REPORT - abbank.vn · Result Loans Deposits Interbank Investment Business result Net interest income DETAILED REPORT I. FINANCIAL PERFORMANCE Analysis of business profitability in

1 Report on Business Performance as at the end of 2016

REPORT

BUSINESS RESULTS

2016

Ho Chi Minh City, April 2017

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CONTENT

EXECUTIVE SUMMARY 3

DETAILED REPORT 7

I. FINANCIAL PERFORMANCE 7

II. CUSTOMERS 8

1. Consumer banking 8

2. Corporate banking 9

3. Financial investment and interbank activities 11

4. Network development and marketing activities 12

III. OPERATION AND ORGANIZATION AREA 13

1. Credit management 13

2. Risk management 13

4. Implementation status of 05 strategic goals and 20 initiatives 15

5. IT Management 16

IV. LEARNING AND DEVELOPMENT AREA 16

1. Overview on human resource management 16

2. Main activities implemented in 2016 17

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EXECUTIVE SUMMARY

Summary of market overview and ABBANK’s business performance in 2016

In 2016, the global economy has grown at a low level for 5 consecutive years (under

3.7% of 2010). International Monetary Fund (IMF) estimated that global GDP

increased 3.1% in 2016 (0.1% lower compared to 2015) due to facing the issues:

slowly improved labor productivity in developing countries, lower than expected

global trade growth, the price of basic commodities continued to fall sharply, Brexit‟s

negative impacts and the unpredictilities of the United States President-elected Donald

Trump. Meanwhile, the extensionary money policies (low or negative interest rates,

quantitative and qualitative expansion packages,…) in most countries had little effects

on growth and inflation.

Although the global economy recovered difficultly, Vietnam‟s economy still shows

many positive signs with some difficulties and challenges in 2016. GDP growth was

6.21%, lower than the 2015‟s 6.68% and did not met 2016‟ plan (6.7%). However, this

is only a cyclical temporary drop of total supply and is expected to recover in the short

term. In the long term, Vietnam‟s economy still maintained the positive growth rates

with strong exports and high foreign investment; and macroeconomic stability thanks

to the efforts of institution reform, business environment improvement in recent years.

2016‟s CPI was controlled under 5%, at 4.74%, while core inflation was stable,

increased by 1.87% compared to 2015. The budget deficit of 2016 was 192.2 trillion

dong, up 6.96% compared to 2015. The business environment was improved

significantly, the number of re-operated enterprises increased (up 24.1% compared to

the previous years) and the number of newly established enterprises increased by

16.19%, in contrast, the number of bankruptcies and pending bankruptcies decreased.

Vietnam's financial system development is quite healthy, safe with high liquidity.

According to data of the State Bank of Vietnam (SBV), credit growth in 2016 was

relatively high (18.71%) although not yet reached the 18-20% target, as well as deposit

growth (18.38%). Supply funds to the economy in 2016 reached 181.2% of GDP, the

credit funds are distributed more efficiently and focus on the priority areas

(agriculture, exports, industrial support, high technology, SMEs). Meanwhile, the

banking and financial system restructuring process achieved some initial results and

continued to provide transparency on the banking system, handle bad debts and

problem banks.

Key achievements as at the end of the year 2016

In 2016, the global‟s economy had many unpredictilities, Vietnam‟s economic growth

slowed and banking sector was improved with the implementation of the credit

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institution‟s restructuring and bad debts handling, especially the problem banks. In this

context, consistent with the retail banking objective has been approved by the Board of

Directors, a clear orientation and a flexible plan, ABBANK‟s business activities had

many outstanding results.

For the first time the outstanding loans in Market 1 exceeded 40,000 billion dong,

deposits exceed 50,000 billion dong. At the end of 2016, outstanding loans in

Market 1 reached 40,141 billion dong, completed 100% of the 2016‟s plan and

increased by 30% compared to 2015, higher than the whole sector credit growth

(18.71%). Deposits in Market 1 completed 2016‟s target at 52,228 billion dong,

increased by 9% compared to 2015.

