INNER

RESILIENCE
FUTURE
ASSURANCE

2023 Annual Report

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Sacombank's
2023 Annual Report
CONTENTS 5
6
A note from the Editorial Board
Message from Chairman

GENERAL INFORMATION CORPORATE GOVERNANCE REPORT

10 Vision - Mission - Core values 58 Key principles in Sacombank’s governance model
11 Overview 60 Report of the Board of Directors
12 32-year journey 69 Board of Supervisors report
14 Outstanding achievements in 2023 74 List of shares owned with voting rights of BOD, BOS, and
BOM members
16 Honorable awards
75 Related party transactions
18 Business network
76 Remuneration and rewards

INNER RESILIENCE
20 Organizational structure
77 Rights and responsibilities of Shareholders
21 Orientation and vision to 2030
82 Shareholder structure

FUTURE ASSURANCE
22 Leadership team

BUSINESS PERFORMANCE REPORT FINANCIAL STATEMENTS &

28 Report from the CEO SUSTAINABLE DEVELOPMENT REPORT In 2023, Sacombank entered the final phase of its restructuring plan, poised to
achieve its objectives despite the global economic slowdown. Despite facing
32 Business performance in 2023 91 Consolidated statement of financial position numerous external and internal challenges, Sacombank remained steadfast
and adaptive, overcoming obstacles to achieve its objectives.
37 Orientation in 2024 97 Notes to the consolidated financial statements
186 Independent limited assurance statement on selected Based on this foundation, Sacombank confidently looks towards 2024 with
38 Restructuring plan report
inspirational message of “Inner Resilience - Future Assurance”, aiming for a
subject matters in sustainability report
40 Performance of Subsidiaries and Subsidiary banks new era of growth and further solidifying its position as a leading retail bank.
198 Sustainable development orientation This implies that the Bank will continue to strive for new achievements and
42 Building a solid foundation for effective risk reach further milestones on its growth path.
management and sustainable business growth 207 Detailed contents
46 Digital banking - Outstanding puzzle piece of The 2023 Annual Report of Sacombank features a mosaic of multicolored
Sacombank puzzle pieces, symbolizing the recognition and appreciation of pivotal
factors and valuable partnerships that have contributed to Sacombank's
50 Sacombank through the lens of international strength and position. Every Customer, Shareholder, Investor, Partner,
organizations Employee represents a perfect puzzle piece in creating a colorful picture of
Sacombank. With an expanded perspective, Sacombank becomes a pivotal
52 5 touchpoints on the employee engagement at
role, an integral part of the banking sector and the Vietnamese economy.
Sacombank
Editorial Board of 2023 Annual Report
EDITORIAL BOARD
Chief Editor Ms. NGUYEN DUC THACH DIEM Deputy Editor Mr. HA VAN TRUNG
Standing Vice Chairman cum CEO Deputy CEO

Members Mr. DO DUC HUNG Mr. HO VIET PHUOC Mr. BUI ANH TU Mr. DOAN HOANG NAM
Head of Planning Department Director of Risk Management Center Director of Financial Director of Marketing and
Institutions Department Communications Center

Secretary Ms. VU THI THUY HANG

Deputy Manager of PR Department
 MESSAGE
FROM
Dear valued Shareholders, Investors, Customers, Partners, and all employees,

Despite the global economic crisis in 2023, Vietnam’s Hence, Sacombank will enhance operational efficiency
economy showed resilience with controlled inflation and financial capacity through fund optimization
and stimulated growth, providing momentum for and asset reallocation to maximize profit; The

CHAIRMAN
recovery in the upcoming year. This year marks bank innovates risk management approach in line
Sacombank's 32-year journey of development, with international standards while also increasing
with strengthened competitiveness and enhanced awareness of and controlling human risks.
internal capabilities.
Additionally, we're refining customer financial
Amidst significant fluctuations in the international experience, particularly digital services, to
financial market, Sacombank is focusing on allocating minimize transaction times and elevate customer
resources for restructuring while bolstering core service. This effort includes ensuring system
business areas, relentlessly innovating products stability, improving data security, and enhancing
and services, and implementing robust solutions fraud detection measures to protect customer
to create new momentum and value in alignment transactions.
with the strategic direction of “Accelerating digital
transformation - Building a business ecosystem”. Furthermore, Sacombank focuses on building
a balanced HR management model to create an
As a result, Sacombank has fulfilled most of the optimal work environment motivation for employees,
targets set by the AGM, thereby enhancing financial contributing to the bank's sustainable development.
capability and resources for business expansion and Our ultimate goal is to maintain a leading position as
organizational structure enhancement. Furthermore, a pioneering bank, delivering exceptional value to all
Sacombank remains committed to achieving critical Shareholders, Investors, Customers, Partners, and
objectives in the Restructuring Plan, positioning Employees.
itself for higher aspirations in the future.
On behalf of Sacombank's Board of Directors,
Sacombank is focusing on allocating resources for These results affirm the unity, creativity, and
I deeply appreciate the trust, collaboration, and
unwavering support from our valued Shareholders,
restructuring while bolstering core business areas, determination of Sacombank's leadership and
employees, while also showcasing the trust and
Investors, Partners, and 18 million Customers.
Together, we have overcome challenges and built
relentlessly innovating products and services, and collaboration of Shareholders, Investors, Customers,
and Partners throughout our journey.
a modern, pioneering, and resilient Sacombank,
dedicated to upholding our responsibility.
implementing robust solutions to create new Vietnamese economy in 2024 is forecasted to Wishing you good health, happiness, and success!
momentum and value, aligning with the strategic continue facing challenges, yet it also offers
opportunities for businesses to innovate and prosper. Best regards.
direction of “Accelerating digital transformation -
By complying with regulations and aligning with the
development orientations of the Government and On behalf of the Board of Directors

Building a business ecosystem”.

the State Bank of Vietnam, Sacombank is poised to Chairman
improve its operational efficiency through digital DUONG CONG MINH
transformation.

6 2023 ANNUAL REPORT www.sacombank.com.vn 7

10 Vision - Mission - Core values
11 Overview
12 32-year journey
14 Outstanding achievements in 2023
16 Honorable awards
18 Business network
20 Organizational structure
21 Orientation and vision to 2030
22 Leadership team

GENERAL
INFORMATION
 OVERVIEW
VISION

A leading bank in Vietnam’s retail

banking service. Vietnamese name: Ngân hàng Thương mại Cổ phần Sài Gòn Thương Tín
English name: Saigon Thuong Tin Commercial Joint Stock Bank
Trade name: Sacombank
MISSION
SWIFT code: SGTTVNVX
Providing best-in-class comprehensive financial solutions for customers. Head Office: 266-268 Nam Ky Khoi Nghia Street, Vo Thi Sau Ward, District 3,
HCMC
Maximizing added value to stakeholders.
Tel: (028) 38 469 516
Increasing prosperity and professional values for all employees.
Hotline: 1800 5858 88
Contributing to the development of society and community.
Email: [email protected]
Website: www.sacombank.com.vn
CORE VALUES Listing information:
Stock code: STB
Pioneering and paving the way to continue succeeding.
Listed at: Ho Chi Minh Stock Exchange - HOSE
Actively innovating for sustainable development.
Charter capital (as of 31 December 2023): VND 18,852,157,160,000
Making a difference with innovative breakthroughs in business and governance.
Owner’s Equity (as of 31 December 2023): VND 45,733,863,895,847
Committing to quality assurance in customer service and partner cooperation. Banking License: No. 111/ GP-NHNN issued by the State Bank of Vietnam on 09
Constantly appreciating responsibility to the community and society. November 2018 (replacing Banking License No. 0006/NH-GP
dated 5 December 1991)
Business Registration Certificate: Business Code 0301103908
Registered on 13 January 1992
The 41st edition on 26 December 2022

BANKING OPERATIONS

Funds mobilization, Bank account, card, Remittances, Insurance, investment,

credit issuance E-Banking services foreign exchange and forex trading

International payment, Express money Safe deposit box Factoring and

export, and import transfer forfaiting
financing

10 2023 ANNUAL REPORT www.sacombank.com.vn 11

 32-YEAR JOURNEY
Emerging from aspirations of growth and pursuit of distinctive
values, Sacombank's 32-year journey embodies unwavering
dedication, overcoming challenges to assert its premier position
in the retail and banking sectors while actively contributing to
1991: ASPIRATION 2024: INNER RESILIENCE - FUTURE ASSURANCE
Vietnam's economic growth.
Sacombank was one of As the restructuring journey gradually concludes, Sacombank is focusing on internal consolidation, transformation,
the first commercial Joint Stock and acceleration to drive to achieve breakthroughs in Vietnam's digital banking landscape. This marks the beginning
Bank established in Ho Chi Minh City. of a sustainable development phase filled with opportunities, challenges, and responsibilities.

1993: BREAKTHROUGH 2023: ENERGY SPREAD

The first Commercial Joint Stock Bank based in Accelerating digital transformation and building a resilient business ecosystem,
Ho Chi Minh City to open a branch in Hanoi Capital City. strengthening internal capabilities to become the model of a successful
restructured bank.

1996: PROMINENCE
2022: STEADY AND SPREADING
The first bank to issue public shares to increase charter capital.
Enhancing financial strength, achieving the critical goal of the Restruturing
Plan, and fostering innovative thinking and refining solutions.

1997: VISION
The first bank to establish a credit group at the areas where 2021: STAY RESILIENCE AND MOVE FORWARD
no Sacombank branch, bringing financial resources to rural
regions, and setting the foundation for its future retail banking With a solid and mature stature, Sacombank was ready to conquer new
development strategy. heights and embark on a journey of greater achievements.

2020: BREAKTHROUGH THINKING – ELEVATING VALUE

2004 - NOW: LOVE SPREADING Asserting its return to the race by implementing leading digital
Launching annual community-oriented programs infused with solutions into business operations and management, aiming to build a
Sacombank's unique cultural identity. digital banking ecosystem.

2019: CONSOLIDATING AND ACCELERATING

Sacombank consolidated and accelerated the comprehensive
2006: PIONEER development of all activities, achieving most targets specified in the
The first Commercial Joint Stock Bank listed on the Restructuring Plan on time. Simultaneously, the bank promoted the spirit of
Ho Chi Minh City Stock Exchange. solidarity, youthfulness, and determination to innovate both within Sacombank
and in the community, projecting an image of a young and dynamic Sacombank.

2007 - NOW: PERSISTENCE 2018: ENHANCING INTERNAL STRENGTH –

IMPROVING CUSTOMER EXPERIENCES
The branch network extended across the Southwest, Southeast, South Central,
Central Highlands, and North Central regions of Vietnam, as well as Indochina. Marking Sacombank’s strong comeback with stable growth, modernization of products
and services, and improvement of labor productivity.

2015: SYNERGY 2017: CHALLENGES

The merger with Southern Bank has positioned Sacombank among the This year marked the beginning of the Restructuring Plan, approved by the State
five largest banks in Vietnam Bank of Vietnam, focused on accountability, efficiency, and collaboration.

12 2023 ANNUAL REPORT www.sacombank.com.vn 13

 OUTSTANDING ACHIEVEMENTS IN 2023
In 2023, despite a global economic slowdown, Sacombank strategically allocated resources
to strengthen its core business sectors and consistently improve its products and services.
The bank vigorously implemented solutions to create new momentum and added value in line
with the direction of ACCELERATING DIGITAL TRANSFORMATION - BUILDING A BUSINESS
ECOSYSTEM. From there, Sacombank continues to fortify its internal capabilities, ready to
break through and become the model of a successful restructured bank.

Meeting the targets set by the AGM. Particularly, the consolidated profit Successfully building the Treasury System Program and upgrading its foreign
before tax reached 101% of the plan, ROA increased by 0.31%, ROE increased by exchange business to meet international standards. Re-establishing and
4.47%. Sacombank fully made provision for VAMC bonds thereby being closed developing relationships with international financial institutions.
to fulfilling all financial obligations under the restructuring plan.

Achieving sustainable credit growth through selective credit approvals, with

Sacombank has successfully implemented international risk management
a particular focus on green credit and priority credit sectors, as well as assuring
standards by BASEL III, adopting modern financial management models
a stable customer base.
(IFRS9, ALM, EPM, etc.)

Moody’s recently upgraded Sacombank’s deposit ratings to the pre-merger Supporting business development through preferential loan packages,
level, raising it to B2 from B3, and updated its Baseline Credit Assessment versatile and convenient payment solutions, advanced business card offerings,
(BCA) to B3 from Caa1 due to bad debts and legacy assets settlement. and outstanding value-added benefits.

Affirming its position as a leading retail bank with 18 million customers,

pioneering the deployment of modern payment services such as Apple Pay, Efficiently deploying and operating SAP SuccessFactors HR management
cross-border QR code in Cambodia, and issuing the premium Sacombank system to affirm the Bank's position as a leading recruiter and realize e digital
Platinum American Express card...; consistently leading in Visa, Mastercard, transformation goals in the HR field.
JCB card payment volumes, and online payment volumes.

Streamlining customer journeys and transaction times through digitization, Enhancing processes and monitoring systems to ensure the bank operates
deploying a Voice recognition call center (AI-driven), Swift Go international smoothly, securely, and to maintain customer information confidentiality.
money transfer service, and automated tracking for all transactions. Implementing digital technology platforms (private cloud, Open API, BPM,
RPA) ready for breakthrough business solutions in 2024.

14 2023 ANNUAL REPORT www.sacombank.com.vn 15

 HONORABLE AWARDS
The Second-Class Labor Medal
for outstanding efforts in the prevention and
control of the COVID-19 pandemic in HCMC Rank 354 - Top 500 Outstanding Asian Inspirational
most valuable bank brands Enterprise Brand
Awarded by the President of the Socialist in the world 2023 2023
Republic of Vietnam
Ranked by Brand Finance Voted by Enterprise Asia

HCMC Golden Brand Award HCMC Green Business Outstanding Retail Banking Best Digital Transformation Most Innovative
2023 2023 Award 2023 Bank Vietnam 2023 Retail Bank in Vietnam 2023
Awarded by the People’s Committee Voted by the Business Voted by International Data Group, Voted by International Business Magazine
of Ho Chi Minh City Association of Ho Chi Minh City Vietnam Banks Association

Top 50 Corporate Sustainability Vietnam Top 50 Sao Khue Best Companies to Leading Enterprise in HR Digital
Award 2023 Public Companies 2023 2023 Work for in Asia 2023 Transformation Awards 2023
Voted by Nhip cau dau tu Magazine Voted by Vietnam Report Voted by VINASA Voted by HR Asia

In 2023, Sacombank was honored with 57 titles and awards granted

by the President, Ministries, Departments, and many internationally
and domestically prestigious organizations, recognized for business Vietnam Domestic SME Best FX Services
performance, brand development, digital transformation, and contributions Technology and Operations Bank of the year Bank in Vietnam
to the social community. Bank of the Year 2023 2023
Voted by The Asian Banking and Voted by World Economic Voted by Euromoney
Finance Magazine

16 2023 ANNUAL REPORT www.sacombank.com.vn 17

 BUSINESS NETWORK HCMC
30 Branches
152 Transaction offices 202 ATM 48 CDM 3 STM
By the end of 2023, Sacombank had 566 transaction points in 52/63 provinces and cities
across Vietnam, Laos, and Cambodia. It established and maintained relations with 22 Branches
9,801 agencies of 406 banks in 51 countries and territories worldwide. Furthermore,
SOUTHWEST
87 Transaction offices 192 ATM 61 CDM
Sacombank has 4 subsidiaries specializing in debt management and asset exploitation,
financial leasing, remittance services, and precious metals trading.
11 Branches
SOUTHEAST
48 Transaction offices 116 ATM 20 CDM
Sacombank's extensive network enhances its ability to reach
a large customer base, offering a diverse range of services
to various customer segments nationwide, as well as in Laos 552 Transaction points SOUTH CENTRAL 11 Branches
VIETNAM
41 Transaction offices 51 ATM 26 CDM
984 ATM/CDM/STM
and Cambodia. Particularly, in 2023, Sacombank successfully & CENTRAL HIGHLANDS
launched its initial digital branch model with 5 Smart Teller
Machines (STM) at 4 strategic locations. These feature advanced
amenities and a range of modern technologies such as eKYC,
Face ID, voice-activated transactions, and touch interactions... 9 Branches
Additionally, Sacombank introduced its first Digital Experience
Zone - Digizone - at the Central Branch. Moving forward,
NORTH CENTRAL
38 Transaction offices 46 ATM 24 CDM 1 STM
Sacombank will continue to modernize its network system,
promoting the establishment of digital transaction points to
deliver the most advanced financial technology experiences to 12 Branches
customers. HANOI
49 Transaction offices 55 ATM 14 CDM 1 STM

14 Branches
NORTH
28 Transaction offices 104 ATM 20 CDM

566
Transaction points 9 Transaction points
1,014
CAMBODIA 1 SUBSIDIARY BANKS 9 Branches 25 ATM
ATM/CDM/STM
25 ATM

THAILAND
5 Transaction points
LAOS 1 SUBSIDIARY BANKS 5 Branches 5 ATM
5 ATM
Islands

CAMBODIA

Islands

4
Subsidiaries
Sacombank-SBJ
(Sacombank Jewelry Co., Ltd.)
Sacombank-SBR
(Sacombank Remittance
Sacombank-SBA
(Sacombank Asset
Sacombank-SBL
(Sacombank Leasing Co., Ltd.)
Islands Express Co., Ltd.) Management Co., Ltd.)

18 2023 ANNUAL REPORT www.sacombank.com.vn 19

 ORGANIZATIONAL STRUCTURE ORIENTATION AND
SHAREHOLDERS COMMITTEE
VISION TO 2030
BOARD OF SUPERVISORS Internal Audit

BOARD OF DIRECTORS

Board of Directors'
Committees
Office

CEO

Marketing and Executive Secretary

Councils
Communications Center

PERSONAL GLOBAL DIGITAL HUMAN COMPLIANCE

FINANCE
BANKING MARKETS BANKING RESOURCES SUPERVISION

CORPORATE INFORMATION RISK

OPERATION ADMINISTRATION CREDIT
BANKING TECHNOLOGY MANAGEMENT

REGIONS SUBSIDIARIES SUBSIDIARIES Top 3 digital and Increasing Boosting business Implementing Strengthening
retail banks in owner’s equity growth and internal governance investment in
Vietnam. and implementing efficiency. and risk monitoring human resources
sustainable in line with and cutting-edge
Branches/ financial international technology.
Sacombank Sacombank Sacombank Sacombank Sacombank Sacombank
Regional Office Transaction
Cambodia Lao SBL SBA SBR SBJ restructuring. standards.
Offices

20 2023 ANNUAL REPORT www.sacombank.com.vn 21

 LEADERSHIP TEAM
BOARD OF DIRECTORS BOARD OF SUPERVISORS
Mr. DUONG CONG MINH

Chairman

38 years of experience in Economics -

Finance - Banking
Bachelor of Economics
Joined the Board of Directors on
30 June 2017

Mr. TRAN MINH TRIET

Chief Supervisor

Ms. NGUYEN DUC THACH DIEM Mr. PHAM VAN PHONG 22 years of experience in Economics -
Finance - Banking
Standing Vice Chairman Vice Chairman Bachelor of Economics, Master of Business
cum CEO Administration
43 years of experience in Joined the Board of Supervisors on 30 June 2017
24 years of experience in
Economics - Finance - Banking
Economics - Finance - Banking
Bachelor of Economics,
Doctor of Finance and Banking
Bachelor of Politics, Master of
Joined the Board of Directors
Business Administration
on 20 April 2018
Joined the Board of Directors
on 30 June 2017

Mr. PHAN ĐINH TUE Mr. NGUYEN XUAN VU Mr. VUONG CONG DUC Ms. PHAM THI THU HANG Ms. HA QUYNH ANH Mr. NGUYEN VAN THANH Mr. LAM VAN KIET

Member of BOD Member of BOD Independent Member of BOD Independent Member of BOD Member of BOS Member of BOS Member of BOS

40 years of experience 17 years of experience in 28 years of experience in 30 years of experience 31 years of experience in 36 years of experience in 28 years of experience in
in Economics - Finance - Economics - Finance - Economics - Finance - in Economics - Finance Economics - Finance - Banking Economics - Finance - Banking Economics - Finance - Banking
Banking Banking Banking - Banking - Business Bachelor of Economics and Laws Bachelor of Business Bachelor of Economics, Master
Bachelor of Economics, Bachelor of Economics, Bachelor of Law Development Joined the Board of Administration of Business Administration
Master of Business Master of Finance – Banking Joined the Board of Doctor of Economics Supervisors on 22 April 2022 Joined the Board of Supervisors Joined the Board of Supervisors
Administration Joined the Board of Directors on 22 April 2022 Joined the Board of on 22 April 2022 on 22 April 2022
Joined the Board of Directors on 28 August 2013 Directors on 22 April 2022
Directors on 22 April 2022

22 2023 ANNUAL REPORT www.sacombank.com.vn 23

 LEADERSHIP TEAM (continued)

BOARD OF MANAGEMENT, PERSON IN CHARGE OF CORPORATE GOVERNANCE,

CHIEF ACCOUNTANT

Ms. NGUYEN DUC THACH DIEM Ms. QUACH THANH NGOC THUY Ms. NGUYEN THI KIM OANH Mr. DAO NGUYEN VU Mr. HO DOAN CUONG Mr. NGUYEN BA TRI Mr. HOANG THANH HAI

Standing Vice Chairman cum CEO Deputy CEO cum Director Deputy CEO cum Director Deputy CEO cum Director Deputy CEO Deputy CEO cum Director Deputy CEO cum Director
(Responsible for general management of Operation Division of Global Markets Division of Credit Division of HCMC Region of North Region
(Responsible for Risk Management
of all activities of the Bank and directly (Responsible for Operation Division, (Responsible for (Responsible for Credit Division, Division, Compliance Supervision
overseeing Corporate Banking and Sacombank Cambodia) Global Markets Division) Sacombank-SBL) Division, Sacombank-SBA)
Digital Banking Division, Marketing and Chairman of Sacombank-SBJ
Communications Center)

24 years of experience in 32 years of experience in 24 years of experience in 32 years of experience in 28 years of experience in 30 years of experience in 27 years of experience in
Economics - Finance - Banking Economics - Finance - Banking Economics - Finance - Banking Economics - Finance - Banking Economics - Finance - Banking Economics - Finance - Banking Economics - Finance - Banking
Doctor of Finance - Banking Master of Business Master of Financial Economics Master of Business Master of Business Master of Business Bachelor of Economics
Joined Sacombank in 2002 Administration - Banking Administration Administration Administration Joined Sacombank in 2002
Joined Sacombank in 1992 Joined Sacombank in 2000 Joined Sacombank in 1993 Joined Sacombank in 1995 Joined Sacombank in 1996

Mr. HA VAN TRUNG Mr. NGUYEN MINH TAM Mr. LE DUC THINH Mr. DUONG THANH TUAN Mr. HUYNH THANH GIANG
*Mr. VO ANH NHUE
Deputy CEO Deputy CEO cum Director Deputy CEO cum Director Deputy Head of BOD Office cum Chief Accountant
Deputy CEO cum Director of
(Responsible for Administration of Personal Banking Division of Human Resources Division Person in Charge of Corporate
Governance Administration Division
Division, Planning Department, Capital (Responsible for Personal Banking (Responsible for Human Resources
Management Department) Division, Sacombank-SBR) resigned as of 15 September 2023
Division, Sacombank Lao)

*Mr. BUI VAN DUNG

27 years of experience in 29 years of experience in 28 years of experience in 27 years of experience in Banking 29 years of experience in Deputy CEO
Economics - Finance - Banking Economics - Finance - Banking Economics - Finance - Banking Bachelor of Engineering Economics - Finance - Banking (Responsible for Information
Master of Finance and Banking Master of Economics Master of Business Economics, Bachelor of Law Master of Economics Technology Division)
Joined Sacombank in 2004 Joined Sacombank in 1995 Administration Joined Sacombank in 2007 Joined Sacombank in 2012
Joined Sacombank in 1996 resigned as of 01 April 2024

24 2023 ANNUAL REPORT www.sacombank.com.vn 25

28 Report from the CEO
32 Business performance in 2023
37 Orientation in 2024
38 Restructuring plan report
40 Performance of Subsidiaries and Subsidiary banks
42 Building a solid foundation for effective risk management
and sustainable business growth
BUSINESS
46 Digital banking - Outstanding puzzle piece of Sacombank
50 Sacombank through the lens of international organizations PERFORMANCE
52 5 touchpoints on the employee engagement at Sacombank
REPORT
 REPORT FROM THE CEO
Dear valued Shareholders, Investors, Customers, MAINTAINING STABLE AND EFFECTIVE GROWTH
Partners, and all Employees,
From 2016
In 2023, Vietnam utilized its geographic advantages, During the execution of the Restructuring Plan,
to the present
resources, and effective diplomatic strategies to Sacombank ensures stable growth and deals
achieve significant integration into the global supply decisively with bad debts and legacy assets as
chain, assimilating knowledge and technology, and outlined. Furthermore, we actively pursue non- Total assets increased,
establishing itself as a prime investment destination credit sectors by developing modern payment and profits from services
methods, foreign exchange business, and
in the Asia-Pacific region. At this juncture, Vietnamese
delegation to diversify revenue structure, mitigate doubled
enterprises must strengthen their capacities to
transcend outsourcing and participate in high-value- risks, and ensure sustainable growth.
added processes. At this stage, there is a critical
requirement for the banking system's support as a From 2016 to the present, Sacombank has
conduit for capital to facilitate business operations. As achieved impressive business growth. Prominent
financial institutions, we must improve our competitive key performance indicators include: Total assets
edge, continually striving to be a strong support for increased, and profits from services doubled. Profit Profit before tax
before tax increased by 62 times, and the NPL ratio
businesses and the nation's development.
reduced to 2.1% from 6.8%. increased by 62 times
Over the past year, 'strengthening internal capabilities'
has consistently been a focal point in Sacombank's Sacombank prioritizes enhancing risk management
development strategies. Despite market challenges, capabilities by proactively narrowing certain
Sacombank has stood out through effective and activities by Government and State Bank of Vietnam
proactive activities. We have achieved or even directives, such as abstaining from corporate
bond trading and refining insurance operations. NPL ratio
surpassed nearly all growth targets set by the
Shareholders Committee. We have fully provisioned Currently, Sacombank holds no corporate bonds, reduced to 2.1%
even as collateral for lending.
Ms. Nguyen Duc Thach Diem - Standing Vice Chairman cum CEO
100% for unrecovered VAMC bonds. This action has from 6.8%
and Executive Secretary
aided Sacombank in enhancing both its asset quality
and profitability shortly.

