Dab BCTN 23 07 2010

Foundation for
ExcELLENcE
Nn tng cho S Vt Tri
QUALITY and sUsTAInAbILITY

A N N UA L R E P O R T 2009
EnhAncIng corE compETEncIEs, sTrEngThEnIng oUr FUTUrE

DongA Bank has been consolidating a firm foundation to strengthen our future sustainability. Our strategic focus is on the development of core competencies in advanced technology and qualified human resources to continuously improve product quality, upgrade management capabilities and expand our scope of activities. With dynamism and passion, DongA Bank is confident in our progress towards our ambition to become a leading retail bank in Vietnam.
cht lng & Bn vng
QUALiTy and SUSTAiNABiLiTy
Table of ConTenTs
foundaTion for exCellenCe

07 08 09 10 12 14 16 Vision Mission Corporate Overview Organizational Chart Our Journey in Review Board of Directors Board of Supervisors Board of Management
leveraging Core CompeTenCies

20 22 24 24 Human Resource - The Vital Resource Leadership in Modern Technology Extensive Nationwide Network Excellence in Products & Services
making of a ConglomeraTe
28 DongA Securities Company Ltd (DongA Securities) & DongA Capital Company Ltd (DongA Capital) 30 DongA Money Transfer Company Ltd (DongA Money Transfer) 31 Vi Na Brilliant Card JSC (V.N.B.C.)
engagemenT wiTh CommuniTy

34 Charitable and Community Activities 34 Union and Party Activities 35 Achievements and Social Recognition
highlighTs of aChievemenTs
38 40 44 44 Key Events of the Year Operations Review 2009 Key Financial Indicators 2009 Business Targets 2010
Message from Chairman of the Board
Looking back on 2009, DongA Bank has made a solid step forward in pursuit of our strategy to become the Best Retail Bank in Vietnam.
mr. pham van bu, Chairman of the Board
dear shareholders,
The global economic slowdown in 2009 had serious implications across the entire Vietnam economy, including the Finance and Banking sector. Responding to the Government-led initiative to address the economic downturn, the State Bank of Vietnam implemented a prudent monetary policy comprising an interest rate support of 4% per annum; a reduction in base rate, refinance rate, discount rate and cash reserve ratio; responsive measures for open market operations, refinancing and foreign exchange activities to ensure solvency; and adoption of a flexible foreign exchange rate, remittance control and regulatory oversight on credit institutions to effectively steer the operations of commercial banks in 2009. Capitalizing on the interest rate support scheme from the Government, a number of customers repaid their original loans before maturity, and took new loans to enjoy the benefits of the interest rate subsidy. On the other hand, banks were largely unsuccessful in negotiating for a corresponding reduction in the borrowing rates. This led to an interest-rate war to mobilize funds to meet operational requirements of the banks during the yearend period. DongA Bank was not spared the impact of these market movements in 2009. However, based on market forecast made at the beginning of the year, the Board of Directors and Board of Management realigned our strategic priorities to focus on Quality on the basis of sustainability, in order to deliver the targets set during the General Assembly of Shareholders. Credit growth rate was under control and in tandem with the mobilized funds, with considerable attention to credit quality. The Bank continued to focus on service offers to personal-banking customers. Aside from operating in a market-driven approach, we also focused on capability development for key positions through training programs, upgrading overall competencies on business and management skills for current and future workforce. Through a combination of effective policy direction, visionary leadership from the Board of Directors and responsive management from the Board of Management, DongA Bank achieved and exceeded the targets set by the General Assembly of Shareholders. Notably, the Bank maintained its leadership position in IT applications and delivered the fastest growth in the number of personalbanking customers. DongA Bank once again achieved its targets in 2009 to mark its 17th consecutive year of profitable operations. Due to its strong performance in 2009, DongA Bank won a number of prestigious awards, such as the Vietnam Brand Awards 2009, Golden Brand Awards 2009, IT Excellence Awards, etc. These achievements laid a solid foundation and set a strong motivation for the Bank to progress towards our ambition to become the Best Retail Bank in Vietnam in the near future. DongA Bank is committed to pursue our strategic development plan in 2010 and subsequent years by enhancing our reputation and prestige and continuing to develop new banking services, especially non-cash payment services for our personal-banking customers. Our accomplishments over the past 17 years have indeed set the stage for us to deliver our targets successfully in 2010.
pham van bu Chairman of the Board
DongA Bank Annual report 2009
Message from Chief Executive Officer
With strong foundations, we are optimistic that DongA Bank is on firm footing and has the right-mix of critical success factors to deliver our strategic objectives.
mr. Tran phuong binh, Chief Executive Officer
dear shareholders,
2009 was a year of enormous challenges to the Finance and Banking sector worldwide. The adverse impact of the global financial crisis and Vietnam-specific economic problems posed massive strategic and tactical headwind to the Vietnam Banking sector. Despite the exacting conditions in 2009, DongA Bank not only turned in a strong business performance but also made significant progress in building the foundations to set the stage for its long-term, sustainable development. The meltdown of global financial markets led to the collapse and decline of a number of large international financial institutions. This sent a strong wake-up call to the industry to review the root cause of problems associated with previous growth drivers and establish key learning. Relentless pursuit of short-term growth and profit goals, coupled with an indifference to business fundamentals would lead to serious structural flaws in the financial institutions, which would undermine their long-term sustainability and growth. As the CEO and a shareholder of DongA Bank, I am committed to develop DongA Bank into a leading, sustainable and strong financial institution in Vietnam, and bring long-term benefits and growth to our shareholders. As such, the Board of Management proposed to the Board of Directors in end 2008 to focus our 2009 strategic priorities on QualiTy and susTainabiliTy to ensure a balance between short-term growth and long-term sustainability. This recommendation was passed during the General Assembly of Shareholders. DongA Bank once again turned in a strong performance in 2009 by achieving nearly all of the growth targets. This was the 17th consecutive year that DongA Bank exceeded its budgeted profit set by shareholders. DongA Bank has been moving in the right direction towards becoming the Best Retail Bank in Vietnam by earning the trust of more than 4 million customers to establish leadership in various segments, such as: eBanking, ATM Card, Overseas remittance, etc. Not one to rest on our laurels, DongA Bank made further progress in 2009 by enhancing the quality of our core capabilities. Customer service was improved through an expanded network, standardized supplies and facilities, and upgrading of customer service skills. The Bank placed high priority on the development of human capital through regular training and development programs for managers and staff. We proactively accept new employees of diverse background and different working style into our team to develop the optimal team dynamics and at the same time improve our receptiveness to new ideas. The focus on risk management and customer relations has helped DongA Bank make definitive improvements in asset protection and service to customers applying loans, respectively. With strong foundations, we are optimistic that DongA Bank is on firm footing and has the right-mix of critical success factors to deliver our strategic objectives. With the trust and support from our customers and shareholders, collaboration with strategic partners and government authorities, leadership from the Board of Directors, and the concerted effort and engagement from all employees, DongA Bank has full confidence in successfully meeting our deliverables for 2010, along with the strategic theme of progress susTainabiliTy.
Tran phuong binh Chief Executive Officer
foundaTion for
ExCELLENCE
nn Tng Cho s vT Tri

DongA Bank enters its 17th year of operations in 2009. Our accomplishments, management experience, potentials developed over various stages, as well as our deeply-entrenched core values are the key success factors in our progress towards leadership position and sustainability. That is our Foundation for Excellence.
Your Trustworthy Companion
Vision
To become the leading retail bank and develop into one of the most successful and diverse financial conglomerates in Vietnam.
Mission
To gain the trust of customers, partners and shareholders through breakthrough financial services and solutions and become a modern, friendly and trustworthy bank for Vietnamese consumers from all walks of life.
Corporate Overview
your Trustworthy Companion DongA Commercial Joint Stock Bank (DongA Bank) officially began operations on 1 July 1992 with a charter capital of VND 20 billion (80% from institutional investors) and 3 key departments: Credit, Treasury and Business.
After more than 17 years of operations, charter capital of DongA Bank has increased by 16,900%, to a total of VND 3,400 billion as of 31/12/2009, while total assets reached VND 42,520 billion; from 3 key departments, the Bank now has 37 located at the Head Office; and a distribution network consisting of 4 subsidiaries, 173 branches and 24hr Banking Center outlets nationwide. From a modest number of 56 employees in its inception to a team of 3,691 at present, DongA Bank continues to gather the best and brightest talents, creating a workforce that comprises young, capable and enthusiastic employees. Towards its aim to become the leading retail bank in Vietnam, DongA Bank has relentlessly worked to apply modern technology in its banking products and services, offering innovative and practical financial solutions to more than 4 million clients.
DONGA BANK
Transaction channels of donga bank

DongA Traditional Banking (a nationwide network of 173 transaction points covering 44 provinces and cities) DongA Automated Banking (an extensive network of over 1,200 ATMs) DongA Electronic Banking (DongA eBanking with 3 key categories namely SMS Banking, Mobile Banking and Internet Banking)
subsidiaries (as of 31/12/2009)

DongA Money Transfer Company Ltd (DongA Money Transfer) DongA Securities Company Ltd (DongA Securities) DongA Capital Company Ltd (DongA Capital) Vi Na Brilliant Card JSC (V.N.B.C.)
Quality management system

Key operational procedures of the Bank are standardized in accordance with ISO 9001:2000
major shareholders
HCMC Committee of Communist Party and other units belonging to the Committee: 16.9% of the charter capital Phu Nhuan Jewelry Joint Stock Company (PNJ): 7.7% of the charter capital
shareholders information
donga bank has 100% domestic shareholders Total shares of institutional shareholders Total shares of individual shareholders Total %/charter capital 43.49% 56.51% 100%
Organizational Chart
SHAREHOLDERS GENERAL ASSEMBLY

O ce of the Board of Directors Board of Supervisors
BOARD OF DIRECTORS
Board of Remuneration
Internal Audit Department
BOARD OF MANAGEMENT
O ce of the Board of Management
Credit Committee
Assets and Liabilities Committee
CONSUMER BANKING DIVISION

Business Development Center
CORPORATE BANKING DIVISION

Customer Policy Department
INVESTMENT AND TRADING DIVISION
OPERATIONS AND SUPPORT DIVISION
SUPERVISORY DIVISION
Internal Audit Department
Treasury Department
Accounting Department
Business Department Product Introduction Department Channel Development Department VIP Banking Department
Risk Management and Compliance Department
Forex Trading Department
HR and Training Department
Risk Management Department
International Settlement Department
Gold Trading Department
IT Center
Quality Management Department
Corporate Accounts Department
Investment Department
Research and Development Department
Operations Center
General A airs Department
Marketing Department
Card Center
Customer Service Center
Administration Department
Legal Department Support Center International Relations Department
Product R&D Department Risk Management Department Personal Credit Department O ce Management Department Partner Development Department
eBanking Department
Warehouse Department
Party and Union O ce
TRANSACTION CENTER, BRANCHES AND OTHER SUBSIDIARIES
Our Journey in Review

Looking back at the remarkable events since our inception, we further appreciate our achievements and take pride on the current position of DongA Bank.
Each stage of growth and every accomplishment hold great significance to the transformation and progress of DongA Bank over the past 17 years. In retrospect, these are notable milestones, driven by a common spirit of enthusiasm and passion, as we are committed to sustainable long-term growth for DongA Bank.
1992
1/7/1992: DongA Bank officially started operations at its first Head Office in 60-62 Nam Ky Khoi Nghia, Phu Nhuan District, HCMC (currently Nguyen Van Troi Street) Charter capital: VND 20 billion Total number of employees: 56 Became the first bank that offered installment loans for proprietors and merchants at local markets
1993
Established 3 branches: in District 1, Hau Giang (HCMC) and Hanoi Launched international payment, express remittance and payroll services
1994 1995
Charter capital: VND 30 billion Established Outpost of Party, Labor Union, and Outpost of the Youth Union Charter capital: VND 49.6 billion Became the exclusive partner of Swedish International Development Cooperation Agency (SIDA) in financing small and medium sized enterprises in Vietnam
1998 2000 2001
Became one of the two commercial joint stock banks in Vietnam to receive funding support from the Rural Development Fund (RDF) of World Bank Charter capital: VND 97.4 billion In September, became an official member of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) Charter capital: VND 120 billion Established DongA Money Transfer Company Successfully developed and implemented the ISO 9001:2000 Quality Management System into the operations of the Bank
10
2002
Charter capital: VND 200 billion Total number of employees: 537 Took over Cong an HCMC football team and established DongA Sports Joint Stock Company (Football Club of DongA Bank) Founded DongA Bank Card Center to issue DongA Bank cards Became one of the two commercial joint stock banks authorized to process funds from Japan Bank for International Cooperation (JBIC) to subsidize small and medium-sized enterprises
Operating network: 69 branches and transaction points nationwide Successfully migrated into core-banking system and integrated online transactions into the whole system Became a member of VISA Card Network DongA Money Transfer Company retained its leading position for 7 consecutive years
2007
2004

Charter capital: VND 350 billion In March, officially launched ATM system Introduced automated payment service for electricity via ATM Total number of employees: 824
2005
Charter capital: VND 500 billion Established the Vietnam Bankcard system (VNBC) connecting electronic card systems among banks For the first time, organized the program Summer Internship Program for Students based on international business practices Successfully connected to China Union Pay Group (China) Signed Memorandum of Understanding between DongA Bank-Mai Linh Joint Stock Company-Jampoo Group (Taiwan) on business cooperation in Vietnam and Taiwan Total number of employees: 1,053 (including headcount of subsidiaries)
7/7/2007: on the occasion of its 15th year of establishment, DongA Bank formally launched a new logo and brand identity system Launched new modern offices designed in accordance with the standardized interior dcor model of its Head Office building Operating network: 107 branches, transaction points in 40 provinces and cities ATM TK21 of DongA Bank was recognized as a first in Vietnam with the capability of processing cash withdrawal and deposit in foreign currencies International payment turnover exceeded USD 2 billion Reached the milestone of 2 million customers Voted the top 200 largest corporations in Vietnam by the United Nation Development Program (UNDP)
2008
2006
Inaugurated the Head Office building Reached 1 million customers for multi-purpose card after only 3 years of card issuance, became the leading commercial joint stock bank in terms of speed of ATM card service development in Vietnam Launched 2 additional transaction categories: DongA Automated Banking and DongA eBanking
DongA Bank expanded to 50 provinces and cities nationwide with 148 transaction points and more than 800 ATMs 8/8/2008: officially issued credit cards, connected the DongA electronic card system globally via VISA Group Customer base increased to 2.5 million DongA Bank was the first bank in Vietnam to own state-ofthe-art ATM with direct deposit feature that could accept up to 100 currency notes of different denomination during each transaction
11
BOaRd Of diReCtORs
Mr Pham Van Bu Chairman Ms Vu Thi Vang First Deputy Chairwoman Mr Dang Phuoc Dua Deputy Chairman Mr Tran Phuong Binh Member Mr Nguyen Dinh Truong Member Ms Nguyen Thi Ngo Member Mr Trang Thanh Suong Member
12
13
BOaRd Of supeRvisORs
14
Ms Nguyen Thi Cuc (First Deputy General Director of Phu Nhuan Jewelry Joint Stock Co.) Chief of Board of Supervisors Mr Nguyen Vinh Son Member Ms Phan To Loan Member
2 3
15
BOaRd Of ManageMent
1 Mr Tran Phuong Binh Chief Executive Officer 2 Ms Nguyen Thi Ngoc Van First Deputy CEO 3 Ms Nguyen Thi Kim Xuyen Deputy CEO 4 Mr Nguyen Huu Chinh Deputy CEO 5 Mr Nguyen An Deputy CEO 6 Mr Le Tri Thong Deputy CEO 7 Mr Tran Dao Vu Deputy CEO 8 Mr Phung Duy Khuong Deputy CEO
16
5 6 4
7 8
2 3 1
17
CORE COMPETENCIES
phT huy sC mnh ni Ti
leveraging
The key success factors of DongA Bank are: competent and enthusiastic workforce, leadership in modern banking technology, extensive network of transaction offices nationwide and convenient financial products and services. Such values, created and tested over time, are the basis of distinction and competitiveness of DongA Bank in the race to win the trust of millions of customers.
Human Resource the vital Human Resource

