annual report 2006 - sacombank€¦ · 10 annual report 2006 total assets sacombank increases the...

ANNuAl RepoRt 2006SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK

2 Annual Report 2006

Annual Report 2006

CoNteNt

Message of the Chairman of the Board 6

SACOMBANK – The leading commercial joint stock bank of Vietnam 8

Major targets of the 2007 business plan 10

Organizational chart 12

Board of Directors 14

Board of Supervisors 15

Board of Management 16

Key financial indicators 18

2006 performance 19

Corporate information 28

Financial reports 29

Sacombank’s ten milestones in 2006 58

Investor relations 64

Subsidiaries and joint–venture companies 67

Distribution network 68

3

Sacombank always keeps its principles: consider customers the central factor; consider its employees the most valuable asset; regard the optimization of value for shareholders and investors the most important mission...”Mr Dang Van Thanh – Chairman of the Board

“

The year 2006 witnessed a spectacular development of the Vietnamese economy and outstanding achievements in the global context together with a fast growth of commercial banks. Being not an exception in 2006, Sacombank showed a great result in its operation and activities to help orient its development in the future. Under the motto “speeding up development, improving quality for a prompt and sustainable development”, Sacombank successfully fulfilled its 2006 targets with an average growth rate of 50 - 70% compared to that of 2005. The year 2006 also witnessed big events of Sacombank of which:

Sacombank was the only commercial bank to achieve i. two of the eight records on the stock market since the stock market started trading:

Sacombank was the first bank listed on the 1. Vietnamese stock market and;

Sacombank is the only joint-stock commercial bank 2. with the Fund Management joint-venture company listing its certificate on the domestic stock market;

Sacombank was the first joint-stock commercial bank ii. to establish a subsidiary operating in financial leasing (SacombankLeasing);

Sacombank was recognized as the Best Joint-Stock iii. Commercial Bank for International Payment and the Best Bank for Lending to small and medium enterprises; in addition;

Sacombank was the joint-stock commercial bank iv. which has the largest chartered capital and distribution network in Vietnam.

the year 2006 has passed. In addition to summarizing its 15 years of establishment and development, Sacombank has also set targets for 2007, the first year of the next 15-year period. Sacombank aims at becoming a modern and multi-functional retailer, reaching an average level of development in the region (short-term target); while at the same time continuing to consolidate its coalitions, associations, and cooperation and developing its joint-venture and subsidiaries’ operations to the maximum level, aiming at providing the customers with all-in financial solutions to improve Sacombank’s competitiveness in the context of the international economic integration (long-term target).

Aiming at the short-term and long-term targets, with the technical assistance of foreign strategic shareholders and the support of nearly one million customers and over 13,000 shareholders nationwide, Sacombank has been carrying out adjustments to the road map of development for the last few years to hasten its growth rate and improve quality in order to maintain its position on the market and to keep pace with the general development of Vietnam’s commercial banks. In the remaining four years of the 2001-2010 period, Sacombank will continue to:

lAdIeS ANd GeNtlemeN,

meSSAGe of the ChAIRmAN of the BoARd


Increase its financial capacity; i.

Fulfill its plan to expand the distribution network; ii.

Perfect its legal corridor, aiming for the best international iii. regulations and standards;

Improve its supporting and supervision system, risk iv. management, and focus on boosting the modernization of banking technology;

Focus on staff training to improve the quality of v. human resources;

Boost the operation of joint-venture and subsidiary vi. corporations while bringing its network of coalitions, associations, and cooperation into full play at the same time; finally,

Continue to restructure and improve the quality of vii. management. It aims at improving Sacombank’s competitiveness and strength to seize the golden opportunities and develop effectively and simultaneously overcome the challenges of international economic integration.

On behalf of Sacombank, I would like to express my deep

gratitude to the leaders of the State Bank of Vietnam, the

State Securities Commission of Vietnam, the Hochiminh

City Securities Trading Center, branches of the State

Bank of Vietnam at the municipal and provincial level,

international and local economic and financial institutions,

investors, customers and shareholders nationwide for

your interest, cordial solicitude and trust in Sacombank

over the past 15 years and especially in 2006.

Sacombank always keeps its principles: consider

customers the central factor; consider its employees the

most valuable asset; regard the optimization of value for

shareholders and investors the most important mission. At

the same time, Sacombank will also develop maximum its

creativeness and non-stop renovation to aim at perfection

and sustainable development. We consider such values

the key factors in the orientation of Sacombank’s long-

term development.

Dang Van Thanh Chairman of the Board

7Annual Report 2006

In 2006, Sacombank became the first bank of Vietnam listed on the Hochiminh City Securities Trading Center. The year was marked with Sacombank’s strong performance, leading joint-stock commercial banks in the scale of its chartered capital (VND 2,089 billion), distribution network, number of public shareholders (over 13,000), a system of joint-ventures and subsidiaries operating in various fields such as investment fund management, overseas remittance, stock market, financial leasing, debt management, asset control, etc. Sacombank was also one of the joint-stock commercial banks with the highest growth rates. Its average increase in total asset, funds mobilized from various sources and credit funds was over 70% compared to those of 2005. Specifically, the total asset increased 70.6% in 2006, mobilized funds increased 75.2%, financial loans increased 72.6% and profit before tax reached VND 543 billion, which was an increase of 77.5% and surpassed the VND 407 billion formerly planned during the annual general shareholders meeting. By the end of 2006, the market capitalization of Sacombank was approximately USD 1 billion.

Apart from being recognized as the best bank in supporting small and medium enterprises, Sacombank has also provided the best products and services to individuals. Aiming at being one of the leading multi-functional retail banks in Vietnam and the region, Sacombank is constantly improving the quality of its operation such as to be able to provide an all-inclusive service to a range of customers, in addition to creating more benefits for its employees, shareholders, investors and the civil society.

The fact that Sacombank becomes the first bank in Vietnam listing its shares on the Hochiminh City Securities Trading Center on July 12th, 2006 was an important event for the Vietnamese financial sector and it marked a turning point in the future development of Sacombank. In 2006, Sacombank also brought into operation its three subsidiaries consisting of an overseas remittance service (SacomRex), a securities firm (Sacombank Securities), and a financial leasing provider (SacombankLeasing) - the first of its kind in Vietnam. Sacombank also established an additional 46 transaction points nationwide, comprising 14 branches and 32 transaction offices. This increases the total number of Sacombank’s transaction points to 159 in 38 cities & provinces nationwide. Sacombank also made a large system of international banking agents with 8,900 swift keys located in 222 banks of 86 countries

2.089 BIllIoN VNd

The leading joint-stock commercial bank in the scale of its chartered capital.

ShAReholdeRS13.000The leading joint-stock commercial bank in the number of public shareholders.

159 /38CItIeS & pRoVINCeS

tRANSACtIoN poINtS

The leading joint-stock commercial bank in the distribution network.

8.900 SwIft keyS

Located in 222 banks of 86 countries and territories.

SAComBANk – the leAdING joINt-StoCk CommeRCIAl BANk of VIetNAm


and territories in 2006. As for its strategic cooperation, Sacombank has formed relationships with other foreign financial institutions; it has continued to receive technical support from IFC, ANZ and CIDA, has connected up with international credit card organizations and participated in conferences and fora hosted in the US and Singapore. It was an important and meaningful start for Sacombank, as these events not only affirmed the stronger and more stable development of Sacombank but also marked a turning point in Sacombank’s history and raised it to new heights of development in the context of the global economic integration. The expansion of its network to increase market share, in conjunction with the establishment of more subsidiaries to professionalize its banking activities made a necessary foundation for Sacombank to develop in a sustainable manner in the future.

Several factors have contributed to Sacombank’s success. First of all, Sacombank is confident in applying the Government’s policies for development, put the banking sector’s reform guidelines into practice and make use of its staff members’ good performance. Secondly, Sacombank promptly sets up a long-term plan to develop a road-map with specific targets at specific points and establishes a clear legal corridor while considering consolidation and development as its major tasks. Thirdly, Sacombank spares no effort to enhance its internal capacity, expanding its distribution network and establishing close relationships with its strategic partners, both international and domestic, to attract as many resources as possible and to reduce the pressure of competitiveness. Finally, Sacombank effectively applies its physical, spiritual, and benefit policies to develop strong, dynamic and stable human resources. In particular, Sacombank builts up and develops a generation of customers who are the best long term customers. These factors have greatly contributed to the sustainable development of Sacombank

the Sacombank of today has become an indispensable component of Vietnam’s financial sector and one of the most prestigious and favorite banking trademarks chosen by levels of the Vietnamese society and the international community.

This has been proven by the fact that Sacombank has been granted awards by the Vietnamese Government and other prestigious international financial organizations. They include the Certificate of Merit by the Governor of

the State Bank of Vietnam to Sacombank’s employees for their achievements of the year; the award “The Lighthouse” in the banking industry voted by the customers; titles such as the “Famous Vietnamese Brand Name” or the “High Quality and Prestigious Vietnamese Enterprise” awarded by local authorized organizations; the award “Vietnam Best Bank in SME loans” by the SMEDF; the award “Best Bank of International Transaction” by Citigroup; the award “The Vietnamese best bank in foreign exchange services 2006” by APEC institutions and the award “High Quality in STP” by the Standard Chartered Bank.

In conclusion, to become a leading joint-stock commercial bank in Vietnam and a famous trademark widely known in the region’s financial market, Sacombank has carried out practical improvements. It includes strengthening of its financial capacity and human resources, upgrading advanced technologies, expanding its network, improving and innovating products and especially the management, aiming at providing the Vietnamese people with best-quality banking services and developing together to achieve prosperity.

9Annual Report 2006

mAjoR tARGetS of the 2007 BuSINeSS plAN

65% depoSIt GRowth

61% loAN GRowth

70% ASSet GRowth

ChARteRed CApItAl GRowth 113%


total AssetsSacombank increases the capital to expand business. The total assets are expected to increase to VND 40,000 billion, over 70% compared to that of 2006.

Chartered capitalSacombank continues to improve financial capability with increasing chartered capital by paying dividends in stocks and issuing new shares. The chartered capital is expected to increase to VND 4,450 billion to the year end, increasing by approximately 113% from 2006.

depositsSacombank accelerates the growth rate of deposits by (i) developing a policy to attract depositors, (ii) improving current deposit products, and (iii) developing new products based on modern banking applications. Deposits are expected to increase by 65% from 2006 of which 20-25% is expected to be low-interest funds

loansSacombank increases the market share by increasing loans properly and carefully to minimize risks by

Developing a specific policy for customers obtaining i. loans from retail banking;

Perfecting the credit policy and procedures and ii. constructing loan portfolio;

Improving and developing the loan products suitable iii. to each location and societal class;

Standardizing the risk control policy; andiv.

Improving capacity of the credit and assessment v. staff.

The outstanding loan is expected to increase approximately 61% compared to that of 2006. The NPL is always kept below 2%.

Annual Report 2006

T24 CoRe BANkING SoftwARe

Diversificationof fINANCIAl SeRVICeS

120% pRofIt BefoRe tAx

220 tRANSACtIoN poINtS

4.700 employeeS

11

Services Sacombank focuses on reducing the ratio of loan and deposit by investing in different sectors. In addition, it focuses on the diversification of services, especially the money market activities, monetary transfer, cards and modern e-financial and e-banking services with advanced retailing facilities and professional sales staff.

profitsSacombank continues to maintain and increase the ratio of non-credit income and total income, including service charge, credit charge and other charges through increasingly better services. It is expected that the growth rate of before-tax profit is over 120% compared to that of 2006. The aim is for non-credit income to account for over 30% of Sacombank’s total income.

modernization of banking technologySacombank continues to invest and modernize banking technology, completing the development of the T24 core banking software in the entire network, helping to improve the management and administration capacity and facilitating the development of service products based on modern banking technologies.

Network expansionSacombank continues to expand the network by proactive acquirements and increasing the market share. By the end of 2007, Sacombank’s network is expected to serve the country with approximately 220 transaction points, expanding to 44 out of 64 provinces and cities.

human resource developmentSacombank improves human resources management by developing dynamic, professional and long-term commitment staff with the help of modern recruitment methods, training and retraining programs and competitive policy for employee benefit. The number of staff is expected to increase to approximately 4,700 by the end of 2007.

oRGANIzAtIoNAl ChARt


The fact that Sacombank becomes the first bank in Vietnam listing its shares on the Hochiminh City Securities Trading Center on July 12th, 2006 was an important event for the Vietnamese financial sector...”Mrs Phan Bich Van – General Director

“

BoARd of dIReCtoRS

mr dang Van thanh Chairman

mrs huynh Que ha First Vice Chairwoman

mr Nguyen Chau Vice Chairman

mr john law Member

mr tran Van Ngoc Member

mrs Nguyen thi mai thanh Member

mr dang hong Anh Member


BoARd of SupeRVISoRS

mr Nguyen tan thanh Chief Supervisor

mr le Van tong Supervisor

mr pham duy Cuong Supervisor

mr doan Ba tung Supervisor

15Annual Report 2006

mr hoang khanh Sinh First Deputy General Director

mrs phan Bich Van General Director

mrs Nguyen thi thanh mai Deputy General Director

mr ho xuan Nghiem Deputy General Director

mr Nguyen Quang trung Deputy General Director

mr tao thanh danh Deputy General Director

mr luu huynh Deputy General Director

BoARd of mANAGemeNt


“Sacombank is the leading joint-stock commercial bank in terms of its chartered capital, its distribution network, its number of public shareholders, its system of joint-ventures and subsidiaries operating in various fields...”

key fINANCIAl INdICAtoRS

(Unit: billion VND)

(Unit %)

yeAR-eNd 2006 2005 2004 2003 2002 2001

Total assets (billion VND) 24,764 14,456 10,395 7,304 4,296 3,134

Chartered Capital (billion VND) 2,089 1,250 740 505 271.7 190

Equity capital (Chartered capital + Reserves) 2,429.8 1,710.8 859.2 590.1 321.5 216.6

Distribution network (transaction offices) 159 103 90 75 55 35

Total number of employees 3,808 2,654 1,865 1,488 1,063 748

eNtIRe yeAR 2006 2005 2004 2003 2002 2001

Total income 1,995.7 1,208.6 835.9 617.9 347.1 254.0

Total expenses 1,452.5 902.5 637.9 492.8 267.8 214.5

Pre-tax profit 543.3 306.1 198.0 125.1 79.2 39.5

Net profit 407.9 234.4 151.2 90.2 53.9 26.9

fINANCIAl RAtIoS 2006 2005 2004 2003 2002 2001

Capital adequacy ratio (CAR) 11.82 15.40 10.49 10.06 8.37 8.26

Ratio of short-term capital source used for medium and long - term loans 15.54 19.10 5.68 9.40 21.42 18.51

Mobilizing capital / Total assets 86.82 84.95 88.51 88.09 89.75 90.95

Lending / Mobilizing capital 67.62 68.61 65.00 73.49 85.59 81.62

Lending / Total assets 58.71 58.28 57.59 64.74 76.79 74.23

Overdue dept / Total outstanding depts 0.95 0.88 1.07 0.56 0.57 0.88

Non-credit income / Total income 32.69 30.21 31.40 26.10 15.40 18.40

Management expenses / Total expenses 26.79 27.86 28.64 27.56 30.03 24.99

Net profit / Average total assets 2.08 1.85 1.66 1.55 1.45 1.01

Net profit / Average Chartered capital + Reserve for supplementing chartered capital 20.56 20.58 23.71 22.59 22.76 18.44

Ownership capital coefficient (Assets / Equity capital) 10.19 8.45 12.10 12.38 13.36 14.47


Annual Report 2006

2006 peRfoRmANCe

Vietnamese economy in 2006In 2006, Vietnam reached milestones of success in various areas. It has shown socio-economic progress and witnessed special national events such as the Vietnam APEC CEO Summit successfully held in 2006, Vietnam becoming an official member of the WTO, and Permanent Normal Trade Relations (PNTR) status granted to Vietnam by the United States Congress:

GDP has increased by 8.17% (compared to the target of 8%);•

Export turnover has reached USD39.6 billion which •is an increase of 22% compared to that of 2005, accounting for 60% of the GDP.

Import turnover has reached USD44.4 billion, which is an •increase of 20%; the trade deficit has decreased to the lowest-ever 12.1%; the total invested capital has reached around 41% GDP (compared to the target of 38.6%);

The consumer price index (CPI) has increased by 6.6% •which is lower than the GDP and lower than the 8.4% increase of 2005; 2006 was the third consecutive year in which the CPI decreased.

Vietnam was a latecomer to the stock market scene; however, outstanding successes were still achieved in its fledgling stock market. In addition, financial investment companies were established acting as capital mobilization channels. However, these companies were also the commercial bank system’s competitors in capital mobilization and deposit transfer.

In 2006, Vietnam’s banking sector continued to have a high growth rate in a wide range of operational fields; as a whole, monetary and financial markets were stable. The total sources of mobilized capital increased by 35%, while the “economic lending-debit balance” increased by 21.4% in 2005.

In term of macroscopic management, the State Bank of Vietnam promulgated important policies and mechanisms in compliance with international standards and protocols and with the present situation of the domestic banking sector, for the purpose of fulfilling bilateral and multilateral commitments to opening financial markets and to enhancing the commercial bank system supervisory role.

During the year, the gold price fluctuated, increasing by an average of 36.6% compared to that of 2005, which is the highest average increase compared to previous years. The USD value was stable due to the decrease in the international market price and the high increase in the sources of USD into Vietnam. On the other hand, Vietnam was badly affected by bird flu, hoof and mouth disease, storms and floods.