Total assets surpassed Total deposits ENHANCING CUSTOMERS’ DIGITAL EXPERIENCE

Loans reached nearly
VND 674 trillion, exceeded VND 578
VND 483 trillion, Data integrity remains the top priority as Sacombank for global transactions... We're at the forefront of AI
marking a 13.9% trillion, reflecting an
growing by 10%. implements its new data center infrastructure. At the implementation on our keypad-free customer care
increase. 11.3% rise.
same time, we continuously innovate and upgrade our hotline, enabling voice recognition and responsive
core banking system. service to minimize wait times.
NPL maintained at 2.1%. Compared to previous years, Profit before tax
Sacombank's NPL slightly increased but restrained and reached VND 9,595 This serves as the foundation for Sacombank to Digital transaction customers account for 70% of total
remained at a moderate level compared to the market. billion, up 51.4%. conduct in-depth research and understand of current customers, and online channel transaction
customer behaviors, thereby formulating appropriate volume has surpassed VND 6.4 quadrillion, marking a
product development strategies. We've introduced 10% yoy.
a new-generation website with a smart interface for
easy content access.
Other profit targets such as ROE (Return on Equity) and ROA (Return on Assets) were maintained
at a high level of 18.30% and 1.22% respectively.
Through the integrated chatbot, inquiries are almost
instantly addressed, offering highly personalized
Digital transaction customers account
responses tailored to each context. Additionally, for 70% of total current customers,
These accomplishments reflect Sacombank's unwavering dedication to operational safety and its aspiration to
Sacombank continuously provides personalized and online channel transaction volume
financial solutions such as: Apple Pay service tailored has reached more than VND 6.4
be a foremost, versatile modern retail bank in Vietnam. Sacombank is achieving this goal through four strategic for active customers, the Sacombank Platinum
pillars: Maintaining stable and effective growth; Enhancing customers’ digital experience; Improving human American Express card crafted for travel enthusiasts, quadrillion, marking a 10% yoy.
resource capabilities; Promoting community development. rapid international money transfers within 4 hours

28 2023 ANNUAL REPORT www.sacombank.com.vn 29

 REPORT FROM THE CEO (continued)
DEVELOPMENT ORIENTATION IN 2024
In 2024, Vietnam continues to grapple with persistent challenges, yet international organizations forecast
optimism with GDP growth projected between 5.5% and 6.5%. Key drivers include expanding trade
TALENT TRAINING AND DEVELOPMENT opportunities facilitated by adept diplomatic policies, economic advantages in agriculture, a gradual uptick in
private investment, and a promising recovery in industrial production. Capitalizing on these trends, Sacombank
Alongside business operations, Sacombank actively Currently, 90% of Sacombank's HR processes, from formulates a development strategy based on five main objectives:
fosters a digital mindset and corporate culture onboarding to offboarding, are fully digitized.
transformation. With outstanding HR policies,
attractive remuneration, and a leading work Sacombank nurtures a supportive work Enhancing operational efficiency and sustainable development: With over 32 years of
establishment and growth, Sacombank possesses robust internal capabilities and amassed a

1
environment, Sacombank has been recognized environment that fuels innovation and creativity,
by HR Asia for three consecutive years with the evidenced by over 130 staff-generated 'golden' customer base of 18 million. Alongside its SME market dominance, Sacombank expands into large
"Best Companies to Work for in Asia" and "Digital ideas in the past year, many of which have led corporate and retail segments with personalized, multifunctional, and streamlined products.
Transformation" awards. to successful business solutions. Sacombank We also prioritize green credit, consumer credit, and credit in priority sectors, ensuring
encourages proactive training and self-learning, increased revenue while controlling credit risks and optimizing capital. At the same time, we pay
During HR Asia's evaluation, Sacombank employees resulting in over 667 million training hours special attention to environmental protection issues to achieve higher levels of ESG practices.
expressed high satisfaction levels across the Core completed by over 18,000 employees in the past year.
(strategy, structure), Self (individual), and Group
Accelerating and making breakthroughs in digital banking operations: Sacombank

2
(team) criteria, surpassing the market average.
is perfecting its omnichannel banking platform and advancing open banking via multi-application
connectivity (API) to broaden convenient payment services. Additionally, it's continuously
enhancing customer service through AI-driven personal data analysis, aiming to onboard 3.5
million new customers with an 85% customer satisfaction rating.
PROMOTING COMMUNITY DEVELOPMENT
In alignment with global trends, Sacombank embraces sustainable development as its operational goal,

3
formulating specific strategies based on ESG standards. In which: Innovating management and supervision methods: Following the successful adoption
of BASEL III, Sacombank is enhancing its alert system and system-wide risk management
standards. It's also bolstering risk management solutions for the IT sector and fraud prevention,
E - Environment: We advance process digitization Enhancing management capacity and labor
ensuring growth aligns with operational safety objectives.
and reduce paper consumption in banking operations productivity; Risk management according to
while increasing employee awareness and promoting international standards. In parallel, Sacombank

4
behavioral changes regarding environmental issues. will accompany the Government towards Net Zero Optimizing technology and human resource quality: We continue pursuing a
Emissions by 2050. Sacombank is confident that comprehensive digital transformation strategy that encompasses not only process but also
its sustainable development strategy will positively mindset. This involves enhancing workflow automation and upskilling our workforce to be
S - Social: Sacombank has partnered with provinces
impact the community, the environment, and build proficient in digital technologies.
and cities for over 32 years to implement a range
a solid foundation for future generations.
of social welfare programs. Iconic initiatives like
"Warmth of Spring”, “Nurturing Dreams” Scholarship, Ensuring shareholder benefits: Sacombank understands shareholder concerns regarding

5
and “Running for Community Health with Sacombank” the prolonged absence of dividends. As a restructuring bank, any form of dividend distribution
stand out. Furthermore, Sacombank leads in offering must receive approval from the State Bank of Vietnam’s approval to ensure industry stability.
preferential loan packages to boost economic growth Sacombank's effective 7-year journey has elevated its market position and STB stock value,
and support businesses. reflecting shareholder trust. With retained earnings surpassing VND 18,000 billion, Sacombank
submits distribution plans annually for State Bank of Vietnam approval, committing to sustain
G - Governance: Sacombank strengthens oversight growth and expedite restructuring for timely dividend distribution.
and monitoring of unit activities, fostering professional
ethics awareness among its over 18,000 staff systemwide.
Additionally, it is restructuring and specifying risk I believe that with strong leadership from the Board of Directors, responsible execution from the Board of
management frameworks and governance strategies Management, unity among our staff, and trusted partnerships with Customers, Shareholders, and Partners,
to enhance safety, transparency, and accountability, Sacombank will grow stronger and more confident, progressing further. On behalf of the Board of Management,
affirming shareholder, customer, and partner trust. I express profound gratitude for the insightful leadership and dedication of the generations of leaders and
employees of Sacombank. I also extend sincere thanks to our Partners, Shareholders, and Customers for their
Sacombank will persist in its sustainable unwavering trust, support, and partnership in overcoming challenges and building a resilient, pioneering, and
development direction in the following stages: responsible Sacombank.
Comprehensive digital transformation to optimize
customer experience and operational efficiency; Best regards.
Standing Vice Chairman cum CEO
NGUYEN DUC THACH DIEM

30 2023 ANNUAL REPORT www.sacombank.com.vn 31

 BUSINESS PERFORMANCE IN 2023
Amid challenging macroeconomic conditions, Sacombank's business performance
continued to grow positively. Scaling up the bank business in line with improved
asset quality. Optimizing and balancing the structure of capital and capital usage,
Driving credit for business and consumer needs
promoting modern services, and engaging in self-trading to increase revenue. Profit Loan/Lending
before tax improved significantly and surpassed the plan, serving as a driving force (VND billion) Sacombank’s loan outstanding balance reached VND 482,731 billion,
for enhancing financial capacity. Operational safety ratios were maintained within reflecting a 10% increase. In 2023, Sacombank disbursed a total of VND
131,500 billion in preferential interest rate loan packages to support
acceptable limits with characteristics becoming more sustainable.

482,731
customers and stimulate credit growth. Of this, VND 75,500 billion was

438,752
388,216
340,572
allocated to individual customers at a 6% annual interest rate, and VND
56,000 billion was for corporate customers at a 3% annual interest rate.

Sacombank’s loan portfolio continued to prioritize business and

The business scale and quality of assets continued to improve production activities as well as consumption spending, accounting for
79.8%, an increase of 0.3% in proportion. Amid an unstable business
The total assets of Sacombank continued to improve in both quantity
Total assets 2020 2021 2022 2023
environment and a global economic slowdown, NPL ratio was effectively
and quality, reaching VND 674,390 billion, reflecting a 13.9% increase and controlled at 2.1%
(VND billion)
achieving 103% of the target set by the Shareholders Committee. Of which,
earning assets rose by 14.3%, increasing their proportion of total assets to
674,390

89.6% from 89.3% (at the beginning of the year), mostly from loans (10%) and
591,908

government bonds (18.3%). Highly liquid asset categories also increased by

521,117
492,516

47.7% compared to the previous year, contributing an additional 4% to the

total assets, thereby enhancing safety measures.
Low-risk, highly liquid asset portfolio

GOVERNMENT BONDS Given the volatile market, Sacombank strategically broadened and
Sacombank is gradually adopting Basel standards for asset-liability

63,102
optimized its investment portfolio to optimize and enhance asset quality.
management, conducting regular reviews and assessments of significant
risks and fluctuations in the risk profile under stress scenarios to prepare
VND billion The total debt securities portfolio (excluding VAMC bond) reached VND
capital adequacy plans. Additionally, asset portfolios are being managed to
2020 2021 2022 2023 72,812 billion, up by 17.6%. Of which, Government bond investments
achieve a balance between efficiency and security, while also maintaining s,
compliance with regulatory safety ratios.
18.3% increased by 18.3% and zero investment in corporate bonds. Total income
from investment was VND 1,857 billion, up 25%yoy.

Sustainable capital structure

Total deposits Total deposits reached VND 578,029 billion, marking an 11.3% increase
(VND billion) and achieving 101% of the plan assigned by the Shareholders Committee.
Market-base funding rose by 12%, comprising 90.8% of total deposits and
capturing 3.9% of the market share in the banking sector. The capital TOTAL NET INCOME Stabilizing core business income
578,029

mobilization structure is being restructured to enhance diversity and

26,173
519,132
464,521

efficiency, aiming to reduce capital costs and lower lending rates to

447,369

Total income reached VND 26,173 billion, up 0.12% from the previous
better support customers. Capital mobilized from the market expanded year. Of which, interest income rosed 28.7%. Net service income reached
by 5% to improve diversity in capital. Liquidity and solvency ratios were VND billion VND 2,618 billion, primarily from payment and card services. FX business
continuously and positively improved within a high safety limit. 0.12% generating an income of VND 1,100 billion, up 3.5%.

Thanks to the improved profit, owner’s equity reached VND 45,734 billion,
up 18.4% from the start of the year. Due to significant profit growth, the
2020 2021 2022 2023 bank's shareholders' equity reached VND 45.734 trillion, marking an 18.4%
increase from the beginning of the year.

32 2023 ANNUAL REPORT www.sacombank.com.vn 33

 BUSINESS PERFORMANCE IN 2023 (continued)

Service income by product line Emphasizing operational cost control

CARDS: Card service saw good growth in the number of customers and transaction volumes, Sacombank CIR
maintained its leading positio in payment sales in the market and received many prestigious awards. Driving down unnecessary costs, prioritizing business costs, and investing

49.2%
Sacombank's range of card products not only offers diverse features and benefits but also undergoes continual in technologies in line with Sacombank’s digital transformation strategy,
personalization to align with customers' evolving spending habits and preferences. operating costs increased by 8.9%. Initial technology investments are
costly while the rate of return was low, CIR was at 49.2%.
OUTSTANDING CARD CARD
CARDS CREDIT FEES PROFIT
FACILITIES

7.9
million cards
22,780
VND billion
841
VND billion
2,628
VND billion
Profit before tax
(VND billion)
Profit before tax delivered strong results

Sacombank, in 2023, made 100% provisions for the portfolio of outstanding

9,595
2.9% 25.9% 0.4% 34.2% VAMC-related assets, nearly completing financial obligations as per the
restructuring scheme stated. Consolidated profit reached VND 9,595

6,339
billion, up 51.4%, achieving 101% of the plan. ROA and ROE were 1.22% and

4,400
18.30% respectively which was accelerate compared to 2022 (0.31% and

3,339
DIGITAL BANKING: Sacombank's digital transaction volume continues to grow strongly, driven by enhanced
conveniences, modern payment methods, and diverse partnerships. 4.47%).
2020 2021 2022 2023
TRANSACTION SALES SERVICES
USER ONLINE VIA DIGITAL CHANNELS INCOME

8.9
million users
ONLINE DEPOSIT 6.4
VND quadrillion
NUMBER OF
SUCCESSFUL TRANSACTIONS
40
VND billion
DEBT
Proactively recovering and handling bad debt amid bad debts
in the market increased
BALANCE VIA DIGITAL CHANNELS RECOVERY/
19.8%
21,275 508
10% 24.1% HANDLING

8,000
Drastically recovered and handled nearly VND 8,000 billion of bad debt
and legacy assets. The legacy asset/total assets ratio was reduced to 3%.
VND billion million transactions Strengthened inspection and supervision of credit quality, controlled
36.9% 51% VND billion
credit exposure with inherent risk, and monitored structural debt. Bad
debt was maintained at 2.1%, complying with the provisions of regulation.
BANCASSURANCE: The insurance market faced PAYMENT: Domestic payment volume grew, while
challenges as consumer confidence dropped. international payment volume slightly increased
Sacombank focused on reviewing and consolidating driven by weaker commercialisation. Service fees In compliance with prudential ratios required by the State Bank of Vietnam
its insurance consulting services in the from payment continued to be positive, delivering a
implementation of legal regulations, transparency, significant contribution to total service revenue. Strictly controlled operational safety ratios to ensure operational goals and focus on controlling risky assets,
and principles as a solid foundation for recovery and balancing safety and efficiency goals. CAR reached 9.11% (≥8% as regulated).
growth in the future.

TRANSACTION INTERNATIONAL
Consolidated CAR NPL ratio
VOLUMES PAYMENTS
INSURANCE
PREMIUM
FYP
VOLUME 20,853 Transaction 19,757 9.11% 2.10%
796 853
VND trillion volumes USD million
15.5% 3.7%
VND billion VND billion
54.9% 53.2% 374
VND billion
Service
fee
399
VND billion
82.77% 18.60%
LDR ratio Liquidity Ratio
17.2% 12.2%
34 2023 ANNUAL REPORT www.sacombank.com.vn 35
 BUSINESS PERFORMANCE IN 2023 (continued) ORIENTATION IN 2024
Number of customers
(million customers)
.8% Maintaining sustainable customer growth TOTAL ASSETS PROFIT BEFORE TAX
by 14
10% 10%
i n g
eas
Incr Continuously innovating and capturing the latest development trends,
18.1

Sacombank has been gaining the trust of 18 million customers. Maintaining

15.8

customer engagement and satisfaction

2022 2023

DEPOSITS* CREDIT*

10% 11%

15%
NPL RATIO

≤2% LABOR PRODUCTIVITY

2 APP
OMNICHANNEL
(Individual and
Corporate customers) PROMOTING DIGITAL

≥5 PRODUCTS-SERVICES/ TRANSACTION POINTS

OUTSTANDING DIGITAL
SOLUTIONS

3.5MILLION
NEW CUSTOMERS
≥85%
NET PROMOTER
SCORE (NPS)

(*) Mobilization – Credit growth will be adjusted by the credit cap granted by the State Bank of Vietnam.

36 2023 ANNUAL REPORT www.sacombank.com.vn 37

 RESTRUCTURING PLAN REPORT
1
Completing the restructuring of the operating model according to the Three Lines of Defense
Model stipulated in Circular No 13, improving management - administration - supervision line based
After 7 years of implementing the Restructuring Plan, Sacombank has resolved a majority on principles of publicity - transparency, and respect for the law. Restructuring organizational
of shortcomings and completed almost all key goals. Sacombank has recovered and settled structure towards a streamlined and professional model in line with the digital business model.
nearly 80% of bad debt and legacy assets, making full provisions according to current
regulations, including full 100% provisions for debts related to VAMC. Sacombank is

2
Recovering and settling bad debt and outstanding assets worth VND 95,818 billion, of which
confident in completing the restructuring plan ahead of schedule and is ready for a strong VND 74,802 billion is under the Restructuring Plan. The outstanding amount that needed to
be settled was reduced by 78.3% and the proportion of total assets was reduced by 25.1% and
development phase. current at 3%. Processing VND 21,576 billion in accrued interest, making full provisions according
to regulations, and making full 100% provisions for debts sold to VAMC.

3
Completely settling violations of cross-ownership and capital contributions, completing the
selling of treasury shares to enhance financial strength. Completing recommendations in
Completed 2023 inspection and supervision reports and complying with legal regulations.
settlement of
9,595
78.3%
of outstanding
VND billion

4 Developing a broad-based business model, with the annual average business scale increasing
by 10-13%, and profit rising from VND 156 billion (2016) to VND 9,595 billion (2023).

debts under

5
restructuring plan Operational safety indicators comply with regulations and are continuously improved
towards safety and sustainability. Among these, the consolidated CAR ratio stipulated in
Circular 41 has been maintained above 9% despite charter capital being unchanged since the
implementation of the Plan.

6
Restoring Moody’s ratings to pre-merger level. Promoting brand positioning in the market,
Made full

100%
being listed among the world’s Top 500 banking brands; gaining shareholder and partner trust
s
and credibility; strengthening cooperation with financial institutions; and expanding customer
ime
base to over 18 million customers.

7
provisions
62 t

Accelerating information technology development, creating a solid foundation for

comprehensive digital transformation; applying modern technologies, and providing
for debts pioneering and advanced and multi-utility products and services that are well received by
sold to VAMC customers.
by
ed

8
e
as

i ncr Implementing and applying risk management standards by Basel II/Basel III, obtaining and
rofi t maintaining ISO certification on quality management and other advanced safety certificates.
P

9
Focusing on restructuring the network; standardizing the branding and restructuring all
CAR

>9%
franchise networks in depth with synchronous mechanisms and solutions, creating conditions
2016 for the strong development of scale, business efficiency, and human efficiency across the

156
VND billion
system.

10 Enhancing productivity and human resource quality towards improving digital capability,
digital mindset and a new way of working align with modern trends.

38 2023 ANNUAL REPORT www.sacombank.com.vn 39

 PERFORMANCE OF SUBSIDIARIES
AND SUBSIDIARY BANKS SACOMBANK JEWELRY CO., LTD. (SACOMBANK-SBJ)
Charter capital: VND 250 billion
In 2023, Subsidiaries/Subsidiary banks continued to focus on restructuring and shaping REVENUE GROWTH

>50%
SBJ earned positive results with revenue increasing by over 50%
their new business strategies toward professionalizing core businesses, developing new compared to the previous year, recovered the corporate-gift product line,
potential businesses, and maximizing support for the Parent Bank. A majority of units and made breakthroughs in exporting fine art jewelry. However, economic
continued to grow horizontally and efficiently, establishing sustainable development impact led to a decline in jewelry and gift demand, along with fluctuations
platforms for the coming period. However, some units faced difficulties due to macroeconomic in COGS, profit before tax remained negative at VND 8.2 billion.

and operational transitions.

SACOMBANK LAO
SACOMBANK ASSET MANAGEMENT CO., LTD. (SACOMBANK-SBA)
Charter capital: VND 1,083.9 billion
Charter capital: VND 500 billion
NET INCOME FROM Lao economic growth slightly recovered meanwhile the headwind is
PRICE APPRAISAL 2023 marked a strong shift for SBA when it focused on a restructuring TOTAL REVENUE that Lao Kip continued to depreciate by 14%. Total capital mobilization

125.5
INCREASED BY plan. It provides support for the Parent Bank in terms of price appraisal, reached VND 1,917 billion, with VND 1,379 billion coming from economic

186%
goods supervision, debt recovery, and research and development of debt organizations and individual customers, up 7.7%, and loans reached VND
trading. All business aspects enjoyed significant growth, and revenue VND billion 1,433 billion, slightly down 0.7%. However, business performance reflected
from price appraisal rocketed by nearly 186% compared to 2022. Profit improvement after restructuring, total revenue of VND 125.5 billion,
before tax reached VND 42.6 billion, slightly down from the previous year up 34.9%. At the same time, overdue and bad debts were significantly
due to the stagnation of warehousing services. recovered, promoting the reversal of provisions, and profit before tax
reached VND 32.5 billion.

SACOMBANK CAMBODIA PLC

SACOMBANK LEASING CO., LTD. (SACOMBANK-SBL)
Charter capital: VND 1,644 billion
Charter capital: VND 300 billion
PROFIT BEFORE TAX In 2023, Sacombank Cambodia Plc strengthened customer segment
Despite the unfavoured condition, SBL achieved positive growth

183.8
TOTAL REVENUE restructuring, developing individual customer to enhance capital

329
and maintained its leading position in the financial leasing market. sustainability. Total capital mobilization reached VND 4,335 billion, with
Outstanding debt increased by 16.5%, net income increased by 37.6% VND 4,167 billion coming from economic organizations and individual
VND billion compared to the previous year. Additionally, credit quality was well customers, down 0.6%yoy; loans reached VND 4,762 billion, up 1.4%yoy.
controlled to ensure continuous business performance, profit before tax VND billion
Main sources of revenue remained stable at VND 329 billion, however,
reached VND 183.8 billion, up 5.5% from the previous year. the policy of cease debt restructuring by the National Bank of Cambodia
created an impact on Sacombank Cambodia PLC’s business performance.
Profit before tax reached VND 94.4 billion, down from the previous year
due to increasing provision costs

SACOMBANK REMITTANCE EXPRESS CO., LTD. (SACOMBANK-SBR)

Charter capital: VND 15 billion
In 2024, Subsidiaries/Subsidiary banks will continue to focus on strengthening
REMITTANCE In 2023, SBR successfully maintained and retained partners, developing
all post-restructuring activities, consolidating core businesses, developing
3.7
USD billion
the remittance market from labor exports. Revenue reached 3.7 USD
billion, almost twice as much as in 2022. In addition, SBR diversified its
transaction channels, applied technology, shortened payment time, and
new businesses, improving business performance, and enhancing support for
the Parent Bank. At the same time, they will accelerate the digitalization of all
ensured seamless and safety. Profit before tax reached VND 11.5 billion,
up 102% from the previous year.
business operations to optimize processing time, enhance customer experience,
improve risk management efficiency, and increase productivity and efficiency.

40 2023 ANNUAL REPORT www.sacombank.com.vn 41

 BUILDING A SOLID FOUNDATION
FOR EFFECTIVE RISK MANAGEMENT ENSURING OPERATIONAL SAFETY RATIOS
Sacombank’s capital adequacy ratio (CAR) always hovers around 9%, ensuring a balance between operational

AND SUSTAINABLE BUSINESS GROWTH

safety and business performance. As a credit organization undergoing a restructuring process, Sacombank is
not allowed to increase its capital. Nevertheless, it continues to promote business growth while maintaining
CAR at a safe level, reflecting a flexible and closely managed approach to administration.

Sacombank ensures sound liquidity meeting all payment requirements, even under normal or abnormal
conditions. At the same time, it maintains a balance between capital and its usage and controls net interest
Sacombank’s risk management system has been established since its inception. margin (NIM) in line with the market. Limits/restrictions as stipulated by the State Bank of Vietnam are well
After 32 years, Sacombank has built a solid risk-mitigating foundation for sustainable controlled, ensuring compliance at any time.
business growth, playing a role in overall success. In 2023, Sacombank marked an
important milestone with remarkable achievements in risk management.
CREDIT RISK MANAGEMENT
The domestic and international economic impact led to business closures, bankruptcies, and personal economic
IMPROVING THE RISK MANAGEMENT SYSTEM hardships, however, Sacombank maintained good credit quality; effectively handling overdue debts, bad debts,
and outstanding debt, and supporting customers to overcome financial hardship. Remarkable results include:
In December 2023, Sacombank obtained risk
management certification of Basel III standards
from EY Consulting Vietnam JSC, to become one of Effectively operating an early
the few banks in Vietnam pioneering the adoption of Monitoring credit quality within the warning alerts system in credit
advanced risk management standards. Since 2021, risk appetite limit. risk management.
Sacombank officially applied Basel II standards,
improving its risk management system, enhancing
safety and sustainability. Basel, at Sacombank, is
not just a set of written regulations but is applied Credit risk management ratios: Remote monitoring and
in all business aspects, equipped with advanced Completing 100% of the standards management to help branches
technology systems. set by the State Bank of Vietnam and and transaction offices detect
Sacombank’s risk appetite. and adjust faults promptly.
Sacombank applies Basel III standards in establishing
risk-oriented planning with risk-adjusted return on
capital (RAROC), balancing profit and risk, changing
traditional business mindset; optimizing costs of
capital control and liquidity. In addition, automation
in reporting, information disclosure, and internal
governance reports according to Basel III standards
helps Sacombank manage safety indicators promptly.
This aligns with Sacombank’s digital transformation Ms. Nguyen Thuy Duong - President of EY Vietnam (right) awarded EARLY DETECTION AND PREVENTION OF RISK THROUGH A REMOTE MONITORING
roadmap, utilizing big data and high technology in Certificate of Completion of Basel III to Ms. Nguyen Duc Thach
Diem – Standing Vice Chairman cum CEO of Sacombank at the 32nd
SYSTEM
business activities and risk management.
anniversary ceremony of Sacombank.
Given the significant increase in customers and transactions, Sacombank focuses on controlling risks to identify
To accelerate restructuring and complete Basel III In addition, Sacombank has been implementing the and warn of possible risks by strengthening its remote monitoring system. In 2023, the bank strengthened the
simultaneously, Sacombank, in a short period, has International Financial Reporting Standard (IFRS9) implementation of its '24/7 Surveillance' solutions, adjusting monitoring criteria as needed to prevent high-risk
made greater efforts than its peers. It underpins on schedule, to become one of the pioneering transactions and facilitate daily oversight via direct data access.
Sacombank's inner capabilities to achieve multiple banks in Vietnam to comply with this standard. It is
goals. The implementation of Basel III positions Sacombank’s strategy to apply advanced risk and In 2024, fraud crimes have become increasingly sophisticated. Being aware of this, Sacombank targets to promote
Sacombank, underpinned internal strength to financial management standards into operations, advanced innovation and flexibility, apply modern digital technology in risk management, prevent fraud through the
consolidate its capacity, and to complete the building a solid foundation for effective, safe, and implementation of the fraud prevention project. This project assists in detecting and timely removing the presence
restructuring process. sustainable business growth. of complicated fraud.

