Page 1

CUSTOMER ORIENTED

TAKE WING FOR THE FUTURE


CONTENTS

04 MESSAGE OF THE BOARD OF DIRECTORS’ CHAIRMAN 06 MESSAGE OF THE CHIEF EXECUTIVE OFFICER 07

CORPORATE INFORMATION 08 General information. 09 History and development. 14 Milestones in 2016. 15 Awards achieved in 2016. 16 Organization model. 17 Management structure. 18 Development orientations. 19 Risks.

21 BUSINESS PERFORMANCE IN 2016 22 Business performance in 2016. 23 Financial highlights. 24 Introduction about the Management. 30 Human resources and personnel policies. 38 Social and environmental impact report. 39 Local community related responsibility report. 40 Investment in Debt Management and Asset Exploitation Company (Eximbank AMC). 41 Number of shares and shareholding structure of Eximbank. 43

THE MANAGEMENT’S REPORTS AND ASSESSMENTS 44 Evaluation on business results. 60 Financial condition. 61 Improvements in organization structure, policy and management. 68 2017 business plan. 70 Social and environmental related assessment report.

71 THE BOARD OF DIRECTORS’ EVALUATION ON THE BANK’S PERFORMANCE 72 The Board of Directors’ evaluation on operational aspects of the Bank. 74 The Board of Directors’ evaluation on operational aspects of the Management. 75 Plans and orientations of the Board of Directors. 77 CORPORATE GOVERNANCE 78 Introduction about the Board of Directors. 81 Operations of the Board of Directors. 82 Operations of the Councils/Committees under the Board of Directors. 84 Introduction about the Board of Supervisors. 86 Operations of the Board of Supervisors. 88 Transactions, remunerations, and interests of the Board of Directors, the Board of Supervisors and the Management. 90

CONSOLIDATED FINANCIAL STATEMENTS 91 Corporate information. 92 Statement of the Board of Management. 93 Independent auditor’s report. 94 Consolidated balance sheet. 97 Consolidated statement of income. 98 Consolidated statement of cash flows. 100 Notes to the consolidated financial statements.

167 SEPARATE FINANCIAL STATEMENTS 168 OPERATION NETWORK

3


4

ANNUAL REPORT 2016 www.eximbank.com.vn


MESSAGE OF

THE BOARD OF DIRECTORS’ CHAIRMAN

F

irst of all, may I act on behalf of the Board of Directors, the Management and the whole staff and officers of Eximbank to extend gratitude and appreciation to valued shareholders, customers as well as partners for the trust, company, support and sharing with Eximbank over the past time.

Looking back the year 2016, in the context of difficulties of Eximbank and adverse news in the market, Eximbank’s businesses were still stable and gained positive results. Apart from resolving financial legacy issues and handling the risks, the Bank has made good progress with main indicators all growing compared to the previous year; pre-tax profit after resolution of financial legacy issues and provisioning for credit losses reaching 390.6 billion VND; and all prudential ratios complying with applicable regulations. In terms of governance, in parallel with handling a number of complex issues and challenges in the first year of the new term of office, the Board of Directors has fulfilled its responsibilities as regulated by laws and Eximbank’s Charter. The Board of Directors has always kept abreast of the situation, timely instructed and directed the activities of the Bank. The Board of Directors also held the Annual General Meeting of Shareholders (AGM) and planned to hold an extraordinary meeting in 2016 but failed to do so. In 2016, “New Eximbank” project was officially launched and communicated across the system. The Board of Directors has approved the orientations of the Bank’s restructuring with the vision, missions and core values of a “New Eximbank”, striving to bring Eximbank to become a quality-leading commercial bank in Vietnam driven by professionalism and integrity. The Board of Directors also issued Code of Ethics and Conduct to standardize conduct and action principles of various levels in the network.

TURNING TO 2017, BESIDE CONTINUING TO ADDRESS OUTSTANDING FINANCIAL ISSUES AND DISPOSE OF RISKS, THE BOARD OF DIRECTORS WILL CONCENTRATE ALL PRIORITIES TO STRENGTHEN ADMINISTRATION AND EXECUTIVE APPARATUS, PERFECT ORGANIZATION MODELS OF THE DIVISIONS, DEPARTMENTS, SECTIONS AT THE HEAD OFFICE AND BUSINESS UNITS TO ENHANCE MANAGEMENT AND OPERATION EFFICIENCY, ESTABLISH SPECIAL PILLAR TO FOCUS ON DEVELOPING EXIMBANK’S ADVANTAGES WHICH ARE TRADE FINANCE AND PAYMENT. The Board of Directors is also directing the evaluation of employees’ performance, setting up of treatment regimes to attract and grow good personnel, acceleration of Corebanking system transformation progress to modernize the bank’s technology and improve competitiveness. We do believe that proper orientations together with efforts of all Eximbank’s employees and core values having been defined shall serve as the foundation for Eximbank to successfully implement its strategic objectives and business plan in 2017, and accomplish the missions and realize the vision in a not far future. On behalf of the Board of Directors Chairman

LE MINH QUOC

5


MESSAGE OF

THE CHIEF EXECUTIVE OFFICER

2

016 was seen as a very tough year for Eximbank resulted from external factors and even internal outstanding problems of the bank itself. However, with the efforts of the Management Board and all staffs in the whole system, the bank’s operations has been step by step stabilized. Continuous decline in the past few years has ended and businesses have begun to flourish in most key operational areas.

The business results, especially the growth targets and business profits achieved by Eximbank in 2016 were still very modest compared to the market’s average levels, yet the bank’s performance clearly showed the trend of transparency in both adjustment of strategic objectives and administration solutions and perfection of internal regulations and procedures. Overall, last year, Eximbank has overcome the most difficult period and is gradually establishing solid foundation for sustainable development in the coming years.

6

ANNUAL REPORT 2016 www.eximbank.com.vn

Turning to 2017, Eximbank continues to adjust its operating orientations to focus on the main objectives being accelerating the handling of backlogs, developing customer segments and business areas of strength of the Bank, continuing to improve internal administration rules and procedures; on that basis, boosting operational efficiency, step by step expanding market share, improving financial capability to create premises for restoring the scale and position of the bank towards stable development objectives in the long run. In 2017, Eximbank sets its main business targets as total assets to rise by 16%; Funds raised from the market to increase by 17%; Credit exposure to grow by 14%; Expected profit before tax to surge by 60%. To realize the mentioned goals, the Board of Directors and the Management are concentrating on the implementation of the project of restructuring the bank comprehensively for the

development period of 20162020 aiming at bringing Eximbank to become one of the leading commercial banks in Vietnam driven by professionalism and integrity. On behalf of the Management and all employees of Eximbank, I would like to extend the sincerest thanks to esteemed shareholders, regulatory agencies, the State Bank of Vietnam and especially valued customers, for having always trusted in, accompanied with and assisted Eximbank over the past years. We do look forward to continuing to receive such kind support and sharing in the forthcoming time. On behalf of the Management Chief Executive Officer

LE VAN QUYET


KEEP ON RESTRUCTURING THE BANK WITH VISION, MISSIONS AND CORE VALUES OF “NEW EXIMBANK”, STRIVING TO BRING EXIMBANK TO BECOME A QUALITY-LEADING COMMERCIAL BANK IN VIETNAM DRIVEN BY PROFESSIONALISM AND INTEGRITY.

CORPORATE INFORMATION

08 General information. 09 History and development. 14 Milestones in 2016. 15 Awards achieved in 2016. 16 Organization model. 17 Management structure. 18 Development orientations. 19 Risks.

CORPORATE INFORMATION

7


GENERAL INFORMATION

Registered Vietnamese Name Registered English Name

: Ngân hàng Thương mại Cổ phần Xuất Nhập khẩu Việt Nam : Vietnam Export Import Commercial Joint Stock Bank (Vietnam Eximbank)

Chairman of the Board of Directors Acting Chief Executive Officer

: Mr. Le Minh Quoc : Mr. Le Van Quyet

Registered Head Office address : Level 8, Suite No. L8-01-11 + 16, Vincom Center 72 Le Thanh Ton, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam Office address : Level 8, Suite No. L8-01-11 + 16, Vincom Center 72 Le Thanh Ton, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam Tel : (84-8) 3821 0056 Fax : (84-8) 3821 6913 Website : www.eximbank.com.vn Regulator Auditor Address

: The State Bank of Vietnam : KPMG Limited Vietnam : Level 10, Sunwah Tower, 115 Nguyen Hue, District 1, Ho Chi Minh City, Vietnam

Date of first registration : Date of registration for the 27th modification : Authority of first registration : Business Operation License : Tax registration certificate number :

8

23/07/1992 19/04/2016 Department of Planning and Investment of Ho Chi Minh City 11/NH-GP dated 06/04/1992 0301179079

Stock information Stock name

: HoChiMinh Stock Exchange : Vietnam Export Import Commercial Joint Stock Bank (Eximbank)

Stock code

: EIB

ANNUAL REPORT 2016 www.eximbank.com.vn


HISTORY

AND DEVELOPMENT

ESTABLISHMENT Vietnam Export Import Commercial Joint Stock Bank is one of the first commercial joint stock banks of Vietnam, established on 24 May 1989 under Decision No. 140/CT by the Chairman of the Council of Ministers with the original name being Vietnam Export Import Bank. Vietnam Export Import Bank officially came into operation on 17 January 1990 and received its License of Operation No. 11/NH-GP dated 06 April 1992 by the Governor of the State Bank of Vietnam allowing the Bank to operate for a term of 50 years with the registered charter capital of 50 billion VND (equivalent to 12.5 million USD at the time of establishment) under the new name being Vietnam Export Import Commercial Joint Stock Bank (or “Eximbank” in short).

BUSINESS LINES EXIMBANK’S MAJOR BUSINESS LINES INCLUDE:

Short, medium and long term fund mobilization in form of savings deposits, payment deposits, certificates of deposit; Receipt of funds entrusted for investment; Receipt of funds from domestic and foreign credit institutions; Short, medium and long term lending; Discount of commercial papers and valuable papers; Foreign exchange trading; International settlements; Investment in securities and valuable papers;

Services of acquiring and issuing domestic cards, international Visa, MasterCard, and JCB cards; Cash services; Package financial services for overseas study; Financial advisory services; Corporate bond purchase; Gold bar trading; Custodian service; Other banking services, etc.

CORPORATE INFORMATION

9


HISTORY

AND DEVELOPMENT (continued)

208

BANKING UNITS

AT CITIES & PROVINCES NATIONWIDE

Operation Locations Eximbank has its Head Office located at Level 8, Suite No. L8-01-11+16, Vincom Center, 72 Le Thanh Ton, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam. At the end of 2016, Eximbank’s operation network comprises of 208 banking units at cities and provinces nationwide, including: 44 Branches, 163 Transaction Offices, and 1 Savings Fund.

CURRENTLY, EXIMBANK’S TRANSACTION NETWORK HAS COVERED 22 PROVINCES AND CITIES NATIONWIDE, INCLUDING HANOI, HAI PHONG, NGHE AN, QUANG NINH, QUANG NGAI, QUANG NAM, DA NANG, HUE, NHA TRANG, LAM DONG, DAC LAC, BINH PHUOC, BINH DUONG, DONG NAI, BA RIA - VUNG TAU, HO CHI MINH CITY, LONG AN, AN GIANG, TIEN GIANG, CAN THO, BAC LIEU AND KIEN GIANG.

Listing Eximbank obtained the approval from HoChiMinh Stock Exchange to list its shares from 20 October 2009 under Decision No. 128/QDSGDHCM.

10

Stock name

: Stock of Vietnam Export Import Commercial Joint Stock Bank

Stock type

: Common stock

Par value:

: VND10,000 per share

Total listed volume

: 1,235,522,904 shares

Total listed value

: 12,355,229,040,000 VND (as per par value)

ANNUAL REPORT 2016 www.eximbank.com.vn

12,355,229,040,000 VND

TOTAL LISTED VALUE (as per par value)


22

PROVINCES & CITIES NATIONWIDE

Hoang Sa Island

1,235,522,904

TOTAL LISTED VOLUME (SHARES)

Phu Quy Phu Quoc

Truong Sa Island Con Dao

CORPORATE INFORMATION

11


HISTORY

AND DEVELOPMENT (continued)

PROMINENT EVENTS

THROUGH YEARS OF OPERATION

1993

Entrusted by the State Bank of Vietnam and the Ministry of Finance to carry out part of the Swedish non-refundable finance program extended to Vietnamese entities having demands for importing goods from Sweden.

1991 1992

12

ANNUAL REPORT 2016 www.eximbank.com.vn

1995

Join the Electronic Clearing System of the State Bank of Vietnam.

2003

Launch the online Intra-bank Payment System in the whole network.

2005

Be the first bank in Vietnam to issue international Visa Debit cards.

2007

Join SWIFT (Society for Worldwide Interbank Financial Telecommunication); Selected as 1 among 6 Vietnamese banks to participate in the Bank Modernization Project organized by the State Bank of Vietnam and funded by the World Bank.

1997

Become a principal member of MasterCard International.

1998

Become an official member of Visa International.

2008

2009

2010

Sign strategic partnership agreements with 17 domestic and foreign investors, especially the strategic alliance agreement with Sumitomo Mitsui Banking Corporation (SMBC) of Japan.

Increase the charter capital to 7,220 billion VND.

Raise the charter capital to 8,800 billion VND and officially have shares listed on HoChiMinh Stock Exchange.

Increase the charter capital to 10,560 billion VND.


2011

Increase the charter capital to 12,355 billion VND;

2014

Selected by The Banker magazine to appear in its Top 1,000 World Banks in 2014. Eximbank is honoured to be ranked in the Top World Banks for many consecutive years; Awarded by EuroMoney Magazine with “Best Bank in Vietnam 2014”.

2015

Awarded “Best Trade Finance Bank 2015” by Asian Banker magazine; bestowed “Best Local Cash Management Bank in Vietnam 2015” by Asiamoney magazine – Hong Kong as voted by small enterprises with annual turnover of below 100 million USD.

SELECTED BY THE BANKER MAGAZINE TO APPEAR IN ITS TOP 1,000 WORLD BANKS AND TOP 25 BANKS BY ASSET GROWTH IN 2010.

2012

Presented “Best Domestic Bank in Vietnam 2012” award by the AsiaMoney magazine; CONTINUE TO BE RANKED IN THE TOP 1,000 WORLD BANKS 2012 BY THE BANKER MAGAZINE;

Officially launch the new set of brand identity.

2013

Awarded by The Asian Banker Magazine with “Best Managed Bank in Vietnam 2013”; by EuroMoney Magazine with “Best Bank in Vietnam 2013”; and continue to be ranked in the Top 1,000 World Banks 2013 by The Banker magazine.

Eximbank and Infosys entered into an agreement to deploy Infosys Finacle Core Banking software solution in order to make a breakthrough in exploiting and developing further modern banking products and services.

Honorly awarded “Excellence in International Payments 2016” by JPMorgan (US).

One of the first banks becoming issuing member of JCB-branded international card in Vietnam.

2016

CORPORATE INFORMATION

13


HISTORY

AND DEVELOPMENT (continued)

MILESTONES IN 2016

ON

First UEFA Champions League MasterCard cards awarded to the customers by representative from Eximbank’s Card Center.

Eximbank in cooperation with MasterCard International launched UEFA Champions League international credit card product. This product line aims at male customers passionate in UEFA Champions League which is one of the most prestigious and notable football tournaments in the world. Being held every year, UEFA Champions League is the playground for the best football clubs in Europe.

ON

Ms. Dinh Thi Thu Thao – Vice President of Eximbank (left side) and Ms. Tina Nguyen, CEO of Generali Vietnam together with two parties’ representatives at the signing ceremony.

14

ANNUAL REPORT 2016 www.eximbank.com.vn

20/07/2016

Eximbank became the exclusive bank to distribute insurance products of Generali Vietnam Life Insurance LLC, through an extensive network of more than 200 branches and transaction offices across Vietnam. Prominent benefit of this Bancassurance partnership scheme is that customers upon transacting at branches and transaction offices of Eximbank will get consultation and provision of high quality products and services of both banking and insurance in an easy and convenient manner in line with financial capability and demand.

ON

Ms. Dinh Thi Thu Thao – Vice President of Eximbank (third from the right) and Mr. Arn Vogels- MasterCard’s Country Manager for Indochina (fourth from the left) in the ceremony of launching Eximbank One World MasterCard card.

29/01/2016

28/09/2016

Eximbank in coordination with MasterCard International launched Eximbank One World MasterCard high-class international credit card. This product line is intended for highclass customers, who frequently travel for leisure or business. This card product will serve as a bridge to enable Customers to realize their dreams of life experience.


Execellence 2016 IN INTERNATIONAL PAYMENTS

from

Vietnam Export Import Commercial Joint Stock Bank - Eximbank was honored to receive “EXCELLENCE IN INTERNATIONAL PAYMENTS 2016” from JPMorgan (US) which is a recognition of Eximbank’s excellence in automatic processing of international payment messages (money transfers to customers). This is the third year in a row Eximbank receives such an award from JPMorgan, one of the biggest banks in the US by total assets and top banks in the world by both size and market share.

EXIMBANK WAS HONORED TO RECEIVE

50

TOP

BEST ANNUAL REPORT 2016 ORGANIZED BY HOCHIMINH STOCK EXCHANGE IN COORDINATION WITH INVESTMENT NEWSPAPER.

CORPORATE INFORMATION

15


ORGANIZATION MODEL

GENERAL MEETING OF SHAREHOLDERS BOARD OF SUPERVISORS

(board of internal auditors)

BOARD OF DIRECTORS COUNCILS/COMMITTEES OFFICE OF THE BOARD OF DIRECTORS TRAINING CENTER

CHIEF EXECUTIVE OFFICER COUNCILS/COMMITTEES

VICE PRESIDENTS

Chief Accountant

Sales Management Dept. Sales Support Dept.

Business Development Division

Retail Banking Center

Corporate Banking Division

NPL Analysis Dept. Assets - Liabilities Handling Dept. Dispute Resolution Dept. Regional Debt Handling Teams

Credit Appraisal Dept. Credit Analysis Dept. Credit Support Section

Asset Valuation Dept. Regional Valuation Sections

International Trade Operations Center Debt Handling Center

Valuation Center

Card Center

Card Sales Promotion Dept. Card Business Management Dept.

ANNUAL REPORT 2016 www.eximbank.com.vn

Gold Trading Center Foreign Currency Trading Dept. Financial Investment Dept. Fund Trading Dept.

Operational Supervision Division

Market Risk Management Dept. Operational Risk Management Dept. Credit Risk Management Dept. Legal & Compliance Dept. General Accounting Dept.

Information Technology Division

Data, Infrastructure Management Center IT Service Development Center IT System Safety, Security Center Electronic Banking Dept.

Human Resources Division

16

Operational Handling Dept. Business Development Support Dept. Individual Customer Service Dept.

Cash-Administration Division

REGIONS

Corporate Customers Dept.

Retail Banking Division

Treasury Division

Credit Center

Alliance Dept. Corporate Planning Dept. Fund Management Dept. Eximbank Representative Office in Hanoi International Relations Dept. Marketing Dept. Quality Management Dept.

BRANCHES Regional Offices

Network Expansion & Support Dept. Administration Dept. Construction Investment Management Dept. Cash Dept. Human Resources Management Dept.

Transaction offices/points


MANAGEMENT

STRUCTURE

THE BOARD OF DIRECTORS

THE BOARD OF SUPERVISORS

THE MANAGEMENT

Mr. Le Minh Quoc

Chairman – Independent Member of the Board of Directors

Mr. Cao Xuan Ninh

Member

Mr. Le Van Quyet

Member cum Chief Executive Officer

Mr. Ngo Thanh Tung

Member

Mr. Dang Anh Mai

Member

Mr. Hoang Tuan Khai

Member

Mr. Nguyen Quang Thong

Member

Mr. Naoki Nishizawa

Member

Mr. Yasuhiro Saitoh

Member

Mr. Tran Le Quyet

Chief Supervisor

Mr. Tran Ngoc Dung

Member

Mr. Dang Huu Tien

Member

Mrs. Pham Thi Mai Phuong

Member

Mr. Trinh Bao Quoc

Member

Mr. Le Van Quyet

Chief Executive Officer

Mr. Tran Tan Loc

Standing Executive Vice President

Mr. Nguyen Quoc Huong

Vice President

Mr. Dao Hong Chau

Vice President

Mrs. Dinh Thi Thu Thao

Vice President

Mrs. Van Thai Bao Nhi

Vice President

Mr. Le Anh Tu

Vice President

Mrs. Bui Do Bich Van

Vice President

Mr. Nguyen Ho Hoang Vu

Vice President cum Chief Financial Officer

Mr. Le Hai Lam

Vice President

Mr. Nguyen Quang Triet

Vice President

Mr. Nguyen Van Hao

Vice President

Mr. Masashi Mochizuki

Vice President

Mr. Bui Van Dao

Vice President

Mr. Yutaka Moriwaki

Vice President (from 13 October 2016)

Mr. Cao Xuan Lanh

Vice President (until 20 January 2016)

Mr. Nguyen Ngoc Ha

Chief Accountant

  SUBSIDIARY

Eximbank has one subsidiary which is Debt Management and Asset Exploitation Onemember Limited Liability Company with the registered charter capital of 1,700 billion VND, located at Building No. 24B Truong Dinh, Ward 6, District 3, Ho Chi Minh City. The actual paidup capital as of 31 December 2016 was 955 billion VND.

CORPORATE INFORMATION

17


DEVELOPMENT ORIENTATIONS

DEVELOPMENT VISION

VISION

Eximbank will take advantage of market opportunities to maintain sustainable growth pace, strengthen and expand its customer base, heighten position and develop Eximbank into a modern commercial joint stock bank at which all shareholders, investors, customers and partners are confident with their capital investment efficiency and safety; a bank that offers a variety of high quality banking and financial products and services; and a brand with high prestige in the banking and financial industry and great contribution to the community and society.

DEVELOPMENT TARGETS AND ORIENTATIONS UP TO

2020

For the period of 2015 - 2020, Eximbank strives to be in Top 5 commercial joint stock banks (excluding commercial joint stock banks with state-owned holding). To take advantage of chance and opportunities, effectively use the strength in shareholders’ equity through the operations of commercial banking and investment banking, and activities of the subsidiary and associates. Simultaneously, to leverage the advantage of good relations with foreign partners, especially the strategic partner as Sumitomo Mitsui Banking Corporation. To develop products and services in line with market demands, to increase the service income structure over the total income of the Bank, especially the settlement services. To continue promoting its strengths in trade finance, export and import finance, gold trading, foreign exchange trading, diversifying products and services based on the application of advanced information technology platform, gradually adopting best international standards and developing high quality human resources. To keep on boosting retail banking operations through the development of appropriate retail sales model, a more professional sales force, and a product policy suitable with market demands. To strengthen the concentration on protecting and improving the environmental quality, protecting human rights, observing with the requirements on labour and occupation, and participating in other social policies during the course of operation of Eximbank. 18

ANNUAL REPORT 2016 www.eximbank.com.vn


RISKS

OVERVIEW ABOUT TYPES OF RISK

AFFECTING THE BANK’S BUSINESS ACTIVITIES MARKET RISK Market risk is the risk arising out of market fluctuations causing adverse impacts on Eximbank’s income and (or) capital, including:

Interest rate risk: as Eximbank’s asset and income portfolio mainly originate from lending and bond investment activities, the interest rate volatilities shall cause strong impacts on Eximbank’s performance. Interest rate risk may arise from the difference in the times of interest rate fixation, changes of the relationship among different market interest rates, or changes of the interest rate relationship among different tenors or interest-linked option products. Exchange rate risk is the risk resulted from exchange rate volatilities causing negative impacts on Eximbank’s income and capital. Exchange rate risk may arise from such forms as foreign exchange transactions, foreign currency derivative transactions (e.g. future, currency swap and option contracts). Investment value risk is the risk resulted from price fluctuations of stocks, bonds and other capital and securities investments, leading to the diminution of investments held by the Bank.

LIQUIDITY RISK Liquidity risk is the risk that leads to the possibility that Eximbank is unable to meet its obligations, liquidity demand at the time of financial obligation incurrence; or that, though being able to perform its obligations when due, Eximbank has to suffer great losses upon performing such obligations. Liquidity risk may arise from the gap between the size and tenor of assets and liabilities in different times.

OPERATIONAL RISK Operational risk is the risk associated with the bank’s operations but it is hard to manage and prevent the same. It stems from human factors, deficiencies in operational procedures, weaknesses in information system and internal control system, or external factors. Operational risk is the most complicated risk faced by Eximbank for its hardly controllable nature and diversity. To cope with such risk, Eximbank has developed and promulgated internal policies and manuals, set up business continuity plan to deal with mistakes in manipulations and unexpected incidents.

CREDIT RISK Credit risk is the risk resulted from customers’ failure or inability to partly or fully perform their repayment obligations according to the contracts or agreements undertaken with the bank. Such risk may be due to subjective or objective reasons. Credit risk is considered the biggest risk affecting Eximbank’s operations as credit activity generates the highest income for the bank.

CORPORATE INFORMATION

19


20

ANNUAL REPORT 2016 www.eximbank.com.vn


LOOKING BACK 2016, IN THE CONTEXT OF MANY OBSTACLES OF EXIMBANK AND ADVERSE INFORMATION IN THE MARKET, EXIMBANK’S BUSINESS ACTIVITIES REMAINED STABLE AND ACHIEVED POSITIVE RESULTS

BUSINESS PERFORMANCE IN 2016 22 23 24 30 38 39 40 41

Business performance in 2016. Financial highlights. Introduction about the Management. Human resources and personnel policies. Social and environmental impact report. Local community related responsibility report. Investment in Debt Management and Asset Exploitation Company (Eximbank AMC). Number of shares and shareholding structure of Eximbank.

BUSINESS PERFORMANCE IN 2016

21


BUSINESS

PERFORMANCE IN 2016

OPERATIONS, FINANCIAL CONDITION AND BUSINESS RESULTS IN 2016

128,802

BIL. VND

TOTAL ASSETS, UP 3.2% COMPARED TO 2015

IN THE CONTEXT OF TOUGH OPERATING ENVIRONMENT, EXIMBANK HAS STRIVED TO MAINTAIN STABLE BUSINESS OPERATIONS, ENSURE LIQUIDITY AND OPERATIONAL SAFETY.

390.6

BIL. VND

PRE-TAX PROFIT IN 2016

22

ANNUAL REPORT 2016 www.eximbank.com.vn

Its VND-converted total assets reached 128,802 billion VND, up 3.2% compared to 2015. VND-converted funding raised from economic entities and residents reached 102,351 billion VND, up 4% against 2015. Total credit exposure to economic entities and residents (including outstanding loans and corporate bonds) reached 95,511 billion VND, down 1% compared to 2015. VND-converted outstanding loans to economic entities and residents were 86,891 billion VND, down 3% against 2015. Eximbank has strengthened its provision establishment from the operating profit in order to strictly observe the commitment of developing the bank in a healthy and sustainable direction, serving as a premise for growth in subsequent years. As such, Eximbank’s 2015 business results posted a pretax profit of 390.6 billion VND. As of 31/12/2016, separate capital adequacy ratio (CAR) was 17.12%, ratio of short-term funding used for mid- and long-term loans was 52.23%, loanto-deposit ratio was 84.9%, etc. Such ratios of Eximbank all satisfied the prudential limits and ratios as set out by the State Bank of Vietnam.


FINANCIAL HIGHLIGHTS Item

Unit

2016

2015

% +/against 2015

1. Capital size

Total assets

Bil. VND

128,802

124,850

3.2

Shareholders’ equity

Bil. VND

13,448

13,145

2.3

Of which: Charter capital

Bil. VND

12,355

12,355

0.0

%

17.12

16.52

3.6

Consolidated capital adequacy ratio (CAR) 2. Operating results

Funds raised from economic entities and residents

Bil. VND

102,351

98,431

4.0

Total credit exposure

Bil. VND

95,511

96,188

-0.7

Of which, outstanding loans to economic entities & residents Bil. VND

86,891

84,760

2.5

Overdue loans (groups 2-5)

Bil. VND

2,972

2,069

-

NPLs (groups 3-5)

Bil. VND

2,560

1,575

-

Ratio of overdue loans/total loan balance

%

3.42

2.44

-

Ratio of NPLs/total loan balance

%

2.95

1.86

-

Net interest income

Bil. VND

3,082

3,398

-9.3

Net non-interest income

Bil. VND

585

317

84.5

Net other income

Bil. VND

68

85

-20.0

Total operating income

Bil. VND

3,735

3,800

-1.7

Total operating expenses

Bil. VND

-2,255

-2,305

-2.2

Net operating profit before provision for credit losses

Bil. VND

1,480

1,495

-1.0

Provision expenses

Bil. VND

-1,089

-1,434

-24.1

Profit before tax

Bil. VND

391

61

-

Corporate income tax

Bil. VND

-82

-21

-

Profit after tax

Bil. VND

309

40

-

Return on Equity (ROE)

%

2.32

0.30

-

Return on Assets (ROA)

%

0.24

0.03

-

Quick ratio (converted to VND)

%

14.57

16.51

-11.8

Ratio of short-term funding used for mid- and long-term lending

%

53.23

48.79

9.1

0

0

-

3. Financial condition

4. Profitability

5. Liquidity

6. Dividend payout ratio

% p.a.

BUSINESS PERFORMANCE IN 2016

23


INTRODUCTION ABOUT

THE MANAGEMENT

Mr. LE VAN QUYET Member of the Board of Directors cum Chief Executive Officer

24

Mr. TRAN TAN LOC Standing Executive Vice President

Mr. DAO HONG CHAU Vice President

Master of Business Administration.

Ph.D. of Economics in Finance - Credit.

Master of Economics.

34 years of experience in the Economics - Finance - Banking sector.

27 years of experience in the Economics - Finance - Banking sector.

ANNUAL REPORT 2016 www.eximbank.com.vn

25 years of experience in the Economics - Finance - Banking sector.


Mr. NGUYEN QUOC HUONG Vice President

Mrs. DINH THI THU THAO Vice President

Master of Business Administration.

Master of Economics.

24 years of experience in the Economics - Finance - Banking sector.

26 years of experience in the Economics - Finance - Banking sector.

Mr. NGUYEN HO HOANG VU Vice President cum Chief Financial Officer Master of Economics in Finance Banking. 24 years of experience in the Economics - Finance - Banking sector.

BUSINESS PERFORMANCE IN 2016

25


INTRODUCTION ABOUT

THE MANAGEMENT (continued)

Mrs. VAN THAI BAO NHI Vice President

Mr. MASASHI MOCHIZUKI Vice President

Mr. LE HAI LAM Vice President

Master of Economics in Finance Banking.

Bachelor of Laws.

Bachelor of Economics.

20 years of experience in the Economics - Finance - Banking sector (Sumitomo Mitsui Banking Corporation).

21 years of experience in the Economics - Finance - Banking sector.

21 years of experience in the Economics - Finance - Banking sector.

26

ANNUAL REPORT 2016 www.eximbank.com.vn


Mr. NGUYEN QUANG TRIET Vice President

Mr. NGUYEN VAN HAO Vice President

Mr. BUI VAN DAO Vice President

Master of Business Administration.

Master of Economics.

Master of Economics.

25 years of experience in the Economics - Finance - Banking sector.

19 years of experience in the Economics - Finance - Banking sector.

22 years of experience in the Economics - Finance - Banking sector.

BUSINESS PERFORMANCE IN 2016

27


INTRODUCTION ABOUT

THE MANAGEMENT (continued)

Mrs. BUI DO BICH VAN Vice President

Mr. YUTAKA MORIWAKI Vice President

Mr. LE ANH TU Vice President

Mr. NGUYEN NGOC HA Chief Accountant

Bachelor of Economics in Foreign Trade.

Bachelor of Political Science and Economics.

Master of Economics.

Bachelor of Economics.

23 years of experience in the Economics - Finance - Banking sector.

31 years of experience in the Economics Finance - Banking sector (Sumitomo Mitsui Banking Corporation).

21 years of experience in the Economics - Finance Banking sector.

22 years of experience in the Economics - Finance Banking sector.

28

ANNUAL REPORT 2016 www.eximbank.com.vn


CHANGES IN MEMBERS OF THE MANAGEMENT No.

Time

Content of change

1

January 2016

Mr. Cao Xuan Lanh resigning from the title of Vice President

2

April 2016

Mr. Tran Tan Loc resigning from the title of Acting Chief Executive Officer and assigned to hold the post of Standing Executive Vice President

3

April 2016

Mr. Le Van Quyet – Member of the Board of Directors assigned to concurrently hold the title of Chief Executive Officer

4

October 2016

Mr. Yukata Moriwaki admitted and appointed as Vice President

SHAREHOLDING RATIO BY MEMBERS OF THE MANAGEMENT No.

1

Full name

Mr. Le Van Quyet

Position

Member of the Board of Directors cum Chief Executive Officer

Shareholding ratio (%)

The Board of Directors (Board) appointed Mr. Le Van Quyet – Board Member to concurrently hold the title of Chief 0.00 Executive Officer of Eximbank, under Decision No. 119/2016/EIB/QD-HDQT, effective from 05/04/2016

The Board of Directors:

2

Mr. Tran Tan Loc

Standing Executive Vice President

0.00

Appointed Mr. Tran Tan Loc as Standing Executive Vice President of Eximbank under Decision No. 123/2016/EIB/QDHDQT, effective from 05/04/2016.

3

Mr. Nguyen Quoc Huong

Vice President

0.0033689

4

Mr. Dao Hong Chau

Vice President

0.0057685

5

Mrs. Dinh Thi Thu Thao

Vice President

0.0016472

6

Mrs. Van Thai Bao Nhi

Vice President

0.0000009

7

Mr. Masashi Mochizuki

Vice President

0.00

8

Mrs. Bui Do Bich Van

Vice President

0.0042342

9

Mr. Le Anh Tu

Vice President

0.00

10

Mr. Nguyen Ho Hoang Vu

Vice President cum Chief Financial Officer

11

Mr. Le Hai Lam

Vice President

0.00

12

Mr. Nguyen Quang Triet

Vice President

0.0001102

13

Mr. Nguyen Van Hao

Vice President

0.0000007

14

Mr. Bui Van Dao

Vice President

0.0000006

15

Mr. Yutaka Moriwaki

Vice President

16

Mr. Nguyen Ngoc Ha

Chief Accountant

Discharged Mr. Tran Tan Loc from the title of Acting Chief Executive Officer of Eximbank under Decision No. 122/2016/ EIB/QD-HDQT, effective from 05/04/2016.

0.0023008

The Board appointed Mr. Yutaka Moriwaki as Vice President of Eximbank under 0.00 Decision No. 489/2016/EIB/QD-HDQT, effective from 13/10/2016.

0,0000001

BUSINESS PERFORMANCE IN 2016

29


HUMAN RESOURCES

AND PERSONNEL POLICIES

21.0% 44.5%

GENDER

55.5%

QUALIFICATION 79.0%

Gender

Qualification

Male : 2,631 employees 44.5%

Graduate and above : 4,674 employees 79.0%

Female : 3,285 employees 55.5%

College and below : 1,242 employees 21.0%

M

ost of Eximbank’s employees have good and solid professional skills and competence (79% of whom are university graduates or above) with many years of experience in Finance – Banking industry,

No. Content

2

3

5

30

Head Office and AMC

HCM Region

North Region

Pctg. %

Qty

Pctg.%

Qty

Pctg. %

1,048

17.7

2.412

40.8

853

14.4

Male

543

9.2

1.038

17.5

314

5.3

Female

505

8.5

1.374

23.2

539

9.1

Graduate and above

933

15.8

1701

28.8

764

12.9

College and below

115

1.9

711

12.0

89

1.5

38

0.6

47

0.8

27

0.5

31 - 50

682

11.5

1.184

20.0

433

7.3

18 - 30

328

5.5

1.181

20.0

393

6.6

Above 10 years

246

4.2

303

5.1

83

1.4

5 - 10 years

403

6.8

1.153

19.5

505

8.5

02 - 5 years

163

2.8

391

6.6

180

3.0

Below 02 years

236

4.0

565

9.6

85

1.4

Managing officers (Deputy Manager and above)

151

2.6

354

6.0

162

2.7

Staff (remaining titles)

897

15.2

2.058

34.8

691

11.7

Gender

Qualification

Age

Above 50

4

firm professional background and devotion to the development of Eximbank (80.4% of staff having 02 years of experience and more at Eximbank).