Banking operations in 2006The previously mentioned advantages, disadvantages and opportunities had a strong effect on every aspect of the business operations of commercial banks in 2006. Notwithstanding, Sacombank achieved impressive and outstanding successes in 2006 – the first year of the 5-year plan 2006-2010 and the important transitional year of the 10-year strategic plan 2001–2010. These were proud achievements for Sacombank to celebrate on its 15th anniversary

Sacombank continued with its business policies of dynamic growth and diversification, meeting customers’ demands with highest-quality service. In addition, Sacombank developed strong financial capacity and administrative competencies, restructured its mechanisms, updated its banking technology, established rules and procedures, expanded its network, increased market share and diversified its commercial banking products and services. It helped to fulfill developmental needs and to meet the competition requirements during the process of integration.

Sacombank started listing its shares on July 12th, 2006 on the Hochiminh City Securities Trading Center which was an important event demonstrating Sacombank’s determination to overcome challenges.

Sacombank established better relationships with domestic and overseas financial institutions, continued to receive technical assistance from IFC, ANZ and CIDA, cooperated with the international credit card agency, and participated in international conferences and fora in the USA and Singapore. Sacombank was most proud to receive prestigious awards from the HCMC People’s Committee, the State Bank Governor and influential domestic and overseas organizations.

19

The 2006 success was the affirmation of Sacombank’s dedication to sustainable development. After its shares and brand name had been listed on the stock market, Sacombank enjoyed an ever-increasing reputation which enabled it to fulfill its obligations towards the State Bank, its shareholders and customers and its own employees.

1. total Assets:

At the 2006 year end, total assets reached VND24,776 billion which is an increase of 71.4% compared to that of 2005. It means that total assets increased 7.9 times compared to that of 2001, with an average increase of 52% per year. The structure of the total assets was organized to ensure not only high profitability but also payment capability. Of the total assets, the profitable assets accounted for 82.5%.

2. Chartered Capital:

At the end of 2006, Sacombank’s chartered capital was VND2,089 billion which is an increase of 67.2% compared to that of the beginning of 2006. Compared to 2001, the chartered capital increased 11 times, with an average increase of 62.3% per year. The capital contribution of strategic foreign shareholders accounted for 30% which was in compliance with the State Bank’s regulations.

With the present chartered capital, Sacombank ranks first in joint-stock commercial banks and fifth in commercial banks in Vietnam. The increase in chartered capital in 2006 facilitated Sacombank to develop financial capacity, enhance competitiveness, expand networks and meet the regulated stipulations concerning capital safety in banking operations. Besides, the investment cooperation of IFC,

ANZ and Dragon Financial Holdings strategic partners brought about opportunities to gain access to and gain experience from international practices and standards. This was seen as a positive move in the process of integration.

Sacombank properly implemented the setting-up and use of funds in compliance with the regulations of the State Bank and the resolution of the annual general shareholder meeting. The Chartered Capital Additional Fund, the Financial Contingency Fund and the Retained Profits Fund were set up in a way to ensure the benefits of shareholders and, simultaneously, generated money accumulation contributing to the build-up of financial strength and financial safety in banking operations. At the end of 2006, owner’s equity reached 2,870 billion, accounting for 11.6 % of total sources of capital, an increase of 52.1% compared to the beginning of the year. It was a 13.25 times of increase compared to that of 2001 with an average increase of 69.9% per year.

3. Capital mobilization:

Capital mobilization plays a key role in current banking activities where the investment of capital into socio-economic development is required and where there is a large amount of unemployed capital from the population ready for mobilization. Therefore, in 2006 there was still strong competition for sources of capital through mobilization between commercial banks and for attracting unemployed capital; hence, commercial banks competed with one another through policies of improving customer services and through interest rates and promotional campaigns. At the same time, the heated stock market led to the emergence of many financial investment companies which comprised the gigantic capital mobilization channels also competing with the commercial bank system.

5,000

10,000

15,000

20,000

25,000

30,000

Non-credit income / total income

2001 2002 2003 2004 2005 2006

3,13

4

3,13

4

24,7

76.1

8

14,4

54

10,3

95

7,30

4

Total Assets (VND billion)

Chart: Total Assets 2001-2006

1,000

1,500

500

2,000

2,500

2001 2002 2003 2004 2005 2006

Chartered Capital (VND billion)

271.

7

190 50

5 740

1,25

0

2,0

89

Chart: Chartered Capital 2001 - 2006


Annual Report 2006

With the expansion of the network system and the recruitment of professional sales staff, Sacombank further developed brand name advertising and made a strong impression on clients coming for money deposits by providing a helpful, courteous service with good customer service skills, through which the mobilization of sources of capital became more effective. At the end of 2006, sources of capital through mobilization (converted to VND) reached VND21,338 billion, an increase of 74% compared to that of 2005 and twice higher than the growth rate of the whole sector (35%). Compared to 2001, the sources of capital through mobilization increased 7.5 times with an average increase of 50.5% per year.

Regarding the structure of capital sources, VND accounted for 73%, gold for 11.9% and foreign currency for 15.1%. Sources of capital from businesses and the general public had the largest proportion, accounting for 93.9% of the total sources of capital, an increase of 75.4% compared to that of 2005. Sources of capital referred to as short-term deposits accounted for 82%, an increase of 71.6% compared to that of 2005.

To further develop sources of capital through mobilization and to increase long-term deposits, Sacombank continued to negotiate with international financial institutions for the disbursement of sources of capital (trust funds and invested capital). The year-end balance reached 374.7 billion VND, accounting for 1.8 % of total sources of capital through mobilization, of which RDF II accounted for 133.9 billion VND, FMO for 190.8 billion VND and SMEDF for 50 billion VND.

The dramatic increase in sources of capital through mobilization and the logical structure of sources of capital

demonstrated that Sacombank’s expansion network of larger operational areas and spacious premises started to produce the desired results. It is a competitive advantage for Sacombank during the overall integration period.

4. Credit operations:

As a result of the administrative reform and the economic integration, capital requirements for social development continued to increase and consequently helped to facilitate credit growth. The outstanding loan of 2006 showed a moderate level of increase (21.4%) due to the loan restrictions imposed by the state-owned commercial banks for reconstructing the outstanding loan and settling bad debts. Unlike the previous years, the State Bank encouraged higher outstanding loan provided that the loan portfolio was reasonably restructured and credit quality was strictly monitored.

Sacombank’s total outstanding loan (converted to VND) at year end reached VND14,394 billion, accounting for 74 % of total capital sources, an increase of 70.9% compared to the beginning of the year, which was three times higher than the growth rate of the whole sector. Compared to 2001, the outstanding loan had increased 6.2 times with an average increase of 44.7% per year.

Type of currency:• VND still played a key role with a lending proportion of 74.8%; foreign currency accounted for 21.3% and gold for 3.9%.

Type of fund:• short-term loans accounted for 65.1%, medium-term and long-term loans for 34.9%.

Economic grouping:• State-owned enterprises accounted for 0.56%, private enterprises for 52.6% and individuals and households accounted for 46.8% (2005: 39.62%).

The proportion of lending to mobilization at year end was 67.5%, down 1.1% compared to 2005 (68.6%), and down

Chart: Source of capital 2001 – 2006

5,000

10,000

15,000

20,000

25,000Capital Mobilization (VND billion)

2,8

51

3,8

56

6,4

35

9,2

01 12

,26

0.1

21,3

38.0

2

2001 2002 2003 2004 2005 2006

21

14.1% compared to 2001 (81.6%). It had an impact on Sacombank’s progress towards sustainable development, with a gradual diversification of the list of capital available for use in order to move Sacombank towards the goal of decreasing dependence on credit operations.

Sacombank also developed new credit products and cooperated with well known enterprises to provide the client with banking products and services and insurance services. This was the new strategy for product marketing and sales as shown in the overall plan of Sacombank’s network operating system for maximizing the advantages available to gain more benefits.

In 2005, the State Bank promulgated Decision no. 493/2005/QÑ-NHNN regulating the classification of debts, setting up and using the Credit Risk Contingency Fund for the purpose of gradually enabling credit operations to comply with

international standards and practices. The Decision had a strong influence on commercial bank operations relating to lending, collection of debts, and setting-up of contingency and profit funds. However, Sacombank strictly abided by the decision and experienced a high loan growth with the credit quality under tight control. The non performing loan was 0.95% of which bad debts accounted for 0.72%. The Risk Contingency Fund at year-end reached VND81.4 billion an increase of 77.4% compared to that of 2005. It was Sacombank’s prominent position in the process of outstanding loan reconstruction based on risk dispersion lending, which applies if the beneficiaries are small and medium enterprises, individuals and households.

After experience had been gained during the establishment of an enterprise credit-based classification system, a pilot development program for individual credit-based classification was initiated in 2006. Although still a pilot, Sacombank’s internal credit-based classification system proved to be a most effective tool for the assessment and classification of clients’ credit worthiness, for credit quality management and for risk forecasts, etc. It would serve as a basis for decisions on the granting of credits with specified limits, credit terms or periods, and interest rates. Sacombank will seek permission from the State Bank to apply this system for classifying debts and setting up Credit Risk Contingency Funds.

Pledges, potential debts on opening L/C and bank guarantees were tightly controlled by professional measures. At the end of the year, the balance of L/C and guarantee operations was VND2,629.6 billion, an increase of 81.2% compared to that of the beginning of 2006.

5. Investment operations:

During the integration process in which the economy prospers and the stock market is booming due to the State-promoted policy on equitization of enterprises, the potential opportunities to develop investment operations are enormous. Along with a rapid increase in chartered capital for meeting the capital requirements of investment operations, the formation of joint ventures and mergers and the contribution of capital to business organizations, Sacombank has been implementing a policy on diversification of investment portfolio. It was for the purpose of secondary settlement of payment, risk dispersion and profit maximization. At year end, the total balance invested in capital securities, debt securities and capital contribution for share purchase reached VND3,109 billion, an increase of 61.2% compared to that of 2005. As a whole, investment operations significantly contributed to Sacombank’s comprehensive profit performance.

2,000

4,000

6,000

8,000

10,000

12,000

VND Gold Foreign exchange

Lending debt balance (VND billion)

10,7

71.0

1

558

.76 3,0

64

.54

Chart: Lending debt balance 2006

Chart: Sources of Capital Structure 2001 – 2006

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2001 2002 2003 2004 2005 2006

Capital Structure (VND billion)

2,32

7 3,30

1 4,7

29 5,9

87 8

,425

.24

14,3

94

.31


Annual Report 2006

6. payment and Guarantee operations:

International settlement: Up to end 2006, Sacombank established relationships with 1,173 branches of 72 Vietnamese banks and with 8,900 branches of 222 banks in 86 countries in the world. The total international settlement volume reached USD1,917.89 million, an increase of 26% compared to that of 2005

Domestic settlement: The volume of domestic settlement transfers inwards and outwards increased constantly, the total volume for the whole year reaching VND94,415 billion, with an increase ratio of 102% from 2005.

Guarantee operations: The volume of guarantees in 2006 was 68 million USD or 982.3 billion VND. The guarantee balance at year end converted to VND was 406.9 billion VND.

7. Card operations:

Following the restructuring, the Individual Service Sector of Sacombank Card Center gradually stabilized and developed compared to previous years. New products and services such as Sacom Visa Debit, the VNPay co-brand card, the Sacom Metro co-brand card, Master Card payment acceptance and money service transfer via ATM started to make substantial progress. The total number of cards issued in 2006 was 58,775, which is an increase of 49% compared to that of 2005. The total number of cards in circulation at year end reached 94,144. The card acceptance network was reconstructed and expanded with 1,317 card acceptance terminals by year end.

In addition, the Card Center took the required steps in preparation of starting a joint venture such as investments in human resources, managerial experience and competency, networks for card payment acceptance, material facilities and technical infrastructure.

8. Business Results:

In 2006, Sacombank continued to make a profit and a profit larger than ever before. Pre-tax income reached VND611.33 billion, which is an increase of 95.4% compared to that of 2005, 15.5 times higher than in 2001. The average annual growth rate of pre-tax income in the 2001-2006 period was 74%.

In addition, there was a positive movement in the income and expenditure structures with a gradual increase of non-credit income, which helped to minimize the dependence on income from credit operations. Operating expenses decreased in volume compared to the previous years which contributed to higher profitability.

9. financial targets and operational SafetyThe average ratio of profit to chartered capital and •additional chartered capital fund was 20.56%, equaling that of last year;

The average ratio of profit to total assets was 2.08%, •higher than that of last year (1.85%);

The capital adequacy ratio was 11.82% (higher than •that stipulated by the State Bank (8%));

The percentage of sources of short-term capital / •medium and long-term loans was 15.54% (lower than that stipulated by the State Bank (40%));

In general, although there was a rapid increase in total assets and “own-acquisition” capital, profitability ratio indices were the same as or higher than those of 2005. Percentages of regulatory capital for operational risk were in compliance with the State Bank’s regulations. All proved that Sacombank was moving towards sustainable development and strictly abided by the State’s guidelines and policies.

Chart: Profit 2001 – 2006

100

200

300

400

500

600

700

2001 2002 2003 2004 2005 2006

(VND billion)

611.

33

40

79

125

198

312.

81

23

Business administration:

1. Restructuring of the operational System:

In order to meet the requirements of integration and competition, Sacombank should rapidly develop both the quantitative and qualitative aspects of business operation. In other words, Sacombank should restructure its operating system to establish its product lines on a client-oriented service basis. Therefore, Sacombank began to restructure its operating system in 2006, starting with the head office by establishing new operational sections / departments, while at the same time checking on and re-establishing the functions and responsibilities of the already existing departments.

2. operational Systems management:

Management Board, Inspection Committee and Management Committee are the three organs working independently with a clearly defined division of work and responsibilities. The three cooperate with each other in management, administration and supervision. Each consists of experienced and highly skilled members of the banking industry, law-abiding individuals with a strong sense of responsibility and good team spirit. They work closely together to maintain unity and oneness of mind and to improve effectiveness in management, administration, and supervision of Sacombank’s operational aspects.

The Management Board operates on the basis of a permanent management system; the Inspection Committee independently performs its inspection function with help from the internal control-and-inspection network and the Management Committee, through the overall banking operations in progress, concentrates on the monitoring of the execution of business plans and provides timely guidance and appropriate measures.

3. operational Sector / Section-based management model:

Along with the rapid development of the network system, the management model based on operational sectors/sections is increasingly proving to be preeminent. It permits Sacombank to direct and streamline operations throughout, while timely meeting business demands at the level of the units. The system of decentralized administration with each level having its own area of responsibility has allowed the operational sectors/sections to play a pro-active role, improving business planning and the orderly implementation of financial business plans, network expansion, human resources, etc.

4. operational Risk management:

Following this new method, Sacombank has established an Operational Risk Management Department. The Department works independently aiming at professionalizing risk management for all aspects of banking operations. In addition, with professional assistance from IFC, ANZ and CIDA, operational risk management is conducted in the most effective manner.

5. human Resources and professional training:

When growing continuously, Sacombank needs to anticipate future demands on human resources both in terms of quality and quantity. At the end of 2006, the total number of employees was 3,806, increasing by 1,152 people with an increase of 43.4 % compared to the beginning of the year. Compared to 2001, staff increased by 3,058, with an average annual increase of 38.6%.

Analyzed from a gender point of view, Sacombank’s organizational structure showed a proportion of 50.4% female and 49.6% male at the end of the year; analyzed from an educational background point of view, the human resources showed a proportion of 1% post-graduates, 67% university and senior college graduates, 8% junior college graduates, and 24% senior high school graduates.

The quality of human resources is a factor that has a significant impact on whether or not Sacombank’s goal of achieving sustainable development can be reached. Therefore,, Sacombank pays much attention to recruitment based on “input” quality criteria, on professional training and further training with the aim to provide Sacombank’s staff with current knowledge and skills and with special emphasis on the role of self-training. The seminars / workshops which Sacombank organizes regularly at the units to provide information, professional knowledge and work experience are the best basis for fulfilling individual


Annual Report 2006

learning needs. These activities not only help to significantly reduce training costs but also provide employees with a way to self-training.

Along with the program to restructure the operating system, Sacombank has effectively implemented a policy on attracting and keeping talented staff and on the rotation of management level jobs. In addition, Sacombank has gradually been perfecting its recruitment procedures and criteria, and it has offered staff training and management development in order to improve management skills with the aim to develop better management practices. It has helped Sacombank to expand its capacity for meeting the integration demands.

6. Banking technology:

The modernization of the banking systems plays a key role in the banking industry. State-of-the-art banking technology for example is used for data-centralized business administration and management, risk management, banking product-and-service development, accounting and financial administration, internal operations supervision/auditing, electronic banking services development and payment transaction via ATM. Therefore, investing in banking technology is Sacombank’s first priority.

In 2006, Sacombank started to apply T-24 Corebanking in 40 transaction terminals covering all of the northern sectors. New branches and banking transaction offices were established and put into operation. In addition, Sacombank has gradually set up a network security system and an overall banking database/archive system. Sacombank has also established action plans in case of emergency to ensure the continuing operation of the system based on technical assistance from IFC and ANZ.