Continued investment in human resource is a profitable, sound and lucid investment strategy which DongA Bank is proud to uphold.
The intrinsic value of an effective human resource policy is the long-term and whole-hearted commitment of its employees.
Recognizing the importance of sound human resource management from the onset, DongA Bank has focused on developing a human resource policy that attracts the best talents, assigning them to appropriate positions and developing the capabilities of each employee. Performance-driven compensation and incentive policy, together with timely resource allocation are key drivers of DongAs progress and efforts. Aside from providing a dynamic working environment, DongA Bank has become the second home for every employee of the Bank. 2009 was affected by the financial crisis and recession along with massive challenges forecasted at the beginning of the year. Thus, DongA Bank decided to focus on Quality and Sustainability, aimed first and foremost at the development of human resources. Various training courses were lined up throughout the year. Over 160 regional managers of branches and transaction centers attended upgrading courses for incumbent and future leaders, the Chief Accountant took advanced accounting course while tellers and personal financial consultants also participated in skills upgrading programs. DongA Bank also actively engaged in external training resources, sending managers and staff overseas for courses. Our intensive and advanced training program in 2009 was instrumental in building leadership capabilities, which enabled the Bank to improve its performance and services and meet customers expectations and demands. Despite the global recession, DongA Bank in 2009 still managed to provide annual salary increment for the entire workforce as well as supplementary bonus for outstanding employees. In addition, the Bank maintained the following benefits: recreation program, insurance and incentives given on National Holidays. The average income of our staff reached VND 74 million/person/year in 2009, an increase of 9% in comparison to 2008. In 2009, the Bank also implemented Online Evaluation and Online Human Resource Management or iHRP to improve recruitment methods and standardized HR management. At the end of 2009, headcount of DongA Bank increased to 3,691 employees, of which 77.1% graduated from vocational schools, college, university and post-graduate courses. Another notable aspect is that 72% of employees are under the age of 30 (equivalent to 2,658 people), creating a young, energetic and dynamic team, as well as a working environment offering interesting challenges and opportunities.
donga banks employee summary from 2004 - 31/12/2009 Year Headcount Ratio changes 2004 618 39.82% 2005 885 43.20% 2006 1,373 55.14% 2007 2,228 62.27% 2008 3,138 40.84% 2009 3,691 17.62%
20
The value of our capable and devoted workforce is indeed our visible success through the daily activities of the bank.
The commitment and passion of our employees played an significant role in 2009 in the face of the global economic crisis. In DongA Bank, our workforce remained stable, reflecting the employee engagement and the effective recruitment policy. Devotion, solidarity and a learning culture epitomized the Banks common spirit. Investment in human resource is a sound, lucid, and most profitable strategy which DongA Bank is proud to uphold.
21
Leadership in Modern technology
DongA Banks technological advantage is established through our strong IT infrastructure, and a competent technical team to manage the modern banking system and create technology-based applications, in order to deliver the best customer service, and enhance market competitiveness and differentiation.
22
Since inception, DongA Bank has focused on applying modern technology to our banking activities in order to provide maximum security and confidentiality for our customers, because DongA Bank understands that banking is a unique industry requiring proper utilization of modern information technology to obtain customers trust. DongA Bank further consolidated its reputation as a leading modern bank demonstrated through our stable network connectivity, which enabled the implementation of Core Banking system and ensured that ATM-based transactions are connected directly with the Banks servers. At the same time, as part of the technological upgrade, Smartlink and V.N.B.C. connected the ATM systems for DongA Bank, Vietcombank and Techcombank in 2009. This enables customers of each bank to carry out transactions at any of the ATM network of the 3 banks. This also serves as a catalyst for the development of e-payment scheme via channels such as POS, Internet and mobile phone, and other value-added applications of ATMs. Notably, DongA Bank leveraged our strengths in IT infrastructure to drive further development in our eBanking services such as: SMS Banking, Mobile Banking, Internet Banking and Phone Banking wherein customers are provided a unique single password verified through SMS to ensure security in transactions. In addition, DongA eBanking provides further security for customers using eBanking via token card (matrix-applied security). In review, the year 2009 was a successful year for DongA eBanking in terms of cooperation with partners for online payment and launch of new services in SMS Banking/Mobile Banking/ Internet Banking. Aside from these, DongA Bank is also the first bank in Vietnam to launch premier services such as Mobile Internet Banking enabling internet banking through cell phone and DongA Mobile Internet on iPhone and GPRS/Wifi supported phones. In 2009, DongA eBanking delivered significant results: an
increase of 173% in customers and 105% in transactions compared to 2008, as well as several prestigious awards such as the Most Popular B2C e-trading website award, the e-Wallet award, and the Favorite payment site award for the site http://ebanking.dongabank.com.vn, an award co-organized by HCMC Industry and Trading Department and the Southern branch of Vietnam e-Trading Association. In 2009, DongA Bank also implemented a cluster using Oracle technology for all its application systems to ensure undisrupted connection and smooth transaction. In particular, DongA Bank focused on developing applications according to procedures on automation in order to provide customers with more convenient services in the fastest way possible. With remarkable achievements and continuous efforts in modernization, DongA Bank has won a number of prestigious awards in technology in 2009. This is a well-deserved recognition as well as a strong motivation for DongA Bank to continue striving to remain at the forefront of modern banking.
23
extensive nationwide network

DongA Bank opened 26 new branches and transaction centers in 2009, pushing the total number to 173, among which 21 locations were modeled after the Head Office branch to raise the trustworthy and modern brand image of the Bank. In particular, the network of DongA Bank has recently reached the remote areas in the provinces previously served only by state-owned banks. In the provinces of Daklak, Lam Dong, etc, DongA Bank set up modern and spacious branches. Furthermore, DongA Bank also expanded its network of ATM/POS and currently has more than 1,200 ATMs and 1,500 POS nationwide. Another noteworthy development is the 24-hour Banking of DongA Bank. Despite its fairly recent introduction, this value-added service has gained rave reviews by providing fast, convenient and user-friendly transactions that exceeded customers expectations. In addition, the simplified, one-stop transaction process enable customers to save valuable time when transacting at the 24-hour Banking centers, which are located at the gasoline stations or the 3-in-1 transaction centers comprising a reading corner, banking services and a rest-room. The network expansion of DongA Bank demonstrates clearly our determination to bring our products and services closer to people, providing prompt and premier service to our customers. This network expansion also helped DongA Bank to make strong progress in 2009.
Excellence in products & services

Fulfilling its motto to be a Trustworthy Companion for all Vietnamese, DongA Bank continues to provide new products and services that meet the practical financial demands of customers amidst the economic crisis of 2009. 1. Diversified transaction channels to provide customers with services that are both accessible and convenient Aside from branches and transaction centers, DongA Bank also offers: Improved, increased and modernized ATM/POS system DongA eBanking with SMS/Internet/Mobile Banking Newly designed transaction offices providing formal yet comfortable setting (bank and lounge area) 2. Continuous upgrading of technology to modernize banking services and ensure reliable and stable banking and ATM/POS systems as well as provide customer-friendly products and services Direct deposit of cash through ATMs ATMs that provide audible instructions for the illiterate or visually-impaired ATMs that allow purchase of mobile phone top-up card, money exchange, among others for customers without ATM cards Solution to improve account security, such as SMS Banking for credit cards (SMS notification being sent to advise the card owner of account activities) 3. e-Payroll In response to Government policy that encourages administrative and state-owned units to process salaries via bank card accounts, DongA Bank created e-Salary payment wherein companies can debit salaries into individual accounts in the payroll. This system enables them to remit money fast, safely and secured at their convenience. There are currently 1,000 enterprises using this service, for a total of over 83,000 payments per month. Some of our esteemed customers are the State Bank of Vietnam, military-run companies, post office, and government-owned organizations, among others. 4. 24-minute loan Launched on February 2009, the 24-minute loan, disbursed via DongA Bank card account, is a loan fit for all customers. This special product requires no collateral and disbursement is guaranteed in 24 minutes or less. The 24-minute loan meets the small and quick credit needs of customers such as students and shopkeepers. This product is DongAs answer to the daily financial needs of mainstream Vietnamese. 5. Promoting bill payment services (electricity, water, telephone, internet, cable TV, etc) throughout the country Bill payment is made via channels such as: Branches and transaction offices Automatic-debit eBanking: Internet/SMS/Mobile Banking Over the counter payments (collaboration between DongA Bank and strategic partners)
24
37 branches and Transaction offices in northern region
32 branches and Transaction offices in Central vietnam and highlands
104 branches and Transaction offices in southeast region, hCmC and mekong delta
DongA Banks online connection with other service providers allows real-time reconciliation of payments as soon as customers payments are received via the above channels. It is a welcome convenience for modern, urban citizens to save time and expense. 6. Launched mobile ATMs To meet the increasing demands of millions of ATM users, DongA Bank invested in a mobile ATM system which was officially launched in 2009. This system has proven its effectiveness in providing solutions to the huge demand for cash withdrawal at industrial zones, residential areas, or during National Holidays. Thus, the mobile ATM of DongA Bank has received numerous acknowledgements from customers and the community. This service also received an award in February 2009 as the first bank to provide mobile ATM from the Vietnam Guinness Book of Records. 7. Waived charges for ATM transactions In order to encourage people to use cards and ATMs and limit the use of cash, DongA Bank has waived charges for fees on basic transactions such as cash withdrawal and balance check on ATMs. This policy reflects the Banks support for customers in light of the economic crisis. 8. Creating connections between Smartlink and VNBC VNBC and Smartlink were officially connected in 2009. This event not only provided a convenient and effective solution for customers but also allowed banks
to exchange technology and improve compatibility between capabilities and equipment. This also made a significant contribution to the implementation of the Government policy to reduce cash in circulation and encourage electronic transactions for commerce. 9. Free multi-purpose card for customers with term deposit To allow customers to access the interest on their term deposits faster and more conveniently, DongA Bank launched the free multi-purpose card for customers with term deposit. The program entitles all customers with existing term deposits at DongA Bank to receive a free multi-purpose card wherein the interest of their term deposits will be credited on a regular basis by the Bank. This program was well received by our customers. 10. 1km Live Coverage program 1km Live Coverage is a nationwide program aimed at bringing banking services closer to people, especially those living within the 1km zone surrounding DongA Bank branches or transaction offices. This is a unique and pioneering product in Vietnam. The DongA Bank staff takes the time to personally visit every family within the 1km radius to promote the Banks product as well as provide consultation for financial concerns. This program showcases DongA Bank as a dynamic, modern and friendly bank to thousands of customers.
25
CONGLOMERATE
nh hng m hnh Tp on
making of a
After more than 17 years of endeavors to earn the customers trust, we are now prepared to embark on the new stage of development wherein DongA Bank becomes a parent company with subsidiaries such as DongA Securities, DongA Capital, DongA Money Transfer, and Vi Na Brilliant Card (V.N.B.C.). With DongA Bank playing the central role and harnessing the synergies and strengths from the subsidiaries, we are setting a strong platform for the creation of DongA Group in the near future.
Member Companies
Capital
DongA Securities Company Ltd (DongA Securities) & DongA Capital Company Ltd (DongA Capital)
After overcoming challenges in 2008, DongA Securities (DAS) and DongA Capital (DAC) had, at the beginning of 2009, focused on enhancing competitiveness, upgrading investment in technology, improving quality of staff and risk management, etc, in order to strengthen the foundation that will propel them to become leading companies in securities brokerage, consulting, IPO service, securities depository, and assets management. Operating as a conglomerate following consolidated management principles based on generally-accepted best practices, DAS and DAC are able to provide complete and quality securities and fund management products for customers. In particular to investment and technology development, DAS has completed and launched the DataCenter securities system for fast and precise order processing realtime. In 2009, the Core Securities program was launched, providing investors with advanced applications such as online order placement and processing, online advance placement, online transfers and more. Investors receive precise and immediate information on the status of securities, profit and loss, and cash flow of their portfolio. DAS is currently seen as one of the companies with the fastest transaction turnover in stock exchange trading. DAS was also one of the few first-batch companies that successfully linked up with online trading of Hanoi Securities Trading Center in early 2010. To capitalize on opportunities presented by market recovery that started in end 2009, DAS continued to establish new trading centers in HCMC, Hue, and Da Nang.
One of DASs long-term targets is to expand its network in key economic centers, widen business opportunities and offer packaged solutions in securities services for investors. Aside from business development and expansion, DAS exerts effort to uphold and implement risk management procedures and internal control measures, with a strong focus on cross-functional review and regular oversight by independent and qualified experts. 2009 was an extremely difficult year for the fund management sector which saw the exit of a number of foreign funds from the market. However, DAC proved to be an exception. Its assets has increased 155% compared to that of 2008, its average asset balance in 2009 was VND 1,436 billion. Despite its recovery in 2009, the securities market still carries latent risks and challenges as it remains sensitive to and easily influenced by investors disposition, Government policies and movements in the global market. In the face of such obstacles, DAS and DAC still managed to operate effectively and develop further. After increasing provisions for investment to ensure sustainability, profit still exceeded VND 25 billion, a performance which underlined the concerted effort of management and staff.
28
network of donga securities & donga Capital donga securities Head Office Ha Noi Branch Cho Lon Branch Hue Securities Trading Office Da Nang Securities Trading Office donga Capital Head Office 56-58 Nguyen Cong Tru St., District 1, HCMC 57 Quang Trung St., Hai Ba Trung District, Ha Noi 110C Ngo Quyen St., District 5, HCMC 209 Ba Trieu St., Hue City 238 Le Duan St., Hai Chau District, Da Nang City
56-58 Nguyen Cong Tru St., District 1, HCMC
Having set the platform for future sustainable growth through preemptive human resource planning and business infrastructure, and anticipating potential upsides in the Vietnam economy and securities market, DAS and DAC enter into 2010 with full confidence of greater success and development.
29
Member Companies (continued)
DongA Money Transfer Company Ltd
5. 174 Counter-transaction locations DongA Money Transfer increased its network of countertransaction locations by 16% versus 2008. This provided customers with better access to services at more convenient locations. 6. Successful launch of a new service DongA Money Transfer collaborated with DongA Bank to provide outward remittance service to the US, Canada, Australia, etc. This new service serves the increasing needs of domestic customers for overseas remittance to take care of education, healthcare, and other expenses. Despite the massive challenges experienced by the money transfer market in Vietnam in 2009, DongA Money Transfer maintained its leading position through a strong performance and further gains in brand loyalty amongst partners and customers. 1. Gains in key performance indicators a. Further gains in market share with total remittances of USD 991 million, accounting for 16% of the countrys money transfer market. b. ROE of DongA Money Transfer grew 15% in 2009 versus 2008, which outperformed the sector growth. This underlined the strong competitiveness of DongA Money Transfer and its significant gains in competitive advantage. 2. Increase in new partners DongA Money Transfer cooperated with more than 10 new partners in key markets such as the US, Canada, Australia, as well as potential markets such as Malaysia, the Middle East, and Taiwan. In particular, DongA Money Transfer was successful in the Australian market in 2009, which significantly contributed to the increase in remittance revenue. 3. Faster remittance Customers in urban areas can now receive the remittance within 3 hours instead of the previous 6 hours. In other provinces, the remittance lead-time has been reduced from 12 hours to 6 hours. 4. Development of home remittance services Home remittance services was successfully implemented, creating a key difference and competitive advantage for DongA Money Transfer. 7. Added value to customers The program Gift from Vietnam Warm Love from Homeland allows remittance recipients in Vietnam to reciprocate their relatives living overseas with local newspapers at preferential postage rate. This service is also a channel to enable Vietnamese living overseas to keep abreast of local events and culture, and keep them in touch with their homeland. 8. Responding to new opportunities DongA Money Transfer proactively raised capital funding, effectively executed business plans, created alternative income streams, maximized internal capabilities, and leveraged external resources to help us diversify our business and mitigate risks, and set the stage for sustainable development. The money transfer market in 2010 is expected to recover with the onset of modern payment methods, thus, DongA Money Transfer has made preemptive investments in technology infrastructure to introduce new payment methods of money transfer to establish the companys brand in the overseas market and to consolidate its leading position in the domestic market. DongA Money Transfer Network
DongA Money Transfer District 5 Branch Quang Binh Province Branch Nghe An Province Branch Thanh Hoa Province Branch 122 Phan xich Long St., Ward 2, Phu Nhuan District, HCMC 13-15 Trieu Quang Phuc St., Ward 10, District 5, HCMC 33 Ly Thuong Kiet St., Dong My Ward, Dong Hoi City, Quang Binh Province 83B Nguyen Thi Minh Khai St., Vinh City, Nghe An Province 156 Quang Trung St., Ngoc Trao Ward, Thanh Hoa City, Thanh Hoa Province
30
Quang Tri Province Branch 54 Le Duan St., Ward 1, Dong Ha City, Quang Tri Province
Vi Na Brilliant Card JSC (V.N.B.C.)
Inaugurated in October 2008, V.N.B.C. JSC promptly established itself as a leading provider of total solutions for the finance & banking sector and related fields. Driven by our aspiration to become the leading financebased technology company in Vietnam, each and every V.N.B.C. product is a result of the uncompromised dedication, knowledge and passion of our competent, enthusiastic, young and ambitious team, combined with our rich experience and capabilities in international collaborations. Services Aside from the VNBC ATM Switch System, we also provide various equipment and services for the banking sector, such as supply of ATM/Deposit/POS/Counting machine, maintenance service, leasing of ATM, investment in manufacture and trading of equipment for the banking sector and other services. V.N.B.C. also provide advisory support on technical solution for the development of bank card business. V.N.B.C.s achievements Expanded the VNBC membership, and is currently the only system with membership comprising foreign banks. Upgraded the system with Euronet solution to provide advanced features and user interfaces.
Successfully implemented the new bank-to-bank online transfer feature advanced, unique and first-of-its-kind in Vietnam. In the first half of 2009, our engineers coordinated with Mercuries Data System Corporation (MDS) and successfully tested and launched the MDS3000, a full-function but low-cost ATM machine. On 1 September 2009, MDS officially granted to V.N.B.C. the right of exclusive distribution and maintenance service for all MDS ATMs in the Indochina market. This event marked a new step of development for V.N.B.C. in the banking equipment business. On 3 December 2009, VNBC and Smartlink ATM Switch systems were officially integrated. Initially, card holders of Vietcombank, Techcombank, and DongA Bank could make cash transactions, check balance, generate account statement, and transfer funds at over 3,000 ATMs belonging to these three banks, which account for approximately 35% of the total number of ATMs in the market. Based on the implementation roadmap, Smartlink and V.N.B.C. will expand the ATM integration coverage to 10 banks by the first half of 2010, followed by the remaining banks in their respective system. On top of ATM integration, Smartlink and V.N.B.C. also worked hand in hand to provide payment services on electronic channels such as POS, Internet, and mobile phone for banks to bring additional convenience to card users as well as retailers/suppliers in the domestic market. DongA Bank Annual report 2009
31
engagemenT wiTh
COMMUNITY
ng hnh Cng Cng ng

