chinatrust commercial bank, ho chi minh city branch · 2015. 6. 15. · chinatrust commercial bank,...
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Financial statements for the year ended
31 December 2012
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Corporate Information
1
Banking Licence No. 04/NHNN-GP 6 February 2002
The Banking Licence was issued by the State Bank of Vietnam and is valid for 20 years from the date of
the Banking Licence.
Business Registration Certificate No. 107058 24 April 2002
The Branch’s Business Registration Certificate has been amended several times, the most recent of which
is dated 20 September 2011. The Business Registration Certificate and updates were issued by the
Department of Planning and Investment of Ho Chi Minh City.
Branch’s Management Ralph Wu General Manager
Henry Tseng Operation Manager
Winnie Chen Operation Manager
(from 2 February 2012)
Eric Tsai Head of Credit Department
Vu Thi Hoang Ha Head of Accounting Department
Registered Office Floor 9 - Kumho Asiana Plaza Saigon
39 Le Duan Street, Ben Nghe Ward
District 1, Ho Chi Minh City
Vietnam
Auditors KPMG Limited
Vietnam
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Statement of the Branch’s Management
2
The Branch’s Management is responsible for the preparation and presentation of the financial statements
in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for Credit
Institutions stipulated by the State Bank of Vietnam and the relevant statutory requirements. In the
opinion of the Branch’s Management:
(a) the financial statements set out on pages 4 to 68 are prepared and presented so as to give a true and
fair view of the financial position of Chinatrust Commercial Bank, Ho Chi Minh City Branch (the
“Branch”) as at 31 December 2012, and of the results of operations and the cash flows of the
Branch for the year then ended in accordance with the Vietnamese Accounting Standards, the
Vietnamese Accounting System for Credit Institutions stipulated by the State Bank of Vietnam and
the relevant statutory requirements; and
(b) at the date of this statement, there are no reasons to believe that the Branch will not be able to pay
its debts as and when they fall due.
The Branch’s Management has, on the date of this statement, authorized these financial statements for
issue.
On behalf of the Branch’s Management
Ralph Wu
General Manager
Ho Chi Minh City, 25 March 2013
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3
INDEPENDENT AUDITORS’ REPORT
To the Owner
Chinatrust Commercial Bank, Ho Chi Minh City Branch
Scope
We have audited the accompanying balance sheet of Chinatrust Commercial Bank, Ho Chi Minh
City Branch (the “Branch”) as of 31 December 2012 and the related statements of income and
cash flows for the year then ended and the explanatory notes thereto which were authorised for
issue by the Branch’s management on 25 March 2013, as set out on pages 4 to 68. These
financial statements are the responsibility of the Branch’s management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards
require that we plan and perform the audit to obtain reasonable assurance that the financial
statements are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the financial statements. We
believe that our audit provides a reasonable basis for our opinion.
Audit opinion
In our opinion, the financial statements give a true and fair view of the financial position of
Chinatrust Commercial Bank, Ho Chi Minh City Branch as of 31 December 2012 and of its
results of operations and its cash flows for the year then ended in accordance with Vietnamese
Accounting Standards, the Vietnamese Accounting System for Credit Institutions stipulated by
the State Bank of Vietnam and the relevant statutory requirements.
KPMG Limited
Vietnam
Investment Certificate No: 011043000345
Audit Report No: 12-01-114
___________________________________ __________________________________
Nguyen Thanh Nghi Tran Dinh Vinh
CPA No. 0304/KTV CPA No. 0339/KTV
Deputy General Director
Ho Chi Minh City, 25 March 2013
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Balance sheet as at 31 December 2012
Form B02/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
The accompanying notes are an integral part of these financial statements
4
Note
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
A ASSETS
I Cash on hand 4 1,014,963 551,780 21,140 11,492
II Balances with the State Bank
of Vietnam 5 11,225,631 13,639,375 233,807 284,081
III Deposits with and loans to
credit institutions 65,130,261 106,579,290 1,356,534 2,219,833
1 Deposits 6 59,274,092 98,182,799 1,234,561 2,044,951
2 Loans 6 6,006,169 8,396,491 125,097 174,882
3 Allowance for loans to
credit institutions 7 (150,000) - (3,124) -
VI Loans and advances to customers 225,366,789 293,459,620 4,693,939 6,112,177
1 Loans and advances to customers 8 227,095,594 295,822,461 4,729,947 6,161,390
2 Allowance for loans and
advances to customers 9 (1,728,805) (2,362,841) (36,008) (49,213)
VII Investment securities 10 34,750,566 717,284 723,785 14,940
1 Available-for-sale securities 33,782,072 - 703,613 -
2 Held-to-maturity securities 968,494 717,284 20,172 14,940
IX Fixed assets 364,657 470,570 7,595 9,801
1 Tangible fixed assets 11 364,657 470,570 7,595 9,801
a. Cost 867,545 851,252 18,069 17,730
b. Accumulated depreciation (502,888) (380,682) (10,474) (7,929)
XI Other assets 3,034,240 1,973,345 63,197 41,101
1 Receivables 12 219,953 257,197 4,581 5,357
2 Accrued interest and fees receivable 2,636,470 1,676,778 54,912 34,924
4 Other assets 177,817 39,370 3,704 820
TOTAL ASSETS 340,887,107 417,391,264 7,099,997 8,693,425
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Balance sheet as at 31 December 2012 (continued)
Form B02/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
The accompanying notes are an integral part of these financial statements
5
Note
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
B LIABILITIES AND OWNERS’ CAPITAL
LIABILITIES
II Deposits and borrowings
from credit institutions 13 82,995,579 153,221,922 1,728,632 3,191,306
1 Deposits 13 342,453 197,112 7,133 4,105
2 Borrowings 13 82,653,126 153,024,810 1,721,499 3,187,201
III Deposits from customers 14 167,910,894 179,656,151 3,497,248 3,741,878
VII Other liabilities 4,873,239 4,862,306 101,500 101,272
1 Accrued interest and fee
payables
1,296,286 1,491,995 26,999 31,075
3 Other liabilities 15 3,036,426 2,829,784 63,243 58,939
4 Provision for off-balance sheet
commitments 16 540,527 540,527 11,258 11,258
TOTAL LIABILITIES
255,779,712 337,740,379 5,327,380 7,034,456
OWNERS’ CAPITAL
VIII Capital and reserves 17
1 Allocated capital 50,000,000 50,000,000 1,041,400 1,041,400
2 Reserves 5,272,581 4,454,104 109,817 92,770
5 Retained profits 29,834,814 25,196,781 621,400 524,799
TOTAL CAPITAL 85,107,395 79,650,885 1,772,617 1,658,969
TOTAL LIABILITIES AND
OWNERS’ CAPITAL 340,887,107 417,391,264 7,099,997 8,693,425
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Balance sheet as at 31 December 2012 (continued)
Form B02/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
The accompanying notes are an integral part of these financial statements
6
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
OFF BALANCE SHEET ITEMS
I CONTINGENT LIABILITIES 22,585,731 44,224,105 470,416 921,100
1 Guarantees 7,408,873 6,144,069 154,312 127,969
2 L/C commitments 15,176,858 38,080,036 316,104 793,131
II OTHER COMMITMENTS 5,000,000 - 104,140 -
1 Undrawn loan commitments 5,000,000 - 104,140 -
25 March 2013
Prepared by: Approved by:
Vu Thi Hoang Ha Ralph Wu
Head of Accounting Department General Manager
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Statement of income for the year ended 31 December 2012
Form B03/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
The accompanying notes are an integral part of these financial statements
7
Note
2012
USD
2011
USD
2012
Equivalent
VND million
2011
Equivalent
VND million
Note 2(d) Note 2(d)
1 Interest and similar income 18 15,551,693 23,038,223 323,911 479,840
2 Interest and similar expenses 18 (5,356,183) (8,276,178) (111,559) (172,376)
I Net interest income 18 10,195,510 14,762,045 212,352 307,464
3 Fee and commission income 19 1,411,801 2,077,778 29,405 43,276
4 Fee and commission expenses 19 (219,904) (186,201) (4,580) (3,878)
II Net fee and commission income 19 1,191,897 1,891,577 24,825 39,398
III Net gain from trading of
foreign currencies 20 811,184 1,297,481 16,895 27,024
VI Other income/(expense) - net 21 545,692 (48,501) 11,366 (1,010)
VIII Operating expenses 22 (5,519,829) (6,123,244) (114,967) (127,535)
IX Profit before allowance and
provision expenses 7,224,454 11,779,358 150,471 245,341
X Allowance and provision expenses - (38,829) - (809)
XI Profit before tax 7,224,454 11,740,529 150,471 244,532
7 Income tax expense - current 23 (1,767,944) (2,925,000) (36,823) (60,922)
8 Income tax expense - deferred 23 - - - -
XII Total income tax expenses 23 (1,767,944) (2,925,000) (36,823) (60,922)
XIII Net profit after tax 5,456,510 8,815,529 113,648 183,610
25 March 2013
Prepared by: Approved by:
Vu Thi Hoang Ha Ralph Wu
Head of Accounting Department General Manager
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Statement of cash flows for the year ended 31 December 2012
(Direct method)
Form B04/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
The accompanying notes are an integral part of these financial statements
8
2012
USD
2011
USD
2012
Equivalent
VND million
2011
Equivalent
VND million
Note 2(d) Note 2(d)
CASH FLOWS FROM OPERATING ACTIVITIES
01 Interest and similar income received 14,764,664 22,694,067 307,518 472,672
02 Interest and similar expenses paid (5,551,892) (8,220,762) (115,635) (171,222)
03 Net fee and commission income
received 1,191,897 1,891,577 24,825 39,398
04 Net receipts from foreign exchange
activities 823,708 1,366,949 17,156 28,471
05 Other income received 377 447 8 9
07 Salaries and operating expenses paid (5,955,648) (5,783,228) (124,044) (114,525)
08 Income tax paid (1,672,549) (3,051,187) (34,836) (63,550)
Cash flows from operating
activities before changes in
operating assets and liabilities
3,600,557 8,897,863 74,992 191,253
Changes in operating assets
09 Deposits with and loans to credit
institutions
(10,929,249) (8,396,491) (227,634) (174,882)
10 Investment securities (34,205,945) - (712,441) -
12 Loans and advances to customers 68,726,867 5,036,406 1,431,442 104,898
14 Other assets (113,727) (178,341) (2,369) (3,714)
Changes in operating liabilities
15 Deposits and borrowings from
credit institutions
(70,226,343) (39,578,078) (1,462,674) (824,332)
17 Deposits from customers (11,745,257) 9,099,770 (244,630) 189,530
21 Other liabilities 730,551 229,414 15,216 (1,150)
I NET CASH FLOWS FROM
OPERATING ACTIVITIES (54,162,546) (24,889,457) (1,128,098) (518,397)
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Statement of cash flows for the year ended 31 December 2012
(Direct method - continued)
Form B04/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
The accompanying notes are an integral part of these financial statements
9
2012
USD
2011
USD
2012
Equivalent
VND million
Note 2(d)
2011
Equivalent
VND million
Note 2(d)
CASH FLOWS FROM INVESTING ACTIVITIES
01 Purchase of fixed assets (16,293) (392,692) (339) (8,179)
II NET CASH FLOWS FROM
INVESTING ACTIVITIES (16,293) (392,692) (339) (8,179)
IV NET CASH FLOWS DURING
THE YEAR (54,178,839) (25,282,149) (1,128,437) (526,576)
V CASH AND CASH
EQUIVALENTS AT THE
BEGINNING OF THE YEAR 112,373,954 137,656,103 2,340,525 2,606,106
VI FOREIGN EXCHANGE
TRANSLATION
DIFFERENCE - - - 260,995
VII CASH AND CASH
EQUIVALENTS AT THE END
OF THE YEAR (NOTE 24)
58,195,115 112,373,954 1,212,088 2,340,525
25 March 2013
Prepared by: Approved by:
Vu Thi Hoang Ha Ralph Wu
Head of Accounting Department General Manager
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
10
These notes form an integral part of and should be read in conjunction with, the accompanying financial
statements.
