Keng Howard
Mr Marek Hovorka
Mr. Nguyen Toan Thang
Title
CEO
Deputy CEO
Deputy CEO
Deputy CEO
Deputy CEO
Deputy CEO
Deputy CEO
Deputy CEO
Deputy CEO
Chief Accountant
Date of appointment
Appointed on 22 May 2007
Appointed on 21 February 2002
Appointed on 9 April 2009
Appointed on 10 June 2010
Appointed on 25 January 2010
Appointed on 5 October 2010
Annual Report 2010
91
EVENTS SINCE THE CONSOLIDATED BALANCE SHEET DATE
There have been no significant events occurring after the consolidated balance sheet date, which would require
adjustments or disclosures to be made in the consolidated financial statements.
AUDITORS
The auditors. Ernst & Young Vietnam limited, have expressed their willingness to accept reappointment
STATEMENT OF THE MANAGEMENT'S RESPONSIBILITY IN RESPECT OF THE CONSOLIDATED
FINANCIAL STATEMENTS
The Board of Management of the Bank is responsible for the consolidated financial statements of the year
2010, which give a true and fair view of the consolidated state of affairs of the Bank and its subsidiaries and
of their consolidated results and consolidated cash flows for the year In preparing those consolidated financial
statements, the Board of Management of the Bank is required to'
► select suitable accounting policies and apply them consistently;
► make judgments and estimates that are reasonable and prudent;
► state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the consolidated financial statements; and
► prepare the consolidated financial statements on the going concern basis unless it is inappropriate to
presume that the Bank will continue its business.
The Board of Management of the Bank is responsible for ensuring that proper accounting records are kept
which disclose, with reasonable accuracy at any lime, the consolidated financial position of the Bank and its
subsidiaries and to ensure that the accounting records comply with the registered accounting system. It is also
responsible for safeguarding the assets of the Bank and its subsidiaries and hence for taking reasonable steps
for the prevention and detection of fraud and other irregularities
The Board of Management of the Bank has confirmed to the Board of Directors that the Bank has complied with
the above requirements in preparing the accompanying consolidated financial statements
On behalf of the Board of Management.
Mr. Nguyen Hung
CEO
Hanoi, Vietnam
20 February 2011
92
INDEPENDENT auditor's statement
Reference: 60755038/14469373
INDEPENDENT AUDITORS' REPORT
To:The Board of Directors
Vietnam Prosperity Joint Stock Commercial Bank
(formerly known as Vietnam Joint Stock Commercial Bank for Private Enterprises)
We have audited the accompanying consolidated balance sheet of Vietnam Prosperity Joint Stock Commercial
Bank ("the Bank") and its subsidiaries as at 31 December 2010, the consolidated income statement, the
consolidated statement of undistributed earnings, the consolidated cash flow statement for the year then
ended ("the consolidated financial statements") as set out on pages 94 to 100. These consolidated financial
statements are the responsibility of the Bank's management. Our responsibility is to express an opinion on these
consolidated financial statements based on our audit.
Basis of Opinion
We conducted our audit in accordance with Vietnamese and International Standards on Auditing applicable
in Vietnam. These standards require that we plan and perform the audit to obtain reasonable assurance to
determine whether the consolidated financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of consolidated financial statements. We believe
that our audit provides a reasonable basis for our opinion
Opinion
In our opinion, the accompanying consolidated financial statements, in all material aspects, give a true and
fair view of the consolidated financial position of the Bank and its subsidiaries as at 31 December 2010, the
consolidated results of their operations and consolidated cash flows for the year then ended in accordance
with the Vietnamese Accounting Standards and System for Credit institutions and comply with other relevant
statutory requirements of the State Bank of Vietnam
Ernst & Young Vietnam Limited
Vo Tan Hoang Van
Deputy CEO
Registered Auditor
Certificate No 0264/KTV
Nguyen Chi Cuong
Auditor-in-charge
Registered Auditor
Certificate No 1103/KTV
Hanoi, Vietnam
20 February 2011
Annual Report 2010
93
Consolidated Balance Sheet
as at 31 December 2010
Notes
ASSETS
Cash and cash equivalents on hand
Balances with the State Bank of Vietnam ("the SBV")
Due from banks
Placements with other banks
Loans to other banks
Provision for loans to other banks
Trading securities
Trading securities
Provision for impairment of trading securities
Derivatives and other financial assets
Loans to customers
Loans to customers
Provision for credit losses
Investment securities
Available·for-sale securities
Held-to-maturity securities
Provision for impairment of investment securities
Long-term investments
Investments in joint-ventures
Investments in associates
Other long-term investments
Provision for impairment of long-term investments
Fixed assets
Tangible fixed assets
Cost
Accumulated depreciation
Finance leases
Cost
Intangible fixed assets
Cost
Accumulated amortisation
Investment property
Cost
Other assets
Account receivables
Interest and fee receivables
Deferred tax assets
Other assets
In which: Goodwill
Provision for other assets
TOTAL ASSETS
94
3
4
5
6
12.1
7
8
9
10
12
11
11
12
13.1
13.2
14
14.3
31 Dec 2010
VNDm
31 Dec 2009
VNDm
329,920
560,224
11,625,637
11,625,637
2,127,700
2,153,749
(26,049)
156
25,094,534
25,323,735
(229,201)
11,421,870
11,428,766
(6,896)
147,738
148,580
(842)
349,889
199,061
373,629
(174,568)
150,828
186,087
(35,259)
8,149,355
7,080,428
781,446
299,073
(11,592)
59,807,023
355,430
758,497
7,383,093
7,383,093
57,125
73,406
(16,281)
15,682,819
15,813,269
(130,450)
2,291,943
2,308,844
(16,901)
45,778
45,778
326,237
223,528
348,063
(124,535)
102,709
126,585
(23,876)
642,084
157,110
296,826
198,072
(9,924)
27,543,006
Consolidated Balance Sheet (Continued)
Notes
31 Dec 2010
VNDm
31 Dec 2009
VNDm
LIABILITIES
Borrowings from the Government and the SBV
15
1,216,381
315,848
Due to banks
16
13,781,961
7,476,782
4,102,461
19,114
Current accounts from other banks
Term deposits from other banks
Due to customers
17
9,679,500
7,457,668
23,969,645
16,489,544
Derivatives and other financial liabilities
7
-
8,068
Other borrowed funds
18
119,794
161,799
Valuable papers issued
19
9,631,647
-
5,882,864
542,980
636,014
260,033
-
279,291
Other liabilities
Interest & fee payables
Deferred tax liabilities
Other payables
20
5,240,616
Provision for off-balance sheet commitments
9
6,234
3,656
54,602,292
24,995,021
TOTAL LIABILITIES
OWNERS' EQUITY
Capital and Reserves
Capital
4,617,389
2,290,546
22
4,000,000
2,117,474
-
-
22
617,389
173,072
Treasury shares
-
-
Preference shares
-
-
Chartered capital
Capital to purchase fixed assets
Share premium
Others
Reserves
22
Undistributed earnings
22
TOTAL OWNERS' EQUITY
TOTAL LIABILITIES AND OWNERS' EQUITY
-
-
88,071
127,974
499,271
129,465
5,204,731
2,547,985
59,807,023
27,543,006
Annual Report 2010
95
Consolidated Balance Sheet (Continued)
CONSOLIDATED OFF-BALANCE SHEET ITEMS
Notes