7. Administrative policies:

In 2005 and 2006, the State Bank promulgated important policies on banking operations based on international standards and practices. Sacombank had its banking system restructured in accordance with those policies, amending, updating, promulgating and systematizing scores of policies and written guidelines to provide timely guidance for the implementation of the new regulations/laws, to help executive staff members to perform their respective banking operations in a proper and overall system-based manner and to pave the way for operational standardization. In addition, the registry-based policy web page has already been completed; the information needs to be updated on a regular basis, resulting in a reliable address to search for Sacombank’s information and policies.

8. development of New products and Services:

Due to the increasingly harsh competition in many aspects of banking operations, it is imperative to improve and diversify products and services. With experience learned from ANZ, Sacombank introduced several new products to the market in 2006, in addition to continually improving existing products. In particular, those products using e-banking technology were put to the test with favorable results.

Compared to the previous years, a noticeable improvement consisted in the research and design of new products and services and in the greater professionalism in the organization of training and promotional activities. For optimizing the network system, Sacombank already operated several products and services jointly with other banks.

At the same time as restructuring the operating system, Product Marketing & Development for Individuals and Corporates Department was set up at the head office to assist in the standardization of banking products and services, professionalizing implementation procedures and, in due course, assisting clients with information.

Chart: Employees 2001 – 2006 and human resource in 2006

2001 2002 2003 2004 2005 2006

748

1,0

63

1,4

88

1,8

65 2

,654

.00

3,8

06

.00

500

1,000

1,500

2,000

3,000

3,500

4,000

2,500

Employees

25

9. Brand development, International Relations and public Relations:

In 2006, Sacombank was making greater progress in brand promotion and community relations than in the previous year which contributed to Sacombank’s improvement of brand status and prestige.

Domestically, Sacombank successfully held a number of events: the listing of shares on the stock market, Sacombank’s 15th anniversary, inaugurations of new branches and subsidiaries, the implementation of promotional programs, the granting of scholarships by Sacombank and the Sacombank cross-country championship (for community health awareness). Sacombank staff attended workshops/seminars, participated in exhibitions, organized humanitarian relief work, etc. In addition, Sacombank’s brand promotions appeared in the mass media in advertising programs.

Internationally, Sacombank attended meetings such as the International Monetary and Financial Committee Meeting held in Singapore, presided over by the International Monetary Fund and meetings with the correspondent banks and the Asia Pacific Investment Conference held in the USA. With the results achieved in 2006, Sacombank was able to build up trust in the STB shares among investors in Vietnam and overseas and ensured that its brand will be recognized in future.

10. Share listing

Sacombank announced listing its shares on July 12th, 2006 on the securities trading floor in HCMC. Sacombank’s share (STB) price fluctuated following the general market trend without any sudden increase-and-decrease changes. In addition, Sacombank strictly abided by the securities regulations and fulfilled all the obligations

of a listed company. With the results achieved in 2006, Sacombank was building up domestic and overseas investors’ confidence regarding the STB shares.

11. Internal Audit / Supervision:

Sacombank conducted regular and continuous auditing and inspections with in-depth, fact-based management and risk forecast. Right from the start of 2006, Sacombank promulgated self-audit and self-correction protocols for enhancing the subsidiaries’ role of self-audit and self-correction in quality management. In addition, the Auditing Committee set up audit teams for ameliorating all operational aspects of the whole banking system.

12. Network expansion:

In 2006, 46 new transaction terminals (including 14 branches and 32 transaction offices) were established, bringing the total number of transaction terminals in 38 provinces or cities up to 156. Sacombank strictly implemented the State Bank’s decision on classification and transformation of transaction offices and level 2-branches.

With the network expansion rate in the 2001-2006 period, Sacombank moved one step closer to market control, increasing its market share and laying the groundwork for developing into a multi-functional and multi-ownership financial corporation in the future. Sacombank’s transaction network and spacious, impressive premises at its headquarters allowed Sacombank to bolster client confidence, and thus provided competitive advantages for Sacombank during the integration period.

In addition, Sacombank’s organization costs were already accounted for in the previous years, improvement of professional skills as well as the self-training in human resources, and premises network will be Sacombank’s asset value potential. All of this will serve as a basis for business value assessment for investors. The comparative advantage Sacombank has over others shows that Sacombank has been successfully implementing its business strategies.

13. operation of subsidiaries:

In 2006, Sacombank established three new subsidiaries, namely:

SacombankLeasing (Leasing Company)•

SacomRex (Remittance Express Company) and •

SBS (Securities Company)•


Annual Report 2006

It means that Sacombank now has a total of four subsidiaries which fulfils the development strategies set out for the 2001-2010 period.

Sacombank’s operating capital provided to subsidiaries reached 484 billion at year end, which is an increase of 472 billion compared to the beginning of the year and accounted for 23.2% of Sacombank’s total chartered capital.

As a whole, although the subsidiaries were established recently, they were able to stabilize their human resource structure gradually, improve internal control protocols and procedures and operate smoothly and reliably. It was a direct result of strong efforts made during the pre-establishment period.

14. technical Assistance projects:

Strategic shareholders IFC, ANZ and DC assisted Sacombank in various strategic aspects and appointed experienced experts to work at Sacombank on a full-time basis. For making use of this support, Sacombank set up a team responsible for technical assistance projects and acceptance of advice on banking administration and the restructuring of operating systems, on Corebanking T-24 and Data Center development, on the development of service distribution channels and new products and on risk management activities.

27

CoRpoRAte INfoRmAtIoN

BANkING lICeNCe

No. 0006/NH-GP dated 5 December 1991.

The Banking License was issued by the State Bank of Vietnam for a period of 50 years from the date of the licence.

BoARd of dIReCtoRS

Mr Dang Van Thanh Chairman

Mrs Huynh Que Ha First Vice Chairwoman

Mr Nguyen Chau Vice Chairman

Mr Dominic Scriven Vice Chairman (resigned on 21 April 2006)

Mr John Law Member

Mr Adil Ahmad Member

Mr Tran Van Ngoc Member

Mrs Nguyen Thi Mai Thanh Member

Mr Dang Hong Anh Member

BoARd of SupeRVISoRS

Mr Nguyen Tan Thanh Chief Supervisor

Mr Pham Duy Cuong Supervisor

Mr Doan Ba Tung Supervisor

Mr Le Van Tong Supervisor

BoARd of mANAGemeNt

Mrs Phan Bich Van General Director (appointed on 13 February 2006)

Mr Tran Trong Han Deputy General Director (resigned on 15 August 2006)

Mr Ho Xuan Nghiem Deputy General Director

Mrs Nguyen Huynh Thu Truc Deputy General Director (appointed on 9 August 2006 and resigned on 25 January 2007)

Mr Le Tan Loc General Director (resigned on 13 February 2006)

Mr Hoang Khanh Sinh Deputy General Director

Mr Luu Huynh Deputy General Director (appointed on 16 August 2006)

Mr Nguyen Quang Trung Deputy General Director (appointed on 16 June 2006)

Mrs Nguyen Thi Thanh Mai Deputy General Director

Mr Mac Huu Danh Deputy General Director (resigned on 26 September 2006)

Mr Tao Thanh Danh Deputy General Director (appointed on 10 August 2006)

ReGISteRed offICe

278 Nam Ky Khoi Nghia Street, District 3, Hochiminh City

AudItoRS

PricewaterhouseCoopers (Vietnam) Limited.


Annual Report 2006

AudItoRS’ RepoRt to ShAReholdeRS of SAIGoN thuoNG tIN CommeRCIAl

joINt–StoCk BANk

We have audited the accompanying consolidated financial statements of Saigon Thuong Tin Commercial Joint Stock Bank (“the Bank”) and its subsidiaries (together, “the Group”), which comprise the consolidated balance sheet as at 31 December 2006, the consolidated income statement and consolidated cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory notes.

AudItoR’S ReSpoNSIBIlIty

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Vietnamese and International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

opINIoN

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as of 31 December 2006, and its financial performance and cash flows for the year then ended in accordance with Vietnamese Accounting Standards and prevailing regulations applicable to banks and other credit institutions operating in SR Vietnam.

Ian S. lydall

AC No. N.0559/KTV Authorized signatory

PricewaterhouseCoopers (Vietnam) Limited Hochiminh City, SR Vietnam Audit report number HCM1290 15 March 2007

le Van hoa

AC No. 0248/KTV

fINANCIAl RepoRtS

29

CoNSolIdAted BAlANCe Sheet As at 31 december 2006

*Unit: VND million

NoteS 2006 2005

ASSetS

Cash and precious metals 4 2,827,452 1,370,108

Balances with the State Bank of Vietnam 5 993,590 408,685

Placements with overseas banks 6 145,718 162,307

Placements with local credit institutions 7 1,873,811 1,284,904

Trading securities 8 263,631 96,602

Loans and advances to customers 9 14,312,895 8,379,335

Available-for-sale securities 10 191,555 -

Investment in debt securities - held-to-maturity 11 1,873,469 1,514,919

Investment in joint venture 12 110,604 9,387

Investments in other entities 13 669,973 307,601

Tangible fixed assets 14 416,764 329,776

Intangible fixed assets 15 273,638 60,014

Finance lease assets 16 17,812 -

Construction in progress and purchase of fixed assets 17 250,591 231,732

Other assets 18 554,680 298,968

totAl ASSetS 24,776,183 14,454,338

lIABIlItIeS

Borrowings from the State Bank of Vietnam 19 107,000 170,370

Deposits and borrowings from local credit institutions 20 815,473 502,400

Deposits from customers 21 17,511,580 10,467,158

Certificates of deposit 22 2,529,299 956,546

Funds received from Government, international and other institutions 23 374,668 163,630

Other liabilities 24 532,523 290,546

Business income tax payable 35,294 16,008

totAl lIABIlItIeS 21,905,837 12,566,658

ShAReholdeRS’ eQuIty

Capital 25 2,248,726 1,250,948

Retained earnings 26 436,146 178,888

Reserves 26 185,474 457,844

totAl ShAReholdeRS’ eQuIty 2,870,346 1,887,680

totAl lIABIlItIeS ANd ShAReholdeRS’ eQuIty 24,776,183 14,454,338

CoNtINGeNCIeS ANd CommItmeNtS 40 3.279.434 2.652.022

dang Van thanh

Chairman 15 March 2007

phan Bich Van

General Director

le Nguyen thanh trung

Chief Accountant


Annual Report 2006

CoNSolIdAted INCome StAtemeNt for the year ended 31 december 2006

*Unit: VND million

NoteS 2006 2005

Interest and similar income 27 1,647,753 1,032,922

Interest expense and similar charges 28 (983,994) (597,913)

Net INteReSt INCome 663,759 435,009

Fee and commission income 29 143,162 100,467

Fee and commission expense 30 (31,692) (29,441)

Net fee ANd CommISSIoN INCome 111,470 71,026

Dividend income 29,658 15,445

Net gain from security trading 31 143,484 19,532

Net gain from dealing in foreign currencies 32 4,178 25,417

Other operating income 33 36,255 23,798

totAl opeRAtING INCome 988,804 590,227

Salaries and related expenses 34 (187,462) (119,701)

Depreciation and amortisation (34,617) (21,164)

Other operating expenses 35 (187,050) (119,442)

totAl opeRAtING expeNdItuRe (409,129) (260,307)

Provision for losses on loans and advances 9.7 (35,959) (18,751)

General provision for losses on contingencies and commitments 24 (6,943) (4,698)

Provision for diminution in value of investments (58) -

opeRAtING pRofIt 536,715 306,471

Share of profit of joint venture 74,613 6,336

pRofIt BefoRe tAx 611,328 312,807

Business income tax - current 37 (141,200) (74,383)

Business income tax – deferred 37 - -

Net pRofIt foR the yeAR 470,128 238,424

Earnings per share for profit attributable to the equity holders of the Bank during the year

38 VND/share VND/share

Basic 2,675 2,425

dang Van thanh


phan Bich Van

General Director


Chief Accountant

31

CoNSolIdAted StAtemeNt of CASh flowS for the year ended 31 december 2006

*Unit: VND million

2006 2005

CASh flowS fRom opeRAtING ACtIVItIeS

Net profit before tax 611,328 312,807

Adjustments to reconcile net profit for the year to net cash flows from operating activities:

Depreciation and amortization 34,617 21,164

Provision for losses on loans and advances 35,959 18,751

General provision for losses on contingencies and commitments 6,943 4,698

Provision for diminution in value of investments (820) (2,537)

Gain on disposal of fixed assets (6,659) (469)

Gain on trading of securities (143,484) (19,532)

Share of profit from joint venture (74,613) (6,336)

Gain on investments in other entities (29,658) (15,445)

CASh flow fRom opeRAtING ACtIVItIeS BefoRe ChANGeS IN opeRAtING ASSetS ANd lIABIlItIeS 433,613 313,101

Increase in placements with other credit institutions (288,172) (80,057)

Increase in loans and advances to customers (5,969,519) (2,439,543)

Increase in accrued interest income (117,137) (60,805)

Increase in other assets (138,575) (60,720)

(Decrease)/increase in borrowings from the State Bank of Vietnam (63,370) 170,370

Increase in placements and borrowings from local credit institutions 313,073 6,844

Increase in deposits from customers 7,044,422 2,675,274

Increase in certificates of deposit 1,572,753 198,189

Increase in funds received from Government, international and other institution 211,038 36,113

Increase in accrued interest expenses 110,467 47,510

Increase/(decrease) in other liabilities 128,352 (22,722)

Net CASh flowS fRom opeRAtING ACtIVItIeS BefoRe BuSINeSS INCome tAx 3,236,944 783,554

Business income tax paid (121,915) (59,275)

Additional tax paid for previous years per tax finalization - (2,172)

Payment from reserves (32,871) (16,390)

Premium on issuance of shares 343 301,835

Net CASh pRoVIded By opeRAtING ACtIVItIeS 3,082,501 1,007,552


Annual Report 2006

CoNSolIdAted StAtemeNt of CASh flowS (CoNt.) for the year ended 31 december 2006

*Unit: VND million

2006 2005

CASh flowS fRom INVeStING ACtIVItIeS

Purchases of fixed assets (428,201) (246,166)

Proceeds on disposal of fixed assets 81,057 950

Purchase of securities (755,852) (178,451)

Proceeds from disposal of securities 182,202 95,024

Investment in other entities (455,589) (231,198)

Investment in joint venture (42,840) -

Proceeds from investment in others entities 93,216 68,827

Gain on investment in other entities 29,658 18,539

Net CASh flowS fRom INVeStING ACtIVItIeS (1,296,349) (472,475)

CASh flowS fRom fINANCING ACtIVItIeS

Increase in share capital 624,973 510,000

Dividend paid (84,730) (104,802)

Net CASh flowS fRom fINANCING ACtIVItIeS 540,243 405,198

Net INCReASe IN CASh ANd CASh eQuIVAleNtS 2,326,395 940,275

CASh ANd CASh eQuIVAleNtS At the BeGINNING of the yeAR 3,144,176 2,203,901

CASh ANd CASh eQuIVAleNtS At the eNd of the yeAR 5,470,571 3,144,176

Cash and cash equivalents are made up of:

Cash and precious metals 2,827,452 1,370,108

Balances with the State Bank of Vietnam 993,590 408,685

Placements with overseas banks 145,718 160,479

Placements with local credit institutions 1,503,811 1,204,904

5,470,571 3,144,176

dang Van thanh


phan Bich Van

General Director


Chief Accountant

33

NoteS to the CoNSolIdAted fINANCIAl StAtemeNtS

1. General information:Saigon Thuong Tin Commercial Joint Stock Bank (“the Bank”) is a commercial joint stock bank that was licensed to operate under the Banking License No. 0006/NH-GP dated 5 December 1991 granted by the State Bank of Vietnam for a period of 50 years. The Bank commenced operations on 21 December 1991.

The Bank’s Head Office is located at 278 Nam Ky Khoi Nghia Street, District 3, Ho Chi Minh City. As at 31 December 2006, the Bank had one Head Office, two transaction offices, 47 branches and 99 transaction offices nationwide.

As at 31 December 2006, the Bank had four subsidiaries and one joint venture company as follows:

opeRAtING lICeNCe

NAtuRe of BuSINeSS

INteReSt

Assets Management Company 4104000053 Assets management 100%

Sacombank Leasing Company 04/Gp-NhNN Leasing activities 100%

Sacombank Securities Company 4104000197 Securities activities 100%

Saigon Thuong Tin Remittance Express Company 90/QÑ-NhNN Money remittance 100%

Viet Fund Management Company 01/GpÑt-uBCkNN 58/QÑ-uBCk

Managing investment fund and financial consulting

51%

2. Significant accounting policies2.1 BASIS of pRepARAtIoN of CoNSolIdAted fINANCIAl StAtemeNtS

The consolidated financial statements have been prepared in millions of Vietnamese Dong using the historical cost convention and in accordance with Vietnamese Accounting Standards and prevailing regulations applicable to banks and other credit institutions operating in SR Vietnam. Accordingly, the consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with jurisdictions other than SR Vietnam. The accounting principles and practices utilized in SR Vietnam may differ from those generally accepted in countries and jurisdictions other than SR Vietnam.