1. Reporting Entity
Chinatrust Commercial Bank, Ho Chi Minh City Branch (the “Branch”) is a foreign bank branch licensed
in Vietnam of Chinatrust Commercial Bank, incorporated in Taiwan (“the Head Office”). The principal
activities of the Branch are to carry out banking activities under Banking Licence No. 04/NHNN-GP
issued by the State Bank of Vietnam (“SBV”) on 6 February 2002. The Banking Licence is valid for 20
years from the Banking Licence date.
As at 31 December 2012, the Branch had 67 employees (31/12/2011: 64 employees).
2. Basis of preparation
(a) Statement of compliance
The financial statements have been prepared in accordance with Vietnamese Accounting Standards, the
Vietnamese Accounting System for Credit Institutions stipulated by the State Bank of Vietnam and the
relevant statutory requirements.
(b) Basis of measurement
The financial statements, except for the statement of cash flows, are prepared on the accrual basis using
the historical cost concept. The statement of cash flows is prepared using the direct method.
(c) Annual accounting period
The annual accounting period of the Branch is from 1 January to 31 December.
(d) Accounting currency
The financial statements are prepared and presented in United States Dollars (“USD”).
For the purposes of preparation of the equivalent financial statements in Vietnam Dong (“VND”), the
financial statements are translated at the rate of exchange ruling at the reporting date. Differences arising
on this translation are recorded as a movement in the capital and reserves (Note 17).
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
11
3. Summary of significant accounting policies
The following significant accounting policies have been adopted by the Branch in the preparation of these
financial statements.
(a) Foreign currency transactions
Monetary assets and liabilities denominated in currencies other than USD are translated into USD at rates
of exchange ruling at the reporting date. Transactions in currencies other than USD during the year have
been translated into USD at rates approximating those ruling on transaction dates.
All foreign exchange differences are recorded in the statement of income.
(b) Cash and cash equivalents
Cash comprises cash balances and call deposits. Cash equivalents are short-term highly liquid
investments that are readily convertible to known amount of cash, are subject to an insignificant risk of
changes in value, and are held for the purpose of meeting short-term cash commitments rather than for
investment or other purposes.
Cash and cash equivalents include cash on hand, balances with the State Bank of Vietnam, deposits with
and loans to credit institutions and valuable papers with original terms to maturity of not exceeding three
months.
(c) Loans and advances to customers and loans to credit institutions
Decision No. 493/2005/QD-NHNN dated 22 April 2005 issued by the State Bank of Vietnam (“Decision
493”), which was amended and supplemented by Decision No. 18/2007/ QD-NHNN dated 25 April 2007
issued by the State Bank of Vietnam (“Decision 18”), requires specific allowance to be made for loans
and advances on a quarterly basis based on loan groups.
The specific allowance disclosed at the reporting date (i.e. 31 December) is determined utilising the
following allowance rates against principal outstanding as at 30 November less allowed value of collateral
as follows:
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
12
Group Overdue status Allowance
rate
1 Current Current loans or overdue loans less than 10 days. 0%
2 Special
mention
Loans being overdue between 10 days to 90 days; or
Loans having rescheduled terms of repayments for the first time (if customers
are assessed as being capable of repaying both principal and interest according
to the first revised terms of repayments for the case of enterprises and
organisational customers).
5%
3 Sub-
standard
Loans being overdue between 91 days and 180 days;
Loans having rescheduled terms of repayments for the first time except for the
loans with revised terms of repayments classified into the above mentioned
Group 2; or
Loans having exempt or reduced interest because customers are not able to
pay the interest according to contracts.
20%
4 Doubtful
Loans being overdue between 181 days and 360 days;
Loans having rescheduled terms of repayments for the first time and being
overdue less than 90 days according to the first rescheduled terms of
repayments; or
Loans having rescheduled terms of repayments for the second time.
50%
5 Loss
Loans being overdue more than 360 days;
Loans having rescheduled terms of repayments for the first time and being
overdue from 90 days or more according to the first rescheduled terms of
repayments;
Loans having rescheduled terms of repayments for the second time and being
overdue according to the second reschedule terms of repayments;
Loans having rescheduled terms of repayments for the third time; or
Blocked loans, or loans awaiting for settlements.
100%
Effective from 23 April 2012, the Branch adopted Decision No.780/QD-NHNN dated 23 April 2012
issued by State Bank of Vietnam (“Decision 780”) regarding the classification of loans being rescheduled
or having the repayment terms extended under which such loans are classified in the same loan groups as
before rescheduling or having the repayment terms extended if the borrower are assessed as having
positive business potential and ability to repay well these loans. This new accounting policy has been
applied by the Branch prospectively.
The adoption of Decision 780 did not have any effect to the Branch’s allowance for loans and advances to
customers as at 31 December 2012 and net profit for the year ended 31 December 2012 because of the
nature of the Branch’s loans to customers.
In addition, the Branch is required to make a general allowance of 0.75% of outstanding loans that are
classified from Group 1 to Group 4 as at 30 November. Such general allowance is required to be made in
full within 5 years from the effective date of Decision 493. As at 31 December 2012, the Branch provided
a general allowance of 0.75% of the above balances as at 30 November 2012 (31 December 2011: 0.76%
of the above balances as at 30 November 2011).
In accordance with the requirements Decision 493, loans and advances to customers are written-off
against allowance when loans and advances to customers have been classified to Group 5 or when
borrowers have declared bankruptcy or dissolved (for borrowers being organisations, enterprises) or
borrowers have been dead or missing (for borrowers being individuals).
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
13
(d) Provision for off-balance sheet commitments
In accordance with Decision 18, the Branch is also required to classify guarantees, acceptances and loan
commitments which are irrevocable and unconditional into relevant groups and make specific provisions
accordingly.
In addition, the Branch is required to make a general provision for outstanding guarantees, letters of credit
and loan commitments which are irrevocable and unconditional as at the reporting date. As at 31
December 2012, the Branch provided a general provision of 1.52% of the above balances as at 30
November 2012 (31 December 2011: 1.11% of the above balances as at 30 November 2011).
(e) Investment securities
(i) Classification
Available-for-sale investment securities are debt securities which are acquired for an indefinite period and
may be sold at any time (available-for-sale securities).
Held-to-maturity investment securities are debt securities with fixed or determinable payment and fixed
maturities where the Bank's management has the positive intention and ability to hold until maturity
(held-to-maturity securities).
(ii) Recognition
The Branch recognises the available-for-sale securities and held-to-maturity securities and on the date it
becomes a party to the contractual provisions of these securities (trade date accounting).
(iii) Measurement
Available-for-sale debt securities and held-to-maturity securities are initially stated at cost at the
acquisition date. They are subsequently measured at cost less allowance for diminution in value.
Allowance for diminution in value is made when the carrying value is higher than the market value. In
case that fair values or market prices of these securities are not available or cannot be determined reliably,
no allowance for diminution in value of these securities is made.
Premiums and discounts arising from purchases of available-for-sale debt securities and held-to-maturity
securities are amortised to the statement of income using effective interest rate method over the period
from the acquisition dates to maturity dates.
Post-acquisition interest income of available-for-sale debt securities and held-to maturity securities is
recognised in the statement of income on an accrual basis.
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
14
The allowance for diminution in the value of available-for-sale debt securities and held-to-maturity
securities as mentioned above is reversed if the subsequent increase in recoverable amount can be related
objectively to an event occurring after the allowance was recognised. An allowance is reversed only to
the extent that the investment’s carrying amount does not exceed the carrying amount that would have
been determined if no allowance had been recognised.
(iv) Derecognition
Available-for-sale securities and held-to-maturity securities are derecognised when the rights to receive
cash flows from the investments have expired or the Bank has transferred substantially all risks and
rewards of ownership.
(f) Tangible fixed assets
(i) Cost
Tangible fixed assets are stated at cost less accumulated depreciation. The initial cost of a tangible fixed
asset comprises of its purchase price, including import duties and non-refundable purchase taxes and any
directly attributable costs of bringing the asset to its working condition and location for its intended use.
Expenditure incurred after the tangible fixed assets have been put into operation, such as repairs and
maintenance and overhaul costs, is charged to the statement of income in the year in which the costs are
incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an
increase in the future economic benefits expected to be obtained from the use of an item of tangible fixed
assets beyond its originally assessed standard of performance, the expenditure is capitalised as an
additional cost of tangible fixed assets.
(ii) Depreciation
Depreciation is computed on a straight-line basis over the estimated useful lives of items of tangible fixed
assets. The estimated useful lives are as follows:
Leasehold improvements 5 years
Office equipment 3 - 5 years
(g) Derivative financial instruments
Forward and swap currency contracts
Forward currency contracts are commitments to either purchase or sell a designated currency at a specific
future date for a specific exchange rate and are settled in cash. Swap currency contracts are commitments
to settle in cash at a future date based on differences between specified exchange rates.
Forward currency contracts and swap currency contracts are recorded at contract values in balance sheet
accounts. The differences between the currency amounts which are committed to buy/sell at contractual
exchange rate and the currency amounts translated at the spot exchange rate at effective date of the
forward currency contracts and swap currency contracts are amortised to the statement of income on a
straight-line basis over the terms of these contracts.