DongA Bank continuously pays special attention to social activities in an attempt to conserve traditional values through educational assistance programs, microbanking loans, among others. It is an honor to engage in the communitys development.
Charitable and Community activities
Community activities
1. appreciating heroic acts To promulgate patriotism and pride for our nation, DongA Bank spends more than VND 60 million to conduct regular visits to mothers of Vietnamese heroes, families of martyrs and wounded soldiers and other citizens who have devoted their lives to our country. DongA Bank also commemorated the 62nd anniversary of Martyrs and Wounded Soldiers Day, with an expenditure of VND 100 million and provided VND 600 million worth of support for the beloved Truong Sa islands. 2. Caring for society The Bank provided more than VND 500 million worth of assistance for the Worker Support Program to help needy workers overcome difficulties. The Bank also participated in various themed fairs to facilitate friendly interactions with workers, and offered more than VND 700 million as a financial assistance package for victims of natural disasters in Central and Highland regions. The Bank organized games for children on the occasion of International Childrens Day, Cultural festival, and Mid-Autumn festivals, etc. Notably, the Bank awarded more than VND 100 million worth of scholarships to underprivileged children. The Bank also participated in the Million pens, million notebooks program and donated 2,000 notebooks as well as gifts to needy children in Bao Loc (Lam Dong) province and Can Gio (HCMC). The Bank provided free meals (worth VND 6,000 per meal) for senior citizens living alone in Phu Nhuan District for the past 10 years. The Bank also visited the elderly and distributed presents worth approximately VND 20 million to them on the occasion of the Mid-Autumn festival. Spent about VND 500 million on various young talent scholarship and education promotion programs. Awarded 250 scholarships to pupils and students nationwide as well as other exchange programs, coordinated and sponsored by various units of DongA Bank nationwide. 3. social welfare and Community-support programs DongA Bank contributes to social welfare and community-support programs in the vicinity whenever it opens a new branch, and has so far provided 14 compassionate houses for the poor, built 2 traditional community houses, and awarded 46 scholarships to underprivileged pupils and issued free ATM cards for local residents. The Bank has taken part in over 8 charity walks, such as the Walking for the Poor Charity Walk in Phu Nhuan District, to which the Bank contributed VND 200 million, Schooling Support program and also the Vietnamese products for Vietnamese campaign, etc. In 2009, DongA Bank spent VND 3,884,039,000 and made other in-kind contributions to charitable and social activities.
union and party activities

Aside from our mainstream business activities, DongA Bank also paid attention to the development of political cadres within the organization. Tasked with the responsibilities of the Party and Union Office, 104 active Party members of 9 Party cells together with the Labor Union and Youth Union participated in some meaningful programs such as DongAs Smiles and Clean ATM Booths, etc. In view of its achievements in 2009, the Party Committee of DongA Bank deservingly received a number of awards, such as the Transparent and Powerful Party Committee, the Outstanding Labor Union of DongA Bank and the Emulation Flag 2009. DongA Bank was also recognized as a distinguished leading bank in the commercial joint stock category, and, last but not least, received the recognition of Excellent Union of 2009.
34
Achievements and social Recognition

proud accomplishments
Key Enterprise in the Application of Modern Technology Saigon Entrepreneur Award for Mr. Tran Phuong Binh, Chief Executive Officer of DongA Bank Holder of Vietnam Guinness Record for being the first bank to operate mobile ATM network, awarded by Vietnam Book and Record Center Leading Brand Award in 2009 Winner of the 6th Vietnam Brand Gold Cup presented by Science and Technology Union Association of Vietnam and carried out by Vietnam Brand Journal Golden Brand Award, Outstanding Logo and Slogan Award in 2009, Awarded by VATAP and Vietnam Ministry of Industry and Trade during the 3rd anniversary ceremony of Anti- Counterfeit Day Won the Prestigious Securities Brand category of the Unlisted Securities Brand Awards 2009, organized by Vietnamese Association of Securities Business (VASB), State Securities Committee (SSC) and other related partner units Emulation Flag granted by the Government for achieving excellent performance (July 2009).
DongA Bank ANNUAL REPORT 2009
35
ACHIEVEMENTS
nhng Thnh Qu T C
highlighTs of
DongA Bank commits to continuous improvement and reforms to enhance its business efficiency. By implementing a strategy focused on strengthening its human resource capabilities and upgrading IT infrastructure, DongA Bank has established a strong and solid foundation for future growth through advanced products and services that create outstanding competitive advantages in the market.
Key Events of the Year
DongA Banks network now spans over 173 branches and transaction offices and 24-hour Banking transaction centers spread throughout various cities & provinces nationwide.
1. accomplished business plan for 2009 DongA Bank turned in a profit before tax of VND 788 billion in 2009, which exceeded business plan by VND 38 billion. The Bank also delivered other operating targets, most noteworthy was the issuance of another 1.5 million bank cards, which met the target and grew the card business by 96% versus 2008. This is a remarkable achievement in the general context of an economy and banking sector emerging from the difficulties and challenges brought by the global economic crisis in 2008. 2. Creating a humane brand image Besides business operations, DongA Bank also actively engaged in meaningful charitable and social activities. Such activities include paying tribute to mothers of Vietnamese heroes and families of martyrs and wounded soldiers; providing support for the program For the beloved Islands, presenting compassionate houses for the underprivileged, supporting the elderly and poor laborers working at industrial parks and processing zones; providing aid for victims of natural disasters; supporting blood donation drive; organizing programs such as Support for Teachers, Grateful Pen Strokes, Awards for Top Students of the University and College entrance examinations; offering exclusive sponsorship for HCMC Overseas Vietnamese Students Club (OVS); supporting the program Million pens, million notebooks in partnership with Thanh Nien newspaper and participating in various charity walks such as Walking for the Poor, Vietnamese Products for Vietnamese, etc. 3. donga vip banking Besides the strategy of extending banking services to mainstream customers, DongA Bank also developed a premier and differentiated suite of services that caters exclusively to the needs of VIP customers. With elegant interior design, luxurious space and sublime customer care services, DongA VIP Banking has redefined banking and finance services to discerning customers. DongA VIP Banking was officially launched to both markets in Hanoi City and HCMC in end 2009. 4. welcoming the year 2010 with Thanks from donga program The customer base of DongA Bank reached 4 million as of end-2009 which is the most valuable asset of DongA Bank over its 17 years of operation. In appreciation of the loyalty and trust of customers, we rolled out the Thanks from DongA program with the theme Transact more - Gain points - Fulfill dreams. All transactions with DongA Bank during the specified period will be converted into bonus points and may be exchanged for thousands of valuable prizes. 5. prioritizing training for managers DongA Bank conducted a training course for potential managers and two executive development courses for existing managers during the year, with a total attendance of 160 participants. The objective is to build a bench-strength of young managers with functional competencies and management skills, supporting the Banks development needs. 6. ground-breaking ceremony for several modern offices DongA Bank opened a number of new offices consistent with the design of its modern Headquarters Building. Viewing of DongA Banks modern facilities can be seen at these locations: HCMC: Tan Binh Branch, Bach Dang Transaction Office, Au Co Transaction Office, Hoc Mon Postal & Transaction Office
38
Mekong Delta Region: Tien Giang Branch, Ben Tre Branch, Tra Vinh Branch South-eastern Region: Binh Phuoc Branch Northern Region: Bac Giang Branch, Hai Duong Transaction Office, Thai Binh Branch Central Region: Hue Branch, Quang Ngai Branch The entire DongA Banking network comprises 173 branches and 24-hour Banking transaction centers spread across various cities and provinces nationwide. 7. alliance between vnbC and smartlink VNBC and Smartlink systems were formally integrated to provide system-compatible payment services through various electronic transaction channels. The initial phase integrated the ATM systems of the first 3 participating banks, namely Vietcombank, Techcombank and DongA Bank. Cardholders of the three above-mentioned banks can now perform transactions such as cash withdrawal, balance inquiry, bank statement generation and fund transfer at any of over 3,000 ATM transaction points within the system of the 3 banks. The parties also coordinated to provide payment services through other electronic transaction channels such as POS, internet and mobile phone for the convenience of card users as well as retailers and suppliers of products and services in the domestic market. 8. new Cards, new features Aside from the DongA multi-purpose ATM card which has dominated the domestic market, DongA Bank has integrated the advanced features of the multi-purpose ATM card to develop new types of ATM cards serving different user segments: Securities Card, Pensioners Card, Students Link Card, Doctors Card specifically for medical practitioners; Shopping Card for consumers purchasing high-quality Vietnamese products and Teachers Card for the teaching profession, etc. 9. high-impact services and products Launched in February 2009, the 24-minute Loan disbursed via the DongA Bank Card account, is a loan product designed for all, following simple lending procedures where approval is processed within 24 minutes. Reaching the milestone of 500,000 customers transacting through DongA eBanking channels, a portfolio exceeding 30 products, and an average transaction value of VND 2,000 billion per month, DongA Bank has the largest electronic transaction channel, which further enhances its image as a dynamic and modern retail bank. In September 2009, DongA Bank issued a guide book titled How to Reduce Inconveniences in Life for customers using the multi-purpose ATM cards. Using cartoon designs and lively illustrations, the guidebook provides hypothetical embarrassing situations which customers can be placed in at any time in their daily life. Each situation features a corresponding tactful and unexpected solution as also illustrated in the guide book.
In the past year, DongA Bank implemented the 1km Live Coverage direct-marketing program in order to introduce the multipurpose ATM Card and other banking services directly to households and businesses located within the 1km radius of every DongA Bank transaction office nationwide. 10. prestigious brand During the past year, DongA Bank was honored to receive valuable awards granted by prestigious institutions such as: Vietnam Brand 2009; Golden Brand 2009; Impressive Logo and Slogan 2009; Key Enterprise Applying IT; Prestigious Securities Brand 2009; and Certificate of Recognition awarded by Vietnamese Book and Record Center for being the first bank in Vietnam to introduce mobile ATM system, etc. These prestigious awards are crucial to DongA Bank and inspire us along the journey of opportunities and challenges as we develop into the Best Retail Bank of 2010 selected by customers.
39
Operations Review 2009
The Banks profit before tax was VND 788 billion, which exceeded the target by VND 38 billion.
vietnams economic overview in 2009

The concerted effort of various governments in 2009, together with effective solutions, enabled the world to arrest the global financial crisis. The world economy has made a gradual recovery, while the stock market has shown some positive signs. However, gold prices increased drastically, further complicated by market volatility. This has a serious impact on the balance of payments for many countries. The Vietnam economy faced many difficulties in the face of complex volatility. The Vietnamese Government introduced a number of solutions to stem the economic slowdown, such as: adopting a flexible monetary policy (including interest and exchange rates) and rolling out of the stimulus package, etc. Through timely and effective solutions, Vietnam not only avoided a recession but also posted a GDP growth rate of over 5% in 2009, while the Consumer Price Index increased by more than 7%. The banking and finance sector faced many difficulties (especially concerning year-end liquidity). In spite of that, the sector continued its stable development and achieved a fairly strong growth rate. DongA Bank has firmly established its strong market position after 17 years of operation. With strong capabilities in technology, the Banks services are comprehensive, convenient and accessible to users. In the past year, DongA Bank has made stable progress together with various key events to become a highly reliable joint stock commercial bank to millions of customers. The bank also managed to deliver the committed targets.
40
operational highlights 2009

In more than 17 years of operation, DongA Bank has consistently maintained its sustainable growth rate. This is evident in the business results of DongA Bank for the past 5 years as follows: TargeT
Total Assets Total Owners Equity Charter Capital Average Balance of Capital Mobilization Average Outstanding Loan Balance Revenue of Trade Finance Operations Revenue from Remittance Number of Issued Cards within the year Total Revenue Profits Before Tax Profits After Tax
uniT
VND Billion VND Billion VND Billion VND Billion VND Billion USD Million USD Million Cards VND Billion VND Billion VND Billion
2009
42,520 4,200 3,400 33,392 29,464 2,533 991 1,483,993 3,954 788 588
2008
34,713 3,515 2,880 27,543 23,463 2,383 1,181 755,887 4,444 703 539
2007
27,376 3,229 1,600 14,007 11,513 2,039 1,000 724,351 2,287 454 332
2006
12,040 1,531 880 8,584 6,635 1,365 755 626,890 1,451 211 160
2005
8,516 712 500 6,576 5,330 1,095 689 322,063 693 139 101
2009 2008 2007 2006 2005