The Group has adopted the following Vietnamese Accounting Standards by 2006:

VAS 01: Framework•

VAS 03: Tangible fixed assets•

VAS 04: Intangible fixed assets•

VAS 10: The effects of changes in foreign exchange rates•

VAS 14: Revenue and other income•

VAS 21: Presentation of financial statements•

VAS 24: Cash flow statement•

VAS 26: Related party disclosures•

VAS 05: Investment property•

VAS 08: Financial reporting of interest in joint ventures•

VAS 17: Business income taxes•

VAS 22: Disclosure in the financial statements of banks and similar financial institutions•

VAS 23: Events after the balance sheet date•

VAS 25: Consolidated financial statements and accountings for investments in subsidiaries•

VAS 29: Changes in accounting policies, accounting estimates and errors•

In 2006, the Bank adopted the following Vietnamese Accounting Standards, which were issued by the Ministry of Finance:

VAS 11: Business combination•

VAS 18: Provisions, contingent assets and liabilities•

VAS 30: Earning per share•

The effect of adopting these new Standards is set out in the accounting policies below.

for the year ended 31 december 2006


Annual Report 2006

2.2 CoNSolIdAtIoN

(a) Subsidiaries

Subsidiaries are those companies over which the Group has the power to govern the financial and operating policies. Subsidiaries are consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date on which control ceases.

Inter-company balances, transactions and unrealized gains on transactions between those companies and the Group are eliminated. Unrealized losses also eliminated unless transaction provides evidence of an impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure the consistency with the policies adopted by the Bank.

(b) Associates and joint ventures

Associates are all entities over which the Group has significant influence but not control, generally accompanying a shareholding of between 20% and 50% of the voting rights.

A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic activity which is subject to joint control.

(c) Investments in other entities

Investments in other entities comprise shareholding of less than 20% in unlisted companies. Investments in other entities are stated at market value at acquisition date. Difference between market value and acquisition cost is recognized in balance sheet as a deferred expense or deferred income. These deferred expenses or incomes are then amortized to the income statement. Provision is made where there is a diminution in value. The accounting treatment of this provision is stated Circular 12/2006/TT-BTC issued by Ministry of Finance on 21 February 2006.

Since fair values for unlisted securities cannot be measured reliably, these investments are recognised at the cost of acquisition. Dividends are recognised in the consolidated income statement when the Group’s right to receive payment is established.

2.3 fISCAl yeAR

The Group’s fiscal year is from 1 January to 31 December.

2.4 foReIGN CuRReNCIeS

The consolidated financial statements are prepared in million Vietnamese Dong.

In accordance with Decision 522/2000/QD-NHNN2 dated 20 December 2000 issued by the State Bank of Vietnam and effective starting in 2000, transactions arising in foreign currencies are translated at rates ruling on the transaction dates. Monetary assets and liabilities denominated in foreign currencies at each month end are translated at the rates of exchange ruling at the month end date. Differences arising from monthly revaluation are recorded in the revaluation reserve in the balance sheet. Foreign exchange differences are transferred to the income statement at the balance sheet date.

2.5 INteReSt INCome ANd expeNSe

The Bank records interest income and expense on an accruals basis in accordance with Circular 12/2006/TT-BTC issued on 21 February 2006 by the Ministry of Finance and Decision 652/2001/QD-NHNN issued on 17 May 2001 by the State Bank of Vietnam.

2.6 feeS ANd CommISSIoNS INCome

Fees and commissions consist of fees received for settlement services, treasury services, guarantee services, securities brokerage services and other services. Fees and commissions arising from settlement services, treasury services, securities brokerage services and other services are recognized on receipt. Fees on guarantee services are recognized on an accruals basis.

35

2.7 INVeStmeNtS IN SeCuRItIeS

(a) Trading securities

Listed trading securities are initially stated at the cost of acquisition. Subsequently, they are measured at cost less provision. Provision is provided for where there is a diminution in value. The accounting treatment of this provision is stated in Circular 12/2006/TT-BTC issued by Ministry of Finance on 21 February 2006. Unlisted securities are stated at the cost of acquisition since the fair value of these securities cannot be measured reliably.

Gains or losses arising from the disposal of trading securities are recognised in the consolidated income statement and are reported on a net basis.

(b) Held-to-maturity debt securities

Held-to-maturity debt securities are stated at cost of acquisition.

Post-acquisition interest income of debt securities is recognized in the income statement on the accruals basis. Pre-acquisition interest income of debt securities is deducted against the cost of acquisition.

(c) Available-for-sale securities

Post-acquisition interest income of debt securities is recognized in the income statement on an accrual basis. Pre-acquisition interest income of debt securities is deducted against the cost of acquisition.

Available-for-sale equity securities are stated at cost less provision. Provision is provided for where there is a diminution in value. The accounting treatment of this provision is stated in Circular 12/2006/TT-BTC issued by Ministry of Finance on 21 February 2006.

2.8 loANS, AdVANCeS ANd fINANCe leASeS to CuStomeRS

Loans, advances and finance leases are stated at net of provisions. Short-term loans are those with a repayment date within one year from the date the loan was advanced, medium term loans are those with a final repayment date between one and five years from the date the loan was advanced and long-term loans are those with a repayment date of more than five years from the date the loan was advanced.

Loans, advances and finance leases to customers are granted in accordance with Decision 1627/QD-NHNN dated 31 December 2001, Decision 127/2005/QD-NHNN dated 3 February 2005 and Decision 783/2005/QD-NHNN dated 31 May 2005.

Loans, advances and finance leases to customers are classified in accordance with Decision 493/2005/QD-NHNN dated 22 April 2005.

Accordingly, loans, advances and finance leases are now classified into five groups as follows:

Group 1: Current

Undue debts which, according to the Bank’s evaluation, could be fully recovered, both principal and interest, when they fall due;•

Restructured debts which could be fully recovered, both principal and interest, within the rescheduled term of at •least one year for medium and long-term debts and three months for short-term debts and are evaluated by the Bank as having the capability to pay in full the principal and interest in due time within the rescheduled term.

Group 2: Special mentioned

Debts which are overdue for less than 90 days;•

Restructured debts other than those in Group 1 which are performing within the rescheduled term.•

Group 3: Sub-standard

Debts which are overdue from 90 days to 180 days;•

Restructured debts which are overdue for less than 90 days within the rescheduled term.•

Group 4: Doubtful

Debts which are overdue from 181 days to 360 days;•

Restructured debts which are overdue from 90 days to 180 days within the rescheduled term.•


Annual Report 2006

Group 5: Loss

Debts which are overdue for more than 360 days;•

Restructured debts which are overdue for more than 180 days within the rescheduled term.•

Frozen debts which are awaiting resolution from the Government.•

Where a customer owes more than one debt to the Bank, and has any of his debts transferred to the group of debts with higher risk, the Bank is obliged to classify the remaining debts of such customer into groups of debts with higher risk corresponding with their level of risk.

Where debts (including undue debts and debts whose repayment period in the term is rearranged to fall within the rescheduled term of debts) in respect of which the Bank has full bases to evaluate that the capability of repayment by the customer is weakened, the Bank shall actively decide on classification of those debts into groups of debts with higher risk corresponding with their level of risk.

Provision for losses on loans, advances and finance leases

In accordance with Decision 493/2005/QD-NHNN dated 22 April 2005 issued by the State Bank of Vietnam, recognition is given to specific and general provisions arising from credit activities. As set out in the Decision, the determination of specific provision for credit risk is calculated using set rates applied to each loan group as follows:

pRoVISIoNAl RAte

Group 1 - Current 0%

Group 2 - Special mentioned 5%

Group 3 - Sub-standard 20%

Group 4 - Doubtful 50%

Group 5 - Loss 100%

The specific provision is calculated based on net credit exposure of each borrower which is equal to loan balance less value of collateral assets. The value of these assets is market value discounted at a predetermined percentage for each kind of collateral assets as regulated in the Decision.

In accordance with the Decision, a general provision is also required and should be equal to at least 0.75% of the total balance of loans, advances and finance leases to customers excluding the total balance of loans, advances and finance leases to customers which are classified as loss. This level of the general provision is required to be achieved within 5 years from the effective date of the Decision.

2.9 pRoVISIoN foR loSSeS oN CommItmeNtS ANd CoNtINGeNCIeS

In accordance with Decision 493/2005/QD-NHNN dated 22 April 2005 issued by the State Bank of Vietnam, a general provision is required and should be equal to at least 0.75% of total balance of guarantees, loan commitments and settlement acceptances. This level of the general provision is required to be achieved within 5 years from the effective date of the Decision.

2.10 tANGIBle fIxed ASSetS

Fixed assets are stated at historical cost less accumulated depreciation.

Depreciation is calculated on a straight-line basis to write off the cost of fixed assets over their estimated useful lives as follows:

2006 2005

Buildings 2.22% 2.22%

Office equipments 12.50% - 20.00% 12.50% - 20.00%

Motor vehicles 10.00% 10.00%

Other assets 10.00% 100%

Gains and losses on disposals are determined by comparing net disposal proceeds with the carrying amount and are recognized as income or expense in the income statement.

37

2.11 INtANGIBle fIxed ASSetS

Accounting software

Accounting software is amortized over a five year period starting from the date it is brought into use.

2.12 leASed ASSetS

Leases of property, plant and equipment on which the Group has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the inception of the lease at the lower of the fair value of leased property or the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges so as to achieve a constant rate on the finance balance outstanding. The corresponding rental obligations, net of finance charge, are included in borrowings from local credit institutions. The interest element of the finance cost is charged to the income statement over the lease period. The property, plant and equipment acquired under finance leases are depreciated over the shorter of the useful life of the asset or the lease term.

Leases where a significant portion of the risks and rewards of ownership are retained by the leaser are classified as operating leases. Payments made under operating leases are charged to the income statement on a straight-line basis over the period of the lease.

2.13 Gold

Gold is revalued at each month end and the differences arising from monthly revaluation are recorded in the revaluation reserve in the balance sheet. The differences are transferred to the income statement at the balance sheet date.

2.14 CASh ANd CASh eQuIVAleNtS

For the purpose of the consolidated cash flow statement, cash and cash equivalents comprise cash and precious metals, balance with the State Bank of Vietnam, current accounts and term deposits at banks with less than 90 days maturity from the balance sheet date.

2.15 deRIVAtIVe fINANCIAl INStRumeNtS

Derivatives are recorded in a balance sheet account at the contract value on the date which a derivative contract is entered into and revalued subsequently at their fair values. Gains or losses from realization of derivatives are recognized in the income statement. Unrealized gains or losses are recognized in the balance sheet as the revaluation reserve and transferred to the income statement at the balance sheet date.

2.16 tAxAtIoN

Business income tax expense is recognized in the income statement based on current income tax and deferred income tax.

Current income tax is the amount of business income tax payable or recoverable in respect of the current year taxable profit and the current tax rates.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of occurrence affects neither accounting nor taxable profit nor loss. Deferred income tax is determined at the tax rates that are expected to apply to the financial year when the asset is realised or the liability is settled, based on tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.


Annual Report 2006

2.17 RelAted pARtIeS

Enterprises and individuals that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the Group, including holding companies, subsidiaries and fellow subsidiaries are related parties of the Group. Associates and individuals owning, directly or indirectly, an interest in the voting power of the Group that gives them significant influence over the Group, key management personnel, including directors and officers of the Group and close members of the family of these individuals and companies associated with these individuals also constitute related parties.

In considering each possible related party relationship, attention is directed to the substance of the relationship, and not merely the legal form.

2.18 pRoVISIoN foR SeVeRANCe AllowANCeS

Provision for severance allowance is made in accordance with Circular 07/2004/TT-BTC dated 9 February 2004 and Circular 82/2003/TT-BTC dated 14 August 2003 issued by the Ministry of Finance. Accordingly, a provision for severance allowances equal to 2% of total basic salary of the year was made up to the balance sheet date.

2.19 pRoVISIoNS

Provisions are recognized when: the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognized for future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligations. The increase in the provision due to passage of time is recognised as interest expense.

2.20 dIVIdeNd dIStRIButIoN

Dividend distribution to the Group’s shareholders is recognised as a liability in the Group’s consolidated financial statements in the period in which the dividends are approved by the Group’s shareholders.

39

Uni

t: V

ND

mill

ion

3.1

Cu

RReN

Cy

31 d

eCem

BeR 2

006

VN

dG

old

uSd

eu

Rjp

yA

ud

CA

do

th

eRS

to

tA

l

ASS

etS

Cas

h an

d pr

ecio

us m

etal

s50

0,84

31,

875,

117

281,

655

72,5

313,

424

58,0

4714

,651

21,1

842,

827,

452

Bal

ance

s w

ith th

e S

tate

Ban

k of

Vie

tnam

834,

241

-15

9,34

9-

--

--

993,

590

Pla

cem

ents

with

ove

rsea

s ba

nks

--

105,

702

9,80

21,

818

6,70

69,

483

12,2

0714

5,71

8

Pla

cem

ents

with

loca

l cre

dit i

nstit

utio

ns1,

566,

685

96,7

7516

6,12

015

,157

134

10,1

3112

,370

6,43

91,

873,

811

Trad

ing

secu

ritie

s26

3,63

1-

--

--

--

263,

631

Loan

s an

d ad

vanc

es to

cus

tom

ers

11,2

48,3

5855

8,76

42,

479,

181

26,5

92-

--

-14

,312

,895

Ava

ilabl

e-fo

r-sa

le s

ecur

ities

191,

555

--

--

--

-19

1,55

5

Inve

stm

ent d

ebt s

ecur

ities

- he

ld-to

-mat

urity

1,86

5,33

8-

8,13

1-

--

--

1,87

3,46

9

Inve

stm

ent i

n jo

int v

entu

re11

0,60

4-

--

--

--

110,

604

Inve

stm

ents

in o

ther

ent

ities

66

9,97

3-

--

--

--

669,

973

Tang

ible

fixe

d as

sets

416,

764

--

--

--

-41

6,76

4

Inta

ngib

le fi

xed

asse

ts27

3,63

8-

--

--

--

273,

638

Fina

nce

leas

e as

set

17,8

12-

--

--

--

17,8

12

Con

stru

ctio

n in

pro

gres

s an

d pu

rcha

se o

f fix

ed a

sset

s25

0,59

1-

--

--

--

250,

591

Oth

er a

sset

s33

8,72

6-

165,

950

4-

--

-55

4,68

0

to

tA

l A

SSetS

18

,598

,759

2,53

0,65

63,

366,

088

124,

086

5,37

674

,884

36,5

0439

,830

24,7

76,1

83

lIA

BIlI

tIe

S

Bor

row

ings

from

the

Sta

te B

ank

of V

ietn

am10

7,00

0-

--

--

--

107,

000

Dep

osits

and

bor

row

ings

from

lo

cal c

redi

t ins

titut

ions

47

7,43

3-

337,

740

225

--

75-

815,

473

Dep

osits

from

cus

tom

ers

14,6

10,1

101,

448

2,79

2, 1

3286

,804

3,38

24,

721

10,7

932,

190

17,5

11 ,5

80

Cer

tific

ates

of d

epos

its1,

543

2,52

7,75

6-

--

--

-2,

529,

299

Fund

s re

ceiv

ed fr

om G

over

nmen

t, in

tern

atio

nal a

nd o

ther

inst

itutio

ns37

4,66

8-

--

--

--

374,

668

Oth

er li

abili

ties

353,

784

1,00

011

,676

34,9

611,

844

68,0

7124

,898

36,2

9053

2,52

3

Bus

ines

s in

com

e ta

x pa

yabl

e35

,294

--

--

--

-35

,294

to

tA

l lI

ABI

lItIe

S15

,959

,831

2,53

0,20

43,

141,

548

121,

990

5,22

672

,792

35,7

6638

,481

21,9

05,8

37

Net o

N-B

AlA

NCe S

heet p

oSI

tIo

N2,

638,

928

452

224,

540

2,09

615

12,

093

738

1,35

02,

870,

346

3.

Con

cent

ratio

ns o

f as

sets a

nd li

abili

ties in

ter

ms of

cur

renc

y an

d m

atur

ity


Annual Report 2006

3. C

once

ntra

tions

of

asse

ts a

nd li

abili

ties in

ter

ms of

cur

renc

y an

d m

atur

ity.