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
15
The positions of forward currency contracts are revalued at the spot exchange rate at reporting date and
the gains/losses are recognised in the statement of income.
(h) Other payables
Other payables are stated at their cost.
(i) Provisions
A provision, other than that as described in Note 3(d), is recognised if, as a result of a past event, the
Branch has a present legal or constructive obligation that can be estimated reliably, and it is probable that
an outflow of economic benefits will be required to settle the obligation. Provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability.
Severance allowance
Under the Vietnamese Labour Code, when employees who have worked for 12 months or more (“eligible
employees”) voluntarily terminates his/her labour contract, the employer is required to pay the eligible
employees severance allowance calculated based on years of service and employees’ compensation at
termination. Provision for severance allowance has been provided based on employees’ years of service
and their current salary level.
Pursuant to Law on Social Insurance, effective from 1 January 2009 the Branch and its employees are
required to contribute to an unemployment insurance fund managed by the Vietnam Social Insurance
Agency. The contribution to be paid by each party is calculated at 1% of the lower of the employees’
basic salary and 20 times the general minimum salary level as specified by the Government from time to
time. With the implementation of unemployment insurance scheme, the Branch is no longer required to
provide severance allowance for the service period after 1 January 2009. However, severance allowance
to be paid to the existing eligible employees as of 31 December 2008 will be determined based on the
eligible employees’ years of service as of 31 December 2008 and their average salary for the six-month
period prior to the termination date.
The unemployment insurance is recorded as part of salary and related expenses in the statement of
income.
(j) Classification of financial instruments
Solely for the purpose of providing disclosures about the significance of financial instruments to the
Branch’s financial position and results of operations and the nature and extent of risk arising from
financial instruments, the Branch classifies financial instruments as follow:
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
16
(i) Financial assets
Financial assets at fair value through profit or loss
A financial asset at fair value through profit or loss is a financial asset that meets either of the following
conditions:
It is considered by management as held for trading. A financial asset is considered as held for trading
if:
- it is acquired principally for the purpose of selling it in the near term;
- there is evidence of a recent pattern of short-term profit-taking; or
- a derivative (except for a derivative that is financial guarantee contract or a designated and
effective hedging instrument).
Upon initial recognition, it is designated by the Branch as financial asset at fair value through profit or
loss.
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and
a fixed maturity that the Branch has the positive intention and ability to hold to maturity, other than:
those that the Branch on initial recognition designates as financial assets at fair value through profit or
loss;
those that the Branch designates as available-for-sale; and
those that meet the definition of loans and receivables.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market, other than those:
that the Branch intends to sell immediately or in the near term, which are classified as held for
trading, and those that the entity on initial recognition designates as financial assets at fair value
through profit or loss;
that the Branch on initial recognition designates as available for sale; or
for which the Branch may not recover substantially all of its initial investment, other than because of
credit deterioration, which are classified as available-for-sale.
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
17
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are designated as available for
sale or that are not classified as:
financial assets at fair value through profit or loss;
held-to-maturity investments; or
loans and receivables.
(ii) Financial liabilities
Financial liabilities at fair value through profit or loss
A financial liability at fair value through profit or loss is a financial liability that meets either of the
following conditions:
It is considered by management as held for trading. A financial liability is considered as held for
trading if:
- it is incurred principally for the purpose of repurchasing it in the near term;
- there is evidence of a recent pattern of short-term profit-taking; or
- a derivative (except for a derivative that is financial guarantee contract or a designated and
effective hedging instrument).
Upon initial recognition it is designated by the Branch as financial liability at fair value through profit
or loss.
Financial liabilities carried at amortised cost
Financial liabilities which are not classified as financial liabilities at fair value through profit or loss are
classified as financial liabilities carried at amortised cost.
The above described classification of financial instruments is solely for presentation and disclosure
purpose and is not intended to be a description of how the instruments are measured. Accounting policies
for measurement of financial instruments are disclosed in other relevant notes.
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
18
(k) Taxation
Income tax on the profit or loss for the year comprises of current and deferred tax. Income tax is
recognised in the statement of income except to the extent that it relates to items recognised directly to
equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted at the
reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts
used for taxation purposes. The amount of deferred tax provided is based on the expected manner of
realisation or settlement of the carrying amount of assets and liabilities using tax rates enacted or
substantively enacted as at the reporting date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be
available against which the temporary difference can be utilised. Deferred tax assets are reduced to the
extent that it is no longer probable that the related tax benefit will be realised.
(l) Allocated capital
Allocated capital is classified as equity.
(m) Reserves
According to Decree No. 57/2012/ND-CP dated 20 July 2012 issued by the Government of Vietnam, the
Branch is required to make the following allocations before distribution of profits:
Annual allocation Maximum balance
Reserve to supplement allocated capital : 5% of profit after tax Allocated capital
Financial reserve : 10% of profit after tax 25% allocated capital
The purpose of the financial reserve is to cover losses incurred during the normal course of business. This
reserve and the reserve to supplement allocated capital are required by law and are non-distributable.
(n) Revenue
(i) Interest income
Interest income is recognised in the statement of income on an accrual basis, except for interest on loans
classified in Group 2 to Group 5 as defined in Note 3(c) which is recognised upon receipt.
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
19
(ii) Fee and commission income
Fees and commissions are recognised in the statement of income when earned.
(o) Interest expense
Interest expense is recognised in the statement of income on an accrual basis.
(p) Fee and commission expenses
Fee and commission expenses are recognised in the statement of income when incurred.
(q) Operating lease payments
Payments made under operating leases are recognised in the statement of income on a straight-line basis
over the term of the lease. Lease incentives received are recognised in the statement of income as an
integral part of the total lease expense.
(r) Off-balance sheet items
Commitments and contingent liabilities
From time to time, the Branch has outstanding commitments to extend credit. These commitments take
the form of approved loans and overdraft facilities. The Branch also provides financial guarantees and
letters of credit to guarantee the performance of customers to third parties. The contingent liabilities and
commitments may expire without being advanced in whole or in part. Therefore the amounts do not
represent a firm commitment of future cash flows.
(s) Nil balances
Items or balances required by the Decision No. 16/2007/QD-NHNN dated 18 April 2007 issued by the
Governor of the State Bank of Vietnam on promulgation of financial statement reporting for credit
institutions that are not shown in these financial statements indicate nil balances.
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
20
4. Cash on hand
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Cash on hand in VND 605,669 255,891 12,615 5,330
Cash on hand in USD 409,294 295,889 8,525 6,162
1,014,963 551,780 21,140 11,492
Cash at 31 December 2012 included amounts denominated in currencies other than VND amounting to
USD409,294 (31/12/2011: USD295,889).
5. Balances with the State Bank of Vietnam
These consist of a compulsory reserve for liquidity and a current account.
Under the State Bank of Vietnam’s regulations relating to the compulsory reserve, banks are permitted to
maintain a floating balance for the compulsory reserve requirement (“CRR”). The monthly average
balance of the reserve must not be less than CRR rates multiply with preceding month’s average balances
of deposits in scope as follows:
Deposits in scope CRR rates
31/12/2012 31/12/2011
Preceding month's average balances of:
Deposits in foreign currencies with term of less than 12 months 8% 8%
Deposits in foreign currencies with term of and more than 12 months 6% 6%
Deposits in VND with term of less than 12 months 3% 3%
Deposits in VND with term of and more than 12 months 1% 1%
Deposits in foreign currencies from overseas banks 1% 1%
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Compulsory reserve and current account 11,225,631 13,639,375 233,807 284,081
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
21
Effective year-end annual interest rates are as follows:
31/12/2012 31/12/2011
Deposits in VND
Within the compulsory reserve requirement 1.20% 1.20%
Exceeding the compulsory reserve requirement 0% 0%
Deposits in USD
Within the compulsory reserve requirement 0% 0%
Exceeding the compulsory reserve requirement 0.05% 0.05%
6. Deposits with and loans to credit institutions
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Current accounts
Current accounts in VND 390,039 333,403 8,124 6,944
Current accounts in foreign currencies 15,884,053 3,373,307 330,833 70,259
Term deposits
Term deposits in VND - 42,922,988 - 894,000
Term deposits in foreign currencies 43,000,000 51,553,101 895,604 1,073,748
Loans to credit institutions
Loans in VND
6,006,169 3,396,491 125,097 70,742
Loans in foreign currencies
- 5,000,000 - 104,140
65,280,261 106,579,290 1,359,658 2,219,833
Effective year-end annual interest rates are as follows:
31/12/2012 31/12/2011
Current accounts in VND 0.24% - 0.50% 3.00%
Current accounts in foreign currencies 0.02% - 0.10% 0.10% - 0.60%
Term deposits in VND - 11.00% - 13.50%
Term deposits in foreign currencies 0.30% - 0.97% 0.20% - 0.57%
Loans in VND 5.50% - 8.00% 16.65%
Loans in foreign currencies - 2.56%
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
22
7. Allowance for loans to credit institutions
Allowance for loans to credit institutions consist of:
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
General allowance 150,000 - 3,124 -
Movements in general allowance for loans to credit institutions were as follows:
2012
USD
2011
USD
2012
Equivalent
VND million
2011
Equivalent
VND million
Note 2(d) Note 2(d)
Opening balance - - - -
Transfer from allowance for loans and
advances to customers (Note 9) 150,000 - 3,124 -
Closing balance 150,000 - 3,124 -
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
23
8. Loans and advances to customers
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Loans to local corporates and individuals 224,115,911 292,921,762 4,667,886 6,100,974
Bills bought or valuable papers discounted 2,979,683 2,900,699 62,061 60,416
227,095,594 295,822,461 4,729,947 6,161,390
Loan portfolio by loan group were as follows:
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million Note 2(d) Note 2(d)
Group 1 - Current 227,095,594 295,822,461 4,729,947 6,161,390
Loan portfolio by term were as follows:
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Short term 159,014,273 210,957,874 3,311,949 4,393,830
Medium term 47,637,292 53,915,066 992,190 1,122,943
Long term 20,444,029 30,949,521 425,808 644,617
227,095,594 295,822,461 4,729,947 6,161,390
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
24
Loan portfolio by industry sectors were as follows:
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Agriculture, forestry and aquatics 20,417,526 12,703,501 425,256 264,589
Processing and manufacturing 172,351,190 231,616,947 3,589,731 4,824,117
Electricity, oil and gas supplying 22,861,543 39,593,852 476,160 824,661
Real estate 11,225,274 11,908,161 233,800 248,023
Construction 240,061 - 5,000 -
227,095,594 295,822,461 4,729,947 6,161,390
Loan portfolio by type of borrower were as follows:
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
State owned enterprises 26,265,603 35,258,965 547,060 734,374
Foreign invested companies 184,643,229 241,007,964 3,845,749 5,019,714
Joint venture companies 9,277,000 13,576,160 193,221 282,764
Limited liability companies 6,909,762 5,979,372 143,917 124,538
227,095,594 295,822,461 4,729,947 6,161,390
Effective year-end annual interest rates were as follows:
31/12/2012 31/12/2011
Loans and advances in VND 7.47% - 14.27% 5.00% - 19.50%
Loans and advances in foreign currencies 1.50% - 6.60% 1.79% - 6.60%
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
25
9. Allowance for loans and advances to customers
Allowance for loans and advances to customers consist of:
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
General allowance 1,728,805 2,362,841 36,008 49,213
Movements in general allowance for loans and advances to customers were as follows:
2012
USD
2011
USD
2012
Equivalent
VND million
2011
Equivalent
VND million
Note 2(d) Note 2(d)
Opening balance 2,362,841 2,158,555 49,213 40,866
Allowance made during the year - 204,286 - 4,255
Transfer to allowance for loans to credit
institutions (Note 7) (150,000) - (3,124) -
Provision reversed during the year (484,036) - (10,081) -
Foreign exchange translation differences - - - 4,092
Closing balance 1,728,805 2,362,841 36,008 49,213
As at 31 December 2012 and 2011, there were no specific allowance for loans and advances to customers
and no specific allowance for loans and advances to customers was made for the years then ended.