42 2023 ANNUAL REPORT www.sacombank.com.vn 43

 BUILDING A SOLID FOUNDATION
FOR EFFECTIVE RISK MANAGEMENT
AND SUSTAINABLE BUSINESS GROWTH (continued)

IMPROVING RISK MANAGEMENT CULTURE

EXCELLENCE CREDIT ACTIVITIES
Sacombank has identified risk management as an
Sacombank has been honored “Best Financial Institution on Credit Information Report 2023” by the State Bank obligation, responsibility, of all employees end-to-end.
of Vietnam. In addition, with the CIC H2H system, Sacombank has processed nearly 1.2 million credit profiles in Only when all 3 lines coordinate synchronously and
2023, ensuring effective credit risk management. effectively can Sacombank operations be ensured to
be sustainable and safe.
Media communication of risk management culture
MANAGING RISK IN DIGITAL TRANSFORMATION A series of in-person and online training programs, is diversified in various forms such as: the warning
centralized training, seminars, contests, etc. have letter, professional ethics, code of conduct, fraud
Digital transformation is an inevitable been organized to enrich professional skills and risk stories, legal topics, market analytics, and forecasts,
trend in the market and the banking sector, management culture. video of simulated scenarios, talk shows, etc.
Sacombank’s risk management system is
equipped with technology solutions including:
Developing CIC H2H system to improve
credit information efficiency; improving the In 2024, Sacombank has set many breakthrough plans to boost risk management efficiency and
adipiscing elit. Pellentesque
Lorem ipsum dolor sit amet, consectetur adipising elit. Pellentesque m ipsum dolor sit amet, consectetur

management reporting system to be faster, operational safety. Some key objectives include:
more intuitive, and aesthetically pleasing;
implementing a fraud prevention project;
applying digital communication channels for Building standards for risk
risk management, etc. management and creating a risk
Building a bank-wide credit risk mitigation framework applicable
warning system.
1 to transaction offices, branches,
and professional divisions at the
Headquarter.

2
Deploying a fraud prevention
system.
3 Strengthening IT risk management
solutions.

4
Developing management reporting
tools.
5
Reducing incidents and faults at work.

44 2023 ANNUAL REPORT www.sacombank.com.vn 45

 At Sacombank, digital banking is not simply about digitalized banking services but
encompasses a digital mindset, vision, and solid foundation.

DIGITAL BANKING FROM CHANGING YOUR MINDSET

OUTSTANDING PUZZLE PIECE OF SACOMBANK

Regarding digital transformation in the banking sector, Ms. Nguyen Duc Thach Diem – Standing Vice Chairman
cum CEO of Sacombank said: ““Digital transformation requires corresponding digital capabilities from an
organization. It is not just about new technology projects, it requires changing mindsets, business models and
processes, and improving digital skills and capacity to success”.

Sacombank has been early focussing on digital transformation. In recent years, the bank has placed a strong
emphasis on developing comprehensive digital banking. This aim is to deliver customer experiences, enhance
labor productivity, and improve business performance.

Sacombank has allocated a budget and human resources to deploying digital transformation projects even
though the bank is under a post-merger Restructuring Plan starting in 2017. Many important projects have
positively impacted to the bank’s performance, including the T24-R17 Core Banking system; Credit initiation,
the loan origination system (LOS); SAP SuccessFactors solution, etc. Sacombank has also applied new working
methods such as Agile, data-driven decision-making, management of change, etc. to speed up the process of
launching products-services.

A digital mindset and robust technological foundation have enabled Sacombank to develop a multi-utility,
digital banking ecosystem with superior user experience.

THE MULTI-UTILITY DIGITAL BANKING ECOSYSTEM

Bank cards are the starting point in the progress of digitalization in banking services towards a cashless
payment trend.
2023 is remarked the 20th anniversary of Sacombank launching its first payment card. This significant milestone
reflects Sacombank’s ongoing efforts to develop a card system that meets the diverse needs of customers.
Through partnerships with card organizations such as NAPAS, Visa, Mastercard, UnionPay, JCB, and American
Express, Sacombank has continuously pioneered launching cards with attractive benefits, taking part in the
smart consumption trends.
From the first card with magnetic stripe technology, Sacombank has upgraded to EMV chip card technology
which offers high security through advanced data storage and encryption capabilities. Next, Sacombank has
applied contactless technology – touch to pay. In addition to physical cards, Sacombank has also introduced
virtual cards.

Since 2023, Sacombank has cooperated with

international card organizations to deploy
“3D Secure online payment transaction
authentication” (Sacombank 3D-Secure). This
is an enhanced security authentication layer
for online payments, protecting the interests of
cardholders and e-commercial businesses.
Digital transformation is not just about new technology projects, but about
mindsets, business models and processes, and digital skills and capacity 2023 was the 10th consecutive year Sacombank
to succeed. achieved PCI DSS Certification (Payment Card
Industry Data Security Standard), a globally
recognized standard for data security in
Ms. Nguyen Duc Thach Diem payment card transactions. This is the highest
Standing Vice Chairman cum CEO Payment Card Industry Data Security Standard
administered by the Security Standards Council.

46 BÁO CÁO THƯỜNG NIÊN 2023 www.sacombank.com.vn 47

 DIGITAL BANKING - OUTSTANDING PUZZLE
As bank cards gained popularity, the launching of Sacombank has outlined its direction for digital banking
the e-banking model featuring Internet Banking in the future, focusing on redesigning the entire
and Mobile Banking marked another milestone in customer financial experience journey to simplify

PIECE OF SACOMBANK
digital banking. This enabled customers to embrace operations and minimize transaction time.
proactive financial management practices.
In particularly, the bank will enhance its Omnichannel
(continued) This service caters to both individuals and businesses, banking platform, continue developing the Open Banking
addressing a wide range of financial needs including model through API connections to expand unique features,
account management services, quick money and continuously improve customer services through
transfers, deposits to securities trading accounts, artificial intelligence-driven personal data analysis.
settlement to the state budget, port charges, wages
and salary payment, batch payment, international
payment, currency conversions, etc. foreign exchange CREATING VALUES THAT GO BEYOND
transactions with spot rates. EXPECTATIONS
A significant turning point in the digital banking journey
Thanks to continuous efforts in digital transformation
was Sacombank Pay launching in 2018 as a “pocket bank”.
and digital banking development, Sacombank has been
With a friendly interface and simple actions, users can
honored with prestigious awards by reputable domestic
actively manage their finances and conduct transactions
and international organizations for many years.
at anywhere and anytime, opening attractive-number
Particularly, Sacombank's digital customers currently
accounts/payment cards within 5 seconds, applying for
account for 70% of total active accounts. Compared to
credit cards within 5 minutes, saving deposits, consumer
5 years ago, the number of transactions through digital
loans, bill payments, and shopping.
channels at the bank has increased fivefold.
Many customers enjoy the convenience of QR code
scanning for payments, withdrawing cash from
ATMs, and generating QR codes from their accounts.
Compared to
Customers when traveling in Vietnam or to Thailand or
5 years ago
Cambodia, can pay with a QR code without physical cards
or bring foreign currencies. In the future, Sacombank
Pay will gradually evolve into a “Financial Super App”.
Most recently, Sacombank has successfully implemented The number of transactions through
Digital Branches by launching the Smart Teller Machine digital channels at the bank has
(STM) at key branches, offering numerous advanced
features such as voice-based transactions, interactive increased fivefold
touch, quick issuance of EMV chip cards, physical card
printing; allowing customers to proactively open accounts,
deposit/withdraw cash by card/ID, open/withdraw/settle In 2023, the transaction volume through cards,
online savings, withdraw cash with QR code, etc. e-banking, and Sacombank Pay reached nearly 7,000
Additionally, Sacombank has launched the first voice- trillion VND, contributing positively to the bank's overall
controlled call center in Vietnam using AI technology profitability through service revenues from these
capable of handling customer requests through voice channels.
commands and integrating an AI chatbot into the website
https://www.sacombank.com.vn and Sacombank’s fan These figures are clear evidence of the overall quality
page that enables handling a customers’ requests. of our products and services, as well as the specific
benefits that digital banking brings to our customers.
This not only demonstrates the necessity of digital
banking and reflects the inevitable trend of the market
but also affirms Sacombank's success in attracting and
retaining digital customers.

Sacombank is well-positioned to earnestly implement

and commit to national goals for developing cashless
payments. Sacombank is shaping its role as a crucial
factor, a key component in the future development
of the banking sector and Vietnam's increasingly
integrated economy.
KEY MILESTONES OF SACOMBANK CARD

48 2023 ANNUAL REPORT www.sacombank.com.vn 49

 THROUGH THE LENS
OF INTERNATIONAL ORGANIZATIONS
In 2023, improved financial conditions and sustainable business models have
increasingly gained from international financial institutions. Therefore, Sacombank
has enhanced the quality of its international relationship
Prestigious financial institutions from America, Europe, the Middle East, and Japan have proposed establishing
correspondent banking relationships with Sacombank, re-establishing trade finance, and expanding the scope
of cooperation. The trade finance limit rose by 66% from the previous year, creating favorable conditions for
Sacombank to better support its customers in terms of international payment, L/C financing under various
forms (deferred payment – immediate payment, confirmation, reciprocity), payment guarantees, document
discounting, etc. Sacombank gradually turned this into one of its core businesses.

IMPROVING CREDIT RATING OUTLOOK

PROVIDING PROFESSIONAL FOREIGN EXCHANGE SERVICES
Given the results of the Restructuring Plan, Moody’s has had positive views on Sacombank’s credit risk
management capability, settlement of outstanding assets, recovery and liquidation of secured assets, credit Sacombank is the only Vietnamese joint stock Every transaction, from inputting data into the
risk provision, and tangible owner’s equity while maintaining stable capital mobilization. Therefore, Moody’s commercial bank honored by Euromoney as “The system to payment, is continuously updated in real-
has upgraded Sacombank’s credit rating to B2 from B3 and updated the Baseline Credit Assessment (BCA) from Best FX Bank Rest of the World – Vietnam” in 2023. time, reducing cost and waiting time for customers.
Caa1 to B3. Sacombank was also recognized as "Best Forex Bank Sacombank offers 24/7 real-time transaction
in Vietnam 2023” -" by the Global Banking & Finance services, including during domestic holidays, to
Review (UK) and “Best in Treasury and Working Capital ensure financial needs and multi-currency liquidity.
SMEs in Vietnam” by the Asset (Hong Kong) thanks
to its large market share, high transaction volume, In addition, the online FX program, integrated with
diversified products, wide network, abundant Internet Banking and Mobile Banking systems,
liquidity, flexible hedging solutions, competitive supports online price fixing with a globally connected
pricing policy and professional sales team. price source, and exchange rates are updated in real-
time. Sacombank also supports customers in closing
In 2023, Sacombank implemented comprehensive the agreed exchange rates or notifying them when the
solution packages on foreign exchange and multi- exchange rate reaches the desired level, providing a
platform transaction systems to support the useful solution for import-export payments. Import-
digitalization process, help businesses save time, export payment sales of Sacombank’s corporate
optimize profit, and manage risks effectively. customers reached nearly USD 12 billion in 2023.

These successes come from a continuous investment With continuous efforts in all business aspects,
strategy in technology development, especially online especially as the Restructuring Plan enters its
transaction solutions to improve customer experience final phase of completing all financial obligations,
in banking transactions in general and in foreign Sacombank’s internal strength and foundation will
exchange transactions in particular. In 2023 alone, be strongly consolidated and ready to reach new
Sacombank undertook the project of upgrading and heights. The brand reputation and outstanding
managing front-to-back foreign exchange – capital growth potential of Sacombank will be increasingly
transaction solutions on the latest technology platform affirmed in both domestic and international markets.
to meet business requirements in the digital era as
well as comply with the latest regulations of Basel and
the State Bank of Vietnam.

50 2023 ANNUAL REPORT www.sacombank.com.vn 51

 TOUCHPOINTS
ON THE
EMPLOYEE ENGAGEMENT AT
SACOMBANK

In 2023, the human resources strategy of economic entities in general and Sacombank in
particular focused on improving employee experiences while simultaneously prioritizing
efficiency through improved productivity and workforce performance to adapt to rapid
changes. The five touchpoints in the "lifecycle" of Sacombank's employees demonstrate the
bank's strategy in action.

OFFICIAL
RECRUITMENT
FIRST TOUCH POINT - RECRUITMENT SECOND TOUCH POINT – INTEGRATION
Sacombank consistently innovates and adopts 1,389 Sacombank identifies this as the most crucial step to help personnel quickly integrate into their roles,
colleagues, and Sacombank's work culture. Therefore, to conquer the “hearts” of employees from the initial
dynamic approaches in recruitment processes new employees
to enhance its ability to attract talent in today's days, Sacombank has applied a professional, methodical, and digitalized reception process as follows:
competitive and challenging market.

The Bank has streamlined and digitalized 100% Before starting the job is a critical time for converting candidates
of recruitment procedures, making it easier for into employees: Newly recruited employees are entitled to an online
candidates to apply through a few simple steps. First-year students are eligible to attend skill integration system, providing information about time and place of
All recruitment information is methodically posted training workshops, career orientation sessions, work, necessary documents, contact information for support upon
for candidates to access and search for suitable and Sacombank tour programs to visit headquarters accepting a job offer, the schedule for employees’ first day. This helps
positions. Thanks to that, Sacombank’s recruitment and gain practical insights into banking operations. new employees proactively prepare for their roles.
website attracted over 19,000 candidates and Second-year students facing difficult circumstances
applicants annually. Further, Sacombank identifies participate in the "Sacombank - Nurturing Dreams
internal candidates as a potential talent pool for high- Scholarship" program, which provides them with
The first working day is extremely important, to make it a “smooth”
level positions, with over 832 internal staff members additional motivation to excel in their studies and
working day with positive impressions, Sacombank organizes
being promoted to new positions in 2023. lives. Third-year and fourth-year students have the
activities such as: providing working tools, signing contracts,
opportunity to experience a professional internship
discussing work orientation with the leadership board, and facilitating
New graduates are a quality, young workforce with at Sacombank through the "Potential Intern" program,
conversations with colleagues and instructors.
high enthusiasm. Being aware of this, Sacombank which allows them to become full-time employees
strengthens coordination with educational before graduation. In addition, job fairs at universities
institutions nationwide to organize student will help graduands seek suitable jobs through in-
connectivity programs, aiming to proactively person interviews. In 2023, Sacombank created After starting their jobs, new employees receive professional training
promote a professional, dynamic, and modern image favorable conditions for 600 students to gain career tailored to their roles and support in quickly and effectively resolving
of Sacombank… aligning the needs and development experience and officially recruited 1,389 employees any arising problems.
desires of this talent pool. nationwide.

52 2023 ANNUAL REPORT www.sacombank.com.vn 53

 5 TOUCHPOINTS ON THE EMPLOYEE
ENGAGEMENT AT SACOMBANK (continued)

THIRD TOUCH POINT – CAREER DEVELOPMENT FOURTH TOUCH POINT – EMPLOYEE ENGAGEMENT
With 99% of management personnel promoted from Digital improvements, such as the SAP Apart from salary and bonus policies as stipulated In parallel, Sacombank organizes significant community
within, Sacombank demonstrates its commitment SuccessFactors program help track employee and basic benefits such as: annual trips, periodic events, contributing to the improvement of spiritual lives
to internal human resource investment and performance transparently. A digital library within health checks, uniforms, holiday allowances, etc. and bringing valuable life experiences to employees and
development, encouraging career growth and the training system allows employees to study Sacombank also offers other remuneration programs the community.
fairness in the workplace. Sacombank understands anytime, anywhere, improving their capabilities. In tailored to the unique needs of each employee.
that building a leadership team from within helps 2023, the training system provided an average of 37
maintain corporate culture and create a management learning hours per employee. For new employees, Sacombank provides well-
team with a deep understanding of Sacombank’s prepared learning and career development support
values and strategic goals. The SAP SuccessFactors system helps Sacombank programs; senior-level employees are entitled
timely track the employees’ work performance and to flexible policies such as seniority allowances,
Sacombank has developed an employee promotion development potential. That enables Sacombank preferential interest loans to stabilize their lives,
process flow chart as well as a long-term to create orientation programs and advanced health insurance, accident insurance, etc. All
development plan. In addition, every employee training sources for potential employees, helping employees are encouraged to participate and share
can proactively build their development plan with them develop their capacity, middle management their ideas through the “Golden Idea” program, with
support from their direct manager to be supported capability and prepare them for future roles. 130 ideas collected in 2023, creating a diverse,
and directed in the implementation process. innovative, and positive working community.

With 70% of employees from generations Y and Z,

Sacombank always strives to understand the needs of
these generations, especially the need to be heard and
respected, fostering a sustainable future. Sacombank
has built a culture of open communication to easily
collect breakthrough ideas to upgrade products or
improve the process.

FIFTH TOUCH POINT – RESIGNATION

As a leading entity with a large number of employees a smooth transition. Many employees with a
in the banking and financial sector, Sacombank not background of dedicated service and comprehensive
only identifies employee care as a responsibility training at Sacombank have been provided favorable
but also as an opportunity to create a positive and conditions for self-improvement. Sacombank is
shared workplace. Support and consulting policies especially ready to re-recruiting former employees,
on benefits such as retirement, unpaid leave, and with work ethics and competence being prerequisite
resignation are well-designed to meet the basic factors for selection – a necessary element for the
requirements of employees and create positive stable development of the organization.
experiences throughout their careers. During the
termination process, Sacombank positions itself Apart from business development, Sacombank
as a proactive companion, handling paperwork envisions building long-term relationships and
efficiently and optimizing the work transfer process. positive integration between human resources and
the organization. Sacombank is creating a solid
Information exchange and dedicated support foundation for common development, a community
create a space for sharing, supporting employees where all members feel appreciated and fully
to overcome personal challenges and ensuring supported in their career journey.

54 2023 ANNUAL REPORT www.sacombank.com.vn 55

58 Key principles in Sacombank’s governance model
60 Report of the Board of Directors
69 Board of Supervisors report
74 List of shares owned with voting rights of BOD, BOS,

CORPORATE
and BOM members
75 Related party transactions
76 Remuneration and rewards
77 Rights and responsibilities of Shareholders GOVERNANCE
82 Shareholder structure
REPORT
 KEY PRINCIPLES IN SACOMBANK’S
GOVERNANCE MODEL

1 5
To ensure compliance with the legal regulations, To ensure the development of a transparent,
the management of the State Bank of Vietnam, effective governing managing structure, thereby
and the Charter and internal rules of the Bank. helping Sacombank to develop sustainably and stably,
enhancing its reputation.

2 6
To ensure the separation of governance To ensure accurate and prompt
functions of the BOD and managing tasks of orientations to enhance management
the BOM. effectiveness in key areas of the Bank.

3 To ensure publicity and transparency in

all activities of the Bank.
To engage in society and community
development. 7

4 8
To ensure the principle of acting for the highest To direct all activities of the Bank with the
purposes, which are to protect and increase the legal orientation “Human resources are core -
benefits of the Bank and its shareholders. Customers are centric”.

58 2023 ANNUAL REPORT www.sacombank.com.vn 59

 REPORT OF THE BOARD OF DIRECTORS
REPORT ON IMPLEMENTING THE RESOLUTION OF AGM FOR THE FISCAL YEAR BOD’S ACTIVITIES IN 2023
2023 Meetings

In 2023, BOD had 6 periodic in-person meetings.

Given the situation where the world economy has not yet recovered, causing a significant Besides, the Chairman has conducted 95 written
impact on the Bank's business operations, with the efforts of the BOM and all staff, consultations with Board members to make
decisions on work related to the governance of
Sacombank has completed the financial targets assigned by the Shareholders Committee. the Bank as well as to promulgate Regulations,
Resolutions, Decisions, and Directives, etc. to
maintain system stability, complete financial,
Key financial ratios plans, and tasks assigned by Shareholders
Committee based on compliance with laws and
Sacombank’s Charter.
2023 Plan 2023 Actual Completed (Actual/Plan)

Meeting dates Main content

TOTAL
657,800 674,390 103% To approve BOM’s Report on business operations in the first 2 months of 2023 and the
Annual Business Plan presented to The Annual Meeting of Shareholders.
22/03/2023
ASSETS To approve the contents of documents to be submitted to the Annual Meeting of Shareholders.
To approve the policy on re-organizing and personnel rotation at subsidiary banks.

To approve the Executive Board's report on the business results for the first 5 months of 2023
and the restructuring plan linked with handling non-performing loans from 2021 to 2025.

TOTAL
574,600 578,029 101% To amend regulations:
- The performance evaluation scale.
DEPOSITS
- To improve payment methods of salaries, income, and incentives for employees and managers.
05/06/2023
- To equip and manage means of transport.
To calibrate the Bank’s organizational model:
- To establish the Digital Banking Division.

TOTAL CREDIT
491,600 482,731 98% - To add inspection function to Regional Office.
To dismiss the senior leadership.
BALANCE
To adjust the payment plan for auction winnings for 18 debts guaranteed by the property
28/07/2023
rights at Phong Phu Industrial Park project.

NPL RATIO
≤ 2% 2.1% Not achieved 04/08/2023
To report the Bank’s business operations in the first 7 months of 2023
To adjust the Restructuring Plan linked to handling bad debt for the period 2021 – 2025.

To reappoint senior personnel.

28/08/2023
To make bonus payments for employees on the occasion of Independent Day, 02 September 2023

PROFIT
9,500 9,595 101% 06/12/2023
To report the 2023 business performances and presenting the 2024 business plan.
To get approval in principle on the mechanism for working on Saturday mornings.
BEFORE TAX To report senior personnel operations.

60 2023 ANNUAL REPORT www.sacombank.com.vn 61

 REPORT OF THE BOARD OF DIRECTORS (continued)

HUMAN RESOURCE COMMITTEE

BOD’s resolutions in 2023

Based on the content of the meetings and the feedback obtained in writing from the members of the Board of The Human Resources Committee has two subsidiary councils: The
Directors, the Chairman has issued resolutions on behalf of the Board to guide the bank's business strategy and Remuneration Council and The High-level Reward and Discipline Council.
the activities of its subsidiaries/affiliated banks. These resolutions cover credit granting, bad debt management, In 2023, the Human Resource Committee held 97 meetings to perform its
risk control, organizational restructuring, senior personnel appointments, the issuance, amendment, and functions and duties as prescribed, including:
supplementation of legal documents to comply with changing legal regulations and other governance activities
within the authority of the Board of Directors.

Assessment of the Board of Directors on activities of the Bank, Board of Supervisors, and
Board of Management

1 To advise the BOD on the size and structure of senior executives in line
with the Bank’s operational scale and sustainable development strategy.

In 2023, although Vietnam's BOS has closely directing BOM has demonstrated strong
socio-economy had not internal audits activities, determination and responsibility
significantly recovered after the directing internal audit in implementing the business

2
COVID-19 pandemic, Sacombank activities, contributing to plan for 2023 and has rigorously
made every effort in all business preventing non-compliance executed the resolutions of To advise the BOD on personnel issues arising during election,
activities and completed most behaviors among employees. the Board of Directors, thereby appointment, dismissal of BOD and BOS members and senior executives
of the targets assigned by the They have also directed and achieving the assigned business in line with the provisions of the laws and Charter of Sacombank.
Shareholders Committee. coordinated with business objectives.
units to complete Basel III
requirements effectively.

For members of BOD with the Corporate Governance Certificate

Following the provisions of Clause 8, Article 278 of Decree No. 155/2020/NĐ-CP dated December 31, 2020,
issued by the Government on corporate governance training and necessary skills for members of the Board
3 To advise the BOD on issuing internal regulations related to salary,
remuneration, incentive, hiring, training, and other benefits for senior
executives and employees of Sacombank.

of Directors (HĐQT), most members of Sacombank's Board of Directors have been issued Certificates of
Completion of the Board Member Training Program by the Vietnam Institute of Directors.

The High-level Reward and Discipline Council: To review and approve

4
Activities of committees under the Board of the annual emulation ranking results for collectives and individuals under
Directors in 2023 the authority of the Board of Directors and other cases when necessary;
AN D M CO
EE

to organize meetings to handle labor disciplinary violations. To advise

AN
TI- ON MM
ITT

the Board of Directors to apply disciplinary measures and supervise the

CO EY ITT

Sacombank's Board of Directors has restructured and

MM

RR LA EE

established specialized committees under the legal enforcement of regulations in the Bank’s business activities.
CO

UP UN

3
CE

provisions and guidance of Circular 13, particularly

TIO D
UR

N, ERI

referencing corporate governance practices for

SO

CR NG

SPECIALIZED
RE

these committees and councils under the Board of The Remuneration Council: To advise the Board of Directors or advise the
IM

COMMITTEES
N

Directors to ensure the sustainable development

MA

Board of Directors to submit to the Shareholders Committee for decisions

5
UNDER
THE BOD
HU

goals and strategies are effectively met. Specifically, as regulated on: Requirements, salary, bonus, and remuneration for senior
there are 3 committees: Human Resource Committee executives and remuneration policy for employees of the Bank and its
- Risk Management Committee - Anti-Corruption, RISK MANAGEMENT subsidiaries. Periodically evaluating the regimes and policies to ensure
Crime And Money Laundering Committee COMMITTEE
they are in line with the Bank’s operational situation.

62 2023 ANNUAL REPORT www.sacombank.com.vn 63

 REPORT OF THE BOARD OF DIRECTORS (continued)

RISK MANAGEMENT COMMITTEE ANTI-CORRUPTION, CRIME, AND MONEY LAUNDERING COMMITTEE

In 2023, the Risk Management Committee held multiple meetings to Recognizing the importance of anti-corruption and anti-money laundering, and
perform its functions and duties as stipulated, including: reaffirming its determination to tackle corruption, crime prevention, and money
laundering, the Anti-Corruption, Crime, and Money Laundering Committee at
Sacombank has continuously made efforts to build a legal framework and establish
an efficient management system. Specifically, in 2023, the Committee held multiple
sessions and assigned members to attend various regular and extraordinary meetings
of Councils and Committees to perform their functions and duties as prescribed, including:

1 To propose and advise the BOD in the supervision of BOM in the

development and implementation of Risk Management Regulations.

1
To determine strategic goals, design programs, plans, and organizational
measures to combat and prevent corruption, crime, and money laundering
in line with Vietnamese and international laws.

2 To advise BOD on the issuance of procedures, regulations, and policies

within the Committee's authority related to the Bank's risk management

2
activities, according to regulations of the laws and Charter of Sacombank.

To inspect and supervise anti-corruption, crime, and money laundering

efforts at Sacombank.

3 To analyze and warn on safety levels of the Bank regarding potential risks
and preventive measures for these risks in the short term and the long term.

3
To receive information and compile the situation of negative incidents,
corruption, and legal violations at various Units, particularly focus on
economic crimes and business risks which are detected through regulatory
inspection, complaints, and denunciations as well as the social media or

4
To evaluate the effectiveness of risk management procedures, regulations, referrals from legal authorities.
and policies of the Bank to advise the BOD regarding necessary changes to
current processes, regulations, policies, and operational strategies.

4
To analyze, propose, advise, and report to the BOD on strategies for
addressing misconduct, corruption cases, and solutions to enhance the
effectiveness of anti-corruption and crime prevention efforts related to

5
To advise the BOD in making decisions on investments, management Sacombank's operations.
policies, and risk-handling measures within the Risk Management
Committee’s authority.

6 5
To protect customers, the Bank, and employees from falling victim or
To propose and advise the BOD to supervise BOM in handling shortcomings inadvertently aiding money laundering activities.
related to risk management by the requirements of the State Bank of
Vietnam, independent audit organizations, and other relevant authorities.