ABBANK‟s profit exceeded 2016‟s plan. As at the end of 2016, the bank‟s profit

before tax reached 288.4 billion dong, exceeded the plan by 34% and equivalent to

268% of 2015 result.

After years of focus on strengthening internal system, as at December 31, 2016

ABBANK‟s network officially reached 159 transaction units (increased by 13

transaction units compared to 2015) at 33 provinces and cities nationwide (4 more

provinces compared to 2015).

ABBANK and FWD have signed a strategic cooperation agreement of distributing

insurance products in Vietnam. Accordingly, FWD will become the exclusive

insurance – banking partner of ABBANK in Vietnam, providing life and savings

insurance products through ABBANK‟s distribution channels in Vietnam. With

this collaboration, ABBANK affirmed the goal of becoming one of the leading

banks in Vietnam in bancassurance sector, focused on service quality, and

continued to improve ABBANK„s brand and reputation in the financial market.

Based on business activities with stable deposits resources, good liquidity,

continuously improved asset quality and high level of capital adequacy compared

to other domestic banks, Moody's raised ABBANK‟s baseline credit assessment

(BCA) from B3 to B2. Long-term CR Assessment (CRA) has also been improved

from B2 to B1 with stable outlook. This result once again confirms the

ABBANK‟s safe and sustainable development, reputation and position in

Vietnam‟s banking system.

ABBANK achieved PCI DSS security certification. By the end of 2016,

ABBANK was the 7th bank (out of more than 40 banks operating on Vietnam‟s

territory has been implementing international payment card issuance) in Vietnam

had this certificate and was the 2nd bank had PCI DSS V3.2 certification (the

latest version of the PCI) with stricter conditions.

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Summary of key business indicators of ABBANK

Unit: vnd bil

Summary of financial indicators

Item Actual

Unit Y.2016 Y.2015 FY.2016

ROaE 5.0% 1.9% 3.7% %/year

ROaA 0.4% 0.2% 0.3% %/year

EBT/Income 5.4% 2.2% 4.8% %

Operating expenses/Net income (CIR) 55.2% 57.8% 55.5% %

CAR 13.5% 16.2% >=9% %

Total asset/Equity 12.8 11.2 12.0 Times

Debt/Equity (D/A) 11.8 10.2 11.0 Times

Equity/Total asset 7.8% 8.9% 8.3% %

Debt/Total asset 92.2% 91.1% 91.7% %

Loans (2 markets)/Total asset (LAR) 70.1% 66.3% 65.2% %

Loans (2 markets)/Deposits market 1 (LDR) 76.9% 64.6% 76.8% %

Earning before Credit Provision Expense/Staff 286 273 290 Mil dong/year

Operating expenses/Staff 354 374 362 Mil dong/year

ResultCompared

to result

Compared

to plan (%)

2016 2015 2016 2015 2016

Total asset 74,432 64,662 70,000 115% 106%

Loans 49,555 41,195 45,632 120% 109%

- Market 1 40,141 30,915 40,195 130% 100%

- Market 2 9,414 10,280 5,437 92% 173%

Deposits 65,333 56,977 58,305 115% 112%

- Market 1 52,228 47,881 52,305 109% 100%

- Market 2 13,105 9,096 6,000 144% 218%

NPL group 3-5 1,020 735 814 139% 125%

- Ratio of NPLs / Total loans 1.95% 1.72% 1.78%

- Ratio of NPLs/Loans in market 1 2.54% 2.38% 2.02%

Earning before Credit Provision Expense 927.7 770.9 917.8 120% 101%

Total provision expense 639.3 663.2 703.3 96% 91%

Credit Provision Expense 247.9 230.8 199.0 111% 125%

Provision for VAMC Bonds 391.4 432.4 504.3 89% 78%

EBT 288.4 107.7 214.5 268% 134%

ItemPlan

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The detailed report of ABBANK‟s activities in 2016 are specified below. (The report

figures are all audited).