Qty

TOTAL EMPLOYEES IN 2016

1

YOUNG, DYNAMIC, CREATIVE, ENTHUSIASTIC AND PROPERLY TRAINED STAFF IS ONE OF THE PREREQUISITE AND FAVORABLE CONDITIONS FOR THE STABILITY AND DEVELOPMENT OF EXIMBANK AT PRESENT AND IN THE FUTURE.

Seniority at EIB

Title

ANNUAL REPORT 2016 www.eximbank.com.vn


5,916

TOTAL EMPLOYEES IN 2016

Central & Highlands Region

Southeast Region

Southwest Region

Total

Qty

Pctg. %

Qty

Pctg. %

Qty

Pctg. %

Qty

Pctg. %

622

10.5

508

8.6

473

8.0

5,916

100.0

257

4.3

240

4.1

239

4.0

2,631

44.5

365

6.2

268

4.5

234

4.0

3,285

55.5

507

8.6

387

6.5

382

6.5

4,674

79.0

115

1.9

121

2.0

91

1.5

1,242

21.0

17

0.3

7

0.1

8

0.1

144

2.4

383

6.5

213

3.6

147

2.5

3,042

51.4

222

3.8

288

4.9

318

5.4

2,730

46.1

84

1.4

5

0.1

36

0.6

757

12.8

380

6.4

209

3.5

215

3.6

2,865

48.4

98

1.7

202

3.4

98

1.7

1,132

19.1

60

1.0

92

1.6

124

2.1

1,162

19.6

108

1.8

68

1.1

87

1.5

930

15.7

514

8.7

440

7.4

386

6.5

4,986

84.3

BUSINESS PERFORMANCE IN 2016

31


HUMAN RESOURCES

AND PERSONNEL POLICIES (continued)

32

ANNUAL REPORT 2016 www.eximbank.com.vn


ESTABLISHMENT OF A CADRE OF PROFESSIONAL EMPLOYEES

I

n the process of building up a team of professionals, training is the last stage and plays the most important role to help standardize the staff, especially in their transaction processing and communications with the customers.

Accordingly, in 2016, Eximbank continued to implement training/retraining plans for its employees from the staff/teller level to leaders of Departments, Branches, and those persons daily representing for the Bank to contact the customers. In addition to operational training courses, Eximbank also equipped its staff with soft skills such as time management, communication, sales, presentation, etc. In the meanwhile, regular self-training courses were also conducted internally at the Departments/Sections at the Head Office and business units to ensure the best and most professionalism in dealing and communicating with customers.

CONSTRUCTION OF CORPORATE CULTURE

T

o further develop the strengths of its existing human resources, Eximbank aims at building up a distinctive corporate culture and a friendly working environment with equal

treatment, gender equality for laborers; transparency and professionalism to establish the common house environment of Eximbank to attract talents, ensure stable and high quality human resources.

BUSINESS PERFORMANCE IN 2016

33


HUMAN RESOURCES

AND PERSONNEL POLICIES (continued)

PROMOTION OF CORPORATE

DEMOCRACY

E

ximbank encourages its employees to express their ideas, contribute opinions to build up internal programs, develop new products through business plan implementation meetings, ideas contests, etc.

In 2016, Eximbank deployed Labor Conferences at all units in the system. The congress was a discussion forum between the staff and the Management Board to contribute to the Bank’s operations where Eximbank’s leaders shared

information on the business situation and performance, policies, regimes, etc. and employees felt free to share their aspirations to add to the bank’s activities. As a result, the laborers’ obstacles were resolved and equality was ensured.

FORMATION OF FUTURE HUMAN RESOURCES EVERY YEAR, EXIMBANK ACTIVELY APPROACHES AND ASSOCIATES WITH COLLEGES AND UNIVERSITIES NATIONWIDE TO IMPLEMENT PROGRAMS OF DIRECTLY RECRUITING SOON-TOGRADUATE STUDENTS.

34

ANNUAL REPORT 2016 www.eximbank.com.vn

C

urrently, Eximbank is deploying the Administrator Program, which aims at contributing to resolve the output of Universities and Colleges across the country, and simultaneously enhancing the initiative in recruitment of high quality personnel, efficiently preparing resources for the future. In addition, Eximbank also carries out activities of Consultancy,

Vocational Guidance, Internship and Employment for students of universities and colleges with agreements entered with Eximbank as well as at major schools in the areas where Eximbank’s branches are operating through such programs as Job Day, etc. With the policy of staff recruitment together with career consulting and guiding activities for students, Eximbank’s personnel quality is constantly advanced.


TRAINING AND PLANNING OF INHERITED PERSONNEL HUMAN RESOURCES TRAINING AND DEVELOPMENT IS ALWAYS ONE OF THE FOCUSED OBJECTIVES OF EXIMBANK TO TIMELY FOSTER THE INHERITED STAFF.

O

ver the past years, Eximbank has been building a cadre of managing and sales officers who are sensible and responsive to continuous market movements. Training programs are organized for each position and implemented in a variety of forms and contents.

Apart from intensive professional training courses, Eximbank also deploys coaching courses on soft skills (like sales, presentation, teamwork, etc.) interwoven with operational training programs, which has equipped necessary skills to better serve for the employees’ working process at Eximbank. In 2016, Eximbank conducted 120 training courses with 4,051 staff trained, of which 9 courses were inherited credit officer training with 220 participating staff. Moreover, there were also coaching programs, self-training courses, professional knowledge sharing regularly carried out among the departments of the Head Office and Branches to well accommodate daily tasks.

120

TRAINING COURSES

4,051

STAFF TRAINED, OF WHICH 9 COURSES WERE INHERITED CREDIT OFFICER TRAINING WITH 220 PARTICIPATING STAFF. All of such doings by Eximbank aim at building a solid foundation regarding human resources for the strategy of sustainable development of Eximbank in the present time and the following years.

PERFORMANCE-BASED SALARY AND BONUS REGIME

T

he salary and bonus model of Eximbank is established on the basis of position and title, working results, capability and competence, average income level of the banking industry in particular and of the labor market in general, regulations of the State and financial capacity of Eximbank. Regarding bonuses, in 2016, in addition to annual bonuses such as individual titles, collective titles in business plan completion, Eximbank also monitored and promptly commended and awarded those individuals and collectives for outstanding achievements of assigned tasks from time to time.

BUSINESS PERFORMANCE IN 2016

35


HUMAN RESOURCES

AND PERSONNEL POLICIES (continued)

HEALTH SAFETY POLICY EXIMBANK ALWAYS DETERMINES THAT GOOD HEALTH IS IMPORTANT TO THE SUCCESS OF THE ENTERPRISE.

36

ANNUAL REPORT 2016 www.eximbank.com.vn

Therefore, the policy of extracting a part of profit to take care of the health of employees regardless of the term of their labor contracts has been implemented by Eximbank throughout the years. Annually, Eximbank organizes health checks across the network for its staff and officers. Candidates upon job application are also required to have their health checked before applying for or receiving jobs at Eximbank. The Bank also regularly launches movements, organizes sport events for staff to exercise health; timely visits and supports the cost of treatment for sick staff. Thus, the number of laborers experiencing health issues and occupational diseases at Eximbank has always been very low over the past years. Simultaneously, Eximbank is now implementing health care for its employees, especially for key executives by purchasing health insurance from prestigious insurance company.


TREATMENT POLICY As an expression of its interest in the employees with working seniority and long-time service at Eximbank, from May 2012, Eximbank has implemented “seniority policy for employees”. Accordingly, employees with full 5 years of service are entitled to monthly seniority allowance. Moreover, Eximbank is also concerned about the lives of its staff with the motto of “live in peace, work in contentment”, whereby in 2016, Eximbank continued searching for land resources to implement “housing policy” for employees in order to create peace of mind for working and long-term coherence with Eximbank.

RESPONSIBILITY OF EMPLOYEES TOWARDS THE COMMUNITY Going forward the tradition from the first days of establishment to date, in 2016, Eximbank kept on performing and encouraging and creating conditions for employees to participate in and contribute to charitable and social security activities, such as the “Sharing and Giving Affection” program having visited and presented gifts to the Central people who were flooded, given gifts to poor people in Dong Nai, etc. .; the “Full Moon Festival” presenting moon-gifts to poor children in Bac Lieu; the program of visiting and giving gifts to Vietnamese heroic mothers in Quang Nam, etc.; Donation program to aid for Eximbank’s employee whose house was burned down by fire; Scholarship program for university students, etc.

BUSINESS PERFORMANCE IN 2016

37


SOCIAL AND ENVIRONMENTAL IMPACT REPORT

EXIMBANK ENSURES ITS COMPLIANCE WITH LAWS ON PROTECTION OF THE ENVIRONMENT AND SOCIETY. APART FROM BUSINESS ACTIVITIES, EXIMBANK ALSO ACTIVELY INVOLVED IN SOCIAL ACTIVITIES, TOOK CARE OF AND IMPROVED THE EMPLOYEES’ QUALITY OF LIFE, CONTRIBUTING TO THE DEVELOPMENT OF THE LOCAL COMMUNITY IN PARTICULAR, AND SOCIETY IN GENERAL.

COMPLIANCE

WITH ENVIRONMENT PROTECTION

38

ANNUAL REPORT 2016 www.eximbank.com.vn

LAWS

EXIMBANK ALWAYS COMPLY WITH THE ENVIRONMENT PROTECTION LAWS & REGULATIONS


LOCAL COMMUNITY RELATED

RESPONSIBILITY REPORT

In 2016, Eximbank organized relief for flood victims in Quang Binh and Ha Tinh provinces.

FROM 2009 (THE YEAR EXIMBANK ENTERED STOCK MARKET) TO DATE, APART FROM BRAND AND PRODUCT AND SERVICE PROMOTION ACTIVITIES, EXIMBANK ALSO PAYS ATTENTION TO SPONSORING ACTIVITIES FOR THE CHARITABLE AND SOCIAL COMMUNITY PROGRAMS HELD BY THE BANKING INDUSTRY, MAINLY PHILANTHROPIC PROGRAMS SUCH AS PRESENTING SCHOLARSHIP, SUPPORTING HEALTHCARE AND SOCIAL SECURITY ACTIVITIES, ETC., SPECIFICALLY: ™™

Supporting the construction of Truong Bon historical relic site, Nghe An province.

™™

Supporting the construction of a healthcare center at Hoai Nhon District, Binh Dinh province.

™™

Supporting the communication devices for fishermen at Tien Giang and Kien Giang provinces (45 machines).

™™

Sponsoring hundreds of scholarships for needy pupils and students in the remote provinces and areas, for the universities and for the programs of gratitude/helping the poor prepare for Tet in Ho Chi Minh City and other provinces, etc.

BUSINESS PERFORMANCE IN 2016

39


INVESTMENT IN

DEBT MANAGEMENT AND ASSET EXPLOITATION COMPANY (EXIMBANK AMC)

ESTABLISHMENT The Debt Management and Assets Exploitation One-member Limited Liability Company was established under Decision No. 157/2010/EIB/

QD-HDQT dated 21 April 2010 of the Chairman of the Board of Directors; Decision No. 754/QD-NHNN dated 01 April 2010 of the State Bank of

Vietnam and Business Registration Certification No. 0310280974 dated 24 August 2010 granted by Ho Chi Minh City Department of Planning and Investment.

market price (collateral selling price may be higher or lower than the arrears’ value) by such methods as publicly selling by itself on the market; selling through Asset Auction Service Center; selling to the State’s Debt Trading Company (when established). Restructure arrears by such methods as rescheduling, interest rate reduction or waiver, additional investment, conversion of debts into contributed capital.

Dispose of collaterals by renovating, repairing, upgrading the same for sale, lease, business exploitation, capital contribution, joint venture by assets in order to recover the loans. Perform other activities as authorized by Vietnam Export Import Commercial Joint Stock Bank in accordance with law regulations. Buy and sell arrears of other credit institutions, and of asset management companies of other commercial banks as stipulated by law.

BUSINESS LINES Other monetary intermediation activities

Receive and manage arrears of Vietnam Export Import Commercial Joint Stock Bank (including secured and unsecured loans) and the collaterals (i.e. mortgaged or pledged assets; debt set-off assets; assets delivered to the bank by the Court) related to the loans for fastest handling and recovery of loans. Proactively sell collaterals under the discretion of Vietnam Export Import Commercial Joint Stock Bank at Charter capital

Business Registration Certification No. 0310280974 was granted by Ho Chi Minh City Department of Planning and Investment on 24 August 2010 with the initial registered charter capital of 300 billionVND. The

second amendment was made on 08 September 2011, the third on 30 March 2012, the ninth on 02 April 2014 with the registered charter capital of 1,700 billion VND. The paidup charter capital as of 31 December 2016 was 955 billion VND.

955

BIL. VND CHARTER CAPITAL (31/12/2016)

SUMMARY OF THE OPERATION, FINANCIAL CONDITIONS AND BUSINESS RESULTS OF AMC Some financial indicators Target

Business results Amount (million VND)

Target

2016 (million VND)

Total revenue

21,097

21,531

434

2.1%

14,574

15,700

1,126

7.7%

6,503

5,747

-756

-11.6%

At 31/12/2016 Total assets

998,832

Deposits at bank

109,767

Rental revenue

Other long-term receivables (from Eximbank)

806,930

Financial activity revenue

Fixed assets Costs of capital construction and fixed asset purchase Capital invested by owners

40

56,163 25,307 955,000

2016 accounting profit before tax

13,966

Accounting profit after corporate income tax

11,152

ANNUAL REPORT 2016 www.eximbank.com.vn

Increase/ % Increase/ decrease decrease against 2015 against 2015 (+/-) (+/-)

2015 (million VND)

Other income

20

84

64

320.0%

Total expenses

10,248

7,565

-2,683

-26.2%

9,803

7,545

-2,258

-23.0%

445

20

-425

-95.5%

10,849

13,966

3,117

28.7%

General and administrative expenses Other expenses Profit before tax


NUMBER OF SHARES AND

SHAREHOLDING STRUCTURE OF EXIMBANK

NUMBER OF SHARES As at 31 December 2016, number of shares

:

1,235,522,904 shares

Number of transferable shares

:

948,642,158 shares

:

286,880,746 shares

Number of non-transferable shares as regulated at clause 1 Article 56 – Law on Credit Institutions 2010

76.81%

Major shareholders (owning 5% of charter capital and above)

23.19%

33.08%

Organizational shareholders Individual shareholders

Shareholders owning less than 5% of charter capital 72.0%

66.92%

28.0%

98.40%

1.60%

State shareholders Other shareholders

Foreign shareholders Domestic shareholders

Founding shareholders

SHAREHOLDING STRUCTURE No.

1

2

Number of shares

Shareholding ratio (%)

Major shareholders (owning 5% of charter capital and above)

286,574,338

23.19

Shareholders owning less than 5% of charter capital

948,948,566

76.81

Organizational shareholders

826,855,471

66.92

Domestic

483,115,272

39.10

Foreign

343,740,199

27.82

408,667,433

33.08

406,493,632

32.90

2,173,801

0.18

Domestic shareholders

889,608,904

72.00

Foreign shareholders

345,914,000

28.00

State shareholders

19,768,692

1.60

Other shareholders

1,215,754,212

98.40

0

0.00

1,235,522,904

100.00

Shareholder

Individual shareholders Domestic Foreign

3

4

Founding shareholders TOTAL NUMBER OF SHARES

BUSINESS PERFORMANCE IN 2016

41


NUMBER OF SHARES AND

SHAREHOLDING STRUCTURE OF EXIMBANK (continued)

DETAILS OF MAJOR SHAREHOLDERS Name of the individual/organization

Line of business

Address

Number of shares

Holding ratio (%)

Sumitomo Mitsui Banking Corporation

Banking

1-2 Marunouchi 1-chome,Chiyado-ku, Tokyo 100-0005 Japan

185,329,207

15%

Commercial Joint-stock Bank for Foreign Trade of Vietnam (Vietcombank)

Banking

198 Tran Quang Khai Street, Hoan Kiem District, Hanoi

101,245,131

8.19%

CHANGES IN SHAREHOLDERS’ EQUITY In 2016, Eximbank did not have change in shareholders’ equity.

TREASURY STOCK TRANSACTIONS As of 31 December 2016, number of treasury stocks of Eximbank was 6,090,000 shares. Eximbank did not conduct treasury stock transactions in 2016.

OTHER SECURITIES Eximbank did not issue other securities in 2016.

42

ANNUAL REPORT 2016 www.eximbank.com.vn


THE MANAGEMENT IS IMPLEMENTING STEPBY-STEP THE RESTRUCTURING AND STRATEGY PROJECT OF EXIMBANK FOR THE PERIOD OF 2016 TO 2020: REORGANIZING THE ENTIRE ORGANIZATION STRUCTURE TO BETTER SERVE EACH CUSTOMER SEGMENT’S DEMANDS WITH PROFESSIONAL FINANCIAL PRODUCTS AND SOLUTIONS.

THE MANAGEMENT’S REPORTS AND ASSESSMENTS 44 60 61 68 70

Evaluation on business results. Financial condition. Improvements in organization structure, policy and management. 2017 business plan. Social and environmental related assessment report

THE MANAGEMENT’S REPORTS AND ASSESSMENTS

43


EVALUATION ON

BUSINESS RESULTS

IN A VOLATILE BUSINESS ENVIRONMENT, EXIMBANK HAS STRIVED TO PROMOTE ITS BUSINESS OPERATIONS, ENSURE SAFE SYSTEM DEVELOPMENT. THROUGH THIS, EXIMBANK HAS ACHIEVED CERTAIN RESULTS: BUSINESS ACTIVITIES HAVING GROWTH COMPARED TO 2015, LIKE TOTAL ASSETS INCREASING BY 3%, MOBILIZED FUNDS RISING BY 4%, LOAN BALANCE EXPANDING BY 3%.

R

etail activities posting good development with retail loans up 13% compared to the end of 2015, contributing to the loan balance growth of the whole system. Other service activities all showing positive advancement such as overseas remittance receipt volume up 35%, gold trading volume up 25%, foreign currency – VND trading volume with customers up 18% compared to 2015 ..., contributing to the whole system’s profit.

44

ANNUAL REPORT 2016 www.eximbank.com.vn

In order to diversify products and services to meet diverse needs of customers, Eximbank having rolled out many new products and services. Having put into operation the International Trade Operations Center to improve the quality of transaction processing in international settlements, limit risks and reduce personnel for international trade operations, helping concentrate human resources for sales work.

391 PRE-TAX PROFIT

BILLION VND

Eximbank having actively disposed of overdue and bad loans through the Risk Handling and Overdue Debt Prevention Council, bringing down non-performing loan ratio to below 3% and always ensuring liquidity. Eximbank having complied with all prudential ratios as regulated by the State Bank of Vietnam. Having implemented mechanism for sales according to KPIs.

reward officers


RETAIL BANKING SERVICES RETAIL FUND RAISING

EXIMBANK HAS ALWAYS BEEN PROACTIVE AND PUNCTUAL IN ITS MOBILIZATION POLICY IN LINE WITH THE GUIDELINES OF THE STATE BANK OF VIETNAM AND THE MARKET TRENDS.

A

s of 31/12/2016, individual deposit balance achieved 77,010 billion VND, up 10% from the early year, accounting for 75% of the bank’s total deposits. As at end of 2016, total number of individual customers reached 1,085,687 customers, increasing by 7.4% against the early year. Funding structure in 2016 was improved in way of higher proportion

of mid- and long-term funds (from 22% in 2015 to 35% in 2016), ensuring the stability of the mobilized funds and satisfying the need for mid- and long-term loans. To achieve such positive results in 2016, Eximbank has always been proactive and punctual in its mobilization policy in line with the State Bank of Vietnam’s guidelines and the market trends. In addition, Eximbank has made relentless efforts to expand customer base on grounds of enhancing and improving service quality, offering customers with optimal utilities in combination with modern technology to obtain customers’ satisfaction upon banking with Eximbank. Regarding the deposit products and promotion programs, apart from 15 products meeting diversified needs of the customers, Eximbank frequently launched preferential programs and developed new utilities to customers.

AS OF 31/12/2016, TOTAL NUMBER OF INDIVIDUAL CUSTOMERS REACHED

1,085,687

CUSTOMERS, INCREASING BY 7.4% AGAINST THE EARLY YEAR.

Deposit products provided by Eximbank to individual customers are demand current deposit, current deposit combo, E-Favor current deposit, term savings deposit, savings deposit with optional terms, Overnight savings deposit, 48-hour Call Deposit, Eximbank VIP savings deposit, Truong Phat Loc savings deposit, Online savings deposit, Phuc Bao An savings deposit, 50+ savings deposit, Savings deposit for beloved children, Savings deposit by salary accumulation, Installment savings deposit.

THE MANAGEMENT’S REPORTS AND ASSESSMENTS

45


EVALUATION ON

BUSINESS RESULTS (continued)

RETAIL CREDITS And many attractive promotion programs for individual customers placing deposits at Eximbank with assorted, practical and high-valued gifts and also high chance of awardwinning. Moreover, customers depositing money at Eximbank are also entitled to many utilities:

I

n 2016, apart from training and developing RBO (retail banking officer) sales team with intensive professional skills and market in-depths to promote retail banking activity, Eximbank continued launching programs of house loan, car loan, production loan, consumption loan, etc. with preferential interest rates, targeting customers with stable income. As of 31/12/2016, loan balance of individual customers reached 39,840 billion VND, increasing by 3,855 billion VND (#11%) against 2015, and accounting for 46% of the network’s total loan balance. Of which, retail loan balance achieved 35,678 billion VND, up 3,983 billion VND compared to 2015.

Service of SMS receipt of savings deposit movement advice

Service of SMS receipt of savings deposit maturity date advice

INDIVIDUAL CUSTOMER LOAN BALANCE BREAKDOWN AT EXIMBANK IN 2016 4,162

35,678

380

Service of automatic interest transfer, liquidation of term deposits for automatic switching into current deposits

Retail Card, overdraft Others

54%

Attractive offers upon customers’ depositing on their birthday, with the program of Full of Joy on Birthday with Eximbank

46

ANNUAL REPORT 2016 www.eximbank.com.vn

Individuals Corporates

46%


CARD ISSUANCE AND ACQUIRING

EXIMBANK IS ONE OF THE PIONEERS IN CARD ISSUANCE AND ACQUIRING ACTIVITIES IN VIETNAM’S CARD MARKET.

International credit card for customer segment passionate in UEFA Champions League named Eximbank MasterCard® UEFA Champions League.

I

n a harsh competitive climate, with its efforts, Eximbank has issued 221,000 cards, raising the total number of cards issued to 1.85 million cards, up 14% from 2015. Through regular promotion programs and attractive offers implemented during 2016, Eximbank’s card use volume reached 17,000 billion VND, up 7% from 2015.

With the aim of always innovating and leading the trend, Eximbank has been focusing on improving the quality of existing products and services and especially card ones to accommodate demands of various customer segments. Prominent card products launched by Eximbank in 2016 were as follows:

Credit card for customer segment having cars named Eximbank Visa Auto Card.

Credit card for high-class customer segment named Eximbank MasterCard® One World.

Besides, with the direction of comprehensive development, alliance and cooperation expansion to bring about convenience in card use, Eximbank has spread its ATM and POS connections to all banks in Vietnam and diversified the business types of card acquirers, especially in online payment environment. Eximbank’s merchant network also enlarged with over 7,500 points of sale (POS) and 260 ATMs located in

major locations nationwide. Total acquiring volume in 2016 reached 16,000 billion VND, increasing by 4% against 2015. Along with the overall development orientation of the whole system, card services will be a spike product of Eximbank in 2017 as well as subsequent years and will greatly contribute to the brand promotion and operating income of the bank.

THE MANAGEMENT’S REPORTS AND ASSESSMENTS

47


EVALUATION ON

BUSINESS RESULTS (continued)

REMITTANCE PAYOUT

EXIMBANK HAS BOOSTED “QUICK REMITTANCE PAYOUT CHANNEL” INTO ACCOUNT/ CARD WHICH IS THE FIRST “QUICK” REMITTANCE PAYOUT SERVICE CHANNEL AT EXIMBANK AS WELL AS THE VIETNAMESE MARKET.

A

ccording to the figures of the State Bank of Vietnam HCMC Branch, total inward remittances to Vietnam in 2016 were about 9 billion USD, down 28% compared to the previous year. Although the country’s total amount of remittances declined, total inward remittance volume of Eximbank in 2016 still posted dramatic increase with more than 35% up over the same period of 2015 and fulfilling 117% of 2016’s target. Remittance markets seeing considerable growth was Japan and traditional markets were still mainly the United States, Australia, Germany, etc. This achievement came from continuous efforts in expanding cooperation with domestic and foreign remittance partners, improving service quality, investing to renovate payment technology and providing fast, safe and convenient payout service, diversifying the payment channels to meet increasing needs of customers.

48

ANNUAL REPORT 2016 www.eximbank.com.vn

TOTAL INWARD REMITTANCE VOLUME OF EXIMBANK IN 2016 STILL POSTED DRAMATIC INCREASE WITH MORE THAN

35

%

Eximbank has boosted “Quick remittance payout channel” into account/card which is the first “Quick” remittance payout service channel at Eximbank as well as the Vietnamese market. The service connects online payments from the sending side and recipients may receive money into their accounts within minutes after the remitters complete remittance procedures. This remittance payment channel operates on 24/7 basis including weekends and holidays and is considered a breakthrough helping Eximbank’s remittance service establish its brand name, prestige and competitiveness both locally and internationally.


OVERSEAS OUTWARD REMITTANCE

EXIMBANK IS CURRENTLY OFFERING 02 OVERSEAS OUTWARD REMITTANCE CHANNELS, INCLUDING REMITTANCE VIA SWIFT AND QUICK REMITTANCE THROUGH MONEYGRAM FOR CUSTOMERS TO CHOOSE AS APPROPRIATE WITH THEIR DEMAND WITH COMPETITIVE PRICING.

O

verseas study remittances accounted for 78% of total overseas outgoing money transfer volume and remained stable over the years. Outward remittance was mostly made to the US market, followed by Canada, Australia, New Zealand, Japan, etc. With customer-centric criteria, Eximbank has continuously enhanced service quality, offered fast, safe and convenient payment services to meet diversified needs

of customers. On the basis of years of experience in the field of overseas study remittance and international payment, Eximbank has always brought to customers trust and satisfaction in its service quality as well as professionalism.

THE MANAGEMENT’S REPORTS AND ASSESSMENTS

49


EVALUATION ON

BUSINESS RESULTS (continued)

DOMESTIC REMITTANCE SERVICE

DOMESTIC REMITTANCE SERVICE IN 2016 WAS ATTENTIVELY PROMOTED BY EXIMBANK IN THE DIRECTION OF INCREASING UTILITIES AND TRANSFER SPEED FOR CUSTOMERS

I

n 2016, beside the traditional domestic inter-bank money transfer, Eximbank focused on boosting 24/7 fast money transfer service with diversified remittance channels such as transaction counters, Internet Banking, Mobile Banking.

Accordingly, customer only need to select the destination bank, and enter the beneficiary’s account number or card number, the system will automatically display the beneficiary name so as for the

24/7

ANYTIME-ANYWHERE

customer to check information before transferring money; And just a few seconds after placing the money transfer order, money already reaches the beneficiary. Operation is simple and can be done at anytime, anywhere on 24/7 basis in a safe, fast and convenient manner.

BANCASSURANCE

O

n 20/07/2016, Vietnam Export Import Commercial Joint Stock Bank (Eximbank) and Generali Vietnam conducted a signing ceremony of exclusive

bancassurance agreement with 5 year term to offer new insurance service to customers. Eximbank’s customers will get advice from professional consultants on

insurance products satisfying all diversified needs, ensuring financial safety for the customers themselves and their families.

As of end of 2016, Bancassurance service with exclusive cooperation model, coming into official operation just from the last 5 months of the year, achieved some following results: Insurance premium revenue : 19.64 billion VND, reaching 140% of 2016’s plan. Profit from insurance : 13.96 billion VND, reaching 107% of 2016’s plan.

50

ANNUAL REPORT 2016 www.eximbank.com.vn


THE MANAGEMENT’S REPORTS AND ASSESSMENTS

51


EVALUATION ON

BUSINESS RESULTS (continued)

CORPORATE BANKING SERVICES CORPORATE FUND RAISING

E

ximbank launched several deposit programs for more current deposits to create fund sources with good interest rates. In the meanwhile, to help improve the loan to deposit ratio, Eximbank continuously rolled out mid- and long-term deposit products for corporate customers like: I-Plus Deposit, Long-term Preferential Deposit, etc. The Bank also carried out various programs to encourage payment volume increase and from that, attract funds from small and medium enterprises (SMEs).

The main service activities for corporate customers include: domestic payment, overseas outward payment, guarantee, on-behalf collection and payment, etc. In 2016, Eximbank constantly improved and upgraded its existing products and services, researched and offered to the market new products and services with many outstanding features and utilities. As a result, domestic payment and overseas outward payment volumes of corporate customers posted certain growth compared to 2015.

CORPORATE CREDITS

IN 2016, TO ASSIST THE BANK’S CORE CUSTOMERS BEING ENTERPRISES OPERATING IN EXPORT AND IMPORT FIELDS, MANY ATTRACTIVE CREDIT PRODUCTS SUCH AS FIN IMEX, FIN EXPORT, ETC. WERE IMPLEMENTED TO RAISE LOAN BALANCE, ATTRACT NEW CUSTOMERS AND MAINTAIN EXISTING CLIENT BASE. THANKS TO THAT, OUTSTANDING LOANS OF CORPORATE CUSTOMERS INCREASED SIGNIFICANTLY UPON PRODUCT DEPLOYMENT;

B

esides, in order to ensure compliance with prudential ratios according to Circular 06 of the State Bank of Vietnam effective from early 2017, the corporate banking products were launched with focus on short-term outstanding loan expansion, thereby contributing to improve short-term loan balance structure of corporate customers. Specifically, short-term loan balance rose by over 5% compared to 2015.

52

ANNUAL REPORT 2016 www.eximbank.com.vn

Regarding new customer development, in 2016, corporate customer base went up by more than 10% against 2015 with outstanding loans representing more than 8% of total corporate loan balance. Of which, new SME customers accounted for more than 95% of the total number of new customers with outstanding loans reaching over 78% of the total outstanding loans of new customers in 2016. Eximbank has also received trust from different agencies and departments, and actively participated in the State’s intentions by cooperation with the People’s Committee, departments, sectors, and the State Bank of Vietnam to carry out such programs as loans to the stabilization program of HCMC, loans to goods suppliers for companies stabilizing the market, credit program for agricultural subsidy, and connection program of banks and enterprises.


INTERNATIONAL SETTLEMENT

D

espite the difficulties and challenges due to unfavorable economic context and global trade slowdown, Eximbank continued keeping its stable operation in international settlement business. International payment volume in 2016 reached 5,982 million USD, slightly decreasing by 0.54% compared to 2015. With the advantages in brand name and export-import financing, Eximbank has aimed at customercentric objectives with product diversification and service quality enhancement policies to bring about more added values to customers, and cooperation expansion with local and international banks.

These will be the effective tools to keep maintaining and deploying the solid foundations for the Bank’s

international settlement activities in the coming years.

International settlement volume through years 7,000 6,000

5,862

6,014

(Unit: million USD)

5,982

5,000 4,000 3,000 2,000 1,000

2014

2015

2016

THE MANAGEMENT’S REPORTS AND ASSESSMENTS

53


EVALUATION ON

BUSINESS RESULTS (continued)

ELECTRONIC BANKING SERVICES EXIMBANK’S E-BANKING SERVICES ENABLE CUSTOMERS’ EASY AND CONVENIENT ACCOUNT MANAGEMENT AND FINANCIAL TRANSACTION EXECUTION EVERYWHERE, EVERYTIME WITH TIME AND COST SAVING.

C

ustomers are able to perform almost all financial transactions with Eximbank by means of Internet Banking, Mobile Banking, and SMS Banking without arriving at the Bank’s transaction units and without restriction on the timing nor geographical distance. E-banking service performance in

54

ANNUAL REPORT 2016 www.eximbank.com.vn

2016 has reached the proposed plan, specifically number of customers increasing by 14% and earnings growing by 44% compared to 2015. Besides, in order to ensure safety, security as well as assure customers in e-banking transactions, Eximbank has applied several

world’s advanced methods of authentication for performance of transactions via Internet Banking, Mobile Banking channels. Simultaneously, in parallel with continuous improvement and enhancement of E-banking service quality, in 2016, Eximbank has also developed many customer care and promotion programs, attracting customers to register for and use the services, such as: “Gold days Topup with Gift Bustle”, “30% off by Eximbank upon payment for television charge via Payoo”, “E-banking – 90 Days for Corporate Customers Growth”, “Preferential Exchange Rates with Internet Banking”, etc.


Registration for Vntopup, E-wallet service

Information inquiry Intrabank and interbank money transfer

Payroll service for corporate customers

Online registration for SMS Banking

Ngân hàng điện tử

Card services

********

Credit management (loan repayment, payment for credit card loan balance)

Registration for transfer of interest from term account to demand account

Bills payment (electricity, water, telecommunication, internet, cable TV, air fares, etc.)

Mobile phone top-up (VnTopup) Online opening/ closing of savings deposits

CURRENTLY, EXIMBANK HAS PROVIDED QUALITY, SECURED, RELIABLE AND EFFECTIVE ELECTRONIC BANKING SERVICES WITH PRODUCT DIVERSIFICATION SATISFYING MOST OF THE NEEDS OF INDIVIDUAL AND CORPORATE CUSTOMERS BY BASIC TO ADVANCED UTILITIES.

THE MANAGEMENT’S REPORTS AND ASSESSMENTS

55


EVALUATION ON

BUSINESS RESULTS (continued)

CAPITAL TRADING Implementing the directions of the State Bank of Vietnam as strengthening financial capability and asset quality and firmly improving liquidity, in 2016, Eximbank has stepped up its fund mobilization from the primary market while sharply reducing funding from the interbank market. With the view to increase operational safety and comply with the State Bank of Vietnam’s risk management policies, Eximbank’s Treasury Division has shifted its role from trading to mainly balancing effective fund use, ensuring system’s liquidity.

SCALE OF INTERBANK CAPITAL TRANSACTIONS IN 2016

Receipts/Borrowings

Placements/Loans

(Unit: billion VND)

(Unit: billion VND)

300,000

300,000

250,000

250,000

225,691

+ 24% against 2015

200,000

200,000

150,000

150,000

184,596 148,479

-63% against 2015

83,767

100,000

100,000

50,000

50,000

2015

Volume

Receipts/Borrowings Placements/Loans

56

ANNUAL REPORT 2016 www.eximbank.com.vn

2016

2015

2016

2016

2015

Increase/decrease against 2015

83,767

225,691

-63%

184,596

148,479

24%


FX TRADING

2

016 was a very volatile year of the world foreign exchange market with big events taking place in a very unexpected direction compared to most of previous forecasts: Brexit - The British opted out from the European Union, Donald Trump was elected president of the United States, etc. However, contrary to the unpredictable developments in the world market, the domestic foreign exchange market experienced a relatively stable year. The State Bank of Vietnam achieved most of its goals in regulating the foreign exchange market (stabilizing exchange rates, increasing foreign exchange reserves, etc.). That very

phase difference on one hand created many difficulties and challenges, but on the other hand brought about many opportunities for FX trading business of Eximbank. Thanks to active preparations on such aspects as: Human Resources (holding regular seminars, professional enhancement classes for the trading staff of the whole system, introducing KPI mechanism for FX trading to encourage the sales staff’s volume increase); Products (continuously updating, developing utilities of FXrelated products to best serve the diverse needs of various customers); Eximbank’s FX trading business in 2016 achieved very positive results: FX trading volume with the corporate and individual customers was nearly USD 8 billion (up 18% against 2015 and nearly reaching the planned target); Net income from FX trading activity also posted satisfactory growth in 2016.