500 880 1,600 2,880
3,400
2009 2008 2007 2006 2005

712 1,531 3,515 3,229
4,200
Charter capital
Total owners equity
2009 2008 2007 2006 2005

12,040 8,516 27,376 34,713
42,520
2009 2008 2007 2006 2005

8,584 6,576 14,007 27,543
33,392
Total assets
average balance of capital mobilization
2009 2008 2007 2006

6,635 11,513 23,463
29,464
2009 2008 2007 2006

1,365
2,533 2,383
DongA Bank 2,039 Annual report 2009
41
2008 2007
27,376
34,713
2008 2007 2006 2005

8,584 6,576 14,007
27,543
2006 12,040 Operations Review 2005 20098,516 (continued)
2009 2008 2007 2006 2005

6,635 5,330 11,513 23,463
29,464
2009 2008 2007 2006 2005

1,365 1,095
2,533 2,383 2,039
average outstanding loan balance
revenue of trade finance operations
2009 2008 2007 2006 2005

322,063 755,887 724,351 626,890
1,483,993
2009 2008 2007 2006 2005

139 211 454 703
788
number of issued cards within the year
profits before tax
financial highlights 2009

TargeT Total assets Charter capital Average balance of capital mobilization Average credit balance Revenue of trade finance operations Consolidated profits before tax
Total assets As at end 2009, total assets reached VND 42,520 billion, a 22% increase over 2008 and 106% delivery of plan. Of which, mobilized capital amounted to VND 36,714 billion, a 23% increase compared to the beginning of 2009. The Bank ensured a robust oversight on liquidity management. Simultaneously, the Banks charter capital was increased to VND 3,400 billion and Shareholders Equity stood at VND 4,200 billion.
uniT VND Billion VND Billion VND Billion VND Billion USD Million VND Billion
aChieved 42,520 3,400 33,392 29,464 2,533 788

Credit operations
plan 40,000 3,400 32,000 29,000 2,400 750
aChieved/plan 106% 100% 104% 100% 105% 105%
Total outstanding loan as of 31/12/2009 stood at VND 34,687 billion, a 36% increase over 2008. The average credit balance reached VND 29,464 billion, which met 100% of the planned target. Overdue debt is tightly managed and within the year, DongA Bank has closely identified overdue debts as well as made provisions for credit risks as per State Bank regulations. The proportion of overdue debt is just 2% of total debt balance as of 31/12/2009.
42
Foreign exchange and gold trading Foreign exchange operations meet the demands of customers for trade financing and provide timely support for remittances. The total value of foreign currency purchases converted into USD reached USD 6.5 billion in 2009, an 80% increase over 2008. The value of foreign currency sales amounted to USD 6.6 billion, an 82% increase over 2008. Investment activities Total investments of DongA Bank amounted to VND 1,457 billion as of 31/12/2009, in which:
year 2008 (vnd million) Total investments 1. Trading securities Trading securities Net gain/loss from dealing of trading securities 2. investment securities Securities-available-for-sales Securities-held-to-maturity Provision for impairment of long-term investments 3. long-term investments Other Long Term Investments Provision for impairment of long-term investments 1,200,493 243,934 278,946 (35,012) 135,801 143,549 13,383 (21,131) 820,758 820,758 -
year 2009 (vnd million) 1,457,041 386,730 428,504 (41,774) 359,201 350,868 8,333 711,110 740,493 (29,383)
Trade finance operations Revenue of trade finance operations reached USD 2,533 million, a 6.3% increase over 2008 and achieved 105% of the set target. In March 2009, DongA Bank was honored to receive the Straight - Through Processing (STP) award granted by Standard Chartered Bank in recognition of DongA Banks achievements in the field of trade finance operations. This is the third consecutive year that DongA Bank was granted this prestigious award from reputable international banks such as: Deutsche Bank A.G, Standard Chartered Bank, The Bank of New York, American Express Bank (2007) and Wachovia Bank (2008). Cards DongA Bank focused on the development of the card business through programs such as the Cards for 100% Savings Account Customers, and the 1km-Live Coverage
marketing program, which increased the number of issued cards in 2009 to 1.5 million, a 96% increase over 2008 and met the set target. The cumulative number of cards issued by DongA Bank is now 4 million. Fast money transfer In 2009, the fast money transfer operations of DongA Bank generated a revenue of VND 6,179 billion, an 8% increase over 2008. Bill collection and payment services The total revenue for this service came in at VND 34,710 billion in 2009, a 50% increase over 2008, and the number of enterprises using this service increased by 1,718 year-on-year.
43
Key financial indicators 2009

Changes in Shareholding: Charter Capital updated as at 31 of December 2009 was VND 3,400 billion. Dividends Paid in 2009 stood at 12%. Unit: VND Billion no. 1 2 3 4 5 6 7 8 9 10 Total assets Charter capital Total owners equity Capital adequacy ratio (%) Total revenue Reserve fund for credit risk Profits before tax Profits after tax Net profit/share capital (ROEA) Net profit/total assets (ROAA) index 2009 42,520 3,400 4,200 10.64% 3,954 345 788 588 18.06% 1.49% 2008 34,713 2,880 3,515 11.30% 4,444 267 703 539 18.01% 1.69% 2007 27,376 1,600 3,229 14.36% 2,287 64 454 332 20.89% 2.05% 2006 12,040 880 1,531 13.57% 1,451 14 211 160 23.50% 1.55% 2005 8,516 500 712 8.94% 693 12 139 101 16.20% 1.35%
Business targets 2010