Respectfully,

An Binh Joint Stock Commercial Bank (ABBANK)

Chief Executive Officer

(Signed)

CU ANH TUAN

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Unit: VND bn

PlanCompared

to result

Compared

to plan (%)

2016 2015 2016 2015 2016

Total assets 74,432 64,662 70,000 115% 106%

Loans 40,141 30,915 40,195 130% 100%

Corporate 25,118 19,682 25,853 128% 97%

Retail 15,024 11,233 14,341 134% 105%

Deposits 52,228 47,881 52,305 109% 100%

Corporate 27,279 26,191 29,305 104% 93%

Retail 24,948 21,690 23,000 115% 108%

Deposits at and Lending to other credit institutions 12,327 11,553 6,333 107% 195%

Deposits and Borrowing from other credit institutions13,105 9,096 6,000 144% 218%

Investment Securities 15,891 15,739 16,802 101% 95%

Trade Securities - - - - -

Long-term Investment 571 571 541 100% 105%

Interest income 4,440.1 4,090.3 4,171.2 109% 106%

Interest expense 2,648.1 2,430.9 2,290.7 109% 116%

Gross interest income 1,792.0 1,659.4 1,880.5 108% 95%

Income from services 123.0 53.2 110.3 231% 112%

Other income 316.8 254.0 227.0 125% 140%

Total income 2,231.9 1,966.6 2,217.8 113% 101%

Operating Expense 1,304.2 1,195.7 1,300.0 109% 100%

Earning before Credit Provision Expense 927.7 770.9 917.8 120% 101%

Total provision expense 639.3 663.2 703.3 96% 91%

EBT 288.4 107.7 214.5 268% 134%

ItemResult

Loans

Deposits

Interbank

Investment

Business

result

Net interest income

DETAILED REPORT

I. FINANCIAL PERFORMANCE

Analysis of business profitability in 2016

Earning before provision cost this period reached Vnd 927.7 bil, increased by

156.8 bil (20%) compared to 2015. In that,

o The total income was up 265.3 bil (13%), included:

The net interest income increased by Vnd 132.6 bil (equivalent to 8%)

compared to 2015.

Net income from services increased by Vnd 69.8 bil (equivalent to

131%) compared to 2015.

Other incomes increased by Vnd 62.8 bil (equivalent to 25%) compared

to 2015.

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o Operating expense was Vnd 1,304.2 bil in 2016, an increase of 108.5 billion

(9%) compared to 2015, operating expenses growth was 4% lower than

operating income growth, indicating operating costs were effectively

controlled.

Compared to 2015, the EBT at 2016 increased 180.7 bil (equivalent to 168%). In

overall, the business performance in 2016 was significantly improved compared to

2015. The earning before provision expenses was 927.7 bil, equal to 120% of that

in 2015. However, because of high provision cost, the bank‟s EBT in 2016 was

affected.

II. CUSTOMERS

1. Consumer banking

1.1 Business performance of consumer banking in 2016

Unit: VND bn

Item Result Plan

Compared with

result (%)

Compared

with plan (%)

Dec-16 Dec-15 Dec-16 Dec-15 Dec-16

Deposits 24,948 21,690 23,000 115% 108%

Loans 15,024 11,233 14,341 134% 105%

No. of

individual

customers 664,599 576,000 699,890 115% 95%

ATM 178 167 195 107% 91%

POS 1,248 914 1,200 137% 104%

Note:

- Number of ATM: The number of ABBANK ATMs at 31/12/2016 is 178. Revenue reached

2.13 VND, equivalent to 102% of the 2016 plan.

- Number of POS: The newly installed POS in the reporting period: 1,248; The fee

income from POS reached VND 394.4 B, achieving 105% target of the 2016 plan.

1.2 Significant achievements of consumer banking in 2016

Product development

- Completing Reward point for using personal product and service project.

- Developing card products: co–branded cards (ABBANK–EFORA, ABBANK–

ONEAHEALTH), couple cards,…

- Upgrading YOUfuture on Online banking.