Contingent liabilities
37
Financial guarantees
31 Dec 2010
VNDm
793,514
927,693
1,158
1,244
Letters of credit
292,452
158,483
Other guarantees
499,904
767,966
2,874,031
935,933
-
-
Commitments
37
Commitments
Revocable un-withdrawn loan commitments
Chief Accountant
Hanoi, Vietnam
20 February 2011
96
31 Dec 2009
VNDm
2,874,031
935,933
3,667,545
1,863,626
Mr. Nguyen Hung
CEO
Consolidated Income Statement
for the year ended 31 December 2010
Notes
2010
VNDm
2009
VNDm
Interest and similar income
25
3,814,024
2,163,995
Interest and similar expenses
26
(2,736,987)
(1,390,784)
Net interest and similar income
Fee and commission income
Fee and commission expenses
1,077,037
773,211
334,111
200,772
(122,701)
(63,852)
211,410
136,920
Net fee and commission income
27
Net gain/(loss) from foreign currencies trading
28
(9,364)
Net gain/(loss) from trading securities
29
(59,303)
Net gain/(loss) from investment securities
30
19,211
(9,251)
5,112
(27,131)
Other operating income
103,148
Other operating expenses
(32,090)
(2,310)
71,058
19,810
Net gain from other operating activities
31
Dividend income
32
TOTAL OPERATING INCOME
Personnel expenses
Depreciation and amortisation charges
Other operating expenses
22,120
12,696
7,966
1,308,646
920,736
(239,505)
(207,993)
(63,157)
(63,314)
(241,641)
(206,550)
33
(544,303)
(477,857)
764,343
442,879
Provision expenses for credit losses
9
(119,303)
(75,180)
Reversal of provision for credit losses during the year
9
20,682
18,589
TOTAL OPERATING EXPENSES
Profit before provisions for credit losses
Provision expenses for off-balance sheet commitments
(2,578)
PROFIT BEFORE TAX
Current enterprise income tax expense
21.1
Deferred enterprise income tax expense
21.2
Enterprise income tax expense
NET PROFIT FOR THE YEAR
Basic earnings per share (VND)
Chief Accountant
23
(3,656)
663,144
382,632
(159,819)
(89,067)
-
-
(159,819)
(89,067)
503,325
293,565
2,045
1,195
Mr. Nguyen Hung
CEO
Hanoi, Vietnam
20 February 2011
Annual Report 2010
97
Consolidated Statement Of Undistributed Earnings
Notes
UNDISTRIBUTED EARNINGS/(ACCUMULATED LOSSES)
AT THE BEGINNING OF THE YEAR
22.1
2010
VNDm
2009
VNDm
129,465
(29,619)
Net profit for the year
503,325
293,565
UNDISTRIBUTED EARNINGS BEFORE APPROPRIATIONS
632,790
263,946
Less:
-Creation of reserves for previous year
(3,744)
(11,876)
-
Temporary creation of reserves for current year
(2,728)
(37,890)
-
Dividend paid for previous year
-
- Increase chartered capital from undistributed earnings
-
Others
UNDISTRIBUTED EARNINGS AT THE END OF THE YEAR
Chief Accountant
Hanoi, Vietnam
20 February 2011
98
(127,048)
1
22.1
499,271
Mr. Nguyen Hung
CEO
(84,699)
(16)
129,465
Consolidated Cash Flow Statement
Notes
2010
VNDm
2009
VNDm
CASH FLOWS FROM OPERATING ACTIVITIES
Interest and similar receipts
Interest and similar payments
Fees and commission receipts
2,071,598
(1,479,159)
211,410
Net gain/(Ioss) arising from foreign currencies and gold trading
Net gain/(toss) arising from trading & investment securities
Net gain from other operating activities
Payment 10 employees and suppliers
Enterprise Income lax paid in the year
3,329,404
(2,361,006)
21.1
Net cash flow from operating profit before changes in net
operating assets
136,920
(9,364)
19,211
(54,191)
(36,382)
70,281
19,343
(257,661)
(198,018)
(112,601)
(100,805)
816,272
432,708
Changes in operating assets
(Increase)/decrease in due from banks
(Increase) in trading in securities
(Increase)/decrease in derivatives and other financial assets
(2,895,279)
(1,814,017)
(11,200,502)
(498,183)
(156)
(Increase)/decrease in loans to customers
Bad debts written-off
(Increase)/decrease in other assets
2,129
(9,510,466)
(2,827,341)
(2,448)
(11,582)
(7,020,879)
31,581
Changes in operating liabilities
Increase/(decrease) in borrowings from the Government and
the SBV
900,533
315,848
Increase/(decrease) in due to banks
6,305,179
6,198,717
Increase in due to customers (include the State Treasury)
7,480,101
2,259,442
Increase/(decrease) in issuing valued papers (exclude issued valued
paper under financing activities)
9,631,647
Increase/(decrease) in other borrowed funds
-
(42,005)
Increase/(decrease) in derivatives and other financial liabilities
61,040
(8,068)
Increase/(decrease) in other operating liabilities
8,068
4,558,713
Utilization of reserves
(259,541)
(38,935)
Net cash flow from operating activities
(13,475)
(1,026,293)
3,885,394
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of fixed assets
(88,035)
Proceeds from disposal of fixed assets
310
Payments for disposal of fixed assets
(79)
(20,159)
2,309
(32)
Payments for acquisition of investment property
-
-
Proceeds from disposal of investment property
-
-
Payments for disposal of investment property
-
Payments for equity investments
Proceeds from equity investments
Dividends received during the year
Net cash flow from investing activities
-
(101,960)
107,699
32
-
12,696
7,966
(177,068)
97,783
Annual Report 2010
99
Consolidated Cash Flow Statement (Continued)
Notes
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in chartered capital
Proceeds from long-term valuable papers eligible for recording as
owners' equity & other long-term borrowings
Payments for long-term valuable papers eligible for recording as
owners' equity & other long-term borrowings
Dividends paid to shareholders
Payments for treasury share acquisition
Proceeds from selling treasury shares
Net cash flow from financing activities
Net cash flow during the year
Cash and cash equivalents at the beginning of the year
Effect of changes in foreign exchange rates
Cash and cash equivalents at the end of the year
Chief Accountant
Hanoi, Vietnam
20 February 2011
100
24
34
2010
VNDm
2009
VNDm
2,326,843
-
-
-
2,326,843
1,123,482
6,567,800
7,691,282
Mr. Nguyen Hung
CEO
(84,699)
(84,699)
3,898,478
2,669,322
6,567,800
SUBSIDIARIES
Annual Report 2010
101
Subsidiaries
Companies that hold more than 50% of shares/equity
of the Bank: Currently, no companies hold over 50%
of VPBank’s share capital.
Companies with more than 50% of share/capital
contribution owned by the Bank:
Subsidiaries
Business
sectors
% capital
invested
by
VPBank
VPBank Securities
Company
Securities
trading
100%
Managing debts
and utilizing
assets
100%
VPBank Assets
Management
Company (VPB
AMC)
Vietnam Prosperity
Company (VPBS)
Bank
Securities
In 2010, as a result of radical changes in management
administration, human resources and operation
structure, VPBS attained several achievements,
improving its market share significantly and
becoming, for the first time, one of the top ten
securities companies with considerable brokerage
market share in Ho Chi Minh City Securities
Transaction Center in the fourth quarter of 2010.
VPBS’s consultancy operation is strong with capital
arrangement for prestigious businesses and with
mergers and acquisitions (M&A). The company
102
signed a number of big contracts in the year:
consultancy on the M&A of a galvanized and colored
steel plant between Hanoi Lilama Corporation and
Vietnam Steel Corporation with a transaction value
of over USD 30 million; consultancy on stocks and
bonds issuance of Song Da Thang Long Joint Stock
company, Eurowindow, etc. As a result of these major
agreements, VPBS has made its mark in the market.