Profits before tax set at VND 1,100 billion, an increase of 41% over 2009. Total assets set at VND 60,000 billion, an increase of 42% over end-2009. Total paid-up capital set at over VND 50,000 billion, an increase of 39% over end 2009. Total outstanding loan set at VND 43,000 billion, an increase of 25% over end-2009. Total value of international payment estimated at over USD 2,600 million, an increase of 3% over end-2009. Revenue from outward remittance payment estimated at USD 1,000 million, an increase of 1% over 2009. Issuance of additional 1,000,000 DongA Bank Cards. Increase charter capital to minimum VND 6,000 billion and to list shares on the stock exchange. Expand operations network by upgrading transaction centers to branches at provinces without existing branches; set up additional transaction centers in provinces. Continue training for key positions and conducting professional courses for management and staff.
44
CONTENTS
Pages
REPORT OF THE BOARD OF DIRECTORS
1-2
AUDITED CONSOLIDATED FINANCIAL STATEMENTS Independent auditors report Consolidated balance sheet Consolidated income statement Consolidated statement of retained earnings Consolidated cash flow statement Notes to the consolidated financial statements 3 4-6 7 8 9 - 10 11 - 60
DONGA COMMERCIAL JOINT STOCK BANK AND ITS SUBSIDIARIES REPORT OF THE BOARD OF DIRECTORS
The Board of Directors of DongA Commercial Joint Stock Bank (the Bank) presents this report and the consolidated financial statements of the Bank and its subsidiaries as at and for the year ended 31 December 2009. THE BANK DongA Commercial Joint Stock Bank (hereinafter referred to as the Bank) is a joint stock commercial bank established in the Socialist Republic of Vietnam. The Bank is established and operated in accordance with Banking License No. 0009/NH-GP issued by the State Bank of Vietnam (SBV) on 27 March 1992 and Decision No. 135/QD-UB issued by the Peoples Committee of Ho Chi Minh City on 16 April 1995. The Banks operational duration is 99 years. The Banks principal activities are to provide banking services throughout Vietnam including receiving short, medium and long-term deposits from organisations and individuals; making short, medium and long-term loans and advances to organisations and individuals based on the nature and capability of the Banks sources of capital; providing foreign exchange transactions, international trade financial services, discount of commercial papers, bonds and other valuable papers; providing settlement services and other banking services allowed by the State Bank of Vietnam. The Banks head office is located at 130 Phan Dang Luu Street, Phu Nhuan District, Ho Chi Minh City, Vietnam. As at 31 December 2009, the Bank has one (1) head office, one (1) transaction center, one hundred and seventy two (172) branches and transaction offices located in cities and provinces throughout Vietnam. RESULTS OF OPERATIONS AND DIVIDENDS The summary of the operating results and dividends of the Bank is as follows: VND million 2009 Net profit for the year Dividends declared and paid during the year Retained earnings at the year-end 587,648 366,400 600,832 2008 538,737 582,200 527,585
THE BOARD OF DIRECTORS The members of the Board of Directors during the financial year of 2009 and at the date of this report are: Full name Mr Pham Van Bu Ms Vu Thi Vang Mr Dang Phuoc Dua Mr Tran Phuong Binh Mr Trang Thanh Suong Mr Nguyen Dinh Truong Ms Nguyen Thi Ngo Mr Nguyen Quang Minh Mr Nguyen Quoc Danh Title Chairman First Deputy Chairwoman Deputy Chairman Member Member Member Member Member Member Date of appointment/ resignation Appointed on 23 August 2007 Appointed on 23 August 2007 Appointed on 23 August 2007 Appointed on 23 August 2007 Appointed on 23 August 2007 Appointed on 23 August 2007 Appointed on 23 August 2007 Resigned on 17 March 2009 Resigned on 17 March 2009
DONGA COMMERCIAL JOINT STOCK BANK AND ITS SUBSIDIARIES REPORT OF THE BOARD OF DIRECTORS
EVENTS AFTER THE BALANCE SHEET DATE There have been no significant events occurring after the balance sheet date which would require adjustments or disclosures to be made in the consolidated financial statements. AUDITORS The auditors, Ernst & Young Vietnam Limited, have expressed their willingness to accept reappointment. STATEMENT OF THE MANAGEMENTS RESPONSIBILITIES IN RESPECT OF THE CONSOLIDATED FINANCIAL STATEMENTS The Banks management is responsible for preparing the consolidated financial statements for each financial year which give a true and fair view of the state of affairs of the Bank and its subsidiaries and of their results of operations and their cash flows for the year. In preparing the consolidated financial statements, the management is required to: Select suitable accounting policies and then apply them consistently; Make judgments and estimates that are reasonable and prudent; State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the consolidated financial statements; and Prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Bank and its subsidiaries will continue in business. The Banks management is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the financial position of the Bank and to ensure that the accounting records comply with the registered accounting system. It is also responsible for safeguarding the assets of the Bank and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Management has confirmed to the Board of Directors that it has complied with the above requirements in preparing the accompanying consolidated financial statements. APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS We hereby approve the accompanying consolidated financial statements which give a true and fair view of the financial position of the Bank and its subsidiaries as at 31 December 2009 and the result of their operations and of their cash flows for the year then ended in accordance with the Vietnamese Accounting Standards and System for credit institutions and comply with relevant regulations of the State Bank of Vietnam and the Ministry of Finance.
On behalf of the Board of Directors:
Mr Pham Van Bu Chairman Ho Chi Minh City, Vietnam 31 January 2010
DONGA COMMERCIAL JOINT STOCK BANK AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEET
as at 31 December 2009 Notes ASSETS Cash, gold and precious stones Balances with the State Bank of Vietnam (the SBV) Due from credit institutions Placements with other credit institutions Loans and advances to other credit institutions Provision for loans and advances to other credit institutions Trading securities Trading securities Provision for a decline in value of trading securities Derivatives and other financial assets Loans and advances to customers Loans and advances to customers Provision for loans and advances to customers Investment securities Securities - available-for-sale Securities - held-to-maturity Provision for a decline in value of investment securities Long-term investments Investments in joint-ventures Investments in associates Other long-term investments Provision for impairment of long-term investments Fixed assets Tangible fixed assets Cost Accumulated depreciation Financial lease Cost Accumulated depreciation Intangible assets Cost Accumulated amortisation Investment properties Cost Accumulated depreciation Other assets Receivables Interest and fee receivables Deferred tax asset Other assets In which: Goodwill Provision for doubtful debts TOTAL ASSETS 31 December 2009 2,615,111 1,230,380 939,034 607,097 331,937 386,730 428,504 (41,774) 34,010,811 34,355,544 (344,733) 359,201 350,868 8,333 711,110 740,493 (29,383) 793,784 574,915 868,155 (293,240) 218,869 237,089 (18,220) 1,474,241 582,982 172,133 719,126 42,520,402 VND million 31 December 2008 (as restated) 2,036,886 770,624 2,764,121 2,764,121 243,934 278,946 (35,012) 25,303,892 25,570,810 (266,918) 135,801 143,549 13,383 (21,131) 820,758 820,758 549,467 483,844 676,169 (192,325) 65,623 75,723 (10,100) 2,087,709 521,342 429,074 10,589 1,126,704 34,713,192
3 4 5
7 8 9 9.1 9.2
10 12 12.1
12.2
13 13.1 13.2 19 13.3
DONGA COMMERCIAL JOINT STOCK BANK AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEET (continued)
as at 31 December 2009 Notes 31 December 2009 VND million 31 December 2008
LIABILITIES Borrowings from the Government and the SBV Due to credit institutions Deposits from other credit institutions Borrowings from other credit institutions Due to customers Derivatives and other financial liabilities Grants, entrusted funds and loans exposed to risks Valuable papers issued by the Bank Other liabilities Interest and fee payables Deferred tax liability Other payables Provision for contingent liabilities and off-balance sheet commitments TOTAL LIABILITIES
14 14 15 17 16 18 19
19 4,767,739 4,545,991 221,748 27,973,540 291,047 3,682,086 1,605,448 337,304 19,131 1,249,013 38,319,879
3,611,521 3,611,521 23,010,437 203,966 2,970,812 1,401,502 602,466 799,036 31,198,238
OWNERS EQUITY Capital and reserves Charter capital Fund for capital expenditure Shares premium Treasury shares Preference shares Other capital Reserve funds Foreign currency translation reserve Asset revaluation reserve Retained earnings TOTAL OWNERS EQUITY
20 20.1
20.1 20
20.1
3,400,553 3,400,000 553 199,138 600,832 4,200,523 42,520,402
2,880,521 2,880,000 521 106,848 527,585 3,514,954 34,713,192
TOTAL LIABILITIES AND OWNERS EQUITY
DONGA COMMERCIAL JOINT STOCK BANK AND ITS SUBSIDIARIES CONSOLIDATED BALANCE SHEET (continued)
as at 31 December 2009 OFF BALANCE SHEET ITEMS Notes 31 December 2009 2,824,180 1,986,827 837,353 2,824,180
VND million 31 December 2008 2,612,291 1,872,861 739,430 2,612,291
Contingent liabilities Financial guarantees Letters of credit Other guarantees Commitments Commitments to customers Other commitments TOTAL
34
Prepared by :
Approved by:
Approved by:
Ms Dang Boi Quynh General Accountant Ho Chi Minh City, Vietnam 31 January 2010
Ms Vo Thi Kim Anh Chief Accountant
Mr Tran Phuong Binh General Director
DONGA COMMERCIAL JOINT STOCK BANK AND ITS SUBSIDIARIES CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2009 VND million Notes Interest and similar income Interest and similar expenses Net interest income Fee and commission income Fee and commission expenses Net fee and commission income Net gain from foreign currencies and gold trading Net gain from dealing of trading securities Net gain from dealing of investment securities Other operating income Other operating expense Net other operating income Income from long-term investments TOTAL OPERATING INCOME Personnel expenses Depreciation and amortisation charges Other operating expenses TOTAL OPERATING EXPENSES Net operating profit before credit loss expense Credit loss expense PROFIT BEFORE TAX Current corporate income tax expense Deferred corporate income tax (expense)/credit Total corporate income tax NET PROFIT FOR THE YEAR Attributable to: - The Banks shareholders - Minority interest Basic earnings per share (VND) Prepared by: Approved by: 23 24 25 25 25 26 27 28 2009 3,325,056 (2,218,224) 1,106,832 272,570 (52,858) 219,712 262,492 4,916 64,690 4,013 (226) 3,787 1,152 1,663,581 (280,770) (110,703) (337,504) (728,977) 934,604 (146,848) 787,756 (170,388) (29,720) (200,108) 587,648 587,648 1,914 Approved by: 2008 (as restated) 3,815,708 (2,971,376) 844,332 203,524 (52,132) 151,392 333,365 12,672 16,377 113,282 (570) 112,712 8,221 1,479,071 (215,987) (82,288) (267,435) (565,710) 913,361 (210,192) 703,169 (175,021) 10,589 (164,432) 538,737 538,737 1,871
29
30
8 19 19
21
DONGA COMMERCIAL JOINT STOCK BANK AND ITS SUBSIDIARIES CONSOLIDATED STATEMENT OF RETAINED EARNINGS
for the year ended 31 December 2009 VND million Notes RETAINED EARNINGS AT THE BEGINNING OF THE YEAR Net profit for the year EARNINGS BEFORE APPROPRIATIONS Less: - Appropriation to reserves for previous year - Appropriation to reserves of subsidiaries for the current year - Dividends distributed for the previous year - Other increases - Other decreases RETAINED EARNINGS AT THE END OF THE YEAR Less: - Interim dividends for current year RETAINED EARNINGS AVAILABLE FOR APPROPRIATION TO RESERVES AND FURTHER DIVIDENDS 2009 2008
20.1 20.1
527,585 587,648 1,115,233 (140,627) (6,472) (367,200) 70 (172) 600,832 (366,400) 234,432
320,879 538,737 859,616 (115,807) (215,000) (1,224) 527,585 (367,200) 160,385
20.1 20.1 20.1 20.1
13.3
Prepared by:
Approved by:
Approved by:
DONGA COMMERCIAL JOINT STOCK BANK AND ITS SUBSIDIARIES CONSOLIDATED CASH FLOW STATEMENT
as at and for the year ended 31 December 2009 VND million Notes CASH FLOWS FROM OPERATING ACTIVITIES Interest and similar receipts Interest and similar payments Fees and commission income received Net receipts from dealing of foreign currencies, gold and securities Other operating income Recovery from bad debts written-off previously Payments to employees and other operating expenses Corporate income tax paid during the year Net operating cash flows before changes in net operating assets and liabilities Changes in operating assets (Increase)/decrease in due from credit institutions (Increase)/decrease in trading securities (Increase)/decrease in derivatives and other financial assets Increase in loans and advances to customers Decrease in provision for write-off of loans, securities and long-term investments Decrease/(increase) in other assets Changes in operating liabilities Increase/(decrease) in borrowings from the Government and the SBV Increase/(decrease) in due to banks Increase in due to customers (including State Treasury) Increase in valuable papers issued by the Bank Increase in grants, entrusted funds and loans exposed to risks Increase/(decrease) in derivatives and other financial liabilities Increase/(decrease) in other liabilities Reserves utilised during the year Net cash flows used in operating activities CASH FLOWS FROM OPERATING ACTIVITIES Purchase of fixed assets Proceeds from disposal of fixed assets Cost from disposal of fixed assets Purchase of investment property Proceeds from disposal of investment property Cost from disposal of investment property Payments for investments in joint ventures, associates and other entities Receipts from investments in joint ventures, associates and other entities Dividend receipts from long-term investments Net cash flows used in investing activities 2009 2008 (as restated) 3,658,441 (2,608,657) 151,392 372,455 2,721 21,225 (474,716) (226,459) 896,402 (7,858,763) 32,296 245,639 (7,713,376) (7,064) (416,258) 6,854,831 (2,459,053) 8,681,126 1,915,304 3,230 (1,248,980) (36,796) (107,530) (307,262) 259 (181,571) 8,221 (480,353)
19
3,581,997 (2,483,386) 219,712 270,590 170 3,611 (624,428) (171,733) 796,533 (9,011,544) (153,072) (351,827) (8,784,734) (69,033) 347,122 7,343,709 1,156,218 4,963,122 711,274 87,081 482,775 (56,761) (871,302) (353,248) 6 80,265 1,152 (271,825)
DONGA COMMERCIAL JOINT STOCK BANK AND ITS SUBSIDIARIES CONSOLIDATED CASH FLOW STATEMENT (continued)
as at and for the year ended 31 December 2009 VND million Notes 2009 2008 (as restated)
CASH FLOWS FROM FINANCING ACTIVITIES Increase in charter capital Proceeds from issuance of long-term convertible valuable papers and other long-term borrowings Repayment of long-term convertible valuable papers and other long-term borrowings Dividends paid to shareholders Purchase of treasury shares Proceeds from sale of treasury shares Net cash flows from/(used in) financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the year Foreign exchange difference Cash and cash equivalents at the end of the year
520,000 (366,400) 153,600 (989,527) 5,320,255 4,330,728
(582,200) (582,200) (1,170,083) 6,490,338 5,320,255
31 31
NON-CASH TRANSACTIONS: VND million 2009 Increase in charter capital from share premiums Increase in charter capital from charter capital supplementary reserves 20 2008 1,228,000
20
52,000
Prepared by :
Approved by:
Approved by:
10
DONGA COMMERCIAL JOINT STOCK BANK AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCAL STATEMENTS
as at and for the year ended 31 December 2009 1. CORPORATE INFORMATION Establishment and Operations DongA Commercial Joint Stock Bank (the Bank) is a joint stock commercial bank established in Vietnam in accordance with Banking License No. 0009/NH-GP issued by the State Bank of Vietnam (the SBV) on 27 March 1992 and Decision No. 135/QD-UB issued by the Peoples Committee of Ho Chi Minh City (HCMC) on 16 April 1995. The Banks operational duration is 99 years. Charter Capital Charter capital of the Bank as established was VND 20 billion and has been increased to VND 3,400 billion at the end of 2009. Subsidiaries As at 31 December 2009, the Bank had three (3) subsidiaries as below: Subsidiaries DongA Securities Corporation DongA Capital Company Limited DongA Money Transfer Company Limited Establishment decision Decision No. 12/GPHDKD issued by the State Securities Commission on 20 May 2003 Decision No. 20/UBCK-GP issued by the State Securities Commission on 24 September 2007 Business License No. 4104000024 issued by the Department of Planning and Investment of Ho Chi Minh City on 20 August 2001 Principal activities Securities trading Fund management Ownership 100% 100%
Money transfer
100%
2. SIGNIFICANT ACCOUNTING POLICIES 2.1.Basis of preparation The consolidated financial statements of the Bank and its subsidiaries, expressed in millions of Vietnamese Dong (VND million), are prepared in accordance with applying for the banks and other credit institutions in Vietnam. Accordingly, the accompanying consolidated balance sheet, consolidated income statement, consolidated cash flow statement and the notes thereto and their utilisation are not designed for those who are not informed about the Vietnams accounting principles, procedures and practices and furthermore are not intended to present its financial position, financial performance and its cash flows in accordance with accounting principles and practices generally accepted in countries other than Vietnam. 2.2.Fiscal year The Banks fiscal year starts on 1 January and ends on 31 December. 2.3.Consolidated financial statements The consolidated financial statements include the financial statements of the Bank and its subsidiaries as at and for the year ended 31 December each year. The financial statements of the subsidiaries are prepared for the same reporting year as the Bank using consistent accounting policies. All intra-group balances, transactions, income and expenses and unrealised profits resulting from intra-group transactions are eliminated in full. The financial statements of subsidiaries (Note 1) are fully consolidated from the date when the control is transferred to the Bank. The control is achieved when the Bank has the power, directly or indirectly, to govern the financial and operating polices of an entity so as to obtain economic benefits from its activities. The operating results of subsidiaries acquired or disposed during the year are included in the consolidated income statement from the date of acquisition or up to the date of disposal, as appropriate.
11
DONGA COMMERCIAL JOINT STOCK BANK AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCAL STATEMENTS (continued)
as at and for the year ended 31 December 2009 2.4.Loans and advances to customers Loans and advances to customers are presented at the principal amounts outstanding at the end of the financial year. 2.5.Provision for credit losses Loans and advances to customers are classified and provided for in accordance with the Law on Credit Institutions effective from 1 October 1998; Law on Amendment and Supplementation to a number of articles of the Law on Credit Institutions effective from 1 October 2004; Decision 1627/2001/QD-NHNN dated 31 December 2001 by the Governor of the State Bank of Vietnam on lending statutory; Decision 127/2005/QD-NHNN dated 3 February 2005 amending and supplementing Decision 1627/2001/QD-NHNN; Decision 493/2005/QD-NHNN dated 22 April 2005 and Decision 18/2007/QD-NHNN dated 25 April 2005 by the State Bank of Vietnam on loan classification and provision. Accordingly, loans are classified as Current, Special Mention, Substandard, Doubtful and Loss on the basis of payment arrears status and other qualitative factors. Net loans and advances exposure for each borrower is calculated by subtracting from the loan balance the discounted value of collateral. Decision 493/2005/QD-NHNN and Decision 18/2007/QD-NHNN stipulate specific discount rates for certain accepted collaterals. Specific provision is created on the net loans and advances exposure of each borrower using fixed provision rates as follows: Group 1 2 3 4 5 Name Current Special Mention Substandard Doubtful Loss Specific provision rate 0% 5% 20% 50% 100%
Loans in Substandard, Doubtful or Loss group are considered as non-performing loans. In accordance with Decision No. 493/2005/QD-NHNN and Decision 18/2007/QD-NHNN, a general provision is made for credit losses which are yet to be identified during the loan classification and provision process and for the Banks potential financial difficulties due to deterioration in loan quality. As such, the Bank is required to fully create and maintain a general provision at 0.75% of total loans and advances to customers, guarantees, payment acceptances and non-cancelable loan commitments which are classified from groups 1 to 4 within 5 years commencing from May 2005. Details of loan classification and provision are presented in Note 8. The provisions are recorded in the consolidated income statement as an expense and will be used to write off any credit losses incurred. According to Decision No. 493/2005/QD-NHNN, the Bank should establish the Bad Debt Resolution Committee which approve the write-off of loans which are classified in Group 5, or which corporate borrowers are bankrupted or liquidated, or which individual borrowers are deceased or missing. 2.6.Trading securities Trading securities are debt, equity and other securities acquired by the Bank for resale in the short-term period for benefits from price difference and the Bank does not have purposes of control of the investees. Trading securities are initially recorded at the cost at the transaction date. These securities are considered for the possibility of decline in their values at the financial statement date. Trading securities are provided for provision for a decline in value when the carrying value is higher than the market value. Provision for a decline in value of investments is recognised as Net gain/loss from dealing of trading securities in the consolidated income statement.
12
as at and for the year ended 31 December 2009 2.7.Investment securities 2.7.1.Held-to-maturity securities Held-to-maturity securities are debt securities which carry fixed or determinable payments and have fixed maturities and which the Bank has the intention and ability to hold to maturity. These securities will not be sold before maturity or transferred to trading securities or available-for-sale securities. They are initially recognised at face value at the purchase date. Discount/premium which represents the difference between the cost and the amount being the face value plus (+) accrued interest income (for debt securities with interest payment in arrears) or minus (-) accrued interest income (for debt securities with interest payment in advance) is amortised on a straight-line basis over the remaining term of securities. Interest of these investments is recognised on a straight-line basis over the remaining term of securities using nominal interest rate. Held-to-maturity securities are considered for the possibility of decline in their value. Provision for a decline in value of securities is made when there is a prolonged decline in value. Any impairment losses are recognised as Net gain/(loss) from dealing of investment securities in the consolidated income statement. 2.7.2.Available-for-sale securities Securities are classified as available-for-sale securities if they qualify all of the following conditions: - Securities are debt securities, equity securities or other securities; - The Bank holds less than 20% of the voting rights in the investee; - Securities are acquired for long-term objective and can be sold when there is benefit; - The Bank does not have purposes of control of the investee; - The Bank is not the founder shareholder and strategic partner; - Securities are traded freely in the market (both the official stock exchange and over-the-counter market); and - Securities are designated as available-for-sale securities. Available-for-sale equity securities are initially recognised at cost and subsequently measured at cost less provision for impairment loss. Provision is made when the market price of securities is lower than their carrying value and provision amount is the difference between the market value and the carrying value. Available-for-sale debt securities are recognised at the face value at the purchase. Discount/premium which represents the difference between the cost and the amount being the face value plus (+) accrued interest income (for debt securities with interest payment in arrears) or minus (-) accrued interest income (for debt securities with interest payment in advance) is amortised on a straight-line basis over the remaining term of securities. Interest of these investments is recognised on a straight-line basis over the remaining term of securities using nominal interest rate. 2.8.Capital contributions and long-term investments Capital contributions and long-term investments represent investments in equity securities and other long-term investments, except for investments in joint ventures, associates and subsidiaries, and should simultaneously meet the following conditions: - The holding, recovery or settlement period of investment is more than one year; and - The Bank has invested for benefits in the following cases: (i) The Bank is the founder shareholder; (ii) The Bank is the strategic shareholder; or (iii) The Bank has ability to place certain influence on preparing and making the financial and operating policies of the investee through written agreement on assignment of its representatives to the Board of Directors/Board of Management. Capital contributions and other long-term investments are stated at cost less provision for impairment. 2.9.Provision for impairment of securities and long-term investments Provision for impairment of securities and long-term investments is defined and made in accordance with SBV Official Letter No. 2601/NHNN-TCKT dated on 14 April 2009 and Circular No. 228/2009/TT-BTC issued by the Ministry of Finance on 7 December 2009.
13
as at and for the year ended 31 December 2009 2.9.1.Provision for a decline in value of trading and available-for-sale securities - Listed securities: The Bank obtains closing prices at the balance sheet date or closing prices at the latest round if there is no trading at the balance sheet date. - Unlisted securities (trading on the over-the-counter market - OTC): (i) The Bank uses the average market price of securities based on three (3) quoted prices from the large brokers (charter capital greater than VND 300 billion) such as Bao Minh Securities Joint Stock Company, Orient Securities Corporation, Viet Capital Securities Joint Stock Company, and Au Viet Securities Corporation. (ii) In case that fair value or market prices of securities are not available or cannot be determined reliably, the Bank uses its valuation methods to determine the fair value of securities and calculate provision for impairment of investments. If the fair value of securities cannot be determined reliably using this approach, investments in unlisted shares are carried at cost. 2.9.2.Provision for impairment of long-term investments Provision for impairment of other long-term investments is made if the investees incur net loss (except that the loss is incurred in line with the business plan before the investment is made) in accordance with Circular No. 228/2009/ TT-BTC of the Ministry of Finance. Provision is made if a total actual capital contribution of all parties in the investee is higher than the owners equity of the investee at the balance sheet date (using the financial information of the latest prior year). Provision amount Total actual capital contributions of - Owners equity all parties in the of the investee investee Investment capital of the Bank ------------------------------------------Total actual capital contributions of all parties in the investee
2.10.Repurchase and reverse repurchase agreements Securities sold under agreements to repurchase at a specified future date (repos) are still recognised in the consolidated financial statements. The corresponding cash received is recognised as a liability in the consolidated balance sheet. The difference between the sale price and repurchase price is allocated on straight-line basis to the consolidated income statement over the life of the agreement using the contractual interest rate. Securities purchased under agreements to resell at a specified future date (reverse repos) are not recognised in the consolidated financial statements. The corresponding cash paid is recognised as an asset in the consolidated balance sheet. The difference between the purchase price and resale price is allocated on straight-line basis to the consolidated income statement over the life of the agreement using the contractual interest rate. 2.11.Fixed assets Fixed assets are stated at cost less accumulated depreciation and amortisation. The cost of an asset comprises of its purchase price plus any directly attributable costs of bringing the asset to working condition for its intended use. Cost related to additions, improvements and renewals are capitalised while expenditures for maintenance and repairs are charged to the consolidated income statement. When assets are sold or liquidated, their cost and accumulated depreciation and amortisation are deducted from the consolidated balance sheet and any gains or losses resulting from their disposal are recorded to the consolidated income statement. 2.12.Depreciation and amortisation Depreciation and amortisation of tangible fixed assets and intangible assets is calculated on a straight-line basis over the estimated useful lives of the assets, which are as follows: Buildings and structures Machinery and equipment Vehicles Office equipment Accounting software and other applications Land use right with indefinite useful life is not amortised. 5 - 25 years 3 - 5 years 6 - 7 years 5 - 7 years 3 - 5 years
14
as at and for the year ended 31 December 2009 2.13.Interest income and expense recognition Interest income and expense are recognised in the consolidated income statement on an accrual basis. The recognition of accrued interest income is suspended when a loan is classified as Special mention, Substandard, Doubtful or Loss group which is provided for provision for loan losses according to SBV Decision No.493/2005/QD-NHNN and Decision No.18/2008/QD-NHNN. Suspended interest income is reversed and monitored in the off-balance sheet and recognised in the consolidated income statement upon actual receipt. Fees and commissions are recognised on an accrual basis. Dividend income on equity investment is recognised in the consolidated income statement when the Banks right to receive the payment is established. 2.14.Foreign currency transactions The Bank maintains its accounting system and records all transactions in original currencies. Monetary assets and liabilities denominated in foreign currencies at year-end are translated into VND using exchange rates ruling at the balance sheet date (see list of exchange rates of applicable foreign currencies against VND as at 31 December in Note 40). Income and expenses arising in foreign currencies during the year are converted into VND at rates ruling at the transaction dates. Unrealised foreign exchange differences arising from the translation of monetary assets and liabilities at the balance sheet date are recognised in the consolidated income statement. 2.15.Corporate income tax Current tax Current tax assets and liabilities for the current and prior years are measured at the amount expected to be paid to (or recovered from) the taxation authorities. The tax rates and tax laws are applied and enacted at the balance sheet date. The Banks tax returns are subject to examination by the tax authorities. Due to the ambiguity associated with the applicability of tax laws and regulations in Vietnam, amounts reported in the consolidated financial statements could be changed at a later date upon final determination by the tax authorities. Deferred tax Deferred tax is provided using the balance sheet liability method on temporary differences between the tax base of assets and liabilities and their carrying amount for financial reporting purpose at the balance sheet date. Deferred tax liabilities are recognised for all taxable temporary differences, except: - Where the deferred tax liability arises from the initial recognition of an asset or liability in a transaction which at the time of the transaction affects neither the accounting profit nor taxable profit or loss. Deferred tax assets are recognised for all deductible temporary differences, carried forward unused tax credit and unused tax losses, to the extent that it is probable that taxable profit will be available against which deductible temporary differences, carried forward unused tax credit and unused tax losses can be utilised, except: - Where the deferred tax asset arises from the initial recognition of an asset or liability in a transaction which at the time of the transaction affects neither the accounting profit nor taxable profit or loss. The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Unrecognised deferred income tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax assets to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset realised or the liability is settled based on tax rates and tax laws that have been enacted at the balance sheet date. Deferred tax is charged or credited to the income statement, except when it relates to items recognised directly to equity, in which case the deferred tax is also dealt with in the equity account. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxable entity and the same taxation authority and the Bank intends to settle its current tax assets and liabilities on a net basis.
15