10. Investment securities
The held-to-maturity government bonds have a coupon rate of 12.3% per annum and a term to maturity of
3 years from 20 June 2012 to 20 June 2014 and are pledged with the SBV.
The available-for-sales government bonds have coupon rates from 9.3% to 12.3% per annum and a term
to maturity from 2 to 3 years.
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
26
11. Tangible fixed assets
2012 Leasehold
improvements
USD
Office
equipment
USD
Total
USD
Cost
Opening balance 365,596 485,656 851,252
Additions - 16,293 16,293
Closing balance 365,596 501,949 867,545
Closing balance - Equivalent VND million
(Note 2(d)) 7,615 10,454 18,069
Accumulated depreciation
Opening balance 11,481 369,201 380,682
Charge for the year 73,119 49,087 122,206
Closing balance 84,600 418,288 502,888
Closing balance - Equivalent VND million
(Note 2(d)) 1,762 8,712 10,474
Net book value
Opening balance 354,115 116,455 470,570
Closing balance 280,996 83,661 364,657
Closing balance - Equivalent VND million
(Note 2(d)) 5,853 1,742 7,595
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
27
11. Tangible fixed assets (continued)
2011 Leasehold
improvements
USD
Office
equipment
USD
Total
USD
Cost
Opening balance 206,310 490,157 696,467
Additions 365,596 27,096 392,692
Disposals (206,310) (31,597) (237,907)
Closing balance 365,596 485,656 851,252
Closing balance - Equivalent VND million
(Note 2(d)) 7,615 10,115 17,730
Accumulated depreciation
Opening balance 143,003 346,690 489,693
Charge for the year 45,866 53,693 99,559
Disposals (177,388) (31,182) (208,570)
Closing balance 11,481 369,201 380,682
Closing balance - Equivalent VND million
(Note 2(d)) 239 7,690 7,929
Net book value
Opening balance 63,307 143,467 206,774
Closing balance 354,115 116,455 470,570
Closing balance - Equivalent VND million
(Note 2(d)) 7,376 2,425 9,801
Included in the costs are fixed assets costing USD294,063 (31/12/2011: USD199,879), which have been
fully depreciated as of 31 December 2012, but are still in active use.
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
28
12. Receivables
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Deposit for office rental 215,912 219,976 4,497 4,582
Deductible value added tax 2,921 35,209 61 733
Other receivables 1,120 2,012 23 42
219,953 257,197 4,581 5,357
13. Deposits and borrowings from credit institutions
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Demand deposits
Demand deposits in VND 101,671 137,547 2,118 2,865
Demand deposits in foreign currencies 240,782 59,565 5,015 1,240
Borrowings
Borrowings in VND - 1,440,369 - 30,000
Borrowings in USD 82,653,126 151,584,441 1,721,499 3,157,201
82,995,579 153,221,922 1,728,632 3,191,306
Effective year-end annual interest rates were as follows:
31/12/2012 31/12/2011
Demand deposits in VND 0.50% 0.50%
Demand deposits in foreign currencies 0.05% 0.05%
Borrowings in VND - 10.50%
Borrowings in USD 0.14% - 3.20% 0.25% - 3.20%
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
29
14. Deposits from customers
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Current accounts
Current accounts in VND 26,952,305 30,043,518 561,363 625,746
Current accounts in foreign currencies 43,913,427 40,943,828 914,629 852,778
Term deposits
Term deposits in VND 35,560,705 51,386,623 740,658 1,070,281
Term deposits in foreign currencies 61,484,457 57,282,182 1,280,598 1,193,073
167,910,894 179,656,151 3,497,248 3,741,878
Deposits from customers by type of customers were as follows:
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Economic entities 135,117,268 155,928,541 2,814,222 3,247,679
Individuals 32,793,626 23,727,610 683,026 494,199
167,910,894 179,656,151 3,497,248 3,741,878
Effective year-end annual interest rates were as follows:
31/12/2012 31/12/2011
Current accounts in VND 0.50% 0.50%
Current accounts in foreign currencies 0.05% 0.05%
Term deposits in VND 1.20% - 11.90% 6.00% - 13.50%
Term deposits in foreign currencies 0.15% - 1.50% 0.40% - 2.00%
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
30
15. Other liabilities
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Management fees payable to the Head Office 1,309,705 1,800,440 27,279 37,500
Taxes payable (i) 576,704 433,398 12,012 9,027
Payable to employees 301,282 366,232 6,275 7,628
Provision for severance allowance (ii) 58,261 80,400 1,213 1,675
Remittance payables 688,266 68,672 14,335 1,430
Other payables 102,208 80,642 2,129 1,679
3,036,426 2,829,784 63,243 58,939
(i) Taxes payable:
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Corporate income tax 491,027 395,632 10,227 8,240
Value added tax 13,408 12,049 279 251
Personal income tax 51,878 - 1,081 -
Withholding tax 20,391 25,717 425 536
576,704 433,398 12,012 9,027
(ii) Movements in provision for severance allowance were as follows:
2012
USD
2011
USD
2012
Equivalent
VND million
2011
Equivalent
VND million
Note 2(d) Note 2(d)
Opening balance 80,400 72,128 1,675 1,366
Provision made during the year 58,261 11,730 1,212 244
Provision used during the year (19,121) (3,458) (398) (72)
Transferred to other income (Note 21) (61,279) - (1,276) -
Foreign exchange translation differences - - - 137
Closing balance 58,261 80,400 1,213 1,675
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
31
16. Provision for off-balance sheet commitments
Movements in provision for off-balance sheet commitments were as follows:
2012
USD
2011
USD
2012
Equivalent
VND million
2011
Equivalent
VND million
Note 2(d) Note 2(d)
Opening balance 540,527 705,983 11,258 13,366
Provision reversed during the year - (165,456) - (3,446)
Foreign exchange translation differences - - - 1,338
Closing balance 540,527 540,527 11,258 11,258
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
32
17. Capital and reserves
Statement of changes in equity
Allocated
capital
Reserve to
supplement
allocated
capital
Financial
reserve
Retained
profits Total
USD USD USD USD USD
Balance at 1 January 2011 50,000,000 1,059,034 2,072,741 17,703,581 70,835,356
Net profit for the year - - - 8,815,529 8,815,529
Transfer to reserves - 440,776 881,553 (1,322,329) -
Balance at 1 January 2012 50,000,000 1,499,810 2,954,294 25,196,781 79,650,885
Net profit for the year - - - 5,456,510 5,456,510
Transfer to reserves - 272,826 545,651 (818,477) -
Balance at 31 December
2012 50,000,000 1,772,636 3,499,945 29,834,814 85,107,395
Equivalent VND million (Note 2(d))
Balance at 1 January 2011 946,600 20,050 39,241 335,165 1,341,056
Net profit for the year - - - 183,610 183,610
Transfer to reserves - 9,181 18,360 (27,541) -
Foreign exchange
translation difference
94,800
2,008
3,930
33,565
134,303
Balance at 1 January 2012 1,041,400 31,239 61,531 524,799 1,658,969
Net profit for the year - - - 113,648 113,648
Transfer to reserves - 5,682 11,365 (17,047) -
Balance at 31 December
2012 1,041,400 36,921 72,896 621,400 1,772,617
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
33
Allocated capital
As at 31 December 2012 and 2011, the Branch’s investor and its contributed capital were as follows:
Allocated capital
USD
Equivalent
VND million
Ownership
%
Note 2(d)
Chinatrust Commercial Bank 50,000,000 1,041,400 100%
The parent bank, Chinatrust Commercial Bank and its ultimate parent company, Chinatrust Financial
Holding Co., Ltd are incorporated in Taiwan.