64 2023 ANNUAL REPORT www.sacombank.com.vn 65

 REPORT OF THE BOARD OF DIRECTORS (continued)
SACOMBANK’S OTHER SECURITIES LIST
Assessment:
Overall, in 2023, the Committees and Councils continued to operate actively and effectively, promoting the role Number Capital contribution value, Proportion
of advising the BOD to implement its obligations and rights in line with the laws and Sacombank's Charter, to No. Issuer
of shares buying shares at par value (%)
give timely support to the BOM in business and risk management.
The Committees all operate based on specific regulations and guidelines that are publicly disseminated across
the entire system to ensure transparency. Concurrently, the Committees persist in examining, monitoring, 1 Mai Linh Group Corporation 60,000 600,000,000 0.05%
reviewing, and refining regulatory frameworks within their purview to ensure the delineation between the
supervisory and management functions of the BOD and the operational management functions of the BOM.
In the meetings, discussions between BOD, BOS, and BOM are conducted in a spirit of diligence, constructive 2 AAA Insurance JSC 632,280 6,322,800,000 0.56%
engagement, and transparency, aiming to formulate the most suitable governance and operational policies.
Resolutions, directives, and conclusions agreed in meetings are issued and entrusted to the CEO for proper
implementation by regulations.
3
Banking Skills Training & Consultancy
63,826 638,260,000 5.29%
POSITIONS OF BOD MEMBERS AT OTHER COMPANIES JSC

Position Position at other companies

No. Full name 4 National Payment Corporation of
at Sacombank 500,000 5,000,000,000 1.60%
Company name Titles Vietnam

1 Mr. Pham Van Phong Vice Chairman Tam Long Power JSC Member of BOD
5 Quang Binh Tourist JSC 63,000 630,000,000 2.10%
2 Mr. Nguyen Xuan Vu Member of BOD Vgroup JSC Vice Chairman

Nguyen Hoang Group Chief Supervisor 6 Kien Giang Tourist JSC 880,000 8,800,000,000 10.14%
3 Mr. Phan Dinh Tue Member of BOD Standing Vice Chairman
Bamboo Airways JSC (Elected as Chairman
from 7 February 2024) 7 Vietnam Credit Information JSC 318,182 3,181,820,000 2.65%
Ba Ria - Vung Tau
International Tourist Chairman
Independent member Services JSC
4 Mr. Vuong Cong Duc 8 Saigon Vinh Long Tourist JSC 150,000 1,500,000,000 1.00%
of BOD Vung Tau Paradise
Joint Venture Member of BOD
Company
9 Dong Tam JSC (Long An) 741,000 7,410,000,000 1.09%
5
Independent member Shining Sun Social Chairman
Ms. Pham Thi Thu Hang
of BOD Co., Ltd of Member’s Council

10
Society for Worldwide Interbank
23 - -
Financial Telecommunication (SWIFT)

11 S.P.M Corporation 1,041,500 10,415,000,000 7.44%

12 Nam Do Commercial Joint Stock Bank 5,040 5,040,000,000 16.35%

66 2023 ANNUAL REPORT www.sacombank.com.vn 67

 REPORT OF THE BOARD OF DIRECTORS (continued) BOARD OF SUPERVISORS REPORT
BOD’S STRATEGIC ORIENTATION FOR SACOMBANK’S ACTIVITIES IN 2024 BOS’S MEETINGS
It is forecast that the potential risks from macro factors will still be present in 2024. The Board of Supervisors for the term 2022-2026 consists of 01 chief and 03 members, all of whom are specialized
However, with the strong inner power accumulated and the bravery fostered, as the members. The BOS held 12 meetings in 2023, including 4 where opinions were gathered from members of the BOS
through written communications. All members of the BOS have fully attended the meetings, actively provided
destination of the restructuring journey approaches, Sacombank will continue to bolster opinions, participated in discussions, and achieved a unanimous 100% agreement on all issues and contents
its strength to successfully conclude the restructuring process and enter a new phase of within the functions and tasks of the BOS.
development with higher goals. Accordingly, the BOD has set out the strategic direction Attendance rate of the BOS members in 2023
for Sacombank’s operation in 2024 as “ACCELERATING OPERATIONS - ENHANCING
EFFICIENCY ON A DIGITAL PLATFORM”. Number of meetings/written Attendance rate Voting rate
No. The BOS member
opinions of the BOS members (%) (%)

KEY GOALS 1 Mr. Tran Minh Triet 12 100 100

2 Ms. Ha Quynh Anh 12 100 100

3 Mr. Nguyen Van Thanh 12 100 100

4 Mr. Lam Van Kiet 12 100 100

Contents in the BOS meetings

Meeting dates Main content

13/01/2023 To approve the assignment for members of the Board of Supervisors

1
13/01/2023 To summarize internal audit activities in 2022 and implementation of action plan for 2023
To increase the scale and efficiency of all units in the entire system, ensure a safe – efficient –
and stable operation. 10/03/2023 To approve the Board of Supervisors documents to be submitted to the 2022 AGM

10/03/2023 To conduct the meeting between the BOS and Internal Audit in the first quarter of 2023

2 To make a breakthrough in business, build and enhance digital transaction points to serve
customers, and affirm Sacombank’s brand position.
17/05/2023

14/06/2023
To approve the release of Internal Audit Regulations

To approve the release of the system of Job title - Job Descriptions - Promotion Chart for
Internal Audit

3 To continue digital transformation efforts – enhance the utility of products and services to
provide customers with enhanced experience and security.
20/06/2023

31/07/2023
To approve the appointment of personnel for Internal Audit

To summarize internal audit activities in the first 6 months of 2023 and implementation of
action plans for the last 6 months of 2023

4 To reduce the NPL ratio to under 3%, complete and terminate the Post-merger Restructuring
Plan.
09/08/2023

20/10/2023
To approve the proposal to add independent audit services in 2022 and 2023

To conduct the meeting between BOS and Internal Audit in the third quarter of 2023

5
To approve the proposal to select an independent auditor for the fiscal year ending 2024
24/11/2023
To distribute dividends to shareholders from retained earnings to increase financial capacity, and approve the 2024 Internal Audit Plan
positioning Sacombank as one of the leading retail banks in Vietnam.
06/12/2023 To approve the reappointment of personnel for Internal Audit

68 2023 ANNUAL REPORT www.sacombank.com.vn 69

 BOARD OF SUPERVISORS REPORT (continued)

ASSESSMENT OF BOS PERFORMANCE IN 2023 THE BOS’ BUSINESS SUPERVISION REPORT

The Board of Supervisors fulfilled its duties following the Law on Credit Institutions, Sacombank’s Charter,
and the BOS’ Operational Regulations. All BOS members completed their duties in 2023. Monitoring compliance with the law regulations and Sacombank’s Charter in the governance
and management of the Bank

1
The BOD and CEO have managed and executed the Bank per their competencies and tasks specified in the
Bank’s Charter, the Bank’s internal governance regulations, and the BOD’s operating regulations. Specifically:
To monitor compliance with the law and Sacombank’s Charter in the management and
administration of the Bank and implementation of the Shareholders Committee’s resolution.
The BOD managed and directed the prompt implementation of the policies of State Bank and Sacombank
and the Resolutions of Shareholders Committee by issuing the written documents on corporate governance

2
to timely guide, direct, and support the BOM in managing and executing the Bank and its subsidiaries and
subsidiary banks as well as coordinating with the BOS in inspecting and supervising the Bank’s activities.
To supervise the implementation of the Restructuring Plan approved by the State Bank.
The BOD directed the BOM to implement the orientation of the Restructuring Plan approved by the State
Bank of Vietnam.

3
The CEO has implemented the Resolutions and Decisions of the BOD; deployed tasks and business plan in
To propose and recommend to the Board of Directors the selection of an independent auditing 2023 in line with the orientation and Resolutions of the Shareholders Committee; conducted decentralization
firm to conduct the audit firm for Sacombank’s financial statements audit and internal audit and authorization to ensure smooth, safe, and effective operation of the Bank.
system in 2024.
Sacombank continuously strengthens its internal control system with 3 independent lines according to Circular
13 of the State Bank of Vietnam. In 2023, Sacombank successfully deployed risk management standards

4
according to Basel III, enhancing its governance capabilities, risk management, and financial health.
To verify Sacombank's 2022 financial statements based on the financial statements audited by
Ernst & Young Vietnam Limited and incorporate supervisory information from BOS’ supervision Sacombank complied with the State Bank’s regulations on limits and safety ratios in its activities and
information and internal audit reports. disclosed information about periodic Capital Adequacy Ratio as of 30 June 2023 and 31 December 2023 on
Sacombank's website, ensuring transparency, openness, and easy access for all relevant stakeholders.

5
BOS has directed the implementation of information technology solutions for internal audit and
inspection activities. The Project Implementation Board is carrying out the works according to
the project’s progress.

6
With the assistance of the Equity Management Team under the Board of Directors' Office,
the Board of Supervisors monitored the list of major shareholders, members of the Board of
Directors, members of the Board of Supervisors, the Chief Executive Officer (CEO), and related
persons by current regulations.

7
To direct and supervise the Internal Audit Department’s activities in compliance with Circular
No. 13/2018/ 6 TT-NHNN dated 18 May 2018 of the State Bank of Vietnam and Sacombank's
internal regulations.

8
To constantly improve the internal document system of BOS, documents and regulations on
internal audit; to review, scrutinize, and update internal regulations according to new regulations
of the laws and the State Bank annually.

9
The coordination activities and information exchange between the BOS, BOD, BOM, and
affiliated units of Sacombank are conducted seamlessly, by the regulations of the State Bank
and internal regulations of Sacombank.

70 2023 ANNUAL REPORT www.sacombank.com.vn 71

 BOARD OF SUPERVISORS REPORT (continued)
The BOS supervised the activities of Internal Audit per Circular 13 and Sacombank’s internal DIRECTION OF THE BOS IN 2024
regulations

Result of 2023 Internal Audit

Completing 100% of the 2023 internal audit plan the branches/transaction offices according to a 4 Directing and supervising at a high-level Internal Audit
relating to:
approved by the BOS. Specifically: Conducting set of 71 remote audit criteria.
17 audits, including: 10 audits at Branches Implement the 2024 Internal Audit Plan, preparing the
1
and 58 at affiliated transaction Offices; 4 Through the audit work at various units, the 2025 Internal Audit Plan;
audits on topics/units at the Head Office; Internal Audit provided recommendations for
1 subsidiary audit; 1 audit on information enhancing operational effectiveness, mitigating Promote and enhance the efficiency of direct and
2
technology topics at a subsidiary company risks, completing processes and procedures, remote audits through management, supervision,
and 1 at a banking subsidiary. At the ensuring the safe and effective operation training, and application of information technology in
same time, the Internal Audit of the Bank. Audit results were audit activities;
conducted remote audits promptly sent to the Shareholders
1
Strengthen control measures and
regularly and continuously Committee, the Board of 3 Implement the Project of Building inspection and audit
improve supervision of compliance
through data retrieval on Supervisors, the CEO, and
Completing with the law regulations and the program in line with the roadmap, effectively

100%
the MIS system. They relevant units. applying the Project results;
Charter in the governance
reviewed transactions of
and management of
Sacombank, as well as 4 Review and refine internal
the implementation documents related to the
activities of BOS and
of the internal audit of the Resolution of
the Shareholders Internal Audit;
plan for the year 2023 Committee.
5 Consolidate personnel
in Internal Audit,
especially those in
charge of information
technology audit.

2 Continue to
supervise the
implementation
of the Restructuring
Plan approved by
the SBV.

Enhancement of professional qualification and quality of internal audit activities

Implement the functions and tasks of BOS
The BOS focused on training activities and created favorable conditions for the internal audit team to improve 5 according to the regulations of the State
Bank of Vietnam, the Charter, and the internal
3
their capabilities. This approach aims to foster a progressively professional and robust internal audit function. Propose and recommend to the
Shareholders Committee and BOD regulations of Sacombank.
With the goal of continuous improvement and enhancing the quality of internal audits, the BOS directed the the selection of an independent
implementation of a project to build an inspection and audit program. This is Phase 2 of the Internal Audit auditing firm for 2025. Appraise
Framework Upgrade Project – building information technology solutions for inspection and internal audit. This Sacombank’s financial statements
project aligns with Sacombank’s digital transformation roadmap, applying data and information technology in according to regulations.
internal audit operations. It standardizes processes to provide effective tools that support the internal audit
and inspection team at the Bank.

72 2023 ANNUAL REPORT www.sacombank.com.vn 73

 LIST OF SHARES OWNED WITH VOTING RELATED PARTY TRANSACTIONS
RIGHTS OF BOD, BOS, AND BOM MEMBERS Related party transactions include all transactions undertaken with entities related to the Bank and its
subsidiaries. Parties are supposed to be related if one party can control or significantly influence the other
party in making financial and operational decisions.
Number of shares
No. Full name Position owned as of 31 SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES
December 2023
MEMBER OF BOD Current year Previous year
Related parties Transactions
(VND million) (VND million)
1 Mr. Duong Cong Minh Chairman 62,569,075
Interest income from loans 6,800 3,127
2 Ms. Nguyen Duc Thach Diem Standing Vice Chairman cum CEO 76,320
Interest expenses on deposit (21,964) (7,421)
3 Mr. Pham Van Phong Vice Chairman 19,680
Fee and commission income 151 55
4 Mr. Nguyen Xuan Vu Member 833 Key management
of the Bank and Other operating expenses - (5,397)
5 Mr. Phan Dinh Tue Member 142,895 subsidiaries
Net remuneration of members of the BOD (44,182) (35,243)
6 Ms. Pham Thi Thu Hang Independent member 0
Net remuneration of members of the BOS (16,994) (17,438)
7 Mr. Vuong Cong Duc Independent member 0
Net income of members of the BOM (101,507) (93,709)
MEMBER OF BOS
Interest income from deposits/loans 327,765 4,826
1 Mr. Tran Minh Triet Chief Supervisor 0
Related parties to
Interest expenses on borrowings/deposits (17,494) (8,797)
2 Ms. Ha Quynh Anh Member of BOS 5,828 key management
of the Bank and Fee and commission income 15,777 60
3 Mr. Nguyen Van Thanh Member of BOS 0 subsidiaries
Other expenses (2,485) (2,049)
4 Mr. Lam Van Kiet Member of BOS 66

MEMBER OF BOM & CHIEF ACCOUNTANT

RECEIVABLES/(PAYABLES) WITH RELATED PARTIES
1 Ms. Nguyen Thi Kim Oanh Deputy CEO 0
Ending balance Beginning balance
2 Mr. Nguyen Minh Tam Deputy CEO 14,739 Related parties Transactions
(VND million) (VND million)
3 Ms. Quach Thanh Ngoc Thuy Deputy CEO 101 Loans 164,431 67,936
4 Mr. Dao Nguyen Vu Deputy CEO 52,331 Due to (241,365) (291,898)
Key management
5 Mr. Bui Van Dung Deputy CEO 138,752 of the Bank and Certificates of deposit (1,960) (460)
subsidiaries
6 Mr. Nguyen Ba Tri Deputy CEO 7 Other receivables 1,273 11,990
7 Mr. Ho Doan Cuong Deputy CEO 7,126 Other payables (7,544) (2,815)
8 Mr. Le Duc Thinh Deputy CEO 0 Loans 4,020,196 101,619
9 Mr. Ha Van Trung Deputy CEO 10,000 Due to (271,632) (203,017)
Related parties to
10 key management
Mr. Hoang Thanh Hai Deputy CEO 76,315 Certificates of deposit (20,170) (20,210)
of the Bank and
11 Mr. Huynh Thanh Giang Chief Accountant 48,562 subsidiaries Other receivables 25,025 1,051

Total 63,162,630 Other payables (8,562) (5,534)

74 2023 ANNUAL REPORT www.sacombank.com.vn 75

 REMUNERATION AND REWARDS RIGHTS AND RESPONSIBILITIES
According to Resolution no.01/2022/NQ-ĐHĐCĐ dated 25 April 2023 of 2022 AGM, the Remuneration fund for
BOD and BOS in 2023 of Sacombank is set at the rate of 1% of consolidated profit before tax of the fiscal year
ended 2023. However, in the spirit of implementing the policy on savings, the remuneration and rewards to BOD
and BOS paid in 2023 accounted for 0.71% of consolidated profit before tax of the fiscal year ended 2023.
OF SHAREHOLDERS
RIGHTS OF SHAREHOLDERS, COMMUNICATION WITH SHAREHOLDERS,
ORGANIZATION OF AGM
Rights of Shareholders: Sacombank has strictly implemented all rights of Shareholders as stipulated
in Article 25 – Sacombank’s Charter and other legal regulations. At the 2022 AGM, all shareholders were
guaranteed the right to attend, vote, and give opinions at the Meeting or send letters to the Organizing
Committee, fully exercising their rights according to the law, especially being treated fairly, and having access
to full information.

Communication with Shareholders: Apart from answering questions at the 2022 AGM on 25 April 2023,
Sacombank presented gifts to all Shareholders (including minor shareholders) who attended the Meeting at
White Palace, 194 Hoang Van Thu, Ward 9, Phu Nhuan District, Ho Chi Minh City. In 2023, Sacombank directly
contacted 150 Shareholders at the Head Office to resolve requests related to the transfer of STB share
ownership from inheritance and update Shareholders’ information. In addition, Sacombank also responded
to Shareholders' queries regarding dividends and shares via phone and email, guiding them through relevant
procedures.

Organizing AGM: In 2023, Sacombank successfully organized the 2022 AGM as a Direct Conference - Electronic
Voting at White Palace (No. 194 Hoang Van Thu, Ward 9, Phu Nhuan District, Ho Chi Minh City).

SHARE TRANSACTIONS OF INSIDERS

Beginning number Ending number Reasons
Transaction of shares of shares
Relationships for
conducted
with insiders Number of Number of increase/
by Percentage Percentage
shares shares decrease

Mr. Nguyen Minh

Ms. Nguyen
Tam’s sister 13,119 0.00069% 0 0.000% Sell
Thanh Xuan
– Deputy CEO

76 2023 ANNUAL REPORT www.sacombank.com.vn 77

 RIGHTS AND RESPONSIBILITIES OF SHAREHOLDERS (continued)
SHARE TRANSACTIONS OF MAJOR SHAREHOLDERS
03 January 2023 14 February 2023
Beginning number of shares Ending number of shares Transactions’ Beginning number of shares Ending number of shares Transactions’
Transactions Transactions
No. Number of Number of quantity No. Number of Number of quantity
conducted by Percentage Percentage conducted by Percentage Percentage
shares shares (Buy/Sell) shares shares (Buy/Sell)

1
Amersham Industries Amersham Industries
8,000,000 0.4244% 8,000,000 0.4244% 0 1 9,500,000 0.5039% 9,500,000 0.5039% 0
Limited Limited
2 CTBC Vietnam Equity Fund 30,300,000 1.6073% 30,300,000 1.6073% 0 2 CTBC Vietnam Equity Fund 33,300,000 1.7664% 33,300,000 1.7664% 0
DC Developing Markets DC Developing Markets
3 Strategies Public Limited 14,500,000 0.7691% 14,500,000 0.7691% 3 Strategies Public Limited 15,476,000 0.8209% 15,476,000 0.8209% 0
Company Company

4 Hanoi Investments Hanoi Investments

22,055,000 1.1699% 22,055,000 1.1699% 4 25,155,000 1.3343% 25,155,000 1.3343% 0
Holdings Limited Holdings Limited

5 KB Vietnam Focus 5 KB Vietnam Focus

1,120,000 0.0594% 1,120,000 0.0594% 0 1,200,000 0.0637% 1,200,000 0.0637% 0
Balanced Fund Balanced Fund
6 Norges Bank 30,456,900 1.6156% 29,000,000 1.5383% 0 6 Norges Bank 20,350,000 1.0795% 19,600,000 1.0397% (750,000)
Samsung Vietnam Samsung Vietnam
7 Securities Master 1,352,400 0.0717% 1,252,400 0.0664% (1,456,900) 7 Securities Master 1,634,200 0.0867% 1,634,200 0.0867% 0
Investment Trust [Equity] Investment Trust [Equity]

8 Vietnam Enterprise Vietnam Enterprise

4,040,400 0.2143% 3,040,400 0.1613% (100,000) 8 5,540,400 0.2939% 5,540,400 0.2939% 0
Investments Limited Investments Limited
9 Wareham Group Limited 1,360,000 0.0721% 1,360,000 0.0721% (1,000,000) 9 Wareham Group Limited 1,360,000 0.0721% 1,360,000 0.0721% 0
Total 113,184,700 6.0038% 110,627,800 5.8682% (2,556,900) Total 113,515,600 6.0214% 112,765,600 5.9816% (750,000)

08 February 2023 28 April 2023

Beginning number of shares Ending number of shares Transactions’ Beginning number of shares Ending number of shares Transactions’
Transactions Transactions
No. Number of Number of quantity No. Number of Number of quantity
conducted by Percentage Percentage conducted by Percentage Percentage
shares shares (Buy/Sell) shares shares (Buy/Sell)
Amersham Industries Amersham Industries
1 9,500,000 0.5039% 9,500,000 0.5039% 0 1 3,000,000 0. 1591% 3,000,000 0.1591 % 0
Limited Limited
2 CTBC Vietnam Equity Fund 30,300,000 1.6073% 30,300,000 1.6073% 0 2 CTBC Vietnam Equity Fund 40,300,000 2.1376% 4,1,300,000 2.1907% 1,000,000
DC Developing Markets DC Developing Markets
3 Strategies Public Limited 14,700,000 0.7798% 15,200,000 0.8063% 500,000 3 Strategies Public Limited 14,350,000 0.7612% 14,350,000 0.7612% 0
Company Company
Hanoi Investments 4 Hanoi Investments
4 23,155,000 1.2282% 24,155,000 1.2813% 1,000,000 27,575,000 1.4627% 27,575,000 1.4627% 0
Holdings Limited Holdings Limited

KB Vietnam Focus 5 KB Vietnam Focus

5 1,100,000 0.0583% 1,100,000 0.0583% 0 1,050,000 0.0557% 1,050,000 0.0557% 0
Balanced Fund
Balanced Fund
6 Norges Bank 20,100,000 1.0662% 20,100,000 1.0662%
6 Norges Bank 25,350,000 1.3447% 25,350,000 1.3447% 0
Samsung Vietnam
Samsung Vietnam 7 Securities Master 1,474,000 0.0782% 1,474,000 0.0782% 0
7 Securities Master 1,806,500 0.0958% 1,906,500 0.1011% 100,000 Investment Trust [Equity]
Investment Trust [Equity]
8 Vietnam Enterprise
Vietnam Enterprise 4,750,000 0.2520% 4,750,000 0.2520% 0
8 5,540,400 0.2939% 5,540,400 0.2939% 0 Investments Limited
Investments Limited
Total 112,599,000 5.9727% 113,599,000 6.0258% 1,000,000
9 Wareham Group Limited 1,360,000 0.0721% 1,360,000 0.0721% 0
Total 112,811,900 5.9840% 114,411,900 6.0689% 1,600,000
78 2023 ANNUAL REPORT www.sacombank.com.vn 79
 RIGHTS AND RESPONSIBILITIES OF SHAREHOLDERS (continued)
SHARE TRANSACTIONS OF MAJOR SHAREHOLDERS (continued)
25 May 2023 19 October 2023

Beginning number of shares Ending number of shares Transactions’ Beginning number of shares Ending number of shares Transactions’
Transactions Transactions
No. Number of Number of quantity No. Number of Number of quantity
conducted by Percentage Percentage conducted by Percentage Percentage
shares shares (Buy/Sell) shares shares (Buy/Sell)

1 Amersham Industries Amersham Industries

2,000,000 0.1061 % 1,750,000 0.0929% (250,000) 1 4,500,000 0.2387% 4,750,000 0.2520% 250,000
Limited Limited
2 CTBC Vietnam Equity Fund 41,300,000 2.1907% 41,300,000 2.1907% 0 2 CTBC Vietnam Equity Fund 38,000,000 2.0157% 38,000,000 2.0157% 0

DC Developing Markets DC Developing Markets

3 Strategies Public Limited 14,350,000 0.7612% 14,350,000 0.7612% 0 3 Strategies Public Limited 13,200,000 0.7002% 13,200,000 0.7002% 0
Company Company
4 Hanoi Investments Hanoi Investments
27,575,000 1.4627% 27,575,000 1.4627% 0 4 10,495,000 0.5567% 10,495,000 0.5567% 0
Holdings Limited Holdings Limited
5 KB Vietnam Focus KB Vietnam Focus
1,400,000 0.0743% 1,450,000 0.0769% 50,000 5 1,100,000 0.0583% 1,100,000 0.0583% 0
Balanced Fund Balanced Fund
6 Norges Bank 20,100,000 1.0662% 20,100,000 1.0662% 0 6 Norges Bank 21,300,000 1.1298% 22,300,000 1.1829% 1,000,000

Samsung Vietnam Samsung Vietnam

7 Securities Master 1,586,000 0.0841% 1,586,000 0.0841% 0 7 Securities Master 2,068,000 0.1097% 2,068,000 0.1097% 0
Investment Trust [Equity] Investment Trust [Equity]
8 Vietnam Enterprise Vietnam Enterprise
6,500,000 0.3448% 5,000,000 0.2652% (1,500,000) 8 2,000,000 0.1061% 4,250,000 0.2254% 2,250,000
Investments Limited Investments Limited
Total 114,811,000 6.0901% 113,111,000 5.9999% (1,700,000) Total 92,663,000 4.9152% 96,163,000 5.1009% 3,500,000

03 July 2023 06 November 2023

Beginning number of shares Ending number of shares Transactions’ Beginning number of shares Ending number of shares Transactions’
Transactions Transactions
No. Number of Number of quantity No. Number of Number of quantity
conducted by Percentage Percentage conducted by Percentage Percentage
shares shares (Buy/Sell) shares shares (Buy/Sell)

1 Amersham Industries 1 Amersham Industries

1,750,000 0.0929% 1,750,000 0.0929% 0 9,104,000 0.4829% 9,104,000 0.4829% 0
Limited Limited

2 CTBC Vietnam Equity Fund 39,300,000 2.0846% 39,300,000 2.0846% 0 2 CTBC Vietnam Equity Fund 40,000,000 2.1218% 43,000,000 2.2809% 3,000,000

DC Developing Markets DC Developing Markets

3 Strategies Public Limited 11,000,000 0.5834% 11,000,000 0.5834% 0 3 Strategies Public Limited 13,200,000 0.7002% 13,200,000 0.7002% 0
Company Company

4 Hanoi Investments 4 Hanoi Investments

15,275,000 0.8102% 15,275,000 0.8102% 0 11,995,000 0.6363% 11,995,000 0.6363% 0
Holdings Limited Holdings Limited

5 KB Vietnam Focus 5 KB Vietnam Focus

1,200,000 0.0637% 1,200,000 0.0637% 0 1,090,000 0.0578% 1,090,000 0.0578% 0
Balanced Fund Balanced Fund