as at and for the year ended 31 December 2009 2.16.Cash and cash equivalents Cash and cash equivalents comprise cash, gold, precious stones, current accounts with the SBV, Treasury notes and other short-term valuable papers which are qualified for discount with the SBV, and balances and loans due from banks with an original maturity of less than three months. 2.17.Fiduciary assets Assets held in trust or in a fiduciary capacity are not reported in the consolidated financial statements since they are not the assets of the Bank and its subsidiaries. 2.18.Offsetting Financial assets and financial liabilities are offset and the net amount reported in the consolidated balance sheet if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or the realisation of assets and the settlement of liabilities is made simultaneously. 2.19.Use of estimates The preparation of the consolidated financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities. These estimates and assumptions also affect the income and expenses and the resultant provisions. Such estimates are necessarily based on assumptions involving varying degrees of subjectivity and uncertainty and actual results may differ resulting in future changes in such provisions. 2.20.Employee benefits 2.20.1.Post employment benefits Post employment benefits are paid to retired employees of the Bank by the Social Insurance Agency which belongs to the Ministry of Labor and Social Affairs. The Bank is required to contribute to these post employment benefits by paying social insurance premium to the Social Insurance Agency at the rate of 15% of an employees basic salary on a monthly basis. The Bank has no further obligation to fund the post employment benefits of its employees other than the liability to pay Social Insurance Agency on a monthly basis. 2.20.2.Voluntary resignation and retrenchment benefits Voluntary resignation benefits: The Bank has the obligation, under Section 42 of the Labor Code amended 2 April 2002, to pay allowance to voluntarily resigning employees, equal to half of one-months wages for each year of employment plus wage allowances (if any) until 31 December 2008. The severance payment to employee is accrued at the end of each reporting period for all employees who have more than 12 months in service up to 31 December 2008 at the rate of one-half of the average monthly salary of 6-month period up to the termination for each year of service up to 31 December 2008 in accordance with the Labour Code, the Law on Social Insurance and related implementing guidance. From 1 January 2009, the Bank has accrued for unemployment insurance according to Decision No. 127/2008/ND-CP dated 12 December 2008. Accordingly, employees contribute unemployment insurance by 1% of monthly salary while employer contribute 1% of total salary fund for employees and the Government subsidized from the State Treasury with 1% of total salary fund for employees who engaged in this unemployment insurance. Retrenchment benefits: The Bank has the obligation, under Section 17 of the Labor Code, to pay allowance to employees who are retrenched as a result of organizational restructuring or technological changes. In such case, the Bank shall pay to employees an allowance for loss of work equivalent to the aggregate amount of one months wages for each year of employment, but no less than two months wages. 2.21.Leased assets The determination of whether an arrangement is, or contains a lease is based on the substance of the arrangement and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset and the arrangement coveys a right to use the asset. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership of the asset to the lessee. All other lease arrangements are classified as operating leases. Rentals under operating leases are charged to the consolidated income statement on a straight-line basis over the term of the lease.
16
as at and for the year ended 31 December 2009 2.22.Payable and accrual Payable and accrual are recognised for amount to be paid in the future for goods and services received, whether or not billed to the Bank. 2.23.Appropriation of net profit Net profit after tax is available for appropriation to shareholders after approval by the shareholders at the Annual General Meeting and after making appropriation to reserve funds in accordance with the Banks charter and Vietnamese regulatory requirements. Dividend is computed from the retained earning based on shareholders share proportion. 2.24.Provision for off-balance-sheet commitments According to Article 6 of Decision No.493/2005/QD-NHNN and Decision No.18/2007/QD-NHNN by the SBV, credit institutions must make the loan classification and provision for guarantees, payment acceptances and non-cancelable loan commitments with specific effective date (generally called off-balance-sheet commitments). Off-balance sheet commitments are classified into groups such as Current, Special Mention, Substandard, Doubtful and Loss based on the overdue status and other qualitative factors. Specific provision for off-balance-sheet commitments is calculated similarly to the provision for loans and advances to customers as described in Note 2.7. Provision expense is recorded as Credit loss expense in the consolidated income statement and provision balance is recorded as other liabilities in the consolidated balance sheet. 2.25.Earnings per share Basic earnings per share amount is computed by dividing net profit for the year attributable to ordinary shareholders of the Bank before any appropriation of statutory reserves and bonus and welfare fund by the weighted average number of ordinary shares outstanding during the period. 3. CASH, GOLD AND PRECIOUS STONES VND million 31 December 2009 Cash on hand in VND Cash on hand in foreign currencies Monetary gold 847,070 760,897 1,007,144 2,615,111 31 December 2008 511,418 647,761 877,707 2,036,886
4. BALANCES WITH THE STATE BANK OF VIETNAM VND million 31 December 2009 Current account 1,230,380 31 December 2008 770,624
17
as at and for the year ended 31 December 2009 Balances with the State Bank of Vietnam include settlement and clearing deposits and compulsory deposits. According to SBVs regulation, the interest rates of deposit at SBV were as follows: - Compulsory deposits in VND and foreign currencies in the compulsory range of deposit bear interest at a rate of 1.20% p.a and 0% p.a, respectively. - Deposits which are in excess of the compulsory range deposits in VND and in foreign currencies which bear interest at a rate of 0% p.a and 0.10% p.a respectively. Under regulations of the SBV, as at 31 December 2009, the Bank is required to maintain certain cash reserves with the SBV in the form of compulsory deposits as follows: - Customer deposits in VND with the term of less than 12 months and more than 12 months have the compulsory rate of 3% and 1%, respectively. - Customer deposits in foreign currencies with the term of less than 12 months and more than 12 months have the compulsory rate of 7% and 3%, respectively. During the year, the Bank has complied with the SBVs regulation of compulsory deposits. 5. DUE FROM CREDIT INSTITUTIONS VND million 31 December 2009 Demand deposits at other credit institutions Term deposits to other credit institutions 586,724 352,310 939,034 31 December 2008 225,142 2,538,979 2,764,121
6. TRADING SECURITIES Details of trading securities as at 31 December are as follows: VND million 31 December 2009 Debt securities Issued by other local credit institutions Equity securities Issued by other local credit institutions Issued by local economic entities Entrustment securities 31 December 2008
852
26,424 123,611 150,035 278,469 428,504
41,754 29,578 71,332 206,762 278,946
18
as at and for the year ended 31 December 2009 Listing status of securities is as follows: 31 December 2009 Debt securities Unlisted Equity securities Listed Unlisted 112,180 37,855 150,035 150,035 VND million 31 December 2008 852 34,386 36,946 71,332 72,184
7. LOANS AND ADVANCES TO CUSTOMERS 31 December 2009 Loans to local economic entities and individuals Loans for discounted commercial notes and valuable papers Loans from grants and entrusted funds Blocked loans and loans awaiting resolutions Other loans 33,343,978 111,148 149,734 750,684 34,355,544
VND million 31 December 2008 25,194,607 128,454 205,659 1,000 41,090 25,570,810
7.1.Analysis of loan by quality 31 December 2009 Current Special mention Substandard Doubtful Loss 33,662,974 235,357 59,601 126,068 271,544 34,355,544
VND million 31 December 2008 24,522,644 397,186 353,612 111,286 186,082 25,570,810
7.2.Analysis of loans by original terms 31 December 2009 Short-term loans Medium-term loans Long-term loans 22,865,544 9,162,088 2,327,912 34,355,544
VND million 31 December 2008 16,147,548 7,974,700 1,448,562 25,570,810
19
as at and for the year ended 31 December 2009 7.3.Analysis of loans by ownership type Analysis of loans by ownership at the year-end is as follows: 31 December 2009 VND million % Loans to economic entities Central State-owned enterprise Local State-owned enterprise State owned limited liability company Private limited liability company State-owned joint stock company Other joint stock company Private enterprise Foreign-invested enterprise Collective business group Loans to individuals 402,843 445,137 138,545 10,355,220 795,597 10,962,750 1,414,609 55,881 113,478 24,684,060 9,671,484 34,355,544 1.17% 1.30% 0.40% 30.14% 2.32% 31.91% 4.12% 0.16% 0.33% 71.85% 28.15% 100% 31 December 2008 VND million % 234,175 497,321 155,840 7,641,513 613,430 7,794,837 724,218 23,962 107,214 17,792,510 7,778,300 25,570,810 0.92% 1.94% 0.61% 29.88% 2.40% 30.48% 2.83% 0.09% 0.43% 69.58% 30.42% 100%
7.4.Analysis of loans by economic sectors Analysis of loan portfolio by industry at the year-end is as follows: 31 December 2009 VND million % Trading, repair of motor vehicles, motorcycles, personal and household appliances Individuals and public activities Construction Processing industry Assets trading and consulting services Aquatic product Hotel and restaurant Services with families Agriculture and forestry Transportation, warehousing and communication Education and training State governance and national defense: Communist Party, unions, social obligations Financial services Mining exploration Electricity, gas and water supply/distribution Health care and social relief activities Sport and cultural activities Science and technology World organisation 15,362,597 6,059,464 5,241,429 2,544,147 1,741,255 901,743 753,751 551,566 527,959 314,059 100,641 79,590 63,769 61,780 18,159 17,467 8,240 7,593 335 34,355,544 44.72% 17.64% 15.26% 7.41% 5.07% 2.62% 2.19% 1.61% 1.54% 0.91% 0.29% 0.23% 0.19% 0.18% 0.05% 0.05% 0.02% 0.02% 0.00% 100% 31 December 2008 VND million % 11,474,881 4,051,765 4,104,922 1,484,978 1,415,737 709,517 635,796 506,875 618,683 138,576 100,134 56,228 102,001 63,044 38,722 24,244 3,498 40,814 395 25,570,810 44.87% 15.85% 16.05% 5.81% 5.54% 2.77% 2.49% 1.98% 2.42% 0.54% 0.39% 0.22% 0.40% 0.25% 0.15% 0.09% 0.01% 0.16% 0.01% 100%
20
as at and for the year ended 31 December 2009 8. PROVISION FOR CREDIT LOSSES Movements in provision for credit losses in 2009 are as follows: Specific provision Beginning balance Provision charged during the year Reversal of provision during the year Provisions utilised to write off bad loans Ending balance 155,955 95,409 (58,787) (67,450) 125,127 General provision 110,963 110,226 (1,583) 219,606
VND million Total 266,918 205,635 (58,787) (69,033) 344,733
The Bank has classified its loans and advances to customers in accordance with Decision No. 493/2005/QD-NHNN and Decision No. 18/2007/QD-NHNN issued by the State Bank of Vietnam and its policy on loan classification and loan loss provisions. The provision for credit losses was made based on the classification of outstanding loan balances and guarantees in the off balance sheet as at 31 December 2009 instead of at 30 November 2009 as required by Decision No. 493/2005/QD-NHNN because the Bank believes that the classification of outstanding loans as at 31 December 2009 represents more precisely the credit result of the Bank at the year end. The breakdown of loan classification and provision as required by Decision No. 493/2005/QD-NHNN, Decision No. 18/2007/QD-NHNN and its own policy as at 31 December 2009 are as follows: VND million Balance Loan to other credit institutions Current Loans and advances to customers Current Special mention Substandard Doubtful Loss Off-balance sheet commitments Current TOTAL 331,937 33,662,974 235,357 59,601 126,068 271,544 34,355,544 3,226,858 Specific provision 3,171 5,174 19,563 97,219 125,127 125,127 General provision 2,490 252,472 1,765 447 946 255,630 24,201 282,321 Total 2,490 252,472 4,936 5,621 20,509 97,219 380,757 24,201 407,448 VND million Off-balance sheet commitments Specific General provision provision 24,201 24,201
Provisions for credit losses at 31 December 2009 are as follows: Loan to other credit institution and customers Specific General provision provision Provision required by SBV Decision No. 493/2005/QD-NHNN Provision recorded by the Bank Difference 125,127 125,127 258,120 219,606 38,514
Total 407,448 344,733 62,715
The Bank has made fully specific provision for loan losses in accordance with Decision No. 493/2005/QD-NHNN as at 31 December 2009. The Banks general provision was still under provided. However, Decision No. 493/2005/QD-NHNN allows the Bank make fully general provision within five (5) years from the effective date of this Decision (May 2005). The Bank will make fully the general provision by 31 May 2010.
21
as at and for the year ended 31 December 2009 9. INVESTMENT SECURITIES 31 December 2009 Available-for-sale securities Debt securities Debt securities issued by other local credit institutions Debt securities issued by local business entities Equity securities Equity securities issued by other local credit institutions Equity securities issued by local business entities
VND million 31 December 2008
1,333 50,000 51,333 115,088 184,447 299,535 350,868 8,333 359,201
14,272 129,277 143,549 143,549 13,383 156,932
Held-to-maturity securities Government securities TOTAL 9.1.Available-for-sale securities The listing status of available-for-sale securities is as follows:
VND million 31 December 2009 31 December 2008 10,924 132,625 143,549 143,549 VND million 31 December 2009 31 December 2008 13,383
Debt securities Listed Unlisted Equity securities Listed Unlisted
51,333 51,333 299,535 299,535 350,868
9.2 .Held-to-maturity securities
Government bonds 10. LONG-TERM INVESTMENTS
8,333
VND million 31 December 2009 31 December 2008 820,758
Long-term Investments
740,493
22
as at and for the year ended 31 December 2009 11. PROVISION FOR A DECLINE IN VALUE OF SECURITIES AND LONG-TERM INVESTMENTS Details of provision for a decline in value of securities and long-term investments are as follows: VND million 31 December 2009 Beginning balance In which: Trading securities Available-for-sale investment securities Capital contributions and long-term investments Increase/(decrease) during the year In which: Trading securities Available-for-sale investment securities Capital contributions and long-term investments Ending balance In which: Trading securities Available-for-sale investment securities Capital contributions and long-term investments 31 December 2008
35,012 21,131 56,143
8,594 8,594
6,762 (21,131) 29,383 15,014
26,418 21,131 47,549
41,774 29,383 71,157
35,012 21,131 56,143
12. FIXED ASSETS 12.1.Tangible fixed assets Movements of tangible fixed assets during the year ended 31 December 2009 are as follows: Buildings & structures (as restated) Cost Beginning balance Additions Disposals Ending balance Accumulated depreciation Beginning balance Additions Disposals Other decreases Ending balance Net book value Beginning balance Ending balance 182,300 126,533 (427) 308,406 29,038 8,545 (427) 37,156 153,262 271,250 Machine & equipment Vehicles Office equipment Others
VND million Total
369,590 33,411 (309) 402,692 118,087 69,562 (309) 187,340 251,503 215,352
47,970 10,554 58,524 17,576 7,715 25,291 30,394 33,233
48,211 16,175 (176) 64,210 18,977 10,964 (95) 29,846 29,234 34,364
28,098 6,323 (98) 34,323 8,647 5,797 (95) (742) 13,607 19,451 20,716
676,169 192,996 (1,010) 868,155 192,325 102,583 (926) (742) 293,240 483,844 574,915
23
as at and for the year ended 31 December 2009 12.2.Intangible assets Movements of intangible assets during the year ended 31 December 2009 are as follows: Land use rights Cost Beginning balance Additions Ending balance Accumulated amortization Beginning balance Amortisation charge Ending balance Net book value Beginning balance Ending balance 13. OTHER ASSETS Notes 31 December 2009 31,924 130,938 162,862 31,924 162,862 Accounting software and other applications 43,799 30,428 74,227 10,100 8,120 18,220 33,699 56,007
VND million Total
75,723 161,366 237,089 10,100 8,120 18,220 65,623 218,869
VND million 31 December 2008 (as restated) 521,342 429,074 10,589 1,126,704 2,087,709 VND million 31 December 2009 31 December 2008 97,529 423,813 521,342
Receivables Interest and fee receivables Deferred tax asset Other assets 13.1.Receivables
13.1 13.2 19
582,982 172,133 719,126 1,474,241
Construction in progress (a) Other receivables (b)
128,082 454,900 582,982
24
as at and for the year ended 31 December 2009 13.2.Interest and fee receivables 31 December 2009 Interest receivable from loans to customers Interest receivable from deposits at credit institutions Interest receivable from held-to-maturity and available-for-sale securities 166,452 73 5,608 172,133
VND million 31 December 2008 421,045 5,775 2,254 429,074
14. DUE TO OTHER CREDIT INSTITUTIONS 31 December 2009 Demand deposits from other credit institutions Term deposits from other credit institutions 34,609 4,733,130 4,767,739
VND million 31 December 2008 47,311 3,564,210 3,611,521
15. DUE TO CUSTOMERS 15.1.Analysis by products 31 December 2009 Demand deposits Demand deposit in VND Demand saving deposits in VND Demand deposits in FC Demand saving deposits in FC Term deposits Term deposits in VND Term saving deposits in VND Term deposits in FC Term saving deposits in FC Margin deposits Margin deposits in VND Margin deposits in FC Deposits for specific purposes 4,491,106 67,285 270,886 32,927 VND million 31 December 2008 2,821,899 81,113 194,811 33,542
1,587,417 18,018,622 58,241 2,986,855
1,046,320 15,769,100 126,989 2,452,035
226,612 176,065 57,524 27,973,540
132,840 297,993 53,795 23,010,437
25
as at and for the year ended 31 December 2009 15.2 .Analysis by type of customer and ownership 31 December 2009 Deposits by economic entities State-owned enterprises Private enterprises and others Foreign-invested enterprise Deposits by individuals Deposits by others 1,138,098 2,708,419 188,208 4,034,725 23,936,600 2,215 27,973,540
VND million 31 December 2008 782,271 1,942,770 206,966 2,932,007 20,076,577 1,853 23,010,437 VND million 31 December 2009 31 December 2008 2,277,197 693,180 435 2,970,812 2,970,812 VND million 31 December 2009 31 December 2008 109,430 93,631 905 203,966
16. VALUABLE PAPERS ISSUED BY THE BANK
Certificates of gold deposits Term under 12 months Term from 12 months to 5 years Term over 5 years Promissory note Term under 12 months
2,762,535 615,364 1,007 3,378,906 303,180 3,682,086
17. GRANTS, ENTRUSTED FUNDS AND LOANS EXPOSED TO RISKS
Loan from Bank for Investment and Development of Vietnam Grants, entrusted funds from Japan Bank for International Cooperation Grants, trust funds from Asian Development Bank
177,774 112,494 779 291,047
Loan from Bank for Investment and Development of Vietnam (BIDV) in USD and VND is the entrustment fund from the World Bank through BIDV to sponsor for the Rual Financing Project I and II. Details of this loan were as follows: - Short-term loan bears interest rate of 9.12% p.a (2008: 10.32% p.a). - Medium-term loan bears interest rate of 9.12% p.a (2008: 10.32% p.a). - Long-term loan bears interest rate of 9.12% p.a for loans in VND (2008: 8.16% p.a) and 0.75% p.a for loans in USD. Grants, entrusted funds from Asian Development Bank in VND is to sponsor for Financial Project ADB1. These loans have term of 3, 5 and 14 years and bear interest rate of 7.80% p.a (2008: 9.60% p.a). Grants, entrusted funds from Japan Bank for International Cooperation in VND is used for Small and Medium Enterprise Finance Program. These loans are medium and longterm loans with interest rate of 5.50% and 6.72% p.a, respectively (2008: 7.32% p.a and 4.8% p.a, respectively).
26
as at and for the year ended 31 December 2009 18. OTHER LIABILITIES Notes Accrued interest and fee payables Deferred tax liability Other payables 19 31 December 2009 337,304 19,131 1,249,013 1,605,448
VND million 31 December 2008 602,466 799,036 1,401,502
19. OBLIGATIONS TO THE STATE BUDGET Beginning balance Value added tax (VAT) VAT on services VAT on foreign exchange Corporate income tax Other taxes 3,006 2,643 363 25,002 3,374 31,382 Amount incurred during the year Payable 38,525 18,892 19,633 170,279 5,076 213,880 Paid (38,468) (18,757) (19,711) (171,733) (7,355) (217,556) Ending balance 3,063 2,778 285 23,548 1,095 27,706
The Banks tax returns are subject to examination by the tax authorities. Because the application of tax laws and regulations to many types of transactions is susceptible to varying interpretations, amounts reported in the consolidated financial statements could be changed at a later date upon final determination by the tax authorities. Corporate income tax The Bank and its subsidiaries have obligations to pay Corporate Income Tax (CIT) at the rate of 25% of taxable profits, except for DongA Securities Company which has CIT rate of 20% of taxable profits. The consolidated CIT expense comprises of the CIT expense of the Bank and its subsidiaries. The Bank and its subsidiaries are responsible for preparing and filing the separate CIT returns to the local tax authorities. The CIT expense of the Bank and its subsidiaries for the year was as follows: VND million 2009 Current CIT expense Excessive CIT provision of the prior year Deferred CIT 170,388 170,388 29,720 200,108 2008 193,597 (18,576) 175,021 (10,589) 164,432
27
as at and for the year ended 31 December 2009 Current Corporate Income Tax Current corporate income tax payable is determined based on the taxable income of the current year. Taxable income is different from the one reported in the consolidated income statement since it excludes items of income or expense that are taxable or deductible in other years due to the differences between the Banks accounting policies and the current tax policies, and also excludes non-taxable and non-deductible items for tax purpose. The current corporate income tax payable by the Bank and its subsidiaries is calculated based on the statutory tax rates applicable at the year end. Current corporate income tax expense for the year was calculated as follows: 2009 Profit before tax Less: Non-taxable dividend income Income from Government bonds Unrealised foreign exchange (gains)/ losses Add: Expenses without adequate supporting documents Estimated taxable income before tax losses Tax losses carried forward Estimated taxable income CIT expense of the Bank, at 25% (2008: 28%) CIT expense of subsidiaries, at 25% (2008: 28%) CIT expense of subsidiaries reduction under the Governments Resolution No. 30/2008/NQ-CP Total estimated CIT for the year Excess of CIT provision in the prior year Estimated CIT payable for the year CIT payable at beginning of year Clearing with the excess of CIT provision in the prior year CIT paid during the year CIT payable at the end of the year Deferred Corporate Income Tax Deferred CIT is presented by the Bank as follows: Consolidated balance sheet 31 December 31 December 2009 2008 Deferred tax asset Unrealised foreign exchange losses Deferred tax liability Unrealised foreign exchange gains Deferred income tax (expense)/benefit (19,131) 10,589 787,756 (19,720) (884) (76,522) 726 691,356 (9,573) 681,783 166,139 4,309 (60) 170,388 170,388 25,002 (109) (171,733) 23,548 VND million 2008 703,169 (26,981) (39,713) 37,819 674,294 674,294 190,414 3,183 193,597 (18,576) 175,021 76,440 (226,459) 25,002
VND million Consolidated income statement 2009 (10,589) (19,131) (29,720) 2008 10,589 10,589
28
DONGA COMMERCIAL JOINT STOCK BANK AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCAL STATEMENTS (continued)
as at and for the year ended 31 December 2009
20. OWNERS EQUITY AND RESERVES VND million Capital supplementary fund Financial fund 85,284 51,327 2,504 139,115 1,414 1,267 (41,976) 8,188 409 40,819 14,818 1,267 (5,385) 15,946 1,005 8,078 5,246 133 8,000 68 1,952 (9,400) 753 Bonus fund Welfare fund Other reserves 7,102 25,254 1,366 33,722 Business & development fund Other capital 521 32 553 Retained earnings 527,585 587,648 (140,627) (6,472) (367,200) 70 (172) 600,832 Total 3,514,954 520,000 587,648 (367,200) 2,054 (56,761) (172) 4,200,523
20.1.Statement of changes in owners equity
Charter capital
Opening balance
2,880,000
- Capital contributions in cash
520,000
- Net profit for the year
- Appropriation to reserves for previous year
- Appropriation to reserves by subsidiaries for current year
- Dividends paid for previous year
- Other increases
- Reserves utilised during the year
- Other decreases
Ending balance
3,400,000
During the year, the Bank has increased its charter capital from VND 2,880,000 million to VND 3,400,000 million in accordance with SBV Approval Letter No. 1227/NHNN-HCM02 dated 10 June 2009.
29
as at and for the year ended 31 December 2009 Details of shares issued by the Bank are as follows: 2009 Shares Authorised shares Issued and paid-up shares Ordinary shares Outstanding shares Ordinary shares Par value (VND/share) 340,000,000 340,000,000 340,000,000 340,000,000 340,000,000 10,000 2008 Shares 288,000,000 288,000,000 288,000,000 288,000,000 288,000,000 10,000
20.2.Reserves of the Bank In 2005, the Government issued Decree No. 146/2005/ND-CP dated on 23 November 2005 regarding the financial management regime of credit institutions. According to Decree No. 146/2005/ND-CP, commercial joint-stock banks are required to create their statutory reserves based on percentage of after-tax profits as follows: Amount Supplementary charter capital reserve 5% of profit after tax Maximum balance Charter capital
The following reserves are calculated based on the percentage of profit after tax and after deduction of supplementary capital reserve (remaining profit after tax). Amount 10% of remaining profit after tax Based on resolution of the Board of Directors Based on resolution of the Board of Directors Based on resolution of the Board of Directors Maximum balance 25% charter capital Not defined Not defined Not defined
Financial reserve Business and development fund Welfare and bonus fund Other funds
The Bank has not yet made statutory reserves from net profit after tax for 2009. Such reserves will be made in 2010 after obtaining the resolution at the Annual General Meeting of the shareholders. The utilisation of these reserves is made in accordance with Decree No. 146/2005/ND-CP.
30
20.3.Reserves of subsidiaries DongA Securities Corporation In accordance with Decision No. 27/2007/QD-BTC issued by the Ministry of Finance on 24 April 2007, securities companies shall establish their statutory reserves based on the percentage of net profit after tax as follows: Amount Supplementary capital reserve Financial reserve 5% of net profit after tax 5% of net profit after tax Maximum balance 100% of charter capital 10% of charter capital
Other reserves are created based on this subsidiarys charter and policies. DongA Capital Company Limited Net profit after corporate income tax and after creation of reserves in accordance with the subsidiarys charter and provisions of Vietnamese laws will be distributed at the parent companys request, DongA Securities Corporation. Reserves are established based on the subsidiarys charter as follows: % of net profit after tax Capital supplementary reserve Financial reserve Internal training fund Bonus fund Welfare fund 10% 10% 5% 5% 5%
Reserves are created annually based on the audited financial statements of the subsidiary. DongA Money Transfer Company Limited Reserves are established based on this subsidiarys charter. 21. BASIC EARNINGS PER SHARE Basic earnings per share of the Bank are calculated as follows: 2009 Net profit attributable to ordinary shareholders of the Bank (VND million) Weighted average number of oustanding ordinary shares during the year (shares) Basic earnings per share (VND) 587,648 307,090,411 1,914 2008 538,737 288,000,000 1,871
Net profit attributable to the Banks ordinary shareholders used for calculation of basic earnings per share represents profit after tax which does not exclude amounts to be appropriated to reserves according to the SBV regulations and the Bank and its susidiaries policies as described in Note 20.2 and Note 20.3.
31
as at and for the year ended 31 December 2009 22. DIVIDENDS During the year, the Bank has made advances of interim dividends amounting to VND 366,400 million (2008: VND 367,200 million). 23. INTEREST AND SIMILAR INCOME
VND million 2009 2008 as restated 3,605,308 129,916 63,445 17,039 3,815,708
Interest income from loans to customers Interest income from placements with other credit institutions Interest income from trading and investing of debt securities: - Interest income from investment securities Other interest income from credit activities
3,204,378 109,087 4,420 7,171 3,325,056
24. INTEREST AND SIMILAR EXPENSES 2009 Interest expense on customer deposits Interest expense on borrowings Interest expense on valuable papers issued Other expense from credit activities 2,118,663 20,368 79,013 180 2,218,224
VND million 2008 2,858,258 40,814 71,717 587 2,971,376
25. NET FEES AND COMMISSION INCOME 2009 Fees and commission income from Settlement services Advisory services Brokerage services Guarantee transactions Trust investments and agencies Treasury services Asset maintenance Other income Fees and commission expenses Net fees and commission income 148,033 31,625 27,617 24,109 5,470 267 30 35,419 272,570 (52,858) 219,712
VND million 2008 124,696 3,508 11,087 18,027 37,167 1,651 51 7,337 203,524 (52,132) 151,392
32
as at and for the year ended 31 December 2009 26. NET GAIN FROM DEALING OF FOREIGN CURRENCIES AND GOLD 2009 Gain from foreign currencies and gold trading Income from spot foreign exchange Income from gold trading Income from currency derivatives Loss from foreign currencies and gold trading Expense from spot foreign exchange Expense from gold trading Expense for dealing foreign currencies Net gain from foreign currencies and gold trading 27. NET GAIN FROM DEALING OF TRADING SECURITIES 2009 Income from sale/purchase of trading securities Expenses from sale/purchase of trading securities Provision for a decline in value of trading securities 78,965 (67,287) (6,762) 4,916 28. NET GAIN FROM DEALING OF INVESTMENT SECURITIES 2009 Income from sale/purchase of investment securities Provision for a decline in value of investment securities 72,942 (8,252) 64,690 147,687 244,953 43,980 436,620 (42,915) (78,654) (52,559) (174,128) 262,492
VND million 2008 293,750 81,390 10,868 386,008 (22,254) (22,258) (8,131) (52,643) 333,365
VND million 2008 126,403 (87,313) (26,418) 12,672
VND million 2008 37,508 (21,131) 16,377
29. OTHER OPERATING INCOME 2009 Recovery of bad loans previously written off Income from other services Income from land transfer Expense from other services 3,611 402 4,013 (226) 3,787
VND million 2008 21,225 3,550 88,507 113,282 (570) 112,712
33
as at and for the year ended 31 December 2009 30. OTHER OPERATING EXPENSES 2009 Office rental Repair, maintenance and renovation of assets Insurance for customer deposits Advertising, marketing, promotion and entertainment expenses Electricity and water Taxes and fees Material and printing Post and telecommunication Tools and equipment Conferences Business trips Asset insurance fees Training expenses Other expenses 54,131 35,023 28,828 26,370 21,540 20,592 17,303 16,463 14,122 7,446 5,929 1,805 1,372 86,580 337,504
VND million 2008 36,714 28,109 18,366 27,448 16,956 36,457 18,119 14,787 12,397 7,068 7,621 1,032 1,101 41,260 267,435
31. CASH AND CASH EQUIVALENTS Cash and cash equivalents included in the consolidated cash flow statement comprise the following amounts on the consolidated balance sheet: VND million 31 December 2009 Cash, gold and precious stones Current account with the SBV Current account with other credit institutions Term deposits with other credit institutions with term of three months or less Less: Deposit of investors for securities trading 2,615,111 1,230,380 586,724 26,558 (128,045) 4,330,728 32. EMPLOYEES INCOME 2009 I. TOTAL NUMBER OF EMPLOYEES (person) II. EMPLOYEES INCOME (VND million) 1. Total salary fund 2. Lunch allowance 3. Bonus 4. Total income (1+2+3) 5. Average monthly salary (VND/employee) 6. Average monthly income (VND/employee) 4,203 245,876 12,258 43,892 302,026 4,875,010 5,988,302 31 December 2008 (as restated) 2,036,886 770,624 225,142 2,366,299 (78,696) 5,320,255
VND million 2008 3,593 189,930 10,086 43,951 243,967 4,405,082 5,658,388
34
as at and for the year ended 31 December 2009 33. TYPE AND VALUE OF COLLATERAL ASSETS VND million Value as at 31 December 2009 Real estates Inventories Transportation vehicles Machinery and equipment Valuable papers Saving books Others 28,997,062 8,012,057 2,065,923 1,159,997 856,940 849,463 2,262,006 44,203,448 2008 23,538,552 6,827,052 1,261,838 689,143 1,350,032 835,349 1,055,081 35,557,047
34. CONTINGENT LIABILITIES AND COMMITMENTS In the normal course of business, the Bank is a party to financial instruments that are recorded in the off-balance sheet. These financial instruments mainly comprise financial guarantees and commercial letters of credit (L/C). These instruments involve elements of credit risk in excess of the amounts recognized in the balance sheet. Credit risk for off-balance sheet financial instruments is defined as the possibility of sustaining a loss because any other party to a financial instrument fails to perform in accordance with the terms of the contract. Financial guarantees are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party including guarantee for borrowings, settlement, performing contracts and bidding. The credit risk involved in issuing guarantees is essentially the same as that involved in extending facilities to other customers. Commercial at sight letters of credit represent a financing transaction by the Bank to its customer where the customer is usually the buyer/importer of goods and the beneficiary is typically the seller/exporter. Credit risk is limited as the merchandise shipped serves as collateral for the transaction. Deferred payment letters of credits represent the amounts at risk should the contract be fully drawn upon and the client defaults in repayment to the beneficiary. Deferred payment letters of credit that were defaulted by clients are recognized by the Bank as granting of a compulsory loan with a corresponding liability representing the financial obligation of the Bank to pay the beneficiaries and to fulfill the guarantor obligation. The Bank requires margin deposits to support credit-related financial instruments when it is deemed necessary. The margin deposit required varies from nil to 100% of the value of a commitment granted, depending on the creditworthiness of customers as assessed by the Bank. The outstanding commitments and contingent liabilities as at 31 December are as follows: VND million 31 December 2009 950,947 2,275,911 3,226,858 (402,678) 2,824,180 31 December 2008 848,395 2,194,729 3,043,124 (430,833) 2,612,291
Financial guarantees Letters of credit Less: Margin deposits Contingent liabilities
35
35. MARKET RISK VND million