In 2010, the company also restructured all units
under the block chart and recruited more personnel
for key positions in its organization. As for business
performance in 2010, the company achieved a profit
before tax of VND 28.1 billion, total assets worth
VND 3,626 billion and total revenue from business
operation of VND 180.8 billion.
Vietnam Prosperity Bank Assets and
Management Company (VPBank AMC)
In 2010, VPBank AMC continued to implement existing
real estate projects (e.g. Fideco, Binh Tan – Sakico,
362 Pho Hue, Hoa Binh – Dam Sen project, Vo Van
Tan, etc.). It also coordinated with VPBank’s branches
to deploy head offices, assess design documents
and documents for payment and liquidation of capital
construction in Branches, as well as collected collateral
management fees for Branches. This operation also
brought considerable income for VPBank. However,
when the State Bank allowed negotiable interest rates
in the second quarter, income from management fees
dramatically decreased. Profit before tax of AMC in
2010 is VND 151 billion.
Các Công Ty Có Liên Quan
OUR ORGANIZATION
Annual Report 2010
103
OUR Organization
Organizational Structure
Shareholders' meeting
BOARD of management
CREdit council
Board of investment
board of supervisor
internal audit
ALCO
BOD's OFFICE
Remuneration COMMITTEE
risk management committee
BOARD OF DIRECTORS
HUMAN CAPITAL
MANAGEMENT
RETAIL BANKING
COrporate banking
Corporate Products
& Services Dept.
Managerial
monitoring
Traing & Developing
Human Resource Dept.
Retail Products &
Services Dept.
Recruitment Dept.
Wealth Management
Legal Dept.
Labor Relations
& Human Resouces Data
Western Union
Center
Credit
Management Dept.
Compensation & Benefits
Risk
Management Dept.
Credit
Revaluation Dept.
MIS Unit
transaction
offices & Branches
104
OUR Organization
SUpporting
Division
Informatic
center
Center for
Strategic
TREASURY
DIVISION
Consumer
credit
Financial
& Accounting Dept.
Operational Service
Project Management
office (PMO)
Foreign Exchange
& Derivatives Dept.
Sales Dept.
Payment Center
Service
Management
Research Strategy &
Special Projects
Business
Management Dept.
Card Center
Network & Security
Management
Money Market &
Liquidity Management
Dept.
Planing Dept.
System & Storage
Management
Admin Dept.
Application Dept.
Marketing Dept.
Treasury Sales &
Financial Institutions
Dept.
Business
Management Dept.
Financial
Investment Dept.
Cash and Vault
Management Dept.
Risk
Management Dept.
Financial
& Account Dept.
Information
Technology Dept.
Support Dept.
Operational Dept.
Branches Network &
Services Quality Control Dept.
Customer Service Center
Investment Management
& Procurement
Assets Evaluation Dept.
Annual Report 2010
105
OUR Organization
Brief resumes of members of Board of Management
Mr. Nguyen Hung
Mr. Nguyen Thanh Binh
Mr. Vu Minh Quynh
CEO
Master of Business
Administration
Deputy CEO
Bachelor of Banking and
Finance
Deputy ceo
Master of Economics
1993 - 1994: Head of Accounting
Transaction and Treasury
Department
August 1994 – February 1996:
Officer of Head Office Credit
Department
1994 - 1996: Head of Accounting,
Chief Accountant
March 1996 – November
1996: Deputy Head of Head
Office Credit Department
1996 - 1999: Deputy CEO (from
April - June 1997, Acting CEO)
April 2009 – present:
CEO
December 1996 – July 1999:
Head of Head Office Credit
Department
August 1990 – June 2000:
Participant in Vietnam
Fulbright Program – Post
Graduate of Public Economy
July 2000 – September
2000: Team Leader of Capital
Management
October 2000 – April 2001:
Acting Head of R&D Department
May 2001 – February 2002:
Head of General Affairs
and Branches Management
Department
February 2002 – present:
Deputy CEO
106
May 1994 – June 1997: Teller
June 1997 – June 1999:
Deputy Manager of Cat Linh
Transaction Office
June 1999 – May 2001:
Senior of Internal Supervision
and Audit Department
May 2001 – May 2007: Chief
Accountant
May 2007 – present: Deputy
CEO
OUR Organization
Ms. Duong Thi Thuy
Ms. Duong Thi Thu Thuy
Mr. Phan Ngoc Hoa
Ms. Nguyen Thi Bich Thuy
Deputy ceo
Master of Business
Administration, Bachelor
of Sciences – Electronics
and Computer,
Bachelor of Electronic
Telecommunication
Technology
Deputy ceo
Bachelor of Banking and
Finance
Deputy ceo
Bachelor of Banking and Finance
Deputy ceo
Master of Banking and
Finance
February 1996 – February 2001:
Officer of Information
Accounting Department,
VPBank Head Office
December 2004 – April 2009:
Manager of VPBank Ha Noi
October 1999 – April 2001:
Deputy Head of Investment and
Credit Department, VPBank
HCMC
April 2009 – December 2010:
Deputy CEO, and Manager of
VPBank Ha Noi
May 2001 – February 2002:
Acting Head of Retail Banking
Department, VPBank HCMC
December 2010 – present:
Deputy CEO, and Manager
of VPBank Main Transaction
Office
March 2002 – April 2004: Head
of Individual Banking Department,
VPBank HCMC
February 2001 – August 2002:
Acting Director of Informatics
Center
August 2002 – February 2008:
Director of Informatics Center
February 2008 – present:
Deputy CEO, concurrently
Director of Informatics Center.
May 2002 – November 2004:
Head of Corporate Banking
Department, VPBank Head
Office
August 1994 – September 1999:
Officer of Investment and Credit
Department, VPBank HCMC
June 2010 – present:
Deputy CEO
May 2004 – December 2004:
Deputy Director, VPBank HCMC
January 2005 – July 2006:
Deputy Director, Saigon VPBank
August 2006 – January 2010:
Director, Saigon VPBank
February 2010 – present: Deputy
CEO, in charge of VPBank’s
operations in the Southern region.
Annual Report 2010
107
OUR Organization
Brief resumes of members of Board of Management
List of VPBank’s Board of Directors
No.
Full name
Position
1
Nguyen Hung
Chieft executive officer (CEO)
2
Nguyen Thanh Binh
Deputy CEO
3
Vu Minh Quynh
Deputy CEO
4
Duong Thi Thu Thuy
Deputy CEO
5
Phan Ngoc Hoa
Deputy CEO
6
Duong Thi Thuy
Deputy CEO
7
Nguyen Thi Bich Thuy
Deputy CEO
8
Low Boon Keng Howard
Deputy CEO
9
Marek Hovorka
Deputy CEO
Replacement of chief executive officer (CEO) in the year
Full name
Position
Details
Mr. Nguyen Dinh Long
Deputy CEO and Director of Back-office
Center in HCMC area.
Resigned on 1 February 2010
Mr. Phan Ngoc Hoa
Deputy CEO
Ms. Nguyen Thi Bich Thuy
Deputy CEO
Appointed on 10 June 2010
Mr. Marek Hovorka
Deputy CEO
Appointed on 5 October 2010
Mr. Low Boon Keng Howard
Deputy CEO
Resigned on 1 March 2011
Benefits of the Board of Directors: salaries, bonuses and other benefits
VPBank offer appropriate and competitive salary to the Board of Management as well as high-level managers
according to their capabilities, performance and achievements. In addition, other benefits were also ensured,
such as health and accident insurance (VPBank Care), life insurance and company vehicles, etc.