6 Norges Bank 20,500,000 1.0874% 20,263,500 1.0749% (236,500) 6 Norges Bank 25,300,000 1.3420% 25,300,000 1.3420% 0

Samsung Vietnam Samsung Vietnam

7 Securities Master 1,466,000 0.0778% 1,466,000 0.0778% 0 7 Securities Master 2,268,000 0.1203% 2,268,000 0.1203% 0
Investment Trust [Equity] Investment Trust [Equity]

8 Vietnam Enterprise 8 Vietnam Enterprise

4,000,000 0.2122% 4,000,000 0.2122% 0 7,130,000 0.3782% 8,130,000 0.4313% 1 ,000,000
Investments Limited Investments Limited
Total 94,491,000 5.0122% 94,254,500 4.9997% (236,500) Total 110,087,000 5.8395% 114,087,000 6.0517% 4,000,000

80 2023 ANNUAL REPORT www.sacombank.com.vn 81

 SHAREHOLDER STRUCTURE
SHAREHOLDER STRUCTURE STATEMENT OF CHANGES IN OWNERS’ EQUITY

Number of shareholders Number of shares Percentage of shares

Major and minority shareholders

CHARTER CAPITAL
Major shareholders

Minority shareholders
8

85,847
126,704,100

1,758,511,616
6.73%

93.27%
18,852
VND billion

Individual and institutional shareholders

Individual shareholders 85,488 1,272,629,085 67.51% RETAINED EARNINGS SHARE PREMIUM

Institutional shareholders 367 612,586,631 32.49% 20,387

VND billion
OWNER’S EQUITY AS
OF 31 DECEMBER 2023
1,748
VND billion

45,734
Domestic and foreign shareholders

Domestic shareholders 84,884 1,463,204,631 77.61%

VND billion
Foreign shareholders 971 422,011,085 22.39%

State-owned and other shareholders FOREIGN CURRENCY

CREDIT INSTITUTION FUND
TRANSLATION RESERVE

State-owned shareholders 3 81,675 0.004%

(225)
VND billion
4,973
VND billion
Other shareholders 85,852 1,885,134,041 99.996%

(Based on the list from the Depository Center as of 31 December 2023)

Shareholder structure Shareholder structure by TREASURY SHARE TRANSACTIONS

by major and minority individual and institutional
shareholders shareholders From 01 July 2021 to 27 July 2021, Sacombank sold 81,542,200 shares through order-matching transactions and
20,087 shares via agreement transactions. There are no treasury shares in Sacombank as of 31 December 2023.
Major shareholders Individual shareholders
Minority shareholders Institutional shareholders

LIST OF SHARE OWNERSHIP RATIOS WITH VOTING RIGHTS

Shareholder structure Shareholder structure
The number of shares of Sacombank is 1,885,215,716 shares (corresponding to Sacombank's charter capital of
by domestic and foreign by state-owned and other
VND 18,852,157,160,000) including:
shareholders shareholders
Number of outstanding shares: 1,885,215,716 shares
Domestic shareholders State-owned shareholders
Number of treasury shares: 0 share
Foreign shareholders Other shareholders
Treasury share transaction in 2023: None

82 2023 ANNUAL REPORT www.sacombank.com.vn 83

 FINANCIAL
STATEMENTS
&
SUSTAINABLE
91 Consolidated statement of financial position
DEVELOPMENT REPORT
97 Notes to the consolidated financial statements
186 Independent limited assurance statement
on selected subject matters in sustainability report
198 Sustainable development orientation
207 Detailed contents
 GENERAL INFORMATION GENERAL INFORMATION (continued)
BANK INFORMATION BOARD OF SUPERVISION

Saigon Thuong Tin Commercial Joint Stock Bank (“the Bank”) is a commercial joint stock bank incorporated Members of the Board of Supervision of the Bank during the year and at the date of this report are:
in the Socialist Republic of Vietnam.
Name Position Date of appointment/re-appointment
The Bank was established and operates in accordance with Banking License No. 111/GP-NHNN issued
by the State Bank of Vietnam on 9 November 2018 replacing Banking License No. 0006/NH-GP dated 5 Mr. Tran Minh Triet Chief Supervisor Re-appointed on 22 April 2022
December 1991, Business Registration Certificate No. 0301103908 dated 13 January 1992 and other
amendments issued by Ho Chi Minh City Department of Planning and Investment. The Bank’s operation Mr. Nguyen Van Thanh Member Appointed on 22 April 2022
period is 99 years from 5 December 1991. Mr. Lam Van Kiet Member Appointed on 22 April 2022

As at 1 October 2015, Southern Commercial Joint Stock Bank was officially merged into Saigon Thuong Tin Mrs. Ha Quynh Anh Member Appointed on 22 April 2022
Commercial Joint Stock Bank according to Decision No. 1844/QD-NHNN dated 14 September 2015 issued
by the State Bank of Vietnam. Accordingly, Saigon Thuong Tin Commercial Joint Stock Bank has received BOARD OF MANAGEMENT AND CHIEF ACCOUNTANT
and inherited all assets and obligations of Southern Commercial Joint Stock Bank since the date of merger.
Members of the Board of Management and Chief Accountant of the Bank during the year and at the date of
The Bank is allowed to carry out full range of banking services including mobilizing and receiving short, this report are:
medium and long-term deposits from organizations and individuals; providing short, medium and long-term
loans to organizations and individuals based on the Bank’s nature and capacity of the capital resources; Name Position Date of appointment/resignation
foreign exchange trading; international trade financing services; discount of commercial papers, bonds and
other valuable papers; providing settlement services; operating in monetary market; banking and financial Mrs. Nguyen Duc Thach Diem General Director Appointed on 25 July 2017
consultancy; trading in government and corporate bonds; gold trading; cash management services, asset
Mr. Nguyen Minh Tam Deputy General Director Appointed on 21 May 2007
preservation, cabin and safer renting; entrustment and trusteeship services; insurance agent; brokerage
and other banking services as allowed by the State Bank of Vietnam. Mr. Dao Nguyen Vu Deputy General Director Appointed on 27 June 2007

The Bank’s head office is located at 266 - 268 Nam Ky Khoi Nghia Street, Ward Vo Thi Sau, District 3, Ho Chi Mrs. Quach Thanh Ngoc Thuy Deputy General Director Appointed on 5 February 2010
Minh City, Vietnam. As at 31 December 2023, the Bank had one (1) Head Office, one hundred and nine (109) Mr. Bui Van Dung Deputy General Director Appointed on 29 March 2012
branches, four hundred and forty-three (443) domestic transaction offices located in cities and provinces in
Vietnam. Mr. Nguyen Ba Tri Deputy General Director Appointed on 26 July 2012
Mr. Ho Doan Cuong Deputy General Director Appointed on 1 October 2012
BOARD OF DIRECTORS Mr. Ha Van Trung Deputy General Director Appointed on 10 October 2012

Members of the Board of Directors of the Bank during the year and at the date of this report are: Mr. Hoang Thanh Hai Deputy General Director Appointed on 7 April 2014
Mr. Le Duc Thinh Deputy General Director Appointed on 15 September 2017
Name Position Date of appointment/re-appointment Mrs. Nguyen Thi Kim Oanh Deputy General Director Appointed on 4 May 2022
Mr. Duong Cong Minh Chairman Re-appointed on 22 April 2022 Mr. Huynh Thanh Giang Chief Accountant Appointed on 1 June 2012
Mrs. Nguyen Duc Thach Diem Standing Vice Chairman Appointed on 22 April 2022 Mr. Le Van Ron Deputy General Director Resigned on 1 February 2023
Mr. Pham Van Phong Vice Chairman Appointed on 22 April 2022 Mr. Phan Dinh Tue Deputy General Director Resigned on 15 June 2023
Mr. Nguyen Xuan Vu Member Re-appointed on 22 April 2022 Mr. Vo Anh Nhue Deputy General Director Resigned on 15 September 2023
Mr. Phan Dinh Tue Member Appointed on 22 April 2022
LEGAL REPRESENTATIVE
Mr. Vuong Cong Duc Independent member Appointed on 22 April 2022
Mrs. Pham Thi Thu Hang Independent member Appointed on 22 April 2022 The legal representative of the Bank during the year and at the date of this report is Mrs. Nguyen Duc Thach Diem,
General Director.

AUDITORS

The auditor of the Bank is Ernst & Young Vietnam Limited.

86 2023 ANNUAL REPORT www.sacombank.com.vn 87

 Reference: 11635452/66980304-HN

REPORT OF THE BOARD OF MANAGEMENT INDEPENDENT AUDITORS’ REPORT

The Board of Management of Saigon Thuong Tin Commercial Joint Stock Bank (“the Bank”) is pleased to To: The Shareholders of Saigon Thuong Tin Commercial Joint Stock Bank
present this report and the consolidated financial statements of the Bank and its subsidiaries for the year
ended 31 December 2023. We have audited the accompanying consolidated financial statements of Saigon Thuong Tin Commercial
Joint Stock Bank (“the Bank”) and its subsidiaries as prepared on 29 March 2024 and set out on pages
THE BOARD OF MANAGEMENT’S RESPONSIBILITY IN RESPECT OF THE CONSOLIDATED FINANCIAL STATEMENTS 91 to 183, which comprise the consolidated statement of financial position as at 31 December 2023, the
consolidated income statement and the consolidated cash flow statement for the year then ended and the
The Board of Management is responsible for the consolidated financial statements of each financial year notes thereto.
which give a true and fair view of the consolidated financial position of the Bank and its subsidiaries, and of
the consolidated results of its operations and its consolidated cash flows for the year. In preparing those The Board of Management’s responsibility
consolidated financial statements, the Board of Management is required to:
The Bank’s Board of Management is responsible for the preparation and fair presentation of the consolidated
» select suitable accounting policies and apply them consistently; financial statements in accordance with the Vietnamese Accounting Standards, the Vietnamese Accounting
» make judgments and estimates that are reasonable and prudent; System for Credit Institutions, the official approval, guidance of the State Bank of Vietnam for the Post-merger
» state whether applicable accounting standards have been followed, subject to any material departures Restructuring Plan and the Bank’s proposal for the financial regimes and resolutions in the Restructuring
disclosed and explained in the consolidated financial statements; and Plan in relation to accrued interest receivables, VAMC’s special bonds, bad debts, doubtful assets and
investment securities during the restructuring period and the statutory requirements relevant to the
» prepare the consolidated financial statements on the going concern basis unless it is inappropriate to
preparation and presentation of the consolidated financial statements, and for such internal control as
presume that the Bank and its subsidiaries will continue in business.
the Board of Management determines is necessary to enable the preparation and presentation of the
consolidated financial statements that are free from material misstatement, whether due to fraud or error.
The Board of Management is responsible for ensuring that proper accounting records are kept which disclose,
with reasonable accuracy at any time, the consolidated financial position of the Bank and its subsidiaries and Auditors’ responsibility
to ensure that the accounting records comply with the applied accounting system. It is also responsible for
safeguarding the assets of the Bank and its subsidiaries and hence for taking reasonable steps for the prevention Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
and detection of fraud and other irregularities. We conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance
The Board of Management confirmed that it has complied with the above requirements in preparing the about whether the consolidated financial statements of the Bank and its subsidiaries are free from material
accompanying consolidated financial statements. misstatement.

STATEMENT BY THE BOARD OF MANAGEMENT An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on the auditors’ judgment, including
The Board of Management does hereby state that, in its opinion, the accompanying consolidated financial the assessment of the risks of material misstatement of the consolidated financial statements, whether
statements give a true and fair view of the consolidated financial position of the Bank and its subsidiaries due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to
as at 31 December 2023 and of the consolidated results of their operations and their consolidated cash the Bank and its subsidiaries’ preparation and fair presentation of the consolidated financial statements
flows for the year then ended in accordance with the Vietnamese Accounting Standards, the Vietnamese in order to design audit procedures that are appropriate in the circumstances, but not for the purpose
Accounting System for Credit Institutions, the official approval, the guidance of the State Bank of Vietnam of expressing an opinion on the effectiveness of the Bank and its subsidiaries’ internal control. An audit
for the Post-merger Restructuring Plan and the Bank’s proposals for the financial regimes and resolutions also includes evaluating the appropriateness of accounting policies used and the reasonableness of
in the Restructuring Plan in relation to accrued interest receivables, VAMC’s special bonds, bad debts, accounting estimates made by the Board of Management, as well as evaluating the overall presentation of
doubtful assets and investments during the restructuring period as described in Note 3.4 and the statutory the consolidated financial statements.
requirements relevant to the preparation and presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
For and on behalf of the Board of Management: audit opinion.

Mrs. Nguyen Duc Thach Diem

General Director

Ho Chi Minh City, Vietnam

29 March 2024

88 2023 ANNUAL REPORT www.sacombank.com.vn 89

 INDEPENDENT AUDITORS’ REPORT (continued) CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December 2023
B02/TCTD-HN

Opinion Ending balance Beginning balance

Notes VND million VND million
In our opinion, the consolidated financial statements give a true and fair view, in all material respects, of
the consolidated financial position of the Bank and its subsidiaries as at 31 December 2023, and of the ASSETS
consolidated results of its operations and its consolidated cash flows for the year then ended in accordance Cash, gold and gemstones 5 7,545,270 7,849,898
with Vietnamese Accounting Standards, Vietnamese Accounting System for Credit Institutions, the official
Balances with the State Bank 6 12,848,045 12,286,117
approval, the guidance of the State Bank of Vietnam for the Post-merger Restructuring Plan and the
Bank’s proposals for financial regimes and resolutions in the Restructuring Plan in relation to accrued Due from and loans to other credit institutions 50,332,971 25,293,585
interest receivables, VAMC’s special bonds, bad debts, doubtful assets and investment securities during
Due from other credit institutions 7.1 50,114,401 24,968,280
the restructuring period and the statutory requirements relevant to the preparation and presentation of the
consolidated financial statements. Loans to other credit institutions 7.2 218,570 325,305
Derivatives and other financial assets 8 - 109,858
Emphasis of matter
Loans to customers 475,169,108 432,997,593
We draw attention to Note 3.4 - “Accounting policies on items in the Restructuring Plan approved by the Loans to customers 9 482,731,122 438,627,777
State Bank of Vietnam”. The Bank has recognized, measured and presented items in the consolidated
financial statements in accordance with the Bank’s proposals in the Restructuring Plan, the report of the Provision for credit losses on loans to customers 11.1 (7,562,014) (5,630,184)
implementation progress of the Restructuring Plan and the State Bank of Vietnam’s official approval and Purchased debts 10 - 102,642
guidance.
Purchased debts - 124,710
Our opinion is not modified in respect of this matter. Provision for credit losses on purchased debts - (22,068)
Investment securities 74,635,845 68,800,687
Ernst & Young Vietnam Limited Available-for-sale securities 12.1 22,562,535 27,896,339
Held-to-maturity securities 12.2 66,688,978 55,551,832
Provision for investment securities 12.3 (14,615,668) (14,647,484)
Long-term investments 13 82,642 88,812
Other long-term investments 97,014 97,014
Provision for long-term investments (14,372) (8,202)
Nguyen Phuong Nga Hoang Thi Hong Minh
Fixed assets 7,269,440 7,547,677
Deputy General Director Auditor
Audit Practicing Registration Audit Practicing Registration Tangible fixed assets 14.1 4,282,772 4,489,795
Certificate No. 0763-2024-004-1 Certificate No. 0761-2023-004-1
Cost 8,340,278 7,857,573

Ho Chi Minh City, Vietnam Accumulated depreciation (4,057,506) (3,367,778)

Intangible fixed assets 14.2 2,986,668 3,057,882
29 March 2024
Cost 4,760,547 4,522,417
Accumulated amortization (1,773,879) (1,464,535)
Other assets 46,506,339 36,830,826
Receivables 15.1 42,027,312 32,716,333
Interest and fees receivable 15.2 5,686,993 5,078,974
Deferred corporate income tax assets 22.2 397,824 242,847
Other assets 15.3 1,300,900 1,226,733
Provision for other assets 15.4 (2,906,690) (2,434,061)
TOTAL ASSETS 674,389,660 591,907,695

90 2023 ANNUAL REPORT www.sacombank.com.vn 91

 CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
as at 31 December 2023
B02/TCTD-HN
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
as at 31 December 2023
B02/TCTD-HN

Ending balance Beginning balance OFF CONSOLIDATED BALANCE SHEET ITEMS

Notes VND million VND million

LIABILITIES Ending balance Beginning balance

Notes VND million VND million
Debts owed to the Government and the State Bank of Vietnam 16 19,328 9,901,209
Contingent liabilities and commitments 36 141,045,166 64,201,170
Due to and borrowings from the Government 19,328 9,901,209
In which:
Due to and borrowings from other credit institutions 37,950,111 28,430,448
Guarantees for borrowings 33,598 66,327
Due to other credit institutions 17.1 34,386,028 21,729,677
Foreign exchange commitments 122,663,800 48,005,012
Borrowings from other credit institutions 17.2 3,564,083 6,700,771
» Commitments on buying foreign currencies 449,709 983,192
Due to customers 18 510,744,394 454,740,496
» Commitments on selling foreign currencies 1,103,464 1,099,574
Derivatives and other financial liabilities 8 91,459 -
» Commitments on swap transactions 121,110,627 45,922,246
Grants, entrusted funds and loans exposed to risks 19 323,147 239,837
Letters of credit 7,075,433 4,768,784
Valuable papers issued 20 28,992,491 25,820,307
Other guarantees 11,272,335 11,361,047
Other liabilities 50,534,866 34,148,402
Interest and receivable fees not yet collected 37 30,469,857 29,260,397
Interest and fees payable 21.1 11,643,974 7,516,570
Written-off bad debts 38 6,676,375 4,751,164
Deferred corporate income tax liabilities 22.2 29,660 29,460
Assets and other documents 39 84,007,389 70,249,551
Other liabilities 21.2 38,836,726 26,573,974
Other risk provision (Provision for contingent liabilities and Prepared by: Reviewed by: Approved by:
24,506 28,398
off-balance-sheet commitments)
TOTAL LIABILITIES 628,655,796 553,280,699
OWNERS’ EQUITY
Capital 20,601,582 20,601,582
Charter capital 18,852,157 18,852,157
Fund for capital expenditure 1,121 1,121 Mr. Luu Van Hoa Mr. Huynh Thanh Giang Mrs. Nguyen Duc Thach Diem
Accountant Chief Accountant General Director
Share premium 1,747,651 1,747,651
Other capital 653 653 Ho Chi Minh City, Vietnam
Reserves 4,971,157 4,223,224 29 March 2024
Foreign currency translation reserve (225,489) (169,492)
Retained earnings 20,386,614 13,971,682
TOTAL OWNERS’ EQUITY 23.1 45,733,864 38,626,996
TOTAL LIABILITIES AND OWNERS’ EQUITY 674,389,660 591,907,695

92 2023 ANNUAL REPORT www.sacombank.com.vn 93

 CONSOLIDATED INCOME STATEMENT
for the year ended 31 December 2023
B03/TCTD-HN
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 31 December 2023
B04/TCTD-HN

Current year Previous year Current year Previous year

Notes VND million VND million Notes VND million VND million

Interest and similar income 25 55,927,329 37,390,848 CASH FLOWS FROM OPERATING ACTIVITIES
Interest and similar expenses 26 (33,854,996) (20,243,714) Interest and similar receipts 55,963,261 43,124,578
Net interest and similar income 22,072,333 17,147,134 Interest and similar payments (29,631,339) (18,643,180)
Fee and commission income 6,136,710 8,329,935 Net fee and commission receipts 2,769,866 5,148,108
Fee and commission expenses (3,518,807) (3,135,855) Net receipts from trading of securities, gold and foreign currencies 1,029,602 944,709
Net fee and commission income 27 2,617,903 5,194,080 Receipts from other activities 243,927 295,376
Net gain from trading of foreign currencies 28 1,099,548 1,062,244 Recoveries from bad debts previously written-off 30 79,680 364,589
Net gain/(loss) from investment securities 29 33,817 (19,983) Payments for operations and salary expenses (11,560,011) (10,527,750)
Other operating income 445,447 2,874,203
Corporate income tax paid during the year 22 (840,774) (1,426,196)
Other operating expenses (118,874) (128,854)
Net cash flows from operating activities before changes in
18,054,212 19,280,234
Net gain from other operating activities 30 326,573 2,745,349 operating assets and liabilities
Income from investments in other entities 31 22,837 12,466 Changes in operating assets (62,898,852) (67,316,015)
TOTAL OPERATING INCOME 26,173,011 26,141,290 Decrease in due from and loans to other credit institutions 106,735 349,881
Personnel expenses (6,869,829) (6,882,923) Increase in trading securities (6,433,560) (8,427,255)
Depreciation and amortization charges (1,148,589) (665,889) Increase in derivatives and other financial assets - (217,861)
Other operating expenses (4,871,488) (3,371,905) Increase in loans to customers (43,985,521) (50,495,473)
TOTAL OPERATING EXPENSES 32 (12,889,906) (10,920,717) Utilization of provision to write off loans to customers, securities
(1,835,071) (1,829,425)
Net operating profit before provision expense for credit losses 13,283,105 15,220,573 and long-term investments

Provision expense for credit losses 11 (3,688,105) (8,881,501) Increase in other operating assets (10,751,435) (6,695,882)

PROFIT BEFORE TAX 9,595,000 6,339,072 Changes in operating liabilities 71,595,994 63,576,273
Current corporate income tax expense 22.1 (2,016,154) (1,168,567) (Decrease)/increase in debts owed to the Government and
(9,881,881) 9,378,464
the State Bank of Vietnam
Deferred corporate income tax income/(expense) 22.2 139,770 (129,810)
Increase in due to and borrowings from other credit institutions 10,863,621 12,467,476
Corporate income tax expenses (1,876,384) (1,298,377)
Increase in due to customers 56,003,898 27,353,724
PROFIT AFTER TAX 7,718,616 5,040,695
Increase in derivatives and other financial liabilities 201,317 -
Basic earnings per share (VND/share) 24 4,094 2,380
Increase/(decrease) in grants, entrusted funds and loans
83,310 (39,103)
exposed to risks
Prepared by: Reviewed by: Approved by:
Increase in valuable papers issued 3,209,262 4,728,128
Increase in other operating liabilities 11,126,535 9,700,996
Utilization of reverses during the year 21.2 (10,068) (13,412)
Net cash from operating activities 26,751,354 15,540,492
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets (1,287,591) (1,142,501)
Mr. Luu Van Hoa Mr. Huynh Thanh Giang Mrs. Nguyen Duc Thach Diem
Accountant Chief Accountant General Director Proceeds from disposals of fixed assets 9,921 2,841,841
Dividends received and profit distributed from long-term
22,837 12,466
Ho Chi Minh City, Vietnam investments

29 March 2024 Net cash (used in)/from investing activities (1,254,833) 1,711,806

94 2023 ANNUAL REPORT www.sacombank.com.vn 95

 CONSOLIDATED CASH FLOW STATEMENT (continued)
for the year ended 31 December 2023
B04/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

Current year Previous year

1. BANK INFORMATION
Notes VND million VND million
Saigon Thuong Tin Commercial Joint Stock Bank (“the Bank”) is a commercial joint stock bank
CASH FLOWS FROM FINANCING ACTIVITY incorporated in the Socialist Republic of Vietnam.
Proceeds from the issuance of long-term valuable papers
- 474,811 Establishment and Operations
eligible to be included in equity and other long-term loans
Payments for long-term valuable papers eligible to be included in The Bank was established and operated in accordance with Banking License No. 111/GP-NHNN
(37,078) (486,411)
equity and other long-term loans
issued by the State Bank of Vietnam on 9 November 2018 replacing Banking License No. 0006/NH-GP
Dividends distributed to shareholders 23.2 (25) (173) dated 5 December 1991, Business Registration Certificate No. 0301103908 dated 13 January 1992
and other amendments issued by Ho Chi Minh City Department of Planning and Investment. The
Net cash used in financing activity (37,103) (11,773)
Bank’s operation period is 99 years from 5 December 1991.
Net cash flows during the year 25,459,418 17,240,525
On 1 October 2015, Southern Commercial Joint Stock Bank was officially merged into Saigon Thuong
Cash and cash equivalents at beginning of the year 33 45,104,295 28,070,625
Tin Commercial Joint Stock Bank according to Decision No. 1844/QD-NHNN dated 14 September
Foreign exchange difference 23.1 (55,997) (206,855) 2015 issued by the State Bank of Vietnam. Accordingly, Saigon Thuong Tin Commercial Joint Stock
Cash and cash equivalents at the end of the year 33 70,507,716 45,104,295 Bank has received and inherited all assets and obligations of Southern Commercial Joint Stock
Bank since the date of merger.
Prepared by: Reviewed by: Approved by:
The Bank is allowed to carry out full range of banking services including mobilizing and receiving
short, medium and long-term deposits from organizations and individuals; providing short, medium
and long-term loans to organizations and individuals based on the Bank’s nature and capacity of
the capital resources; foreign exchange trading; international trade financing services; discount of
commercial papers, bonds and other valuable papers; providing settlement services, operating in
monetary market; banking and financial consultancy; trading in government and corporate bonds;
gold trading; cash management services, asset preservation; cabin and safer renting; entrustment
and trusteeship services; insurance agent; brokerage and other banking services as allowed by the
Mr. Luu Van Hoa Mr. Huynh Thanh Giang Mrs. Nguyen Duc Thach Diem State Bank of Vietnam.
Accountant Chief Accountant General Director
Charter capital
Ho Chi Minh City, Vietnam
29 March 2024 The charter capital of the Bank as at 31 December 2023 amounted to VND18,852,157 million
(31 December 2022: VND18,852,157 million). The Bank has issued 1,885,215,716 ordinary shares
with a par value of VND10,000 per share. The Bank’s shares have been listed on the Ho Chi Minh
City Stock Exchange.

Network

The Bank’s Head Office is located at 266 - 268 Nam Ky Khoi Nghia Street, Ward Vo Thi Sau, District 3,
Ho Chi Minh City, Vietnam. As at 31 December 2023 and 31 December 2022, the Bank had one (1)
Head Office, one hundred and nine (109) branches, four hundred and forty-three (443) domestic
transaction offices located in cities and provinces in Vietnam.

96 2023 ANNUAL REPORT www.sacombank.com.vn 97

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

1. BANK INFORMATION (CONTINUED) 2. ACCOUNTING PERIOD AND ACCOUNTING CURRENCY

Subsidiaries 2.1 Fiscal year

As at 31 December 2023, the Bank has six (6) subsidiaries as follows: The Bank and its subsidiaries’ fiscal year start on 1 January and end on 31 December.