Overdue Not affected by Subject to re-pricing interest rate in period re-pricing interest rate change Up to 1 month 1 - 3 months 3 - 6 months 6 - 12 months 1 - 5 years Over 5 years
35.1.Interest rate risk
Total
692,570 692,570 2,615,111 1,230,380 939,034 428,504 33,662,974 359,201 740,493 793,784 1,474,241 42,243,722 4,767,758 27,973,540 291,047 3,682,086 1,605,448 38,319,879 3,923,843 3,226,858 7,150,701 692,570 692,570
2,615,111 1,230,380 939,034 428,504 34,355,544 359,201 740,493 793,784 1,474,241 42,936,292 4,767,758 27,973,540 291,047 3,682,086 1,605,448 38,319,879 4,616,413 3,226,858 7,843,271
Assets Cash, gold and precious stones Balances with the SBV Due from banks Trading securities Loans and advances to customers Investment securities Long-term investments Fixed assets Other assets Total assets Liabilities Deposits and borrowings from the SBV and other banks Due to customers Grants, entrusted funds and loans exposed to risks Valuable papers issued by the Bank Other liabilities Total liabilities Sensitive difference with interest rate of balance-sheet items Off-balance-sheet commitments affecting sensitive difference with interest rate of assets and liabilities (net) Sensitive difference with interest rate of balance-sheet and off-balance sheet items
Note: Total assets represent gross carrying value which does not include provision for credit losses and impairment of investments.
36
35.2 .Liquidity risk Liquidity risk is when the Bank has difficulties in implementing its obligations for financial liabilities. Liquidity risk arises when the Bank may not afford to settle debt obligation when it is due at normal or difficult periods. In order to reduce liquidity risk exposure, the Bank should diversify the mobilization of deposits from various sources apart from its basic capital resources. In addition, the Bank should have policies to manage liquidity assets flexibly, monitor future cash flows and daily liquidity. The Bank should also evaluate the estimated cash flows and the availability of current collateral assets in case of obtaining more deposits. The maturity term of assets and liabilities represents the remaining terms of these assets and liabilities as calculated from the consolidated balance sheet date to the maturity date in accordance with contractual terms and conditions. The following assumptions and conditions are applied in the analysis of maturity of the Banks assets and liabilities: * Balances with the State Bank of Vietnam are classified as demand deposits, this includes the compulsory reserves. The balance of compulsory deposits depends on the proportion and terms of the Banks customer deposits. * The maturity term of investments in securities is calculated based on the maturity date of each type of securities. * The maturity term of placements with and loans and advances to other banks and loans and advances to customers are based on the contractual maturity date. The actual maturity term may differ as loan agreements are often extended. * The maturity of equity investments is considered as more than one year since these investments do not have specific maturity date. * The maturity term of deposits and borrowings from other banks and customers deposits is determined based on either the nature of these amounts or their maturity in the contract. Vostro accounts and demand deposits are transacted as required by customers, and therefore, being classified as current accounts. The maturity term of borrowings and term deposits is determined based on the maturity date in contracts. In fact, these amounts may be revolved, and therefore, may last beyond the original maturity date. * The maturity term of fixed assets is determined on the remaining useful life of assets.
37
The Banks classification of assets and liabilities converted into VND by liquidity risk as at 31 December 2009 was as follows: VND million Current Up to 1 month 2,615,111 1,230,380 611,482 3,178,174 143,421 550,176 8,328,744 29,800 4,287,488 209 243,975 5,101,472 297,752 428,504 15,816,313 8,333 4,527 79,822 16,635,251 7,793,153 350,868 287,570 83,132 8,514,723 1 - 3 months 3 - 12 months 1 - 5 years Over 5 years 2,047,846 740,493 358,057 517,136 3,663,532 Total 2,615,111 1,230,380 939,034 428,504 34,355,544 359,201 740,493 793,784 1,474,241 42,936,292 Up to 3 months 235,357 235,357
Overdue
Over 3 months
457,213 457,213
Assets Cash, gold and precious stones Balances with the SBV Due from banks Trading securities Loans and advances to customers Investment securities Long-term investments Fixed assets Other assets Total assets Liabilities Deposits and borrowings from the SBV and other banks Due to customers Grants, entrusted funds and loans exposed to risks Valuable papers issued by the Bank Other liabilities Total liabilities 235,357 673,025 1,298,991 16,678,352 (8,349,608) 3,318,400 11,387,936 1,177,110 8,061,303 6,244 996,235 4,857 10,245,749 (5,144,277) 222,248 7,488,267 47,025 1,945,486 9,703,026 6,932,225
50,000 1,035,708 215,164 67,340 301,600 1,669,812 6,844,911
326 22,614 22,940 3,640,592
4,767,758 27,973,540 291,047 3,682,086 1,605,448 38,319,879 4,616,413
Net liquidity
457,213
Note: Total assets represent gross amount which does not include provision for credit losses and impairment of investments.
38
35.3.Currency risk VND million Gold equivalent 1,007,145 2,556,178 7,335 3,570,658 598,000 3,378,906 19,150 3,996,056 (425,398) (425,398) Other currencies equivalent 194,023 44,816 4,142 24,933 267,914 3 203,119 12,743 215,865 52,049 52,049 Total 1,768,042 206,090 511,446 6,448,077 750 156,411 9,090,816 2,275,578 3,527,184 1,979 3,378,906 186,904 553 9,371,104 (280,288) (459,226) (739,514)
The Banks classification of assets and liabilities denominated in VND as at 31 December 2009 was as follows:
EUR equivalent 56,046 6,794 5,612 336 68,788 141 122,103 3,346 125,590 (56,802) (56,802) 1,677,434 3,201,962 1,979 151,665 553 5,033,593 149,863 (459,226) (309,363) 510,828 206,090 459,836 3,882,145 750 123,807 5,183,456
USD equivalent
Assets Cash, gold and precious stones Balances with the SBV Due from banks Loans and advances to customers Long-term investments Other assets Total assets Liabilities and owners equity Deposits and borrowings from the SBV and other banks Due to customers Grants, entrusted funds and loans exposed to risks Valuable papers issued by the Bank Other liabilities Capital and reserves Total liabilities and owners equity Currency position of balance sheet items Currency position of off-balance sheet items Currency position of balance sheet and off-balance sheet items
Note: Total assets represent gross carrying value which does not include provision for credit losses and impairment of investments.
Currency risk is the risk that the value of financial instruments fluctuates due to changes in foreign exchange rates. The Bank was incorporated and operates in Vietnam with VND as its reporting currency. The major currency in which the Bank transacts is also VND. During last year, the exchange rate between USD and VND fluctuated in a narrow margin. The Banks loans and advances to customers were mainly denominated in VND and partly in USD. However, some of the Banks other assets were denominated in currencies other than VND and USD. The Banks management set up limits on the position of currency. The currency position was monitored on a daily basis and hedging strategies were used to ensure the position of currencies is maintained within the established limits.
39
as at and for the year ended 31 December 2009 36. CAPITAL AND OPERATING LEASE COMMITMENTS VND million 31 December 2009 Capital commitments: construction of office premises purchases of office equipment Non-cancellable operating leases - due within 1 year - due within 2-5 years - due after 5 years 2,457 164,770 46,101 84,901 33,768 31 December 2008 77,118 154,773 12,976 109,564 32,233
37. EVENTS AFTER THE BALANCE SHEET DATE There have been no significant events occurring after the balance sheet date which would require adjustments or disclosures in the notes to the consolidated financial statements. 38. CORRESPONDING FIGURES Certain corresponding items and figures have been reclassified to conform to the current years presentation of the consolidated financial statements. 39. EXCHANGE RATES OF APPLICABLE FOREIGN CURRENCIES AGAINST VIETNAMESE DONG AT THE YEAR-END 31 December 2009 VND USD EUR GBP CHF JPY SGD CAD AUD Prepared by : Approved by: 18,479 26,500 29,410 17,800 201 13,160 17,690 16,500 Approved by: 31 December 2008 VND 17,430 24,400 25,120 16,450 190 12,040 14,240 11,930
Ms Vo Thi Kim Anh ChiefAccountant
40
Designed and Produced by Aquarius Co Ltd
Your Trustworthy Companion
DongA Commercial Joint Stock Bank