3.2

mA

tu

RIt

y

Uni

t: V

ND

mill

ion

31 d

eCem

BeR 2

006

up

to 1

moNth

1-3

mo

Nth

S 3-

12 m

oN

th

S 1-5

yeA

Ro

VeR 5

yeA

RS

to

tA

l

ASS

etS

Cas

h an

d pr

ecio

us m

etal

s2,

827,

452

--

--

2,82

7,45

2

Bal

ance

s w

ith th

e S

tate

Ban

k of

Vie

tnam

993,

590

--

--

993,

590

Pla

cem

ents

with

ove

rsea

s ba

nks

145,

718

--

--

145,

718

Pla

cem

ents

with

loca

l cre

dit i

nstit

utio

ns1,

203,

811

300,

000

370,

000

--

1,87

3,81

1

Trad

ing

secu

ritie

s26

3,63

1-

--

-26

3,63

1

Loan

s an

d ad

vanc

es to

cus

tom

ers

985,

376

2,51

4,49

86,

213,

470

3,00

3,30

81,

596,

243

14,3

12,8

95

Ava

ilabl

e-fo

r-sa

le s

ecur

ities

191,

555

--

--

191,

555

Inve

stm

ent d

ebt s

ecur

ities

hel

d-to

-mat

urity

--

-1,

873,

469

-1,

873,

469

Inve

stm

ents

in jo

int v

entu

re-

--

-11

0,60

411

0,60

4

Inve

stm

ent i

n ot

her e

ntiti

es-

--

-66

9,97

366

9,97

3

Tang

ible

fixe

d as

sets

--

-15

1,05

626

5,70

841

6,76

4

Inta

ngib

le fi

xed

asse

ts-

--

60,4

2421

3,21

427

3,63

8

Fina

nce

leas

e as

sets

--

-14

,912

2,90

017

,812

Con

stru

ctio

n in

pro

gres

s an

d pu

rcha

se o

f fix

ed a

sset

s-

--

-25

0,59

125

0,59

1

Oth

er a

sset

s 55

4,68

0-

--

-55

4,68

0

to

tA

l A

SSetS

7,

165,

813

2,81

4,49

86,

583,

470

5,10

3,16

93,

109,

233

24,7

76,1

83

lIA

BIlI

tIe

SB

orro

win

gs fr

om th

e S

tate

Ban

k of

Vie

tnam

107,

000

--

--

107,

000

Dep

osits

and

bor

row

ings

from

loca

l cre

dit i

nstit

utio

ns

743,

651

55,0

001,

200

15,6

22-

815,

473

Dep

osits

from

cus

tom

ers

7,56

8,06

45,

600,

077

3,83

9,63

650

2,05

31,

750

17,5

11,5

80

Cer

tific

ates

of d

epos

its62

0,99

51,

388,

005

471,

000

49,2

98-

2,52

9,29

9

Fund

s re

ceiv

ed fr

om G

over

nmen

t, in

tern

atio

nal a

nd o

ther

inst

itutio

ns-

104

94,0

6927

8,89

41,

600

374,

668

Oth

er li

abili

ties

532,

523

--

--

532,

524

Bus

ines

s in

com

e ta

x pa

yabl

e35

,294

--

--

35,2

94

to

tA

l lI

ABI

lItIe

S9,

607,

528

7,04

3,18

64,

405,

906

845,

867

3,35

021

,905

,837

Net l

IQu

IdIt

y G

Ap

(2,4

41,7

15)

(4,2

28,6

88)

2,17

7,56

44,

257,

302

3,10

5,88

32,

870,

346

41

4. Cash and precious metals *Unit: VND million

CASh ANd pReCIouS metAlS 2006 2005

Cash 951,646 825,764

Gold 1,875,117 543,333

Valuable papers 689 1,011

totAl 2,827,452 1,370,108

5. Balances with the state bank of vietnam An obligatory reserve in Vietnamese dong is required to be deposited with the SBV. The balance is adjusted once per month and is calculated as 5% of the average Vietnamese dong customer deposits with terms within one year and 2% of the average Vietnamese dong customer deposit with terms from above one year to two years, excluding term deposits with terms greater than two years, in the preceding 30 days. For foreign currency deposits excluding term deposits with terms of more than two years, an obligatory reserve in United State dollars is also required to be deposited, calculated by the same method at the rate of 8% for term deposits with terms within one year and 2% for term deposits with terms from above one year to two years.

*Unit: VND million

BAlANCeS wIth the StAte BANk of VIetNAm 2006 2005

Obligatory reserves 767,464 406,766

Demand deposits 226,126 1,919

totAl 993,590 408,685

6. placements with overseas banks*Unit: VND million

plACemeNtS wIth oVeRSeAS BANkS 2006 2005

Settlements with overseas banks 145,718 160,478

Placements with overseas banks - 1,829

totAl 145,718 162,307

7. placements with local credit institutions *Unit: VND million

plACemeNtS wIth loCAl CRedIt INStItutIoNS 2006 2005

Settlements with local credit institutions 188,907 125,440

Placements with local credit institutions 1,684,904 1,159,464

totAl 1,873,811 1,284,904

8. trading securities*Unit: VND million

tRAdING SeCuRItIeS 2006 2005

Equity securities 263,631 97,481

Less provision for diminution in value of investments - (879)

totAl 263,631 96,602


Annual Report 2006

9. loans and advances to customers Loans and advances to customers were analyzed as follows:

9.1 ANAlySIS By type

*Unit: VND million

ANAlySIS By type 2006 2005

loAN poRtfolIo AS At 31 deCemBeR CompRISeS:

Short-term loans 9,363,598 5,081,504

Medium and long-term loans 4,822,236 3,217,042

Finance leases 15,513 -

Loans funded by Government, international and other institutions 190,249 122,861

Loans in debt recovery 2,717 3,831

totAl 14,394,313 8,425,238

Specific provision as at 31 December (Note 9.7a) (21,888) (19,750)

General provision as at 31 December (Note 9.7b) (59,530) (26,153)

loAN poRtfolIo AS At 31 deCemBeR, Net 14,312,895 8,379,335

9.2 ANAlySIS By CuRReNCy*Unit: VND million

ANAlySIS By CuRReNCy 2006 2005

Loans and advances denominated in VND 11,329,776 6,226,936

Loans and advances denominated in foreign currencies 3,064,537 2,198,302

totAl 14,394,313 8,425,238

9.3 ANAlySIS By INduStRy*Unit: VND million

ANAlySIS By INduStRy 2006 2005

Trading 4,770,867 2,927,150

Agriculture and forestry 772,862 740,926

Manufacturing and processing 4,356,553 2,141,006

Construction 905,835 757,441

Individual and community services 712,990 355,650

Warehousing, transportation and communication 325,692 326,003

Training and education 613,891 390,228

Estate agents and consultants 523,872 192,846

Hotels and restaurants 383,130 220,885

Others 1,028,620 373,103

totAl 14,394,313 8,425,238

9.4 ANAlySIS By loAN GRoup*Unit: VND million

ANAlySIS By loAN GRoup 2006 2005

Current 14,256,735 8,351,138

Special mentioned 33,474 27,599

Substandard 44,746 5,490

Doubtful 27,381 9,437

Loss 31,977 31,574

totAl 14,394,313 8,425,238

43

9.5 ANAlySIS By GeoGRAphy*Unit: VND million

ANAlySIS By GeoGRAphy 2006 2005

Ho Chi Minh City 8,322,928 5,309,254

Mekong Delta 1,507,007 618,412

Central 1,650,848 720,981

Northern 1,104,995 794,337

South East 1,808,536 982,254

totAl 14,394,313 8,425,238

9.6 ANAlySIS By type of BuSINeSS eNtIty*Unit: VND million

ANAlySIS By type of BuSINeSS eNtIty 2006 2005

State-owned enterprises 81,270 30,328

Joint-stock companies 1,262,893 994,304

Limited companies 5,202,214 3,297,030

Private enterprises 971,807 587,014

Co-operatives 80,152 76,062

Joint ventures 40,569 40,023

100% foreign-owned enterprises 10,085 24,744

Individuals 6,736,947 3,365,518

Others 8,375 10,215

totAl 14,394,313 8,425,238

9.7 pRoVISIoN foR loSSeS oN loANS ANd AdVANCeS to CuStomeRS

(a) Specific provision*Unit: VND million

SpeCIfIC pRoVISIoN 2006 2005

As at 1 January 19,750 27,968

Charge for the year 2,582 15,827

Transfer to general provision (note 9.7b) (*) - (23,328)

Utilization during the year (**) (444) (717)

AS At 31 deCemBeR 21,888 19,750

The specific provision for losses on loans and advances to customers has been calculated based on the net credit exposure of each customer which is equal to the loans and advances balance less the value of collateral, using the set rate applied to each loan group in accordance with Decision 493/2005/QD-NHNN issued by the State Bank of Vietnam.

(*) As a result of adoption of Decision 493/2005/QD-NHNN, the specific provision made for the year 2005 was significantly lower than

that of the year 2004. During the year 2005, therefore, the Bank made a transfer of VND23,328 million from the specific provision to

the general provision in order to ensure that the general provision was in compliance with Decision 493/2005/QD-NHNN.

(**) Loans are written off at the discretion of the Bank’s Risk Management Committee when they consider that all reasonable efforts

for recovery of doubtful loans, including legal actions, have been exhausted. Loans are written off in accordance with the instructions

of the Decision 493/2005/QD-NHNN.


Annual Report 2006

9.7 pRoVISIoN foR loSSeS oN loANS ANd AdVANCeS to CuStomeRS

(b) General provision

*Unit: VND million

2006 2005

As at 1 January 26,153 -

Charge for the year 33,377 2,825

Transfer from specific provision (note 9.7a) - 23,328

AS At 31 deCemBeR 59,530 26,153

General provision was made in accordance with Decision 493/2005/QD-NHNN. In this year, the Group provided 20% of the forecast general provision level which is required to be achieved by the fifth year from the effective date of the Decision. 20% of the forecast level at that time was made in 2005.

10. Available-for-sale securities*Unit: VND million

AVAIlABle-foR-SAle SeCuRItIeS 2006 2005

Equity securities 191,555 -

Less provision for diminution in value of investments - -

totAl 191,555 -

Included in available-for-sale securities is VND38,096 million of VF1 fund certificates which are managed by VietFund Management Company which is the joint venture between Sacombank and Dragon Capital, a shareholder of the Bank.

11. Investment in debt securities – held–to–maturity

*Unit: VND million

INVeStmeNt IN deBt SeCuRItIeS – held–to–mAtuRIty VAlue At CoSt 2006

VAlue At CoSt 2005

GoVeRNmeNt BoNdS (*)

Due within one year - 400

Due between one year and five years 1,435,116 1,229,393

1,435,116 1,229,793CeRtIfICAteS of depoSIt ISSued By otheR BANkS

Due within one year - 235,000

Due between one year and five years 333,568 -

333,568 235,000BoNdS ISSued By otheR eCoNomIC eNtItIeS

Due between one year and five years 104,785 50,126

104,785 50,126

totAl 1,873,469 1,514,919

(*) Included in Government bonds is VND114,440 million of education bonds which are currently pledged at the State Bank of Vietnam

(refer to note 19).

45

12. Investment in joint venture

INVeStmeNt IN joINt VeNtuRe 2006 2005

INteReSt %

VAlue VNd mIllIoN)

INteReSt %

VAlue VNd mIllIoN)

VietFund Management Company 51 % 110,604 51 % 9,387

*Unit: VND million

moVemeNt of INVeStmeNt IN joINt VeNtuRe 2006

Beginning of year 9,387

Additions 45,390

Share of net profit 74,613

Dividend received (18,013)

Payments from reserves (773)

eNd of yeAR 110,604

13. Investments in other entities*Unit: VND million

NAme NAtuRe of BuSINeSS

detAIlS 31 deCemBeR 2006

31 deCemBeR 2005

INVeStmeNt IN CRedIt INStItutIoNS VAlue At CoSt

VAlue At CoSt

Gia Dinh Commercial Joint-Stock Bank Banking Capital contribution - 1,000

Housing Development Commercial Joint-Stock Bank Banking

Capital contribution 1,908 89

Nam Do Commercial Joint Stock Bank Banking Capital contribution 1,634 1,634

Habubank Commercial Joint Stock Bank Banking Capital contribution 39,156 16,500

Military Commercial Joint Stock Bank Banking Capital contribution 11,713 5,946

totAl INVeStmeNt IN CRedIt INStItutIoNS 54,411 25,169

INVeStmeNt IN NoN-CRedIt INStItutIoNS 615,562 282,432

totAl INVeStmeNtS IN otheR eNtItIeS 669,973 307,601

Included in investments in non credit institutions is VND50,750 million of VF2 fund certificates which are managed by VietFund Management Company which is the joint venture between Sacombank and Dragon Capital, a shareholder of the Bank.


Annual Report 2006

14. tangible fixed assets*Unit: VND million

tANGIBle fIxed ASSetS BuIldINGS offICe

eQuIpmeNtSmotoR

VehICleSotheRS totAl

hIStoRICAl CoSt

As at 1 January 2006 247,582 96,317 38,756 3,897 386,552

Additions 64,190 63,862 12,998 6,134 147,184

Disposals (32,063) (743) (1,764) (12) (34,582)

As at 31 December 2006 279,709 159,436 49,990 10,019 499,154

ACCumulAted depReCIAtIoN

As at 1 January 2006 16,051 29,179 10,749 797 56,776

Charge for the year 5,130 18,058 4,334 644 28,166

Disposals (657) (677) (1,211) (7) (2,552)

As at 31 December 2006 20,524 46,560 13,872 1,434 82,390

Net Book VAlue

As at 1 January 2006 231,531 67,138 28,007 3,100 329,776

AS At 31 deCemBeR 2006 259,185 112,876 36,118 8,585 416,764

15. Intangible fixed assets*Unit: VND million

INtANGIBle fIxed ASSetS SoftwARe lANd uSe RIGhtS

totAl

hIStoRICAl CoSt

As at 1 January 2006 10,673 53,288 63,961

Additions 60,192 201,966 262,158

Disposals - (42,368) (42,368)

As at 31 December 2006 70,865 212,886 283,751

ACCumulAted AmoRtIzAtIoNS

As at 1 January 2006 3,923 24 3,947

Charge for the year 6,029 137 6,166

Disposals - - -

As at 31 December 2006 9,952 161 10,113

Net Book VAlue

As at 1 January 2006 6,750 53,264 60,014

AS At 31 deCemBeR 2006 60,913 212,725 273,638

47

16. finance lease assets*Unit: VND’000

fINANCe leASe ASSetS motoR VehICleS

hIStoRICAl CoSt

At 1 January 2006 -

New leases 18,096

At 31 December 2006 18,096ACCumulAted depReCIAtIoN

At 1 January 2006 -

Charge for the year 284

At 31 December 2006 284Net Book VAlue

At 1 January 2006 -

At 31 deCemBeR 2006 17,812

17. Construction in progress and purchase of fixed assets*Unit: VND million

CoNStRuCtIoN IN pRoGReSS ANd puRChASe of fIxed ASSetS 2006 2005

As at 1 January 231,732 88,307

Additions 382,658 238,217

Transfer to fixed assets (354,836) (82,832)

Other transfers (8,963) (11,960)

AS At 31 deCemBeR 250,591 231,732

18. other assets *Unit: VND million

otheR ASSetS ARe mAde up of the followING 2006 2005

Interest receivable 267,650 150,513

Receivables from customers 152,480 43,540

Prepayments 87,833 57,440

Advances to employees and branches 7,390 4,876

Advance for additional capital contribution in joint venture - 2,550

Other receivables 3,274 7,000

Other assets (*) 36,053 33,049

totAl 554,680 298,968

(*) Included in other assets is VND 34,473 million of collateral assets which will be used to compensate for bad debts. Ownership of these assets has

been transferred to the Bank.


Annual Report 2006

19. Borrowings from the state bank of vietnam*Unit: VND million

BoRRowINGS fRom the StAte BANk of VIetNAm 2006 2005

Borrowings by means of discounting or rediscounting short-term valuable papers

107,000 170,370

totAl 107,000 170,370

20. deposits and borrowings from local credit institutions *Unit: VND million

depoSItS ANd BoRRowINGS fRom loCAl CRedIt INStItutIoNS 2006 2005

Demand deposits 78,556 33,652

Short-term deposits and borrowings 735,717 468,748

Medium and long-term deposits and borrowings 1,200 -

totAl 815,473 502,400

21. deposits from customers*Unit: VND million

depoSItS fRom CuStomeRS 2006 2005

Demand deposits 2,834,183 1,801,853

Short-term deposits 11,258,971 6,556,632

Medium and long-term deposits 3,036,334 1,868,891

Margin deposits 382,092 239,782

totAl 17,511,580 10,467,158

31 deCemBeR 2006 deNomINAted IN VNd

deNomINAted IN foReIGN CuRReNCy

totAl

Demand deposits 2,559,503 274,680 2,834,183

Short-term deposits 9,678,397 1,580,574 11,258,971

Medium and long-term deposits 2,357,324 679,010 3,036,334

Margin deposits 34,174 347,918 382,092

totAl 14,629,398 2,882,182 17,511,580

31 deCemBeR 2005

Demand deposits 1,503,052 298,801 1,801,853

Short-term deposits 5,682,762 873,870 6,556,632

Medium and long-term deposits 1,308,574 560,317 1,868,891

Margin deposits 22,823 216,959 239,782

totAl 8,517,211 1,949,947 10,467,158

49

22. Certificates of deposit*Unit: VND million

CeRtIfICAteS of depoSIt deNomINAted IN VNd


totAl

31 deCemBeR 2006

Short term certificates of deposits 3 2,107,610 2,107,613

Medium term certificates of deposits 1,540 420,146 421,686

totAl 1,543 2,527,756 2,529,299

31 deCemBeR 2005

Short term certificates of deposits 3,562 750,843 754,405

Medium term certificates of deposits 3,655 198,486 202,141

totAl 7,217 949,329 956,546

23. funds received from government, international and other institutions*Unit: VND million

fuNdS ReCeIVed fRom GoVeRNmeNt, INteRNAtIoNAl ANd otheR INStItutIoNS

2006 2005

Funds received from RDF 133,905 95,093

First fund received from FMO 38,241 53,537

Second fund received FMO 152,522 -

Funds received from SMEDF 50,000 15,000

totAl 374,668 163,630

Funds received from the Rural Development Fund (“RDF”) are financed by the World Bank for a term from one to five years at an interest rate of 0.68% per month. These funds are lent to borrowers in accordance with the Decision No. 25/QD-NH21 dated 31 January 1997 issued by the Governor of the State Bank of Vietnam. The funds will mature in 2010.

The first fund received from Financierings-Maatschappij Voor Ontwikkelingslanden (“FMO”), a bank in the Netherlands, is used to finance lending activities to Vietnamese enterprises which meet certain requirements given by FMO. Interest is paid semi-annually at the average rate of Vietcombank, Bank for Investment and Development of Vietnam, Asia Commercial Bank and HSBC plus 1.5% p.a. This fund will mature in 2009.