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- Implementing paying water bill with diverse channels: counter payment, automatic

payment, online payment with the water supply and sewerage company.

- Implementing electricity, water, telecommunications bill payment.... through

ABBANK Bankplus with Viettel.

- Deploying the first Mobile Banking service at ABBANK, was named

ABBANKmobile with own brand identity standards of ABBANK, including

diversity and richness of payment features.

- Implementing features adding on the online banking: Forget passwords; game card

paying (FPTO, VGG, VNG), Air Asia tickets payment, save the beneficiary

information, resume trading features.

- Implementing features adding of online payment with EVN Hanoi.

Partnership development activities

- Develop lots of new partners in 2016: Car Dealers, real estate companies, referrals.

- Cooperating with the insurance partner (FWD) to deploy the business in 34 sale

agents in Hanoi and Ho Chi Minh.

2. Corporate banking

2.1 Business performance of Corporate banking in 2016

Unit: VND bn

Item

Result Plan Compared

with result

(%)

Compared

with plan

(%)


Deposits 27,279 26,191 29,305 104% 93%

Loans 25,118 19,682 25,853 128% 97%

No of customers 21,907 20,017 25,455 109% 86%

2.2 Significant achievements in 2016

- Business performance

Outstanding loans increased by VND 5,436 bil (or equivalent up of 28%) from

the end of 2015. This improvement of loan portfolio show the enhancement in

performance of the bank.

Continuing strengthening relationship with EVN after its divestment.

- Product & services development

For corporate customers:

Creating and implementing products of direct/indirect investment accounts.

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Reviewing, updating additional features of cash management services, such as

those in online banking, cash concentration account meeting the varied needs

of the customers in managing well their cash flow,…

Reviewing, updating and implementing import – export tax, domestic tax,

electronic tax payment service enabling customers to timely pay tax 24/7,…

For SME segment:

Tailoring the Installment Loan Products for SME segment such as: super-fast

loans in 6 hours and 24 hours.

Reviewing, adjusting, simplifying loan products to fit SME segment:

overdraft, auto loan.

Reviewing process and launching SMEFP III products.

Building the site for SMEs, concurrently update more new functions, such as

chat, online advisory of products/ services on website ABBANK…

- Business support and development

Reviewing and handling the ad-hoc case arising out in the process of granting

credit to corporate.

Supporting branches/sub-branches to approach customers, to follow the credit

granting process and prioritizing to disburse the customers and promote them

using other products/ services.

Co-operating with foreign banks and customers to perform cash

collection/disbursement via ABBANK‟s transaction offices.

Timely issuing special sales programs, competition programs to create

incentives for RMs and branches/sub-branches.

- Project performance

Completing the classifying of corporates RMs.

Completing the project to enhance the ability of SMEs with the co-operation

of Strategic partners IFC through the strategic direction.

- SMEs Performance (included in CB)

Unit: VND bn

Item Result Plan

Compared

with result

(%)

Compared

with plan

(%)


SME loans 8,104 6,923 8,970 117% 90%

Proportion to total

corporate loan 32.26% 35.17% 34.70% - -

SME deposits 2,879 2,381 2,500 121% 115%

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Unit: VND bn

Item Result Plan

Compared

with result

(%)

Compared

with plan

(%)


Proportion to total

corporate deposit 10.55% 9.09% 8.53% - -

No. of customers 19,871 18,567 24,000 107% 83%

- Partnership developments

In 2016, ABBANK established correspondence relationship with 10 other

banks to meet the bank‟s operation needs.

Trade finance limit of USD 80 million for ABBANK was granted by foreign

banks. Sales and cross-sales volume of trade financing products with

correspondence banks reached USD 30.4 million.

3. Financial investment and interbank activities

- Liquidity and treasury activities

Liquidity of ABBANK is always stable. ABBANK‟s solvency ratios are always

higher than the levels regulated by SBV in the Circular 36/2014/TT-NHNN, the

ratio of short-term capital used for long-term loans are controlled at less than 40%

and following the ration roadmap regulated by the new Circular 06/2016/TT-

NHNN up to 2018. Along with that, the in - out cash flow scenarios was built, as a

basis for liquidity management and fund balancing. Interest rate movement in

markets is monitored closely, the improved internal rates mechanism have been

applied, complied with market rates.