108
OUR Organization
Number of managers, employees
and labor policies
Number of managers and employees
As of 31 December 2010, VPBank has a total of
2,700 managers and employees as below:
Position
Number
Manager
480
Employee
2,220
Total
2,700
Education level
Number
Master
Barchelor
30
2,171
College, professional
school
314
High school
185
Total
2,700
Labor policies
During the period of operation and development,
every VPBank’s success was made by its staff’s
efforts, devotion and dedication. Being aware that
human resouces is an important and key factor for
its progress, VPBank is always improving its human
resources policies, offering favorable treatment to
retain and attract talented and virtuous people.
Staff Training
Since its establishment, VPBank has paid much
attention to staff training. VPBank aims to implement
in-depth training courses and promote the staff’s
proefssional development. The bank seeks to build
and develop employees who are skilled, professional,
enthusiastic in serving customers and morally upright
with regards to business ethics so as to strengthen
VPBank’s brand name.
In 2010, VPBank organized 119 training courses for
3,122 participants (46 courses held by bank staff, 73
courses held by training partners). Those courses
focused on professional skills, suitable for most staff
and mainly organized at major locations.
Recruitment
VPBank always focuses and invests in its recruitment
activities to attract and select the best applicants
for each position. In 2010, VPBank has recruited
over 700 staff, who have sufficient qualification,
capability as well as professional skills and thorough
knowledge. Managers, who are quality talents that
would bring new vitality to the company, accounted
for 7.7% of total recruited staff.
Salaries
The Bank offers salary based on capability,
productivity and responsibility of each employee on
the basis of fairness and reasonableness, ensuring
competitive levels in the market. Besides the basic
salary, employees can also enjoy other fringe benefits
such as seniority allowance, toxicity allowance and
mobile phone allowance, etc.
Welfare
In VPBank, all official employees have insurance
plans such as social insurance, medical insurance
and unemployment insurance in compliance with
Labor Laws. In addition, VPBank has covered
health and accident insurance (VPBank Care) for all
employees.
Apart from welfare policies stipulated by the
Government, VPBank also regularly rewards its
employers on special occasions (e.g. Chinese Lunar
New Year, Independence Day, National Day, etc) and
company anniversary; providing lunch allowances
and uniforms to divisions dealing with customer
service.
The Bank also cares about employees’ physical
and spiritual life, such as giving gifts for employees
on their birthday, tours at the beginning of the year
and in summer, mini sports tournaments among
divisions in VPBank to foster colleagueship, learning
exchanges; International Children’s Day and MidAutumn Festival for employees’ children, etc.
In addition, the Labor Union pays close attention to
social events, often organizing community-oriented
activities such as helping flood victims, donating
to poor and handicapped children, supporting one
Vietnamese heroic Mother for life, one seriously
wounded Soldier and one dioxin victim, etc.
In addition, with support and sponsorships from foreign
shareholders, VPBank also allow qualified staff to
participate in training courses and internships abroad.
Annual Report 2010
109
OUR Organization
Personnel changes in the Board of Directors, Board of Management,
Board of Supervisors and Chief Account
Since 2010, changes in VPBank as follows:
Personnel Changes in the Board of Directors
Full name
Position
Details
Mr. Pham Ha Trung
Chairman
Dismissed on 16 March 2010
Mr. Ngo Chi Dzung
Chairman
Mr. Lo Bang Giang
Member
Mr. Lo Bang Giang
Vice Chairman
Mr. Tran Trong Kien
Member
Mr. Nguyen Quang A
Member
Mr. Ngo Ha Bac
Member
Ms. Nguyen Thi Nguyet Huong
Vice Chairman
Naturally terminated status on 21
October 2010
Mr. Soon Tit Koon
Member
Lost status on 7 January 2011
Personnel Changes in the Board of Supervisors
110
Chief Supervisor
Mr. Vu Hai Bang
Chief Supervisor
Mr. Vu Hai Bang
Member
Member
Ms. Phan Thi Thu Ha
Member
Mr. Tran Duc Ha
Member
SHAreholder's
information
Annual Report 2010
111
Shareholder's information
The Board of Directors/Chairman and the Board of Supervisors/Supervisor
Mr. Ngo Chi Dzung
Mr. Lo Bang Giang
Mr. Tran Trong Kien
Mr. Soon Tit Koon
Chairman of
Vice Chairman of
Board of Directors Board of Directors
Doctor of Economics
Bachelor of Economics
Vice Chairman of
Board of Directors
Master of Economics
Work experience in
VPBank:
Work experience in
VPBank:
Work experience in
VPBank:
Independent Member of
Board of Directors
Master of Business
Administration,
Bachelor of Medical Science
Member of Board
of Directors
Master of Business
Administration,
March 2010 – present:
Chairman of Board of
Directors in VPBank
April 2006 – December 2008: March 2010 – July 2010:
Member of Board of Directors Independent Member of
April 2009 – January 2011:
in VPBank
Board of Directors in VPBank March 2010 – present:
Board member (representative
Independent Member of Board of of OCBC shareholder)
December 2008 – present: July 2010 – present:
Directors in VPBank
Vice Chairman of Board of
Directors in VPBank
Directors in VPBank
112
Mr. Bui Hai Quan
Work experience in
VPBank:
Work experience in
VPBank:
Mr. Vu Hai Bang
Chief Supervisor
Doctor of Educational
Science, Master of
Business Administration
Specialized Member of
Bachelor of Sciences,
Member of Board of
Supervisors
Bachelor of Laws
Work experience in VPBank:
March 2010 – present:
Chief Supervisor in VPBank
March 2010 – present: Specialized
Member of Board of Supervisors
1998 -2002: Member of Board of
Directors in VPBank
2002 – March 2010:
Chief Supervisor in VPBank
March 2010 – April 2011:
in VPBank
Annual Report 2010
113
The Board of Directors/Chairman and the Board of Supervisors/Supervisor
Members and the structure of Board of Directors, Board of Supervisors
The structure of Board of Directors as of 31 December 2010:
No.
Full Name
Position
1
Mr. Ngo Chi Dzung
Chairman of Board of Directors
2
Mr. Bui Hai Quan
Vice Chairman of Board of Directors
3
Mr. Lo Bang Giang
Vice Chairman of Board of Directors
4
Mr. Tran Trong Kien
Independent member of Board of Directors
5
Mr. Soon Tit Koon
Member of Board of Directors
Operation of Board of Directors
The Board of Directors is the administrative unit with
full powers to carry out rights and responsibilities
on behalf of VPBank. In the last year, the Board of
Directors actively performed a number of activities as
follows:
Successfully organized the Annual General Meeting
(AGM) and election of new Board of Directors and
Board of Supervisors for the term 2010 – 2015.
Organized regular meetings of the Board of Directors
to propose important resolutions to VPBank’s
operation.
Fulfilled the resolutions of the Annual General Meeting
(AGM) in 2010: increased chartered capital to 4,000
billion VND; achieved the proposed targets and plans
(i.e. earned VND 663 billion in profit or 102% that of
target; total assets of VND 59,807 billion or 123% that
of target; NPL at 1.2%, meeting the target of under 2%).
Last year, the Board of Directors has also made a
number of important decisions such as changing its
name and logo, expanding its network, restructuring
all divisions and departments in the Head Office,
coordinating with prestigious consultancy agencies
to restructure the bank, setting up internal processes
and regulations to control activities, etc.