18. Net interest income
2012
USD
2011
USD
2012
Equivalent
VND million
2011
Equivalent
VND million
Note 2(d) Note 2(d)
Interest and similar income
From deposits with and loans to credit
institutions 2,396,571 6,074,696 49,916 126,523
From loans and advances to customers 11,640,709 16,895,554 242,453 351,901
From investment securities 1,514,413 67,973 31,542 1,416
15,551,693 23,038,223 323,911 479,840
Interest and similar expenses
On deposits and borrowings from credit
institutions (1,075,665) (2,179,553) (22,404) (45,396)
On deposits from customers (4,280,518) (6,096,625) (89,155) (126,980)
(5,356,183) (8,276,178) (111,559) (172,376)
Net interest income 10,195,510 14,762,045 212,352 307,464
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
34
19. Net fee and commission income
2012
USD
2011
USD
2012
Equivalent
VND million
2011
Equivalent
VND million
Note 2(d) Note 2(d)
Fee and commission income
Guarantees 74,202 485,766 1,545 10,118
Settlement and cash services 841,437 996,500 17,525 20,755
Trade finance services 496,162 595,512 10,335 12,403
1,411,801 2,077,778 29,405 43,276
Fee and commission expenses
Settlement and cash services (219,904) (186,201) (4,580) (3,878)
Net fee and commission income 1,191,897 1,891,577 24,825 39,398
20. Net gain from trading of foreign currencies
2012
USD
2011
USD
2012
Equivalent
VND million
2011
Equivalent
VND million
Note 2(d) Note 2(d)
Gain from foreign exchange contracts 38,157,518 289,794,583 794,744 6,035,842
Loss from foreign exchange contracts (37,346,334) (288,497,102) (777,849) (6,008,818)
811,184 1,297,481 16,895 27,024
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
35
21. Other income/(expense) - net
2012
USD
2011
USD
2012
Equivalent
VND million
2011
Equivalent
VND million
Note 2(d) Note 2(d)
Other income
Transferred from severance allowance
(Note 15(ii)) 61,279 - 1,276 -
Reversal of general allowance for loans
and advances to customers 484,036 - 10,082 -
Others 377 447 8 9
545,692 447 11,366 9
Other expenses
Other expenses - (48,948) - (1,019)
Other income/(expense) - net 545,692 (48,501) 11,366 (1,010)
22. Operating expenses
2012
USD
2011
USD
2012
Equivalent
VND million
2011
Equivalent
VND million Note 2(d) Note 2(d)
Salaries and related expenses 2,254,270 2,110,217 46,952 43,952
Management fees from the Head Office 1,319,366 1,928,769 27,480 40,172
Office rental 1,188,238 1,048,974 24,749 21,848
Tax, duties and fees 187,583 429,231 3,907 8,940
Telecommunication expenses 122,238 127,450 2,546 2,655
Depreciation of fixed assets 122,206 99,559 2,545 2,074
Tools and equipment expenses 38,541 48,447 803 1,009
Others 287,387 330,597 5,985 6,885
5,519,829 6,123,244 114,967 127,535
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
36
23. Income tax
(a) Recognised in the statement of income
2012
USD
2011
USD
2012
Equivalent
VND million
2011
Equivalent
VND million Note 2(d) Note 2(d)
Current tax expense
Current year 1,767,944 2,925,000 36,823 60,922
Deferred tax expense - - - -
Income tax expenses 1,767,944 2,925,000 36,823 60,922
(b) Reconciliation of effective tax rate
2012
USD
2011
USD
2012
Equivalent
VND million
2011
Equivalent
VND million
Note 2(d) Note 2(d)
Profit before tax 7,224,454 11,740,529 150,471 244,532
Tax at the Branch’s tax rate 1,806,114 2,935,132 37,618 61,133
Non-deductible expenses 22,384 146,098 466 3,043
Deferred tax liabilities/(assets) previously
unrecognised 33,078 (156,230) 689 (3,254)
Over provision in prior years (93,632) - (1,950) -
1,767,944 2,925,000 36,823 60,922
(c) Applicable tax rate
The Branch has an obligation to pay the government income tax at the rate of 25% of taxable profit. The
income tax computation is subject to the review and approval of the tax authorities.
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
37
24. Cash and cash equivalents
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million Note 2(d) Note 2(d)
Cash on hand 1,014,963 551,780 21,140 11,492
Balances with the State Bank of Vietnam 11,225,631 13,639,375 233,807 284,081
Deposits with and loans to other credit
institutions with original terms of not
exceeding three months 45,954,521 98,182,799 957,141 2,044,952
58,195,115 112,373,954 1,212,088 2,340,525
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
38
25. Significant transactions with related parties
In the normal course of banking business, the Branch carries out transactions with related parties, mainly
with the Head Office and other entities within the Group.
As at the year-end and during the year, there were the following significant balances and transactions with
related parties:
2012
USD
2011
USD
2012
Equivalent
VND million
2011
Equivalent
VND million
Note 2(d) Note 2(d)
Transactions
Chinatrust Commercial
Bank, Head Office
Interest income 117,841 234,167 2,454 4,877
Interest expenses 360,630 844,975 7,511 17,599
Management fee
expense 1,319,366
1,928,769 27,480
40,172
Chinatrust Commercial
Bank, Hong Kong Interest expense 167,000 409,270 3,478 8,524
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Balances
Chinatrust Commercial
Bank, Head Office
Deposits 43,000,000 23,553,102 895,604 490,564
Borrowings 24,367,410 78,441,584 507,524 1,633,781
Management
fee payables 1,309,705
1,800,440 27,279
37,500
Chinatrust Commercial
Bank, Hong Kong Borrowings 4,285,716 7,142,858 89,263 148,771
Chinatrust Bank, USA Current accounts - 60,779 - 1,266
Chinatrust Commercial
Bank, Singapore Current accounts 2,442 5,429 51 113
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
39
26. Concentration of assets, liabilities and off-balance sheet commitments by
geographical area
As at 31 December 2012
Total loan
balances
Total deposit
balances
Credit
commitments
USD USD USD
Domestic 231,421,334 222,046,645 27,585,731
Overseas - 28,859,828 -
231,421,334 250,906,473 27,585,731
Equivalent VND million (Note 2(d))
Domestic 4,820,044 4,624,788 574,556
Overseas - 601,092 -
4,820,044 5,225,880 574,556
As at 31 December 2011
Total loan
balances
Total deposit
balances
Credit
commitments
USD USD USD
Domestic 304,218,952 247,247,033 44,224,105
Overseas - 85,631,040 -
304,218,952 332,878,073 44,224,105
Equivalent VND million (Note 2(d))
Domestic 6,336,272 5,149,661 921,100
Overseas - 1,783,523 -
6,336,272 6,933,184 921,100
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
40
27. Employees’ benefits
2012 2011 2012 2011
USD
USD
Equivalent
VND million
Equivalent
VND million
Note 2(d) Note 2(d)
Total number of employees 67 64 67 64
Employees’ remunerations
1. Salaries 1,459,175 1,417,597 30,392 29,526
2. Bonus 412,813 414,376 8,598 8,631
3. Others 382,282 278,244 7,962 5,795
4. Total (1+2+3) 2,254,270 2,110,217 46,952 43,952
Average annual salary 21,779 22,150 454 461
Average annual remunerations 33,646 32,972 701 687
28. Obligation to State Budget
2012 Opening
balance
Movements Closing
balance Incurred Paid
USD USD USD USD
Corporate income tax 395,632 1,767,944 1,672,549 491,027
Value added tax 12,049 107,741 106,382 13,408
Personal income tax - 595,641 543,763 51,878
Withholding tax 25,717 61,677 67,003 20,391
433,398 2,533,003 2,389,697 576,704
Equivalent VND million (Note 2(d))
Corporate income tax 8,240 36,823 34,836 10,227
Value added tax 251 2,244 2,216 279
Personal income tax - 12,406 11,325 1,081
Withholding tax 536 1,285 1,396 425
9,027 52,758 49,773 12,012
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
41
2011 Opening
balance
Movements Closing
balance Incurred Paid
USD USD USD USD
Corporate income tax 521,819 2,925,000 3,051,187 395,632
Value added tax 14,393 146,408 148,752 12,049
Personal income tax 278 667,531 667,809 -
Withholding tax 25,538 160,860 160,681 25,717
562,028 3,899,799 4,028,429 433,398
Opening
balance
Movements Foreign
exchange
translation
difference
Closing
balance Incurred Paid
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d)
Corporate income tax 9,880 60,922 63,550 988 8,240
Value added tax 272 3,049 3,098 28 251
Personal income tax 5 13,903 13,909 1 -
Withholding tax 483 3,350 3,347 50 536
10,640 81,224 83,904 1,067 9,027
29. Type and value of collateral from customers
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Cash, notes, deposit accounts 13,345,915 32,741,414 277,969 681,938
Real estate 59,825,851 22,431,306 1,246,053 467,199
Movable assets 67,493,182 48,943,561 1,405,748 1,019,396
140,664,948 104,116,281 2,929,770 2,168,533
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
42
30. Contingent liabilities and commitments issued
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Guarantees 7,408,873 6,144,069 154,312 127,969
L/C commitments 15,176,858 38,080,036 316,104 793,131
Undrawn loan commitments 5,000,000 - 104,140 -
27,585,731 44,224,105 574,556 921,100
Less: Marginal deposits - - - -
27,585,731 44,224,105 574,556 921,100
31. Financial instruments
(a) Financial risk management
Overview
The Branch has exposure to the following risks from its use of financial instruments:
credit risk;
liquidity risk; and
market risk.
This note presents information about the Branch’s exposure to each of the above risks, the Branch’s
objectives, policies and processes for measuring and managing risk.
The Branch’s Management oversees how management monitors compliance with the Branch’s risk
management policies and procedures, and reviews the adequacy of the risk management framework in
relation to the risks faced by the Branch.
(b) Credit risk
Credit risk is the risk of financial loss to the Branch if a customer or counterparty to a financial instrument
fails to meet its contractual obligations.
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
43
Management of credit risk
Limit Setting & Risk Concentration Management:
The Branch manages credit risk by lending to a diverse base of corporate customers in various
industry and geographic sectors. The Branch is able to assign credit risk limits based upon credit
history and industry information as well as balance exposure to country risk to prevent concentration
risk.
Internal Rating System:
In order to monitor and evaluate credit risk properly, the Branch implemented advanced internal
rating systems, which helps to differentiate and categorise different credit risks. The Branch’s
internal rating system measures the financial as well as the non-financial aspects of each borrower and
examines the impact of external economic or industry changes on each borrower before it determines
each borrower’s credit rating.
Credit Officer Mechanism:
Coupled with rating system, the Branch’s Credit Officer Mechanism is also the foundation of a risk-
based organization. Full credit approval of individual credit transactions must be given by at least
two credit officers. They must independently approve or decline each credit request according to their
respective delegated authorities. The Branch keeps credit officers’ compensation and performance
evaluations separate from sales and marketing divisions in order to ensure the officers’ independence.
Basel II Compliance:
Currently, the Branch is in the process of implementing IRB approach of Basel II Accord, which
equips the Branch with proactive framework of credit risk measurement and management. Not only
does the implementation comply with the incoming regulatory capital requirement, but IRB approach
is also applied to regular business operations.
Credit Information:
To prevent severe credit events, the Branch takes advantage of abundant default data from Vietnam’s
Credit Information Center (CIC), which holds all credit information among companies and
individuals in Vietnam. Exploited by the risk control units, the acquired data further facilitate the
Branch’s internal risk measurement and control by effectively scrutinizing customer-level line of
credit management, solvency of secured loan borrowers as well as value changes of collaterals.
Core Credit Policy:
The core credit policy is drawn up for governing the lending business of the Branch. It shall serve as
the highest principles for all relative departments to set up related guidelines and working manuals for
maintaining the quality of lending assets. The contents include: The principle of portfolio
management, customer level credit line management, credit product program management, credit risk
measurement, loan review management, impaired asset management, credit transaction delegation,
and compliance with laws and regulations etc.
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
44
Portfolio Monitoring:
For monitoring asset quality, the credit risk management units keep track of portfolio structure and
development of all credit products and submit related credit reports to relevant management level(s)
periodically. Those reports include: Credit portfolio review reports, relevant model validation reports
and country risk exposure report, etc.