- Monetary trading activities

Gap trading, match tenor trading and interest trading performance for both USD

and VND were very active and effective that focused on 1 week to 3 months tenor,

making profit for ABBANK.

- Financial investment activities

In 2016, ABBANK has expanded the relationship with reputable issuers to seek

bond investment opportunities.

At 31/12/2016, the scale of government bonds portfolio reached 9,683 billion

VND. The total sale turnover achieved 62,614 billion VND in 2016. In 2016,

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ABBANK continually played an active role in the bond market and always ranked

in the top trading members on proprietary outright turnover.

- FX trading activities

Foreign Exchange market year of 2016 experienced high volatility of currency

basket in first 6 months and remained stable in third quarter and continued to

strongly increase in November & December. However, a trend of all major world

currencies in 9 months of 2016 was down against the US dollar. State Bank of

Vietnam used central currency policy and range +-3% to manage an exchange rate.

In this situation, ABBANK has been fully meeting customer‟s demand, supporting

branches to sustain and seize new customers with competitive rate. Besides,

ABBANK has established and promulgated sales developing program and structure

products to meet the demand of customers, increasing profit from FX trading

activities in 2016.

4. Network development and marketing activities

4.1 Network development activities

Result of network development in 2016: Number of branches/transaction offices of

ABBANK as at Dec 31, 2016: 159 transaction units, including 34 Branches, 124

Transaction offices and 1 Saving fund.

4.2 Marketing and brand name activities in 2016

Branding and Communication Development activities

Nominated and gained 02 awards: The award “Brand reputation - quality of

APEC” from the well known foreign magazine and the award “The Fastest

Retail Bank Vietnam 2016”.

Basing on the orientation to be a leading joint-stock commercial bank in

Vietnam, focusing on retail banking”, reinforce branding development on

online: Improve ABBANK Fanpage to Top 8 of biggest banking Fanpage in

Vietnam; card registration apps; loan registration apps and online consulting

section on fanpage.

Completely upgrading ABBANK new website with friendly interface,

compatible with any device and browser, according to modern standards, hi-

tech security… Add more features, new gadgets such as online consulting,

guarantee certificate lookup, register loan/open cards online, loan calculation

engines.

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ABBANK‟s image is built to be friendly and active through great, meaningful

sponsorship programs that is meaningful to the society, ensure to be a friendly

retail bank.

III. OPERATION AND ORGANIZATION AREA

1. Credit management

- Credit appraisal and approval activities: focus on building operational and

operational processes in 2016, complete the credit approval authorization to Credit

Approval Experts, cooperate with the relevant units to build up LOS and Online

Approval System of SME.

In particular, the implementation of the indicators stipulated in Circular

36/2014/TT-NHNN dated November 11, 2014 of the Governor of the State Bank

of Vietnam as at 31/12/2016 as follows:

Article 11: When credit is not granted

- ABBANK does not grant credits to those defined in Article 126 of the Law on

Credit Institutions.

- ABBANK does not provide credit to customers to invest and trade unlisted

corporate bonds.

Article 12: Credit Restrictions

- ABBANK does not provide unsecured credit or credit with preferential terms to

the subjects stipulated in Article 12 of Circular 36.

Article 13: Credit limit

- The total credit limit for a customer: 8.58% of ABBANK's own capital (Not to

violate the regulation, shall not exceed 15% of the credit institution‟s equity).

- The total outstanding loans granted to a group of related customers: 24.27% of

ABBANK's own capital (Not to violate the regulation, shall not exceed 25% of

the credit institution‟s own equity).