Operation of non-executive, independent
member of Board of Directors
The independent member of the Board of Directors
acts as a check-and-balance, ensuring that the
bank operates in a transparent manner, proving
that decisions made by the board are objective, for
the bank’s best interests and reducing possibilities
of conflicts of interest in relation to the Bank’s daily
operation.
114
The Board of Directors includes 2 independent
members, one of whom was appointed Vice
Chairman of the Board of Directors. The independent
members not only participate in the decision-making
with the Board of Directors but also perform the duty
of an independent member – supervising the process
and checking votes of the Board of Directors.
Operation of other specific Committees in
the Board of Directors
► Credit Committee: responsible for granting credit,
endorsing credit limits that are higher than the
permitted limit at the branches’ Credit Offices,
endorsing the application of debt disposition
measures, interest reduction or exemption,
proposing and submitting initiatives to the Board
of Directors for setting credit policy and managing
credit risk bank-wide.
►Investment Committee: Responsible for assessing
the Bank’s investment projects, submitting to
authorized officials to make investment decision,
determining investment scope when it exceeds
that of the Investment Office.
►ALCO Committee: responsible for managing
the balance sheet structure of the bank, setting
and supervising financial and credit targets in
conformity with the Bank’s business strategies.
► Reward Committee: responsible for evaluating
and deciding on rewards for VPBank’s employees
with excellent achievements or individuals and
teams that have made significant contributions to
VPBank’s business operation.
► Technology Steering Committee: responsible
for evaluating and deciding on the Bank’s
information technology policies and strategies,
including major projects, investment and annual
budget plans for information technology.
► Technical Support Committee: on behalf of
VPBank’s Board of Directors, coordinates with
other members of OCBC strategic partners in the
implementation of technology support programs
in areas of risk management, retail bank service,
monetary trading and management, bank
management, etc.
► Human Resources Committee: consults the
Board of Directors on issues regarding personnel
of the Board of Directors, Board of Supervisors;
decide on issues regarding the Bank’s high-level
managers and on human resources policies.
Operation of the Board of Supervisors/
Supervisors
The Board of Supervisors are responsible for
checking financial operation and internally audit
each area periodically, so as to accurately assess
business operation and current status of bank finance
by coordinating between the Board of Supervisors,
members of the Board of Directors and members of
the Board of Management.
In 2010, the Board of Supervisors accomplished the
following: restructured the internal audit department
for the purpose of specialization and in conformity
with the bank’s development progress; established
and issued a set of audit business ethics and internal
audit process, which functions as a guideline for
internal audit; carried out 90 individual audits, of which
60 audits were performed in Branches level 1, HO
Departments/Divisions, subsidiaries; participated in
dealing with customers’ complaints.
In addition, the Board of Supervisors was also
responsible for supervising activities of the Board of
Directors and the Bank. The supervisory duty was
carried out in all banking operations with information
updated by banking software systems and specific
documents issued by authorized managers. Any
mistake during the process of operations was
discovered and promptly corrected. Some risky
issues discovered in the process of supervision were
identified for a thorough check and proper solutions.
Plans to boost bank management efficiency
In the plans for 2011, the Board of Directors of VPBank
will appoint more BOD members and restructure
BOD supporting divisions to boost efficiency of bank
management. The Board of Directors have been
completing operation processes, supplementing and
modifying statutes of inspection and supervision in
accordance with regulations stipulated by regulatory
offices and the Bank’s operation requirements from
time to time. The Board has also coordinated with its
strategic partner OCBC on areas of risk management,
retail bank service, bank management training, etc.
The Board will continue to deploy the transformation
project with the support¬ of prestigious management
consultancy companies. This strategic and
breakthrough transformation project will obviously
have significant influence throughout the Bank, and
will surely bring economic benefits to VPBank’s
individuals and members, etc.
Remunerations, fringe benefits and
expenses for members of Board of
Directors/Board of Members/Chairman
and members of Board of Supervisors/
supervisors.
Remunerations for members of the Board of
Directors and Board of Supervisors are paid based
on unanimous agreement by all members. Under
the decision of the Annual General Meeting (AGM),
total remuneration paid for the Board of Directors and
Board of Supervisors in 2010 was 4.5 billion VND
and was fully paid in 2010.
In addition, the members of the Board of Directors
and Board of Supervisors were reimbursed
for travelling, meal, accommodation and other
reasonable expenses according to actual expenses
when carrying out their assigned tasks. Under the
regulations, remunerations and other expenses for
the Board of Directors and Board of Supervisors
in 2010 will be written in a separate section in the
Financial Statement and reported in the Annual
General Meeting (AGM) in 2011.
Annual Report 2010
115
Number of members of the Board of Directors/Board of Members, Board of Supervisors/
Supervisors obtaining Certificates of Corporate Governance
Board of Directors
No
Full name
Position
Degree
1
Ngo Chi Dzung
Chairman of Board of Directors
Doctor of Economics
2
Bui Hai Quan
Directors
4
Soon Tit Koon
Member of Board of Directors
Master of Business Administration
5
Lo Bang Giang
Independent Member of Board of
Directors
Master of Economics
6
Tran Trong Kien
Independent Member of Board of
Directors
Master of Business Administration
No
Full name
Position
Degree
1
Nguyen Quynh Anh
Chief Supervisor
2
Trinh Thi Thanh Hang
Specialized Supervisor of Board
of Supervisors
Master of Business Administration,
Master of Educational Science
Bachelor of Science, Bachelor of
Economics
3
Vu Hai Bang
Bachelor of Laws
Percentage of share ownership and changes in percentage of shares held by members of the Board of Directors
As of 31 December 2010
No
Full name
1
Ngo Chi Dzung
2
Bui Hai Quan
3
Soon Tit Koon
4
Lo Bang Giang
5
Tran Trong Kien
Position
Directors
Directors
Member of Board of
Directors
Board of Directors, Vice
Directors
Board of Directors
In 2010, VPBank raised its chartered capital
twice, as follows:
The first time: paid dividends by stocks and bonus
stocks with total percentage of 16.01% equally
divided among shareholders. The number of shares
owned by members was changed but the ratio of
share ownership remained the same.
116
Note
Percentage
of
ownership
Personal ownership
4.48%
Personal ownership
1.55%
Representative of OCBC’s
shares
14.88%
Personal ownership
0.14%
Personal ownership
0.10%
The second time: issued to public with the percentage
62.83%. Members bought all additional granted
shares on their own; therefore, the number of shares
owned by the member increased but the ratio owned
by each member remained unchanged.
Also, in 2010, Mr. Ngo Chi Dzung raised his
ownership from 0.21% to 4.48% by acquiring shares
from other shareholders within the Bank.
Information about share transaction/transfer of equity by the members of the Board of Directors, the Board of
Management, the Board of Supervisors, major shareholders and other transactions among members of the
Board of Directors, the Board of Management, the Board of Supervisors and other related people.
In 2010
Number
of times
Number of shares
Buying
303
78,008,565
Selling
11
14,204,458
Buying
difference
63,804,107
Information of contracts or transactions signed with the Bank by the members of the Board of Directors, the
Board of Management, the Board of Supervisors and other related people.
In 2010, the Bank issued guarantee letters backed with collaterals valued at USD 20,000,000 to execute a
contract for Thien Minh Tourist Joint Stock Company where Mr. Tran Trong Kien –independent member of the
VPBank’s Board of Directors acts a chairman.
This guarantee amount is within limit under the regulations of the State Bank and fully backed by collaterals.