THE MANAGEMENT’S REPORTS AND ASSESSMENTS

57


EVALUATION ON

BUSINESS RESULTS (continued)

GOLD TRADING

I

n 2016, the gold market witnessed two events greatly impacting the gold price being a referendum for Britain to leave the EU in late June (Brexit) and the US presidential election in early November. In the domestic market, gold price saw strong fluctuations, attracting many investors to participate in the market.

Taking the motto of best serving the needs of customers as the leading objective, Eximbank has established a widespread network of Branches and Transaction Offices to buy and sell gold bars, improved the quality of sales staff, and offered added utilities to customers. As a result, the gold bar market share of Eximbank has been further enlarged and takes up the largest in terms of SJC gold bar in the whole country.

FINANCIAL INVESTMENT Book value of the investment portfolio: Unit: Billion VND 31/12/2016

31/12/2015

21,574

20,101

Government bonds

9,455

4,073

Credit Institution bonds

3,500

4,600

Corporate bonds

1,590

5,198

1,972

2,066

Bonds

Shares

The bond balance of 2016 increased by 7.3% compared to end of 2015: ™™

Government bonds: served for liquidity needs and business objectives of Eximbank. In 2016, the portfolio of government bonds surged by 132% over 2015.

™™

Credit Institution Bonds: In 2016, Eximbank did not make new investments in Credit Institution bonds due to capital prioritization for credit activities of the system; Credit Institution Bond portfolio saw a decline of 1,100 billion VND due to bond maturity.

™™

Corporate Bonds: Corporate Bonds dropped by 3,608 billion VND due to bond maturity and premature recovery of high-risk bonds to reinvest in less risky projects. This balance did not include VAMC bonds.

Shares: In 2016, focus was put on liquidation of old inefficient investments; No new investment incurred.

58

ANNUAL REPORT 2016 www.eximbank.com.vn


CUSTOMER-BASE DEVELOPMENT TOTAL CUSTOMERS OF EXIMBANK AS AT END 2016 WERE

1,136,686

CUSTOMERS, RISING BY 7.4% (OR 78,508 CUSTOMERS) AGAINST THE EARLY YEAR, OF WHICH: ™™

Individual customers reached 1,085,687 customers (accounting for 96%), up 7.4% compared to the early year (or 74,639 customers).

™™

Corporate customers reached 50,999 customers (accounting for 4%), up 8.2% compared to the early year (or 3,869 customers).

THE MANAGEMENT’S REPORTS AND ASSESSMENTS

59


FINANCIAL

CONDITION

QUALITY MANAGEMENT

E

ximbank has always strived to provide the best customer service in terms of consultancy and support in response to inquiries, reflections on products and services, employees’ service

60

ANNUAL REPORT 2016 www.eximbank.com.vn

attitude to customers. Moreover, based on the data collected from customer interaction channels such as Call Center, website survey, etc., Eximbank has adjusted and improved its policies and regulations

on products and services to meet customers’ expectations in combination with diverse and highquality financial solutions and hightech content products.


IMPROVEMENTS IN

ORGANIZATION STRUCTURE, POLICY AND MANAGEMENT

RISK MANAGEMENT

LIQUIDITY RISK MANAGEMENT

MARKET RISK MANAGEMENT

WITH THE DESIRE TO INTEGRATE AND APPROACH INTERNATIONAL RISK MANAGEMENT MODELS (ESPECIALLY BASEL II), EXIMBANK HAS BEEN ACTIVELY ESTABLISHING AND INVESTING IN RISK MANAGEMENT FRAMEWORKS AND SUPPORTING MODELS IN ACCORDANCE WITH INTERNATIONAL STANDARDS

CREDIT RISK MANAGEMENT

OPERATIONAL RISK MANAGEMENT

THE MANAGEMENT’S REPORTS AND ASSESSMENTS

61


IMPROVEMENTS IN

ORGANIZATION STRUCTURE, POLICY AND MANAGEMENT (continued)

LIQUIDITY RISK MANAGEMENT

L

iquidity is a crucial factor for financial institutions. Most of the failures of financial institutions occurred largely due to failing to ensure their liquidity. To prevent and cope with issues relating to liquidity risks, Eximbank has set up a system of full and cautious internal regulations and procedures on liquidity risk management in line with standards of the whole

industry, with stipulations on solvency management and on prudent ratios in operations by the State Bank, and with Eximbank’s business characteristics. The stresstest model has been applied by Eximbank to forecast cases where the Bank might encounter problems of liquidity risk, and to offer the most optimal provisional treatment plans accordingly.

MARKET RISK MANAGEMENT

Interest rate risk management

Exchange rate risk management

Investment price risk management

62

ANNUAL REPORT 2016 www.eximbank.com.vn

For timely response to and handling of interest rate risk, Eximbank has researched, built and implemented risk management models: Gap in assetliability revaluation period (interest rate GAP technique), interest sensitivity ratio (ISR), interest rate risk assessment by the net present value method with respect to interest-sensitive items (NPV). Eximbank will continue to research, build and enhance the internal regulation system including the Regulation on interest rate risk management to ensure safe business operation of the Bank in compliance with relevant stipulations of the State Bank, as well as gradually approach international practices which are in the short run Basel II International Treaty. To manage exchange rate risk, Eximbank has researched, built and promulgated regulations on policy, trading limits, foreign exchange risk measuring and control instruments in strict compliance with stipulations of the State Bank and Vietnamese laws, and launched derivative products with the aim of preventing issues resulted from exchange rate risks. To manage investment price risk, Eximbank has implemented portfolio measurement and assessment methods at market price, and set up limits for investment price risk (e.g. securities investment limit, stop loss limit, risk provisioning limit, etc.) in line with the Bank’s objectives and business strategy from time to time.


OPERATIONAL RISK MANAGEMENT

W

ith the desire to integrate and approach international risk management models (especially Basel II), Eximbank has been actively establishing and investing in risk management frameworks and supporting models in accordance with international standards. Specifically, in 2016, Eximbank issued Operational Risk Management Policy and the Procedures of Operational

Risk Event Data Collection; in early 2017, Eximbank also promulgate Operational Risk Appetite. This serves as a prerequisite for Eximbank to review the performance of the units and revaluate the barricades and control stages upon operation execution, from that aiming to assess and rank the branches based on operational risk and develop tools to monitor key operational risk indicators (KRIs).

Major contents in operational risk management:

Internal fraud-related risk management

™™

Eximbank issued internal regulations and conditions for the appointment of leadership positions, and credit officers in the officer appointment task, which was centralized to Head Office only, while Branches and Regions had no authority;

™™

Eximbank always considered evaluating the officer capability of each branch and transaction office to assign appropriate credit approval authority;

™™

Segregating the functions of sales officers and credit appraisal officers by credit processes;

™™

Issuing new regulations on risk management, enhancing the role of internal control system, etc.

™™

Having established a new management mechanism for transaction approval authority in the direction of increasing the units’ proactiveness and responsibility while ensuring internal control;

In addition, the inspection and supervision were frequently carried out by Internal Inspection and Control Teams at most of the branches after transaction execution so as to mitigate risks of such operations as credit, international settlement, cash, card;

Risk management relating to operational interruption and errors in information technology system

Eximbank conducted the construction of a backup Data Center in Binh Duong and set up business continuity plan upon occurrence of incidents such as responses to liquidity and information technology incidents, and information crisis treatment;

Risk management in connection with products and services

Eximbank issued regulations and guidance on the implementation procedures for each specific product and service, focused on training new employees, ensured cross inspection and control in operations, established and managed approval limits on the trading systems in line with new models of business activities and risk limits, and promoted the role of internal control system;

External fraud-related risk management

Eximbank has always attached special importance to customer due diligence, strictly performed operational procedures for each product and updated riskrelated information for warning the network;

THE MANAGEMENT’S REPORTS AND ASSESSMENTS

63


IMPROVEMENTS IN

ORGANIZATION STRUCTURE, POLICY AND MANAGEMENT (continued)

In performance of commitments with the partners as foreign institutions, and simultaneously enhancement of efficiency of the anti-money laundering system, in 2016, Eximbank entered into a contract to use the black list provision service with Accuity and successfully integrated such lists into the anti-money laundering system. Eximbank has also deployed a tool to look up the entities subject to transaction restriction, eNameCheck, to every staff and officer to facilitate transaction execution while satisfying anti-money laundering requirements.

Money-laundering risk management

CREDIT RISK MANAGEMENT

C

redit risk is the greatest risk to the bank’s business; therefore, credit risk management is an activity that receives special attention and thorough control from the Board of Directors, the Board of Management to direct business units. Credit risk management is operated on the principles of independence and centralization. Accordingly,

in 2016, Eximbank continued implementing centralized credit risk management through not increasing credit approval authority of Branches and Transaction Offices while vesting credit approval authority to Head Office levels like Regional Directors, Credit Center’s Credit Board, Head Office Credit Board, Head Office Credit Council, and Central Credit Council for approving the dossiers exceeding the authority of Branches

and Transaction Offices. Besides, in order to ensure the principles of objectivity and transparency, the delegation of authority to each approval level, each business unit is implemented according to specific criteria and re-assessed annually. The development of credit policy and risk appetite, monitoring, report and control were conducted regularly, independently and centrally at the Operational Supervision Division.

Credit risk management activity at Eximbank is implemented in accordance with the following principles:

1

2

Compliance with the provisions of the Law on Credit Institutions, other relevant laws, and internal regulations of Eximbank;

4

Cross checking and control in credit activities of Eximbank;

Autonomy in lending activities and assumption of responsibility for lending decisions; Publicity, transparency, consistency in all credit granting regulations;

5

6

7

Performance of inspection and supervision at all stages of the credit granting process, and regular and continuous maintenance of the same.

Definition of responsibilities of each unit in the process of credit granting and loan management.

Regular review of credit policies and regulations to re-assess the synchronism and compliance with relevant law stipulations.

GRADUALLY IMPLEMENTED THE ADOPTION PLAN OF

64

Risk dispersal, investment portfolio diversification in credit activities;

3

ANNUAL REPORT 2016 www.eximbank.com.vn

IN 2016, APART FROM KEEPING PERFECTING THE INFRASTRUCTURES TO SERVE FOR THE ESTABLISHMENT OF INTERNAL CREDIT RATING SYSTEM, EXIMBANK HAS ALSO GRADUALLY IMPLEMENTED THE ADOPTION PLAN OF BASEL II ACCORDING TO THE STATE BANK OF VIETNAM’S ROADMAP BY 2018 - 2020.


INFORMATION TECHNOLOGY SYSTEM

INFORMATION TECHNOLOGY (IT) PLAYS A PIVOTAL ROLE IN MANAGEMENT, BUSINESS DEVELOPMENT, AND COMPLIANCE REQUIREMENTS OF A MODERN BANK. IT IS A TOOL TO CREATE ADVANTAGES AND DIFFERENTIATION OF THE BANK IN MARKET COMPETITION.

B

eing aware of the importance of IT, Eximbank has boosted application of information technology in banking operations, invested and equipped with modern devices, and regularly upgraded the system to meet the Bank’s business and compliance requirements. Following results achieved in 2015, in 2016, Eximbank focused its resources on deploying key IT projects including Data Center project and other projects to meet the Bank’s management, compliance and business development requirements, and achieved the following results:

Having rolled out IT projects: ™™

™™

Data Center Construction Project: Completed the construction of the Data Center building and installation of the server system, and relocated the server system to the new Data Center in Binh Duong. In addition to the key IT projects, Eximbank has been implementing other projects and performing the management, maintenance and development of IT systems to ensure stable and safe operation of the system to serve the Bank’s business development.

Having maintained stable operation of key IT systems such as Corebanking, Card, Internet Banking, Mobile Banking, helping Eximbank not only to focus on its traditional business operations but also to provide new services to customers, meeting the Bank’s needs for business expansion. Having strengthened the implementation of technical measures and security and safety policies for the IT system, performed the management and supervision over the operation of network systems and security, ensuring safe operation of the system. Having continued perfecting ITrelated internal procedures to improve the management efficiency. In 2016, Eximbank continued to issue important regulations and procedures to comply with the

requirements of new circulars of the State Bank of Vietnam on safety and security of IT system and payment systems, card systems, etc. In consistence with the business strategy of focusing on boosting retail banking, Eximbank directed the IT operations to focus on supporting retail business, diversifying products and services, and enhancing Electronic Banking product and service quality. In 2017, Eximbank continues to develop IT system according to the following orientations: ™™

To continue deploying the projects of managing centralized trade operations, internal credit rating system.

™™

To implement Card and business development projects to continue providing new Card and Electronic Banking products and services according to the Bank’s retail strategy.

™™

To implement IT system safety and security projects to perfect the safety and security system in technical aspect and protect the engineering infrastructure against threat of attacks by hightech crimes.

™™

To continue to perfect the organizational structure, standardize internal procedures related to IT system to improve the management efficiency and transparency in Eximbank’s IT system management.

THE MANAGEMENT’S REPORTS AND ASSESSMENTS

65


IMPROVEMENTS IN

ORGANIZATION STRUCTURE, POLICY AND MANAGEMENT (continued)

COOPERATION WITH FOREIGN STRATEGIC SHAREHOLDER

W

ith commitment of long-term investment in Vietnamese market, SMBC has always accompanied and supported Eximbank in funding and training, and helped to develop risk management and corporate governance competence. In order to promote advantages of each party, SMCB and Eximbank has established Vietnamese – Japanese business matching regimes, referred partners and

supplied financial services to each other’s customers. In addition, SMBC has also seconded and assigned many officers to work at Eximbank to together with Eximbank develop information technology infrastructure, research for product innovation, especially establish and implement Eximbank Restructuring and Strategy scheme for the period of 2016 – 2020.

INTERNATIONAL RELATIONS

I

n 2016, with unfavorable factors related to the bank, international relations activities focused on maintaining and well managing the relationship with existing correspondent banks and international partners of Eximbank through taking initiatives to approach partners to update and share information, discuss on possible avenues for expanded cooperation to better support customers’ needs for international transactions. Thanks to that, the collaborations, facilities, multifaceted supports in operations, information, training, etc. have

been increasingly enhanced. Simultaneously, in line with the Bank’s internal restructuring process, the quality of human resources’ professional competence needs to be further improved. For that reason, Eximbank has cooperated with its principal correspondent banks to carry out operational training sessions for related employees, contributing to bring about excellent quality in international payments for Eximbank as recognized by the leading banks in the world like JPMorgan Chase, Bank of New York Mellon, etc.

Moreover, apart from bilateral discussions and negotiations, last year Eximbank also actively participated in the world’s and region’s major conferences and seminars in banking sector, such as: Asian Development Bank (ADB)’s Annual Conference, Asian Bankers Association General Meeting and Conference, Sibos 2016, etc. to well promote its brand name to the world’s banking financial community, and seek for new business opportunities with both existing and potential partners.

WITH THE EFFORTS HAVING BEEN MADE OVER THE PAST TIME AND WIDE CORRESPONDENT NETWORK WITH NEARLY 900 BANKS AND BANKS’ BRANCHES IN AROUND 80 COUNTRIES WORLDWIDE, EXIMBANK WILL CONTINUE STRENGTHENING ITS INTERNATIONAL ACTIVITIES TO FURTHER AFFIRM AND HEIGHTEN EXIMBANK’S BRAND AND POSITION.

66

ANNUAL REPORT 2016 www.eximbank.com.vn


SUSTAINABLE DEVELOPMENT REPORT units. Specifically, Eximbank launched a quality service emulation program among the system’s units to encourage them to better customer service quality and serve as the basis for annual rating and classification over them. Survey and working with reputable local and foreign conglomerates and companies for the design and construction of quality management system have also been conducted.

I

n parallel with the improvement of customer care policy measures, Eximbank has also enhanced the interaction and information consistency among the internal

To ensure the benefits for all stakeholders, “Vision, Missions and Core Values of Eximbank” were developed and disseminated to all Eximbank employees for their good understanding, mastering and implementation.

TAKING THE MOTTO OF CUSTOMERS FIRST, FROM CUSTOMER INTERACTION CHANNELS, EXIMBANK HAS CONSOLIDATED INTO CASE STUDIES TO COMMUNICATE TO THE TELLERS AT THE UNITS IN THE SYSTEM FOR THEIR REFERENCE AND GIVING OUT SUITABLE HANDLING SOLUTIONS MEETING REQUIREMENTS ON BUSINESS ETHICS AND TRANSPARENCY.

THE MANAGEMENT’S REPORTS AND ASSESSMENTS

67


2017 BUSINESS PLAN IN 2017, IN THE CONTEXT OF HARSH COMPETITION AMONG BANKS IN LENDING INTEREST RATES, EXIMBANK’S PROJECTED CREDIT GROWTH IN 2017, EXIMBANK DEFINES ITS OBJECTIVES AND MISSIONS IN 2017 AS SPECIFICALLY AS FOLLOWS:

TOTAL ASSETS

150,000

BIL. VND

UP 16% AGAINST 2016

FUNDS RAISED FROM THE PRIMARY MARKET

120,000

BIL. VND

UP 17% AGAINST 2016

68

ANNUAL REPORT 2016 www.eximbank.com.vn

CREDIT EXPOSURE

108,875

BIL. VND

UP 14% AGAINST 2016


3

NPLS/TOTAL LOAN BALANCE

< %

600

PROFIT BEFORE TAX

BIL. VND

UP 60% AGAINST 2016

THE MANAGEMENTâ&#x20AC;&#x2122;S REPORTS AND ASSESSMENTS

69


SOCIAL AND ENVIRONMENTAL RELATED ASSESSMENT REPORT

ASSESSMENT ON

LABOUR-RELATED ISSUES

MOST OF EXIMBANK’S EMPLOYEES HAVE GOOD AND SOLID PROFESSIONAL SKILLS AND COMPETENCE WITH MANY YEARS OF EXPERIENCE IN FINANCE - BANKING INDUSTRY, FIRM PROFESSIONAL BACKGROUND AND DEVOTION TO THE DEVELOPMENT OF EXIMBANK

E

ximbank’s total employees as of December 31, 2016 was 5,916 persons, down 323 persons (or 5%) compared to end of 2015. Such reduction is mainly due to limitation in personnel increase at the supporting units, leading to no additional recruitment upon occurrence of personnel’s labor contract termination so as to

increase labor productivity, while still promoting sales force expansion to raise staff for distribution channels at business units throughout the system. Most of Eximbank’s employees have good and solid professional skills and competence (79% of whom are university graduates or above) with many years of experience in Finance

– Banking industry, firm professional background and devotion to the development of Eximbank (80.4% of staff having 02 years of experience and more at Eximbank). Young, dynamic, creative, enthusiastic and properly trained staff is one of the prerequisite and favorable conditions for the stability and development of Eximbank at present and in the future.

ASSESSMENT ON THE

BANK’S RESPONSIBILITY TOWARDS LOCAL COMMUNITY

G

oing forward the tradition from the first days of establishment to date, in 2016, Eximbank kept on performing and encouraging and creating conditions for employees to participate in and contribute to charitable and social security

70

ANNUAL REPORT 2016 www.eximbank.com.vn

activities, such as the “Sharing and Giving Affection” program having visited and presented gifts to the Central people who were flooded, given gifts to poor people in Dong Nai, etc.; the “Full Moon Festival” presenting moon-gifts to poor children in Bac Lieu; the

program of visiting and giving gifts to Vietnamese heroic mothers in Quang Nam, etc.; Donation program to aid for Eximbank’s employee whose house was burned down by fire; Scholarship program for university students, etc.


GATHER ALL PRIORITIES TO STRENGTHEN GOVERNANCE AND ADMINISTRATION APPARATUS, COMPLETE ORGANIZATION MODEL TO INCREASE MANAGEMENT AND OPERATION EFFICIENCY, AND ESTABLISH SPECIAL PILLAR TO FOCUS ON DEVELOPING EXIMBANK’S ADVANTAGES.

THE BOARD OF DIRECTORS’ EVALUATION ON THE BANK’S PERFORMANCE

72 The Board of Directors’ evaluation on operational aspects of the Bank. 74 The Board of Directors’ evaluation on operational aspects of the Management. 75 Plans and orientations of the Board of Directors.

THE BOARD OF DIRECTORS’ EVALUATION ON THE BANK’S PERFORMANCE

71


THE BOARD OF DIRECTORS’ EVALUATION ON

OPERATIONAL ASPECTS OF THE BANK

REGARDING GOVERNANCE AND ADMINISTRATION

REGARDING BUSINESS ACTIVITIES

The last 2016 was a challenging year to the operations of Eximbank’s Board of Directors due to adverse information in the market. The Board of Directors fully performed its responsibilities in accordance with the regulations of the Law on Enterprises 2014, Law on Credit Institutions, Eximbank’s Charter and relevant law stipulations. The Board of Directors held 25 meeting sessions and 173 opinion polls in writing. Board of Directors had approved some issues including personnel appointment, regimes

for employees, internal procedures and regulations, policies related to business operations, financial investment, debt handling, asset disposal, risk management, etc., serving as basis for the Management to deploy the implementation. In addition, the Board of Directors also resolved financial legacy issues, handled recommendations of the State Bank of Vietnam’s Inspectorate and shareholders, as well as held annual General Meeting of Shareholders (“AGM”).

In the context of many obstacles and adverse information in the market such as EIB shares being put under warning status since 08/4/2016 according to the Decision of Hochiminh Stock Exchange due to the retroactive adjustment of the undistributed profits as at

31/12/2014 and 31/12/2015, the Board of Directors together with the Management and all employees of the Bank had strived to overcome challenges and maintained stability, safety and growth for the Bank’s operations.

Some financial highlights as of 31/12/2016 were as follows:

128,802

102,351

BIL. VND

TOTAL ASSETS, UP 3% COMPARED TO 2015

86,891

FUNDS RAISED FROM ECONOMIC ENTITIES & INDIVIDUALS, UP 4% COMPARED TO 2015

95,511

BIL. VND

LOAN BALANCE, UP 2.5% COMPARED TO 2015

NPLS (GROUPS 3 TO 5)

2.95%

OF TOTAL LOAN BALANCE, COMPLYING WITH THE STATE BANK OF VIETNAM’S REGULATION.

BIL. VND

BIL. VND

TOTAL CREDIT EXPOSURE, DOWN 0.7% COMPARED TO 2015(*) * Total credit exposure in 2016 actually posted increase. However, by the reason that Eximbank proactively recovered over 3,500 billion VND of those loans and corporate bonds with potential risks and had to call back around 3,500 billion VND of loan balance in accordance with the State Bank of Vietnam’s Inspection Conclusion; as such, total credit exposure in 2016 decreased by 0.7% compared to 2015.

( )

PROFIT IN 2016 MUCH GREW COMPARED TO THAT IN 2014 AND 2015 DESPITE THE FACT THAT EXIMBANK WAS STILL AFFECTED BY NPLS AND PROVISION FOR LOAN LOSSES REQUIRED TO BE MADE OF 1,089 BILLION VND. NET OPERATING PROFIT IN 2016 AFTER HANDLING OF FINANCIAL LEGACY ISSUES AND BEFORE CREDIT LOSS PROVISION REACHED 1,480 BILLION VND, AND REMAINING PROFIT BEFORE TAX IN 2016 WAS 391 BILLION VND.

72

ANNUAL REPORT 2016 www.eximbank.com.vn


REGARDING ORGANIZATION OF EXIMBANK’S AGM IN 2016

IN 2016, THE BOARD OF DIRECTORS APPROVED RESTRUCTURING ORIENTATIONS OF THE BANK WITH VISION, MISSIONS AND CORE VALUES OF NEW EXIMBANK. The 2016 AGM convened on 29/04/2016 failed to satisfy the conditions for conduction as required in Clause 1 Article 33 of Eximbank’s Charter as the total attending shareholders represented less than 65% of the total voting shares as per the list of shareholders recorded on 29/3/2016.

VISION

MISSIONS

The second AGM of 2016 on 24/05/2016 was conducted with sufficient attending shareholders representing at least 51% of the total voting shares as required in Clause 2 Article 33 of Eximbank’s Charter. However, the AGM lasted longer than expected as some shareholders did not keep order during the AGM, the remaining contents in the agenda had not finished yet while Eximbank had to return the meeting room to InterContinental Asiana Saigon for their preparation to welcome the delegation of the President of the United States visiting Vietnam. The second AGM of 2016 of Eximbank closed without approval on Minutes and Resolution of the General Meeting of Shareholders. The Extraordinary General Meeting of Shareholder in 2016 expected to be held on 02/8/2016 was

postponed because on 29/7/2016, the State Bank of Vietnam directed Eximbank to check and review some information related to the nomination and self-nomination rights of shareholder groups, and report to the State Bank of Vietnam prior to the State Bank of Vietnam’s approval on the candidates to be additionally elected to the Board of Directors of Eximbank. At the end of 2016, after considering the possibility of success of Extraordinary General Meeting of Shareholders while the State Bank of Vietnam was yet to approve candidates expected to be additionally elected to the Board of Directors, the Board of Directors decided to combine the contents anticipatedly submitted to 2016 Extraordinary General Meeting of Shareholders into the contents to be submitted to 2017 AGM.

EXIMBANK TO BECOME A QUALITY-LEADING COMMERCIAL BANK IN VIETNAM DRIVEN BY PROFESSIONALISM AND INTEGRITY.

Satisfy customers’ expectations by provision of customer-centric financial services and solutions.

Create a working environment that encourages and rewards competent and highly-motivated employees.

Offer diversified, high-quality and advanced technology applied financial solutions and products.

Optimize value for all stakeholders including customers, shareholders, employees and communities through the stable growth in business activities.

CORE VALUES

CUSTOMER FIRST AND RELIABLE SERVICES

BUSINESS ETHICS AND TRANSPARENCY

CREATIVITY AND INNOVATION

THE BOARD OF DIRECTORS ALSO ISSUED CODE OF CONDUCT OF EXIMBANK TO STANDARDIZE CONDUCT AND ACTION PRINCIPLES OF VARIOUS LEVELS IN THE NETWORK, IN LINE WITH THE “VISION, MISSIONS AND CORE VALUES” OF NEW EXIMBANK.

THE BOARD OF DIRECTORS’ EVALUATION ON THE BANK’S PERFORMANCE

73


THE BOARD OF DIRECTORS’ EVALUATION ON

OPERATIONAL ASPECTS OF THE MANAGEMENT

I

n 2016, the Board of Directors discharged 01 Vice President and appointed 01 new Vice President. In 04/2016, the Board of Directors appointed 01 member of the Board of Directors, who has extensive experience with many years in the banking industry, to concurrently hold the title of Chief Executive Officer. Currently, the Management includes 01 member of the Board of Directors cum Chief Executive Officer and 14 Vice Presidents. This is one of the issues that the Board of Directors expects to perfect with respect to the organizational model in the upcoming time.

74

ANNUAL REPORT 2016 www.eximbank.com.vn

In spite of failing to satisfy expectations of the shareholders and Board of Directors, the business results in 2016 were worthrecognized for the Management in performing the Board of Directors’ instructions, retaining

customer base and maintaining stable business operations under many pressures. The Management also analyzed actual situation at Eximbank, executed many temporary measures and increased credit exposure.

WITH THE DIRECTIONS OF THE BOARD OF DIRECTORS, THE MANAGEMENT STEP BY STEP ADJUSTED, RESTRUCTURED SOME SECTIONS, FUNCTIONS OF THE BANK IN LINE WITH BUSINESS DEMANDS AND RESTRUCTURING ORIENTATIONS OF NEW EXIMBANK.


PLANS AND ORIENTATIONS

OF THE BOARD OF DIRECTORS

2016 with many challenges have passed and the results achieved were still modest. Turning to 2017, the core values that Eximbank has defined being customer first and reliable services, business ethics and transparency, creativity and innovation shall serve as the foundation for Eximbank to

complete its missions and realize the vision of becoming a quality-leading commercial bank in Vietnam driven by professionalism and integrity in a not far future. With such orientations, specific action plans of the Board of Directors in 2017 are implemented as follows:

1

Execute the Board of Directors’ obligations in accordance with Eximbank’s Charter and law as regulated from time to time.

2

Review and update the Bank’s Charter.

3

Direct to establish internal credit rating system.

4

Comprehensively restructure the Bank’s operations through the orientations, instructions, support and supervision over the implementation of restructuring according to the scheme of “New Eximbank” Project Management Office including: ™™

Reorganize the Board of Directors’ structure, review and assess the number and actual operations of the Councils, Committees under the Board of Directors to optimize their advisory function to the Board of Directors.

™™

Review, arrange, appoint, and discharge personnel falling under the Board of Directors’ authority in 2017 and subsequent years subject to actual situation.

™™

Restructure business divisions: Treasury, Corporate Banking, and Retail Banking in way of promoting the management role of such Divisions in the planning, allocation of targets to Branches, Transaction Offices by each operation segment of the Bank and instructing business units to deploy the plans to achieve the assigned targets.

™™

Centralize operational and supporting sections to form an operational division.

™™

Direct to assess productivity of employees through research and application of Key Performance Indicators (KPI) and Performance Evaluation Program (PEP), and establish treatment regime to attract and develop good personnel.

™™

Establish special pillar to focus on developing Eximbank’s advantages which are trade finance and payment.

™™

Complete organization model, and decide organization structure at the Head Office and business units to increase management and operation efficiency, and ensure the thorough connection from Head Office to branches, transaction offices.

5

Orient, direct and supervise the performance of the Management related to annual business plan in line with targets and roadmap of Eximbank Restructuring and Strategy project; pay special importance to total asset quality rather than the size; not mis-apply the regulations for profit increase.

6

Support the Management on actively handling non-performing loans, problem loans to make pre-mature recovery in order to keep the overdue debt ratio within permitted prudential limit (3%).

7

Continue to resolve financial legacy issues including liabilities and assets.

8

Direct to implement risk and capital management method under Basel II standards at Eximbank in accordance with criteria and roadmap as regulated.

9

Build Eximbank’s brand name and image in way of easy to recognize, friendly, methodical and professional.

10

Approve the investment plan of innovation and development of ATM system in line with network expansion strategy.

11

Search for joint-venture strategic partner to construct the premise at No. 7 Le Thi Hong Gam, District 1, Ho Chi Minh City upon approval on the policy by the AGM.

12

Direct to accelerate the progress of Corebanking system conversion to modernize banking technology.

THE BOARD OF DIRECTORS’ EVALUATION ON THE BANK’S PERFORMANCE

75


76

ANNUAL REPORT 2016 www.eximbank.com.vn


TURNING TO 2017, WITH A NEW VISION, A NEW ORIENTATION OPERATED ON GROUNDS OF TRANSPARENCY AND CUSTOMER-DRIVEN, EXIMBANK WILL GRADUALLY DEVELOP IN A STABLE AND SUSTAINABLE MANNER.

CORPORATE GOVERNANCE 78 81 82 84 86 88

Introduction about the Board of Directors. Operations of the Board of Directors. Operations of the Councils/Committees under the Board of Directors. Introduction about the Board of Supervisors. Operations of the Board of Supervisors. Transactions, remunerations, and interests of the Board of Directors, the Board of Supervisors and the Management.

CORPORATE GOVERNANCE

77


INTRODUCTION ABOUT

THE BOARD OF DIRECTORS

Mr. LE MINH QUOC

Mr. LE VAN QUYET

Mr. Le Minh Quoc was born in 1951 with Vietnamese and Canadian nationalities, and is a Bachelor of Business Administration in Switzerland. He used to be staff, Senior Officer, Department Manager, Director, Senior Vice President of BNP Paribas Canada in Canada; Regional Manager in charge of Trade Finance for Asia, Australia and India of Banque Nationale de Paris in France; Regional Manager in charge of Trade Finance for Asia, Australia and India of BNP Paribas in Singapore; Managing Director of BNP Paribas in Taiwan; General Manager of BNP Paribas Vietnam; Deputy General Manager, Deputy Chief Comptroller of Orient Commercial Joint Stock Bank. He is currently Chairman cum Independent Member of the Board of Directors of Eximbank.

Mr. Le Van Quyet was born in 1961 in Vietnam and holds Bachelor’s degree of Economics and Master’s degree of Business Administration, and Certificate of Advanced Political Theory. He used to hold various positions at the State Bank of Vietnam in Dong Nai Province like staff, Deputy Manager of Currency Circulation Department, Deputy Manager and then Manager of Economic Analysis and Consolidation Department; At Vietcombank Dong Nai, he used to be staff, Deputy Manager of International Settlements Department, Deputy Manager of Credit Department, Manager of General and Appraisal Department, Deputy Director, Director; Vietcombank Bien Hoa Branch Director. He is currently Member of the Board of Directors of Eximbank.

Chairman of the Board of Directors – Independent Member of the Board of Directors

78

ANNUAL REPORT 2016 www.eximbank.com.vn

Member of the Board of Directors cum Chief Executive Officer


Mr. NGO THANH TUNG

Mr. DANG ANH MAI

Mr. HOANG TUAN KHAI

Mr. Ngo Thanh Tung was born in 1969 in Vietnam. He is a Bachelor of Laws, Administration and Leadership Certificate of USA, Master of Laws in USA, Doctoral researcher in USA. He used to hold such positions as Legal consultant – Managing Partner of Hong Duc Lawyers’ Office; Member of HCMC Bar Association – HCMC Bar Federation; Member of the Board of Directors of Grand Imperial Saigon Hotel Co., Ltd. (Parkhyatt Hotel Saigon); Chairman, Senior Member of the Executive Council of Vietnam International Law Firm (VILAF – Hong Duc); Visiting Lecturer of Judicial Academy; Foreign consulting member of Washington Bar Association, USA; Corporate Advisory Council of UNICEF Vietnam; Member of the Board of Directors of Aulac Corporation; Member of International Association of Defense Counsel (IADC). He is currently Member of the Board of Directors of Eximbank.

Mr. Dang Anh Mai was born in 1966 and graduated with Master’s degree from Duke University, USA. He used to hold such positions as Senior Officer, Deputy Department Manager and then Department Manager at International Cooperation Department of the State Bank of Vietnam, Expert of World Bank in the U.S., Department Manager at International Cooperation Department of the State Bank of Vietnam, Deputy Director of International Cooperation Department of the State Bank of Vietnam. He is currently a member of the Board of Directors of Eximbank.

Mr. Hoang Tuan Khai was born in 1962 in Hanoi. He graduated from Foreign Trade University with major in Foreign Trade Economics and studied Economics Management in Netherlands. He used to be Deputy Director and then Director of Vietnam National General Export – Import Joint Stock Company No.1. He is now Member of the Board of Directors of Eximbank, simultaneously, Chairman of the Board of Directors of Vietnam National General Export – Import Joint Stock Company No.1, Chairman of the Board of Directors of De Nhat Development Company, Chairman of the Board of Directors of General Real Estate Joint Stock Company No.1 and a representative for the contributed capital of Eximbank at and Board member of Vinaconex Investment and Tourism Development Joint Stock Company.

Member of the Board of Directors

Member of the Board of Directors

Member of the Board of Directors

CORPORATE GOVERNANCE

79


INTRODUCTION ABOUT

THE BOARD OF DIRECTORS (continued)

Mr. NGUYEN QUANG THONG

80

Member of the Board of Directors

Member of the Board of Directors

Mr. NAOKI NISHIZAWA

Mr. YASUHIRO SAITOH

Mr. Nguyen Quang Thong was born in 1963 in Kien Giang and is a Bachelor of Economics. He used to hold such positions as: member of the Board of Supervisors of Eximbank and member of the Board of Directors of Eximbank. He is currently member of the Board of Directors of Eximbank; simultaneously, Vice Chairman of the Board of Directors of Bao Long Insurance Company, and of Viet Long Securities Investment Fund Management Corporation.

Mr. Naoki Nishizawa was born in 1957 with Japanese nationality, and is a Master of Business Administration at Harvard University, USA and a Bachelor of Laws at Kyoto University. He is the representative of the strategic partner, Sumitomo Mitsui Banking Corporation (SMBC), at Eximbank. He used to be Deputy General Manager of Tokyo Corporate Banking Department of SMBC Tokyo, Japan; Senior Vice President and then Executive Vice President of AsiaJapanese Banking Division; Executive Vice President of Planning Department of Manufacturers Bank, Los Angeles, USA; and Executive Vice President of Planning Department of SMBC, Tokyo, Japan. He is currently member of the Board of Directors of Eximbank.