The second fund received from Financierings-Maatschappij Voor Ontwikkelingslanden (“FMO”), a bank in the Netherlands, is used for the sole purpose of making housing loans to retail non-business clients which meet certain requirements given by FMO. Interest is paid semi-annually at the average rate of 6 month deposit of Vietcombank, Bank for Investment and Development of Vietnam, Asia Commercial Bank and HSBC. This fund will mature in 2016.

Funds received from the Small and Medium Enterprise Development Fund (“SMEDF”) are financed by the European Commission. The funds are used to finance Vietnamese small and medium sized enterprises who meet certain conditions required by the project. The interest rate is quoted as either a fixed rate or floating rate. Fixed rate is equal to the rate paid by the Government on its most recently issued five year bonds less a discount rate. Variable rate is equal to the reference interest rate less a discount rate and is determined every six months thereafter. Reference interest rate is the average 6 month VND deposit rate of Vietcombank, Incombank, Bank for Investment and Development of Vietnam and Bank for Agriculture and Rural Development. Discount rate is applied to each type of interest rates and is fixed by the lender on an annual basis. Discount rate for the first year of a credit facility is 0.5% for fixed rate or 1% for variable rate. These funds will mature in 2010.


Annual Report 2006

24. other liabilities*Unit: VND million

otheR lIABIlItIeS 2006 2005

Interest payable 270,745 160,278

Remittance in transit payable 496 21,848

Other taxes payable 3,911 3,504

Dividends payable 5,656 4,956

General provision for losses on contingencies and commitments (*) 11,641 4,698

Other payables (**) 240,074 95,262

totAl 532,523 290,546

(*) The general provision for losses on contingencies and commitments was made in accordance with Decision 493/2005/QD-NHNN dated 22 April 2005 issued by the State Bank of Vietnam. In this year, the Bank provided 20% of the forecast general provision level which is required to be achieved by the fifth year from the effective date of the Decision. 20% of the forecast level at that time was made in 2005.

(**) Included in other payables is VND75,649 million of cash which was held in custody for the customers of Sacombank Securities Company. This cash balance will be used for trust investment on behalf of its customers.

25. CApItAl(A) ShARe CApItAl

*Unit: VND million

ShARe CApItAl NumBeR of ShAReS (10,000)

oRdINARy ShAReS

ShARe pRemIum (*)

totAl ShARe CApItAl

At 1 January 2005 74,000,000 740,000 - 740,000

Nominal value of shares issued 51,000,000 510,000 - 510,000

At 31 December 2005 125,000,000 1,250,000 - 1,250,000

Nominal value of shares issued 64,947,299 649,473 - 649,473

Nominal value of bonus shares issued (refer to note 26) 18,993,982 189,940 - 189,940

Transfer share premium from reserve for supplementary chartered capital to capital (refer to note 26) - - 158,365 158,365

At 31 deCemBeR 2006 208,941,281 2,089,413 158,365 2,247,778

As at 31 December 2006, the Bank did not hold any treasury shares.

(*) Before September 2006, share premium arising from new share issuance had been recorded in the reserve for supplementary legal capital and would

have been transferred to legal capital upon approval from the State Bank of Vietnam. In accordance with Decision 29/2006/QD-NHNN dated 10 July 2006,

share premium should be recorded separately in share premium account and disclosed as capital since September 2006. Accordingly, an amount of

VND158,365 million has been transferred from reserve for supplementary legal capital to share premium account in this year (refer to note 26).

Under Official Letter No. 401/NHNN-HCMC02 dated 31 March 2006 issued by the State Bank of Vietnam - Ho Chi Minh City Branch, the chartered capital of the Bank was approved to increase to VND 1,899,473 million.

Under Official Letter No.1457/NHNN-HCMC02 dated 26 October 2006 issued by the State Bank of Vietnam – Ho Chi Minh City Branch, the chartered capital of the Bank was approved to increase to VND 2,089,413 million.

51

(B) otheR CApItAl*Unit: VND million

otheR CApItAl 2006 2005

Capital for finance of fixed assets and capital construction 795 795

Others 153 153

totAl 948 948

26. Reserves and retained earnings*Unit: VND million

opeNING

BAlANCe

pRofIt

foR the

yeAR

AlloCAtIoN

to

ReSeRVeS

dIVIdeNd

pAId

tRANSfeR

to CApItAl

ANd ShARe

pRemIum

otheR

moVemeNtS

ReSeRVeS

CloSING

BAlANCe

Retained earnings 178,888 470,128 (100,360) (84,030) (24,500) (3,980) 436,146

Reserve for supplementary legal capital

398,999 - 21,005 - (348,306) 343 72,041

Development fund 10,275 - 10,020 - - (3,000) 17,295

Financial reserve 51,530 - 39,908 - - - 91,438

Welfare and bonus 1,164 - 29,427 - - (25,890) 4,700

Unrealised losses arising from revaluation of derivatives (4,124) - - - - 4,124 -

totAl 636,732 470,128 - (84,030) (372,806) (28,404) 621,620

In accordance with Decree No. 146/2005/ND-CP dated 23 November 2005 issued by the Government, the Bank is required to establish the following reserves:

Reserve for supplementary legal capital: 5% of the net profit after business income tax each year is allocated until the •reserve balance reaches 100% of the initial capital.

Financial fund: 10% of the net profit after the allocation to the above reserve is allocated until the reserve balance •reaches 25% of the initial capital.

dividend

Dividends for 2006 to be declared are not accounted for until they have been ratified at the Annual General Meeting. The Board of Management has planned to propose dividend distribution at a rate of 12% in the form of shares for the year ended 31 December 2006. The financial statements for the year ended 31 December 2006 do not reflect this plan, which, if subsequently ratified, will be accounted for in the shareholders’ equity as an appropriation of retained earnings in the year ending 31 December 2007.

27. Interest income and similar income*Unit: VND million

INteReSt INCome ANd SImIlAR INCome 2006 2005

On loans and advances 1,368,222 850,865

On placements at other credit institutions 144,549 56,465

On investment securities 134,982 125,592

totAl 1,647,753 1,032,922


Annual Report 2006

28. Interest expenses and other charges*Unit: VND million

INteReSt expeNSeS ANd otheR ChARGeS 2006 2005

On deposits 943,114 570,075

Borrowings from local credit institutions 19,081 14,782

On certificates of deposit 21,799 13,056

totAl 983,994 597,913

29. fee and commission income*Unit: VND million

fee ANd CommISSIoN INCome 2006 2005

Guarantees 7,143 4,675

Settlement services 87,087 67,132

Cash services 13,062 10,696

Other services in relation to credit activities 21,752 14,835

Other services 14,118 3,129

totAl 143,162 100,467

30. fee and commission expense*Unit: VND million

fee ANd CommISSIoN expeNSe 2006 2005

Settlement and cash services 17,599 18,226

Other operating expenses 14,093 11,215

totAl 31,692 29,441

31. Net gain from security trading*Unit: VND million

Net GAIN fRom SeCuRIty tRAdING 2006 2005

Gain from security trading 143,484 19,532

Loss from security trading - -

totAl 143,484 19,532

32. Net gain from dealing in foreign currencies*Unit: VND million

Net GAIN fRom deAlING IN foReIGN CuRReNCIeS 2006 2005

Gain from dealing in foreign currencies 132,099 63,628

Loss from dealing in foreign currencies (127,921) (38,211)

totAl 4,178 25,417

53

33. other operating income*Unit: VND million

otheR opeRAtING INCome 2006 2005

Gains from disposal of fixed assets 6,659 943

Income from office rental activity 1,708 15,822

Other income 27,888 7,033

totAl 36,255 23,798

34. Salaries and related expenses*Unit: VND million

SAlARIeS ANd RelAted expeNSeS 2006 2005

Salaries and allowances 170,890 109,487

Uniforms and related expenditures 1,805 1,259

Social insurance, health insurance and trade union fee 13,390 8,945

Subsidies 1,377 10

totAl 187,462 119,701

35. other operating expenses *Unit: VND million

otheR opeRAtING expeNSeS 2006 2005

Tax, duties and fees 7,980 4,869

Deposit insurance premiums 12,682 8,850

Administrative expenses 166,388 105,723

totAl 187,050 119,442

36. Value added taxEarned fees and commissions are subject to value added tax at the rate of 10% under the deduction method and foreign currency operations are subject to value added tax at the rate of 10% under the direct method. All other banking activities are exempt from value added tax.

37. Business income taxBusiness income tax charges at the rate of 28% for the year is based on the estimated taxable income and is subject to the review and possible adjustment by the tax authorities.

*Unit: VND million

BuSINeSS INCome tAx 2006 2005

Current tax 141,200 74,383

Deferred tax - -

totAl 141,200 74,383


Annual Report 2006

No deferred tax was recognised in the consolidated financial statements as there were no temporary differences as at 31 December 2005 and 31 December 2006.

The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the tax rate of 28% as regulated by prevailing tax regulations as follows:

*Unit: VND million

BuSINeSS INCome tAx 2006 2005

Net profit before tax 611,328 312,807

Tax 157,969 88,414

Effect:

Income not subject to tax (23,981) (14,031)

Expenses not deductible for tax purposes 7,212 -

BuSINeSS INCome tAx ChARGe 141,200 74,383

38. eARNINGS peR ShARe (“epS”)

BASIC eARNINGS peR ShARe

Basic earnings per share are calculated by dividing the net profit attributable to the equity holders of the Bank by the weighted average number of ordinary shares in issue during the year.

*Unit: VND million

BASIC eARNINGS peR ShARe 2006 2005

Profit attributable to the equity holders of the Bank 470,128 238,424

Weighted average number of ordinary shares in issue (thousand shares) 175,727 98,311

BASIC eARNING peR ShARe (VNd peR ShARe) 2,675 2,425

39. Related party transactions and balancesDuring the year and at 31 December 2006, the Group had the following transactions and balances with related parties:

*Unit: VND million

RelAted pARty tRANSACtIoNS 2006 2005

Interest expenses paid 4,176 495

Interest income received 847 412

Dividends paid 53,789 41,290

Dividends received - 5,966

Demand deposit balance 13,389 19,339

Term deposit balance 56,973 54,732

Loan balance 75,669 50,725

Trading securities 61,663 -

Available-for-sale securities 38,096 -

Investments in other entities 50,750 -

Advance for office rental 52,626 -

Guarantee balance - 81

The remuneration of the Board of Management and Board of General Directors of the year is VND 3,900 million (2005: VND 3,000 million) and VND 3,813 million (2005: VND 3,748 million), respectively.

55

40. Contingencies and commitmentsThe aggregate amounts of outstanding guarantees, letters of credit and other commitments at the end of the year were:

*Unit: VND million

CoNtINGeNCIeS ANd CommItmeNtS deNomINAted IN VNd


totAl

31 deCemBeR 2006

Letters of credit at sight 448 2,102,967 2,103,415

Deferred letters of credit - 119,213 119,213

Payment guarantees 195,764 13,238 209,002

Performance guarantees 64,359 10,552 74,911

Other guarantees 89,228 33,797 123,025

Foreign currency spot deals - 324,063 324,063

Foreign currency swap deals - 325,805 325,805

totAl 349,799 2,929,635 3,279,434

31 deCemBeR 2005

Letters of credit at sight 1,581 1,117,643 1,119,224

Deferred letters of credit - 83,389 83,389

Payment guarantees 100,535 7,034 107,569

Performance guarantees 36,755 4,387 41,142

Other guarantees 62,020 38,271 100,291

Foreign currency spot deals - 259,331 259,331

Foreign currency forward deals - 543,533 543,533

Foreign currency swap deals - 397,543 397,543

totAl 200,891 2,451,131 2,652,022

In the normal course of business, the Group makes various commitments and incurs certain contingent liabilities that are not presented in the balance sheet. The commitments and contingent liabilities include guarantees, letters of credit, forex forward contracts, swap contracts and undue spot contracts. The Group does not anticipate any significant losses as a result of these transactions.

41. Investment in subsidiary undertaking*Unit: VND million

INVeStmeNt IN SuBSIdIARy uNdeRtAkING 2006 2005

Investments at cost 484,000 12,000

totAl 484,000 12,000


Annual Report 2006

detAIlS of SuBSIdIARy uNdeRtAkING ARe AS followS:

*Unit: VND million

NAme CouNtRy of INCoRpoRAtIoN

CoSt of INVeStmeNt

eQuIty holdING

Asset Management Company Vietnam 30,000 100%

Sacombank Leasing Company Vietnam 150,000 100%

Sacombank Securities Company Vietnam 300,000 100%

Saigon Thuong Tin Remittance Express Co., Ltd. Vietnam 4,000 100%

The consolidated financial statements were approved by the Board of General Directors on 15 March 2007.

dang Van thanh


phan Bich Van

General Director


Chief Accountant

57

lIStING ShARe oN the hoChImINh CIty SeCuRItIeS tRAdING CeNtReJuly 12th, 2006 was the first day Sacombank listed its shares with the securities code STB on the Hochiminh City Securities Trading Center. Sacombank became the bank to be listed on the Vietnamese stock market. The event brought Sacombank an record trophy from the Hochiminh City Securities Trading Center and the Vietnamese Record Book (Vietbooks) in January 2007.

1

SAComBANk’S teN mIleStoNeS IN 2006


BeING the lARGeSt ChARteRed CApItAl AmoNG the VIetNAmeSe CommeRCIAl joINt–StoCk BANkSThe fact that Sacombank’s chartered capital reached VND2,089 billion in 2006 makes it the largest chartered capital among the Vietnamese commercial joint-stock banks. Increasing financial capability for improving the competitiveness and meeting the adequacy requirements of the Government is always highlighted in Sacombank’s annual strategic plan.

2

3 CoVeRING 38 out of 64 CItIeS & pRoVINCeS of VIetNAm wIth 159 tRANSACtIoN poINtSSacombank had 159 transaction points in 38 out of 64 cities and provinces of Vietnam, making it the largest distribution network among the Vietnamese commercial joint stock banks in 2006. Sacombank’s leaders has the strategy of “seizing the opportunity quickly” for expanding its network and increasing its market share in the period of WTO integration. It is to bring the best banking facilities to the people in the whole country.


SuCCeSSfully oRGANIzING eVeNtS CeleBRAtING ItS 15th ANNIVeRSARySacombank successfully organized events celebrating its 15th anniversary (December 21st, 1991 - December 21st, 2006): the promotion campaigns of “15 Years of Sacombank” and “Celebrating the Golden Birthday” warmly welcomed by customers nationwide throughout the year, and the music program on December 21st, 2006 organized at the Hoa Binh Theater with the witnesses of Sacombank’s customers, partners and employees.

4

BeING oNe of the two CommeRCIAl joINt–StoCk BANkS wIth the hIGheSt pRofItSIn the 2006 business performance, Sacombank achieved its before-tax profit of VND543.2 billion, an increase of 177.5% compared to that of 2005, which was a record for the 15 years of operation. Sacombank was one of the two commercial joint-stock banks with the highest profits.

5


6 wINNING loCAl & INteRNAtIoNAl AwARdSThe awards Sacombank received in 2006 included:

“The Vietnamese best bank in lending to SMEs 2006” voted by the European •Community SME Development Fund;

“The Vietnamese best bank in foreign exchange services 2006” voted by the •Asia-Pacific financial institution;

“The Lighthouse” award voted by customers during the Banking Finance •Insurance Expo;

“The Certificates of Merit” awarded by the Governor of the State Bank of •Vietnam and the Hochiminh City Chairman of the People’s Committee to Sacombank’s employees for their excellent achievements in order to reach targets of the banking sector in 2005.


BeING SuCCeSSful INteRNAtIoNAl RelAtIoNS Successfully organizing a meeting with more than 200 correspondent banks and international partners in Singapore, being the only one representative of Vietnam’s commercial joint-stock banks in delivering noticeable speeches at the investment conferences in New York and Singapore in 2006 marked the continuous growth of Sacombank in reaching international level.

7

SIGNING the loAN AGReemeNt wIth fmoSigning ceremony of the loan agreement between Sacombank and FMO, a Dutch Financial Development Company, marked Sacombank’s success in calling for capital from domestic and international financial organizations and institutions. With this cooperation, Sacombank launched the product “Offset Loan”, the most convenient credit product introduced to the Vietnamese customers.

8


AppoINtING thRee New deputy GeNeRAl dIReCtoRSIn 2006, Sacombank appointed three young and talented Deputy General Directors in charge of Support, Information Technology and Central Vietnam and branch directors. It shows a trend of inserting new blood to managerial positions. Developing and improving quality of human resources is one of the most important development targets at Sacombank.

9

10 StARtING the CoNStRuCtIoN of New heAdQuARteRSacombank started the construction of new headquarter in 266-268 Nam Ky Khoi Nghia Street, District 3, Hochiminh City in 2006. The scale of construction will result in the largest headquarter in the commercial joint-stock banks, marking the strong development of Sacombank. Not only Sacombank’s headquarters but also its branches and transaction offices nationwide have spacious premises, showing a strong commitment of its long-term service to customers.