2.2 Accounting currency

Business Registration
Certificate/
Subsidiaries Operating License No. Nature of Business Ownership The Bank and its subsidiaries maintain its accounting recorded in Vietnam dong (“VND”). According
to Circular No. 49/2014/TT-NHNN, for the purpose of preparing these consolidated financial
Sacombank Asset statements, the amounts are rounded to the nearest millions and presented in millions of Vietnam
4104000053 Asset management 100%
Management Co., Ltd.
dong (“VND million”).
Mobilizing capital and leasing
Sacombank Leasing Co., Ltd. 65a/GP-NHNN 100%
activities 3. APPLIED ACCOUNTING STANDARDS AND SYSTEM
Sacombank Remittance Foreign currency remittance service
0304242674 100% 3.1 Statement of compliance
Express Co., Ltd. and foreign exchange agent
Retailing gold, silver and precious The Board of Management of the Bank confirms that the accompanying consolidated financial statements
stones, jewelry; commercial have been prepared in accordance with Vietnamese Accounting Standards, Vietnamese Accounting
Sacombank Jewelry Co., Ltd. 0305584790 100%
inspection; gold trading,
System for Credit Institutions, the official approval, the guidance of the State Bank of Vietnam for the
manufacturing gold and jewelry
Post-merger Restructuring Plan and the Bank’s proposals for the financial regimes and resolutions
Sacombank (Cambodia) Plc. N.27 Banking business 100% in the Restructuring Plan in relation to accrued interest receivables, VAMC’s special bonds, bad debts,
Sacombank (Lao) Sole Co., Plc. 07/NHNN-Lao Banking business 100%
doubtful assets and investment securities during the restructuring period and the statutory requirements
relevant to the preparation and presentation of the consolidated financial statements.
Employees
3.2 Accounting standards and system
The Bank and its subsidiaries’ total number of employees as at 31 December 2023 were 18,514
The consolidated financial statements of the Bank and its subsidiaries are prepared in accordance
persons (31 December 2022: 18,436 persons).
with the Accounting System applicable to credit institutions required under Decision No. 479/2004/
QD-NHNN issued on 29 April 2004, Circular No. 10/2014/TT-NHNN dated 20 March 2014, Circular
No. 22/2017/TT-NHNN dated 29 December 2017 and Circular No. 27/2021/TT-NHNN dated
31 December 2021 amending and supplementing Decision No. 479/2004/QD-NHNN, Decision
No. 16/2007/QD-NHNN dated 18 April 2007; Circular No. 49/2014/TT-NHNN amending and
supplementing a number of articles of Decision No. 16/2007/QD-NHNN and the chart of account
system for credit institutions issued in connection with Decision No. 479/2004/QD-NHNN by the
State Bank of Vietnam; Decision No. 34/QD-NHNN.Tym dated 22 May 2017, Official Letter No. 426/
NHNN-TTGSNH.Tym dated 22 May 2017 and the official approval, the guidance by the State Bank of
Vietnam for the Post-merger Restructuring Plan and the Bank’s proposals for the financial regimes
and resolutions in the Restructuring Plan as described in Note 3.4 and other Vietnamese Accounting
Standards issued by the Ministry of Finance as per:

» Decision No. 149/2001/QD-BTC dated 31 December 2001 on the Issuance and Promulgation of
Four Vietnamese Standards on Accounting (Series 1);
» Decision No. 165/2002/QD-BTC dated 31 December 2002 on the Issuance and Promulgation of
Six Vietnamese Standards on Accounting (Series 2);
» Decision No. 234/2003/QD-BTC dated 30 December 2003 on the Issuance and Promulgation of
Six Vietnamese Standards on Accounting (Series 3);
» Decision No. 12/2005/QD-BTC dated 15 February 2005 on the Issuance and Promulgation of
Six Vietnamese Standards on Accounting (Series 4); and
» Decision No. 100/2005/QD-BTC dated 28 December 2005 on the Issuance and Promulgation of
Four Vietnamese Standards on Accounting (Series 5).

98 2023 ANNUAL REPORT www.sacombank.com.vn 99

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

3. APPLIED ACCOUNTING STANDARDS AND SYSTEM (CONTINUED) 3. APPLIED ACCOUNTING STANDARDS AND SYSTEM (CONTINUED)

3.2 Accounting standards and system (continued) 3.4 Accounting policies on items in the Restructuring Plan approved by the State Bank of Vietnam
(continued)
The accompanying consolidated financial statements have been prepared in accordance with
accounting principles and practices generally accepted in Vietnam. Accordingly, the accompanying The contents of the Post-merger Restructuring Plan, the Bank’s proposals and SBV’s official
consolidated financial statements, including their utilization are not designed for those who are not approvals, implementation guidances (Decision No. 34/QD-NHNN.Tym, Official Letter No. 426/
informed about Vietnam’s accounting principles, procedures and practices and furthermore are NHNN-TTGSNH.Tym and Official Letter No. 1010/NHNN-TTGSNH) (hereinafter referred to as
not intended to present the consolidated financial position, the consolidated results of operations “Restructure Plan”) form the basis for recognition, measurement and presentation of relevant items
and the consolidated cash flows in accordance with accounting principles and practices generally in the consolidated financial statements. The basis is summarized as follows:
accepted in countries other than Vietnam.
» Accrued interest receivables: The Bank is permitted to block accrued interest receivables
Items or balances required by Decision No. 16/2007/QD-NHNN dated 18 April 2007 and Circular of certain bad debts and doubtful assets in its consolidated financial statements as at 31
No. 49/2014/TT-NHNN dated 31 December 2014 issued by the State Bank of Vietnam stipulating December 2015 and amortize such accrued interest receivables to profit and loss based on its
the financial statements reporting mechanism for credit institutions that are not shown in these financial capability over a maximum period of 10 years in line with detailed proposals in the
consolidated financial statements indicate nil balance. Restructuring Plan.

3.3 Basis of consolidation » Provision for credit losses: The Bank is permitted to make and allocate provision for credit
losses based on its financial capability in line with detailed proposals in the Restructuring Plan;
The consolidated financial statements comprise the separate financial statements of the Bank and
its subsidiaries for the year ended 31 December 2023. » Special bonds issued by VAMC: The Bank is permitted to make and allocate provision for VAMC’s
special bonds based on its financial capability during the term of the bonds (Note 12.2);
Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Bank
obtains control, and continue to be consolidated until the date that such control ceases. » Doubtful assets, foreclosed assets: The Bank is required to develop specific processes and
plan to completely resolve the foreclosed assets to recover these bad assets. The Bank is
The financial statements of the subsidiaries are prepared for the same reporting period as the Bank, permitted to sell its bad debts and doubtful assets to organizations and individuals at market
using consistent accounting policies. prices and amortize losses arising from sales of these debts to profit and loss based on its
financial capability over a maximum period of 5 years from the selling date (Note 15.1 and 15.3).
All intra-group balances, income and expenses and unrealized gains or losses resulting from Foreclosed assets in Inspection Conclusion No.04/KLTT-TTGSNH.m would be addressed by SBV
intra-group transactions are eliminated in full. in a separate document later (Note 15.4);

3.4 Accounting policies on items in the Restructuring Plan approved by the State Bank of Vietnam » Investments in excess of 11% of the investee’s charter capital and cross ownership: The Bank is
approved to follow the proposed schedule for resolving these investments in the Restructuring
On 22 May 2017, the Post-merger Restructuring Plan of Saigon Thuong Tin Commercial Joint Plan to comply with the prevailing regulations.
Stock Bank with the implementation period until the end of 2025 and the Bank’s proposals for the
financial regimes and resolutions in relation to accrued interest receivables, VAMC’s special bonds, For the year ended 31 December 2023, the Bank has ceased to apply certain policies within the
bad debts, doubtful assets and investments during the restructuring period was approved by the Restructure Plan as follows:
State Bank of Vietnam according to Decision No. 34/QD-NHNN.Tym and Official Letter No. 426/
NHNN-TTGSNH.Tym. During the implementation of the Restructuring Plan, the Bank periodically » Accrued interest: The Bank has collected and allocated all accrued interest and fees within the
submits the progress reports, escalates difficulties (if any) and proposes the solution to the State Plan up to 31 December 2022. Therefore, for the year ended 31 December 2023, the Bank no
Bank of Vietnam. On 18 December 2020, the State Bank of Vietnam issued Official letter No. 1010/ longer allocates this accrued interest and fees to the operating expense of the Bank based on
NHNN-TTGSNH to provide guidance on the Bank’s additional proposal as specified in the report of financial capacity. The Bank records accrued interest as required by current legal regulations
implementing results of the Post-merger Restructuring Plan. (Note 4.23). The change in accounting policy is because the Bank no longer has items that need
to apply the policies within the Restructure Plan for the current year; therefore, the Bank does
not make retrospective adjustments with regards to this change.

» Additionally, as of 31 December 2023, the Bank no longer holds investments in shares exceeding
11% of the company’s charter capital.

100 2023 ANNUAL REPORT www.sacombank.com.vn 101

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

3. APPLIED ACCOUNTING STANDARDS AND SYSTEM (CONTINUED) 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

3.5 Accounting estimates and assumptions 4.3 Due from and loans to other credit institutions

Due from and loans to other credit institutions are presented at the principal amounts outstanding at the
The preparation of the consolidated financial statements requires the Board of Management
end of the year.
make estimates and assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent liabilities. These estimates and assumptions also affect the income, the The credit risk classification of due from and loans to other credit institutions and provision for credit risks
expenses and provisions. Such estimates are based on assumptions involving varying degrees thereof are provided in accordance with Circular 11.
of subjectivity and uncertainty. Therefore, actual results may differ from estimates, resulting in
future changes to such items. Accordingly, the Bank and its subsidiaries make a specific provision for due from (except for current
accounts) and loans to other credit institutions according to the method as described in Note 4.6.
3.6 Going concern
According to Circular 11, the Bank and its subsidiaries are not required to make a general provision for due
from and loans to other credit institutions.
The Board of Management has taken all necessary measures to maintain the Bank’s operation
continuity, including the recovery of matured debts and bad debts, maintenance of existing customer 4.4 Purchased debts
deposits, finding new customers, deployment of new services and products, strictly control of
operating expenses, etc. Simultaneously, the Board of Management has also implemented the bad Purchased debts are recognized at the amount which has been paid for debt purchase and classified
debt recovery and restructuring according to the Merger Plan and the Restructuring Plan as approved into the group of risk which is not lower than the group of debts classified before purchase. Interest
by the State Bank of Vietnam. The Board of Management believes that with the implementation of receipt including the interest incurred before the purchase is recognized using the following principle:
the above measures, the Bank and its subsidiaries will continue to operate in the definite future. As a (i) reduce the value of purchased debts by the amount of interest incurred before the purchase date,
result, these consolidated financial statements have been prepared on the going assumption basis. (ii) recognize the interest income in the period by the amount incurred after the purchase date.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The purchased debts are classified into loan groups and made provisions against credit risks in
accordance with regulations on making provisions and using of provisions against credit risks as
4.1 Changes in accounting policies and disclosures described in Note 4.6.

4.5 Loans to customers

The accounting policies adopted by the Bank and its subsidiaries in preparation of the consolidated
financial statements are consistent with those followed in the preparation of the Bank’s consolidated Loans to customers are disclosed and presented at the principal amounts outstanding at the end
financial statements for the year ended 31 December 2022, except for the following: of the year.

Accrued interest: The Bank recognizes accrued interest in accordance with current legal regulations Short-term loans have maturity of less than one year from disbursement date. Medium-term loans
for the year ended 31 December 2023 and does not allocate accrued interest based on financial have maturity of more than one to five years from disbursement date. Long-term loans have maturity
capacity as per the Restructuring Plan (details in Note 4.23). of more than five years from disbursement date.

Loan classification and provision for credit losses are made according to Circular 11 as described
Circular No. 02/2023/TT-NHNN (“Circular 02”) was issued by the SBV on 23 April 2023 to provide
in Note 4.6.
instructions for credit institutions and foreign branch banks on loan restructuring and retention of loan
classification to support borrowers facing financial difficulties 4.6 Loan classification and provision for credit losses applied to due from and loans to other credit
institutions, unlisted corporate bonds purchased and trusted for purchase by the Bank, loans to
Main provisions of Circular 02 include: customers, entrusted for credit granting by the Bank and other credit risk bearing assets

» Scope and conditions of debt with rescheduled repayment term; 4.6.1 Loan classification and provision for credit losses
» Principles of keeping the same group of debts and classifying debts, accounting for accrued The classification of due from and loans to other credit institutions, unlisted corporate bonds
interest and making provision for debts whose principal and/or interest balances are rescheduled purchased and trusted for purchase by the Bank (including bonds issued by other credit institutions),
for repayment. loans to customers, entrusted for credit granting by the Bank, sales and purchases of debts,
This Circular takes effect from 24 April 2023. promissory notes and bills, certificates of deposit, bonds issued by other credit institutions and
foreign bank branches, repo on government bonds (collectively called “debts”) is made in compliance
4.2 Cash and cash equivalents with the quantitative method as prescribed in Article 10 of Circular 11.

The Bank and its subsidiaries make a general provision according to Article 13 of Circular 11 at the rate
Cash and cash equivalents comprise cash on hand, gold and gemstones balances with the State of 0.75% of the total outstanding loans classified from 1 to 4 as at 32 December excluding placements
Bank, due from other credit institutions on demand or with an original maturity of less than three with and loans to other credit institutions, promissory notes and bills; certificates of deposit, bonds
months from the transaction date which are readily convertible into certain amounts of cash and issued by other credit institutions and foreign bank branches; repo on government bonds.
subject to insignificant risks of change in value at the reporting date.

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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4.6 Loan classification and provision for credit losses applied to due from and loans to other credit 4.6 Loan classification and provision for credit losses applied to due from and loans to other credit
institutions, unlisted corporate bonds purchased and trusted for purchase by the Bank, loans to institutions, unlisted corporate bonds purchased and trusted for purchase by the Bank, loans to
customers, entrusted for credit granting by the Bank and other credit risk bearing assets (continued) customers, entrusted for credit granting by the Bank and other credit risk bearing assets (continued)

4.6.1 Loan classification and provision for credit losses (continued) 4.6.1 Loan classification and provision for credit losses (continued)

The specific provision as at 31 December 2023 is made based on the outstanding principal balance
Provision
less discounted value of collaterals multiplied by provision rates which are determined based on the Loan group Description
rate
loan classification results as at 31 December. The basis for value and discounted value determination
for each type of collateral is specified in Circular 11. 4 Doubtful (a) Debts are overdue for a period of between 181 days and 360 days; or
(b) Debts that repayment terms are restructured for the first time but still
The debt classification and specific provision rates for each group are presented as follows: overdue for a period of 90 days under that restructured repayment term; or
(c) Debts that repayment terms are restructured for the second time; or
Provision
Loan group Description (d) Debts are specified in point (d) of Loan group 3 and overdue for a period
rate
between 30 days and 60 days after decisions of recovery have been issued; or
1 Current (a) Debts are in due and assessed as fully and timely recoverable for both (e) Debts are required to be recovered according to regulatory inspection
principals and interests; or 50%
conclusions but still overdue for a period up to 60 days since the recovery
(b) Debts are overdue for a period of less than 10 days and assessed as fully 0% date as required by regulatory inspection conclusions; or
recoverable for both overdue principals and interests, and fully and timely (f) Debts are required to be recovered according to credit institutions, foreign
recoverable for both remaining principals and interests. bank branches’ decisions on early payment due to customers' breach of
2 Special (a) Debts are overdue for a period of between 10 days and 90 days; or agreements but have not yet been recovered for a period between 30 days to
Mention 5% 60 days from the issuance date of the decision; or
(b) Debts that repayment terms are restructured for the first time.
(g) At the request of the SBV based on the inspection, supervision conclusions
3 Sub- (a) Debts overdue for a period between 91 days and 180 days; or and relevant credit information.
Standard
(b) Debts that repayment terms are extended for the first time; or 5 Loss (a) Debts are overdue for a period of more than 360 days; or
(c) Debts that interests are exempted or reduced because customers do not (b) Debts that repayment terms are restructured for the first time and overdue for
have sufficient capability to repay all interests under agreement; or a period of 91 days or more under the first restructured repayment term; or
(d) Debts under one of the following cases which have not been recovered in less (c) Debts that repayment terms are restructured for the second time and overdue
than 30 days from the date of the recovery decision: under that second restructured repayment term; or
» Debts violating Clause 1, 3, 4, 5, 6 under Article 126 of Law on Credit (d) Debts that repayment terms are restructured for the third time or more,
Institutions; or regardless of being overdue or not; or
» Debts violating Clause 1, 2, 3, 4 under Article 127 of Law on Credit (e) Debts are specified in point (d) of Loan group 3 and overdue for a period of
Institutions; or 20% more than 60 days after decisions on recovery have been issued; or
» Debts violating Clauses 1, 2 and 5 under Article 128 of Law on Credit (f) Debts required to be recovered according to regulatory inspection 100%
Institutions. conclusions but still outstanding with an overdue period over 60 days since
(e) Debts are required to be recovered according to regulatory inspection the recovery date as required by regulatory inspection conclusions; or
conclusions; or (g) Debts are required to be recovered according to credit institutions, foreign
(f) Debts are required to be recovered according to credit institutions, foreign bank branches’ decisions on early payment due to customers' breach of
bank branches’ decisions on early payment due to customers' breach of agreements but have not yet been recovered for a period of more than 60
agreements but have not yet been recovered in 30 days from the issuance days from the issuance date of the decision; or
date of the decision; or (h) Debts of credit institutions under special control as announced by the SBV, or
(g) At the request of the SBV based on the inspection, supervision conclusions debts of foreign bank branches that capital and assets are blocked; or
and relevant credit information. (i) At the request of the SBV based on the inspection, supervision conclusions
and relevant credit information.

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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4.6 Loan classification and provision for credit losses applied to due from and loans to other credit 4.6 Loan classification and provision for credit losses applied to due from and loans to other credit
institutions, unlisted corporate bonds purchased and trusted for purchase by the Bank, loans to institutions, unlisted corporate bonds purchased and trusted for purchase by the Bank, loans to
customers, entrusted for credit granting by the Bank and other credit risk bearing assets (continued) customers, entrusted for credit granting by the Bank and other credit risk bearing assets (continued)

4.6.1 Loan classification and provision for credit losses (continued) 4.6.2 Loan restructuring and loan classification retention support borrowers facing financial difficulties
(continued)
Where a customer has more than one debt with the Bank and its subsidiaries and any of the
outstanding debts is classified into a higher risk group, the Bank and its subsidiaries have to classify Accordingly, the Bank applies loan classification for loans that fall under the policy of loan
the entire remaining debts of that customer into the corresponding higher risk group. restructuring and loan classification retention as follows:

When the Bank and its subsidiaries participate in a syndicated loan as a participant, it classifies
Disbursement date Overdue status Overdue date Principle of loan classification retention
loans (including syndicated loans) of the customer into the higher of the risk group assessed by the
leading bank and by the Bank and its subsidiaries. Before 1/8/2021 Current or From 30/3/2020 Retain the latest loan classification as before
overdue for a to 30/6/2022 23 January 2020 or as before the first-time
In case a customer's debt is classified into a loan group with a lower risk group than the loan period of up to restructuring date
10 days
group according to the classification result provided by the Vietnam National Credit Information
Center under the State Bank of Vietnam (“CIC”), the Bank and its subsidiaries must adjust the debt Before 23/1/2020 Overdue From 23/1/2020 Retain the latest loan classification as before 23
classification results according to the loan group provided by the CIC. to 29/3/2020 January 2020
From 23/1/2020 to From 23/1/2020 Retain the latest loan classification as before
4.6.2 Loan restructuring and loan classification retention support borrowers facing financial difficulties 10/6/2020 to 17/5/2021 overdue transferring date

From 13 March 2020 to 30 June 2022, the Bank applied the policy of loan restructuring, interest From 10/6/2020 to From 17/7/2021
and/or fees exemption or reduction and loan classification retention for loans that meet conditions 1/8/2021 to 7/9/2021
according to Circular No. 01/2020/TT-NHNN dated 13 March 2020 (“Circular 01”), Circular Before 24/4/2023 Current or From 24/4/2023 Retain the latest loan classification as before the
No. 03/2021/TT-NHNN dated 2 April 2021 (“Circular 03”) and Circular No. 14/2021/TT-NHNN dated 7 overdue for a to 30/6/2024 restructuring date
September 2021 (“Circular 14”) issued by the State Bank of Vietnam providing regulations on loan period of 10 days
restructuring, interest and/or fees exemption or reduction and loan classification retention to assist
customers affected by the COVID-19 pandemic. For loans, which repayment term was restructured, interest and/or fees were exempted or
reduced and loan classification was retained, are overdue under restructured repayment term and
From 24 April 2023, the Bank applied the policy of loan restructuring and loan classification not continued to restructure under current regulations, the Bank makes loan classification and
retention to support customers who face difficulties in production and business activities, as well as provision in accordance with Circular 11.
facing difficulties in repaying loans to meet their daily life and consumption needs. This policy aligns
with the conditions set forth in Circular 02 issued by the State Bank of Vietnam, which provides
instructions to credit institutions and foreign branch banks on loan restructuring and the retention
of loan classification to assist borrowers facing financial difficulties.

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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
4.6 Loan classification and provision for credit losses applied to due from and loans to other credit 4.7 Available-for-sale securities (continued)
institutions, unlisted corporate bonds purchased and trusted for purchase by the Bank, loans to
customers, entrusted for credit granting by the Bank and other credit risk bearing assets (continued) 4.7.1 Classification and recognition (continued)

4.6.3 Specific provision for customers with debts that have been restructured on term basis and are subject Available-for-sale debt securities are recognized at par value at the purchase date. Accrued interest
to loan classification retention (for debt securities with interest payment in arrears) and deferred interest (for debt securities with
interest payment in advance) is recognized in a separate account. Discount/premium, which is the
The Bank makes specific provision for customers with debts that have been restructured on difference between the cost and the amount being the par value plus (+) accrued interest (if any) or
term basis and are subject to loan classification retention according to the following formula: minus (-) deferred interest (if any) is also recognized in a separate account.
C=A-B
In subsequent periods, these securities are continuously recorded at par value, and the discount/
In which:
premium (if any) is amortized to the consolidated income statement on a straight-line basis over the
C: Additional specific provision; remaining term of securities. Interest received in arrears is recorded as follows: Cumulative interest
incurred before the purchasing date is recorded as a decrease in the accrued interest; cumulative
A: Specific provision to be made for all outstanding loan balance of customers according to the
interest incurred after the purchasing date is recognized as income based on the accumulated
results of loan classification under Circular 11 (Note 4.6.1);
method. Interest received in advance is amortized into the securities investment interest income on
B: Total specific provision to be made for the outstanding balance of loans applying loan classification a straight-line basis over the term of securities investment.
under the policy of loan classification retention (Note 4.6.2) and specific provision to be made for
remaining loan balances of the customers according to the results of loan classification under 4.7.2 Measurement
Circular 11 (Note 4.6.1). Periodically, available-for-sale securities will be considered for impairment.
Additional specific provision (called as C) is made by the Bank when preparing financial statements, Provision for impairment of securities is made when carrying value of the securities is higher than
ensuring the provisioning at as follows: its market value in compliance with Circular No. 48/2019/TT-BTC and Circular No. 24/2022/TT-BTC.
» For loans that fall under the policy of loan restructuring and loan classification retention as Provision for impairment is recognized in the “Net gain/(loss) from investment securities” account
prescribed in Circular 01, Circular 03, and Circular 14: of the consolidated income statement.
+ By 31 December 2022: At least 60% of the additional specific provision must be made; For corporate bonds that have not yet been listed on the securities market or have not been registered
for trading on unlisted public companies, the Bank and its subsidiaries shall made provisions for
+ By 31 December 2023: 100% of the additional specific provision must be made.
those bonds in accordance with Circular 11 as described in Note 4.6.
» For loans that fall under the policy of loan restructuring and loan classification retention as
prescribed in Circular 02: Provision for securities held for trading which is mentioned above is reversed when the recoverable
amount of securities held for trading increases after the provision is made as a result of an objective
+ By 31 December 2023: At least 50% of the additional specific provision must be made; event. Provision is reversed up to the gross value of these securities before the provision is made.
+ By 31 December 2024: 100% of the additional specific provision must be made. 4.7.3 Derecognition
Write-off bad debts Available-for-sale securities are derecognized when the rights to receive cash flows from the
Provisions are recognized as an expense on the consolidated income statement and are used to securities have expired or the Bank and its subsidiaries have transferred substantially all risks and
settle bad debts. According to Circular 11, the Bank establishes a risk handling committee to deal rewards of ownership of these securities.
with bad debts if they are classified in group 5 or if the borrower is an organization that is dissolved,
4.8 Held-to-maturity investment securities
bankrupt, or an individual who is insolvent, dead or missing.
4.7 Available-for-sale securities Special bonds issued by VAMC

4.7.1 Classification and recognition Special bonds issued by VAMC are valuable papers with specific terms issued by VAMC to purchase
bad debts from the Bank and its subsidiaries. Special bonds are recognized at par value at the
Available-for-sale securities include debt and equity securities that are acquired by the Bank and transaction date and continuously recorded at par value in subsequent periods. Par value of special
its subsidiaries for the investment and available-for-sale purposes, not regularly traded but can be bonds relating to the bad debts sold, is the difference between the outstanding loan balance and
sold when there is a benefit. For equity securities, the Bank and its subsidiaries are also neither the unused balance of specific provision of loan.
founding shareholder nor the strategic partner and do not have the ability to make certain influence
in establishing and making the financial and operating policies of the investees through a written During the holding period, the Bank and its subsidiaries annually calculate and make allowance in
agreement on assignment of its personnel to the Board of Directors/Management. accordance with Circular No. 14/2015/TT-NHNN dated 28 August 2015 amending and supplementing
some articles of Circular No. 19/2013/TT-NHNN which stimulates the purchase, sale and write-off
Available-for-sale equity securities are initially recognized at cost at the purchase date and bad debts of VAMC.
continuously presented at cost in subsequent periods.

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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4.8 Held-to-maturity investment securities (continued) 4.9 Repurchase and reverse repurchase agreements

Special bonds issued by VAMC (continued) Securities sold under agreements to repurchase at a specific date in the future are not derecognized
from the consolidated financial statements. The corresponding cash received is recognized in the
As required by Circular No. 14/2015/TT-NHNN, each year within five consecutive working days prior consolidated statement of financial position as a liability item. The difference between the sale price
to the maturity date of special bonds, the Bank and its subsidiaries are obliged to fully make specific and repurchase price is recognized to the consolidated income statement using contract interest rate.
provision for each special bond using the below formula:
Conversely, securities purchased under agreements to resell at a specific date in the future are
Y recognized in the consolidated financial statements. The corresponding cash paid is recognized
X(m)= x m – (Zm + Xm-1) in the consolidated statement of financial position as an asset item. The difference between the
n
repurchase price and sale price is recognized to the consolidated income statement using contract
In which: interest rate.