Mr. Yasuhiro Saitoh was born in 1961 with Japanese nationality, and is a Bachelor of Science in Japan; a Bachelor of Cultural Anthropology with the sub major in Global Economics in Japan; and a Bachelor of Science with major in Cultural Anthropology in France.

ANNUAL REPORT 2016 www.eximbank.com.vn

Member of the Board of Directors

He used to be Marketing Officer of Mitsui Bank Ltd.; Vice President of Global Fixed Income Investment Group, Capital Market Trading Division (Tokyo); Senior Vice President, Chief Investment Officer (Bonds, Stocks, Commodities and investment in private equity) of Asset Management Division of Sakura Trust Company (New York); Senior Executive Vice President of Treasury Department of Manufacturers Bank (Los Angeles); Standing Vice Chairman of Risk Management Committee; Member of Financial Investment Council, Member of Central Credit Council of Vietnam Export Import Commercial Joint Stock Bank. He is currently member of the Board of Directors of Eximbank.


CHANGES IN MEMBERS OF THE BOARD OF DIRECTORS Eximbank’s Board of Directors ratified Resolution No. 134/2016/ EIB/NQ-HDQT dated April 11, 2016 approving the Application for Resignation from the title of Member

of the Board of Directors of the VIth tenure (2015 - 2020) of Mr. Cao Xuan Ninh for personal reasons. The title of Eximbank’s Board member of the VIth tenure (2015 - 2020) of Mr. Cao

Xuan Ninh will be discharged under decision of the General Meeting of Shareholders in accordance with law stipulations.

SHAREHOLDING RATIO OF MEMBERS OF THE BOARD OF DIRECTORS

Full name

Mr. Le Minh Quoc Mr. Cao Xuan Ninh (*) Mr. Naoki Nishizawa

Mr. Le Van Quyet Mr. Yasuhiro Saitoh Mr. Nguyen Quang Thong Mr. Hoang Tuan Khai Mr. Dang Anh Mai Mr. Ngo Thanh Tung

No. of shares personally owned

Position

Independent Board Member cum Board Chairman Board Member Board Member Board Member cum Chief Executive Officer Board Member Board Member Board Member Board Member Board Member

Total

Name of entity Personal shareholder for shareholding which he/she ratio (%) represents

0

0.00

0

0.00

0

Sumitomo Mitsui Banking 0.00 Corporation (SMBC)

0

0.00

0 152,714 67,392 0 0

0.00 0.01 0.01 0.00 0.00

220,106

0.02

No. of shares of the entity Entity’s for which shareholding he/she ratio (%) represents

185,329,207

15.00

* Eximbank’s Board of Directors ratified Resolution No. 134/2016/EIB/NQ-HDQT dated April 11, 2016 approving the Application for Resignation from the title of Member of the Board of Directors of the VIth tenure (2015-2020) of Mr. Cao Xuan Ninh for personal reasons. The title of Eximbank’s Board member of the VIth tenure (2015-2020) of Mr. Cao Xuan Ninh will be discharged under decision of the General Meeting of Shareholders in accordance with law stipulations. ( )

OPERATIONS OF THE BOARD OF DIRECTORS Members of the Board of Directors of the Vth tenure (2015 - 2020) in 2016 directly attended 25 meeting sessions of the Board of Directors and their opinions in writing were collected for 173 times.

ACTIVITIES OF THE INDEPENDENT MEMBER OF THE BOARD OF DIRECTORS Mr. Le Minh Quoc is the independent member of Board of Directors, Chairman of Eximbank’s Board of Directors of the VIth tenure (2015-2020). The independent member

of the Board of Directors participated in the opinion contribution and voting on the issues in accordance with the provisions of the Charter and relevant laws.

LIST OF THE MEMBERS OF THE BOARD OF DIRECTORS PARTICIPATING IN THE CORPORATE GOVERNANCE PROGRAMS DURING THE YEAR The Board of Directors consists of 9 members: 01 Independent Member of the Board of Directors cum Chairman and 08 members. The members of the Board of Directors meet all the criteria set out in the Law on Credit Institutions and they had been approved by the State Bank of Vietnam in writing

regarding proposed personnel before being elected at 2015’s Extraordinary General Meeting of Shareholders (15/12/2015). In 2016, members of the Board of Directors were yet to attend training courses on corporate governance at

the training institutions recognized by the State Securities Commission (SSC) and the bank will arrange to send these members to the training course as regulated in the forthcoming time when the training institutions recognized by the SSC organize such training courses. CORPORATE GOVERNANCE

81


OPERATIONS OF

COUNCILS AND COMMITTEES UNDER THE BOARD OF DIRECTORS

AT PRESENT, COUNCILS AND COMMITTEES UNDER THE BOARD OF DIRECTORS CONSIST OF CENTRAL CREDIT COUNCIL

EMULATION, REWARD AND DISCIPLINE COUNCIL

1. Mr. Le Minh Quoc - Board Chairman, Independent Board Member - Chairman. 2. Mr. Le Van Quyet - Board Member cum Chief Executive Officer – Member. 3. Mr. Yasuhiro Saitoh - Board Member - Member. Secretary: Head Office Credit Center.

1. Mr. Le Minh Quoc - Board Chairman, Independent Board Member - Chairman. 2. Mr. Le Van Quyet - Board Member cum Chief Executive Officer – Standing Vice Chairman. 3. Mr. Tran Le Quyet - Chief Supervisor - Member. 4. Mr. Dao Hong Chau - Vice President cum Party Secretary - Member. 5. Mrs. Dinh Thi Thu Thao - Vice President cum Labor Union Chairman -Member. 6. Mrs. Van Thai Bao Nhi - Vice President in charge of Operational Supervision Division - Member. 7. Mr. Nguyen Binh Qui - Chief of the Board of Internal Auditors - Member. 8. Mr. Nguyen Ngoc Ha - Chief Accountant - Member. 9. Mr. Le Huynh Hoa - Human Resources Division Head - Member. 10. Mrs. Tran Thi Kim Mai - Acting Chief of the Board of Directors’ Office – Member cum Secretary.

In 2016, Central Credit Council held 54 meeting sessions and handles 205 credit files. FINANCIAL INVESTMENT COUNCIL

1. Mr. Yasuhiro Saitoh - Board Member - Chairman. 2. Mr. Le Minh Quoc - Board Chairman, Independent Board Member - Member. 3. Mr. Le Van Quyet - Board Member cum Chief Executive Officer – Member. 4. Mr. Nguyen Quang Thong – Board Member - Member. Secretary: Operational Supervision Division, Directors of Financial Investment, General Accounting Departments. In 2016, Financial Investment Council held 03 meeting sessions: »» Discussion on financial investment regulations, »» Divestment plan. »» Progress of handling some bonds and plan of government bond trading, and assignment of duties to relevant units. III. RISK HANDLING AND OVERDUE DEBT PREVENTION COUNCIL

1. Mr. Le Minh Quoc - Board Chairman, Independent Board Member - Chairman. 2. Mr. Le Van Quyet - Board Member cum Chief Executive Officer – Member. 3. Mr. Yasuhiro Saitoh - Board Member - Member. 4. Mr. Naoki Nishizawa - Board Member - Member. 5. Mr. Dang Anh Mai - Board Member - Member. Assistant: - Mrs. Van Thai Bao Nhi – Vice President. - Mr. Nguyen Ho Hoang Vu – Vice President cum Chief Financial Officer. In 2016, Risk Handling and Overdue Debt Prevention Council held 36 meeting sessions and collected opinions in writing for 03 times, and handled 284 files.

82

ANNUAL REPORT 2016 www.eximbank.com.vn

In 2016, Emulation, Reward and Discipline Council held 01 meeting session to handle the employees in breach of the bank’s internal regulations. PERSONNEL COMMITTEE

1. Mr. Le Minh Quoc - Board Chairman, Independent Board Member - Chairman. 2. Mr. Le Van Quyet - Board Member cum Chief Executive Officer – Member. 3. Mr. Ngo Thanh Tung - Board Member - Member. 4. Mr. Nguyen Quang Thong - Board Member - Member. 5. Mr. Naoki Nishizawa - Board Member - Member. 6. Mr. Dang Anh Mai - Board Member - Member. In 2016, Personnel Committee held 03 meeting sessions to discuss on the personnel of branches, 2017 personnel plan, orientations for development and implementation of staff performance indicators at the Head Office, branches and transaction offices.


RISK MANAGEMENT COMMITTEE

1. Mr. Naoki Nishizawa - Board Member - Chairman. 2. Mr. Dang Anh Mai - Board Member - Member. 3. Mr. Hoang Tuan Khai - Board Member - Member. 4. Mr. Nguyen Quang Thong - Board Member - Member. 5. Mr. Nguyen Binh Qui - Chief of the Board of Internal Auditors - Member. Secretary: Mrs. Nguyen Thi Dieu Director of Market Risk Management Department. In 2016, Risk Management Committee held 09 meeting sessions and proposed to the Board of Directors a number of issues as follows: The performance of customer groups, credit granting authority, credit activities of branches, authority and quality of credit granting of the Regional Offices, stipulations on unsecured lending, situation of credit granting to certain customers, risk management measures, remedy situation as per Inspection Conclusion, credit approval authority of Regional Directors, assessment on safety and security of information technology system. OPERATION NETWORK PLANNING & DEVELOPMENT COMMITTEE

1. Mr. Nguyen Quang Thong - Board Member – Vice Chairman. 2. Mr. Dang Anh Mai - Board Member – Vice Chairman. 3. Mr. Hoang Tuan Khai - Board Member – Vice Chairman. In 2016, Operation Network Planning and Development Committee held 09 meeting sessions on orientations of repair and renovation as well as construction of some places for making them as Transaction Offices, Branches, Data Center Project. ALLIANCE COMMITTEE

1. Mr. Le Minh Quoc - Board Chairman, Independent Board Member. 2. Mr. Le Van Quyet - Board Member cum Chief Executive Officer 3. 01 member of the Board of Directors or the Management as designated by the Board Chairman. In 2016, Alliance Committee held regular meetings to instruct Alliance Department and operational divisions to promote business association and cooperation programs between Sumitomo Mitsui Banking Corporation (“SMBC”) and Eximbank. With its commitment of longterm investment in Vietnam, in 2016, SMBC has always been accompanying and assisting Eximbank in funding and training, helping to enhance risk management and corporate governance competences.

In order to promote advantages of each party, SMCB and Eximbank has established Vietnamese – Japanese business matching regime, referred partners and supplied financial services to customers of both parties. In addition, SMBC also seconded and assigned many officers to work at Eximbank to together with Eximbank develop information technology infrastructure, research for product innovation, help establish and implement Eximbank Restructuring and Strategy scheme for the period 2016-2020. EXIMBANK RESTRUCTURING & STRATEGY STEERING COMMITTEE

1. Mr. Le Minh Quoc - Board Chairman, Independent Board Member - Chairman. 2. Mr. Le Van Quyet - Board Member cum Chief Executive Officer – Member. 3. Mr. Hoang Tuan Khai - Board Member - Member. 4. Mr. Dang Anh Mai - Board Member - Member. 5. Mr. Yasuhiro Saitoh - Board Member - Member. Secretary: Head of Project Management Board or member of the Project Management Office as designated by the Head of Project Management Board. In 2016, Eximbank Restructuring and Strategy Steering Committee was established and held 05 meeting sessions to discuss on the functions, duties, regulation on operations of the Committee, duties assignment to the units, directions of Eximbank restructuring and strategy, and submitted to the Board of Directors for approval on the vision, missions and core values of Eximbank. KOREBANK REPLACEMENT PROJECT STEERING COMMITTEE

1. Mr. Le Minh Quoc - Board Chairman, Independent Board Member – Committee Chief. 2. Mr. Le Van Quyet - Board Member cum Chief Executive Officer – Committee Vice Chief. 3. Mr. Tran Tan Loc - Standing Executive Vice President – Member. 4. Mr. Mitsuaki Shiogo - Senior Information Technology Consultant – Project Manager. Secretary: Mr. Nguyen Tan Bao – Director of IT Service Development Center. In 2016, Korebank Replacement Project Steering Committee held 05 meeting sessions regarding project progress, consulting entity hiring, project expenses, etc.

CORPORATE GOVERNANCE

83


INTRODUCTION ABOUT

THE BOARD OF SUPERVISORS

Mrs. PHAM THI MAI PHUONG

Mr. TRAN LE QUYET

Mrs. Pham Thi Mai Phuong was born in 1982 in Nha Trang. She graduated with Bachelor’s Degree in Accounting, Bachelor’s Degree in Foreign Trade Economics, Chief Accountant Training Certificate, Chief Customer Officer Certificate, and Chief Financial Officer Certificate. She used to be General Accounting Officer of Pacific Seafood Export Import Company; General Accounting senior officer, Corebanking senior officer, Customer Service Center Director, Ben Thanh Transaction Office Manager, Senior Officer of the Board of Management’s Office, Customer Service Center Director – Special envoy of the Board of Directors of Nam A Commercial Joint Stock Bank.

Mr. Tran Le Quyet was born in 1981 in Quang Binh. He holds Bachelor’s degree (with major in AccountingAuditing). In April 2014, he was elected as member of the Board of Supervisors of Eximbank of the tenure 2010 – 2015. He has much experience in the banking industry, especially in the fields of credits, risk management and corporate governance. He has more than 10 years of experience in credits and used to hold the positions as Deputy Manager of Credit Risk Management Section of the Head Office located in Ho Chi Minh City of JSC Bank for Foreign Trade of Vietnam, Deputy Director of JSC Bank for Foreign Trade of Vietnam – Tien Giang Branch. He used to be Vice Chief of the Board of Supervisors of Eximbank of the Vth tenure (20102015), then he was re-elected and became the Chief Supervisor of the VIth tenure (2015-2020).

Member

84

ANNUAL REPORT 2016 www.eximbank.com.vn

Chief Supervisor


Mr. DANG HUU TIEN

Mr. TRINH BAO QUOC

Mr. TRAN NGOC DUNG

Mr. Dang Huu Tien was born in 1962 in Hanoi. He graduated with Master of Business Administration (MBA) from Columbia University, Master of Economics from Vietnam University of Commerce, Bachelor of National Economic Planning, Bachelor of Economics in Foreign Trade. He used to be Chief of the Board of Supervisors of Eximbank in the Vth tenure (2010-2015). He has much experience in the fields of monetary, credits, accounting and auditing, inspection and control. From 1998 to 2010, he is a full-time member of the Board of Supervisors of Eximbank, then Chief Supervisor of the tenure 2010-2015. He is currently member of the Board of Supervisors of Eximbank of the tenure 2015-2020.

Mr. Trinh Bao Quoc was born in 1971 in Vietnam. He graduated with Bachelor of Biology and History in USA, Master of Business Administration in USA. He used to be project coordinator – US Vietnam Trade Council; Lawyer Assistant and Interpreter – Baker & McKenzie International Law Firm; Financial & Investment Analysis Department Director – Phu My Hung of Central & Development Group (employer of Tan Thuan Export Processing Zone, Hiep Phuoc Power Plant, Phu My Hung Urban Area); Director – QML Corporate Group; Director cum Chief Representative in Vietnam of Avenue Capital Group; Co-founder & investor – Summa Training and Consultancy Joint Stock Company; General Director – Son Kim Real Estate Joint Stock Company.

Mr. Tran Ngoc Dung was born in 1966 in Sai Gon. He is Bachelor of Credit and Finance, Bachelor of Business Administration, and Bachelor of Laws. He used to be Deputy Chief of military base of Wards 8 and 13 of Phu Nhuan District; Sales Officer of HCMC Food Company; Accountant and then Supervisor of Eximbank Cho Lon Branch; Sales Officer of Expo Paint; Accountant and then Chief Accountant of Thien Loc Co., Ltd.; Senior Officer of Investment and Planning Department, Deputy Director of Internal Inspection and Control Department, Nha Trang Branch Director, Head Office Credit Department Director, Nga Bay Branch Director, Risk Management Division Head, Member of the Board of Supervisors of Nam A Bank; Assistant to the Board Chairman of Nam A Commercial Joint Stock Bank, and Eximbank.

Member

Member

Member

CORPORATE GOVERNANCE

85


OPERATIONS OF

THE BOARD OF SUPERVISORS

CHANGE IN MEMBERS OF THE BOARD OF SUPERVISORS In 2016, there was no change in the members of the Board of Supervisors.

SHAREHOLDING RATIO OF THE MEMBERS OF THE BOARD OF SUPERVISORS

86

Name of entity shareholder for which he/she represents

No. of shares of the entity Entityâ&#x20AC;&#x2122;s for which shareholding he/she ratio (%) represents at 30/12/2016

0.00

JSC Bank for Foreign Trade of Vietnam

101,245,131

8.19

Full-time member

0.01

-

-

-

Mr. Tran Ngoc Dung

Full-time member

0.00

-

-

-

Mrs. Pham Thi Mai Phuong

Full-time member

0.00

-

-

-

Mr. Trinh Bao Quoc

Part-time member

0.00

-

-

-

Full name

Current position at the credit institution

Mr. Tran Le Quyet

Chief Supervisor (full-time)

Mr. Dang Huu Tien

ANNUAL REPORT 2016 www.eximbank.com.vn

Personal shareholding ratio


OPERATIONS OF THE BOARD OF SUPERVISORS

THE BOARD OF SUPERVISORS IS THE OPERATION SUPERVISION BODY ELECTED BY THE GENERAL MEETING OF SHAREHOLDERS OF EXIMBANK TO ACCURATELY ASSESS ITS BUSINESS PERFORMANCE AND FINANCIAL CONDITION OF THE BANK, CONDUCT THE INTERNAL AUDIT, CONTROL OF THE COMPLIANCE WITH LAW STIPULATIONS, INTERNAL REGULATIONS, THE BANK’S CHARTER AND RESOLUTIONS AND DECISIONS OF THE GENERAL MEETING OF SHAREHOLDERS AND THE BOARD OF DIRECTORS.

T

o supervise compliance with regulations in banking governance and running by the Board of Directors and the Management of Eximbank, in 2016, the Chief and members of the Board of Supervisors attended 25 meetings of the Board of Directors, 12 regular and consolidated meetings among the Board of Directors – the Board of Supervisors – the Management. At such meetings, the Board of Supervisors engaged in discussions, made alerts/recommendations and contributed opinions in the issues of each meeting session, especially the ones relating to the performance of the General Meeting of Shareholders’ Resolutions and the organization of 2016 General Meeting of Shareholders. Besides, the Board of Supervisors also showed interest in and responded to all inquiries and requests of shareholders and groups of shareholders in relation to Eximbank’s operations and issues related to 2016’s General Meeting of Shareholders, as well as gave recommendations to the Board of Directors to perform some lawful requests of shareholders and groups of shareholders.

The Board of Supervisors held 59 meeting sessions within the Board of Supervisors to discuss and concur on the contents of the documents sent to the State Bank of Vietnam, Shareholders, Board of Directors, the Management, so as to perform its functions and duties. In addition, the Board of Supervisors frequently met with the Board of Internal Auditors to strengthen the direction on internal audit in the whole system, monitoring and pushing over the Head Office, Branches, Transaction Offices in making remedies for the recommendations of the Banking Inspection and Supervision Agency of the State Bank of Vietnam, the Board of Supervisors and the Board of Internal Auditors. The remedy results of Units also played a part in the risk rating over the Units. In 2016, the Board of Internal Auditors conducted in total 33 audit tranches, including: Auditing 18 Units at Head Office (including Regional Offices), auditing 15 Units as Branches and Transaction Offices. 06 audited units of which were included in the Q4/2016 audit plan and completed in January and February 2017. For the audit teams, the Board of Supervisors all assigned its members to be in charge of the

audit teams for close supervision and direction throughout the audit process and attended the meetings to ratify the audit results to ensure the audit quality as well as to evaluate in an objective and practical manner the performance of the audited Units. The auditing results made 4,315 recommendations to the Head Office and the audited units to remedy and correct errors in order to mitigate risks in operations; of which 703 recommendations related to procedures and regulations were made to the Head Office to contribute to prevent risks and ensure tightness in operations. For those units committing serious violations and having risk of losses, the Board of Supervisors sent documents to the Board of Directors, the Management to recommend reviewing and handling, adjusting personnel to limit the risks that may arise as well as to rectify the business operations of the Units. Moreover, in order to standardize the internal audit and set up the basis for preparing the annual internal audit plan based on the risk level of each Unit, the Board of Supervisors of the VIth tenure also issued the “Internal Audit Handbook” and the “Regulation on risk rating for Branches and Transaction Offices of Eximbank”. Through the application of internal regulations, internal training, the internal inspection and control quality at Eximbank has been increasingly strengthened and enhanced, and the internal audit content is systematic, focusing more on controlling operational procedures and inspection and control system to detect, prevent and limit risks in operations, ensure compliance with the regulations of state regulatory agencies and Eximbank.

CORPORATE GOVERNANCE

87


TRANSACTIONS, REMUNERATIONS, AND INTERESTS OF

THE BOARD OF DIRECTORS, THE BOARD OF SUPERVISORS AND THE MANAGEMENT

SALARIES, BONUSES, REMUNERATIONS AND INTERESTS Please refer to 2016 Consolidated Financial Statements, Note No. 36 “Significant transactions with related parties”

IMPLEMENTATION OF REGULATIONS ON BANKING GOVERNANCE Pursuant to prevailing law regulations (Law on Enterprises, Law on Credit Institutions, Circular No. 121/2012/TT-BTC and other relevant documents), Eximbank has issued and strictly and fully complied with the regulations on corporate governance. Based on valid issued legal documents, Eximbank will conduct the review and report to the General Meeting of Shareholders for consideration and determination on amending the regulations on banking governance as appropriate.

SHARE TRADING BY INTERNAL SHAREHOLDERS In 2016, Eximbank did not receive any notice or report on transactions of members of the Board of Directors, the Board of Supervisors, the Management and their related persons.

AGREEMENTS OR TRANSACTIONS WITH INTERNAL SHAREHOLDERS In 2016, Eximbank had agreements or transactions with internal shareholders. The holder’s identification No., issue date, issue place *

Headquarter address/ Contact address

CA4940 issued on 24/01/2011 in Japan.

1-2 Marunouchi 1-chome, Chiyoda-ku, Tokyo 1000005 Japan

Bao Long Insurance Corporation

Mr. Nguyen Quang Thong is the Vice Chairman of the Board of Directors of Bao Long Insurance Corporation.

71/GPDC9/KDBH issued by the Ministry of Finance on 28/03/ 2016.

185 Dien Bien Phu, Da Kao Wd., Dist. 1, Ho Chi Minh City.

3

Bao Long Insurance Corporation

Mr. Nguyen Quang Thong is the Vice Chairman of the Board of Directors of Bao Long Insurance Corporation.

71/GPDC9/KDBH issued by the Ministry of Finance on 28/03/ 2016.

185 Dien Bien Phu, Da Kao Wd., Dist. 1, Ho Chi Minh City.

4

Minato Bank

Minato Bank is a related party of SMBC, major shareholder of Eximbank.

No.

1

2

88

Name of the individual/ organization

Related relation with the company

Sumitomo Mitsui Major shareholder Banking Corporation of Eximbank. (SMBC)

ANNUAL REPORT 2016 www.eximbank.com.vn

1-1, Sannomiya-cho 2-chome Chuo-ku Kobe, 651-0193 Japan.


Transacting time with the company

No. of the Resolution/ Decision of approval of the AGM/ Board of Directors (if any, specify issue date)

20/01/2016

Resolution No. 25/2016/EIB/NQ-HDQT dated 20/01/2016 regarding Ratification on the revised content of the Uncommitted LC Refinancing Facility Letter between Eximbank and SMBC Singapore, whereby the uncommitted LC refinancing limit was increased from 40 million USD to 60 million USD.

28/01/2016

Resolution No. 54/2016/EIB/NQ-HDQT dated 28/01/2016 agreeing to ratify the draft Property All Risks Insurance Policy with Bao Long Insurance Corporation.

28/01/2016

Resolution No. 55/2016/EIB/NQ-HDQT dated 28/01/2016 regarding approval on the expenses and insurance service provider for the Data Center work of Eximbank to be Bao Long Insurance Corporation.

29/03/2016

Resolution No. 99/2016/EIB/NQ-HDQT dated 29/03/2016 regarding ratification on the transaction between Eximbank and Minato Bank, whereby Minato Bank shall issue letter of guarantee by Swift to guarantee for the loan of Hyogo Shoes Co., Ltd. at Eximbank HCMC Branch.

Quantity, holding ratio of shares after Note transaction

185,329,207

Mr. Nguyen Quang Thong is a member of the Board () of Directors of Eximbank of tenure VI (2015-2020). Mr. Nguyen Quang Thong is a member of the Board of Directors of Eximbank of () tenure VI (2015-2020).

CORPORATE GOVERNANCE

89


MAIN B U S I N E S S INDICATORS ALL GROWING COMPARED TO THE PREVIOUS YEAR IN WHICH TOTAL ASSETS UP 3.2%, FUND RAISING FROM ECONOMIC ENTITIES AND RESIDENTS UP 4%, LOAN BALANCE UP 3%; “NEW EXIMBANK” PROJECT OFFICIALLY LAUNCHED AND COMMUNICATED ACROSS THE SYSTEM.

FINANCIAL STATEMENTS

90

ANNUAL REPORT 2016 www.eximbank.com.vn

91 92 93 94 97 98 100

Corporate information. Statement of the Board of Management. Independent auditor’s report. Consolidated balance sheet. Consolidated statement of income. Consolidated statement of cash flows. Notes to the consolidated financial statements.


CORPORATE INFORMATION Establishment and Operation Licence No.:

11/NH-GP

6 April 1992

The Establishment and Operation Licence was issued by the State Bank of Vietnam and is valid for 50 years from the licence date. Business Registration Certificate No.:

0301179079 23 July 1992. The Business Registration Certificate has been amended several times, the most recent of which is by Business Registration Certificate No. 0301179079 dated 19 April 2016. The Business Registration Certificate and its updates were issued by the Department of Planning and Investment of Ho Chi Minh City.

BOARD OF DIRECTORS

Mr. Le Minh Quoc Mr. Le Van Quyet Mr. Naoki Nishizawa Mr. Nguyen Quang Thong Mr. Hoang Tuan Khai Mr. Dang Anh Mai Mr. Ngo Thanh Tung Mr. Cao Xuan Ninh Mr. Yasuhiro Saitoh

Chairman Member cum Chief Executive Officer Member Member Member Member Member Member Member

BOARD OF SUPERVISORS

Mr. Tran Le Quyet Mr. Trinh Bao Quoc Mr. Dang Huu Tien Ms. Pham Thi Mai Phuong Mr. Tran Ngoc Dung

Chief Supervisor Member Member Member Member

BOARD OF MANAGEMENT

Mr. Le Van Quyet

Chief Executive Officer (from 5 April 2016) Acting Chief Executive Officer (from 10 December 2015 until 4 April 2016) Standing Executive Vice President (until 9 December 2015 and from 5 April 2016) Vice President Vice President Vice President Vice President Vice President Vice President Vice President cum Chief Financial Officer Vice President Vice President Vice President Vice President Vice President Vice President (from 13 October 2016) Vice President (until 20 January 2016)

Mr. Tran Tan Loc Mr. Tran Tan Loc Mr. Nguyen Quoc Huong Mr. Dao Hong Chau Ms. Dinh Thi Thu Thao Ms. Van Thai Bao Nhi Mr. Le Anh Tu Ms. Bui Do Bich Van Mr. Nguyen Ho Hoang Vu Mr. Le Hai Lam Mr. Nguyen Quang Triet Mr. Nguyen Van Hao Mr. Masashi Mochizuki Mr. Bui Van Dao Mr. Yutaka Moriwaki Mr. Cao Xuan Lanh â&#x20AC;&#x192; Registered Office Auditor

8th Floor, Office No. L8-01-11+16 Vincom Center No. 72 Le Thanh Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam. KPMG Limited, Vietnam

CONSOLIDATED FINANCIAL STATEMENTS

91


STATEMENT OF

THE BOARD OF MANAGEMENT

The Board of Management of Vietnam Export Import Commercial Joint Stock Bank (“the Bank”) presents this statement and the accompanying consolidated financial statements of the Bank and its subsidiary (collectively referred to as “the Group”) for the year ended 31 December 2016. The Bank’s Board of Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for Credit Institutions stipulated by the State Bank of Vietnam and the relevant statutory requirements applicable to financial reporting. In the opinion of the Bank’s Board of Management: (a) (a) the consolidated financial statements set out on pages 94 to 167 give a true and fair view of the consolidated financial position of the Group as at 31 December 2016 and of the consolidated results of operations and the consolidated cash flows of the Group for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for Credit Institutions stipulated by the State Bank of Vietnam and the relevant statutory requirements applicable to financial reporting; and (b) at the date of this statement, there are no reasons for the Bank’s Board of Management to believe that the Group will not be able to pay its debts as and when they fall due. The Board of Management has, on the date of this statement, authorised the accompanying consolidated financial statements for issue. On behalf of the Board of Management

Le Van Quyet

Chief Executive Officer Ho Chi Minh City, 28 March 2017

92

ANNUAL REPORT 2016 www.eximbank.com.vn


INDEPENDENT AUDITOR’S REPORT

To the Shareholders Vietnam Export Import Commercial Joint Stock Bank We have audited the accompanying consolidated financial statements of Vietnam Export Import Commercial Joint Stock Bank (“the Bank”) and its subsidiary (collectively referred to as “the Group”), which comprise the consolidated balance sheet as at 31 December 2016, the consolidated statements of income and cash flows for the year then ended and the explanatory notes thereto which were authorised for issue by the Bank’s Board of Management on 28 March 2017, as set out on pages 94 to 167.

The Board of Management’s Responsibility The Bank’s Board of Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for Credit Institutions stipulated by the State Bank of Vietnam and the relevant statutory requirements applicable to financial reporting, and for such internal control as the Board of Management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Bank’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Bank’s Board of Management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Auditor’s Opinion In our opinion, the consolidated financial statements give a true and fair view, in all material respects, of the consolidated financial position of Vietnam Export Import Commercial Joint Stock Bank and its subsidiary as at 31 December 2016 and of their consolidated results of operations and their consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for Credit Institutions stipulated by the State Bank of Vietnam and the relevant statutory requirements applicable to financial reporting. KPMG Limited’s Branch in Ho Chi Minh City, Vietnam Audit Report No.: 16-01-143/2

__________________________________ __________________________________

Truong Vinh Phuc Pham Huy Cuong Practicing Auditor Registration Certificate No. 1901-2013-007-1 Deputy General Director

Practicing Auditor Registration Certificate No. 2675-2014-007-1

Ho Chi Minh City, 28 March 2017

CONSOLIDATED FINANCIAL STATEMENTS

93


CONSOLIDATED BALANCE SHEET as at 31 December 2016

Form B02/TCTD-HN

Unit: VND million 31/12/2016

31/12/2015

A

ASSETS

I

Cash on hand, gold

4

2,020,060

2,040,749

II

Balances with the State Bank of Vietnam

5

3,765,279

2,716,264

III

Deposits with and loans to other credit institutions

6

8,281,291

7,833,274

1

Deposits with other credit institutions

8,296,841

7,833,274

2

Loans to other credit institutions

95,000

95,000

3

Allowance for deposits and loans to other credit institutions

(110,550)

(95,000)

V

Derivatives and other financial assets

9,841

30,797

VI

Loans and advances to customers

85,824,814

83,889,887

1

Loans and advances to customers

8

86,891,327

84,759,792

2

Allowance for loans and advances to customers

9

(1,066,513)

(869,905)

10

20,195,957

19,118,084

VIII Investment securities

7

1

Available-for-sale securities

9,388,719

3,957,184

2

Held-to-maturity securities

12,219,500

16,178,452

3

Allowance for investment securities

(1,412,262)

(1,017,552)

IX

Capital contribution, long-term investments

1,856,808

1,869,834

4

Other long-term investments

1,937,865

2,031,645

5

Allowance for diminution in the value of long-term investments

(81,057)

(161,811)

X

Fixed assets

3,367,929

4,740,627

1

Tangible fixed assets

854,498

1,105,024

a

Cost

1,935,088

2,033,247

b

Accumulated depreciation

(1,080,590)

(928,223)

3

Intangible fixed assets

2,513,431

3,635,603

a

Cost

2,621,600

3,730,270

b

Accumulated amortisation

(108,169)

(94,667)

3,479,529

2,610,159

1,271,087

1,520,156

840,414

992,436

1,374,053

103,567

(6,025)

(6,000)

128,801,508

124,849,675

13

14

1

Receivables

2

Accrued interest and fees receivable

4

Other assets

5

Allowance for losses on other assets

TOTAL ASSETS

ANNUAL REPORT 2016 www.eximbank.com.vn

11

12

XII Other assets

94

Note

The accompanying notes are an integral part of these consolidated financial statements


Unit: VND million

B

Note

31/12/2016

31/12/2015

LIABILITIES AND EQUITY LIABILITIES

I

Borrowings from the State Bank of Vietnam

15

1,111,672

544,945

II

Deposits and borrowings from other credit institutions

16

6,484,335

7,933,317

1

Deposits from other credit institutions

5,122,335

7,103,777

2

Borrowings from other credit institutions

1,362,000

829,540

III

Deposits from customers

17

102,351,494

98,430,542

VI

Valuable papers issued

18

3,000,000

3,000,392

VII Other liabilities

2,405,588

1,795,758

1

Accrued interest and fees payable

2,000,279

1,510,364

2

Other liabilities

405,309

285,394

115,353,089

111,704,954

13,448,419

13,144,721

19

TOTAL LIABILITIES EQUITY VIII Equity

21

1

Capital

12,448,674

12,448,674

a

Charter capital

12,355,229

12,355,229

b

Capital for construction, purchases of fixed assets

15,396

15,396

c

Share premium

156,322

156,322

d

Treasury shares

(78,273)

(78,273)

2

Reserves

1,462,854

1,513,516

5

Accumulated losses

(463,109)

(817,469)

13,448,419

13,144,721

128,801,508

124,849,675

TOTAL EQUITY TOTAL LIABILITIES AND EQUITY

The accompanying notes are an integral part of these consolidated financial statements

CONSOLIDATED FINANCIAL STATEMENTS

95


CONSOLIDATED BALANCE SHEET (continued) as at 31 December 2016

Form B02/TCTD-HN

Unit: VND million Note

31/12/2016

31/12/2015

34

35,508,306

39,475,997

37,181

36,219

30,121,833

32,350,457

2,265,219

153,212

648,175

358,369

OFF-BALANCE SHEET ITEMS I

CONTINGENT LIABILITIES

1

Lending guarantees

2

Foreign exchange commitments In which:

*

Purchase commitments of foreign currencies

*

Sale commitments of foreign currencies

*

Commitments on currency swap transactions

27,208,439

31,838,876

4

Letters of credit

2,447,872

3,856,992

5

Other guarantees

2,735,979

3,068,929

6

Other commitments

165,441

163,400

Prepared by

Reviewed by

Nguyen Minh Thanh

Nguyen Ngoc Ha

General Accountant

Chief Accountant

Legal Representative

Le Van Quyet

Chief Executive Officer

28 March 2017

96

ANNUAL REPORT 2016 www.eximbank.com.vn

The accompanying notes are an integral part of these consolidated financial statements


CONSOLIDATED STATEMENT OF INCOME for the year ended 31 December 2016

Form B03/TCTD-HN

Unit: VND million Note

2015

1

Interest and similar income

22

8,310,573

8,601,184

2

Interest and similar expenses

22

(5,228,494)

(5,203,494)

I

Net interest income

22

3,082,079

3,397,690

3

Fees and commission income

23

610,947

567,691

4

Fees and commission expenses

23

(311,095)

(275,650)

II

Net fees and commission income

23

299,852

292,041

III

Net gain from trading of foreign currencies

24

259,839

62,715

V

Net gain/(loss) from sales of investment securities

24,725

(34,163)

5

Other income

25

141,892

381,532

6

Other expenses

25

(74,022)

(296,390)

VI

Net other income

25

67,870

85,142

VII Gain/(loss) from capital contribution, share purchase

26

545

(4,062)

VIII Operating expenses

27

(2,255,214)

(2,304,554)

1,479,696

1,494,809

28

(1,089,066)

(1,433,987)

390,630

60,822

IX

Operating profit before allowance expenses for credit losses

X

Allowance expenses for credit losses

XI

Profit before tax

7

Corporate income tax expense â&#x20AC;&#x201C; current

29

(81,698)

(20,828)

8

Corporate income tax expense â&#x20AC;&#x201C; deferred

29

-

-

29

(81,698)

(20,828)

308,932

39,994

251

33

XII Total corporate income tax expense XIII Profit after tax XV Basic earnings per share (VND/share)

2016

Prepared by

Reviewed by

Nguyen Minh Thanh

Nguyen Ngoc Ha

General Accountant

30

Chief Accountant

Legal Representative

Le Van Quyet

Chief Executive Officer

28 March 2017

The accompanying notes are an integral part of these consolidated financial statements

CONSOLIDATED FINANCIAL STATEMENTS

97


CONSOLIDATED STATEMENT OF CASH FLOWS for the year ended 31 December 2016 (Direct method)

Form B04/TCTD-HN

Unit: VND million 2016

2015

01 Interest and similar income received

8,468,208

8,978,479

02 Interest and similar expenses paid

(4,738,579)

(4,957,387)

299,852

293,751

284,943

59,772

220

(38,637)

57,777

66,356

(2,042,233)

(2,072,604)

(2,767)

(21,441)

2,327,421

2,308,289

-

4,467,198

(673,493)

894,887

20,956

(17,362)

(3,065,965)

485,703

(347,237)

(648,478)

267,476

286,477

566,727

538,332

(1,448,982)

(33,110,023)

3,920,952

(2,941,344)

(392)

(7,986)

21 Increase/(decrease) in other operating liabilities

35,375

(54,434)

22 Utilisations of reserves

(5,225)

-

1,597,613

(27,798,741)

CASH FLOWS FROM OPERATING ACTIVITIES

03 Net fees and commission income received 04

Net receipts from foreign currencies, gold and securities trading activities

05 Other income received/(expenses paid) 06 Collection of bad debts previously written-off 07 Salaries and operating expenses paid 08 Corporate income tax paid Cash flows from operating activities before changes in operating assets and liabilities Changes in operating assets

09 Decrease in deposits with and loans to other credit institutions 10 (Increase)/decrease in investment securities 11 Decrease/(increase) in derivatives and other financial assets 12 (Increase)/decrease in loans and advances to customers 13 Utilisation of allowances for credit losses 14 Decrease in other operating assets Changes in operating liabilities

15 Increase in borrowings from the State Bank of Vietnam 16

Decrease in deposits and borrowings from other credit institutions

17 Increase/(decrease) in deposits from customers 18 Decrease in valuable papers issued

I

98

NET CASH FLOWS FROM OPERATING ACTIVITIES

ANNUAL REPORT 2016 www.eximbank.com.vn

The accompanying notes are an integral part of these consolidated financial statements


Unit: VND million 2016

2015

01 Payments for purchases of fixed assets

(200,246)

(296,033)

02 Proceeds from disposals of fixed assets

81,027

304,801

08 Proceeds from investments in other entities

13,226

-

345

2,308

(105,648)

11,076

CASH FLOWS FROM INVESTING ACTIVITIES

09

Receipts of dividends and distributions from capital contribution, share purchases

II

NET CASH FLOWS FROM INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES

04 Dividends paid

(72)

(89)

III

NET CASH FLOWS FROM FINANCING ACTIVITIES

(72)

(89)

IV

NET CASH FLOWS DURING THE YEAR

1,491,893

(27,787,754)

V

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR

12,574,737

40,362,491

14,066,630

12,574,737

VII CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR (NOTE 31)

Unit: VND million

SIGNIFICANT NON-CASH TRANSACTIONS FROM INVESTING ACTIVITES

Cost of construction in progress acquired in the form of netting-off with loans and advances to customers. Reclassify foreclosed assets from fixed assets to other assets.