Head Office: 130 Phan Dang Luu, Ward 3, Phu Nhuan District, HCMC, Vietnam Tel: (848) 3995 1483 Fax: (848) 3995 1614 E-mail: 1900545464@dongabank.com.vn Hotline: 1900545464 Swift: EACBVNVX Website: www.dongabank.com.vn

Dab BCTN 23 07 2010

Caricato da

Informazioni sul documento

Descrizione originale:

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

Dab BCTN 23 07 2010

Caricato da

Copyright:

Formati disponibili

Foundation for

Nn tng cho S Vt Tri

QUALITY and sUsTAInAbILITY

EnhAncIng corE compETEncIEs, sTrEngThEnIng oUr FUTUrE

cht lng & Bn vng

QUALiTy and SUSTAiNABiLiTy

foundaTion for exCellenCe

leveraging Core CompeTenCies

engagemenT wiTh CommuniTy

Message from Chairman of the Board

pham van bu Chairman of the Board

DongA Bank Annual report 2009

Message from Chief Executive Officer

Tran phuong binh Chief Executive Officer

DongA Bank Annual report 2009

nn Tng Cho s vT Tri

DongA Bank Annual report 2009

Your Trustworthy Companion

DongA Bank Annual report 2009

DongA Bank Annual report 2009

Transaction channels of donga bank

subsidiaries (as of 31/12/2009)

Quality management system

DongA Bank Annual report 2009

SHAREHOLDERS GENERAL ASSEMBLY

Internal Audit Department

O ce of the Board of Management

Assets and Liabilities Committee

CONSUMER BANKING DIVISION

CORPORATE BANKING DIVISION

INVESTMENT AND TRADING DIVISION

OPERATIONS AND SUPPORT DIVISION

Risk Management and Compliance Department

Forex Trading Department

HR and Training Department

Risk Management Department

International Settlement Department

Gold Trading Department

Quality Management Department

Corporate Accounts Department

Research and Development Department

General A airs Department

Legal Department Support Center International Relations Department

Party and Union O ce

TRANSACTION CENTER, BRANCHES AND OTHER SUBSIDIARIES

DongA Bank Annual report 2009

Our Journey in Review

1998 2000 2001

DongA Bank Annual report 2009

DongA Bank Annual report 2009

DongA Bank Annual report 2009

DongA Bank Annual report 2009

DongA Bank Annual report 2009

DongA Bank Annual report 2009

DongA Bank Annual report 2009

DongA Bank Annual report 2009

Human Resource the vital Human Resource

DongA Bank Annual report 2009

DongA Bank Annual report 2009

Leadership in Modern technology

DongA Bank Annual report 2009

DongA Bank Annual report 2009