2. Risk management

- Credit risk management

Credit risk control, monitoring and reporting through regularly and irregularly Reports

to submit for all levels and shareholders such as State Bank of Vietnam, IFC,

Maybank, BOD, BOM, Supervisory Board….: Credit report of the whole bank, Risk

summary report, Control the credit risk limit, IFC criteria commitment…

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Operation management of Internal credit rating system; deployment and training for

all business units MSME credit rating; collaborating with IT team to improve and

adjustment Credit rating system; collaborating with IT team and Credit Management

Division to supplement searching function and exporting report of related party group;

T24 data standardization.

Gap analysis project is corner stone for implementing Basel II standards and Risk

management framework at ABBANK.

- Market Risk Management

Completed 6 projects on automatic reports.

Promulgating decisions on liquidity risk management procedure at ABBANK,

decision on liquidity stress testing, decision on FX limits at ABBANK, decision

on reference prices of inter-bank transactions at ABBANK, decision on

reference prices for interbank lending/borrowing, transactions at ABBANK.

- Operational Risk Management

Creating and issued 13 documents on risk management regulations, processes,

guidelines.

Enhancing risk awareness through ABBANK‟s internal training.

Applying multiple solutions to increase the quantity and quality of risk reports

from RO.

Carrying out projects: Operational risk status management system, Basel II and

AML.

3. Operation Management

The operational management is successful in conducting the project of

branches‟ concentrated payment moved to The Head Office, check the

compliance of domestic payment in business units. Issue the domestic

remittance procedure and perform the Bankplus data check.

Card risk management: during operation, checking transactions and merchants‟

registration profiles, ABBANK promptly detected and prevented some

violations. ABBANK is highly appreciated by Visa in card risk management.

Development of Technology: completed PCI DSS project. ABBANK is the 7th

bank (among more than 40 banks in Vietnam issuing and acquiring

international cards) in Vietnam who has achieved this certification and the 2nd

bank receiving PCI DSS V3.2 certification (the latest version of PCI) with

stricter conditions.

Credit support:

Launched Online Bank Guarantee Search in ABBANK‟s website.

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Completed comprehensive training course for certified credit administration

staff during 11 months.

Make use of credit document compilation software in CA Center

4. Implementation status of 05 strategic goals and 20 initiatives

- Implementation status of 05 strategic goals as at Dec 31, 2016

5 new proposing

strategic goals

moviforward 2020

Result

Dec-16

Result

Dec-15 Notes

1. Top 5 ROE among

privately owned

commercial banks

4.08% 1.59% ROE after tax

2. Income from Retail

(including consumer and

SME) accounts for at

least 70% of total

operating income, and

income from service fees

(including guarantee

fees) accounts for at least

20% of total operating

income.

- Income from

SME and

consumer/total

income: 38.3%

- Income from

service fees

(including

guarantee

fees)/net

income: 10.96%

- N/A

- Income from

service fees

(including

guarantee

fees)/ net

income: 9.3%

The data

resources are

limited to separate

the data of SMEs

and large

enterprises in

2015

3. Top 10 brands in the

Vietnam banking system Have not measured

4. Build a friendly and

professional work culture

and environment,

capable of attracting

employees measured by

satisfaction rate bank-

wide.

95.6% 90.2%

In recent years

ABBANK

constantly

improve the

remuneration

policy, build a

friendly working

environment,

sociable,

standards for

employees.

5. Build professional and

effective corporate

governance following

international best

practices

IFC’s Corporate Governance Framework, Moody’s

Credit Rating, IFRS Financial Statements, Basel II

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Pursuant to the ABBANK‟s Vision, Mission and Strategic target and 20 strategic

initiatives for period 2014 – 2018 which have been approved by the BOD, 23

strategic projects have been started and deployed in 3 years 2014 – 2016. As such,

since 2014 to 31st December 2016, ABBANK has been deploying 20 projects. Up

to 31st December 2016, 15 projects have been completed, 05 projects will be

continued to deploy after 31st December 2016.

5. IT Management

- IT infrastructure management and support

Complete the strategy - building plan of BCP (Business Continuity Planning) –

bank‟s continuous operation plan regarding to IT segment - building orientation

of DRP (Disaster Recovery Planning).