Prepared by

Reviewed by

Nguyen Minh Thanh

Nguyen Ngoc Ha

General Accountant

Chief Accountant

2016

2015

-

403,898

1,319,329

-

Legal Representative

Le Van Quyet

Chief Executive Officer

28 March 2017

The accompanying notes are an integral part of these consolidated financial statements

CONSOLIDATED FINANCIAL STATEMENTS

99


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31 December 2016

1.

Reporting entity

(a)

Establishment and operations

Form B05/TCTD-HN

Vietnam Export Import Commercial Joint Stock Bank (“the Bank”) is a commercial joint stock bank incorporated in the Socialist Republic of Vietnam. The Bank was established under Establishment and Operation Licence No. 11/NH-GP issued by the State Bank of Vietnam (“SBV”) on 6 April 1992 and Business Registration Certificate No. 0301179079 issued by the Department of Planning and Investment of Ho Chi Minh City on 23 July 1992. The Establishment and Operation Licence is valid for 50 years from the from the licence date. The Bank’s principal activities are to provide banking services including mobilising and receiving short, medium and long-term deposits from various organisations and individuals; providing short, medium and long-term loans to various organisations and individuals based on the Bank’s nature and capacity of capital resources; conducting foreign exchange transactions; providing international trade finance services; discounting commercial papers, bonds and other valuable papers; providing settlement services and other banking services as allowed by the State Bank of Vietnam. The consolidated financial statements for the year ended 31 December 2016 comprise the financial statements of the Bank and it subsidiary (collectively referred to as “the Group”). (b)

Charter capital

As at 31 December 2016, the Bank’s charter capital is VND12,355,229 million. The Bank has issued 1,235,522,904 ordinary shares, with a par value of VND10,000 per share. The Bank’s shares have been listed on the Ho Chi Minh City Stock Exchange. (c)

Location and operation network

The Bank’s Head Office is located at the 8th Floor, Office No. L8-01-11+16 Vincom Center, No. 72 Le Thanh Ton Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam. As at 31 December 2016 and 2015, the Bank has one (1) head office, forty four (44) branches, one hundred and sixty three (163) transaction offices, one (1) savings fund nation-wide and one (1) representative office in Hanoi. (d)

Group structure

As at 31 December 2016, the Bank had one subsidiary as follows:

Entity name

Eximbank Asset Management Company

Operation Licence

Nature of business

No. 031028097 dated 24 August 2010

Assets Management

Percentage of equity owned and voting rights 31/12/2016

31/12/2015

100%

100%

The subsidiary was established in Vietnam. (e)

Number of employees

As at 31 December 2016, the Group has 5,916 employees (31/12/2015: 6.239 employees).

100

ANNUAL REPORT 2016 www.eximbank.com.vn


2.

Basis of preparation

(a)

Statement of compliance

The consolidated financial statements have been prepared in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for Credit Institutions stipulated by the SBV and the relevant statutory requirements applicable to financial reporting. These standards and statutory requirements may differ in some material respects from International Financial Reporting Standards and the generally accepted accounting principles and standards in other countries. Accordingly, the accompanying consolidated financial statements are not intended to present the consolidated financial position and consolidated results of operations and consolidated cash flows in accordance with generally accepted accounting principles and practices in countries or jurisdictions other than Vietnam. Furthermore, the utilisation is not designed for those who are not informed about Vietnam’s accounting principles, procedures and practices applicable to credit institutions. (b)

Basis of measurement The consolidated financial statements, except for the consolidated statement of cash flows, are prepared on the accrual basis using the historical cost concept. The consolidated statement of cash flows is prepared using the direct method.

(c)

Annual accounting period

The annual accounting period of the Group is from 1 January to 31 December. (d)

Accounting and presenation currency

The Group’s accounting currency is Vietnam Dong (“VND”), which is also the currency used for financial statement presentation purpose, rounded to the nearest million (“VND million”). (e)

Form of accounting records applied

The Group uses accounting software to record its transactions.

3.

Summary of significant accounting policies The following significant accounting policies have been adopted by the Group in the preparation of these consolidated financial statements.

(a)

Basis of consolidation

(i) Subsidiaries

Subsidiaries are entities controlled by the Group. The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Where the accounting policies of subsidiaries are different from those adopted by the Bank, adjustments have been made where necessary to ensure the consistency of accounting policies adopted for consolidated financial statements. (ii)

Transactions eliminated on consolidation

Intra-group balances and transactions and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.

CONSOLIDATED FINANCIAL STATEMENTS

101


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

3.

Summary of significant accounting policies (cont.)

(b)

Foreign currency transactions

Form B05/TCTD-HN

The Group’s transactions are accounted in original currencies. Monetary assets and liabilities denominated in currencies other than VND are translated into VND at rates of exchange ruling at the reporting date (refer to Note 37(c)(ii) for the foreign exchange rates applied as at 31 December 2016). Non-monetary assets and liabilities denominated in currencies other than VND are translated into VND at rates of exchange ruling on the transaction dates. The Group’s income and expenses in foreign currencies are translated into VND at rates of exchange ruling on transaction dates. Foreign exchange differences arising from monthly translation of monetary assets and liabilities are recognised in the “Foreign exchange differences” account in Equity and then transferred to the consolidated statement of income at the end of the annual accounting period. (c)

Cash and cash equivalents

Cash and cash equivalents include cash on hand, gold, balances with the State Bank of Vietnam, deposits with and loans to other credit institutions with original term to maturity of not more than three months and securities having maturity dates within three months from the purchase dates. (d)

Deposits with and loans to other credit institutions

Deposits with other credit institutions excluding demand deposits are deposits with other credit institutions with original term to maturity of not more than 3 months. Loans to other credit institutions are loans with original term to maturity of not more than 12 months. Deposits with other credit institutions excluding demand deposits are stated at the amount of outstanding principal less specific allowance for credit losses. Debt classification of deposits with and loans to other credit institutions and allowance thereof is made in accordance with Circular No. 02/2013/TT-NHNN dated 21 January 2013 issued by the SBV (“Circular 02”) and Circular No. 09/2014/TT-NHNN dated 18 March 2014 issued by the SBV (“Circular 09”) amending and supplementing certain articles of Circular 02. Accordingly, the Group made the specific allowance for credit losses on deposits with and loans to other credit institutions in accordance with the accounting policy as described in Note 3(g). In accordance with Circular 02, the Group is not required to make general allowance for deposits with and loans to other credit institutions. (e)

Derivative financial instruments Forward and swap currency contracts

Forward currency contracts and swap currency contracts are recorded at the net contract values in the consolidated financial statements. The differences between the currency amounts which are committed to buy/ sell at contractual exchange rate and the currency amounts translated at the spot exchange rate at the effective date of the forward currency contracts and swap currency contracts are amortised to the consolidated statement of income on a straight-line basis over the terms of these contracts. The positions of forward currency contracts are revalued at the spot exchange rate at each month-end. Unrealised gains/losses are recorded in the “Foreign exchange difference” account in Equity on the consolidated balance sheet at each month-end and then transferred to the consolidated statement of income at the end of the annual accounting period.

102

ANNUAL REPORT 2016 www.eximbank.com.vn


(f)

Loans and advances to customers

Loans and advances to customers are stated at the amount of principal less allowance for credit losses. Allowance for credit losses on loans and advances to customers comprises specific allowance and general allowance. Short-term loans are those with repayment term within one year from the loan disbursement date; medium-term loans are those with repayment term over one year to five years from the loan disbursement date and long-term loans are those with repayment term of more than five years from the loan disbursement date. The Group derecognises loans and advances to customers when the contractual rights to the cash flows from the loans expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the loans are transferred. For the loans sold to Vietnam Asset Management Company (“VAMC”), the Group derecognised from the balance sheet in accordance with the guidance in Official Letter No. 8499/NHNN-TCKT dated 14 November 2013 (“Official Letter 8499”) issued by the SBV and Official Letter No. 925/NHNN-TCKT dated 19 February 2014 (“Official Letter 925”) issued by the SBV. Debt classification and allowance for credit losses for loans and advances to customers are made in accordance with Circular 02 and Circular 09 as described in Note 3(g). (g)

Debt classification, allowance level and calculation method of allowance for credit losses

(i)

Debt classification

Debt classification for deposits with and loans to other credit institutions (except for demand deposits), unlisted corporate bonds, loans and advances to customers (together referred to as “debts”), the debts sold but not yet collected is made in accordance with the quantitative method as stipulated in Article 10 of Circular 02. (ii)

Specific allowance for credit losses

In accordance with the requirements of Circular 02 and Circular 09, the specific allowance for credit losses is calculated based on the allowance rate corresponding with the debt classification of outstanding principals of debts at the last working date of each quarter (except for Quarter 4, specific allowance is calculated based on the allowance rate corresponding with the debt classification of outstanding principals of debts at the last working day of November) less the allowed value of collaterals. As at 31 December 2016, the Group calculated the specific allowance based on the allowance rate corresponding with the debt classification of outstanding principals of debts as at 30 November 2016 (31 December 2015: based on the allowance rate corresponding with the debt classification of outstanding principals of debts as at 30 November 2015).

CONSOLIDATED FINANCIAL STATEMENTS

103


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

Form B05/TCTD-HN

3.

Summary of significant accounting policies (cont.)

(g)

Debt classification, allowance level and calculation method of allowance for credit losses (cont.)

Specific allowance rates applied to each group of debts are as follows: Group

1

Current debts

2

Special mentioned debts

Overdue status

Allowance rate

(a) Current debts being assessed as fully and timely recoverable, both principal and interest; or (b) Debts being overdue for less than 10 days and being assessed as fully recoverable, both overdue principal and interest, and fully and timely recoverable, both remaining principal and interest. (a) Debts being overdue between 10 days and 90 days; or (b) Debts having rescheduled terms of repayment for the first time.

0%

5%

(a) Debts being overdue between 91 days and 180 days; or (b) Debts having extended terms of repayment for the first time; or (c) Debts having exempt or reduced interest because customers are not able to pay the interest according to the credit contract; or

3

Substandard debts

(d) Debts falling in one of the following cases not yet collected within 30 days since the issuance date of recovery decision: *

Debts having violated regualtions specified in Points 1, 3, 4, 5, 6 of Article 126 of Laws on Credit Institutions; or

*

Debts having violated regualtions specified in Points 1, 2, 3, 4 of Article 127 of Laws on Credit Institutions; or

*

Debts having violated regualtions specified in Points 1, 2, 5 of Article 128 of Laws on Credit Institutions.

20%

(e) Debts in the collection process under inspection conclusions. (a) Debts being overdue between 181 days and 360 days; or (b) Debts having rescheduled terms of repayment for the first time and being overdue less than 90 days according to the first rescheduled terms of repayment; or 4

Doubtful debts

(c) Debts having rescheduled terms of repayment for the second time; or (d) Debts specified in point (d) of Sub-standard debts not yet collected between 30 days and 60 days since the issuance date of recovery decision; or

50%

(e) Debts in the collection process under inspection conclusions but being overdue up to 60 days according to recovery term. (a) Debts being overdue more than 360 days; or (b) Debts having rescheduled terms of repayment for the first time and being overdue more than 90 days according to the first rescheduled terms of repayment; or (c) Debts having rescheduled terms of repayment for the second time and being overdue according to the second reschedule terms of repayment; or 5

Loss debts

(d) Debts having rescheduled terms of repayment for the third time or more, regardless of whether the debts are overdue or not; or (e) Debts specified in point (d) of Sub-standard debts not yet collected over 60 days since the issuance date of recovery decision; or (f) Debts in the collection process under inspection conclusions but being overdue of more than 60 days according to recovery term; or (g) Debts to credit institutions being announced under special control status by the SBV, or to foreign bank branches of which capital and assets are blockaded.

104

ANNUAL REPORT 2016 www.eximbank.com.vn

100%


For off-balance sheet commitments, the Group classifies debts based on the overdue days from the date when the Group performs committed obligations: ™™

Group 3 – Sub-standard debts: overdue below 30 days;

™™

Group 4 – Doubtful debts: overdue from 30 days to less than 90 days;

™™

Group 5 – Loss debts: overdue from 90 days and above..

Where a customer owes more than one debt to the Group, and has any of its debts transferred to a higher risk group, the Group is obliged to classify the remaining debts of such customer into the group of debts with higher risk corresponding with their level of risk. When the Group participates in a syndicated loan not as the lead bank, the Group reclassifies all debts (including the syndicated loan) of the customer into a higher risk group of debt as decided by the lead bank, participating banks and by the Group. The Group is also required to use the results of debt classification as provided by the Credit Information Center of SBV (“CIC”) at the date of classification to adjust the results of its internal classification of debts. Where debts and off-balance sheet commitments of one customer are classified by the Group into a group of debts with lower risk as compared to those provided by CIC, the Group is required to reclassify such debts and off-balance sheet commitments to the group of debts as provided by CIC. According to Official Letter No. 5482/NHNN-TTGSNH dated 30 July 2014 issued by the SBV providing implementation guidance of Circular 02 and Circular 09, the Group is not required to use the debt groups provided by CIC for the debts with rescheduled repayment terms and maintains the debt groups within the rescheduled payment terms as stipulated in Circular 02. The allowed value of collaterals is determined in accordance with the following principles as set out in Circular 02: ™™

Collateral asset with value of VND50 billion or more for debts to related parties or other parties subject to credit restriction under Article 127 of Law on Credit Institutions and collateral asset with value of VND200 billion or more must be valued by a licensed asset valuation organisation; and

™™

Other than the above, collateral assets are valued in accordance with the Group’s internal policies and processes.

CONSOLIDATED FINANCIAL STATEMENTS

105


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

Form B05/TCTD-HN

Maximum allowed ratio of collateral assets are as follows:

Type of collateral assets

Maximum allowed ratio

(a) Customers deposits in VND

100%

(b) Gold billets, except for the types of gold specified in item (i) below; customers deposits in foreign currencies

95%

(c) Government bonds, transferable instruments, valuable papers issued by credit institutions, saving deposit certificates, certificates of deposit, bills and notes issued by other credit institution or foreign bank branches: *

With a remaining term of below 1 year

*

With a remaining term of between 1 year to 5 years

*

With a remaining term of over 5 years

95% 85% 80%

(d) Securities issued by other credit institutions and listed on a stock exchange

70%

(e) Securities issued by other enterprises and listed on a stock exchange

65%

(f) Unlisted securities and valuable papers, except for the types of securities specified in item (c) above, issued by other credit institutions registered for listing on a stock exchange;

50%

Unlisted securities and valuable papers, except for the types of securities specified in item (c) above, issued by other credit institutions not registered for listing on a stock exchange (g) Unlisted securities and valuable papers issued by enterprises registered for listing on a stock exchange;

30%

Unlisted securities and valuable papers issued by enterprises not registered for listing on a stock exchange. (h) Real estates

10% 50%

(i) Gold billets not having quoted price, other types of gold and other collateral assets

30%

30%

Collateral assets that do not satisfy the legal conditions as specified in Point 3, Article 12 of Circular 02 are deemed to have zero allowed value. (iii)

General allowance for credit losses

In accordance with Circular 02, a general allowance for credit losses is made at 0.75% of the outstanding principals of debts at the last working date of each quarter (except for Quarter 4, a general allowance is made at 0.75% of the outstanding principals of debts at the last working date of November), excluding deposits with and loans to other credit institutions and debts being classified as Loss debts. As at 31 December 2016, the Group provided a general allowance of 0.75% of the above balances as at 30 November 2016 (31 December 2015: a general allowance was provided at 0.75% of the above balances as at 30 November 2015). (iv)

Writing-off bad debts

In accordance with Circular 02 and Circular 09, debts are written-off against the allowance when they have been classified to Group 5 or when borrowers have been declared bankrupt or dissolved (for borrowers being organisations and enterprises) or borrowers are deceased or missing (for borrowers being individuals). Debts written-off against allowance are recorded as off-balance sheet items for following up and collection. The amounts collected from the debts previously written-off, including proceeds from sales of collaterals against those debts, are recognised in the consolidated statement of income upon receipt. .

106

ANNUAL REPORT 2016 www.eximbank.com.vn


(v)

Provision for off-balance sheet commitments

In accordance with Circular 02 and Circular 09, the debt classification of off-balance sheet commitments is done solely for risk management, credit quality supervision of credit granting activities. The Group is not required to make provision for off-balance sheet commitments, except where the Group has been required to made payment under the guarantee contract, in which case the payment on behalf is classified and allowance for credit losses is made in accordance with the accounting policy as described in Note 3(g). (h)

Investment securities

Investment securities include available-for-sale and held-to-maturity securities. The Group classifies investment securities at the time of purchase as available-for-sale securities or held-to-maturity securities. In accordance with Official Letter No. 2601/NHNN-TCKT dated 14 April 2009 issued by the SBV, the Group is allowed to reclassify investment securities maximum one time after the initial classification at purchase date. (i)

Available-for-sale securities Classification

Available-for-sale securities are debt securities or equity securities which are bought and intended to be held for an indefinite period and may be sold at any time. Recognition

The Group recognises available-for-sale securities on the date when it becomes a party to the contractual provisions of these securities (trade date accounting). Measurement

Available-for-sale unlisted corporate bonds are stated at cost less allowance for credit losses. Debt classification and allowance for credit losses of unlisted corporate bonds are made in accordance with the requirements of Circular 02 and Circular 09 as described in Note 3(g). Other available-for-sale securities are stated at cost, which includes purchase price plus any directly attributable transaction costs such as brokerage fees, transactions fees, information fee and bank charges (if any). Subsequently, these securities are recognised at the lower of book value and market value with the loss being recognised in the consolidated statement of income. For listed available-for-sale securities, the market price is the closing price of securities obtained from the Ho Chi Minh City Stock Exchange and the Hanoi Stock Exchange at the end of annual accounting period. For unlisted available-for-sale equity securities that have been registered for trading on the UPCoM market, the market price is the closing prices obtained from the UPCoM market at the end of annual accounting period. For unlisted available-for-sale equity securities that have been registered for trading on the OTC market, the market price is the average of the transaction prices quoted by three securities companies having charter capital of more than VND300 billion at the end of annual accounting period. .

CONSOLIDATED FINANCIAL STATEMENTS

107


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

3.

Summary of significant accounting policies (cont.)

(h)

Investment securities (cont.)

Form B05/TCTD-HN

Other securities whose market prices cannot be determined reliably are stated at cost. Premiums and discounts arising from purchases of available-for-sale debt securities are amortised to the consolidated statement of income using the straight line method over the period from the acquisition date to the maturity date, in cases that these available-for-sale securities are sold before their maturity dates, the unamortised premiums and discounts are fully recognised in the consolidated statement of income at the selling date. Post-acquisition interest income of available-for-sale debt securities is recognised in the consolidated statement of income on an accrual basis. Interest income from available-for-sale debt securities which is attributable to the period before acquisition date is deducted from the carrying amount of available-for-sale debt securities. The allowance for credit losses of available-for-sale unlisted corporate bonds and allowance for diminution in the value of other available-for-sale securities as mentioned above are reversed if the recoverable amount increases after the allowance being recognised. An allowance is reversed only to the extent that the investmentâ&#x20AC;&#x2122;s carrying amount does not exceed the carrying amount that would have been determined if no allowance had been recognised. Derecognition

Available-for-sale securities are derecognised when the rights to receive cash flows from the securities have expired or the Group has transferred substantially all risks and rewards of ownership. (ii)

Held-to-maturity securities Classification

Held-to-maturity securities are debt securities with fixed or determinable payments and a fixed maturity where the Group has the positive intention and ability to hold until maturity. Recognition

The Group recognises held-to-maturity securities on the date it becomes a party to the contractual provisions of these securities (trade date accounting). Measurement

Held-to-maturity unlisted corporate bonds are stated at cost less allowance for credit losses. Debt classification and allowance for credit losses of unlisted corporate bonds are made in accordance with the requirements of Circular 02 and Circular 09 as described in Note 3(g). Other held-to-maturity securities are stated at cost less allowance for diminution in value. Allowance for diminution in value is made when there is an indicator of long-term decline or strong evidence that the Group might not be able to fully recover the amount and the Group does not make allowance for diminution in value for short-term changes in prices. Premiums and discounts arising from purchases of held-to-maturity securities are amortised to the consolidated statement of income using the straight line method over the period from the acquisition date to the maturity date.

108

ANNUAL REPORT 2016 www.eximbank.com.vn


Post-acquisition interest income from held-to-maturity securities is recognised in consolidated statement of income on an accrual basis. Interest income from held-to-maturity securities which is attributable to the period before acquisition date is deducted from the carrying amount of held-to-maturity securities. The allowance for credit losses of held-to-maturity unlisted corporate bonds and the allowance for diminution in the value of other held-to-maturity securities as mentioned above are reversed if the recoverable amount increases after the allowance being recognised. An allowance is reversed only to the extent that the investment’s carrying amount does not exceed the carrying amount that would have been determined if no allowance had been recognised. Derecognition

Held-to-maturity securities are derecognised when the rights to receive cash flows from these securities have expired or the Group has transferred substantially all risks and rewards of ownership. (iii)

Special bonds issued by Vietnam Asset Management Company (“VAMC”) Classification

Special bonds issued by VAMC as consideration for bad debts sold by the Group to VAMC are recognised as held-tomaturity securities. Recognition

The Group accounts for bad debts sold in exchange for special bonds issued by VAMC in accordance with the guidance in Official Letter 8499 and Official Letter 925. These special bonds are classified as held-to-maturity securities, initially measured at par value at transaction date and subsequently measured at par value less allowance for losses Measurement

In exchange of each bad debt sold to VAMC, the Group receives a corresponding special bond issued by VAMC. Par value of the special bond is equal to the carrying value of bad debt sold net off specific allowance which was made but not yet utilised. After completing the procedures of selling bad debts, the Group writes down the book value of bad debts, uses specific allowance made but not yet utilised and derecognises interest receivables recorded in off-balance sheet account. At the same time, the Group recognises the special bonds issued by VAMC as held-to-maturity securities issued by local economic entities. For the special bonds issued by VAMC, specific allowance is calculated and made in accordance with the guidance in Circular No. 19/2013/TT-NHNN dated 6 September 2013 (“Circular 19”) issued by the SBV regulating the purchase, sale and handling of bad debts of VAMC and Circular No. 14/2015/TT-NHNN dated 28 August 2015 (“Circular 14”) and Circular No. 08/2016/TT-NHNN dated 16 June 2016 (“Circular 08”) issued by the SBV amending and supplementing certain articles of Circular 19. Accordingly, the minimum specific allowance required to make annually during the term of the special bonds is the positive difference between 20% of the par value for special bonds having term of five years deducting the collected amounts of the underlying bad debts. For special bonds with term are extended from five years to ten years in accordance with Official Letters issued by the State authorities, the Group made allowance for 2016 being the positive difference between 10% of the par value of special bonds deducting the collected amounts of the underlying bad debts. Annually, within 5 consecutive working days before the due date of special bonds, the Group is required to make adequate specific allowance as above. Allowance for special bonds is recognised in the consolidated statement of income. The Group is not required to make general allowance for these special bonds.

CONSOLIDATED FINANCIAL STATEMENTS

109


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

3.

Summary of significant accounting policies (cont.)

(i)

Other long-term investments

Form B05/TCTD-HN

Other long-term investments are investments in equity instruments of entities where the Group has no control or significant influence. These long-term investments are initially recognised at cost. Subsequent to the initial recognition, they are measured at cost less allowance for diminution in value. Allowance for diminution in value of long-term investments in economic entities is required if the economic entities suffer losses, except when the loss was anticipated in the initial business plan. The allowance for diminution in value is equal to the difference between the actual capital contributed by all investors and the actual equity multiply (x) with the percentage of actual capital contributed by the Group over total actual capital contributed by all investors at the end of annual accounting period. The allowance is reversed if the recoverable amount increases after the allowance being recognised. An allowance is reversed only to the extent that the investmentâ&#x20AC;&#x2122;s carrying amount does not exceed the carrying amount that would have been determined if no allowance had been recognised. (j)

Other assets

(i)

Foreclosed assets of which ownership being transferred and awaiting for settlement

Foreclosed assets of which ownership being transferred and awaiting for settlement are foreclosed assets of which the ownership was transferred to the Group. For foreclosed assets of which ownership have not been transferred to the Group, the Group records as off balance sheet items. (ii)

Construction in progress

Construction in progress represents the costs of construction which have not been fully completed. No depreciation is provided for construction in progress during the period of construction. (iii)

Other assets

Other assets, except for receivables from credit activities, are stated at cost less the allowance for losses. Allowance for losses on other assets are made based on the overdue status of receivables or expected losses on undue debts which may occur when an economic organisation is bankrupted or liquidated; or debtor is missing, running away, being prosecuted, in prison, under a trial or pending execution of sentences or deceased. The allowance expenses are recorded as operating expenses during the year. For overdue debts, the Group makes allowance based on the overdue status in accordance with Circular No. 228/2009/TT-BTC dated 7 December 2009 issued by the Ministry of Finance as follows: Overdue status

Allowance rate

Over 6 months to less than 1 year

30%

From 1 to less than 2 years

50%

From 2 to less than 3 years

70%

From 3 years and above

100%

Allowance for losses on other assets based on the expected losses of undue debts is determined by the Group after giving consideration to the recovery of these debts.

110

ANNUAL REPORT 2016 www.eximbank.com.vn


(k)

Tangible fixed assets

(i) Cost

Tangible fixed assets are stated at cost less accumulated depreciation. The initial cost of a tangible fixed asset comprises its purchase price, including import duties and non-refundable purchase taxes and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Expenditure incurred after the tangible fixed assets have been put into operation, such as repairs, maintenance and overhaul costs, is charged to consolidated statement of income in the period in which the costs are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of an item of tangible fixed assets beyond its originally assessed standard of performance, the expenditure is capitalised as an additional cost of tangible fixed assets. (ii) Depreciation

Depreciation is computed on a straight-line basis over the estimated useful lives of items of tangible fixed assets. The estimated useful lives are as follows: ™™

buildings and structures

25 - 50 years

™™

machinery and equipment

5 - 10 years

™™

office equipment

3 - 10 years

™™

motor vehicles

3 - 10 years

™™

other fixed assets

5 - 10 years

(l)

Intangible fixed assets

(i)

Land use rights

Land use rights comprise those acquired in a legitimate transfer. Freehold land use rights are stated at cost and are not amortised. Initial cost of a land use right comprises its purchase price and any directly attributable costs incurred in conjunction with securing the land use right. (ii) Software

Cost of acquiring new software, which is not an integral part of the related hardware, is capitalised and treated as an intangible asset. Software costs are amortised on a straight-line basis over a period ranging from 5 to 10 years. (m) Provisions

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. (n)

Deposits and borrowings from other credit institutions

Deposits and borrowings from other credit institutions are stated at cost. (o)

Deposits from customers

Deposits from customers are stated at cost. (p)

Valuable papers issued

Valuable papers issued are stated at cost. Cost of valuable papers issued comprises proceeds from issuance deducting issuance costs.

CONSOLIDATED FINANCIAL STATEMENTS

111


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

3.

Summary of significant accounting policies (cont.)

(q)

Other payables

Form B05/TCTD-HN

Other payables are stated at cost. (r)

Severance allowance and unemployment insurance

Under the Vietnamese Labour Code, when an employee who has worked for the Group for 12 months or more (“the eligible employees”) voluntarily terminates his/her labour contract, the employer is required to pay the eligible employee severance allowance calculated based on years of service as of 31 December 2008 and employee’s average monthly salary of the six-month period prior to resignation date. On 24 October 2012, the Ministry of Finance issued Circular No. 180/2012/TT-BTC (“Circular 180”) guiding the financial treatment for redundancy allowance to employees of enterprises. Circular 180 provides that, in preparation of 2012 financial statements, if an enterprise’s provision for redundancy allowance still has the outstanding balance, the enterprise must reverse the balance to other income for 2012 and must not carry forward the balance to the following year. Accordingly, the Group reversed the outstanding balance of provision for severance allowance. This change in accounting policy has been applied prospectively from 2012. Pursuant to the Law on Social Insurance, effective from 1 January 2009, the Group and its employees are required to contribute to an unemployment insurance fund managed by the Vietnam Social Insurance Agency. The unemployment insurance paid by the Group for the years of service is recorded as expense in the consolidated statement of income when incurs. (s) Capital (i)

Charter capital

Ordinary shares are recorded as par value. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity. (ii)

Share premium

On receipt of proceeds from share issuance from shareholders, the difference between the issue price and the par value of the shares is recorded in share premium account in equity. (iii)

Treasury shares

When the Bank repurchases the Bank’s ordinary shares (“treasury shares”), the amount of the consideration paid, which includes directly attributable costs, is recognised as a deduction from equity. When the treasury shares are reissued subsequently, the amount received is recognised as an increase in equity, and the difference between the issue price and carrying amount of shares reissued is recorded in share premium account in equity. (t) Reserves (i)

Statutory reserves The Bank

According to Decree No. 57/2012/ND-CP dated 20 July 2012 issued by the Government of Vietnam, the Bank is required to make the following allocations before distribution of profits:

Reserve to supplement charter capital Financial reserve

112

ANNUAL REPORT 2016 www.eximbank.com.vn

Annual allocation

Maximum balance

5% of profit after tax

100% charter capital

10% of profit after tax

25% charter capital


The purpose of financial reserve is to cover the remaining losses in the course of business after such losses being compensated by the organisations, individuals causing the loss, indemnity and the allowance; to use for other purposes in accordance with the laws. The statutory reserves are non-distributable and are classified as part of equity. Eximbank Asset Management Company â&#x20AC;&#x201C; the subsidiary

According to Circular No. 27/2002/TT-BTC dated 22 March 2002 issued by the Ministry of Finance, the appropriations of statutory reserves are made in accordance with the requirements applicable to the parent bank as described above. (ii)

Bonus and welfare fund

Bonus and welfare fund is not required by laws and is fully distributable, and is used primarily to make payments to the Groupâ&#x20AC;&#x2122;s employees. Bonus and welfare fund is appropriated from profit after tax based on the shareholdersâ&#x20AC;&#x2122; decision at the Annual General Meeting and is recognised as other liabilities. The appropriation rate is decided by the shareholders at the Annual General Meeting. (iii)

Other reserves

Other reserves comprise investment and development fund and other reserves appropriated from the profit after tax approved by the shareholders at the Annual General Meeting. These reserves are not required by laws, fully distributable and classified as part of equity. (u)

Off-balance sheet items Commitments and contingent liabilities

From time to time, the Group has outstanding commitments to extend credit. These commitments take the form of approved loans and overdraft facilities. The Group also provides financial guarantees and letters of credit to guarantee the performance of customers to third parties. The contingent liabilities and commitments may expire without being advanced in whole or in part. Therefore the amounts do not represent a firm commitment of future cash flows. (v)

Interest income

The Group recognises interest income on an accrual basis, except for interest income from debts classified in Group 2 to Group 5 as described in Note 3(g) being recognised upon receipt. When debts are classified in Group 2 to Group 5 as described in Note 3(g) the accrued interest receivable is reversed and recorded in the off-balance sheet. Interest income from these debts is recognised in the consolidated statement of income upon receipt. (w)

Interest expense

Interest expense is recognised in the consolidated statement of income on an accrual basis. (x)

Fees and commission income

Fees and commission income include the income from the settlement services, guarantee services, cashier services and other services. Fees and commission income are recognised in the consolidated statement of income on an accrual basis. (y)

Fees and commission expense

Fees and commission expenses are recognised in the consolidated statement of income when incurred.

CONSOLIDATED FINANCIAL STATEMENTS

113


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

3.

Summary of significant accounting policies (cont.)