Stress Testing:
In order to control the extreme credit risk during economic downturns, the Branch stress tests its
portfolio. We assume several economic scenarios and evaluate the impacts of portfolio structure and
credit loss. Stress testing will be included as a part of limit setting management.
Collateral
The amount and type of collateral required depends on an assessment of the credit risk of the
counterparty. Guidelines are implemented regarding the acceptability of types of collateral and valuation
parameters. The main types of collateral obtained are as cash, real estate properties, machinery and
equipments. Management monitors the market value of collateral, requests additional collateral in
accordance with the underlying agreement, and monitors the market value of collateral obtained during its
review of the adequacy of the allowance for impairment losses.
Commitments and guarantees
To meet the financial needs of customers, the Branch enters into various irrevocable commitments and
contingent liabilities. Even though these obligations may not be recognised on the balance sheet, they do
contain credit risk and are therefore part of the overall risk of the Branch.
Exposure to credit risk
As at 31 December 2012, the Branch’s credit risk arises principally from the Branch’s credit facilities to
customers, off - balance sheet commitments, balances and loans with credit institutions.
The Branch’s concentrations of risk are managed by client, by geographical region and by industry sector.
Not considering collateral assets, the Branch’s maximum exposure to credit risk as at 31 December 2012
and 2011 were as follows:
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
45
As at 31 December 2012
USD
Equivalent
VND million Note 2(d)
Loans and receivables
Balances with the State Bank of Vietnam 11,225,631 233,807
Deposits with and loans to credit institutions - gross 65,280,261 1,359,658
Loans and advances to customers - gross 227,095,594 4,729,947
Accrued interest and fees receivable 2,636,470 54,912
Receivables 217,032 4,520
306,454,988 6,382,844
Investment securities
Available-for-sales investment securities 33,782,072 703,613
Held-to-maturity investment securities 968,494 20,172
341,205,554 7,106,629
Off-balance sheet commitments
Guarantees 7,408,873 154,312
L/C commitments 15,176,858 316,104
Undrawn loan commitments 5,000,000 104,140
368,791,285 7,681,185
As at 31 December 2011
USD
Equivalent
VND million Note 2(d)
Loans and receivables
Balances with the State Bank of Vietnam 13,639,375 284,081
Deposits with and loans to credit institutions - gross 106,579,290 2,219,833
Loans and advances to customers - gross 295,822,461 6,161,390
Accrued interest and fees receivable 1,676,778 34,924
Receivables 221,988 4,624
417,939,892 8,704,852
Held-to-maturity investments
Held-to-maturity investment securities 717,284 14,940
418,657,176 8,719,792
Off-balance sheet commitments
Guarantees 6,144,069 127,969
L/C commitments 38,080,036 793,131
462,881,281 9,640,892
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
46
An analysis of collateral against of financial assets which are neither past due nor impaired at 31
December 2012 and 2011 were as follows:
As at 31 December 2012 Secured Unsecured Total
USD USD USD
Loans and receivables Balances with the State Bank of Vietnam - 11,225,631 11,225,631 Deposits with and loans to credit institutions - gross - 65,280,261 65,280,261 Loans and advances to customers - gross 15,002,965 212,092,629 227,095,594 Accrued interest and fees receivable - 2,636,470 2,636,470 Receivables - 217,032 217,032
15,002,965 291,452,023 306,454,988
Investment securities Available-for-sales investment securities - 33,782,072 33,782,072 Held-to-maturity investment securities - 968,494 968,494
15,002,965 326,202,589 341,205,554
Off-balance sheet commitments Guarantees - 7,408,873 7,408,873 L/C commitments - 15,176,858 15,176,858 Undrawn loan commitments - 5,000,000 5,000,000
15,002,965 353,788,320 368,791,285
Equivalent VND million (Note 2(d))
Loans and receivables Balances with the State Bank of Vietnam - 233,807 233,807 Deposits with and loans to credit institutions - gross - 1,359,658 1,359,658 Loans and advances to customers - gross 312,482 4,417,465 4,729,947 Accrued interest and fees receivable - 54,912 54,912 Receivables - 4,520 4,520
312,482 6,070,362 6,382,844
Investment securities Available-for-sales investment securities - 703,613 703,613 Held-to-maturity investment securities - 20,172 20,172
312,482 6,794,147 7,106,629
Off-balance sheet commitments Guarantees - 154,312 154,312 L/C commitments - 316,104 316,104 Undrawn loan commitments - 104,140 104,140
312,482 7,368,703 7,681,185
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
47
As at 31 December 2011 Secured Unsecured Total
USD USD USD
Loans and receivables Balances with the State Bank of Vietnam - 13,639,375 13,639,375 Deposits with and loans to credit institutions - gross - 106,579,290 106,579,290 Loans and advances to customers - gross 10,924,392 284,898,069 295,822,461 Accrued interest and fees receivable - 1,676,778 1,676,778 Receivables - 221,988 221,988
10,924,392 407,015,500 417,939,892
Investment securities Held-to-maturity investment securities - 717,284 717,284
10,924,392 407,732,784 418,657,176
Off-balance sheet commitments Guarantees - 6,144,069 6,144,069 L/C commitments - 38,080,036 38,080,036
10,924,392 451,956,889 462,881,281
Equivalent VND million (Note 2(d))
Loans and receivables Balances with the State Bank of Vietnam - 284,081 284,081 Deposits with and loans to credit institutions - gross - 2,219,833 2,219,833 Loans and advances to customers - gross 227,533 5,933,857 6,161,390 Accrued interest and fees receivable - 34,924 34,924 Receivables - 4,624 4,624
227,533 8,477,319 8,704,852
Investment securities Held-to-maturity investment securities - 14,940 14,940
227,533 8,492,259 8,719,792
Off-balance sheet commitments Guarantees - 127,969 127,969 L/C commitments - 793,131 793,131
227,533 9,413,359 9,640,892
As at 31 December 2012 and 2011, the Branch has no impaired financial assets.
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
48
(c) Liquidity risk
Liquidity risk is the risk that the Branch will encounter difficulty in meeting obligation as they fall due.
The Branch’s approach to managing liquidity is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Branch’s reputation.
Management of liquidity risk
The Branch liquidity management policies require that:
If the amount of the transaction is significant, Treasury Department must be informed before the
transaction being processed.
Management of balance and liquidity must be established and limits are imposed.
Potential significant cash flows from foreign exchange activities must be monitored closely.
The Head Office commits to support the Branch USD200 million anytime to maintain the Branch in
good liquidity position.
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
49
As at 31 December 2012 Not yet due
Up to
1 month
From
1 month to
3 months
From
3 months to
1 year
From
1 year to
5 years
Over
5 years Total
USD USD USD USD USD USD
Assets
Cash on hand 1,014,963 - - - - 1,014,963
Balances with the SBV 11,225,631 - - - - 11,225,631
Deposits with and loans to credit institutions - gross 45,954,521 - 15,000,000 4,325,740 - 65,280,261
Loans and advances to customers - gross 28,249,620 37,017,595 98,172,540 63,655,839 - 227,095,594
Investment securities - - - 34,750,566 - 34,750,566
Fixed assets - - - 364,657 - 364,657
Other assets 2,818,328 - - 215,912 - 3,034,240
89,263,063 37,017,595 113,172,540 103,312,714 - 342,765,912
Liabilities
Deposits and borrowings from credit institutions 80,138,434 - 2,857,145 - - 82,995,579
Deposits from customers 134,389,337 12,494,912 21,026,645 - - 167,910,894
Other liabilities 4,814,978 - - 58,261 - 4,873,239
219,342,749 12,494,912 23,883,790 58,261 - 255,779,712
Net liquidity gap (130,079,686) 24,522,683 89,288,750 103,254,453 - 86,986,200
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
50
As at 31 December 2012 Not yet due
Up to
1 month
From
1 month to
3 months
From
3 months to
1 year
From
1 year to
5 years
Over
5 years Total
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Assets Cash on hand 21,140 - - - - 21,140
Balances with the SBV 233,807 - - - - 233,807
Deposits with and loans to credit institutions - gross 957,141 - 312,420 90,097 - 1,359,658
Loans and advances to customers - gross 588,383 771,002 2,044,738 1,325,824 - 4,729,947
Investment securities - - - 723,785 - 723,785
Fixed assets - - - 7,595 - 7,595
Other assets 58,700 - - 4,497 - 63,197
1,859,171 771,002 2,357,158 2,151,798 - 7,139,129
Liabilities Deposits and borrowings from credit institutions 1,669,123 - 59,509 - - 1,728,632
Deposits from customers 2,799,061 260,244 437,943 - - 3,497,248
Other liabilities 100,287 - - 1,213 - 101,500
4,568,471 260,244 497,452 1,213 - 5,327,380
Net liquidity gap (2,709,300) 510,758 1,859,706 2,150,585 - 1,811,749
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
51
As at 31 December 2011 Not yet due
Up to
1 month
From
1 month to
3 months
From
3 months to
1 year
From
1 year to
5 years
Over
5 years Total
USD USD USD USD USD USD
Assets
Cash on hand 551,780 - - - - 551,780
Balances with the SBV 13,639,375 - - - - 13,639,375
Deposits with and loans to credit institutions - gross 98,380,597 395,596 593,394 7,209,703 - 106,579,290
Loans and advances to customers - gross 37,275,216 76,378,767 120,187,131 61,981,347 - 295,822,461
Investment securities - 717,284 - - - 717,284
Fixed assets - - - 470,570 - 470,570
Other assets 1,753,369 - - 219,976 - 1,973,345
151,600,337 77,491,647 120,780,525 69,881,596 - 419,754,105
Liabilities
Deposits and borrowings from credit institutions 127,507,635 - 21,428,571 4,285,716 - 153,221,922
Deposits from customers 153,743,078 12,567,672 13,345,401 - - 179,656,151
Other liabilities 4,781,906 - - 80,400 - 4,862,306
286,032,619 12,567,672 34,773,972 4,366,116 - 337,740,379
Net liquidity gap (134,432,282) 64,923,975 86,006,553 65,515,480 - 82,013,726
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
52
As at 31 December 2011 Not yet due
Up to
1 month
From
1 month to
3 months
From
3 months to
1 year
From
1 year to
5 years
Over
5 years Total
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Assets Cash on hand 11,492 - - - - 11,492
Balances with the SBV 284,081 - - - - 284,081
Deposits with and loans to credit institutions - gross 2,049,071 8,239 12,359 150,164 - 2,219,833
Loans and advances to customers - gross 776,368 1,590,817 2,503,258 1,290,947 - 6,161,390
Investment securities - 14,940 - - - 14,940
Fixed assets - - - 9,801 - 9,801
Other assets 36,519 - - 4,582 - 41,101
3,157,531 1,613,996 2,515,617 1,455,494 - 8,742,638
Liabilities Deposits and borrowings from credit institutions 2,655,729 - 446,314 89,263 - 3,191,306
Deposits from customers 3,202,161 261,759 277,958 - - 3,741,878
Other liabilities 99,597 - - 1,675 - 101,272
5,957,487 261,759 724,272 90,938 - 7,034,456
Net liquidity gap (2,799,956) 1,352,237 1,791,345 1,364,556 - 1,708,182
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
53
(d) Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Branch’s results of operations or the value of its holdings of financial
instruments. The objective of market risk management is to manage and control market risk exposures
within acceptable parameters, while optimising the return.