Join the implementation of major projects of Bank: initialization and loan

approval - LOS, Enterprise service bus - ESB, Anti-Money Laundering - AML,

Upgrading of ABBANK Website, Basel II,…

Complete over 20 documents of updated, new released policy, regulation that

relevant to IT and other relevant Division/Center/Department, such as:

Regulations of safety and security for ABBANK‟s information technology

system, Regulation of allocation and revocation of IT infrastructure resource,…

and other announcements of security warning to all staff of bank.

Accomplish the tasks of supporting end users: ABBANK has built the channel

of “Centralized receiving and support user‟s requests of the whole IT Division”

which applies SLA (service level agreement), and finished over 10,400

requests, supported 52/71 transaction offices in the work of office-network

development (remaining 19 offices are on the way of support).

- Application development and management (Core Banking)

In 2016, ABBANK has performed application development projects of 250

projects planned in 2016.

Project of initialization and loan approval - LOS.

Online Banking Project.

Project of Enterprise service bus – ESB.

KPI – BSC Project.

Basel II Project.

IV. LEARNING AND DEVELOPMENT AREA

1. Overview on human resource management

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As of 31/12/2016, ABBANK's total staff number is 3,260. Oriented to build a team

of highly professional ethics, commitment and productivity, all ABBANK‟s

activities in 2016 focused on the development of the human element.

2. Main activities implemented in 2016

- Human resources management

Promulgated new collective labor agreement; reviewing and signing appendix

of labor agreement for all employees pursuant to new legal regulation on salary;

signing agreement on labor contract with all personal relationship managers

(RM) in business units under RM grading period.

Designed and developed Core competence with, behavior standard, succession

profile for key positions…

Applied technology in management: Task assignment management and HR

data transferring software.

Implemented initiatives and programs for working environment improvement

such as: "Show Me the Money", economic idea or HR hotline.

Launched program “New thinking, New experience” for a better understanding

between employees – so as to increase internal service quality.

Organized for the first time the ceremony for honoring long-term working

employees that create good atmosphere to the commitment level of all staff

members.

Implemented of the survey assessing the quality of internal services,

satisfaction of employees.

- Salaries and remuneration policies

Building mechanism for suitable and effective cost (overtime contract;

healthcare; headcount for electricity cashiers…);

ABBANK Care launching for the 1st time – especially Happy Friday: an

initiative beloved by ABBANK‟s employees.

Checking and conducting salary increment for the whole bank; salary

adjustment for officer upgrading cases pursuant to process and regulation.

- Recruitment

Recruiting about 1,100 employees (including newly-recruited and replacement),

which is twice bigger number than the recruitment number in 2015 (while

number of recruitment team unchanged); providing timely recruitment service

and enough personnel for newly opened branches. Completing tasks of

transference and appointment with more than 1,000 cases.

Implementing sourcing creation program as trainee programs. Attending more

than 10 job fairs at big universities in Hanoi and HCM City and near-by

provinces.

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Promulgating new procedures of recruitment and personnel management;

standard criteria for specific position for the whole bank; career path for

promotion of Branch Director.

- Training and Development

Organizing training courses, 150% compared to plan; design and organize the

title based training programs for the first time.

Success in holding E-learning training courses in terms of products and basic

profession; continue with training program for Succession Branch Director;

Implementing program for strengthening trial branch internal competence.

Successfully implementing first period of establishing ABBANK Learning

community.

Launching the Talent pool program (with modern and suitable selecting tool),

designing and promulgating career path for Branch Director.

Composing handbook “I am ABBANKers”: enhancing ABBANK core-

competence and improving ABBANKer‟s image in a professional way and

orienting to perfect service quality.