» X(m) is minimum provision for special bonds in the mth year; Provision for securities purchased with commitment to resell belonging to the Restructuring
Plan is made in compliance with the official approval, guidance of the SBV for the Post-merger
» Xm-1 is accumulated specific provision for special bonds in the m-1th year; Restructuring Plan and the Bank’s proposals in the Restructuring Plan (Note 3.4).
» Y is face value of special bonds;
4.10 Other long-term investments
» n is term of special bonds (years);
» m is number of years from the bond issuance date to the provision date; Other long-term investments represent investments in other entities in which the Bank and its
subsidiaries hold less than or equal to 11% of voting rights. These investments are initially recorded
» Zm is accumulated bad debt recoveries at the provision date (mth year). Credit institutions should at cost at the investment date.
co-operate with VAMC to determine the recovery of the bad debts.
If (Zm + Xm-1) ≥ (Y/n x m), the specific provision (X(m)) will be zero (0). For registered trading securities on unlisted public company market (“UPCoM”), provision for
diminution in value is made when their actual market price which determined by weighted average
Specific provision for each special bond is recognized in the consolidated income statement in prices within the last 30 transaction days before the statement of financial position date announced
“Provision expense for credit losses”. General provision is not required for the special bonds. by the Stock Exchange, is lower than the book value of the securities. In case of no transactions
available within 30 days for such the securities prior to the statement of financial position date,
Provision for special bonds issued by VAMC belonging to the Restructuring Plan is made in the Bank and its subsidiaries determine the provision rate for each investment similar to other
compliance with the official approval, guidance of the SBV for the Post-merger Restructuring Plan investments below.
and the Bank’s proposal in the Restructuring Plan (Note 3.4).
Provisions for diminution in the value of each investment is made using below formula:
On settlement date of special bonds, interest receipt from recovering of debts is recognized into
“Interest and similar income”. Level of provision for Actual rate of charter Parties’ actual investment Actual equity capital of
investment capital (%) of the Bank capital at the business business organization at
Other held-to-maturity investment securities = and its subsidiaries at a x organization receiving - the time of making the
business organization at capital contribution at provision
Other held-to-maturity investments include debt securities acquired by the Bank and its subsidiaries the time of making the the time of making the
for earning interest and which the Bank and its subsidiaries have the intention and ability to hold provision provision
to maturity. Held-to-maturity investments have fixed or determinable payments and maturity date.
In case these securities are sold before maturity, they will be reclassified to trading securities or Provision is reversed when the recoverable amount of the investment increases after the provision
available-for-sale securities. made. Provision is reversed up to the extent that the carrying value of the investment does not
exceed the carrying value of this investment assuming that no provision is recognized.
Held-to-maturity securities are recognized and measured similarly as debts securities available-
for-sale as described in Note 4.7.

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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4.11 Fixed assets 4.13 Depreciation and amortization

Fixed assets are stated at cost less accumulated depreciation or accumulated amortization. Depreciation and amortization of tangible and intangible fixed assets are calculated on a
straight-line basis over the estimated useful life of the assets as follows:
The cost of a fixed asset comprises its purchase price plus any directly attributable costs of bringing
the fixed asset to working condition for its intended use. Buildings and structures 5 - 50 years
Expenditures for additions, improvements and renewals are added to the carrying amount of the Machines and equipment 3 - 8 years
assets while expenditures for maintenance and repairs are charged to the consolidated income Transportation vehicles 7 - 10 years
statement as incurred. Other tangible assets 6 - 25 years
When fixed assets are sold or retired, any gain or loss resulting from their disposal (the difference Computer software 4 - 5 years
between the net disposal proceeds and the carrying amount) is included in the consolidated income
statement. Infinite land use rights of the Bank and its subsidiaries granted by the government are not amortized.
Definite term land use rights are amortized over the term of use.
4.12 Leased assets
4.14 Receivables
The determination of whether an arrangement is, or contains a lease is based on the substance
of the arrangement at inception date and requires an assessment of whether the fulfilment of the 4.14.1 Receivables classified as credit risk bearing assets
arrangement is dependent on the use of a specific asset and the arrangement conveys a right to use
the asset. Receivables classified as credit risk bearing assets are recognized at cost.

A lease is classified as a finance lease whenever the terms of the lease transfer substantially all Receivables are carried out in accordance with accounting policies by the Bank as described in Note 4.6.
the risks and rewards of ownership of the asset to the lessee. All other leases are classified as
operating leases. 4.14.2 Other receivables

Rentals under operating leases are charged to the other operating expense on a straight-line basis Receivables other than receivables classified as credit risk bearing assets are initially recognized at cost.
over the term of the lease.
Provision for receivables is set up based on the aging schedule of overdue receivables or expected
4.12.1 The lessees losses which may occur in case where the receivables have not been due for payment, but an
economic organization is bankrupted or liquidated; or individual debtor is missing, run away, being
Rentals under operating leases are charged to the consolidated income statement on a straight-line prosecuted, under a trial or serving sentences or dead. Provision expense occurred will be recognized
basis over the term of the lease. into “Operating expenses” during the year.

4.12.2 The lessors For overdue receivables, the Bank and its subsidiaries make provision in compliance with Circular No.
48/2019/TT-BTC and Circular No. 24/2022/TT-BTC as follows:
The Bank and its subsidiaries recognize the value of financial lease assets as receivables in the
consolidated statement of financial position using the net investment value in the finance lease Overdue Provision rate
contract. Receivables from finance leases are recognized as principal receivables and financial
From six (6) months up to less than one (1) year 30%
income from the lessor’s investments and services. The Bank and its subsidiaries allocate financial
income over the lease term based on the fixed rate of interest and the net finance lease investment. From one (1) year up to less than two (2) years 50%
From two (2) years up to less than three (3) years 70%
The Bank and its subsidiaries recognize operating lease assets on the consolidated statement of
financial position. Revenue from operating leases is recognized on a straight-line basis over the From three (3) years and above 100%
lease term, regardless of the payment method. Operating lease expenses, including depreciation of
lease property, are recognized as an expense when incurred. 4.15 Prepaid expenses

Prepaid expenses are reported as short-term or long-term prepaid expenses on the consolidated
statement of financial position and amortized over the period for which the amount is paid or the
period in which economic benefit is generated in relation to these expenses.

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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4.16 Due to and borrowings from other credit institutions, due to customers, valuable papers issued and 4.20 Derivatives
grants, entrusted funds and loans exposed to risks
Currency forward and swap contracts
Due to other credit institutions, due to customers, valuable papers issued and grants, entrusted
funds and loans exposed to risks are disclosed at the principal amounts outstanding at the date The Bank and its subsidiaries involve in currency forward contracts and currency swap contracts to
of the consolidated financial statements. At the time of initial recording, cost of issuing valuable facilitate customers to transfer, modify or minimize foreign exchange risk or other market risks and
paper is recognized as a decrease in original balance of valuable paper. Bank and its subsidiaries for the trading purpose of the Bank and its subsidiaries.
shall allocate the expense into "Interest and similar expenses" over the term of valuable papers on a
straight-line basis. Forward contracts are commitments to either purchase or sell a designated currency at a specific
future date for a specific exchange rate and cash settlement. Forward contracts are recorded at
4.17 Payables and accruals nominal values at transaction dates and are subsequently revaluated at the end of the accounting
period. The difference on revaluation is recognized under “Foreign exchange differences” in “Owners’
Payables and accruals are recognized for amounts to be paid in the future for goods and services Equity” section and transferred to the consolidated income statement at the end of the financial
received, whether or not billed to the Bank and its subsidiaries. year. The amount of discount or premium due to the difference between spot rate and the forward
rate at the effective date of the contract will be recognized to the consolidated statement of financial
4.18 Fiduciary assets position as an asset item if it is positive or a liabilities item if it is negative. The difference will be
allocated to the consolidated income statement on a straight-line basis over the term of the forward
Entrusted operations that the Bank bears no risks contract.

The Bank and its subsidiaries provide services of holding assets in trust or in a fiduciary capacity. The swap contracts are commitments to settle in cash on a pre-determined future date based on
Assets held in trust or in a fiduciary capacity are not reported in the consolidated financial statements the difference between pre-determined exchange rates, calculated on the notional principal. The
since they are not assets of the Bank and its subsidiaries. amount of discount or premium due to the difference between spot rate and the forward rate at the
effective date of the contract will be recognized to the consolidated statement of financial position
Entrusted operations that the Bank bears all risks as an asset item if it is positive or a liabilities item if it is negative. The difference will be allocated
to the consolidated income statement on a straight-line basis over the term of the swap contract.
The Bank and its subsidiaries receive entrusted funds from the trustor in order to grant loans to
borrowers. The Bank and its subsidiaries record loan balance granted from entrusted funds in the Currency option contracts
loans to customers’ account. The accounting policy for loans granted to customers is in accordance
with regulations of the SBV and is described in Note 4.5 and 4.6. Commitments in currency options are not recognized in the consolidated statement of financial
position. Fees for options paid or received are recorded as receivables or payables and are amortized
4.19 Off-balance-sheet commitments on a straight-line to income or expense during the period of the contract.

According to Circular 11, the Bank and its subsidiaries classify guarantees, acceptances for payment The contractual value of currency option contracts is revaluated monthly at the spot rate at month
and irrevocable loan commitments with specific effective date (generally called “off-balance-sheet end. Unrealized gains or losses at each month end are recorded in “Foreign exchange difference” in
commitments”) into different groups as regulated in Article 10, Circular 11 to control and monitor monthly consolidated statement of financial position and transferred to the consolidated income
credit quality. Accordingly, off-balance-sheet commitments are classified into groups such as statement at the end of the financial year.
Current, Special mention, Sub-standard, Doubtful and Loss based on the overdue status and other
4.21 Science and Technology Development Fund
qualitative factors.
According to relevant regulations and Official Letter No. 10186/NHNN-TCKKT dated 24 December
2009 of the SBV, the Science and Technology Development Fund is recognized immediately in
management expenses when the fund is set up and credited to a separate account in other payables.
Subsequently, the Fund will be used for fixed asset or operating expenses, which are specified in the
relevant regulations.

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 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
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as at 31 December 2023 and for the year then ended
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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4.22 Equity 4.22 Equity (continued)

Charter capital
Other reserves
Contributed capital from issuance of shares is recorded into to charter capital account at par value.
Other equity reserves will be allocated from profit after tax. The allocation from profit after tax and
Share premium utilization of reserves must be approved by the General Meeting of Shareholders. These reserves
are not regulated by statutory and allowed to be fully allocated.
The Bank and its subsidiaries records the difference between the par value and issue price of shares
if the issue price is higher than par value, and the difference between the price of repurchasing of 4.23 Recognition of income and expenses
treasury stocks and the re-issue price of treasury stocks into the share premium account.
Interest income and interest expenses for the year ended 31 December 2022
Treasury shares

Own equity instruments which are reacquired (treasury shares) are recognized at cost and deducted Interest revenue and interest expenses are recognized in the consolidated income statement on an
from equity. No gain or loss is recognized in profit or loss upon purchase, sale, issue or cancellation accrual basis at the end of the financial year 2022. Accrued interest arising from loans classified
of the Bank’s own equity instruments. from group 2 to group 5 according to Circular 11 and loans with repayment term restructuring
according to the regulations will not be recognized in the consolidated income statement, except for
Statutory reserve some accrued interest receivables recognized in accordance with the official approval, guidance of
the SBV for the Post-merger Restructuring Plan and the Bank’s proposals in the Restructuring Plan
The Bank and Sacombank Leasing Co., Ltd (Note 3.4). Suspended interest income is reversed and monitored off-balance-sheet and recognized
In accordance with the Law on Credit Institutions No. 47/2010/QH12 and Decree No. 93/2017/ND-CP in the consolidated income statement upon actual receipt.
issued by the Government of Vietnam on the financial regimes applicable to credit institutions,
Interest income and interest expenses for the year ended 31 December 2023
foreign bank branches, the Bank and Sacombank Leasing Company Limited are required to make
the following allocations to statutory reserves before distribution of profits:
Interest revenue and interest expenses are recognized in the consolidated income statement on
an accrual basis. Accrued interest arising from loans classified from group 2 to group 5 according
Basis for calculation Maximum balance to Circular 11 and loans with repayment term restructuring according to the regulations will not
Capital supplementary reserve 5% of profit after tax 100% of charter capital be recognized in the consolidated income statement. Suspended interest income is reversed
and monitored off-balance-sheet and recognized in the consolidated income statement upon
Financial reserve 10% of profit after tax Not regulated
actual receipt.
Sacombank (Lao) Sole Co., Ltd
Fees and commissions income
According to the Law on Commercial Bank dated 16 January 2007, Sacombank (Lao) Sole Co., Ltd.
is required to use profits after tax to make the following allocations to following reserves before Fees and commissions are recognized when services are provided.
distribution of profits:
Income from investment
» Statutory reserves.
Income from securities investment is recognized on the difference between the selling price and
» Business development reserve and other reserves. cost of the securities sold.
In accordance with the regulations on capital Safety No. 1/BOL dated 26 August 2001 of the Governor
Cash dividends from equity investment are recognized as income when the Bank and its subsidiaries’
of the Bank of Lao P.D.R and the other relevant guidelines, commercial banks are required to allocate
right to receive the payment is established. For stock dividends and bonus shares, the number of
5% profits after tax to statutory reserves after deducting accumulated losses. This reserve is made
shares is updated and no dividend income is recognized in the consolidated income statement.
until its balance reach 10% of capital tier 1. Based on the requirement, the Board of Management
will determine the specific ratio for each year. Business development and other reserves are made
based on the decision of the Board of Management.

Sacombank Asset Management Co., Ltd

In accordance with Circular No. 27/2002/TT-BTC dated 22 March 2002 issued by Ministry of Finance,
reserves of subsidiary were made in accordance with the Bank’s regulation as described above.

116 2023 ANNUAL REPORT www.sacombank.com.vn 117

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4.23 Recognition of income and expenses (continued) 4.24 Corporate income tax (“CIT”) (continued)

Income and expense from sale of debts 4.24.1 Current income tax (continued)

Income and expenses from the sale of debts are recognized in accordance with Circular No. 09/2015/TT- The Bank and its subsidiaries’ tax returns are subject to examination by the taxation authorities.
NHNN issued by the SBV promulgating regulations on sale and purchase of debts by credit institutions Since the application of tax laws and regulations to many types of transactions are susceptible to
and foreign bank branches. Accordingly, the difference between the prices of debts purchased or sold varying interpretations, amounts reported in the consolidated financial statements could be changed
and their book value is recorded as follows: at a later date upon final determination by the taxation authorities.

» For debts recorded in the statement of financial position: 4.24.2 Deferred tax
• If the sale price is higher than the book value of the debt, the difference shall be recorded Deferred tax is provided for temporary differences at the consolidated statement of financial
in the income for the year of the Bank and its subsidiaries; position date between the tax base of assets and liabilities and their carrying amount recorded in
• If the purchase or sale price is lower than the book value of the debt, the difference shall consolidated financial statements purposes.
be used to offset against the indemnity paid by an individual or guarantor (in case such
Deferred tax liabilities are recognized for all taxable temporary differences, except:
individual or guarantor is determined to be responsible for the damage and obliged to make
indemnity under prevailing regulations), or the compensation paid by the insurer, or use » Where the deferred tax liability arises from the initial recognition of an asset or liability in a
of outstanding provision recognized as expense previously. The remaining balance (if any) transaction which at the time of the related transaction affects neither the accounting profit nor
shall be recognized as an operating expense of the Bank and its subsidiaries for the year. taxable profit or loss;
» For debts written off and monitored off-balance-sheet, the proceeds from sale of debts shall be » In respect of taxable temporarily differences associated with investments in subsidiaries
recognized as other income of the Bank and its subsidiaries. and associates, and interests in joint ventures where timing of the reversal of the temporary
Book value of debts purchased and sold is the book value of the principal, interest and related difference can be controlled and it is probable that the temporary difference will not reverse in
financial obligations (if any) of debts recorded in the consolidated statement of financial position or the foreseeable future.
the off-balance-sheet at the date of debt purchase or sale; or the book value at the date of writing-off Deferred tax assets are recognized for all deductible temporary differences, carried forward unused
of debts; or the book value of debts written off previously at the date of debt purchase and sale. tax credit and unused tax losses, to the extent that it is probable that taxable profit will be available
against deductible temporary differences, carried forward unused tax credit and unused tax losses
Debt purchase and sale price are the sum of money to be paid by a debt purchaser to a debt seller
can be recognized, except:
under a debt purchase and sale contract.
» Where the deferred tax asset in respect of deductible temporary difference which arises from
Other income
the initial recognition of an asset or liability which at the time of the related transaction, affects
Receivables which have recorded as income but then they are assessed to be uncollectable or neither the accounting profit nor taxable profit or loss;
are not collected at maturity date will be recognized as a reduction of income when are incurred » In respect of deductible temporarily differences associated with investments in subsidiaries,
in the same period or recognized as expense when incurred in a different period and monitored associates, and interests in joint ventures, deferred tax assets are recognized only to the extent
off-balance-sheet, then recognized in the consolidated income statement upon actual receipt. that it is probable that the temporary differences will reverse in the foreseeable future and
taxable profit will be available against which the temporary differences can be utilized.
4.24 Corporate income tax (“CIT”)
The carrying amount of deferred income tax assets is reviewed at each consolidated statement of
4.24.1 Current income tax financial position date and reduced to the extent that it is no longer probable that sufficient taxable
profit will be available to allow all or part of the deferred income tax asset to be utilized. Previously
Current income tax assets and liabilities for the current and prior periods are measured at the
unrecognized deferred income tax assets are re-assessed at each consolidated statement of
amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax
financial position date and are recognized to the extent that it has become probable that future
laws used to compute the amount are those that are effective as at the consolidated statement of
taxable profit will allow the deferred tax assets to be recovered.
financial position date.
Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply
Current income tax is charged or credited to the consolidated income statement, except when it
in the period when the asset is realized or the liability is settled based on tax rates and tax laws that
relates to items recognized directly to equity, in which case the current income tax is also dealt with
have been enacted at the consolidated statement of financial position date.
in equity.
Deferred tax is charged or credited to the consolidated income statement, except when it relates
Current income tax assets and liabilities are offset when there is a legally enforceable right for the
to items recognized directly to equity, in which case the deferred tax is also dealt with in the
Bank and its subsidiaries to set off current tax assets against current tax liabilities and when the
equity account.
Bank and its subsidiaries intend to settle its current tax assets and liabilities on a net basis.

118 2023 ANNUAL REPORT www.sacombank.com.vn 119

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4.24 Corporate income tax (“CIT”) (continued) 4.27 Employee benefits

4.24.2 Deferred tax (continued)
4.27.1 Post-employment benefits
The Bank and its subsidiaries are only allowed to offset deferred income tax assets and deferred
income tax payable when the Bank and its subsidiaries has a legally enforceable right to offset current Post-employment benefits are paid to retired employees of the Bank and its subsidiaries by the
income tax assets with current income tax payable and deferred income tax assets and deferred Social Insurance Agency which belongs to the Ministry of Labour and Social Affairs. The Bank and
income tax liabilities related to corporate income tax managed by the same tax authority on: its subsidiaries are required to contribute to these post-employment benefits by paying social
insurance premium to the Social Insurance Agency at the rate of 17.5% of an employee’s basic
» either the same taxable entity; or salary on a monthly basis. Other than that, the Bank and its subsidiaries have no further obligation
» The Bank and its subsidiaries intend either settle current tax liabilities and assets on a net basis, relating to post-employment benefits.
or to realise the assets and settle the liabilities simultaneously, in each future period in which
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. Overseas subsidiaries are obliged to pay insurances and benefits in accordance with regulations in
the host country.
4.25 Foreign currency transactions
4.27.2 Voluntary resignation benefits
Foreign currency transactions

In accordance with the accounting system of the Bank and its subsidiaries, all transactions are The Bank and its subsidiaries have the obligation, under Section 46 of the Vietnam Labor Code
recorded in original currencies. Monetary assets and liabilities denominated in foreign currencies 45/2019/QH14 effective from 1 January 2021, to pay allowance arising from voluntary resignation
are translated into VND using exchange rates ruling at the consolidated statement of financial of employees, equal to one-half month’s salary for each year of employment up to 31 December
position (Note 49). Income and expenses arising in foreign currencies during the year are converted 2008 plus salary allowances (if any). From 1 January 2009, the average monthly salary used in this
into VND at rates ruling at the transaction dates. Foreign exchange differences arising from the calculation is the average monthly salary of the latest six-month period up to the resignation date.
translation of monetary assets and liabilities are recognized and followed in the “Foreign exchange
differences” under “Owners’ Equity” section and will be transferred to the consolidated income Overseas subsidiaries are obliged to pay insurances and benefits in accordance with regulations in
statement at the end of the financial year. the host country.

Overseas activities 4.27.3 Unemployment insurance

The currency used in separate financial statements of foreign subsidiaries (including Sacombank The Bank and its subsidiaries are required to contribute to the unemployment insurance at the rate
(Cambodia) Plc. and Sacombank (Lao) Sole Co., Ltd) are US dollar and Lao KIP. The separate financial of 1% of salary and wage fund of unemployment insurance joiners and deduct 1% of monthly salary
statements of these overseas subsidiaries are converted based on the principles as follows: and wage of each employee to contribute to the Unemployment Insurance Fund.
(a) Assets and liabilities (both monetary and non-monetary items) of foreign subsidiaries are
translated using exchange rates ruling at the consolidated statement of financial position date; Overseas subsidiaries are obliged to pay insurances and benefits in accordance with regulations in
the host country.
b) Revenues, other incomes and expenses of foreign subsidiaries are translated at the average
exchange rate.
5. CASH, GOLD AND GEMSTONES
Foreign exchange differences arising from the translation of financial statements recognized and
followed in the “Foreign exchange differences” under “Owners’ Equity” section of the Bank and its
subsidiaries. Ending balance Beginning balance
VND million VND million
4.26 Offsetting Cash in VND 5,594,415 5,371,893
Financial assets and financial liabilities are offset and reported at the net amount in the consolidated Cash in foreign currencies 1,834,343 2,318,889
statement of financial position if, and only if, the Bank and its subsidiaries have an enforceable legal
Gold 53,787 83,110
right to offset financial assets against financial liabilities and the Bank and its subsidiaries have
intention to settle on a net basis, or the realization of the assets and settlement of liabilities is made Jewelry 51,614 65,503
simultaneously.
Gemstones and others 11,111 10,503
7,545,270 7,849,898

120 2023 ANNUAL REPORT www.sacombank.com.vn 121

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

6. BALANCES WITH THE STATE BANK 6. BALANCES WITH THE STATE BANK (CONTINUED)

(b) Deposits at the Bank of Lao P.D.R include deposits in Lao Kip (“LAK”) and currencies other than
Ending balance Beginning balance
VND million VND million LAK relating to activities of the Bank’s subsidiary in the Lao People’s Democratic Republic and
compulsory deposits following the regulations of the Bank of Lao P.D.R.
Balances with the State Bank of Vietnam (“SBV”) (a)
» In VND 10,651,247 10,515,502 The compulsory deposit rates at year-end are as follows:

» In foreign currencies 760,637 406,961

31 December 2023 31 December 2022
Balance with the Bank of Lao P.D.R (b) 376,356 529,088 % %
Balance with the National Bank of Cambodia (c) 1,059,805 834,566 Deposit with term less than 12 months in LAK 8.00 5.00
12,848,045 12,286,117 Deposits with term over 12 months in LAK 0.00 0.00
Deposit with term less than 12 months in currencies other than LAK 10.00 5.00
(a) Balances with the SBV include settlement and compulsory deposits. The average balance of
compulsory deposits of the Bank at the SBV is not less than the compulsory deposits in the Deposits with term over 12 months in currencies other than LAK 0.00 0.00
month. The compulsory deposits are calculated by multiplying previous month average deposit
balances of each deposit category and respectively compulsory deposit rates. (c) Deposits at the National Bank of Cambodia include deposits in Cambodia Riel (“KHR”) and
currencies other than KHR relating to activities of the Bank’s subsidiary in the People’s
The compulsory deposit rates at year-end are as follows: Republic of Cambodia and compulsory deposits following the regulations of the National Bank of
Cambodia. The compulsory deposits are calculated by multiplying average deposit balances and
compulsory deposit rates.
31 December 2023 31 December 2022
% %
The compulsory deposit rates at year-end are as follows:
For customers
Demand deposits and deposit with term less than 12 months in VND 3.00 3.00 31 December 2023 31 December 2022
% %
Deposits with term over 12 months in VND 1.00 1.00
Demand deposits and deposit with term less than 12 months in Deposits in KHR 7.00 7.00
8.00 8.00
foreign currencies Deposits in currencies other than KHR 9.00 7.00
Deposits with term over 12 months in foreign currencies 6.00 6.00
Reserves of 7.00% in KHR is interest free, reserve of 9.00% in currencies other than KHR earns
For overseas credit institutions interest at the rate prescribed by the National Bank of Cambodia on the determination of interest
Deposits in foreign currencies 1.00 1.00 rates on term deposits.

The actual annual interest rates on deposits with the SBV at year-end are as follows:

31 December 2023 31 December 2022

%/p.a. %/p.a.