INVeStoR RelAtIoNS

Shareholders

Securities listing and trading in 2006

price fluctuation july – december 2006

Unit: VND 10,000

Unit: VND 10,000

(Source: According to price matching at close)

ShARe pRICe july

2006

AuGuSt

2006

SeptemBeR

2006

oCtoBeR

2006

NoVemBeR

2006

deCemBeR

2006

The highest 81,5 66,5 72 73 68 72

The lowest 64,5 58,5 67,5 59,5 60,5 63,5

Average 73,571 63,37 69,675 66,114 62,455 68,071

NumBeR of ShAReholdeRS 13.300

foReIGN ShAReholdeRS No. of ShAReS

1. Institutions 62,457,383

2. Individuals 225,222

loCAl ShAReholdeRS

1. State institutions 22,077

2. Other institutions 26,250,622

3. Individuals 119,985,977

totAl 208,941,281

Securities code STB

Listing date on HoSTC 12 July 2006

Trading volume 208,941,281 shares

Nominal value VND10,000 per share

Market capitalization on December 29th, 2006 (VND72,000 per share)

VND 15,043,000,000,000


july 12th, 2006 was the first day Sacombank listed its

shares with the securities code StB on the hochiminh

City Securities trading Center. It was a milestone event

for Vietnam’s stock market as Sacombank became the

bank to be listed on the Vietnamese stock market.

Ever since, its shares, which were regarded as hypersensitive, have been traded like any others. It opens a new chapter for the development of Sacombank in particular and for Vietnam’s banks in general.

Sacombank is the largest listed company in terms of chartered capital among 41 registered companies with their shares listed and traded on HoSTC. With the participation of Sacombank, the total share volume traded at the HoSTC increased three times compared to that of end of 2005 and about 44% from the current listed value on the market. In addition, the listing of Sacombank’s shares has helped the market to identify a new supply-demand balance.

Playing the pioneer role with a trial mission, due to the sensitivity and potential risks of a credit institute, Sacombank prepares carefully for its post-listing period including a plan for sustainable operation during a crisis.

It increases its resources and developed its distribution network to increase competitiveness; diversified product and services and reduces costs;,economizes to improve the profit ratio and builds capital reserves; applies the best international standards and practices to upgrade operational management; creates transparency in financial operations; establishes and extends cooperative and joint-venture relations with national and international financial institutions to overcome weaknesses; adjust insufficiencies and makes good use of coordinated strength to increase competitiveness and operational efficiency.

Sacombank’s listing on Vietnam’s stock market in 2006 marked a milestone for its development. It enhances Sacombank’s brand and prestige in the local and international financial markets, which made it easier for Sacombank to raise capital for development. Sacombank’s shares have always been favored by the investors: and been among those leading the stock market in trading volume and liquidity. At the end of 2006, Sacombank’s market capitalization was over VND15,000 billion. Investors appreciate Sacombank’s potential for development through its nationwide network, its effective investment portfolios, tangible and intangible assets, its ability to reinvest and its core values.

the ten largest shareholdersUnit: VND 10,000

ShAReholdeRS totAl CApItAl % /CApItAl

1. AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD 20,625,000 9.87

2. INTERNATIONAL FINANCE CORPORATION 16,002,246 7.66

3. DRAGON FINANCIAL HOLDINGS LIMITED 18,315,000 8.77

4. REFRIGERATING ENGINEERING TECHNOLOGY CO. 11,937,200 5.71

5. MR. DANG HONG ANH 8,534,054 4.08

6. PRUDENTIAL LIFE INSURANCE CO. 7,531,932 3.60

7. MR. DANG VAN THANH 6,794,675 3.25

8. MS. CHAU THI VAN 5,216,635 2.50

9. MR. TRAN VAN SON 4,653,000 2.23

10. MR. NGUYEN NGOC HAI 3,496,130 1.67

totAl 103,105,872 49.00


price fluctuation

Source: HoSTC

VND


SuBSIdIARIeS ANd joINt–VeNtuRe CompANIeS

Asset Management Company – Sacombank (AMC)

Address : 25 Ly Thuong Kiet Street Ward 7, Tan Binh District, HCM City Telephone : (84-8) 9 717 265 Fax : (84-8) 9 717 274

Sacombank Remittance Express Company (SacomRex)

Address : 278 Nam Ky Khoi Nghia Street Ward 8, District 3, HCM City Telephone : (84-8) 9 320 684 Fax : (84-8) 9 320 687

SacombankLeasing Company

Address : 87A Ham Nghi Street Nguyen Thai Binh Ward, District 1, HCM City Telephone : (84-8) 9 144 494 Fax : (84-8) 8 211 472

Sacombank Securities Company

Address : 06-08 Pho Duc Chinh Street, Nguyen Thai Binh Ward, District 1, HCM City Telephone : (84-8) 8 214 888 Fax : (84-8) 8 213 015

Viet Fund Management Joint-Venture Company

Address : 8th floor, Bitexco Building, 19 – 25 Nguyen Hue Street, District 1, HCM City Telephone : (08) 9 143 393 Fax : (08) 9 143 392


dIStRIButIoN NetwoRk

HA NOI HEAD OFFICE

88 Ly Thuong Kiet St., Cua Nam, Hoan Kiem District, Ha Noi

Tel: (84 4) 9428 094 Fax: (84 4) 9428 088

Transaction office no. 2

87 Hang Bac St., Ward Hang Bac, Disctrict Hoan Kiem, Ha Noi

Tel: (84 4) 9261 392 Fax: (84 4) 9261 392

Dong Xuan transaction office

12 Tran Nhat Duat St., Ward Dong Xuan, Hoan Kiem Disctrict, Ha Noi

Tel: (84 4) 9283 725 Fax: (84 4) 9283 725

Hoan Kiem transaction office

16E Duong Thanh St., Hoan Kiem Disctrict, Ha Noi

Tel: (84 4) 9230 823 Fax: (84 4) 9230 822

HA NOI BRANCH

65 Ngo Thi Nham St., Hai Ba Trung Disctrict, Ha Noi

Tel: (84 4) 9432 589 Fax: (84 4) 9432 988

Cho Mo transaction office

442 Bach Mai St., Ward Truong Dinh, Hai Ba Trung Disctrict, Ha Noi

DONG DA BRANCH

360 Tay Son St., Dong Da District, Ha Noi

Tel: (84 4) 5640 458 Fax: (84 4) 5640 459

Transaction office no. 3

65 Tran Dang Ninh St., Cau Giay District, Ha Noi

Tel: (84 4) 7910 950 Fax: (84 4) 7910 950

LONG BIEN BRANCH

247 Ngo Gia Tu St., Long Bien District, Ha Noi

Tel: (84 4) 6522 055 Fax: (84 4) 6522 066

Ha Tay transaction office

30 Quang Trung St., Ward Ha Dong, Ha Tay District

Tel: (84 34) 824 047 Fax: (84 34) 824 047

HUNG YEN BRANCH

13 39A, Pho Noi St., Ban Yen Nhan Commune, My Hao District, Hung Yen

Tel: (84 321) 942 905 Fax: (84 321) 942 387 Pho Hien transaction office

279 Dien Bien St., Hung Yen District, Hung Yen

Tel: (84 321) 866 770 Fax: (84 321) 866 769

HEAD OFFICE

278 Nam Ky Khoi Nghia St., Ward 8, Disctrict 3, HCM City

Tel: (84 8) 9320 420 Fax: (84 8) 9320 424

NoRtheRN


Bo Thoi transaction office

Bo Thoi, Hong Tien Commune, Khoai Chau District, Hung Yen

Tel: (84 321) 920 690 Fax: (84 321) 920 689

BAC NINH BRANCH

202 Tran Phu St., Tu Son Commune, Tu Son District, Bac Ninh

Tel: (84 241) 743 965 Fax: (84 241) 743 964

Tien Du transaction office

Thi tran Lim, Tien Du District, Bac Ninh

Tel: (84 241) 710 711 Fax: (84 241) 710 711

Tien An transaction office

340 Ngo Gia Tu St., Tien An Commune, Bac Ninh District, Bac Ninh

Tel: (84 241) 811 622 Fax: (84 241) 811 622

Ñong Anh transaction office

31 Cao Lo St., Uy No Commune, Ñong Anh District, Ha Noi

Tel: (84 4) 9653 801 Fax: (84 4) 9653 800

THANH HOA BRANCH

2 Phan Chu Trinh St., Dien Bien Commune, Thanh Hoa District, Thanh Hoa

Tel: (84 37) 715 752 Fax: (84 37) 715 751

LANG SON BRANCH

8 Ngo Quyen St., Vinh Trai Commune, Lang Son District, Lang Son

Tel: (84 25) 716 324 Fax: (84 25) 716 325

HAI DUONG BRANCH

144 Thong Nhat St., Le Thanh Nghi Commune, Hai Duong District, Hai Duong

Tel: (84 320) 833 208 Fax: (84 320) 833 209 Sao Ño transaction office

119 Nguyen Trai 1 St., Thi tran Sao Do, Chi Linh District, Hai Duong

Tel: (84 320) 589 347 Fax: (84 320) 589 348

Phu Thai transaction office

Pho Ga, Thi tran Phu Thai Kim Thanh District, Hai Duong

Tel: (84 320) 726 388 Fax: (84 320) 726 389

Ke Sat transaction office

158 Khu nga 5, Trang Liet Commune Binh Giang District, Hai Duong

HAI PHONG BRANCH

62-64 Ton Duc Thang St., Ward Tran Nguyen Han, Le Chan District, Hai Phong

Tel: (84 313) 719 999 Fax: (84 313) 719 993


CeNtRAl

LAM DONG BRANCH

32 Hoa Binh, 3 thang 2 St., Ward 1, Da Lat City, Lam Dong

Tel: (84 63) 549 045 Fax: (84 63) 549 047

Bao Loc transaction office

43 Le Thi Pha St., Bao Loc District, Lam Dong

Tel: (84 63) 711 254 Fax: (84 63) 711 254

Duc Trong transaction office

303 Map 6, KP 2 Thi tran Lien Nghia Duc Trong District, Lam Dong

Tel: (84 63) 649 161 Fax: (84 63) 649 162

Quang Trung transaction office

26 Quang Trung St., Ward 9, Da Lat City, Lam Dong

Tel: (84 63) 826 600 Fax: (84 63) 826 600

BINH DINH BRANCH

98 Mai Xuan Thuong St., Ward Ly Thuong Kiet, Quy Nhon City, Bình Dinh

Tel: (84 56) 817 314 Fax: (84 56) 817 312

Dap Da transaction office

123 Bang Chau Aea Thi tran Dap Da, An Nhon District, Binh Dinh

Tel: (84 56) 639 702 Fax: (84 56) 639 704 Le Loi transaction office

131 Le Loi St., Ward Tran Hung Dao Quy Nhon City, Binh Dinh

Tel: (84 56) 817 177 Fax: (84 56) 817 176

Bong Son transaction office

243 Quang Trung St., Thi tran Bong Son, Hoai Nhon District, Binh Dinh

Tel: (84 56) 961 370 Fax: (84 56) 961 373

KHANH HOA BRANCH

54A Yersin St., Phuong Sai Commune, Nha Trang City, Khanh Hoa

Tel: (84 58) 817 594 Fax: (84 58) 817 598

Ninh Hoa transaction office

290 Tran Quy Cap St., Ninh Hoa Commune, Khanh Hoa

Tel: (84 58) 630 864 Fax: (84 58) 630 863

Nha Trang

65 Nguyen Trai St., Phuoc Tien District, Nha Trang City, Khanh Hoa

Tel: (84 58) 515 495 Fax: (84 58) 515 708 Le Hong Phong - Nha Trang transaction office