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APPENDIX- AUDITED BUSINESS

PERFORMANCE

Balance sheet (unit: million dong) 2016 2015

A ASSETS 74,431,564 64,661,508

I Cash 633,739 573,978

II Balances with the State Bank of Vietnam 1,529,072 1,737,113

III Balances with and loans to credit institutions 12,326,929 11,553,327

1 Deposits with other credit institutions 2,913,123 1,273,547

2 Loans to other credit institutions 9,413,806 10,279,780

IV Derivatives and other financial assets 92,149 23,587

V Loans to customers 39,209,631 30,530,486

1 Loans to customers 39,796,167 30,915,308

2 Allowance for loans to customers (586,536) (384,822)

VI Debt purchase 342,661 -

1 Debt purchase 345,250 -

2 Allowance for debt purchase (2,589) -

VII Investment securities 15,056,462 15,189,676

1 Available for sale investment securities 12,512,204 11,661,971

2 Held to maturities investment securities 3,378,637 4,076,710

3 Allowance for diminution in the value of

investment securities (834,379) (549,005)

VIII Long-term investments 568,489 568,624

1 Investments in subsidiaries 260,000

260,000

2 Investments in associates 41,905 41,905

3 Other long-term investments 268,791 268,791

4 Allowance for diminution in the value of long-

term investment (2,207) (2,072)

IX Fixed assets 829,789 980,123

1 Tangible fixed assets 535,531 567,460

A Cost 870,137 849,584

B Accumulated depreciation (334,606) (282,124)

2 Intangible fixed assets 294,258 412,663

A Cost 445,119 541,381

B Accumulated depreciation (150,861) (128,718)

X Other assets 3,842,643 3,504,594

1 Receivables 2,424,049 1,964,192

2 Interest and fee receivables 981,938 917,926

3 Other assets 592,066 753,796

4 Allowance (155,410) (131,320)

TOTAL ASSETS 74,431,564 64,661,508

B LIABILITIES AND OWNERS’ EQUITY

I Borrowings from the State Bank of Vietnam 1,643,448 799,795

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Balance sheet (unit: million dong) 2016 2015

II Deposits and borrowings from credit

institutions 13,105,264 9,096,176

1 Deposits 5,939,519 1,033,719

2 Borrowings 7,165,745 8,062,457

III Deposits from customers 51,827,514 47,880,897

IV Refinanced funds and trust investment funds 311,910 280,328

V Valuable paper issued 400,000 -

VI Other liabilities 1,340,548 844,550

1 Accrued interest and fee payables 774,246 605,492

2 Other liabilities

566,302

239,058

TOTAL LIABILITIES 68,628,684 58,901,746

VII Capital and reserves 5,802,880 5,759,762

1 Share capital 5,319,496 5,247,165

A Charter Capital 5,319,496 4,798,000

B Capital surplus - 449,165

2 Reserves 269,818 306,980

3 Retained earnings 213,566 205,617

TOTAL LIABILITIES AND OWNERS’

EQUITY 74,431,564 64,661,508

Income statement (unit: million dong) 2016 2015

1 Interests and similar incomes 4,440,101 4,090,259

2 Interests and similar expenses (2,648,121) (2,430,910)

I Net interest incomes 1,791,980 1,659,349

3 Fee and commission incomes 195,362 129,779

4 Fee and commission expenses (72,336) (76,575)

II Net fee and commission income 123,026 53,204

III Net gain/(loss) from foreign exchange 113,012 63,679

IV Net gain/(loss) from trading security 2,121 -

V Net gain/(loss) from trading investment

securities 165,162 131,697

5 Other income 58,601 39,908

6 Other expenses (51,033) (13,539)

VI Other incomes/expenses – net 7,568 26,369

VII Net gain from investment in associate 28,985 32,278

VIII Operating expenses (1,304,171) (1,195,719)

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IX Profit before allowance and provision expenses 927,683 770,857

X Allowance for loans to customers and provision

for off balances sheet commitments (639,280) (663,198)

XI Profit before tax 288,403 107,659

7 Income tax expense – current (53,945) (19,065)

XII Total income tax expense (53,945) (19,065)

XIII Net profit after tax 234,458 88,594

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REPORT - abbank.vn · Result Loans Deposits Interbank Investment Business result Net interest income DETAILED REPORT I. FINANCIAL PERFORMANCE Analysis of business profitability in