Statistical data on domestic shareholders/capital contributing members
Structure of VPBank’s shareholders
No
Type of shareholders
Number of
shareholders
Number of shares
Percentage
I
Institutional shareholders
47
129,333,526
32.33%
1
Joint Stock company
29
101,070,276
25.27%
2
Limited Liability company
9
26,321,148
6.58%
3
State-owned company
0
0
0
4
Bank
0
0
0
5
Other economic organizations
II
Individuals
III
Foreign shareholders
Total
9
1,942,102
0.49%
3967
211,165,549
52.79%
1
59,500,925
14.88%
4015
400,000,000
100%
Annual Report 2010
117
Government capital contributing shareholders/members
VPBank had no governmental shareholder
Foundation capital contributing shareholders
VPBank has been established for over 18 years. Therefore, there is no limitation on share transfer to foundation
shareholders. VPBank’s foundation shareholders have transferred their all shares in VPBank, except the following
shareholders:
Name of
Shareholder
DOB
Address
Number of
shares
Percentage/
chartered
capital
Nguyen Quang A
17/10/1946
No. 19, Doan Nhu Hai,
Ha Noi
1,681,735
0.42%
Foreign capital contributing shareholders, members
Name of
Shareholder
Address
Industry
Number of
shares
Percentage
of ownership
Oversea
Chinese Banking
Corporation LTD
No. 65, Chulia street,# 2900, OCBC building, 049513
Singapore
Banking, finance
59,500,925
14.88%
In 2010, the number of shares owned by OCBC changed twice as follows:
The first time: Increased from 31,497,676 to 36,541,435 shares because VPBank paid dividends by stocks and
divided bonus stocks with the percentage of 16.01%.
The second time: Increased from 36,541,435 to 59,500,925 shares because VPBank sold its securities to
existing shareholders with the percentage of 62.83%
118
VPBANK
WITH COMMUNITY
Annual Report 2010
119
VPBank With Community
In addition to business development and its
objectives to provide customers with better banking
and financial products/services, VPBank has always
aspired to contribute toward the local community and
bring Prosperity to Vietnam and the people since its
establishment.
For many years, VPBank has supported and take
care of Vietnamese Heroic Mothers, families involved
in Socialist Revolution, orphans, etc.
On 12 August 2010, along with the launch of its
new brand identity,VPBank officially established the
Prosperity Scholarship Fund, which will be offered to
outstanding students in the Banking Institution, the
University of National Economics and the University
of Foreign Trade. These activities demonstrated
VPBank’s care for young generations, whom the bank
believes are valuable resources for the country’s
future development.
120
In addition, to help the Central area heavily damaged
by the flood in October 2010, VPBank immediately
donated a total of VND500 million to local people in
the three affected provinces, namely Nghe An, Ha
Tinh and Quang Binh via funds of the newspapers
(i.e. Tien Phong, Thanh Nien and Dan Tri). VPBank’s
employees in Nghe An, Ha Tinh and Quang Binh
provinces also went to the affected areas to distribute
food and basic necessities.
At the end of 2010, VPBank launched the program
“The Action Month for the poor” to all bank leadership
and employees. This program will become an annual
activity of VPBank going forward. Sponsored by
the bank union, the program offers all employees
an opportunity to demonstrate their concerns and
responsibility for social community. VPBank aim at
not only financial stability, but also active participate
in social charity for the better Prosperity of the
Vietnamese.
NETWORK
DEVELOPMENT
Annual
Report
2010 121
121
Annual
Report
2010
Network DEVELOPMENT
HEAD OFFICE
Transaction Offices
8 Le Thai To, Hoan Kiem
8 Le Thai To, Hoan Kiem
HA NOI
Tel: 04.39288869
Tel: 04.39288869
Branches/Transaction Offices
122
VPBank Ha Noi
VPBank Cat Linh
VPBank Tran Hung Dao
VPBank Trang An
VPBank Yen Phu
VPBank Thuy Khue
VPBank Kham Thien
VPBank Ton Duc Thang
VPBank Tran Xuan Soan
VPBank Doi Can
VPBank Linh Đam
VPBank Ba Đinh
4 Da Tuong, Hoan Kiem
20A Cat Linh, Dong Da
97 Tran Hung Dao, Hoan Kiem
12 Dien Bien Phu, Hoan Kiem
46 Yen Phu, Tay Ho
152 Thuy Khue, Tay Ho
92 Kham Thien, Dong Đa
214 Ton Duc Thang, Dong Đa
66 Tran Xuan Soan, Hai Ba Trung
279 Doi Can, Ba Đinh
19BT1 Linh Đam, Hoang Mai District
450 Hoang Hoa Tham, Tay Ho District, HN
Tel: 04.39423635
Tel: 04.37343961
Tel: 04.39428139
Tel: 04.37478322
Tel: 04.37151922
Tel: 04.37280931
Tel: 04.35189774
Tel: 04.35131969
Tel: 04.39446910
Tel: 04.37226171
Tel: 04.35401864
Tel: 04.32474050
VPBank Dong Do
VPBank Hang Buom
VPBank Hai Ba Trung
VPBank Ba Trieu
VPBank Bach Khoa
VPBank Minh Khai
VPBank Dong Tam
VPBank Giai Phong
VPBank Nguyen Huu Huan
VPBank Dai Kim
VPBank Hao Nam
362 Pho Hue, Hai Ba Trung
118 Hang Buom, Hoan Kiem
182A Lo Duc, Hai Ba Trung
99 Ba Trieu, Hai Ba Trung
92 Le Thanh Nghi, Hai Ba Trung
534 Minh Khai, Hai Ba Trung
168 Tran Dai Nghia, Hai Ba Trung
667-669 Giai Phong, Hoang Mai
98 Nguyen Huu Huan, Hoan Kiem
A5-C8, Dai Kim New Urban, Thanh Xuan
102 Hao Nam, Dong Da District, HN
Tel: 04.39744107
Tel: 04.39288869
Tel: 04.39721928
Tel: 04.39743861
Tel: 04.38692828
Tel: 04.36335874
Tel: 04.36288392
Tel: 04.36648852
Tel: 04.39264022
Tel: 04.35400525
Tel: 04.35134353
VPBank Ngo Quyen
VPBank Hoan Kiem