Management of market risks
Position Control: only position of foreign exchange trading is allowed at the Branch. The branch is
allowed to maintain long or short position of foreign currencies in the limit of total of
positive/negative foreign currency follow Circular No. 07/2012/QD-NHNN: not exceeds 20% of
financial institution’s own capital.
The Branch is only permitted for trading under the market risk limits which are approved by the Head
Office on an annual basis.
Limit of interest rate risk of the present value per basis point (“PVBP”): On monthly basis, Back
office is responsible to prepare assets and liabilities management (“ALM”) report including of the
Branch’s assessment report of Balance sheet/Statement of income, report of foreign currency trading
department and report to the Head Office’s market risk management department for supervising.
Stop loss limit: the stop loss limit for the Branch’s foreign currency trading department which was
approved by the Head Office is USD400,000 per annum.
Exposure to market risks
As at 31 December 2012 and 2011, the Branch’s market risks are deemed to be affected by two main
components: change in foreign exchange rates and interest rates.
(i) Currency risk
Currency risk is the risk that the value or future cash flows of a financial instrument will fluctuate because
of changes in foreign exchange rates.
The Branch was incorporated and operates in Vietnam and uses USD as its reporting currency. The main
currencies in which the Branch uses are USD and VND. The Branch’s loans to customers were mainly
denominated in USD and partly in VND. However, some of the Branch’s other assets are in currencies
other than the reporting currency and VND. The Branch’s management has set limits on positions by
currency. Positions are monitored on a daily basis and hedging strategies used to ensure positions are
maintained within established limits.
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
54
As at 31 December 2012 VND USD EUR Others Total
USD USD USD USD USD
Assets
Cash on hand 605,669 409,294 - - 1,014,963
Balances with the SBV 1,554,913 9,670,718 - - 11,225,631
Deposits with and loans to credit institutions - gross 6,396,208 58,599,375 281,023 3,655 65,280,261
Loans and advances to customers - gross 27,516,173 199,173,322 86,664 319,435 227,095,594
Investment securities 34,750,566 - - - 34,750,566
Fixed assets - 364,657 - - 364,657
Other assets 2,022,648 1,010,165 369 1,058 3,034,240
72,846,177 269,227,531 368,056 324,148 342,765,912
Liabilities and owners’ equity
Deposits and borrowings from credit institutions 101,671 82,319,796 66,275 507,837 82,995,579
Deposits from customers 62,513,009 105,077,465 281,664 38,756 167,910,894
Other liabilities 1,199,366 3,673,832 28 13 4,873,239
Capital and reserves (*) - 86,986,200 - - 86,986,200
63,814,046 278,057,293 347,967 546,606 342,765,912
FX position on balance sheet 9,032,131 (8,829,762) 20,089 (222,458) -
FX position off-balance sheet - (231,455) - 231,643 188
FX position on and off-balance sheet 9,032,131 (9,061,217) 20,089 9,185 188
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
55
VND USD EUR Others Total
As at 31 December 2012 Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d)
Assets
Cash on hand 12,615 8,525 - - 21,140
Balances with the SBV 32,386 201,421 - - 233,807
Deposits with and loans to credit institutions - gross 133,221 1,220,508 5,853 76 1,359,658
Loans and advances to customers - gross 573,107 4,148,382 1,805 6,653 4,729,947
Investment securities 723,785 - - - 723,785
Fixed assets - 7,595 - - 7,595
Other assets 42,127 21,040 8 22 63,197
1,517,241 5,607,471 7,666 6,751 7,139,129
Liabilities and owners’ equity
Deposits and borrowings from credit institutions 2,118 1,714,557 1,380 10,577 1,728,632
Deposits from customers 1,302,021 2,188,553 5,867 807 3,497,248
Other liabilities 24,980 76,519 1 - 101,500
Capital and reserves (*) - 1,811,749 - - 1,811,749
1,329,119 5,791,378 7,248 11,384 7,139,129
FX position on balance sheet 188,122 (183,907) 418 (4,633) -
FX position off-balance sheet - (4,821) - 4,825 4
FX position on and off-balance sheet 188,122 (188,728) 418 192 4
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
56
As at 31 December 2011 VND USD EUR Others Total
USD USD USD USD USD
Assets
Cash on hand 255,891 295,889 - - 551,780
Balances with the SBV 5,368,743 8,270,632 - - 13,639,375
Deposits with and loans to credit institutions - gross 46,652,882 58,127,433 1,785,037 13,938 106,579,290
Loans and advances to customers - gross 33,334,387 261,179,718 - 1,308,356 295,822,461
Investment securities 717,284 - - - 717,284
Fixed assets - 470,570 - - 470,570
Other assets 750,202 1,216,021 122 7,000 1,973,345
87,079,389 329,560,263 1,785,159 1,329,294 419,754,105
Liabilities and owners’ equity
Deposits and borrowings from credit institutions 1,577,916 150,155,824 - 1,488,182 153,221,922
Deposits from customers 81,430,141 96,440,585 1,777,215 8,210 179,656,151
Other liabilities 1,280,823 3,581,234 17 232 4,862,306
Capital and reserves (*) - 82,013,726 - - 82,013,726
84,288,880 332,191,369 1,777,232 1,496,624 419,754,105
FX position on balance sheet 2,790,509 (2,631,106) 7,927 (167,330) -
FX position off-balance sheet - (180,302) - 180,304 2
FX position on and off-balance sheet 2,790,509 (2,811,408) 7,927 12,974 2
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
57
(*) The allowance for loans and advances to customers and loans to credit institutions was added back to the retained profits included in capital and reserves.
As at 31 December 2011 VND USD EUR Others Total
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d)
Assets
Cash on hand 5,330 6,162 - - 11,492
Balances with the SBV 111,820 172,261 - - 284,081
Deposits with and loans to credit institutions - gross 971,686 1,210,678 37,179 290 2,219,833
Loans and advances to customers - gross 694,289 5,439,851 - 27,250 6,161,390
Investment securities 14,940 - - - 14,940
Fixed assets - 9,801 - - 9,801
Other assets 15,625 25,327 3 146 41,101
1,813,690 6,864,080 37,182 27,686 8,742,638
Liabilities and owners’ equity
Deposits and borrowings from credit institutions 32,865 3,127,445 - 30,996 3,191,306
Deposits from customers 1,696,027 2,008,665 37,016 170 3,741,878
Other liabilities 26,677 74,590 - 5 101,272
Capital and reserves (*) - 1,708,182 - - 1,708,182
1,755,569 6,918,882 37,016 31,171 8,742,638
FX position on balance sheet 58,121 (54,802) 166 (3,485) -
FX position off-balance sheet - (3,755) - 3,755 -
FX position on and off-balance sheet 58,121 (58,557) 166 270 -
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
58
At 31 December 2012, assuming that all other variables, in particular interest rates, remain constant, had
VND strengthen or weaken against USD by 2%, the increase or decrease respectively in profit and equity
would have amounted to approximately USD132,825 (31/12/2011: 10% and USD190,261).
(ii) Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates.
The repricing period of effective interest rate is the remaining period from the reporting date to the nearest
repricing date of interest rate applicable to assets and liabilities which are subject to changes in interest
rates.