(z)

Dividend income

Form B05/TCTD-HN

Dividend in the form of cash is recognised in the consolidated statement of income when the Group’s right to receive dividend is established.  Dividend in the form of shares and bonus shares is not recognised as income and the Group only records the increase in number of shares. Dividends which are attributable to the period before acquisition date are deducted from the carrying amount of the investment. (aa)

Revenue from sale of assets

Revenue from the sale of assets is recognised in the consolidated statement of income when the significant risks and rewards of assets’ownership have been transferred to the buyer. No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due or the possible return of assets. (bb)

Operating lease payments

Payments made under operating leases are recognised in the consolidated statement of income on a straightline basis over the term of the lease. Lease incentives received are recognised in the consolidated statement of income as an integral part of the total lease expense. (cc) Taxation

Corporate income tax on the profit or loss for the period comprises current and deferred tax. Corporate income tax is recognised in the consolidated statement of income except to the extent that it relates to items recognised directly to equity, in which case it is recognised in equity. Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted at the end of the annual accounting period, and any adjustment to tax payable in respect of previous periods. Deferred tax is provided using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities using the tax rates enacted or substantively enacted at the end of the annual accounting period. A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised. (dd)

Earnings per share

The Group presents basic earnings per share (“EPS”) for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to the ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to the ordinary shareholders and the weighted average number of ordinary shares outstanding for the effect of all dilutive potential ordinary shares. (ee)

Related parties

Parties are considered to be related to the Group if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions, or where the Group and the other party are subject to common control or significant influence. Related parties may be individuals or corporate entities and include close family members of any individual considered to be a related party. 114

ANNUAL REPORT 2016 www.eximbank.com.vn


(ff)

Segment reporting

A segment is a distinguishable component of the Group that is engaged either in providing related products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those of other segments. The Group’s primary format for segment reporting is based on geographical segments and the secondary format is based on business segments. (gg)

Classification of financial instruments

Solely for the purpose of providing disclosures about the significance of financial instruments to the Group’s financial position and results of operations and the nature and extent of risk arising from financial instruments, the Group classifies its financial instruments as follows: (i)

Financial assets Financial assets at fair value through profit or loss

A financial asset at fair value through profit or loss is a financial asset that meets either of the following conditions: ™™

™™

It is classified by the Group as held-for-trading. A financial asset is classified as held-for-trading if: *

it is acquired principally for the purpose of selling it in the near term;

*

there is evidence of a recent pattern of short-term profit-taking; or

*

it is a derivative (except for a derivative that is financial guarantee contract or a designated and effective hedging instrument).

Upon initial recognition, it is designated by the Group as at fair value through profit or loss.

Held-to-maturity investments ™™

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity that the Group has the positive intention and ability to hold to maturity, other than: *

those that the Group, upon initial recognition, designates as at fair value through profit or loss;

*

those that the Group designates as available-for-sale; and

*

those that meet the definition of loans and receivables.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than those: ™™

that the Group intends to sell immediately or in the near term, which are classified as held for trading and those that the Group, on initial recognition, designates as at fair value through profit or loss;

™™

that the Group, upon initial recognition, designates as available-for-sale; or

™™

for which the Group may not recover substantially all of its initial investment, other than because of credit deterioration, which are classified as available-for-sale.

CONSOLIDATED FINANCIAL STATEMENTS

115


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

3.

Summary of significant accounting policies (cont.)

(z)

Dividend income (cont.)

Form B05/TCTD-HN

Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are designated as available for sale or those are not classified as:

(ii)

™™

loans and receivables;

™™

held-to-maturity investments; or

™™

financial assets at fair value through profit or loss.

Financial liabilities

Financial liabilities at fair value through profit or loss A financial liability at fair value through profit or loss is a financial liability that meets either of the following conditions: ™™

™™

It is considered by management as held for trading. A financial liability is classified as held for trading if: *

it is incurred principally for the purpose of repurchasing it in the near term;

*

there is evidence of a recent pattern of short-term profit-taking; or

*

it is a derivative (except for a derivative that is financial guarantee contract or a designated and effective hedging instrument).

Upon initial recognition, it is designated by the Group as at fair value through profit or loss.

Financial liabilities carried at amortised cost Financial liabilities which are not classified as financial liabilities at fair value through profit or loss are classified as financial liabilities carried at amortised cost. The above described classification of financial liabilities is solely for presentation and disclosure purposes and is not intended to be a description of how the financial instruments are measured. Accounting policies for measurement of financial liabilities are disclosed in other relevant notes. (hh)

Nil balances

Items or balances required by Circular No. 49/2014/TT-NHNN dated 31 December 2014 issued by the SBV that are not shown in these consolidated financial statements indicate nil balances.

116

ANNUAL REPORT 2016 www.eximbank.com.vn


4.

Cash on hand, gold Unit: VND million

5.

31/12/2016

31/12/2015

Cash in VND

998,702

846,541

Cash in foreign currencies

854,982

942,159

Gold

166,376

252,049

2,020,060

2,040,749

Balances with the State Bank of Vietnam These consist of compulsory reserve for liquidity and current account at the SBV. Under the SBV’s regulations relating to the compulsory reserve, banks are permitted to maintain a floating balance for compulsory reserve requirement. The monthly average balance of the reserve must not be less than relevant compulsory reserve requirement rates multiplied by the preceding month’s average balances of deposits in scope as follows:

Deposits in scope

Compulsory reserve requirement rates 31/12/2016

31/12/2015

Preceding month’s average deposit balances of: Customers: *

Deposits in foreign currencies with term of less than 12 months

8%

8%

*

Deposits in foreign currencies with term of 12 months and above

6%

6%

*

Deposits in VND with term of less than 12 months

3%

3%

*

Deposits in VND with term of 12 months and above

1%

1%

1%

1%

Overseas credit institutions: * Deposits in foreign currencies

Unit: VND million 31/12/2016

31/12/2015

Current account and compulsory reserve *

In VND

3,058,005

1,607,784

*

In USD

707,274

1,108,480

3,765,279

2,716,264

CONSOLIDATED FINANCIAL STATEMENTS

117


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

6.

Form B05/TCTD-HN

Deposits with and loans to other credit institutions Unit: VND million 31/12/2016

31/12/2015

117,215

98,808

1,851,464

3,303,126

Deposits with other credit institutions

Demand deposits *

In VND

*

In foreign currencies

Term deposits *

In VND

4,546,212

3,321,550

*

In foreign currencies

1,781,950

1,109,790

8,296,841

7,833,274

(15,550)

-

8,281,291

7,833,274

95,000

95,000

(95,000)

(95,000)

-

-

8,281,291

7,833,274

Allowance for credit losses on deposits with other credit institutions Loans to other credit institutions *

In VND

Allowance for credit losses on loans to other credit institutions

Term deposits and loans to other credit institutions categorised by credit risk group are as follows: Unit: VND million

Group 1 - Current debts Group 4 - Doubtful debts Group 5 - Loss debts

118

ANNUAL REPORT 2016 www.eximbank.com.vn

31/12/2016

31/12/2015

6,312,612

4,415,790

-

15,550

110,550

95,000

6,423,162

4,526,340


7.

Derivatives and other financial assets Unit: VND million As at 31 December 2016

Total contract value (at foreign exchange rate at the contract date)

Total carrying value (at foreign exchange rate as at 31 December 2016) Assets

Liabilities

475,481

-

(3,355)

10,275,173

13,196

-

10,750,654

13,196

(3,355)

Currency derivatives *

Currency forward contracts

*

Currency swap contracts

Unit: VND million As at 31 December 2015

Total contract value (at foreign exchange rate at the contract date)

Total carrying value (at foreign exchange rate as at 31 December 2015) Assets

Liabilities

3,809,583

29,012

-

15,942,587

1,785

-

19,752,170

30,797

Currency derivatives

8.

*

Currency forward contracts

*

Currency swap contracts

Loans and advances to customers Unit: VND million

Loans to domestic economic entities and individuals Discounted transferrable instruments and valuable papers Payments on behalf of customers

31/12/2016

31/12/2015

86,500,444

84,401,111

390,883

357,513

-

1,168

86,891,327

84,759,792

Loan portfolio by credit risk group is as follows: Unit: VND million

Group 1 - Current debts Group 2 - Special mentioned debts Group 3 - Sub-standard debts Group 4 - Doubtful debts Group 5 - Loss debts

31/12/2016

31/12/2015

83,919,657

82,690,435

411,522

493,885

1,069,988

181,992

357,925

591,316

1,132,235

802,164

86,891,327

84,759,792

CONSOLIDATED FINANCIAL STATEMENTS

119


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

8.

Form B05/TCTD-HN

Loans and advances to customers (cont.) Loan portfolio by term is as follows: Unit: VND million 31/12/2016

31/12/2015

Short-term loans

34,015,359

31,618,759

Medium-term loans

14,901,279

15,806,410

Long-term loans

37,974,689

37,334,623

86,891,327

84,759,792

Loan portfolio by industry sector of customers is as follows: Unit: VND million 31/12/2016

31/12/2015

Individual and community services

34,578,236

33,203,944

Trading

20,794,532

20,942,648

Manufacturing and processing

6,892,794

6,500,828

Electricity, gas and water producing and distribution

5,773,962

5,908,704

Agriculture and forestry

5,764,675

6,730,921

Construction

4,881,466

5,174,406

Transportation, warehousing and communication

2,723,863

1,983,031

Hotels and restaurants

1,425,265

1,385,227

Operation of international organisations or parties

1,278,498

278,708

Financial services

945,606

867,373

Asset trading activities and consultancy services

665,135

448,815

Education and training

388,277

551,611

Health care and social relief activities

303,795

301,835

Mining exploration

289,607

308,702

Science and technology

128,154

124,216

57,462

48,823

86,891,327

84,759,792

Sport and cultural activities

120

ANNUAL REPORT 2016 www.eximbank.com.vn


Loan portfolio by type of borrower and type of business is as follows: Unit: VND million 31/12/2016

31/12/2015

Individuals

39,840,054

35,984,766

Limited liability companies

22,550,382

21,837,001

Joint stock companies

11,120,501

13,884,318

State-owned enterprises

10,321,575

10,096,115

2,139,490

1,962,076

100% foreign owned companies

723,528

805,563

Co-operatives

153,802

162,095

41,995

27,858

86,891,327

84,759,792

Private companies

Others

9.

Allowance for loans and advances to customers Allowance for loans and advances to customers consists of: Unit: VND million

(i)

31/12/2016

31/12/2015

General allowance (i)

619,785

628,462

Specific allowance (ii)

446,728

241,443

1,066,513

869,905

Movements in general allowance for credit losses on loans and advances to customers during the year were as follows:: Unit: VND million

Opening balance Allowance (reversed)/made during the year (Note 28) Closing balance (ii)

2016

2015

628,462

618,294

(8,677)

10,168

619,785

628,462

Movements in specific allowance for credit losses on loans and advances to customers during the year were as follows: Unit: VND million 2016

2015

Opening balance

241,443

404,406

Allowance made during the year (Note 28)

687,862

539,640

Allowance utilised during the year

(347,237)

(648,478)

Allowance utilised for the loans sold to VAMC

(135,340)

(51,062)

-

(3,063)

446,728

241,443

Foreign currency translation difference Closing balance

CONSOLIDATED FINANCIAL STATEMENTS

121


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

10.

Form B05/TCTD-HN

Investment securities Unit: VND million 31/12/2016

31/12/2015

9,354,769

3,922,512

-

722

33,950

33,950

9,388,719

3,957,184

(379)

-

9,388,340

3,957,184

Available-for-sale securities Debt securities *

Government bonds

Equity securities *

Shares issued by other local credit institutions

*

Shares issued by local economic entities

Allowance for available-for-sale investment securities (i)

Unit: VND million 31/12/2016

31/12/2015

100,000

150,042

Held-to-maturity securities (excluding special bonds issued by VAMC) Debt securities *

Government bonds

*

Bonds issued by other local credit institutions – unlisted

3,500,000

4,600,000

*

Bonds issued by local economic entities – unlisted

1,590,000

5,198,000

5,190,000

9,948,042

Allowance for held-to-maturity securities (excluding special bonds issued by VAMC) *

General allowance for credit losses (ii)

(11,363)

(38,422)

5,178,637

9,909,620 Unit: VND million

31/12/2016

31/12/2015

7,029,500

6,230,410

(1,400,520)

(979,130)

5,628,980

5,251,280

Special bonds issued by VAMC (iii)

(i)

*

Special bonds’ par value

*

Allowance for special bonds

Movements in allowance for available-for-sale securities during the year were as follows: Unit: VND million 2016

2015

-

-

Allowance made during the year

379

-

Closing balance

379

-

Opening balance

122

ANNUAL REPORT 2016 www.eximbank.com.vn


(ii)

Movements in general allowance for credit losses on held-to-maturity securities during the year were as follows: Unit: VND million

Opening balance Allowance reversed during the year (Note 28) Closing balance (iii)

2016

2015

38,422

44,625

(27,059)

(6,203)

11,363

38,422

These are special bonds issued by VAMC in exchange for bad debts sold to VAMC with total outstanding principal of VND7,378,530 million (31/12/2015: VND6,454,402 million). At the time of selling bad debts to VAMC, the Group had made specific allowance for these debts amounting to VND349,030 million (31/12/2015: VND223,992 million).

Movements in allowance for special bonds issued by VAMC during the year were as follows: Unit: VND million 2016

2015

Opening balance

979,130

183,748

Allowance made during the year (Note 28)

474,543

803,919

Allowance reversed during the year (Note 28)

(53,153)

(8,537)

1,400,520

979,130

Closing balance

11.

Capital contribution, long-term investments Unit: VND million 31/12/2016

31/12/2015

1,672,663

1,672,663

52,483

52,483

212,719

306,499

1,937,865

2,031,645

(81,057)

(161,811)

1,856,808

1,869,834

Other long-term investments: Investments in shares of other local credit institutions *

Listed

Investments in shares of local economic entities *

Listed

*

Unlisted

Allowance for diminution in the value of long-term investments

Movements of allowance for diminution in the value of other long-term investments during the year were as follows: Unit: VND million

Opening balance Allowance made during the year (Note 26) Allowance reversed during the year (Note 26) Closing balance

2016

2015

161,811

153,266

4,952

9,617

(85,706)

(1,072)

81,057

161,811

CONSOLIDATED FINANCIAL STATEMENTS

123


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

12.

Form B05/TCTD-HN

Tangible fixed assets

Building and structures

Machinery and equipment

605,215

598,159

6,049

12,573

Reclassification to other assets

(90,301)

-

Reclassification

(53,207)

157

2016

Cost

Opening balance Transfer from construction in progress

Disposals

(2,892)

(666)

464,864

610,223

28,297

357,824

Charge for the year

10,800

56,358

Reclassification

13,529

(217)

-

(583)

52,626

413,382

Opening balance

576,918

240,335

Closing balance

412,238

196,841

Building and structures

Machinery and equipment

436,397

567,871

-

-

191,196

30,482

-

625

(22,378)

(819)

605,215

598,159

21,066

295,829

8,209

62,519

Closing balance Accumulated depreciation Opening balance

Disposals Closing balance Net book value

2015

Cost

Opening balance Addition Transfer from construction in progress Reclassification Disposals Closing balance Accumulated depreciation

Opening balance Charge for the year Reclassification

-

220

(978)

(744)

28,297

357,824

Opening balance

415,331

272,042

Closing balance

576,918

240,335

Disposals Closing balance Net book value

As at 31 December 2016, included in tangible fixed assets were assets costing VND394,083 million which were fully depreciated (31/12/2015: VND295,429 million) but which are still in use.

124

ANNUAL REPORT 2016 www.eximbank.com.vn


Unit: VND million Motor vehicles

Office equipment

Other fixed assets

Total

231,850

42,949

555,074

2,033,247

10,749

3,372

26,666

59,409

-

-

-

(90,301)

5,733

(37)

(14)

(47,368)

(16,136)

(119)

(86)

(19,899)

232,196

46,165

581,640

1,935,088

163,272

32,506

346,324

928,223

24,855

3,328

57,365

152,706

2,398

-

222

15,932

(15,494)

(119)

(75)

(16,271)

175,031

35,715

403,836

1,080,590

68,578

10,443

208,750

1,105,024

57,165

10,450

177,804

854,498

Motor vehicles

Office equipment

Other fixed assets

Total

230,677

41,485

523,126

1,799,556

217

-

-

217

4,003

2,240

35,186

263,107

-

(225)

(400)

-

(3,047)

(551)

(2,838)

(29,633)

231,850

42,949

555,074

2,033,247

135,969

28,285

288,792

769,941

30,244

4,866

59,302

165,140

-

(152)

(68)

-

(2,941)

(493)

(1,702)

(6,858)

163,272

32,506

346,324

928,223

94,708

13,200

234,334

1,029,615

68,578

10,443

208,750

1,105,024

CONSOLIDATED FINANCIAL STATEMENTS

125


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

13.

Form B05/TCTD-HN

Intangible fixed assets Unit: VND million 2016

Land use rights

Software

Total

3,582,433

147,837

3,730,270

85,604

12,568

98,172

(1,229,028)

-

(1,229,028)

66,737

-

66,737

(44,551)

-

(44,551)

2,461,195

160,405

2,621,600

-

94,667

94,667

Cost

Opening balance Transfer from construction in progress Reclassification to other assets Reclassification Disposals Closing balance Accumulated amortisation

Opening balance Charge for the year

-

Closing balance

13,502

13,502

108,169

108,169

Net book value

Opening balance

3,582,433

53,170

3,635,603

Closing balance

2,461,195

52,236

2,513,431 Unit: VND million

2015

Land use rights

Software

Total

3,209,098

132,495

3,341,593

603,132

15,342

618,474

(229,797)

-

(229,797)

3,582,433

147,837

3,730,270

-

82,537

82,537

-

12,130

12,130

-

94,667

94,667

Opening balance

3,209,098

49,958

3,259,056

Closing balance

3,582,433

53,170

3,635,603

Cost

Opening balance Transfer from construction in progress Disposals Closing balance Accumulated amortisation

Opening balance Charge for the year Closing balance Net book value

As at 31 December 2016, included in intangible fixed assets were assets costing VND48,329 million which were fully depreciated (31/12/2015: VND41,033 million) but which are still in use.

126

ANNUAL REPORT 2016 www.eximbank.com.vn


14.

Other assets Unit: VND million 31/12/2016

31/12/2015

Constructions in progress (i) *

Advances for purchases of fixed assets

355,364

310,151

*

Construction in progress

284,868

281,101

*

Advances for purchases of other assets

-

19,769

640,232

611,021

285,859

303,828

Receivables *

Receivables from share transfers (ii)

*

Advances for operating activities

53,315

57,797

*

Over-paid corporate income tax (Note 20)

50,630

129,561

*

Receivables from Vinashinâ&#x20AC;&#x2122;s debts settlement (iii)

43,750

87,500

*

Receivables from card settlements

43,313

31,079

*

Receivables from interest subsidy program

38,451

38,451

*

Corporate income tax paid in foreign countries awaiting for finalisation

23,362

12,519

*

Deposits for house rentals and other operating leases

22,063

26,111

*

Dividend receivable

5,865

5,865

*

Deductible value added tax

5,035

5,472

*

Advances for debts collection awaiting for finalisation

1,398

18,736

*

Other receivables

57,814

192,216

630,855

909,135

840,414

992,436

49,294

72,962

1,296,359

-

19,064

17,473

9,336

13,132

1,374,053 (6,025)

103,567 (6,000)

3,479,529

2,610,159

Accrued interest and fees receivable Other assets *

Prepaid expenses

*

Foreclosed assets of which ownership being transferred and awaiting for settlement (iv)

*

Materials and tools

*

Settlements among credit institutions

Allowance for losses on other assets

CONSOLIDATED FINANCIAL STATEMENTS

127


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

14.

Other assets (cont.)

(i)

Movements in construction in progress during the year were as follows:

Form B05/TCTD-HN

Unit: VND million 2016

2015

Opening balance

611,021

835,496

Addition

200,246

678,821

Transfer to tangible fixed assets

(59,409)

(263,107)

Transfer to intangible fixed assets

(98,172)

(618,474)

Transfer to other assets

(13,454)

(21,715)

Closing balance

640,232

611,021

(ii)

These are receivables from transfers of shares of two companies that the Group invested in and these receivables will mature in 2018 and 2019.

(iii)

This amount is the receivable from resolving debts of Vietnam Shipbuilding Industry Corporation (Vinashin) in accordance with guidance of the State Bank of Vietnam and it is amortised to the consolidated statement of income until 2017. The movement of this receivable during the year is related to the amortisation for the year ended 31 December 2016.

(iv)

These are foreclosed assets of which the ownership was transferred to the Group and they were reclassified from tangible and intangible fixed assets to other assets in accordance with the current accounting guidance.

(v)

Other assets with credit risk categorised by credit risk group are as follows: Unit: VND million

Group 1 - Current debts Group 2 - Special mentioned debts Group 3 - Sub-standard debts Group 4 - Doubtful debts Group 5 - Loss debts

15.

31/12/2016

31/12/2015

1,364,431

1,537,733

-

40

-

173

107

53

49,668

93,365

1,414,206

1,631,364

Borrowings from the State Bank of Vietnam Unit: VND million 31/12/2016

31/12/2015

1,111,672

542,634

-

2,311

1,111,672

544,945

Borrowings from the SBV

128

*

In VND

*

In foreign currencies

ANNUAL REPORT 2016 www.eximbank.com.vn


16.

Deposits and borrowings from other credit institutions Unit: VND million 31/12/2016

31/12/2015

Demand deposits *

Demand deposits in VND

80,900

81,426

*

Demand deposits in foreign currencies

12,645

13,571

795,240

4,565,000

4,233,550

2,443,780

5,122,335

7,103,777

1,362,000

829,540

6,484,335

7,933,317

Term deposits *

Term deposits in VND

*

Term deposits in foreign currencies

Borrowings *

17.

Borrowings in foreign currencies

Deposits from customers Unit: VND million 31/12/2016

31/12/2015

11,157,315

10,410,868

3,061,176

3,389,012

16,809,835

19,237,732

447,720

799,151

64,618,248

53,658,311

5,345,732

10,075,694

215,912

41,245

17,240

55,435

628,298

560,621

50,018

202,473

102,351,494

98,430,542

Demand deposits *

Demand deposits in VND

*

Demand deposits in foreign currencies

Term deposits *

Demand deposits in VND

*

Demand deposits in foreign currencies

Saving deposits *

Demand deposits in VND

*

Demand deposits in foreign currencies

Special-purpose deposits *

Demand deposits in VND

*

Demand deposits in foreign currencies

Margin deposits *

Demand deposits in VND

*

Demand deposits in foreign currencies

CONSOLIDATED FINANCIAL STATEMENTS

129


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

17.

Form B05/TCTD-HN

Deposits from customers (cont.) Deposits from customers by type of customer and type of business are as follows: Unit: VND million 31/12/2016

31/12/2015

77,039,085

70,321,728

Joint stock companies

8,481,254

10,460,623

Limited liability companies

6,980,180

7,212,539

State-owned enterprises

5,413,294

5,796,873

100% foreign owned companies

3,873,317

3,971,537

Private companies

113,467

176,700

Others

450,897

490,542

102,351,494

98,430,542

Individuals

18.

Valuable papers issued Unit: VND million 31/12/2016

31/12/2015

-

392

3,000,000

3,000,000

3,000,000

3,000,392

Certificates of deposit

19.

*

Under 12 months

*

From 5 years and above

Other liabilities Unit: VND million 31/12/2016

31/12/2015

Internal payables *

Payables to employees

12,404

5,365

*

Other internal payables

594

4,659

Other external payables *

Payables relating to letters of credit

116,609

114,878

*

Card settlement payables

106,089

29,374

*

Remittance payables

50,258

11,572

*

Payable to the SBV relating to interest subsidy program

29,863

29,841

*

Taxes payable (Note 20)

15,912

15,728

*

Payables relating to debts handling

4,747

13,666

*

Dividend payable

2,484

2,556

*

Other payables

50,487

33,380

15,862

24,375

405,309

285,394

Bonus and welfare fund (i)

130

ANNUAL REPORT 2016 www.eximbank.com.vn


(i)

Movements in bonus and welfare fund during the year were as follows: Unit: VND million 2016

2015

24,375

33,327

-

15,000

Utilisation during the year

(8,513)

(23,952)

Closing balance

15,862

24,375

Opening balance Appropriation from profit after tax during the year (Note 21)

20.

Tình hình thực hiện nghĩa vụ đối với Ngân sách Nhà nước Unit: VND million 2016

Opening balance

Movements during the year

Closing balance

Incurred

Paid

(129,561)

81,698

(2,767)

(50,630)

Value added tax

9,309

70,688

(70,379)

9,618

Personal income tax

6,419

49,694

(49,819)

6,294

Foreign contractor tax

-

9,475

(9,475)

-

Other taxes

-

6,429

(6,429)

-

(113,833)

217,984

(138,869)

(34,718)

Corporate income tax

Unit: VND million 2015

Opening balance

Movements during the year

Closing balance

Incurred

Paid

(128,948)

20,828

(21,441)

(129,561)

Value added tax

8,496

76,882

(76,069)

9,309

Personal income tax

3,958

62,045

(59,584)

6,419

Foreign contractor tax

-

3,769

(3,769)

-

Other taxes

-

6,062

(6,062)

-

(116,494)

169,586

(166,925)

(113,833)

Corporate income tax

CONSOLIDATED FINANCIAL STATEMENTS

131


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

Form B05/TCTD-HN

21. Equity (a)

Statement of changes in equity

Charter capital

Capital for construction, purchases of fixed assets

Share premium

12,355,229

15,396

156,322

Net profit for the year

-

-

-

Adjustments for reserves of previous year

-

-

-

Appropriation to statutory reserves for current year

-

-

-

Appropriation to bonus and welfare fund

-

-

-

12,355,229

15,396

156,322

Net profit for the year

-

-

-

Appropriation to statutory reserves for current year

-

-

-

Utilisation of funds

-

-

-

Reversal of reserves appropriated in previous years (*)

-

-

-

Other movements

-

-

-

12,355,229

15,396

156,322

Balance at 1 January 2015

Balance at 1 January 2016

Balance at 31 December 2016

(*) This is the reversal of statutory reserves relating the profit from sales of certain fixed assets from the Group to Exim Land Corporation during years from 2010 to 2013 which was retrospectively adjusted in accordance with the Inspection Conclusion dated 19 October 2015 issued by the SBV.

(b)

Charter capital Unit: VND million 31/12/2016

Authorised charter capital

31/12/2015

Number of shares

Par value

Number of shares

Par value

1,235,522,904

12,355,229

1,235,522,904

12,355,229

1,235,522,904

12,355,229

1,235,522,904

12,355,229

(6,090,000)

(60,900)

(6,090,000)

(60,900)

1,229,432,904

12,294,329

1,229,432,904

12,294,329

Issued share capital Ordinary shares Treasury shares Ordinary shares Shares in circulation Ordinary shares

All of to of

132

ordinary shares have a par value of VND10,000. Each share is shareholders of the Bank. Shareholders are entitled to receive time. All ordinary shares are ranked equally with regard to the shares bought back by the Bank, all rights are suspended

ANNUAL REPORT 2016 www.eximbank.com.vn

entitled to one vote at meetings dividends as declared from time Bankâ&#x20AC;&#x2122;s residual assets. In respect until those shares are reissued.


Unit: VND million

22.

Treasury shares

Reserve to supplement charter capital

Financial reserve

Investment and development fund

Accumulated losses

Total

(78,273)

514,704

990,583

326

(834,560)

13,119,727

-

-

-

-

39,994

39,994

-

(32)

(65)

-

97

-

-

2,666

5,334

-

(8,000)

-

-

-

-

-

(15,000)

(15,000)

(78,273)

517,338

995,852

326

(817,469)

13,144,721

-

-

-

-

308,932

308,932

-

15,371

30,741

-

(46,112)

-

-

-

(5,225)

-

-

(5,225)

-

(31,195)

(60,354)

-

91,549

-

-

-

-

-

(9)

(9)

(78,273)

501,514

961,014

326

(463,109)

13,448,419

Net interest and similar income Unit: VND million 2016

2015

6,887,042

6,669,181

105,716

350,262

1,198,748

1,441,696

Interest and similar income from *

Loans and advances to customers and other credit institutions

*

Deposits with other credit institutions

*

Investment securities

*

Guarantee services

91,519

111,129

*

Other income from credit activities

27,548

28,916

8,310,573

8,601,184

(4,802,285)

(4,707,171)

(27,901)

(93,702)

(390,862)

(375,001)

(7,446)

(27,620)

(5,228,494)

(5,203,494)

3,082,079

3,397,690

Interest and similar expenses on *

Deposits from customers and other credit institutions

*

Borrowings from other credit institutions

*

Certificates of deposit

*

Other expenses on credit activities

Net interest income

CONSOLIDATED FINANCIAL STATEMENTS

133


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

23.

Form B05/TCTD-HN

Net fees and commission income Unit: VND million 2016

2015

Fees and commission income *

Settlement services

493,489

476,699

*

Cashiering services

42,326

33,082

*

Other services

75,132

57,910

610,947

567,691

Fees and commission expenses *

Settlement and cashiering services

(219,644)

(204,878)

*

Postage and telecommunications

(38,260)

(35,834)

*

Cash handling

(7,294)

(6,766)

*

Agency commission

(12,583)

(12,044)

*

Other services

(33,314)

(16,128)

(311,095)

(275,650)

299,852

292,041

Net fees and commission income

24.

Net gain from trading of foreign currencies Unit: VND million 2016

2015

1,296,010

1,318,090

Gain from trading of foreign currencies from *

Spot contracts

*

Gold trading

330,741

204,029

*

Currency derivatives

289,365

510,436

1,916,116

2,032,555

(1,034,974)

(1,071,600)

Loss from trading of foreign currencies on *

Spot contracts

*

Gold trading

(278,021)

(209,848)

*

Currency derivatives

(343,282)

(688,392)

(1,656,277)

(1,969,840)

259,839

62,715

Net gain from trading of foreign currencies

134

ANNUAL REPORT 2016 www.eximbank.com.vn


25.

Net other income

Unit: VND million 2016

2015

Other income *

Collections of bad debts previously written-off

57,777

66,356

*

Proceeds from disposals of land use rights and other fixed assets

81,027

305,106

*

Other income

3,088

10,070

141,892

381,532

(71,154)

(294,910)

(2,868)

(1,480)

(74,022)

(296,390)

67,870

85,142

Other expenses *

Net book value of land use rights and other fixed assets disposed

*

Other expenses

Net other income

26.

Gain/(loss) from capital contribution, share purchase Unit: VND million 2016

2015

345

2,308

-

26

345

2,282

(80,554)

-

-

2,175

Reversal of allowance for diminution in the value of long-term investments (Note 11)

85,706

1,072

Allowance for diminution in the value of long-term investments (Note 11)

(4,952)

(9,617)

545

(4,062)

Cổ tức nhận được/lợi nhuận được chia trong năm từ: *

Available-for-sale equity securities

*

Capital contribution, long-term investments

Loss from disposals of other long-term investments Share of profit under equity method

CONSOLIDATED FINANCIAL STATEMENTS

135


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

27.

Form B05/TCTD-HN

Operating expenses Unit: VND million

1. Personnel expense:

2016

2015

1,172,904

1,148,906

1,004,504

1,002,325

In which: *

Salary and allowances

*

Salary related contribution

79,362

73,544

*

Meal allowances

65,828

62,881

*

Health care

4,764

5,316

*

Other allowances

5,079

4,415

*

Uniform and labour protection instruments

13,367

425

483,102

499,114

2. Asset expenditure: In which: *

Rental

199,857

200,207

*

Depreciation of fixed assets

166,208

177,270

*

Repair and maintenance

82,371

77,361

*

Tools and supplies

32,293

41,802

*

Insurance fee

2,373

2,474

3. Insurance for customer deposits

96,394

82,193

4. Meeting and conference expenses

72,192

71,147

5. Document and advertisement expenses

54,832

96,354

6. Utilities expenses

50,424

47,020

7. Provision expenses

43,774

45,500

8. Materials and printing expenses

36,248

40,367

9. Travelling expenses

18,901

23,579

10. Other taxes and fees

15,428

7,882

11. Professional fees

10,813

15,017

12. Postage and telecommunication expenses

10,181

10,948

13. Documents and newspapers

5,867

7,515

14. Training expenses

3,565

3,995

15. Inspection and examination expenses

1,752

2,248

178,837

202,769

2,255,214

2,304,554

16. Others

136

ANNUAL REPORT 2016 www.eximbank.com.vn


28.

Allowance expenses for credit losses Unit: VND million 2016

2015

Allowance for credit losses on deposits with and loans to other credit institutions (Note 6)

15,550

95,000

Allowance (reversed)/made for general allowance for loans and advances to customers (Note 9(i))

(8,677)

10,168

Specific allowance made for credit losses on loans and advances to customers (Note 9(ii))

687,862

539,640

Reversal of allowance for general allowance for credit losses on held-to-maturity securities (Note 10(ii))

(27,059)

(6,203)

Allowance for special bonds (Note 10(iii))

474,543

803,919

Reversal of allowance for special bonds (Note10(iii))

(53,153)

(8,537)

1,089,066

1,433,987

29.

Corporate income tax

(a)

Recognised in the consolidated statement of income Unit: VND million

Current tax expense

2016

2015

81,698

20,828

81,698

20,828

Deferred tax expense Corporate income tax expense

(b)

Reconciliation of effective tax rate Unit: VND million

Profit before tax

2016

2015

390,630

60,822

Adjustments: *

Tax exempt income (dividends)

-

(1,932)

*

Profit share from associates under equity method

-

(2,175)

*

Allowance for investments in associates for consolidation purpose

-

11,159

*

Non-deductible expenses

17,536

22,598

408,166

90,472

81,328

20,645

370

183

81,698

20,828

Taxable income Corporate income tax expense during the year Under provision in prior years Corporate income tax expense

CONSOLIDATED FINANCIAL STATEMENTS

137


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

29.

Corporate income tax (cont.)

(c)

Applicable tax rates

Form B05/TCTD-HN

The corporate income tax rate applicable to the Bank is 20% (2015: 22%). Eximbank Asset Management Company has to pay income tax at the rate of 20% of taxable profits for the years ended 31 Deecember 2016 và 2015 because the Company’s revenue is less than VND20 billion in accordance with Circular No. 78/2014/TT-BTC dated 18 June 2014 issued by the Ministry of Finance. The corporate income tax computation is subject to the review and approval of tax authorities.

30.

Earnings per share

(a)

Basic earnings per share

The calculation of basic earnings per share for the year ended 31 December 2016 was based on profit attributable to ordinary shareholders of the Bank amounting to VND308,932 million (2015: VND39,994 million) and a weighted average number of ordinary shares outstanding of 1,229,432,904 (2015: 1,229,432,904), calculated as follows: (i)

Net profit attributable to ordinary shareholders Unit: VND million

Net profit attributable to ordinary shareholders (ii)

2016

2015

308,932

39,994

Weighted average number of ordinary shares Unit: share

Weighted average number of ordinary shares during the year

(iii)

2016

2015

1,229,432,904

1,229,432,904

Basic earnings per share Unit: VND

Basic earnings per share (b)

2016

2015

251

33

Diluted earnings per share

As at 31 December 2016 và 2015, the Bank did not have any dilutive potential ordinary shares. Accordingly, the requirement of presentation of diluted earnings per share is not applicable.

138

ANNUAL REPORT 2016 www.eximbank.com.vn


31.

Cash and cash equivalents Unit: VND million

32.

31/12/2016

31/12/2015

Cash on hand, gold

2,020,060

2,040,749

Balances with the SBV

3,765,279

2,716,264

Deposits with and loans to other credit institutions with original term to maturity of not more than three months

8,281,291

7,817,724

14,066,630

12,574,737

Employeesâ&#x20AC;&#x2122; benefits Unit: VND million 2016

2015

6,010

6,046

1. Salary

1,004,504

1,002,325

2. Bonus

8,170

10,865

65,828

62,881

1,078,502

1,076,071

Average monthly salary/employee

14

14

Average monthly income/employee

15

15

Total average number of employees during the year Employeesâ&#x20AC;&#x2122; remunerations

3. Other income 4. Total income (1+2+3)

33.

Type and value of collaterals received from customers Unit: VND million 31/12/2016

31/12/2015

112,791,441

109,857,818

Machinery and equipment

15,226,619

15,567,144

Shares and valuable papers

14,982,604

20,909,487

705,539

553,676

28,259,473

25,603,203

171,965,676

172,491,328

Real estates

Inventories Other assets

Except for the low-value collaterals being valued by the branches, the collaterals are valued by the Asset Valuation Center of the Bank. For the collaterals (i) with value of VND50 billion or more for loans and advances to related parties or other parties subject to credit restriction under Article 127 of Law on Credit Institutions, or (ii) with value of VND200 billion or more, the Group uses the assets revaluation services of independent revaluation organisations approved by the Chief Executive Officer of the Bank.