227 Le Hong Phong St., Phuc Hai District, Nha Trang City, Khanh Hoa

Tel: (84 58) 889 192 Fax: (84 58) 889 194

Cam Ranh transaction office

134-136 Highway No. 1, Ward Ba Ngoi, Cam Ranh District, Khanh Hoa

Tel: (84 58) 954 300 Fax: (84 58) 954 302

PHU YEN BRANCH

97 Nguyen Trai St., Ward 4, Tuy Hoa District, Phu Yen

Tel: (84 57) 893 341 Fax: (84 57) 893 342

Nam Tuy Hoa transaction office

374 Nguyen Vaên Linh St., Phu Lam Commune, Tuy Hoa District, Phu Yen

Tel: (84 57) 851 850 Fax: (84 57) 851 850


DA NANG BRANCH

202 Hoang Dieu St., Nam Dung Commune, Hai Chau District, Da Nang

Tel: (84 511) 582 612 Fax: (84 511) 582 613

Cho Con transaction office

225 Ong Ich Khiem St., To 58 Cau Vong Hai Chau District, Da Nang

Tel: (84 511) 866 368 Fax: (84 511) 866 369

Thanh Khe transaction office

568 Dien Bien Phu St., Thanh Khe Dong Commune, Thanh Khe District, Da Nang

Tel: (84 511) 725 542 Fax: (84 511)725 543

Son Tra transaction office

617 Ngo Quyen St., An Nhon Dong Commune, Son Tra District, Da Nang

Tel: (84 511) 260 099 Fax: (84 511) 260 010

Cam Le transaction office

179 Ong Ich Duong St., Khue Trung Commune, Cam Le District, Da Nang

Tel: (84 511) 247 000 Fax: (84 511) 696 700

HOI AN BRANCH

91 Tran Hung Dao St., Hoi An, Quang Nam

Tel: (84 510) 911 031 Fax: (84 510) 911 032

Nam Phuoc transaction office

37 To 2, Khoi pho 2 Long Xuyen, Nam Phuoc Commune Duy Xuyen District, Quang Nam

Tel: (84 510) 777 123 Fax: (84 510) 777 125

THUA THIEN HUE BRANCH

126 Nguyen Hue St., Phu Nhuan Commune, Hue City, Thua Thien Hue

Tel: (84 54) 834 979 Fax: (84 54) 834 980

An Cuu transaction office

144 Hung Vuong St., Phu Nhuan Commune Hue City, Thua Thien Hue

Tel: (84 54) 814.181 Fax: (84 54) 814 243

Phu Bai transaction office

Area 4, Thi tran Phu Bai Huong Thuy District, Thua Thien Hue

Tel: (84 54) 851 032 Fax: (84 54) 851 033

Tay Loc transaction office

172 (older 02) Nguyen Trai St., Tay Loc Commune, Hue City, Thua Thien Hue

Tel: (84 54) 539 364 Fax: (84 54) 539 365 Phu Xuan

49 Tran Hung Dao St., Phu Hoa Commune Hue City, Thua Thien Hue

Tel: (84 54) 513 867 Fax: (84 54) 513 850

QUANG BINH BRANCH

254 Tran Hung Dao St., Nam Ly Commune, Dong Hoi, Quang Binh

Tel: (84 52) 241 242 Fax: (84 52) 844 966

QUANG TRI BRANCH

86 Le Duan St., Ward 1, Dong Ha Commune, Quang Tri

Tel: (84 53) 553 800 Fax: (84 53) 553 801

Vinh Linh

Khom Huu Nghi, Thi tran Ho Xa Vinh Linh District, Quang Tri

Tel: (84 53) 217 863 Fax: (84 53) 622 261


DAC LAC BRANCH

362-364 Le Duan St., Buon Ma Thuoc City, Dac Lac

Tel: (84 50) 861 102 Fax: (84 50) 861 104

Dak Nong transaction office

43A Highway No. 14, Tam Thang Commune, Cu Jut District, Dak Nong

Tel: (84 50) 683 798 Fax: (84 50) 683 632

BINH THUAN BRANCH

126 Tran Hung Dao St., Phan Thiet City, Binh Thuan

Tel: (84 62) 834 655 Fax: (84 62) 832 115

eASt–SoutheRN

BINH DUONG BRANCH

431 Binh Duong Boulevard Area 1, Phu Cung Ward, Thu Dau Mot District, Binh Duong

Tel: (84 650) 859 593 Fax: (84 650) 859 591

Thu Dau Mot transaction office

77-79 Doan Tran Nghiep St., Thu Dau Mot District, Binh Duong

Tel: (84 650) 859 961 Fax: (84 650) 859 962

Ben Cat transaction office

Ap 3, Ward Lai Uyen Ben Cat District, Binh Duong

Tel: (84 650) 562 863 Fax: (84 650) 552 033

Di An transaction office

12A/22 Tran Hung Dao St., Ap Binh Minh, Di An Centre, Di An District, Binh Duong

Tel: (84 650) 734 840 Fax: (84 650) 734 841

Lai Thieu transaction office

C186A To 18, KP Binh Duc Lai Thieu Commune, Thuan An District, Binh Duong

Tel: (84 650) 760 375 Fax: (84 650) 760 437

My Phuc transaction office

Khu pho 1, Binh Duong Boulevard Ward My Phuc, Ben Cat District, Binh Duong

Tel: (84 650) 559 669 Fax: (84 650) 559 668

DONG NAI BRANCH

87-89 30/4 St., Thanh Binh Commune, Bien Hoa City, Dong Nai

Tel: (84 61) 3829 194 Fax: (84 61) 3946 068

Long Khanh

908B Hung Vuong St., Xuan Loc Commune, Long Khanh District, Dong Nai

Tel: (84 61) 3783 587 Fax: (84 61) 3783 443

Ho Nai transaction office

98/7 Ha Noi Highway Ward Tan Bien, Bien Hoa City, Dong Nai

Tel: (84 61) 3884 073 Fax: (84 61) 3884 073

Bien Hoa transaction office

141/5 Highway No. 15, Tam Hiep District, Bien Hoa City, Dong Nai

Tel: (84 61) 3829 195 Fax: (84 61) 3829 194


Trang Bom transaction office

82/3 Ap Thanh Hoa, Ho Nai Ward 3 Trang Bom Commune, Dong Nai

Tel: (84 61) 3673 970 Fax: (84 61) 3673 971

Gia Kiem transaction office

112/4 Ap Tan Yen, Gia Tan 3 Commune, Thong Nhat District, Dong Nai

Tel: (84 61) 3778 487 Fax: (84 61) 3778 488

BINH PHUOC BRANCH

Khu pho Phu Thanh, Tan Phu Commune Dong Xoai District, Binh Phuoc

Tel: (84 651) 883 140 Fax: (84 651) 883 569

Phuoc Long transaction office

217 Khu pho 2, Phuc Binh Commune, Phuc Long District, Binh Phuoc

Tel: (84 651) 775 201 Fax: (84 651) 775 201 BA RIA - VUNG TAU BRANCH

03 Bach Mai St., Phuc Trung Commune, Dong Xoai District, Ba Ria

Tel: (84 64) 717 153 Fax: (84 64) 717 150

Rach Dua transaction office

196 30/4 St., Rach Dua Commune Vung Tau City, Ba Ria - Vung Tau

Tel: (84 64) 211 228 Fax: (84 64) 615 914

ho ChI mINh CIty

HCMC BRANCH

278 Nam Ky Khoi Nghia St., Ward 8, Disctrict 3, HCM City

Tel: (84 8) 9322 670 Fax: (84 8) 9320 425

Ban Co transaction office

660 Nguyen Dinh Chieu St., Ward 3, Disctrict 3, HCM City

Tel: (84 8) 8352 215 Fax: (84 8) 8352 217

Le Van Sy transaction office

51 Tran Quang Dieu St., Ward 14, Disctrict 3, HCM City

Tel: (84 8) 9318 816 Fax: (84 8) 9310 104

SAI GON BRANCH

211 Nguyen Thai Hoc St., Disctrict 1, HCM City

Tel: (84 8) 8360 243 Fax: (84 8) 8368 598 Binh Thanh transaction office

278 Xo Viet Nghe Tinh St., Ward 21, Binh Thanh District, HCM City

Tel: (84 8) 5122 359 Fax: (84 8) 5122 008

Tan Dinh transaction office

69 Phan Dinh Phung St., Ward 17, Phu Nhuan District, HCM City

Tel: (84 8) 9903 675 Fax: (84 8) 9903 683

Thanh Da transaction office

714 Xo Viet Nghe Tinh St., Ward 26, Binh Thanh District, HCM City

Tel: (84 8) 5116 107 Fax: (84 8) 5116 108

Cao Thang transaction office

17bis Cao Thang St., Ward 2, Disctrict 3, HCM City

Tel: (84 8) 8335 646 Fax: (84 8) 8335 646 Disctrict 1 transaction office

6-8 Pho Duc Chinh St., Ward Nguyen Thai Binh Disctrict 1, HCM City

Tel: (84 8) 9144 514 Fax: (84 8) 9144 516

Ham Nghi transaction office

87A Ham Nghi St., Ward Nguyen Thai Binh, Disctrict 1, HCM City

HUNG DAO BRANCH

99A Nguyen Van Cu St., Ward 2, District 5, HCM City

Tel: (84 8) 9232 800 Fax: (84 8) 9232 799

Dong Khanh transaction office

65-67 Tran Hung Dao St., Ward 6, District 5, HCM City

Tel: (84 8) 8384 126 Fax: (84 8) 8384 074


Nguyen Tri Phuong transaction office

304-306 Nguyen Tri Phuong St., Ward 4, District 10, HCM City

Tel: (84 8) 8347 458 Fax: (84 8) 8345 043

Au Co transaction office

56/3 Au Co St., Ward 9, Tan Binh District, HCM City

Tel: (84 8) 8653 335 Fax: (84 8) 8653 335

Tan Thuan transaction office

384 Huynh Tan Phat St., Ward Binh Thuan, District 7, HCM City

Tel: (84 8) 8724 288 Fax: (84 8) 8724 289

Le Hong Phong transaction office

517 Le Hong Phong St., Ward 2, District 10, HCM City

Tel: (84 8) 8336 971 Fax: (84 8) 8336 971

Xom Cui transaction office

409-411 Tung Thien Vuong St., Ward 12, District 8, HCM City

Tel: (84 8) 9514 893 Fax: (84 8) 9504 403

Phu My Hung transaction office

Can ho D1, 9 Khu pho My Hoang, Phu My Hung, District 7, HCM City

Tel: (84 8) 4121 631 Fax: (84 8) 4120 923

CHO LON BRANCH

920 Nguyen Chi Thanh St., Ward 4, District 11, HCM City

Tel: (84 8) 9555 280 Fax: (84 8) 9555 947

Binh Tan transaction office

494-496 Kinh Duong Vuong St., Ward An Lac A, District Binh Tan, HCM City

Tel: (84 8) 7522 271 Fax: (84 8) 7522 272

Cho Lon transaction office

47 Hau Giang Ward 2, District 6 HCM City

Tel: (84 8) 9602 395 Fax: (84 8) 9602 395

Phu Lam transaction office

63A Kinh Duong Vuong St., Ward 12, District 6, HCM City

Tel: (84 8) 7515 257 Fax: (84 8) 7515 246

Kim Bien transaction office

4 Trang Tu St., Ward 14, District 5, HCM City

Tel: (84 8) 9509 045 Fax: (84 8) 9509 045

Binh Phu transaction office

50-52 No. 22 St., KDC Binh Phu Ward 11, District 6, HCM City

Tel: (84 8) 7551 723 Fax: (84 8) 7551 724

Binh Chanh transaction office

B1/16-B1/17 Highway No. 1A Ap 2, Binh Chanh Commune, Binh Chanh District, HCM City

TAN BINH BRANCH

224 Le Van Sy St., Ward 1, Tan Binh District, HCM City

Tel: (84 8) 9907 202 Fax: (84 8) 9907 205

Ba Queo transaction office

14/3A Truong Chinh St., Ward 13, Tan Binh District, HCM City

Tel: (84 8) 8495 010 Fax: (84 8) 8495 010


Lu Gia transaction office

08 No. 2 St., Cu xa Lu Gia Ward 15, District 11, HCM City

Tel: (84 8) 8651 204 Fax: (84 8) 8651 204

Phu Tho Hoa transaction office

303 Nguyen Son St., Ward Phu Thanh, Tan Phu District, HCM City

Tel: (84 8) 9786 034 Fax: (84 8) 9786 034

Ong Ta transaction office

767 Cach Mang Thang 8 St., Ward 6, Tan Binh District, HCM City

Tel: (84 8) 9702 230 Fax: (84 8) 9702 230

Tan Quy transaction office

17 Go Dau St., Ward Tan Quy, Tan Phu District, HCM City

Tel: (84 8) 8108 929 Fax: (84 8) 8109 833

KCN Tan Binh transaction office

Lot IV-18, 2 Tan Binh Industrial Zone Ward Tay Thanh, Tan Phu District, HCM City

Tel: (84 8) 8156 799 Fax: (84 8) 8156 799

E Town transaction office

364 Cong Hoa St., Tan Binh District, HCM City

GO VAP BRANCH

94-96-98 Nguyen Oanh St., Ward 7, Go Vap District, HCM City

Tel: (84 8) 8943 648 Fax: (84 8) 8 941 918

Cho Cau transaction office

B74 To Ky St., Ward Dong Hung Thuan, District 12, HCM City

Tel: (84 8) 7150 828 Fax: (84 8) 7150 828

Binh Hoa transaction office

95 Le Quang Dinh St., Ward 14, Binh Thanh District, HCM City

Tel: (84 8) 5160 644 Fax: (84 8) 5160 644

Go Vap transaction office

120 Nguyen Van Nghi Ward 5, Go Vap District HCM City

Tel: (84 8) 8941 001 Fax: (84 8) 8941 001

Xom Moi transaction office

20/401 Le Duc Tho St., Ward 16, Go Vap District, HCM City

Tel: (84 8) 9164 243 Fax: (84 8) 9963 090

An Suong transaction office

207-209 Truong Chinh St., Ward Tan Thoi Nhat, District 12, HCM City

Tel: (84 8) 2568 459 Fax: (84 8) 2568 458

Thong Tay transaction office

2/5 Quang Trung St., Ward 11, Go Vap District, HCM City

Tel: (84 8) 8958 561 Fax: (84 8) 9967 984

HOC MON BRANCH

19/4A Ly Thuong Kiet St., Ward Hoc Mon, Hoc Mon District, HCM City

Tel: (84 8) 8910 179 Fax: (84 8) 7103 545

Trung Chanh transaction office

145/5 Nguyen Anh Thu St., Ward Trung Chanh Hoc Mon District, HCM City

Tel: (84 8) 8839 325 Fax: (84 8) 8839 324


CU CHI BRANCH

Highway No. 22, Ap Thuong, Thong Tay Hoi Commune, Cu Chi District, HCM City

Tel: (84 8) 7900 262 Fax: (84 8) 7900 262

An Nhon Tay transaction office

Cho Cu, Ward An Nhon Tay Cu Chi District, HCM City

Tel: (84 8) 7947 123 Fax: (84 8) 7947 124

Tan Quy transaction office

Highway No. 15, Ap 12 Tan Thanh Dong Commune, Cu Chi District, HCM City

Tel: (84 8) 7954 851 Fax: (84 8) 7954 851

8 THANG 3 BRANCH

192-194 Ly Thuong Kiet St., Ward 8, Tan Binh District, HCM City

Tel: (84 8) 9711 365 Fax: (84 8) 9711 367

THU DUC BRANCH

251 Vo Van Ngan St., Ward Linh Chieu, Thu Duc District, HCM City

Tel: (84 8) 7222 799 Fax: (84 8) 7222 800

DISTRICT 8 BRANCH

324 Chanh Hung St., District 8, HCM City

Tel: (84 8) 8508 345 Fax: (84 8) 8508 341

DISTRICT 4 BRANCH

55-57 Hoang Dieu St., District 4, HCM City

Tel: (84 8) 9433 963 Fax: (84 8) 9433 983

weSt–SoutheRN

TAY NINH BRANCH

149G 30/4 St., Ward 1, Tay Ninh District, Tay Ninh

Tel: (84 66) 810 414 Fax: (84 66) 810 419

Tan Chau transaction office

Ap Tan Hoa, Tan Phu Commune, Tan Chau District, Tay Ninh

Tel: (84 66) 759 023 Fax: (84 66)759 004

Go Dau transaction office

2/26, Ap Thanh Ha, Go Dau Commune, Ward Go Dau, Tay Ninh

Tel: (84 66) 520 300 Fax: (84 66) 520 299

Hoa Thanh transaction office

Lot 13 - Lot 14 Row A Trading Centre, Hoa Thanh Commune Hoa Thanh District, Tay Ninh

Tel: (84 66) 831 010 Fax: (84 66) 831 009

TRANG BANG BRANCH

Loc Du, Trang Bang Commune, Trang Bang District, Tay Ninh

Tel: (84 66) 890 158 Fax: (84 66) 890 159


AN GIANG BRANCH

56B Ton Duc Thang St., My Binh Commune, Long Xuyen District, An Giang

Tel: (84 76) 956 511 Fax: (84 76) 956 515

Tan Chau transaction office 123 Ton Duc Thang St., Ap Long Hung, Tan Chau, Tan Chau District, An Giang

Tel: (84 76) 534 282 Fax: (84 76) 534 284

Chau Doc transaction office

78 Doc Phu Thu St., Khom 5, Chau Phu A Commune, Chau Doc District, An Giang

Chau Phu transaction office

6-7 Lot A No. 1, Cai Dau Trading Centre, Cai Dau Commune, Ward Chau Phu, An Giang

Tel: (84 76) 685 856 Fax: (84 76) 685 858

CAN THO BRANCH

34 A2 Tra Noc 1 Industrial Zone, Tra Noc Commune, Binh Thuy District, Can Tho

Tel: (84 71) 843 282 Fax: (84 71) 843 295

Ninh Kieu transaction office

99 Vo Van Tan St., Tan An Commune, Ninh Kieu District, Can Tho

Tel: (84 71) 811 022 Fax: (84 71) 810 523

TT Thot Not transaction office

314 Highway No. 91 Long Thanh A Commune, Thot Not Disitrict, Can Tho

Tel: (84 71) 854 636 Fax: (84 71) 854 656

3 / 2 BRANCH

174 3/2 St., Hung Loi Commune, Ninh Kieu District, Can Tho

Tel: (84 71) 740 611 Fax: (84 71) 740 609

Cai Khe transaction office

Lot K Tran Van Kheo St., Cai Khe Commune, Ninh Kieu District, Can Tho

Tel: (84 71) 761 687 Fax: (84 71) 761 688

DONG THAP BRANCH

43 Ly Thuong Kiet St., Ward 2, Cao Lanh District, Dong Thap

Tel: (84 67) 871 525 Fax: (84 67) 871 535

Sa Dec transaction office

6-7 Nguyen Sinh Sac St., Ward 2, Sa Dec District, Dong Thap

Tel: (84 67) 772 355 Fax: (84 67) 772 360

KIEN GIANG BRANCH

281 Tran Phu St., Vinh Thanh Van Commune Rach Gia District, Kien Giang

Tel: (84 77) 875 797 Fax: (84 77) 875 737

Tan Hiep transaction office

496 Highway No. 80, Ap Dong Thanh, Thuan Dong A Commune, Tan Hiep District, Kien Giang

Tel: (84 77) 731 931 Fax: (84 77) 731 933 Rach Soi transaction office

01C Cach Mang Thang 8 St., Vinh Loi Commune, Rach Gia District, Kien Giang

Tel: (84 77) 913 718 Fax: (84 77) 913 719

Hon Dat transaction office

47 Ap Hon St., Hon Dat Commune, Hon Dat District Kien Giang

Tel: (84 77) 786 136 Fax: (84 77) 786 134


Ha Tien transaction office

16 Tran Hau St., Dong Ho Commune, Ha Tien District, Kien Giang

Tel: (84 77) 260 290 Fax: (84 77) 260 300 PHU QUOC BRANCH

To An Ninh 10, Khu Pho 4, Duong Dong Commune, Phu Quoc District, Kien Giang

Tel: (84 77) 995 118 Fax: (84 77) 995 115 HAU GIANG BRANCH

7 3/2 St., Area 3 Commune 5, Vi Thanh District Hau Giang

Tel: (84 71) 876 075 Fax: (84 71) 876 950 Chau Thanh A transaction office

9A Highway No. 61, Ap Tan Phu, Tan Phu Thanh Commune, Chau Thanh A District, Hau Giang

Tel: (84 71) 952 774 Fax: (84 71) 952 773 Nga Bay transaction office

3/265 Highway No. 1A, Ward Nga Bay, Nga Bay District, Hau Giang BAC LIEU BRANCH

B1A Lot B Tran Phu, Bac Lieu Trading Centre Commune 3, Bac Lieu District, Bac Lieu

Tel: (84 781) 932 206 Fax: (84 781) 932 201

Ho Phong transaction office

151-153 Highway No. 1A - Ap 2 Ho Phong Centre, Gia Rai District, Bac Lieu

Tel: (84 781) 671 484 Fax: (84 781) 671 494 SOC TRANG BRANCH

65 Phu Loi Commune 2, Soc Trang District, Soc Trang

Tel: (84 79) 616 762 Fax: (84 79) 616 761 My Xuyen transaction office

1 Highway No. 8, Ap Thanh Loi My Xuyen Commune, My Xuyen District, Soc Trang

Tel: (84 79) 831 427 Fax: (84 79) 831 426 LONG AN BRANCH

167-169 Hung Vuong St., Commune 2, Tan An District, Long An

Tel: (84 72) 831 587 Fax: (84 72) 831 594 Ben Luc transaction office

42 Nguyen Huu Tho St., Ben Luc Commune, Ben Luc District, Long An

Tel: (84 72) 633 443 Fax: (84 72) 633 442 VINH LONG BRANCH

156 Nguyen Hue St., Commune 2, Vinh Long District, Vinh Long

Tel: (84 70) 878 260 Fax: (84 70) 878 261

Binh Minh transaction office

838 Ngo Quyen St., Cai Von Commune, Binh Minh District, Vinh Long

Tel: (84 70) 741 262 Fax: (84 70) 741 272 BEN TRE BRANCH

16 Hai Ba Trung St., Ben Tre Commune, Ben Tre

Tel: (84 75) 839 115 Fax: (84 75) 839 116 TIEN GIANG BRANCH

6 Dinh Bo Linh St., Commune 2, My Tho City, Tien Giang

Tel: (84 73) 973 333 Fax: (84 73) 973 344 Cai Be transaction office

Km 2001, Ap 06, Phu An Commune, Cai Lay District, Tien Giang

Tel: (84 73) 816 545 Fax: (84 73) 816 733 Go Cong transaction office

318 Vo Duy Linh St., Ward 1, Go Cong District, Tien Giang

Tel: (84 73) 513 133 Fax: (84 73) 513 143 CA MAU BRANCH

44 Ly Bon, Ca Mau Commune, Ca Mau

Tel: (84 780) 812 001 Fax: (84 780) 812 006


HEAD OFFICE

278 Nam Ky Khoi Nghia Street, Ward 8, District 3, Hochiminh City, Vietnam Tel : (84 8) 9320 420 Fax : (84 8) 9320 424 Website : www.sacombank.com.vn

annual report 2006 - sacombank€¦ · 10 annual report 2006 total assets sacombank increases the...

Documents