The following table shows the Branch’s assets and liabilities categorised by the earlier of contractual
repricing or maturity date at the reporting date:
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
59
As at 31 December 2012 Overdue
Free of Interest
Up to 1 month
From 1 to 3 months
From 3 to 6 months
From 6 to 12 months
From 1 to 5 years
Over 5 years Total
USD USD USD USD USD USD USD USD USD
Assets
Cash on hand - 1,014,963 - - - - - - 1,014,963
Balances with the SBV - - 11,225,631 - - - - - 11,225,631
Deposits with and loans to credit institutions
- gross - - 49,968,554 311,707 - 15,000,000 - - 65,280,261
Loans and advances to customers - gross - - 174,200,258 52,365,574 529,762 - - - 227,095,594
Investment securities - - - - - - 34,750,566 - 34,750,566
Fixed assets - 364,657 - - - - - - 364,657
Other assets - 3,034,240 - - - - - - 3,034,240
- 4,413,860 235,394,443 52,677,281 529,762 15,000,000 34,750,566 - 342,765,912
Liabilities
Deposits and borrowings from credit institutions - - 78,709,863 4,285,716 - - - - 82,995,579
Deposits from customers - - 134,389,337 12,494,912 14,398,518 6,628,127 - - 167,910,894
Other liabilities - 4,873,239 - - - - - - 4,873,239
- 4,873,239 213,099,200 16,780,628 14,398,518 6,628,127 - - 255,779,712
Interest sensitivity gap of balance sheet
items - (459,379) 22,295,243 35,896,653 (13,868,756) 8,371,873 34,750,566 - 86,986,200
Interest sensitivity gap of off-balance
sheet items - - - 5,000,000 - - - - 5,000,000
Total interest sensitivity gap - (459,379) 22,295,243 40,896,653 (13,868,756) 8,371,873 34,750,566 - 91,986,200
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
60
As at 31 December 2012
Overdue
Free of Interest
Up to 1 month
From 1 to3 months
From 3 to 6 months
From 6 to 12 months
From 1 to 5 years
Over 5 years
Total
Equivalent VND million
Equivalent VND million
Equivalent VND million
Equivalent VND million
Equivalent VND million
Equivalent VND million
Equivalent VND million
Equivalent VND million
Equivalent VND million
Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d)
Assets
Cash on hand - 21,140 - - - - - - 21,140
Balances with the SBV - - 233,807 - - - - - 233,807
Deposits with and loans to credit
institutions - gross
- - 1,040,745 6,492 - 312,421 - - 1,359,658
Loans and advances to customers - gross - - 3,628,243 1,090,670 11,034 - - - 4,729,947
Investment securities - - - - - - 723,785 - 723,785
Fixed assets - 7,595 - - - - - - 7,595
Other assets - 63,197 - - - - - - 63,197
- 91,932 4,902,795 1,097,162 11,034 312,421 723,785 - 7,139,129
Liabilities
Deposits and borrowings from credit institutions - - 1,639,369 89,263 - - - - 1,728,632
Deposits from customers - - 2,799,061 260,244 299,892 138,051 - - 3,497,248
Other liabilities - 101,500 - - - - - - 101,500
- 101,500 4,438,430 349,507 299,892 138,051 - - 5,327,380
Interest sensitivity gap of balance
sheet items - (9,568) 464,365 747,655 (288,858) 174,370 723,785 - 1,811,749
Interest sensitivity gap of off -balance
sheet items - - - 104,140 - - - - 104,140
Total interest sensitivity gap - (9,568) 464,365 851,795 (288,858) 174,370 723,785 - 1,915,889
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
61
As at 31 December 2011 Overdue Free of Interest
Up to 1 month
From 1 to 3 months
From 3 to 6 months
From 6 to 12 months
From 1 to 5 years
Over 5 years Total
USD USD USD USD USD USD USD USD USD
Assets
Cash on hand - 551,780 - - - - - - 551,780
Balances with the SBV - - 13,639,375 - - - - - 13,639,375
Deposits with and loans to credit institutions
- gross - - 101,579,290 - 5,000,000 - - - 106,579,290
Loans and advances to customers - gross - - 213,039,606 64,085,945 7,707,097 894,882 10,094,931 - 295,822,461
Investment securities - - - 717,284 - - - - 717,284
Fixed assets - 470,570 - - - - - - 470,570
Other assets - 1,973,345 - - - - - - 1,973,345
- 2,995,695 328,258,271 64,803,229 12,707,097 894,882 10,094,931 - 419,754,105
Liabilities
Deposits and borrowings from credit institutions - - 128,936,206 20,000,000 4,285,716 - - - 153,221,922
Deposits from customers - - 153,743,078 12,567,672 11,115,579 2,229,822 - - 179,656,151
Other liabilities - 4,862,306 - - - - - - 4,862,306
- 4,862,306 282,679,284 32,567,672 15,401,295 2,229,822 - - 337,740,379
Interest sensitivity gap of balance sheet
items - (1,866,611) 45,578,987 32,235,557 (2,694,198) (1,334,940) 10,094,931 - 82,013,726
Interest sensitivity gap of off-balance
sheet items - - - - - - - - -
Total interest sensitivity gap - (1,866,611) 45,578,987 32,235,557 (2,694,198) (1,334,940) 10,094,931 - 82,013,726
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
62
As at 31 December 2011
Overdue Free of Interest
Up to 1 month
From 1 to3 months
From 3 to 6 months
From 6 to 12 months
From 1 to 5 years
Over 5 years
Total
Equivalent VND million
Equivalent VND million
Equivalent VND million
Equivalent VND million
Equivalent VND million
Equivalent VND million
Equivalent VND million
Equivalent VND million
Equivalent VND million
Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d)
Assets
Cash on hand - 11,492 - - - - - - 11,492
Balances with the SBV - - 284,081 - - - - - 284,081
Deposits with and loans to credit
institutions - gross - - 2,115,693 - 104,140 - - - 2,219,833
Loans and advances to customers - gross - - 4,437,189 1,334,782 160,523 18,639 210,257 - 6,161,390
Investment securities - - - 14,940 - - - - 14,940
Fixed assets - 9,801 - - - - - - 9,801
Other assets - 41,101 - - - - - - 41,101
- 62,394 6,836,963 1,349,722 264,663 18,639 210,257 - 8,742,638
Liabilities
Deposits and borrowings from credit institutions - - 2,685,483 416,560 89,263 - - - 3,191,306
Deposits from customers - - 3,202,161 261,759 231,515 46,443 - - 3,741,878
Other liabilities - 101,272 - - - - - - 101,272
- 101,272 5,887,644 678,319 320,778 46,443 - - 7,034,456
Interest sensitivity gap of balance
sheet items - (38,878) 949,319 671,403 (56,115) (27,804) 210,257 - 1,708,182
Interest sensitivity gap of off -balance
sheet items - - - - - - - - -
Total interest sensitivity gap - (38,878) 949,319 671,403 (56,115) (27,804) 210,257 - 1,708,182
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
63
A change of 100 basis points in interest rates would have increased or decreased the net profit of the
Branch by USD655,842 (2011: USD629,103). This analysis assumes that all other variables, in particular
foreign currency rates, remain constant.
(e) Fair values versus carrying values
Fair value is the amount for which an asset could be exchanged, or liability settled, between
knowledgeable, willing parties in arm’s length transaction on the measurement date.
The following table presents carrying amount and fair value of the Branch’s financial assets and liabilities
as at 31 December 2012 and 2011:
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
64
As at 31 December 2012 Carrying value Fair Value
At fair value
through profit
or loss
Held- to
maturity
Loans and
receivables
Available-for-
sale
Financial
liabilities
determined at
amortised cost Total
USD USD USD USD USD USD USD
Financial assets
Cash on hand 1,014,963 - - - - 1,014,963 1,014,963
Balances with the SBV 11,225,631 - - - - 11,225,631 11,225,631
Deposits with and loans to credit institutions - gross - - 65,280,261 - - 65,280,261 (*)
Loans and advances to customers - gross - - 227,095,594 - - 227,095,594 (*)
Investment securities - 968,494 - 33,782,072 - 34,750,566 (*)
Other financial assets - - 2,853,502 - - 2,853,502 (*)
12,240,594 968,494 295,229,357 33,782,072 - 342,220,517
Financial liabilities
Deposits and borrowings from credit institutions - - - - 82,995,579 82,995,579 (*)
Deposits from customers - - - - 167,910,894 167,910,894 (*)
Other financial liabilities - - - - 3,396,465 3,396,465 (*)
- - - - 254,302,938 254,302,938
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
65
As at 31 December 2012 Carrying value Fair Value
At fair value
through profit
or loss
Held- to
maturity
Loans and
receivables
Available-for-
sale
Financial
liabilities
determined at
amortised cost Total
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d)
Financial assets
Cash on hand 21,140 - - - - 21,140 21,140
Balances with the SBV 233,807 - - - - 233,807 233,807
Deposits with and loans to credit institutions - gross - - 1,359,658 - - 1,359,658 (*)
Loans and advances to customers - gross - - 4,729,947 - - 4,729,947 (*)
Investment securities - 20,172 - 703,613 - 723,785 (*)
Other financial assets - - 59,432 - - 59,432 (*)
254,947 20,172 6,149,037 703,613 - 7,127,769
Financial liabilities
Deposits and borrowings from credit institutions - - - - 1,728,632 1,728,632 (*)
Deposits from customers - - - - 3,497,248 3,497,248 (*)
Other financial liabilities - - - - 70,742 70,742 (*)
- - - - 5,296,622 5,296,622
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
66
As at 31 December 2011 Carrying value Fair Value
At fair value
through profit
or loss
Held- to
maturity
Loans and
receivables
Available-for-
sale
Financial
liabilities
determined at
amortised cost Total
USD USD USD USD USD USD USD
Financial assets
Cash on hand 551,780 - - - - 551,780 551,780
Balances with the SBV 13,639,375 - - - - 13,639,375 13,639,375
Deposits with and loans to credit institutions - gross - - 106,579,290 - - 106,579,290 (*)
Loans and advances to customers - gross - - 295,822,461 - - 295,822,461 (*)
Investment securities - 717,284 - - - 717,284 (*)
Other financial assets - - 1,898,766 - - 1,898,766 (*)
14,191,155 717,284 404,300,517 - - 419,208,956
Financial liabilities
Deposits and borrowings from credit institutions - - - - 153,221,922 153,221,922 (*)
Deposits from customers - - - - 179,656,151 179,656,151 (*)
Other financial liabilities - - - - 3,441,749 3,441,749 (*)
- - - - 336,319,822 336,319,822
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended 31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
67
As at 31 December 2011 Carrying value Fair Value
At fair value
through profit
or loss
Held- to
maturity
Loans and
receivables
Available-for-
sale
Financial
liabilities
determined at
amortised cost Total
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Equivalent
VND million
Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d) Note 2(d)
Financial assets
Cash on hand 11,492 - - - - 11,492 11,492
Balances with the SBV 284,081 - - - - 284,081 284,081
Deposits with and loans to credit institutions - gross - - 2,219,833 - - 2,219,833 (*)
Loans and advances to customers - gross - - 6,161,390 - - 6,161,390 (*)
Investment securities - 14,940 - - - 14,940 (*)
Other financial assets - - 39,548 - - 39,548 (*)
295,573 14,940 8,420,771 - - 8,731,284
Financial liabilities
Deposits and borrowings from credit institutions - - - - 3,191,306 3,191,306 (*)
Deposits from customers - - - - 3,741,878 3,741,878 (*)
Other financial liabilities - - - - 71,684 71,684 (*)
- - - - 7,004,868 7,004,868
(*) The Branch has not determined fair values of other financial assets and liabilities for disclosure because (i) quoted prices in active market is not available for these
financial assets and liabilities; and (ii) Vietnamese Accounting Standards, the Vietnamese Accounting System for Credit Institutions stipulated by the State Bank of
Vietnam and the relevant statutory requirements do not provide guidance on measurement of fair values in the case where quoted prices in active market are not available.
Fair values of these financial instruments may be different from their carrying values.
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Chinatrust Commercial Bank, Ho Chi Minh City Branch
Floor 9 - Kumho Asiana Plaza Saigon, 39 Le Duan Street,
Ben Nghe Ward, District 1, Ho Chi Minh City
Notes to the financial statements for the year ended
31 December 2012 (continued)
Form B05/TCTD
(Issued in accordance with Decision No
16/2007/QD-NHNN dated 18 April 2007 of the
Governor of the State Bank of Vietnam)
68
(f) Operational risk
Operational risks include risks arising from system failure, human error or non-adherence to systems and
procedures, or from fraud or inadequate internal controls and procedures, resulting in financial or
reputation loss. The Branch has put in place necessary preventive and detective controls to ensure those
risks are managed to the minimum level.
32. Lease commitments
The future minimum lease payments under non-cancellable operating leases were:
31/12/2012
USD
31/12/2011
USD
31/12/2012
Equivalent
VND million
31/12/2011
Equivalent
VND million
Note 2(d) Note 2(d)
Within one year 1,104,997 704,016 23,015 14,663
Within two to five years 2,904,066 2,816,064 60,486 58,653
Over five years - 528,012 - 10,997
4,009,063 4,048,092 83,501 84,313
25 March 2013
Prepared by: Approved by:
Vu Thi Hoang Ha Ralph Wu
Head of Accounting Department General Manager