CONSOLIDATED FINANCIAL STATEMENTS

139


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

34.

Form B05/TCTD-HN

Contingent liabilities and commitments Unit: VND million 31/12/2016 Contractual amount - gross

Margin deposits

Contractual amount - net

Contractual amount - gross

Margin deposits

Contractual amount - net

37,181

-

37,181

36,219

-

36,219

- 30,121,833

32,350,457

Lending guarantees Foreign exchange commitments

31/12/2015

30,121,833

- 32,350,457

In which: *

Purchase commitments of foreign currencies

*

Sale commitments of foreign currencies

*

Commitments on currency swap transactions

2,265,219

-

2,265,219

153,212

-

153,212

648,175

-

648,175

358,369

-

358,369

- 27,208,439

31,838,876

27,208,439

Letters of credit

2,610,340

(162,468)

2,447,872

4,047,921

(190,929)

3,856,992

Other guarantees

2,943,896

(207,917)

2,735,979

3,228,650

(159,721)

3,068,929

165,441

-

165,441

163,400

-

163,400

(370,385) 35,508,306

39,826,647

Other commitments

35,878,691

35.

- 31,838,876

(350,650) 39,475,997

Significant transactions with related parties At the year-end and during the year, there were the following significant balances and transactions with related parties: Unit: VND million Balances at the year-end

31/12/2016

31/12/2015

Receivables/(Payables) Major shareholders

Deposits from major shareholders Borrowings from major shareholders Deposits with major shareholders

(1,830,566)

(1,757,538)

(454,000)

(112,100)

736,132

1,759,491

(264,466)

(58,414)

(6,873)

(7,994)

156,785

257

1,495

-

Other related parties (*)

Deposits from other related parties Interest payable to other related parties Loans to other related parties Interest receivable from other related parties

140

ANNUAL REPORT 2016 www.eximbank.com.vn


Unit: VND million Transactions during the year

2016

2015

Income/(expense) Major shareholders

Interest income

902

946

(14,533)

(29,935)

Interest income

3,748

29

Interest expense

(6,440)

(2,323)

Remunerations for members of the Board of Directors

-

(17,747)

Remunerations for members of the Board of Supervisors

-

(7,021)

(40,560)

(48,858)

Interest expense Other related parties (*)

Salaries and allowances for members of the Board of Management

(*) Other related parties comprise key management personnel including members of the Board of Diretors, members of the Board of Management, members of the Board of Supervisors, and close members of the family of these individuals and entities which these individuals directly or indirectly hold significant voting right or have significant influence over the Group.

36.

Concentration of assets, liabilities and off-balance sheet commitments by geographical area Unit: VND million As at 31 December 2016

Loans and advances to customers - gross

Domestic

Deposits from customers

86,891,327 101,104,909

Overseas

-

Capital Deposits Deposits Contingent contribution, with and and Derivatives Valuable liabilities Investment long-term loans to borrowings (Total papers and credit securities investments other credit from other contractual issued commitments - gross - gross institutions credit value) - gross - gross institutions

3,000,000

1,246,585

-

86,891,327 102,351,494

3,000,000

5,589,633 21,608,219

1,937,865

7,123,099

5,235,835

8,896,857

-

-

1,268,742

1,248,500

1,853,797

5,591,417 21,608,219

1,937,865

8,391,841

6,484,335 10,750,654

1,784

Unit: VND million As at 31 December 2015 Loans and advances to Deposits from customers customers - gross

Deposits Deposits Contingent Capital with and and Derivatives Valuable liabilities Investment contribution, loans to borrowings (Total papers and credit securities long-term other credit from other contractual issued commitments - gross investments institutions credit value) - gross - gross - gross institutions

Domestic

84,759,792

97,145,933

3,000,392

Overseas

-

1,284,609

-

84,759,792

98,430,542

3,000,392

7,309,487 20,135,636

2,031,645

6,246,195

-

-

1,682,079

7,312,790 20,135,636

2,031,645

7,928,274

3,303

7,260,717 18,362,454 672,600

1,389,716

7,933,317 19,752,170

CONSOLIDATED FINANCIAL STATEMENTS

141


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

37.

Financial risk management

(a)

Financial risk management

Form B05/TCTD-HN

(i) Overview

Risks are inherent in the Group’s activities and are managed through a process of ongoing identification, measurement and monitoring, subject to risk limits and other controls. This process of risk management is critical to the Group’s continuing profitability and each individual within the Group is accountable for the risk prevention relating to his or her responsibilities. The Group is exposed to such types of risk as credit risk, liquidity risk and market risk (then being classified into business and non-business risks). The Group are also subject to various operational risks. The independent risk control process does not include business risks such as changes in the environment, technology and industry. The Group’s policy is to monitor those business risks through the Group’s strategic planning process. (ii)

Risk management framework Risk management structure

Risk management structure of the Group includes Board of Directors, Risk Management Committee, Board of Management, Heads of business units and departments responsible for risk management at the Head Office of the Bank. Board of Directors

The Board of Directors approves risk management policy and monitors the implementation of risk prevention measures of the Group. Risk Management Committee

Risk Management Committee consults the Board of Directors in the promulgation of procedures and policies under authority of the Board of Directors relating to risk management in the Group’s activities. Risk Management Committee analyses and provides warnings on the safety level of the Group against potential risks that may affect the Group’s operations and preventive measures in the short-term as well as long-term. Risk Management Committee reviews and evaluates the appropriateness and effectiveness of the risk management of procedures and policies of the Group to make recommendations to the Board of Directors on the improvement of procedures, policies and operations. Board of Supervisors

The Board of Supervisors has the responsibility to monitor the overall risk management process within the Group. Internal Audit

According to the annual internal audit plan, business processes throughout the Group are audited by the internal audit function, which examines both the adequacy of the procedures and the Group’s compliance with the procedures. Internal Audit discusses the results of all assessments with the Board of Management, and reports its findings and recommendations to the Board of Supervisors.

142

ANNUAL REPORT 2016 www.eximbank.com.vn


Risk measurement and reporting systems

The Group’s risks are measured using a method which reflects both the expected loss likely to arise in normal circumstances and unexpected losses, which are an estimate of the ultimate actual loss based on statistical models. Monitoring and controlling risks are primarily carried out based on limits established by the Group in compliance with the SBV’s regulations on safety. These limits reflect the business strategy and market environment of the Group as well as the level of risk that the Group are willing to accept. Information compiled from all business activities is examined and processed in order to analyse, control and early identify risks. This information is presented and explained to the Board of Directors, Board of Supervisors, Board of Management, and Departments’ Heads. The report includes aggregate credit exposure, credit metric forecasts, limit exceptions, liquidity ratios and risk profile changes. The Bank’s Management assesses the appropriateness of the allowance for credit losses on a quarterly basis. The Bank’s Management receives a comprehensive risk report quarterly which is designed to provide all the necessary information to assess and conclude on the risks of the Group. For all levels throughout the Group, specifically tailored risk reports are prepared and distributed in order to ensure that all business departments have access to extensive, necessary and up-to-date information. Risk mitigation

The Group actively uses collaterals to reduce its exposure to credit risk. Risk concentration

Risk concentrations arise when a number of customers of the Group are engaged in similar business activities, or activities in the same geographic area, or have similar economic features that would affect the group of customers’ payment obligations or payment receipt rights when due under changes in economic, political or other conditions. These above concentrations indicate the level of sensitivity of the Group’s performance to the developments of a particular industry or geographic area. In order to avoid concentrations of risk, the Group’s policies and procedures include specific guidelines to focus on maintaining a diversified portfolio. Identified concentrations of credit risk are controlled and managed accordingly. Selective risk hedging methods are used within the Group in respect of the industries and other related factors. (b)

Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk is related to all financial products: all the items recognised in the consolidated balance sheet such as deposits, loans, overdrafts, bonds, and other assets; all items are recognised in off-balance sheet such as derivative instruments, letters of credit and guarantees.

CONSOLIDATED FINANCIAL STATEMENTS

143


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

37.

Financial risk management (cont.)

(b)

Credit risk (cont.)

Form B05/TCTD-HN

Credit risk management

The Group creates the credit function structure based on control and balance system, business units are separated completely from the credit approval unit. Except for delegated authority to Branch Directors in approving small value and low risk transactions, credit approval is centralised. Policies for significant credit risk are developed and approved by the Board of Directors. The Group has established credit risk management and control system, as follows: ™™

Business units are separated completely with the risk management, collateral valuation and credit approval units.

™™

Business units propose credit facility and perform initial collateral valuations.

™™

Risk management units are independent from units proposing initially credit facility and perform review and evaluation the proposal of business units.

™™

Except for the approvals for small and low risk transactions under authorised limit of branch director, the credit approval authority is centralised at the Head Office. All policies and relevant credit risk management regulations are approved accordingly by the Board of Directors and Board of Management, including: *

Credit Policy;

*

Regulation on debt classification, allowance for credit losses and utilisation of allowance for credit losses;

*

Regulation on collaterals and valuation of collaterals;

*

Regulation on the internal credit rating system;

*

Guidance on the credit limit for counterparty;

*

Credit procedures;

*

Regulation on procedures and content of reviewing, before, during, and after credit extension; and

*

Regulation on operations, functions and responsibilities of the Risk Handling Committee.

™™

Risk management units send periodic risk reports to the Board of Management, Risk Management Committee, the Board of Directors, this risk report includes loan groups credit growth, credit quality, credit distribution according to the new credit risk rating system, allowance for credit losses, problematic loans, customer review monitoring, loans by sector, loan groups and credit concentration.

™™

Internal audit conducts audit and regular examination to ensure compliance and the effectiveness of policies and business procedures.

Collaterals

Collaterals are valued by an unit independent from the business units based on the market value at valuation date. The collateral valuation is regularly updated. The main types of collaterals obtained are real estates, machinery and equipment, inventories and valuable papers. Guidance for valuation of movable assets and real estates is being reviewed and updated to comply with the regulations of the SBV. Commitments and guarantees

To meet the financial needs of customers, the Group enters into various irrevocable commitments and contingent liabilities. Commitments and guarantees are also subject credit risk reclasification.

144

ANNUAL REPORT 2016 www.eximbank.com.vn


Credit risk concentration

The level of credit risk concentration of the Group is managed by customer, according to the geographical and business sector. Not considering collaterals, the Group’s maximum exposure to credit risk at the reporting date is as follows: Unit: VND million 31/12/2016

31/12/2015

Balances with the State Bank of Vietnam

3,765,279

2,716,264

Deposits with and loans to other credit institutions – gross (i)

8,391,841

7,928,274

Loans and receivables

Loans and advances to customers – gross (ii)

86,891,327

84,759,792

Receivables - gross

573,792

638,927

Interest and fees receivable

840,414

992,436

100,462,653

97,035,693

9,354,769

3,922,512

12,219,500

16,178,452

21,574,269

20,100,964

Letters of credit

2,610,340

4,047,921

Other guarantees

2,981,077

3,264,869

5,591,417

7,312,790

127,628,339

124,449,447

Investment securities – gross (iii)

Available-for-sale debt securities Held-to-maturity securities

Credit commitments – gross

(i)

Deposits with and loans to other credit institutions

Deposits with and loans to other credit institutions of the Group neither past due nor impaired are mainly held with well-known financial institutions. The Bank’s Board of Management does not foresee any significant credit risk from these deposits and loans and does not expect that these financial institutions may default and cause losses to the Group. (ii)

Loans and advances to customers

Loans and advances to customers that are neither past due nor impaired are mostly from customers with good payment records with the Group. (iii)

Investment securities

The Group limits its exposure to credit risk by investing only in government bonds, bonds issued by credit institutions, bonds issued by listed entities or entities with shares traded in UPCoM market. The Bank’s Board of Management does not expect any significant financial losses that may arise from investment securities.

CONSOLIDATED FINANCIAL STATEMENTS

145


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

37.

Financial risk management (cont.)

(b)

Credit risk (cont.)

Form B05/TCTD-HN

An aging analysis of financial assets that are past due but not impaired at the reporting date is as follows: Unit: VND million As at 31 December 2016

Overdue From 10 to 90 days

From 91 to From 181 to 180 days 360 days

Over 360 days

Total

365,124

509,475

Over 360 days

Total

Loans and receivables

Loans and advances to customers – gross

79,863

25,491

As at 31 December 2015

38,997 Overdue

From 10 to 90 days

From 91 to From 181 to 180 days 360 days

Loans and receivables

Deposits with and loans to other credit institutions – gross Loans and advances to customers – gross

-

-

15,550

-

15,550

100,797

21,427

26,335

406,679

555,238

100,797

21,427

41,885

406,679

570,788

An aging analysis of financial assets that are past due and impaired at the reporting date is as follows: Unit: VND million As at 31 December 2016

Overdue From 10 to 90 days

From 91 to From 181 to 180 days 360 days

Over 360 days

Total

Loans and receivables

Deposits with and loans to other credit institutions – gross Loans and advances to customers – gross Other assets – gross

-

-

-

110,550

110,550

331,659 1,044,497

318,928

767,111

2,462,195

-

160

49,615

49,775

331,659 1,044,497

319,088

927,276

2,622,520

-

Unit: VND million As at 31 December 2015

Overdue From 10 to 90 days

From 91 to From 181 to 180 days 360 days

Over 360 days

Total

Loans and receivables

Deposits with and loans to other credit institutions – gross Loans and advances to customers – gross Other assets – gross

146

ANNUAL REPORT 2016 www.eximbank.com.vn

-

-

-

95,000

95,000

393,088

160,565

564,981

395,485

1,514,119

40

173

53

93,365

93,631

393,128

160,738

565,034

583,850

1,702,750


Refer to Note 33 for types and values of collaterals received from customers. The Group has not determined fair values of the collaterals for overdue and impaired financial assets for disclosure in these consolidated financial statements because there is currently no guidance on determination of fair value under Vietnamese Accounting Standards, the Vietnamese Accounting System for Credit Institutions stipulated by the SBV in case quoted price in the market is not available. The fair values of these collaterals may differ from their carrying amounts. (c)

Market risks

Market risks are the risks that the fair value or future cash flows of a financial instrument will fluctuate because of movements in market prices. Market risks arise from open positions in interest rate, currency and equity instruments, all of which are exposed to general and specific market movements and changes in the level of volatility of market rates or prices such as interest rates, foreign exchange rates and share prices. (i)

Interest rate risk

Interest rate risk is the risk that fair value or cash flows of financial instruments will fluctuate because of movements in the market interest rate. The Group will be exposed to the interest rate risk when there is a gap between maturity date or interest repricing date of assets, liabilities and off-balance sheet commitments in a specific period of time. The Group manages this risk by matching the dates of interest rate repricing of assets and liabilities. Analysis of assets and liabilities based on actual interest rate repricing term The actual interest rate repricing term is the remaining period from the reporting date to the next interest rate repricing date or the maturity date of assets and liabilities whichever is earlier. The following assumptions and conditions have been adopted in the analysis of actual interest rate repricing terms of the assets and liabilities of the Group: ™™

Cash, gold; derivatives and other financial assets; long-term investments; other assets (including fixed assets and other assets) and other liabilities are classified as non-interest bearing items.

™™

Balances with the State Bank of Vietnam are considered as current, interest rate repricing term is therefore considered within 1 month.

™™

The actual interest rate repricing term of debt securities are determined based on the actual maturity term of each type of securities at the reporting date.

™™

The actual interest rate repricing term of deposits with and loans to other credit institutions; loans and advances to customers; deposits and borrowings from other credit institutions and deposits from customers are determined as follows:

™™

*

Items which bear fixed interest rate for the entire contractual term: the actual interest rate repricing term is determined based on the remaining contractual term calculated from the reporting date.

*

Items which bear floating interest rate: the actual interest rate repricing term is determined based on the next interest rate repricing date subsequent to the reporting date.

The actual interest rate repricing term of valuable papers issued is determined based on the remaining maturity term of each valuable paper.

CONSOLIDATED FINANCIAL STATEMENTS

147


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

37.

Financial risk management (cont.)

(c)

Market risks (cont.)

Form B05/TCTD-HN

The following tables show the Group’s assets and liabilities categorised by the earlier of interest rate repricing date and contractual maturity date at the end of the annual accounting period: As at 31 December 2016

Overdue

Free of interest Less than 1 month

Assets

Cash on hand, gold

-

2,020,060

-

Balances with the SBV

-

-

3,765,279

110,550

-

7,628,491

-

9,841

-

2,971,670

-

39,120,151

Investment securities – gross

-

7,063,450

-

Capital contribution, long-term investments – gross

-

1,937,865

-

Fixed assets

-

3,367,929

-

49,775

3,435,779

-

3,131,995

17,834,924

50,513,921

Borrowings from the SBV

-

-

1,048,581

Deposits and borrowings from other credit institutions

-

-

2,716,135

Deposits from customers

-

-

46,472,362

Valuable papers issued

-

-

-

Other liabilities

-

2,405,588

-

Total liabilities (2)

-

2,405,588

50,237,078

3,131,995

15,429,336

276,843

-

-

-

3,131,995

15,429,336

276,843

Deposits with and loans to other credit institutions – gross Derivatives and other financial assets Loans and advances to customers – gross (*)

Other assets – gross Total assets (1) Liabilities

Interest sensitivity gap of balance sheet items [(3)=(1)-(2)] Interest sensitivity gap of off-balance sheet items (4) Total interest sensitivity gap [(5)=(3)+(4)]

148

ANNUAL REPORT 2016 www.eximbank.com.vn


Unit: VND million From 1 to 3 months

From over 3 to 6 months

From over 6 to 12 months

From over 1 to 5 years

Over 5 years

Total

-

-

-

-

-

2,020,060

-

-

-

-

-

3,765,279

652,800

-

-

-

-

8,391,841

-

-

-

-

-

9,841

16,871,273

14,202,055

11,531,813

2,146,105

48,260

86,891,327

250,828

1,719,251

3,123,025

9,376,665

75,000

21,608,219

-

-

-

-

-

1,937,865

-

-

-

-

-

3,367,929

-

-

-

-

-

3,485,554

17,774,901

15,921,306

14,654,838

11,522,770

123,260

131,477,915

24,384

15,182

23,525

-

-

1,111,672

3,768,200

-

-

-

-

6,484,335

19,926,252

17,265,919

14,473,416

4,213,041

504

102,351,494

-

-

-

3,000,000

-

3,000,000

-

-

-

-

-

2,405,588

23,718,836

17,281,101

14,496,941

7,213,041

504

115,353,089

(5,943,935)

(1,359,795)

157,897

4,309,729

122,756

16,124,826

-

-

-

-

-

-

(5,943,935)

(1,359,795)

157,897

4,309,729

122,756

16,124,826

CONSOLIDATED FINANCIAL STATEMENTS

149


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

37.

Financial risk management (cont.)

(c)

Market risks (cont.)

Form B05/TCTD-HN

As at 31 December 2015

Overdue

Free of interest Less than 1 month

Assets

Cash on hand, gold

-

2,040,749

-

Balances with the SBV

-

-

2,716,264

110,550

-

7,772,884

-

30,797

-

2,069,357

-

39,810,005

Investment securities – gross

-

6,265,082

2,373,041

Capital contribution, long-term investments – gross

-

2,031,645

-

Fixed assets

-

4,740,627

-

93,631

2,522,528

-

2,273,538

17,631,428

52,672,194

Borrowings from the SBV

-

-

518,720

Deposits and borrowings from other credit institutions

-

-

7,552,017

Deposits from customers

-

-

50,271,102

Valuable papers issued

-

-

392

Other liabilities

-

1,795,758

-

Total liabilities (2)

-

1,795,758

58,342,231

2,273,538

15,835,670

(5,670,037)

-

-

-

2,273,538

15,835,670

(5,670,037)

Deposits with and loans to other credit institutions – gross Derivatives and other financial assets Loans and advances to customers – gross (*)

Other assets – gross Total assets (1) Liabilities

Interest sensitivity gap of balance sheet items [(3)=(1)-(2)] Interest sensitivity gap of off-balance sheet items (4) Total interest sensitivity gap [(5)=(3)+(4)]

(*) These amounts are calculated on the customer basis instead of loan basis.

150

ANNUAL REPORT 2016 www.eximbank.com.vn


Unit: VND million From 1 to 3 months

From over 3 to 6 months

From over 6 to 12 months

From over 1 to 5 years

Over 5 years

Total

-

-

-

-

-

2,040,749

-

-

-

-

-

2,716,264

44,840

-

-

-

-

7,928,274

-

-

-

-

-

30,797

15,440,732

13,568,515

11,214,110

2,589,702

67,371

84,759,792

-

900,631

3,856,644

6,665,238

75,000

20,135,636

-

-

-

-

-

2,031,645

-

-

-

-

-

4,740,627

-

-

-

-

-

2,616,159

15,485,572

14,469,146

15,070,754

9,254,940

142,371

126,999,943

-

2,907

23,318

-

-

544,945

381,300

-

-

-

-

7,933,317

18,992,379

12,096,509

8,816,283

8,253,717

552

98,430,542

-

-

-

-

3,000,000

3,000,392

-

-

-

-

-

1,795,758

19,373,679

12,099,416

8,839,601

8,253,717

3,000,552

111,704,954

(3,888,107)

2,369,730

6,231,153

1,001,223

(2,858,181)

15,294,989

-

-

-

-

-

-

(3,888,107)

2,369,730

6,231,153

1,001,223

(2,858,181)

15,294,989

CONSOLIDATED FINANCIAL STATEMENTS

151


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

37.

Financial risk management (cont.)

(c)

Market risks (cont.)

Form B05/TCTD-HN

The following table shows the average actual interest rates of interest bearing financial instruments with different terms and currencies As at 31 December 2016

Overdue

Current

Less than 1 month

Assets

Balances with the SBV *

VND

-

0.60%

-

*

Foreign currencies

-

0.03%

-

Deposits with and loans to other credit institutions *

VND

-

-

4.71%

*

Foreign currencies

-

-

1.58%

10.22%

-

9.35%

5.93%

-

2.96%

-

-

-

-

-

3.50%

Loans and advances to customers *

VND

*

Foreign currencies

Investment securities *

VND

Liabilities

Borrowings from the SBV *

VND

Deposits and borrowings from other credit institutions *

VND

-

-

4.79%

*

Foreign currencies

-

-

1.51%

Deposits from customers *

VND

-

0.30%

5.17%

*

Foreign currencies

-

0.11%

0.03%

-

-

Valuable papers issued *

152

VND

ANNUAL REPORT 2016 www.eximbank.com.vn


From 1 to 3 months

From over 3 to 6 months

From over 6 to 12 months

From over 1 to 5 years

Over 5 years

-

-

-

-

-

-

-

-

-

-

5.26%

-

-

-

-

-

-

-

-

-

8.25%

8.71%

9.89%

8.94%

8.33%

3.32%

3.42%

1.83%

4.65%

-

6.12%

7.34%

6.38%

5.70%

7.46%

3.50%

3.50%

3.50%

-

-

-

-

-

-

-

1.75%

-

-

-

-

5.69%

7.02%

7.02%

7.26%

7.86%

0.05%

0.04%

0.04%

0.13%

-

-

-

-

13.25%

-

CONSOLIDATED FINANCIAL STATEMENTS

153


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

37.

Financial risk management (cont.)

(c)

Market risks (cont.)

Form B05/TCTD-HN

As at 31 December 2015

Overdue

Current

Less than 1 month

Assets

Balances with the SBV *

VND

-

0.60%

-

*

Foreign currencies

-

0.03%

-

0.00%

0.33%

5.12%

-

0.11%

0.11%

10.30%

-

9.12%

6.61%

-

4.61%

-

-

10.03%

Deposits with and loans to other credit institutions *

VND

*

Foreign currencies

Loans and advances to customers *

VND

*

Foreign currencies

Investment securities *

VND

Liabilities

Borrowings from the SBV *

VND

-

-

5.00%

*

Foreign currencies

-

-

-

Deposits and borrowings from other credit institutions *

VND

-

0.33%

5.00%

*

Foreign currencies

-

0.01%

0.65%

Deposits from customers *

VND

-

0.30%

4.98%

*

Foreign currencies

-

0.10%

0.18%

-

-

3.01%

Valuable papers issued *

VND

Interest rate sensitivity analysis

The Group did not perform the sensitivity analysis for interest rates as at 31 December 2016 and 2015 due to lack of input data and information. (ii)

Currency risk

Currency risk is the risk arising from changes in foreign exchange rates to VND, the Groupâ&#x20AC;&#x2122;s accounting currency, which may affect the value of the financial instruments or may cause volatility in the Groupâ&#x20AC;&#x2122;s earnings. The Group manages currency risk by setting limits on currency exposure. These limits include open position limit, open position limit for each currency. The main transactional currency of the Group is VND. Financial assets and liabilities of the Group are denominated mainly in VND, partially in USD, EUR and gold. The Group sets limits on position of each currency. The currency position is monitored daily to ensure that the currency position is within the set limit.

154

ANNUAL REPORT 2016 www.eximbank.com.vn


From 1 to 3 months

From over 3 to 6 months

From over 6 to 12 months

From over 1 to 5 years

Over 5 years

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1.00%

-

-

-

-

8.91%

9.20%

9.24%

8.83%

8.34%

3.63%

3.54%

3.04%

5.22%

-

-

10.90%

8.96%

7.70%

8.70%

-

3.50%

3.50%

-

-

-

2.33%

-

-

-

4.80%

-

-

-

-

1.57%

-

-

-

-

6.00%

6.28%

6.17%

6.82%

5.90%

0.28%

0.33%

0.41%

0.24%

-

-

-

-

-

12.50%

CONSOLIDATED FINANCIAL STATEMENTS

155


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

37.

Financial risk management (cont.)

(c)

Market risks (cont.)

Form B05/TCTD-HN

The followings are the significant exchange rates applied by the Group at the end of the annual accounting period: Exchange rate as at 31/12/2016

31/12/2015

USD/VND

22,700

22,420

EUR/VND

23,793

24,429

3,500,000

3,220,000

XAU/VND (one tenth of a tael) As at 31 December 2016

Unit: VND million VND

USD

Gold

EUR

Other currencies

Total

998,702

595,614

166,376

82,479

176,889

2,020,060

Balances with the SBV

3,058,005

707,274

-

-

-

3,765,279

Deposits with and loans to other credit institutions – gross

4,758,427 3,351,672

-

109,716

172,026

8,391,841

Derivatives and other financial assets

1,002,519 (1,668,878)

-

257,742

418,458

9,841

Loans and advances to customers – gross 77,246,364 9,548,794

56,205

26,195

13,769

86,891,327

Assets

Cash on hand, gold

Investment securities – gross

21,608,219

-

-

-

-

21,608,219

Capital contribution, long-term investments – gross

1,937,865

-

-

-

-

1,937,865

Fixed assets

3,367,929

-

-

-

-

3,367,929

Other assets – gross

3,458,799

26,127

-

-

628

3,485,554

117,436,829 12,560,603

222,581

476,132

781,770

131,477,915

-

-

-

-

1,111,672

876,140 5,608,050

-

104

41

6,484,335

93,429,607 7,701,911

-

470,931

749,045

102,351,494

Total assets (1) Liabilities and equity

Borrowings from the SBV Deposits and borrowings from other credit institutions Deposits from customers Valuable papers issued

3,000,000

-

-

-

-

3,000,000

Other liabilities

2,226,495

161,469

-

1,779

15,845

2,405,588

13,448,419

-

-

-

-

13,448,419

114,092,333 13,471,430

-

472,814

764,931

128,801,508

3,344,496 (910,827)

222,581

3,318

16,839

2,676,407

(1,620,978) 1,673,544

(40,110)

(3,569)

(12,821)

(3,934)

182,471

(251)

4,018

2,672,473

Equity Total liabilities and equity (2) FX position on-balance sheet [(3)=(1)-(2)] FX position off-balance sheet (4) FX position on and off-balance sheet [(5)=(3)+(4)]

156

1,111,672

ANNUAL REPORT 2016 www.eximbank.com.vn

1,723,518

762,717


As at 31 December 2015

Unit: VND million VND

USD

Gold

EUR

Other currencies

Total

846,541

518,760

252,049

68,506

354,893

2,040,749

Balances with the SBV

1,607,784

1,108,480

-

-

-

2,716,264

Deposits with and loans to other credit institutions – gross

3,515,358

3,789,064

-

289,292

334,560

7,928,274

Derivatives and other financial assets

(2,011,766)

1,334,500

-

169,397

538,666

30,797

Loans and advances to customers – gross

74,035,188 10,558,432

83,018

41,295

41,859

84,759,792

Investment securities – gross

20,135,636

-

-

-

-

20,135,636

Capital contribution, long-term investments – gross

2,031,645

-

-

-

-

2,031,645

Fixed assets

4,740,627

-

-

-

-

4,740,627

Other assets – gross

2,564,322

45,451

-

1,986

4,400

2,616,159

107,465,335 17,354,687

335,067

570,476

1,274,378

126,999,943

Assets

Cash on hand, gold

Total assets (1) Liabilities and equity

Borrowings from the SBV Deposits and borrowings from other credit institutions Deposits from customers

542,634

2,311

-

-

-

544,945

4,646,426

3,286,742

-

109

40

7,933,317

83,908,777 12,714,618

-

564,665

1,242,482

98,430,542

Valuable papers issued

3,000,122

270

-

-

-

3,000,392

Other liabilities

1,661,836

131,556

-

380

1,986

1,795,758

13,144,721

-

-

-

-

13,144,721

106,904,516 16,135,497

-

565,154

1,244,508

124,849,675

Equity Total liabilities and equity (2) FX position on-balance sheet [(3)=(1)-(2)]

560,819

1,219,190

335,067

5,322

29,870

2,150,268

FX position off-balance sheet (4)

206,423

(153,954)

(25,760)

855

(26,298)

1,266

FX position on and off-balance sheet [(5)=(3)+(4)]

767,242

1,065,236

309,307

6,177

3,572

2,151,534

CONSOLIDATED FINANCIAL STATEMENTS

157


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

37.

Financial risk management (cont.)

(c)

Market risks (cont.)

Form B05/TCTD-HN

Below is the analysis of impact to net profit of the Group after consideration the current foreign exchange rate and the fluctuations in the past as well as market expectation at the end of annual accounting period. Unit: VND million As at 31 December 2016

USD (strengthening by 1%) EUR (weakening by 3%) XAU (strengthening by 9%) As at 31 December 2015

USD (strengthening by 5%)

(iii)

Effect to net profit Increase/(decrease)

6,102 6 13,138

Unit: VND million Effect to net profit Increase/(decrease)

41,544

EUR (weakening by 6%)

(289)

XAU (weakening by 8%)

(19,301)

Equity price risk

Equity price risk is the risk that the market value of securities decreases due to changes in price of individual securities. Equity price risk derives from available-for-sale equity securities of the Group. Available-for-sale equity securities of the Group bear the equity price risk resulting from the uncertainties in fluctuation of equity price in the future of these securities. The Group manages the equity price risk by diversification and prudence in selection of investment securities within the approved limit. As at 31 December 2016 vĂ 2015, the impact of equity price risk of the Group is insignificant because the Group holds insignificant available-for-sale equity securities at the reporting date.

158

ANNUAL REPORT 2016 www.eximbank.com.vn


(d)

Liquidity risk

Liquidity risk is the risk that the Group has difficulties in performing obligations for financial liabilities at the maturity dates. To reduce the liquidity risk, the Group mobilises funds from various sources beside the basic capital resources of the Group and the Group should have flexible liquid asset management policies, monitor the future cash flows and daily liquidity. The Group also evaluates the expected cash flows and availability of current collateral assets in case of mobilising more capital. Liquidity risk is also limited by holding a large cash balance and cash equivalents under demand deposits with other credit institutions, balances with the SBV and term deposits with other credit institutions and valuable papers. Safety ratios that take into account risk factor are also used to manage liquidity risk. The maturity of assets and liabilities represents the remaining term of assets and liabilities from the reporting date to the maturity date specified in contracts or issuance provisions. The following assumptions and conditions are applied in analysing the maturity of assets and liabilities of the Group: ™™

Balances with the SBV is classified as demand deposits, in which compulsory reserve is included. The balance of compulsory reserve depends on elements and term of deposits from customers of the Group.

™™

The maturity of deposits with and loans to other credit institutions, derivatives and other financial assets and loans and advances to customers are determined based on the contractual maturity date. The actual maturity date can be changed as the loan contracts are extended.

™™

The maturity of investment securities is based on the maturity date of each securities.

™™

The maturity of capital contribution, long-term investments is categorised over 5 years because these investments do not have exact maturity date and the Group has intention to hold them for long-term.

™™

The maturity of fixed assets is determined by the remaining useful lives of assets.

™™

The maturity of deposits and borrowings from other credit institutions and deposits from customers is determined based on the characteristic of each item or the maturity date specified in the contracts. Demand deposits from other credit institutions and customers are performed as requests of customers and categorised as call deposits. The maturity period of borrowings and term deposits are determined based on contractual maturity date. In reality, the actual maturities of those liabilities may be longer than the original contractual terms due to rollover.

Below is the analysis of assets and liabilities of the Group classified into maturity groups based on the remaining terms from the reporting date to the maturity date. In reality, the maturity date of assets and liabilities might be different from the contractual ones, depending on the appendices to be signed.

CONSOLIDATED FINANCIAL STATEMENTS

159


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

37.

Financial risk management (cont.)

(d)

Liquidity risk (cont.)

Form B05/TCTD-HN

As at 31 December 2016

Overdue Overdue over 3 months

Overdue up to 3 months

Up to 1 month

Cash on hand, gold

-

-

2,020,060

Balances with the SBV

-

-

3,765,279

110,550

-

7,628,491

-

-

-

2,560,148

411,522

3,499,824

Investment securities – gross

-

-

1,270

Capital contribution, long-term investments – gross

-

-

-

Fixed assets

-

-

10,740

49,775

-

967,151

2,720,473

411,522

17,892,815

Borrowings from the SBV

-

-

1,048,581

Deposits and borrowings from other credit institutions

-

-

2,716,135

Deposits from customers

-

-

46,472,362

Valuable papers issued

-

-

-

Other liabilities

-

-

2,179,189

Total liabilities (2)

-

-

52,416,267

2,720,473

411,522

(34,523,452)

Assets

Deposits with and loans to other credit institutions – gross Derivatives and other financial assets Loans and advances to customers – gross (*)

Other assets – gross Total assets (1) Liabilities

Net liquidity gap [(3)=(1)-(2)]

160

ANNUAL REPORT 2016 www.eximbank.com.vn


Unit: VND million Current From over 1 to 3 months

From over 3 to 12 months

From over 1 to 5 years

Over 5 years

Total

-

-

-

-

2,020,060

-

-

-

-

3,765,279

652,800

-

-

-

8,391,841

9,841

-

-

-

9,841

11,014,281

19,459,125

15,819,722

34,126,705

86,891,327

250,832

2,827,276

17,953,841

575,000

21,608,219

-

-

-

1,937,865

1,937,865

4,174

55,479

237,722

3,059,814

3,367,929

135,047

714,841

1,618,740

-

3,485,554

12,066,975

23,056,721

35,630,025

39,699,384

131,477,915

24,384

38,707

-

-

1,111,672

3,768,200

-

-

-

6,484,335

19,926,252

31,739,335

4,213,041

504

102,351,494

-

-

3,000,000

-

3,000,000

27,425

82,365

116,609

-

2,405,588

23,746,261

31,860,407

7,329,650

504

115,353,089

(11,679,286)

(8,803,686)

28,300,375

39,698,880

16,124,826

CONSOLIDATED FINANCIAL STATEMENTS

161


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

37.

Financial risk management (cont.)

(d)

Liquidity risk (cont.)