VPBank Chuong Duong
VPBank Nguyen Bieu
VPBank Ngoc Lam
VPBank Hang Giay
VPBank Dong Anh
VPBank Xuan La
39A Ngo Quyen, Hoan Kiem
4 Hàm Long, Hoan Kiem
498 Nguyen Van Cu, Long Bien
8 Nguyen Bieu, Ba Dinh
172 Ngoc Lam, Long Bien
37 Hang Giay
16 Slot 4 Dong Anh Trade Center
16 Xuan La, Tay Ho
Tel: 04.22205088
Tel: 04.39350582
Tel: 04.22207500
Tel: 04.37347094
Tel: 04.38736212
Tel: 04.39274790
Tel: 04.39655202
Tel: 04.37586306
VPBank Thang Long
VPBank Cau Giay
VPBank Pham Van Dong
VPBank My Dinh
VPBank Hoang Quoc Viet
VPBank Tran Duy Hung
VPBank Lieu Giai
VPBank Thanh Cong
VPBank Nam Thang Long
VPBank Yen Hoa
VPBank Tu Liem
VPBank Nguyen Tuan
M3-M4 Nguyen Chi Thanh, Dong Da
2 Nguyen Khanh Toan, Cau Giay
KM9 Pham Van Dong, Cau Giay
First floor, CT1-1 Department, Me Tri Ha Urban area, Tu Liem
184 Hoang Quoc Viet, Cau Giay
73 Tran Duy Hung, Cau Giay
40 Lieu Giai, Ba Đinh
22 Thanh Cong, Ba Đinh
4 CT17 Trading center, Nam Thang Long Urban area
50 Trung Yen 1, Cau Giay, Ha Noi
N1H1 My Đinh car station, Tu Liem, Ha Noi
163 Nguyen Tuan, Quan Thanh Xuan
Tel: 04.62662577
Tel: 04.37672474
Tel: 04.37920015
Tel: 04.37875006
Tel: 04.37557516
Tel: 04.35563094
Tel: 04.37622626
Tel: 04.37725523
Tel: 04.37588745
Tel: 04.37834733
Tel: 04.39385111
Tel: 04.35579491
VPBank Kinh Đô
VPBank Giang Vo
VPBank Thanh Xuan
VPBank Kim Lien
VPBank Le Trong Tan
VPBank Trung Hoa - Nhan Chinh
VPBank Ly Nam De
VPBank Ha Tay
VPBank Nga Tu Vong
VPBank Van Quan
292 Tay Son, Dong Da
209 Giang Vo, Dong Da
601 Nguyen Trai, Thanh Xuan
61 Xa Dan, Dong Đa
56 Le Trong Tan, Thanh Xuan
17T6 Department, Hoang Dao Thuy, Trung Hoa Nhan Chinh Urban area
36C Ly Nam De, Hoan Kiem
118 Quang Trung, Ha Dong
61 Truong Chinh, Dong Da District
A16 - TT9, Van Quach Urban area, Nguyen Khuyen, Ha Dong
Tel: 04.35378701
Tel: 04.35121178
Tel: 04.35524968
Tel: 04.35771881
Tel: 04.35665338
Tel: 04.62812650
Tel: 04.37478696
Tel: 04.33552701
Tel: 04.36291051
Tel: 04.73057314
Network DEVELOPMENT
VPBank Bac Ninh
VPBank Tu Son
Bac Ninh
253 Ngo Gia Tu, P.Suoi Hoa
317 Tran Phu, Tu Son, Bac Ninh
Tel: 0241.3893686
Tel: 0241.3761112
VPBank Bac Giang
VPBank Ngo Gia Tu
VPBank Hiep Hoa
VPBank Le Loi
Bac Giang
303 Le Loi, Bac Giang City
2 Ngo Gia Tu, Tran Phu Ward
45 19/5 Street, Thang Town, Hiep Hoa
208 Le Loi, Bac Giang City
Tel: 0240.3555565
Tel: 0240.6252588
Tel: 0240.3863544
Tel: 0240.3556633
VPBank Vinh Phuc
VPBank Phuc Yen
VPBank Vinh Tuong
Vinh Phuc
1 Me Linh, Vinh Yen Town
26 Hung Vuong Street, Phuc Yen Town
Zone 2, Tho Tang Ward, Vinh Tuong District
Tel: 0211.3720138
Tel: 0211.3530378
Tel: 0211.3791887
VPBank Thai Nguyen
Thai Nguyen
590 Luong Ngoc Quyen, Dong Quang Ward
Tel: 0280.3656769
VPBank Phu Tho
VPBank Tien Cat
Phu Tho
2040 Hung Vuong Avenue, Viet Tri City
1421 Hung Vuong Avenue, Viet Tri City
Tel: 0210.6250269
Tel: 0210.6258015
VPBank Hai Duong
VPBank Cam Giang
Hai Duong
216-218 Le Thanh Nghi
Highway 5, Gach Hamlet, Lai Cach Town, Cam Giang
Tel: 0320.3837808
Tel: 0320.3783821
VPBank Hai Phong
VPBank Nga Sau
VPBank Le Chan
VPBank Lach Tray
VPBank Kien An
VPBank Quang Trung
VPBank Thuy Nguyen
VPBank Truong Trinh
Hai Phong
31-33 Pham Ngu Lao, Ngo Quyen
12 Da Nang Street, Ngo Quyen
230-232 To Hieu, Le Chan
276B Lach Tray
125 Tran Thanh Ngo, Kien An
70 Quang Trung, Hong Bang
26 Da Nang Street, Nui Deo, Thuy Nguyen
173 Truong Trinh, Lam Ha Ward, Kien An District
Tel: 031.3757799
Tel: 031.3552533
Tel: 031.3955904
Tel: 031.3847355
Tel: 031.3577756
Tel: 031.3521068
Tel: 031.3642624
Tel: 031.3545118
VPBank Quang Ninh
VPBank Cam Pha
VPBank Mong Cai
Quang Ninh
158 Le Thanh Tong, Ha Long City
308 Tran Phu Street, Cam Pha Ward, Quang Ninh
6 Hung Vuong, Tran Phu Ward, Mong Cai City, Quang Ninh
Tel: 033.3657668
Tel: 033.3723818
Tel: 033.3789959
VPBank Nam Đinh
VPBank Lac Quan
VPBank Do Quan
Nam Đinh
69 Le Hong Phong
Co Le Town, Truc Ninh District
Km2 Đang Xuan Bang, Nam Phong
Tel: 0350.3834834
Tel: 0350.3935961
Tel: 0350.3857889
VPBank Thai Binh
VPBank Tran Phu
Thai Binh
259M Le Quy Don, Bo Xuyen Ward
Number 6, Block 7, Quang Trung Ward, Thai Binh City
Tel: 036.3642159
Tel: 036.3648699
VPBank Hoa Binh
Hoa Binh
139 Cu Chinh Lan Street, Phuong Lam Ward
Tel: 0218.3897068
Annual Report 2010
123
Network DEVELOPMENT
124
VPBank Thanh Hoa
VPBank Bim Son
VPBank Nguyen Trai
VPBank Sam Son
Thanh Hoa
27-29 Le Loi Avenue
18 Nguyen Hue Street, Bim Son Province
306 Nguyen Trai Street, Tân Sơn Ward
47 Nguyen Du Street, Sam Son Province
Tel: 037.3725856
Tel: 037.3771595
Tel: 037.6252003
Tel: 037.3827025
VPBank Nghe An
VPBank Cho Vinh
VPBank Nguyen Van Cu
VPBank Cua Đong
Nghe An
A Department, C1 Urban area, Quang Trung Street, Vinh City
2 Cao Thang Street, Hong Son Ward, Vinh City
157 Nguyen Van Cu Street, Vinh City
99 Nguyen Phong Sac Street, Vinh City, Nghe An
Tel: 038.3588979
Tel: 038.3581631
Tel: 038.3589427
Tel: 038.3529555
VPBank Quang Binh
VPBank Quang Trach
VPBank Bo Trach
QuAng Binh
108 Tran Hung Dao Street, Dong Hoi City
Street 12, Quang Trach District
Hoan Lao Town, Bo Trach District, Quang Binh Province
Tel: 052.3846969
Tel: 052.3518989
Tel: 052.6257999
VPBank Ha Tinh
VPBank Ky Anh
Ha Tinh
2 Vu Quang Street, Ha Tinh City
Block 3, Ky Anh Town, Ky Anh District, Ha Tinh Province
Tel: 039.3693698
Tel: 039.3730899
VPBank Hue
VPBank Vy Da
VPBank Dong Ba