Form B05/TCTD-HN

As at 31 December 2015

Overdue Overdue over 3 months

Overdue up to 3 months

Up to 1 month

Cash on hand, gold

-

-

2,040,749

Balances with the SBV

-

-

2,716,264

110,550

-

7,772,884

-

-

-

1,575,472

493,885

3,663,379

Investment securities – gross

-

-

52,033

Capital contribution, long-term investments – gross

-

-

-

Fixed assets

-

-

96

93,631

-

1,137,383

1,779,653

493,885

17,382,788

Borrowings from the SBV

-

-

518,720

Deposits and borrowings from other credit institutions

-

-

7,552,017

Deposits from customers

-

-

50,271,102

Valuable papers issued

-

-

392

Other liabilities

-

-

1,575,010

Total liabilities (2)

-

-

59,917,241

1,779,653

493,885

(42,534,453)

Assets

Deposits with and loans to other credit institutions – gross Derivatives and other financial assets Loans and advances to customers – gross (*)

Other assets – gross Total assets (1) Liabilities

Net liquidity gap [(3)=(1)-(2)]

162

ANNUAL REPORT 2016 www.eximbank.com.vn


Unit: VND million Current From over 1 to 3 months

From over 3 to 12 months

From over 1 to 5 years

Over 5 years

Total

-

-

-

-

2,040,749

-

-

-

-

2,716,264

44,840

-

-

-

7,928,274

30,797

-

-

-

30,797

8,338,881

19,523,189

17,099,354

34,065,632

84,759,792

-

2,780,275

16,695,648

607,680

20,135,636

-

-

-

2,031,645

2,031,645

178

29,680

240,751

4,469,922

4,740,627

12,683

789,040

583,422

-

2,616,159

8,427,379

23,122,184

34,619,175

41,174,879

126,999,943

-

26,225

-

-

544,945

381,300

-

-

-

7,933,317

18,992,379

20,912,792

8,253,717

552

98,430,542

-

-

-

3,000,000

3,000,392

24,375

81,495

114,878

-

1,795,758

19,398,054

21,020,512

8,368,595

3,000,552

111,704,954

(10,970,675)

2,101,672

26,250,580

38,174,327

15,294,989

CONSOLIDATED FINANCIAL STATEMENTS

163


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

(d)

Form B05/TCTD-HN

Fair value versus carrying amount

Fair value is the amount for which an asset could be exchanged, or a liability could be settled, between knowledgeable, willing parties in an armâ&#x20AC;&#x2122;s length transaction on the measurement date. The fair values of financial assets and financial liabilities, together with the carrying amounts shown in the consolidated balance sheet at the end of the annual accounting period, are as follows:

Unit: VND million

31/12/2016

31/12/2015

Carrying amount

Fair value

Carrying amount

Fair value

9,841

(*)

30,797

(*)

100,000 10,707,617

(*)

150,042 15,010,858

(*) (*)

3,765,279

3,765,279

2,716,264

2,716,264

8,281,291

(*)

7,833,274

(*)

85,824,814 567,767 840,414

(*) (*) (*)

83,889,887 632,927 992,436

(*) (*) (*)

6,432,211 33,570 2,922,558 1,856,808

6,565,945 33,570 (*) (*)

35,469 3,922,512 722 1,869,834

35,469 (*) (*) (*)

(1,111,672)

(*)

(544,945)

(*)

(6,484,335)

(*)

(7,933,317)

(*)

(102,351,494) (3,000,000) (2,000,279)

(*) (*) (*)

(98,430,542) ( 3,000,392) (1,510,364)

(*) (*) (*)

(373,535)

(*)

(244,937)

(*)

Categorised as financial assets at fair value through profit or loss:

Derivatives and other financial assets Categorised as held-to-maturity investments: * *

Government bonds without quoted prices Other held-to-maturity securities

Categorised as loans and receivables: * *

* * *

Balances with the SBV Deposits with and loans to other credit institutions Loans and advances to customers Receivables Interest and fees receivable

Categorised as available-for-sale financial assets: * * * * *

Government bonds with quoted prices Shares with quoted prices Government bonds without quoted prices Other available-for-sale securities Capital contribution, long-term investments

Categorised as financial liabilities carried at amortised cost:

*

Borrowings from the SBV Deposits and borrowings from other credit institutions Deposits from customers Valuable papers issued Interest and fees payable

*

Other liabilities

* *

* *

(*)

164

The Group has not determined fair values of these financial instruments for disclosure in these consolidated financial statements because there is no quoted price in the market for these financial instruments, and there is currently no guidance on determination of fair value using valuation techniques under Vietnamese Accounting Standards, the Vietnamese Accounting System for Credit Institutions stipulated by the SBV and relevant statutory requirements applicable to financial reporting. The fair values of these financial instruments may differ from their carrying amounts.

ANNUAL REPORT 2016 www.eximbank.com.vn


38.

Segment reporting

(a)

Primary segment reporting

Information on primary segment reporting by geographical areas of the Group is presented as following: Unit: VND million For the year ended 31 December 2016 The Northern Region

The Central The Southern Eliminations Region Region

Total

I. Income 1. Interest income Interest income from external customers Internal interest income 2. Fees and commission income 3. Income from other activities II. Expenses 1. Interest expense Interest expense for external customers Internal interest expense 2. Depreciation expenses 3. Operating expenses Operating profit before allowance expenses Allowance expenses Segment (loss)/profit before corporate income tax

1,120,645 927,025 71,276 32,841

(721,430) (974,072) (21,269) (322,286)

858,655 395,311 24,762 32,585

6,331,273 10,478,044 (11,800,380) 514,909 361,574 -

(320,328) (4,186,736) (721,107) (10,105,201) (13,151) (131,788) (169,761) (1,982,075)

8,310,573 610,947 427,000

11,800,380 -

(5,228,494) (166,208) (2,474,122)

112,730

86,966

1,280,000

-

1,479,696

(331,677)

(156,656)

(600,733)

-

(1,089,066)

(218,947)

(69,690)

679,267

-

390,630 Unit: VND million

As at 31 December 2016 The Northern Region

The Central The Southern Region Region

Eliminations

Total

Assets Cash on hand, gold

513,907

225,625

1,280,528

-

2,020,060

Fixed assets

31,046

10,758

3,326,125

-

3,367,929

Other assets

16,840,222

8,951,935

99,497,354

(1,875,992)

123,413,519

(6,746,371) (90,453,269)

109,767

(112,947,501)

Liabilities External payables

(15,857,628)

Internal payables

(1,287)

(1,630)

(10,081)

-

(12,998)

(291,760)

(139,250)

(2,772,805)

811,225

(2,392,590)

Other liabilities

CONSOLIDATED FINANCIAL STATEMENTS

165


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2016

38.

Segment reporting (cont.)

(a)

Primary segment reporting (cont.)

Form B05/TCTD-HN

Unit: VND million For the year ended 31 December 2015 The Northern Region

The Central The Southern Region Region

Eliminations

Total

I. Income 1. Interest income Interest income from external customers

1,080,525

815,229

6,705,430

-

8,601,184

Internal interest income

1,164,138

308,547

9,778,148 (11,250,833)

-

2. Fees and commission income

64,930

22,395

480,366

-

567,691

3. Income from other activities

40,674

21,079

385,238

-

446,991

(887,943)

(226,155)

(4,089,396)

-

(5,203,494)

(1,007,369)

(677,384)

(9,566,080)

11,250,833

-

(21,773)

(13,760)

(141,737)

-

(177,270)

(312,569)

(159,502)

(2,268,222)

-

(2,740,293)

120,613

90,449

1,283,747

-

1,494,809

Allowance expenses

(309,987)

(86,680)

(1,037,320)

-

(1,433,987)

Segment (loss)/profit before corporate income tax

(189,374)

3,769

246,427

II. Expenses 1. Interest expense Interest expense for external customers Internal interest expense 2. Depreciation expenses 3. Operating expenses Operating profit before allowance expenses

60,822

Unit: VND million As at 31 December 2015 The Northern Region

The Central The Southern Region Region

Eliminations

Total

Assets

447,887

243,846

1,349,016

-

2,040,749

Fixed assets

24,638

15,406

4,700,583

-

4,740,627

Other assets

14,822,650

9,672,127

95,435,881

(1,862,359)

118,068,299

(5,314,319) (88,474,440)

94,692

(109,909,196)

Cash on hand, gold

Liabilities External payables

(16,215,129)

Internal payables

(230)

-

(9,793)

-

(10,023)

(407,264)

(170,434)

(2,019,185)

811,148

(1,785,735)

Other liabilities

166

ANNUAL REPORT 2016 www.eximbank.com.vn


(b)

Secondary segment reporting

The Group primarily operates in one business segment which is commercial banking.

39. Commitments (a)

Capital expenditure commitments

At the end of the annual accounting period, the Group had the following outstanding capital commitments approved but not provided for in the consolidated balance sheet: Unit: VND million

Approved and contracted (b)

31/12/2016

31/12/2015

135,062

122,085

Lease commitments

At the end of the annual accounting period, the future minimum lease payments under non-cancellable operating leases were as follows: Unit: VND million 31/12/2016

31/12/2015

Within one year

184,257

159,062

Over one year to five years

382,034

337,312

28,655

30,915

594,946

527,289

More than five years

Prepared by

Nguyen Minh Thanh General Accountant

Reviewed by

Nguyen Ngoc Ha Chief Accountant

Legal Representative

Le Van Quyet

Chief Executive Officer

28 March 2017

SEPARATE FINANCIAL STATEMENTS are published on the bankâ&#x20AC;&#x2122;s website at: https://www.eximbank.com.vn/home/Static/baocaotaichinh.aspx

CONSOLIDATED FINANCIAL STATEMENTS

167


OPERATION NETWORK AS AT 31/3/2016

No. 1 2 3 4 5 6 7

Address

Ha Noi Branch

19 Tran Hung Dao, Phan Chu Trinh Ward, Hoan Kiem District, Hanoi City (Level 1+2) Building No. 76 Mai Hac De, Bui Thi Xuan Ward, Hai Ba Trung District, Hanoi City (Level 2+3) Building No. 134 Bach Mai Street, Cau Den Ward, Hai Ba Trung District, Hanoi City 18 Hang Than Street, Nguyen Trung Truc Ward, Ba Dinh District, Hanoi City 96 Yen Phu, Yen Phu Ward, Tay Ho Dist., Hanoi City 509B Lac Long Quan Street, Xuan La Ward, Tay Ho Dist., Hanoi City 15 Lieu Giai, Lieu Giai Ward, Ba Dinh District, Hanoi City (Levels 1-4) Building No. 2C Thai Phien Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi City Level 1 (lot No. 9) Building No. M3-M4, No. 91A Nguyen Chi Thanh, Lang Ha Ward, Dong Da District, Hanoi City (Levels 1 + 2) HAREC Building, No. 4A Lang Ha, Thanh Cong Ward, Ba Dinh District, Hanoi City 143 Trung Kinh, Trung Hoa Ward, Cau Giay District, Hanoi City Lot NV-B30 Nguyen Thi Dinh Street, Trung Hoa Nhan Chinh Urban area, Thanh Xuan District, Hanoi City (Levels 1,2) No. 152 Khuat Duy Tien, Nhan Chinh Ward, Thanh Xuan District, Hanoi City B1-12 Le Duc Tho, My Dinh Ward, Tu Liem District, Hanoi City (Level 1) No. 10-12-14 Cua Nam, Cua Nam Ward, Hoan Kiem District, Hanoi City Technology Center - Thang Long Industrial Zone, Dong Anh District, Hanoi City 558 Nguyen Van Cu, Gia Thuy Ward, Long Bien District, Hanoi City (Level 1) House No. 567 Ngo Gia Tu, Duc Giang Ward, Long Bien District, Hanoi City (Level 1) Building No. 73 Lo Duc, Pham Dinh Ho Ward, Hai Ba Trung District, Hanoi City (Level 1 + 2) Building No. 91 Nguyen Thai Hoc Street, Dien Bien Ward, Ba Dinh District, Hanoi City 16 Tran Nhat Duat, Dong Xuan Ward, Hoan Kiem District, Hanoi City (Level 1 and Level 5) Building No. 257 Giai Phong, Phuong Mai Ward, Dong Da District, Hanoi City 439 Tran Khat Chan,Thanh Nhan Ward, Hai Ba Trung District, Hanoi City (Level 1) Sannam Building, Dich Vong Hau Ward, Cau Giay District, Hanoi City (Ground Floor) Machinco Building, No. 444 Hoang Hoa Tham, Thuy Khe Ward, Tay Ho Dist., Hanoi City (Level 1) Building No. 136 Hoang Quoc Viet, Nghia Tan Ward, Cau Giay District, Hanoi City (Level 1 + Level 2) Building No. 292 Tay Son, Trung Liet Ward, Dong Da District, Hanoi City 206 Xa Dan Street, Team 27, Phuong Lien Ward, Dong Da District, Hanoi City 6C Team 24, Nghia Do Ward, Cau Giay District, Hanoi City 24 Quang Trung Street, Quang Trung Ward, Ha Dong District, Hanoi City 10B2 Tran Dai Nghia Street, Dong Tam Ward, Hai Ba Trung District, Hanoi City 32 Tran Phu, Ngo Quyen District, Hai Phong City Extra gate of Nomura Industrial Zone, Tan Tien Commune, An Duong District, Hai Phong City 274 Tran Nguyen Han, Niem Nghia Ward, Le Chan District, Hai Phong

Nguyen Du Transaction Office Bach Mai Transaction Office Hang Than Transaction Office Xuan Dieu Transaction Office Tay Ho Transaction Office Ly Thuong Kiet Transaction Office

8

Ba Trieu Transaction Office

9

Nguyen Chi Thanh Transaction Office

10

Ba Dinh Branch

11

Trung Yen Transaction Office

12

Trung Hoa Transaction Office

13 14 15 16 17 18 19

Cua Dong Transaction Office My Dinh Transaction Office Hang Bong Transaction Office Thang Long Transaction Office

Long Bien Branch Viet Hung Transaction Office Lo Duc Transaction Office

20

Nguyen Thai Hoc Transaction Office

21

Dong Xuan Transaction Office

22

Thu Do Branch

23 24

Tran Khat Chan Transaction Office Nguyen Phong Sac Transaction Office

25

Cau Giay Branch

26

Nguyen Co Thach Savings Fund

27

Dong Da Branch

28 29 30 31

168

Bank’s name

Kim Lien Transaction Office Tran Dang Ninh Transaction Office Ha Dong Transaction Office Dong Tam Transaction Office

32

Hai Phong Branch

33

Nomura Hai Phong Industrial Zone Transaction Office

34

Tran Nguyen Han Transaction Office

35

Thuy Nguyen Transaction Office

ANNUAL REPORT 2016 www.eximbank.com.vn

Front side of Street TL359, Phu Lien Hamlet, Thuy Son Commune, Thuy Nguyen District, Hai Phong City

No.

Bank’s name

Address

36

To Hieu Transaction Office

37

Vinh Branch

172 To Hieu,Trai Cau Ward, Le Chan District, Hai Phong City Block 4, Thanh Chuong Town, Thanh Chuong District, Nghe An Block 1, Yen Thanh Town, Yen Thanh District, Nghe An Kiosk No. 02, Dien Chau Trade Center, Dien Chau Town, Dien Chau District, Nghe An Block 3, Do Luong Town, Do Luong District, Nghe An 80 Thai Phien, Hong Son Ward, Vinh City, Nghe An 343 Le Duan, Trung Do Ward, Vinh City, Nghe An

38 39 40 41 42 43 44 45 46 47 48 49 50

Thanh Chuong Transaction Office Yen Thanh Transaction Office Dien Chau Transaction Office Do Luong Transaction Office Thai Phien Transaction Office Nam Vinh Transaction Office Bac Vinh Transaction Office

Quang Ninh Branch Mong Cai Transaction Office Quang Yen Transaction Office Uong Bi Transaction Office Ha Long Transaction Office Cam Pha Transaction Office

51

Quang Ngai Branch

52

Nguyen Nghiem Transaction Office

53

Da Nang Branch

54 55 56 57 58 59 60 61 62

Thanh Khe Transaction Office Hai Chau Transaction Office Ham Nghi Transaction Office Son Tra Transaction Office

Hung Vuong Branch Thuan Phuoc Transaction Office Dien Bien Phu Transaction Office Cho Con Transaction Office Hoa Cuong Transaction Office

63

Hue Branch

64

Quang Nam Branch

65

Hoi An Transaction Office

66

Nam Phuoc Transaction Office

67

Nha Trang Branch

68 69 70

Le Hong Phong Transaction Office Quang Trung Transaction Office Dien Khanh Transaction Office

71

Buon Ma Thuot Branch

72

Buon Ma Thuot Market Transaction Office

73

Nguyen Tat Thanh Transaction Office

150 Nguyen Trai, Vinh City, Nghe An 14-16 Tran Hung Dao, Tran Hung Dao Ward, Ha Long City, Quang Ninh 01 Hung Vuong, Hoa Lac Ward, Mong Cai City, Quang Ninh 66 Le Loi, Quang Yen Town, Yen Hung District, Quang Ninh 434 Quang Trung, Quang Trung Ward, Uong Bi Town, Quang Ninh (Ground Floor) Buu Dien Ha Long Building, Team 2, Quarter 2, Bai Chay Ward, Ha Long City, Quang Ninh 144 Tran Phu, Team 30B, Cam Tay Ward, Cam Pha Town, Quang Ninh 35A-35B Hung Vuong Avenue, Tran Hung Dao Ward, Quang Ngai City, Quang Ngai Province 268 Nguyen Nghiem, Nguyen Nghiem Ward, Quang Ngai City, Quang Ngai Province 48 Tran Phu, Hai Chau District, Da Nang City 203 Ong Ich Khiem, Thach Thang Ward, Hai Chau District, Da Nang City 484 Hoang Dieu, Binh Thuan Ward, Hai Chau District, Da Nang City 44A Ham Nghi, Thac Gian Ward, Thanh Khe District, Da Nang City 794-796 Ngo Quyen, Ward An Hai Bắc, District Son Tra, Da Nang City 151-153 Nguyen Van Linh, Vinh Trung Ward, Thanh Khe District, Da Nang City 180-182 Dong Da, Thuan Phuoc Ward, Hai Chau District, Da Nang City 433 Dien Bien Phu, Hoa Khe Ward, Thanh Khe District, Da Nang City 336 - 338 Hung Vuong, Vinh Trung Ward, Hai Chau District, Da Nang City 205 Phan Chau Trinh, Phuoc Ninh Ward, Hai Chau District, Da Nang City 205 Tran Hung Dao, Ward Phu Hoa, TWard Hue, tinh Thừa Thien Hue 226 - 228 Phan Chu Trinh, Tam Ky City, Quang Nam Province 226 - 228 Phan Chu Trinh, Tp.Tam Kỳ, Quảng Nam 22 Tran Hung Dao, Cam Pho Ward, Hoi An City, Quang Nam Province National Road No. 1A, Long Xuyen 1 Residential Area, Nam Phuoc Town, Duy Xuyen District, Quang Nam Province 63 Yersin, Phuong Sai Ward, Nha Trang City, Khanh Hoa Province 584 Le Hong Phong, Nha Trang City, Khanh Hoa Province 61A Quang Trung, Loc Tho Ward, Nha Trang City, Khanh Hoa Province 246 Lac Long Quan, Dien Khanh Town, Dien Khanh District, Khanh Hoa Province 114-116 Phan Boi Chau, Buon Ma Thuot City, Daklak Province Kiosk No. C21 Buon Ma Thuot Market, Thong Nhat Ward, Buon Ma Thuot City, Daklak Province 316 Nguyen Tat Thanh, Tan Lap Ward, Buon Ma Thuot City, Daklak Province


No. 74 75 76 77 78 79 80

Bank’s name

Address

Phan Chu Trinh Transaction Office Buon Ho Transaction Office Le Duan Transaction Office

240 Phan Chu Trinh, Tan Loi Ward, Buon Ma Thuot City, Daklak Province 327 Hung Vuong, Buon Ho Town, Daklak Province 420 Le Duan, Ea Tam Ward, Buon Ma Thuot City, Daklak Province 2D-2D/1-2E Nguyen Van Troi, Ward 1, Da Lat City, Lam Dong Province Lot A7 Suong Mai Planning Area, Ward 9, Da Lat City, Lam Dong Province 11 De Tham, Ward 1, Bao Loc Town, Lam Dong Province 25 Thong Nhat, Lien Nghia Town, Duc Trong District, Lam Dong Province 223 Ha Huy Giap, Quarter 4, Quyet Thang Ward, Bien Hoa City, Dong Nai Province 881 National Road No. 15, Tam Hiep Ward, Bien Hoa City, Dong Nai Province No. 5/1E National Road No. 20, Vo Dong 1 Hamlet, Gia Kiem Commune, Thong Nhat District, Dong Nai Province 122/5 Quarter 9,Tan Bien Ward, Bien Hoa City, Dong Nai Province 118 An Chu Hamlet, Trang Bom District, Dong Nai Province National Road No. 51A, team 19, Van Hai Area, Long Thanh Town, Long Thanh District, Dong Nai Province 245 Hung Vuong, Residential Area 5, Xuan Hoa Ward, Long Khanh Town, Dong Nai Province 244 Binh Duong Avenue, Phu Hoa Ward, Thu Dau Mot City, Binh Duong Province 01 Team 1, Khanh Thanh Quarter, Tan Phuoc Khanh Ward, Tan Uyen Town, Tan Uyen District, Binh Duong Province 499 Nguyen Trai, Lai Thieu Town, Thuan An District, Binh Duong Province Binh Minh 2 Quarter, Di An Ward, Di An Town, Binh Duong Province C4-o16 Quarter I, Street DA1-1-Rupby Land, My Phuoc Town, Ben Cat District, Binh Duong Province Lot G22 Ground Floor , AEON CANARY Building, Binh Duong Avenue, Binh Hoa Ward, Thuan An Town, Binh Duong Province

Da Lat Branch Chi Lang Transaction Office Bao Loc Transaction Office Duc Trong Transaction Office

81

Dong Nai Branch

82

Bien Hoa Transaction Office

83

Gia Kiem Transaction Office

84 85

Tan Bien Transaction Office Trang Bom Transaction Office

86

Long Thanh Transaction Office

87

Long Khanh Transaction Office

88

Binh Duong Branch

89

Tan Phuoc Khanh Transaction Office

90 91

Lai Thieu Transaction Office Di An Transaction Office

92

My Phuoc Transaction Office

93

Binh Duong Canary Transaction Office

94

Ba Ria - Vung Tau Branch

95 96 97

Ba Ria Transaction Office Tan Thanh Transaction Office Nguyen An Ninh Transaction Office

98

Phuoc Tinh Transaction Office

99

Ngai Giao Transaction Office

100

Binh Phuoc Branch

101

HCMC Branch

102

Hang Xanh Transaction Office

103

Trung Son Transaction Office

104 105 106 107 108

Tao Dan Transaction Office Le Loi Transaction Office Minh Khai Transaction Office Truong Dinh Transaction Office Ben Thanh Transaction Office

No.

Bank’s name

Address

109

Thanh Da Transaction Office

110

Bui Thi Xuan Transaction Office

111

Van Thanh Transaction Office

112

Cho Lon Branch

629-631 Xo Viet Nghe Tinh, Ward 26, Binh Thanh District, HCMC (Ground Floor + Mezzanine) Building No. 122A-B-C Bui Thi Xuan, Pham Ngu Lao Ward, District 1, HCMC (Ground Floor + part of Level 1) No. 85 Street D2, Ward 25, Binh Thanh District, HCMC 141 Nguyen Chi Thanh, Ward 9, District 5, HCMC

113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130

43 Tran Hung Dao, Ward 1, Vung Tau City, Ba Ria - Vung Tau Province

131

112 – 114 Bach Dang, Phuoc Trung Ward, Ba Ria Town, Ba Ria Vung Tau Province 27 National Road No. 51, Phu My Town, Tan Thanh District, Ba Ria - Vung Tau Province 513 Nguyen An Ninh, Nguyen An Ninh Ward, Vung Tau City, Ba Ria Vung Tau Province 286 (T17) - Team 8, Tan Phuoc Hamlet, Phuoc Tinh Commune, Long Dien, Ba Ria Vung Tau Province 270 Hung Vuong, Ngai Giao Town, Chau Duc District, Ba Ria Vung Tau Province (Ground Floor, Levels 1 and 2) ITC Dong Xoai, No. 1029 Phu Rieng Do, Dong Xoai Town, Binh Phuoc Province (Level 1 - Level 7) Building No. 229 Dong Khởi, Ben Nghe Ward, District 1, HCMC 155A - 155B Dien Bien Phu, Ward 15, Binh Thanh District, HCMC 2-4-6 Street No. 9A, Trung Son Residential Area, Binh Hung Commune, Binh Chanh District, HCMC (Ground Floor) Building No. 141 Nguyen Du, Ward Ben Thanh, District 1, HCMC

132

08 Le Loi, Ben Nghe Ward, Q1, HCMC

143

(Ground Floor) Building No. 179EF Cach Mang Thang 8, Ward 5, District 3, HCMC (Ground Floor) Building No. 24B Truong Dinh, Ward 6, District 3, HCMC 36-38 Ngo Duc Ke, Ben Nghe Ward, District 1, HCMC

144

133 134 135 136 137 138 139 140 141 142

145 146

Ly Thai To Transaction Office Nhat Tao Transaction Office District 6 Transaction Office Kim Bien Transaction Office Phu Tho Transaction Office Hong Bang Transaction Office Hung Dao Transaction Office An Dong Transaction Office District 8 Transaction Office

291 Ly Thai To, Ward 9, District 10, HCMC 410 Nguyen Tri Phuong, Ward 4, District 10, HCMC 41 Hau Giang, Ward 2, District 6, HCMC 161 Hai Thuong Lan Ong, Ward 13, District 5, HCMC 286 Ly Thuong Kiet, Ward 14, District 10, HCMC 258 Hong Bang, Ward 15, District 5, HCMC 466 Tran Hung Dao, Ward 2, District 5, HCMC 265 Tran Phu, Ward 8, District 5, HCMC 390-392 Pham Hung, Ward 5, District 8, HCMC

Hoa Binh Branch

78 Nguyen Trai, Ward 3, District 5, HCMC

Hoa Hung Transaction Office Ky Hoa Transaction Office Dong Khanh Transaction Office

138 To Hien Thanh, Ward 15, District 10, HCMC 773 Le Hong Phong (extended), Ward 12, District 10, HCMC

Tan Dinh Branch

78 Tran Quang Khai, Tan Dinh Ward, District 1, HCMC 250 Nguyen Thai Son, Ward 4, Go Vap District, HCMC 11A-11B Nguyen Thi Minh Khai, Ben Nghe Ward, District 1, HCMC 126 Nguyen Oanh, Ward 7, Go Vap District, HCMC 164 Ho Van Hue, Ward 9, Phu Nhuan District, HCMC 130 Phan Dinh Phung, Ward 2, Phu Nhuan District, HCMC (Ground Floor + Mezzanine + Level 2) Building No. 136-138 Le Thi Hong Gam, Nguyen Thai Binh Ward, District 1, HCMC 14R-S Quoc Huong, Thao Dien Ward, District 2, HCMC

Nguyen Thai Son Transaction Office Ben Nghe Transaction Office Go Vap Transaction Office Ho Van Hue Transaction Office Phan Dinh Phung Transaction Office

Sai Gon Branch Thao Dien Transaction Office Vo Van Tan Transaction Office DaKao Transaction Office Nguyen Cong Tru Transaction Office Ben Chuong Duong Transaction Office Truong Son Transaction Office Phan Xich Long Transaction Office

Thu Duc Branch Linh Xuan Transaction Office Phuoc Long Transaction Office District 2 Transaction Office Le Van Ninh Transaction Office Tam Binh Transaction Office District 9 Transaction Office

81 Bui Huu Nghia, Ward 5, District 5, HCMC

365 Vo Van Tan, Ward 5, District 3, HCMC 23A-B Nguyen Dinh Chieu, Ward Da Kao, District 1, HCMC 130 Nguyen Cong Tru, Nguyen Thai Binh Ward, District 1, HCMC 327 Ben Chuong Duong, Cau Kho Ward, District 1, HCMC 39B Truong Son, Ward 2, Tan Binh District, HCMC (Ground Floor) Building No. 05 Phan Xich Long, Ward 2, Phu Nhuan District, HCMC 147A Vo Van Ngan, Linh Chieu Ward, Thu Duc District, HCMC 76 National Road No. 1K, Quarter 3, Linh Xuan Ward, Thu Duc District, HCMC 497 Do Xuan Hop, Phuoc Long B Ward, District 9, HCMC 08 Tran Nao, Binh An Ward, District 2, HCMC 12 Le Van Ninh, Linh Tay Ward, Thu Duc District, HCMC 141 National Road No. 1A, Tam Binh Ward, Thu Duc District, HCMC 35 Le Van Viet, Hiep Phu Ward, District 9, HCMC

169


OPERATION NETWORK (continued) AS AT 31/3/2016

No. 147 148 149 150 151 152

Address

Cong Hoa Branch

(Ground Floor + Mezzanine) No. 19 Cong Hoa, Ward 12, Tan Binh District, HCMC 230-232 Nguyen Son, Phu Tho Hoa Ward, Tan Phu District, HCMC 379-381 Truong Chinh, Tan Thoi Nhat Ward, District 12, HCMC 150/3 Nguyen Anh Thu, Trung Chanh 2 Hamlet, Trung Chanh Commune, Hoc Mon District, HCMC 509 Truong Chinh, Ward 14, Tan Binh District, HCMC 156 Pham Van Hai, Ward 3, Tan Binh District, HCMC 307 Nguyen Van Troi, Ward 1, Tan Binh District, HCMC 110-112-114 Cho Lon, Ward 11, District 6, HCMC 611-611ALuy Ban Bich, Phu Thanh Ward, Tan Phu District, HCMC A29/25 National Road No. 50, Binh Hung Commune, Binh Chanh District, HCMC 141-141A Street No. 1, Binh Tri Dong B Ward, Binh Tan District, HCMC 54 Go Dau, Tan Quy Ward, Tan Phu District, HCMC 10 Kinh Duong Vuong, Ward 13, District 6, HCMC 476-478 Kinh Duong Vuong, An Lac Ward, Binh Tan District, HCMC Part of Ground Floor + Part of Mezzanine) Vinamilk Tower - No. 10 Tan Trao, Tan Phu Ward, District 7, HCMC 1469 Nguyen Van Linh, My Toan I QuarterH3, Tan Phong Ward, District 7, HCMC

Nguyen Son Transaction Office An Suong Transaction Office Trung Chanh Transaction Office Vo Thanh Trang Transaction Office Pham Van Hai Transaction Office

153

Tan Son Nhat Branch

154

Binh Phu Branch

155 156 157 158

Tan Phu Transaction Office Binh Chanh Transaction Office Binh Tri Dong Transaction Office Go Dau Transaction Office

159

Binh Tan Branch

160

An Lac Transaction Office

161

Phu My Hung Branch

162 163

Tan Phong Transaction Office Pham The Hien Transaction Office

164

District 3 Branch

165

District 4 Branch

166 167 168

Khanh Hoi Transaction Office Thi Nghe Transaction Office Ly Tu Trong Transaction Office

169

District 7 Branch

170

Phu My Transaction Office

171 172 173 174 175 176 177 178

170

Bank’s name

Phu Xuan Transaction Office Nguyen Thi Thap Transaction Office

District 10 Branch Thanh Thai Transaction Office Le Van Sy Transaction Office Ban Co Transaction Office Van Hanh Transaction Office Ba Thang Hai Transaction Office

ANNUAL REPORT 2016 www.eximbank.com.vn

721 Pham The Hien, Ward 4, District 8, HCMC (Level 1 - Level 3) Building No. 21 Ky Dong, Ward 9, District 3, HCMC Building H2 Hoang Dieu Street, Ward 8, District 4, HCMC 42 Vo Van Tan, Ward 6, District 3, HCMC 117 - 117A Xo Viet Nghe Tinh, Ward 17, Binh Thanh District, HCMC 232 Ly Tu Trong, Ben Thanh Ward, District 1, HCMC. 849 Huynh Tan Phat, Phu Thuan Ward, District 7, HCMC 07 Lot O extended Hoang Quoc Viet, Phu My Residential area, Phu My Ward, District 7, HCMC

No.

Bank’s name

Address

179

Minh Phung Transaction Office

90 Minh Phung, Ward 5, District 6, HCMC

180

District 11 Branch

31-33-27/1 Au Co, Ward 14, District 11, HCMC

181 182 183 184 185

Dam Sen Transaction Office Phu Lam Transaction Office Tan Binh Transaction Office Bac Hai Transaction Office Au Co Transaction Office

186

Can Tho Branch

187

Phong Dien Transaction Office Cai Rang Transaction Office An Phu Transaction Office Co Do Transaction Office Hung Loi Transaction Office

188 189 190 191 192

Tay Do Branch

193

Tra Noc Transaction Office O Mon Transaction Office An Nghiep Transaction Office

377A Minh Phung, Ward 10, District 11, HCMC 73 Thuan Kieu, Ward 12, District 5, HCMC 1115 Cach Mang Thang 8, Ward 7, Tan Binh District, HCMC 02 Bis Cuu Long, Bac Hai Housing Compound, Ward 15, District 10, HCMC 344-346 Au Co, Ward 10, Tan Binh District, HCMC 08 Phan Dinh Phung, Ninh Kieu District, Can Tho City Lot 1 Row A5 Phan Van Tri, Phong Dien Town, Phong Dien District, Can Tho City 171 National Road No. 1A, Le Binh Ward,Cai Rang District, Can Tho City 87 Street 30/4, Xuan Khanh Ward, Ninh Kieu District, Can Tho City 21-22 Ha Huy Giap, Thoi Thuan Hamlet, Co Do Town, Co Do District, Can Tho City 221A Street 3/2, Hung Loi Ward, Ninh Kieu District, Can Tho City Lo P+R Tran Van Kheo, Cai Khe Ward, Ninh Kieu District, Can Tho City

196

Thot Not Transaction Office

197

Long An Branch

198

An Giang Branch

199

Tan Chau Transaction Office

200

Phu Tan Transaction Office

201

Chau Doc Transaction Office Long Xuyen Transaction Office Chau Phu Transaction Office

37 Le Hong Phong, Binh Thuy Ward, Binh Thuy District, Can Tho City 292-293 National Road No. 91, O Mon District, Can Tho City 174 Tran Hung Dao, Ninh Kieu District, Can Tho City 568 National Road No. 91, Long Thanh A Area, Thot Not Ward, Thot Not District, Can Tho City 42 Tra Quy Binh, Ward 2, Tan An City, Long An Province 46 Hai Ba Trung, My Long Ward, Long Xuyen City, An Giang Province 46 Thoai Ngoc Hau, Tan Chau Town, An Giang Province Parcel No. 7125, Map No. 02 - Trung Hoa Hamlet, Tan Trung Commune, Phu Tan District, An Giang Province 56-58-60 Nguyen Van Thoai, Chau Phu A Ward, Chau Doc City, An Giang Province 3/4Ton Duc Thang, My Binh Ward, Long Xuyen City, An Giang Province 21 Tran Khanh Du, Chau Phu District, An Giang Province

194 195

6/8 Quarter 5, Nha Be Town, Nha Be District, HCMC 527 Nguyen Thi Thap, Tan Phong Ward, District 7, HCMC 65-65A & 63/6 Street 3/2, Ward 11, District 10, HCMC

202

204

My Tho Branch

77-79 Le Loi, Ward 1, My Tho City, Tien Giang Province

61 Thanh Thai, Ward 14, District 10, HCMC

205

Cai Lay Transaction Office Ap Bac Transaction Office

213 - 215 Le Van Sy, Ward 13, District 3, HCMC 619 Nguyen Dinh Chieu, Ward 2, District 3, HCMC 373 Su Van Hanh (extended), Ward 12, District 10, HCMC 530 Street 3/2, Ward 14, District 10, HCMC

203

207

Bac Lieu Branch

41 Street 30/4, Region 2, Cai Lay Town, Tien Giang Province 366 Ap Bac, Ward 5, My Tho City, Tien Giang Province 477 Tran Phu, Ward 7, Bac Lieu City, Bac Lieu Province

208

Kien Giang Branch

02-04 Pham Hong Thai, Vinh Thanh Van Ward, Rach Gia City, Kien Giang Province

206

Eximbank’s Annual Report 2016 is made in electronic version for the purpose of paper consumption reduction and fully posted at the website: www.eximbank.com.vn


171

Profile for Value+ Media JSC

Eximbank AR2016 - Annual Report 2016  

Eximbank AR2016 - Annual Report 2016  

Advertisement