VPBank Mai Thuc Loan
VPBank Phu Hoi
Hue
64 Hung Vuong Street
228 Nguyen Sinh Cung Street
165 Tran Hung Dao Street
91 Mai Thuc Loan Street
39 Nguyen Thai Hoc Street, Hue
Tel: 054.3814646
Tel: 054.3897171
Tel: 054.3571717
Tel: 054.3545556
Tel: 054.3943939
VPBank Quag Tri
VPBank Vinh Linh
Quang Tri
16 Hung Vuong Street, Dong Ha Town
Ho Xa Town, Vinh Linh, Quang Tri Province
VPBank Da Nang
VPBank Le Duan
VPBank Dien Bien Phu
VPBank Dong Da
VPBank Nguyen Tri Phuong
VPBank Nui Thanh
VPBank Son Tra
Da Nang
112 Phan Chu Trinh Street
215 Le Duan Street
567 Dien Bien Phu Street
318 Dong Da Street, Hai Chau District
5 Nguyen Huu Tho Street, Hai Chau District
429 Nui Thanh Street
1088 Ngo Quyen Street, Son Tra District, Da Nang City
Tel: 0511.3835090
Tel: 0511.3751155
Tel: 0511.3758939
Tel: 0511.3531466
Tel: 0511.3614607
Tel: 0511.3621371
Tel: 0511.3946797
VPBank Binh Dinh
VPBank Nguyen Thai Hoc
Binh dinh
106-108 Phan Boi Chau Street, Quy Nhon City
390A-390B Nguyen Thai Hoc Street, Quy Nhon City, Binh Dinh
Tel: 056.3810029
Tel: 056.3647168
VPBank Nha Trang
VPBank Binh Tan
Nha Trang
26 Yersin Street
582 Le Hong Phong Street, Phuoc Long Ward, Binh Tan
Tel: 058.3561888
Tel: 058.3880101
VPBank Binh Thuan
Binh Thuan
NaiWard, Phan Thiet City
132 Tran Hung Dao Street, Đồng
Phu Thuy
Tel: 062.3835618
Tel: 053.3556883
Network DEVELOPMENT
VPBank District 10
Ho Chi Minh
Fideco Building, 81-83-85 Ham Nghi Street, District 1
300 Hai Ba Trung Street, District 3
341 Le Quang Dinh Street, Binh Thanh District
112 Vo Van Ngan Street, Thu Duc District
199 Khanh Hoi Street, District 4
659 Xo Viet Nghe Tinh Street, Binh Thanh District
352 Huynh Tan Phat Street, District 7
299-301 Nguyen Thien Thuat Street, Ward 1, District 3
29 Cong Hoa Street, Tan Binh District
204 Ho Van Hue Street, Phu Nhuan District
1473(D1-D6) My Toan 1 Block, Nguyen Van Linh Street, District 7
288-290 Le Van Sy Street, District 3
244 Xo Viet Nghe Tinh Street, Binh Thanh District
116 Nguyen Cong Tru Street, District 1
124B Nguyen Thai Son Street, Ward 3, Go Vap District
638-640 Nguyen Thi Đinh Street, Thanh My Loi Ward, District 2
151 No Trang Long Street, Ward 12, Binh Thanh District
129 Nguyen Tri Thanh Street, Ward 9, District 5
611A,B,C Luy Ban Bich Street, Tan Phu District
10 Phan Dinh Giot, Tân Bình District
611 Cach Mang Thang Tam Street, District 10
26 Hoang Hoa Tham Street, Tan Binh District
83 Pham Van Hai Street, Tan Binh District
3 Phu Lam Market Block, District 6
79 Bui Huu Nghia, District 5
54 Tran Binh Street -57 Thap Muoi Street, District 6
211-213 Hau Giang, District 6
313 An Duong Vuong Street, District 5
623 Quang Trung Street, Go Vap District
24/44C Truong Chinh Street, TTN Ward, District 12
357-359 Pham Hung Street, Hamlet 4, Binh Hung Town,
Binh Chanh Ward
296 Street 3/2, Ward 12, District 10
VPBank Long An
VPBank Ben Luc
Long An
6 Le Cao Dong Street, Tan An Town
83 Nguyen Huu Tho, Ben Luc Town, Long An Province
Tel: 072.3524524
Tel: 072.3637696
VPBank Can Tho
VPBank Hung Loi
VPBank Binh Thuy
Can Tho
26-28 Hoa Binh Avenue, District Ninh Kieu
231T Street 3/2, District Ninh Kieu
C4 Cach Mang Thang Tam Street, An Thoi Ward, Binh Thuy District
Tel: 0710.3815766
Tel: 0710.3780456
Tel: 0710.3768788
VPBank Dong Thap
Đong Thap
67-69 Nguyen Hue Street, Ward 1, Cao Lanh City
Tel: 067.3876123
VPBank Vinh Long
Vinh Long
53A Pham Thai Buong Street, Ward 4, Vinh Long City
Tel: 070.3853854
VPBank Ho Chi Minh
VPBank Tan Dinh
VPBank Ba Chieu
VPBank Thu Duc
VPBank Khanh Hoi
VPBank Binh Thanh
VPBank Huynh Tan Phat
VPBank Nguyen Thien Thuat
VPBank Cong Hoa
VPBank Phu Nhuan
VPBank Phu My Hung
VPBank Le Van Sy
VPBank Hang Xanh
VPBank Nguyen Cong Tru
VPBank Nguyen Thai Son
VPBank Thanh My Loi
VPBank No Trang Long
VPBank Sai Gon
VPBank Tan Phu
VPBank Tan Binh
VPBank Hoa Hung
VPBank Hoang Hoa Tham
VPBank Pham Van Hai
VPBank Phu Lam
VPBank Bui Huu Nghia
VPBank Cho Lon
VPBank Hau Giang
VPBank An Duong Vuong
VPBank Thong Nhat
VPBank An Suong
VPBank Chanh Hung
VPBank An Giang
An Giang
132 Tran Hung Dao Street , My Binh Ward, Long Xuyen City,
An Giang Province
Tel: 08.38210076
Tel: 08.54046521
Tel: 08.35158893
Tel: 08.37222182
Tel: 08.39414191
Tel: 08.62581376
Tel: 08.38722876
Tel: 08.38390313
Tel: 08.62966503
Tel: 08.62929063
Tel: 08.54122094
Tel: 08.35262301
Tel: 08.54456701
Tel: 08.54042738
Tel: 08.54461233
Tel: 08.54027942
Tel: 08.5445 3844
Tel: 08.62650128
Tel: 08.39735210
Tel: 08.39970088
Tel: 08.38646092
Tel: 08.39485827
Tel: 08.39910980
Tel: 08.38778056
Tel: 08.39240363
Tel: 08.38547038
Tel: 08.39608893
Tel: 08.38303490
Tel: 08.39210242
Tel: 08.35921833
Tel: 08.37580686
Tel: 08.39797549
Tel: 076.3855724
VPBank Kien Giang
Kien Giang
4 Tran Phu Street, Rach Gia City, Kien Giang Province
Tel: 077.3948111
VPBank Vung Tau
Vung Tau
No. 13, 15 floor Trade Center, Nguyen Thai Hoc Street, Vung Tau City
Tel: 064.3577272
VPBank Binh Duong
VPBank Dong Nai
VPBank Ho Nai
Binh Duong
557 Binh Duong Avenue, Hiep Thanh Ward, Thu Dau Mot Town,
Binh Duong Province
Dong Nai
221 Highway 15, Bien Hoa City
643 Ngu Phuc Hamlet, Ho Nai 3 Ward, Trang Bom District, Dong Nai
Tel: 0650.3683979
Tel: 061.3948958
Tel: 061.8889379
Annual Report 2010
125

Annual Report of 2010

Transcription

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