Within the limit of compulsory deposits in VND 0.50 0.50

Within the limit of compulsory deposits in USD 0.00 0.00
Exceeding the limit of compulsory deposits in VND 0.00 0.00
Exceeding the limit of compulsory deposits in USD 0.00 0.00

122 2023 ANNUAL REPORT www.sacombank.com.vn 123

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

7. DUE FROM AND LOANS TO OTHER CREDIT INSTITUTIONS 8. DERIVATIVES AND OTHER FINANCIAL ASSETS/LIABILITIES

7.1 Due from other credit institutions

Total contract Carrying value
nominal value (at exchange rate as at reporting date)
Ending balance Beginning balance (at contractual
VND million VND million exchange rate) Assets Liabilities
VND million VND million VND million
Demand deposits 20,841,806 8,083,740
Currency derivative financial
» In VND 13,419,994 5,420,153 instruments as at 31 December 2023
» In foreign currencies 7,421,812 2,663,587 Forward contracts 1,499,696 - 8,807
Term deposits 29,272,595 16,884,540 Swap contracts 59,381,589 - 82,652
» In VND 28,120,000 16,374,860 60,881,285 - 91,459
» In foreign currencies 1,152,595 509,680 Net amount 91,459
50,114,401 24,968,280
Total contract Carrying value
The annual interest rates of term deposits at other credit institutions at year-end are as follows: nominal value (at exchange rate as at reporting date)
(at contractual
exchange rate) Assets Liabilities
31 December 2023 31 December 2022 VND million VND million VND million
% p.a. % p.a.
Currency derivative financial
In VND 0.90 - 3.80 2.70 - 8.35 instruments as at 31 December 2022
In foreign currencies 3.50 - 7.50 2.50 - 4.50 Forward contracts 5,240,908 - 6,428

7.2 Loans to other credit institutions Swap contracts 22,732,869 116,286 -

27,973,777 116,286 6,428
Ending balance Beginning balance Net amount 109,858
VND million VND million
In foreign currencies 218,570 325,305

7.3 Analysis term deposits due from and loans to other credit institutions by quality

Ending balance Beginning balance

VND million VND million
Current 29,491,165 17,209,845

124 2023 ANNUAL REPORT www.sacombank.com.vn 125

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

9. LOANS TO CUSTOMERS 9. LOANS TO CUSTOMERS (CONTINUED)

9.3 Analysis of loans by currency

Ending balance Beginning balance
VND million VND million
Loans to domestic economic entities and individuals 471,378,083 428,497,075 Ending balance Beginning balance

Loans to foreign economic entities and individuals 6,237,112 6,138,721 VND million % VND million %

Finance leases 4,638,330 3,980,796 In VND 468,098,174 96.97 425,898,290 97.10

Frozen and pending debts awaiting resolution 412,000 - In foreign currencies 14,632,948 3.03 12,729,487 2.90

Discounted transferable instruments and valuable papers 62,537 11,051 482,731,122 100.00 438,627,777 100.00

Other loans 3,060 134 9.4 Analysis of loans by type of customer and ownership
482,731,122 438,627,777
Ending balance Beginning balance
Included in the balances of loss loans as at 31 December 2023 were loans amounting to VND46,500
VND million % VND million %
million (31 December 2022: VND46,500 million), of which the provision were made upon the Bank’s
financial capability in accordance with the Post-merger Restructuring Plan and the Bank’s proposal Loans to corporations 216,363,275 44.82 185,552,161 42.31
in the Restructuring Plan and during the period implementing the Restructuring Plan approved by
Other private limited companies 103,839,711 21.51 90,809,487 20.70
the SBV as described in Note 3.4.
Other joint stock companies 98,730,327 20.45 80,700,354 18.40
9.1 Analysis of loans by quality
State-owned companies 4,455,608 0.92 4,377,939 1.00
Private companies 3,947,519 0.82 4,161,205 0.95
Ending balance Beginning balance
VND million VND million Foreign invested companies 2,101,651 0.44 2,428,453 0.55
Current 468,241,584 428,847,741 One-member limited liability companies of which
393,256 0.08 420,129 0.10
100% charter capital is held by the State
Special mention 3,505,472 5,481,202
Cooperatives and inter-cooperatives 192,048 0.04 171,219 0.04
Sub-standard 1,490,299 560,727
Limited liability companies with two or more
Doubtful 4,593,502 731,065
members of which more than 50% of the charter 189,164 0.04 173,165 0.04
Loss 4,900,265 3,007,042 capital is held or controlled by the State

482,731,122 438,627,777 The joint stock company of which over 50% of

share capital or the total voting share capital is
73,464 0.02 25,059 0.01
held or controlled by the State under the company's
9.2 Analysis of loans by original term
charter
Partnerships 2,151 0.00 1,978 0.00
Ending balance Beginning balance
VND million VND million Others 2,438,376 0.50 2,283,173 0.52
Short-term 304,684,401 276,127,585 Loans to individuals 266,367,847 55.18 253,075,616 57.69
Medium-term 53,310,217 48,308,008 482,731,122 100.00 438,627,777 100.00
Long-term 124,736,504 114,192,184
482,731,122 438,627,777

126 2023 ANNUAL REPORT www.sacombank.com.vn 127

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

9. LOANS TO CUSTOMERS (CONTINUED) 10. PURCHASED DEBTS

9.5 Analysis of loans by economic sectors

Ending balance Beginning balance
VND million VND million
Ending balance Beginning balance Purchased debts by foreign currencies - 124,710
VND million % VND million % Provision for purchased debts - (22,068)
Administrative activities and supporting services 211,961,149 43.91 212,890,201 48.54
- 102,642
Trading, repair of motor vehicles, motorcycles and
51,532,760 10.68 43,657,534 9.95
other vehicles The principal value of the purchased debts is as follows:
Construction 42,913,190 8.89 28,447,719 6.49
Agriculture, forestry and fisheries 42,117,519 8.72 39,124,557 8.92 Ending balance Beginning balance
VND million VND million
Manufacturing and processing 25,416,410 5.27 19,342,166 4.41
Principal value of the purchased debts - 838,509
Transportation and warehousing 13,818,156 2.86 6,714,727 1.53
Electricity, gas, steam and air conditioning supply 7,704,296 1.60 5,713,791 1.30 Movements of provision for purchase debts in the current year are as follows:
Finance services, banking and insurance activities 6,894,384 1.43 6,338,234 1.45
Specific provision General provision Total provision
Real estate trading 6,301,208 1.31 3,629,882 0.83 VND million VND million VND million
Education and training 5,543,395 1.15 5,784,057 1.32 As at 1 January 2023 21,133 935 22,068
Hotels and accommodation services 5,333,073 1.10 5,008,055 1.14 Reversal during the year (21,133) (935) (22,068)
Health and social support activities 3,180,710 0.66 3,205,641 0.73 As at 31 December 2023 - - -
Mining exploration 1,455,613 0.30 1,309,737 0.30
Movements of provision for purchase debts in the previous year are as follows:
Activities of Communist Party, socio-political
organization, public administration and defense; 1,123,089 0.23 1,121,513 0.26
compulsory security Specific provision General provision Total provision
VND million VND million VND million
Science and technology activities 311,670 0.06 274,595 0.06
As at 1 January 2022 95,053 2,144 97,197
Activities of households as employers,
undifferentiated goods and services producing 153,920 0.03 94,440 0.02 Reversal during the year (73,920) (1,209) (75,129)
activities of households for own use
As at 31 December 2022 21,133 935 22,068
Information and communication 140,609 0.03 150,047 0.03
Arts, entertainment and recreation 140,563 0.03 137,337 0.03
Water supply; sewerage, waste management and
6,130 0.00 11,315 0.00
remediation activities
Others 56,683,278 11.74 55,672,229 12.69
482,731,122 100.00 438,627,777 100.00

128 2023 ANNUAL REPORT www.sacombank.com.vn 129

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

11. PROVISION FOR CREDIT LOSSES 12. INVESTMENT SECURITIES

Provision for credit losses at the year-end comprised of: 12.1 Available-for-sale securities

Ending balance Beginning balance Ending balance Beginning balance

Notes VND million VND million VND million VND million
Provision for purchased debts 10 - 22,068 Debt securities 22,556,350 27,890,168
Provision for loans to customers 11.1 7,562,014 5,630,184
Government bonds (a) 17,645,512 22,309,012
Provision for special bonds issued by VAMC 12.2 14,602,882 14,639,238
Bonds and certificates of deposit issued by other domestic credit
Provision for credit risk bearing assets 1,019,258 1,019,258 4,900,000 5,450,746
institutions (b)
23,184,154 21,310,748
Foreign bonds 10,838 130,410
Provision expenses for credit losses during the year are as follows: Equity securities 6,185 6,171
Equity securities issued by domestic economic entities 5,580 5,580
Ending balance Beginning balance
Notes VND million VND million Foreign equity securities 605 591
Provision reversal for purchased debts 10 (22,068) (75,129) 22,562,535 27,896,339
Provision expenses for loans to customers 11.1 2,282,864 470,973
Provision for available-for-sale securities (12,786) (8,246)
Provision expenses for special bonds issued by VAMC 12.3 1,427,309 8,623,938
Diminution provision (12,786) (8,246)
Provision reversal for credit-risk bearing assets - (138,281)
3,688,105 8,881,501 22,549,749 27,888,093

11.1 Provision for loans to customers (a) Government bonds have term from 5 years to 15 years and earn interest at rates ranging from
1.80% p.a. to 8.80% p.a., interest is paid annually. In which, a number of bonds with carrying value of
The movements of provision for loans to customers during the current year are as follows: VND1,350,873 million (31 December 2022: VND7,198,586 million) have been held at Securities Deposit
Center and SBV Transaction Office as collateral for credit limit to borrow from other credit institutions
Specific provision General provision Total and the SBV.
VND million VND million VND million
As at 1 January 2023 2,362,858 3,267,326 5,630,184 (b) Bonds and certificates of deposit issued by domestic credit institutions have term from 1 year to 3
years and earn interest rates ranging from 6.30% p.a. to 13.00% p.a., interest is paid annually.
Provision charged during the year 1,965,445 317,419 2,282,864
Provision used to write off bad debts during the year (371,406) - (371,406) Listing status of available-for-sale securities are as follows:
Other increase/(decrease) 10,744 (1,330) 9,414
Foreign exchange differences 10,604 354 10,958 Ending balance Beginning balance
As at 31 December 2023 3,978,245 3,583,769 7,562,014 VND million VND million
Debt securities 22,556,350 27,890,168
The movements of provision for loans to customers during the previous year are as follows:
Listed 17,645,512 22,309,012
Specific provision General provision Total Unlisted 4,910,838 5,581,156
VND million VND million VND million
Equity securities 6,185 6,171
As at 1 January 2022 4,041,764 2,875,515 6,917,279
Unlisted 6,185 6,171
Provision charged during the year 78,707 392,266 470,973
Provision used to write off bad debts during the year (1,822,300) - (1,822,300) 22,562,535 27,896,339

Other increase 55,977 - 55,977

Foreign exchange differences 8,710 (455) 8,255
As at 31 December 2022 2,362,858 3,267,326 5,630,184

130 2023 ANNUAL REPORT www.sacombank.com.vn 131

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

12. INVESTMENT SECURITIES (CONTINUED) 12. INVESTMENT SECURITIES (CONTINUED)

12.2 Held-to-maturity securities 12.3 Provision for investment securities

The movements of provision for investment securities during the year are as follows:
Ending balance Beginning balance
VND million VND million
Debt securities Current year Previous year
VND million VND million
Government bonds (a) 45,456,081 31,037,245
Beginning balance
Bonds and certificates of deposit issued by other domestic credit Available-for-sale securities 8,246 9,080
4,800,000 3,000,000
institutions (b)
Special bonds issued by VAMC 14,639,238 6,022,425
Special bonds issued by VAMC
14,647,484 6,031,505
Par value of special bonds issued by VAMC (c) 16,432,897 21,514,587
Provision charged during the year
Provision for special bonds issued by VAMC (14,602,882) (14,639,238) Available-for-sale securities 4,540 (834)
52,086,096 40,912,594 In which:
- Listed debt securities and available-for-sale equity securities 4,540 (834)
(a) Government bonds have term from 5 years to 15 years and earn interest at rates ranging from
0.80% p.a. to 8.90% p.a., interest is paid annually. In which, a number of bonds with carrying value Special bonds issued by VAMC 1,427,309 8,623,938
of VND3,670,750 million (31 December 2022: VND10,424,522 million) have been held at Securities 1,431,849 8,623,104
Deposit Center and SBV Transaction Office as collateral for credit limit to borrow from other credit Provision used to write off
institutions and the SBV.
Special bonds issued by VAMC (1,463,665) (7,125)
(b) Certificates of deposit issued by domestic credit institutions have term from 1 year to 2 years and earn Ending balance
the interest rates ranging from 4.30% p.a. to 6.00% p.a., interest is paid annually. Available-for-sale securities 12,786 8,246

(c) These are special bonds issued by Vietnam Asset Management Company (“VAMC”) to purchase bad Special bonds issued by VAMC 14,602,882 14,639,238
debts of the Bank. These bonds have term from 5 years to 10 years and earn interest at rate of 0.00%. 14,615,668 14,647,484
Par value of these special bonds is the difference between the outstanding loan balance and the
corresponding unused specific provision at the purchasing date. 13. LONG-TERM INVESTMENTS
Included in the balances of special bonds as at 31 December 2023 were a special bond with valued
VND450,000 million that matured on 18 December 2023, which is subject to the Restructuring Plan Ending balance Beginning balance
with STB stocks serving as collateral assets. Until the issuance date of this report, the Bank has been VND million VND million
awaiting for guidance from VAMC and SBV to proceed with the settlement procedures for this bond, Investment in economic entities
meanwhile, the Bank has full provision for it.
Unlisted 97,014 97,014
Movements of VAMC bonds during the year are as follows: Provision for other long-term investments (14,372) (8,202)
82,642 88,812
Current year Previous year
VND million VND million
Movements in provision for long-term investment in the year are as follows:
Beginning balance 21,514,587 23,727,969
Settlement during the year (5,081,690) (2,213,382) Current year Previous year
VND million VND million
Ending balance 16,432,897 21,514,587
Beginning balance 8,202 8,046
Provision charged during the year 6,170 156
Ending balance 14,372 8,202

132 2023 ANNUAL REPORT www.sacombank.com.vn 133

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

14. FIXED ASSETS (CONTINUED)

Included in the machines and equipment balance are the assets financed by Science and Technology Development Fund with historical
cost of VND53,012 million. The accounting policy applied for these assets differs from other similar assets. Accordingly, the depreciation
(131,647)
(1,955)
3,367,778
838,937
(1,955)
(26,719)
8,340,278
516,719

181
(138,602)
131,462
1,619
Total
VND million

7,857,573

(15,607)
4,057,506

4,489,795
4,282,772
14.1 Tangible fixed assets (continued)

Other information on tangible fixed assets as follows:

Ending balance Beginning balance

-
211,757
92,591
(5,788)
(7,175)
413,968
(6,234)
-
-

16,774

-
Other
tangible assets
VND million

398,039
12,564

(4,922)
293,638

186,282
120,330
VND million VND million
Net carrying value of tangible fixed assets that are temporarily
121,694 126,204
not in use
Fully depreciated tangible fixed assets that are still in use 1,892,820 1,217,871

14.2 Intangible fixed assets

(43,530)
-
435,755
139,796
-
(191)
855,817
-

20,643

-
(43,530)
Transportation
vehicles
VND million

810,798
68,097

(262)
531,759

375,043
324,058
Computer
Land use rights software Others Total
VND million VND million VND million VND million
Cost
Beginning balance 2,618,285 1,903,229 903 4,522,417
Increase from new purchases and

of these assets is funded by the Science and Technology Development Fund.

(78,283)
(1,955)
1,804,568
451,340
(1,955)
1,938
3,416,226
1,374

414,677

-
(80,872)
Machines and
equipment
VND million

3,031,551
49,513

1,484
2,177,154

1,226,983
1,239,072
- 5,569 263 5,832
upgrading
Transferred from construction in
progress and advances for purchases - 236,862 - 236,862
of fixed assets
Disposals - (1,934) - (1,934)
Reclassification - 40 (40) -
(4,046)
-
915,698
155,210
-
(21,291)
3,654,267
64,625

181
(7,966)
1,288
245
Building and
infrastructures
VND million

3,617,185

(11,907)
1,054,955

2,701,487
2,599,312
Foreign exchange differences (2,724) 94 - (2,630)
Ending balance 2,615,561 2,143,860 1,126 4,760,547
Accumulated amortization
Beginning balance 63,787 1,400,096 652 1,464,535
Amortization during the year 8,623 302,988 148 311,759
Disposals - (1,934) - (1,934)
Foreign exchange differences - (481) - (481)
Transfer from construction in progress
and advances for purchases of fixed

Ending balance 72,410 1,700,669 800 1,773,879

Net book value
Foreign exchange differences
Foreign exchange differences
Increase from new purchases

Depreciation during the year

Beginning balance 2,554,498 503,133 251 3,057,882

Accumulated depreciation
Increase from upgrading

Ending balance 2,543,151 443,191 326 2,986,668

Tangible fixed assets

Other information on intangible fixed assets as follows:

Beginning balance
Beginning balance

Beginning balance
FIXED ASSETS

Other decrease
Other decrease

Ending balance

Ending balance

Ending balance
Net book value
Other increase

Ending balance Beginning balance

Disposals
Disposals

VND million VND million

assets
Cost

Net carrying value of intangible fixed assets that are temporarily

393,425 394,065
not in use
Fully amortized intangible fixed assets that are still in use 1,210,605 880,969
14.1
14.

134 2023 ANNUAL REPORT www.sacombank.com.vn 135

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

15. OTHER ASSETS 15. OTHER ASSETS (CONTINUED)

15.1 Receivables 15.1 Receivables (continued)

Ending balance Beginning balance (b) Other receivables comprised of:

VND million VND million
Constructions in progress and advances for purchases of fixed Ending balance Beginning balance
951,509 654,772 VND million VND million
assets (a)
Other receivables (b) 41,075,803 32,061,561 Internal receivables 1,703,160 2,171,458
42,027,312 32,716,333 Advances for operations 1,693,592 2,164,853

(a) This account presents constructions in progress and advances for purchases of fixed assets of Others 9,568 6,605
branches and transaction offices. Movements of this account during the year are as follows: External receivables 39,372,643 29,890,103
Receivables relating to intermediary and electronic support
Current year Previous year 32,149,701 20,194,449
payment services
VND million VND million
Foreclosed assets (i) 2,136,575 2,180,932
Beginning balance 654,772 487,281
Receivables related to usance letter of credit 1,726,557 3,070,515
Increased during the year 1,148,678 927,961
Transferred to tangible fixed assets (516,719) (519,773) Receivables from reversed repurchase agreements of securities
967,758 967,758
(ii)
Transferred to intangible fixed assets (236,862) (184,437)
Transferred to deferred expenses and other operating expenses (98,294) (56,231) Receivables from Southern Jewelry Joint Stock Company (iii) 503,639 503,639

Other decrease (66) (29) Margin deposits for commodity future contracts 270,251 321,756
Ending balance 951,509 654,772 Receivables from card organizations 236,350 799,584

Breakdown of constructions in progress and advances for purchases of fixed assets comprised of: Receivables from deposits for office rental 234,095 230,442
Receivable from sale of a part of FICO building (iv) 158,204 158,204
Ending balance Beginning balance Receivables from foreign remittance services 88,399 89,196
VND million VND million
Receivables from the State Budget relating to interest subsidy
OMNICHANNEL Banking Project 241,027 87,470 28,920 27,744
program
Office building in Tay Ninh Town, Tay Ninh Province 71,062 71,062
Tax advances 1,908 350,116
IBM servers and Redhat software 60,934 -
Others (v) 870,286 995,768
Repair of fixed assets at branches 59,300 54,533
Basel II Project 40,974 40,974 41,075,803 32,061,561
Office building in Tan Phu District, Ho Chi Minh City 37,609 37,609
Treasury - Front to back Project 24,213 28,961
Sacombank Pay e-wallet Project 7,348 17,174
Construction work at branches 7,070 46,463
Other constructions in progress 401,972 270,526
951,509 654,772

The Bank and its subsidiaries have entered into agreements to purchase these assets and made
partial or full payments. As at 31 December 2023, the Bank and its subsidiaries are still in process
of implementing necessary procedures to complete the transfer of ownership to the Bank and its
subsidiaries in accordance with the current regulations.

136 2023 ANNUAL REPORT www.sacombank.com.vn 137

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

15. OTHER ASSETS (CONTINUED) 15. OTHER ASSETS (CONTINUED)

15.1 Receivables (continued) 15.2 Interest and fees receivable

(b) Other receivables comprised of (continued):

Ending balance Beginning balance
VND million VND million
External receivables in the Restructuring Plan:
Interest receivables from loans to customers 3,775,025 3,370,271
External receivable items (i), (ii) and (iii) included receivables being resolved and collected in Interest receivables from investments 1,690,831 1,500,503
accordance with official approval, guidance of the SBV for the Post-merger Restructuring Plan, the
Bank’s proposal in the Restructuring Plan and during the period of implementing the Restructuring Receivables from derivatives 189,209 170,043
Plan in Note 3.4. Interest receivables from due from and loans to other credit
17,482 27,822
institutions
(i) These foreclosed assets are in the process of completing transfer of ownership to the Bank or
are being resolved for collection. They include VND1,973,810 million as at 31 December 2023 Interest receivables from finance lease 14,446 10,335
(31 December 2022: VND1,973,810 million) of foreclosed assets, which were transferred from the 5,686,993 5,078,974
merger with Southern Commercial Joint Stock Bank.
15.3 Other assets
(ii) These receivables, which were derived from reverse repurchase agreements of securities of
Southern Commercial Joint Stock Bank upon merger are secured by shares proposed by the
Bank to sell to VAMC in accordance with the Post-merger Restructuring Plan and the Bank’s Ending balance Beginning balance
VND million VND million
proposal in the Restructuring Plan approved by the SBV. As at the report date, the procedures for
selling these receivables to VAMC have not been completed and the Bank has made full provision Foreclosed assets (i) 41,034 41,034
for these receivables.
In which:
(iii) These receivables resulted from gold trading activities between Southern Jewelry Joint Stock - Securities 41,034 41,034
Company and Southern Commercial Joint Stock Bank before the merger and are secured by
Prepaid expenses (ii) 1,085,239 1,036,142
shares. These receivables are proposed by the Bank to sell to VAMC in accordance with the
Post-merger Restructuring Plan and the Bank’s proposal in the Restructuring Plan approved Receivables from entrusted investment (iii) 51,500 51,500
by the SBV. As at the report date, the procedures for selling these receivables to VAMC have not Investment in finance leasing equipment 29,718 22,832
been completed and the Bank has made full provision for these receivables.
Other assets 93,409 75,225
Other external receivables: 1,300,900 1,226,733

(iv) This receivable is related to the sale of a part of FICO building located at No. 927 Tran Hung
(i) This balance represents collaterals of customers which were foreclosed by the Bank upon
Dao, District 5, Ho Chi Minh City by Southern Commercial Joint Stock Bank to a counterparty
writing-off of bad debts including loans and other receivables. The Bank has completed procedures
for using as head office. As at the report date, the Bank has been in process of completing legal
to receive the ownership of these assets and is in progress to resolve these foreclosed assets in
procedures to transfer the ownership to the buyer in accordance with the prevailing regulations.
accordance with regulations stipulated by the SBV.
(v) Included in other external receivables as at 31 December 2023 is the receivable relating to
(ii) Prepaid expenses comprise of assets rental, assets maintenance and repairing expenses, option
the enforcement authority in progress of handling foreclosed assets with a carrying amount
premium fee and prepaid interest expenses which are amortized for a period ranging from 1 year
of VND505,292 million to reimburse the Bank in accordance with the judgment of the court.
to 50 years.
As at the report date, the Bank is in coordination with the enforcement authority to collect the
receivable and the Bank has made full provision for these receivables.
(iii) This balance represents an entrusted investment in a company of Southern Commercial Joint
Stock Bank before the merger. This entrusted investment is proposed to sell to VAMC according
to the Post-merger Restructuring Plan approved by the SBV. As at report date the Bank has not
yet sold these receivables to VAMC and made full provision for this receivable.

138 2023 ANNUAL REPORT www.sacombank.com.vn 139

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

15. OTHER ASSETS (CONTINUED) 16. DEBTS OWED TO THE GOVERNMENT AND THE STATE BANK OF VIETNAM

15.4 Provision for other assets

Ending balance Beginning balance
VND million VND million
Details of provision for other on-balance-sheet assets as follows:
Borrowings by credit documents 19,273 41,956

Ending balance Beginning balance Borrowings through discount, rediscount of valuable papers - 9,859,252

Balance Provision Balance Provision Other 55 1

VND million VND million VND million VND million
19,328 9,901,209
Receivables from reversed repurchase
967,758 967,758 967,758 967,758
agreements of securities 117. DUE TO AND BORROWINGS FROM OTHER CREDIT INSTITUTIONS
Foreclosed assets 1,050,802 660,737 1,050,802 659,176
17.1 Due to other credit institutions
Receivables from Southern Jewelry
503,639 503,639 503,639 503,639
Trading Joint Stock Company
Ending balance Beginning balance
Other assets 778,652 774,556 303,767 303,488 VND million VND million
3,300,851 2,906,690 2,825,966 2,434,061 Demand deposits 8,665,738 4,572,634
In which: Assets are resolved according In VND 8,656,905 4,567,652
2,532,665 2,155,619 2,532,665 2,155,619
to the Restructuring Plan
In foreign currency 8,833 4,982
- Receivables from reversed repurchase
967,758 967,758 967,758 967,758 Term deposits 25,720,290 17,157,043
agreements of securities (*)
- Foreclosed assets (**) 1,009,768 632,722 1,009,768 632,722 In VND 21,100,000 16,574,700

- Receivables from Southern Jewelry In foreign currency 4,620,290 582,343

503,639 503,639 503,639 503,639
Trading Joint Stock Company (*)
34,386,028 21,729,677
- Receivables from entrusted
51,500 51,500 51,500 51,500
investment (*) Annual interest rates applicable to due to other credit institutions at year-end are as follows:

(*) These are assets that are being processed by the Bank in accordance with the official approval,
31 December 2023 31 December 2022
guidance of the SBV for the Post-merger Restructuring Plan and the Bank’s proposals in the
% p.a. % p.a.
Restructuring Plan as described in Note 3.4.
Term deposits in VND 0.90 - 3.80 0.00 - 8.40
(**) On 18 December 2020, SBV issued Official letter No. 1010/NHNN-TTGSNH to provide guidance Term deposits in foreign currency 5.10 - 5.25 3.00 - 4.50
on the Bank’s additional proposal as specified in the report of implementing results of the
Restructuring Plan. Accordingly, the Bank’s proposal relating to foreclosed assets in Inspection
Conclusion No.04/KLTT-TTGSNH.m will be reviewed and addressed by SBV in a separate
document later. While awaiting for guidance from SBV, the Bank made full provision as specified
in the Inspection Conclusion.

Changes in provision for other assets during the year are as follows:

Current year Previous year

VND million VND million
Beginning balance 2,434,061 3,076,422
Provision charged/(reversed) for other assets during the year 472,523 (642,361)
Other adjustments 106 -
Ending balance 2,906,690 2,434,061

140 2023 ANNUAL REPORT www.sacombank.com.vn 141

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

17. DUE TO AND BORROWINGS FROM OTHER CREDIT INSTITUTIONS (CONTINUED) 18. DUE TO CUSTOMERS

17.2 Borrowings from other credit institutions 18.1 Breakdown by type of deposits

Ending balance Beginning balance Ending balance Beginning balance

VND million VND million VND million VND million

Borrowings from other domestic credit institutions in VND 2,381,276 3,277,724 Demand deposits 93,525,246 85,825,175
Borrowings from domestic and overseas credit institutions Demand deposits in VND 88,008,588 79,350,872
1,182,807 3,423,047
in foreign currencies Demand deposits in foreign currencies 5,244,365 6,195,382
3,564,083 6,700,771 Demand savings in VND 38,840 37,569
Demand savings in foreign currencies 233,453 241,352
Detail of borrowings from domestic and overseas credit institutions in foreign currencies at
year-end are as follows: Term deposits 415,732,180 367,417,223
Term deposits in VND 81,684,412 62,935,601
Ending balance Beginning balance Term deposits in foreign currencies 5,338,557 5,161,207
VND million VND million Term savings in VND 325,763,004 295,763,083
Malayan Banking Berhad - Singapore Branch (*) 403,005 787,255 Term savings in foreign currencies 2,946,207 3,557,332
Other credit institutions 779,802 2,635,792 Margin deposits 536,736 535,160
1,182,807 3,423,047 Margin deposits in VND 515,855 504,300
Margin deposits in foreign currencies 20,881 30,860
(*) This is the borrowings from Malayan Banking Berhad - Singapore Branch have principal Deposits for specific purposes 482,274 350,563
amount of USD50 million, term of 36 months, floating interest rate. As at 31 December 2023, the
outstanding borrowing balance is USD16,660,000 equivalent to VND403,005 million (31 December Deposits for specific purposes in VND 99,351 103,044
2022: outstanding balance was USD33,330,000 equivalent to VND787,255 million). Deposits for specific purposes in foreign currencies 382,923 247,519
Margin deposits for other settlement services 467,958 612,375
Annual interest rates applicable to borrowings from other credit institutions at year-end are as
follows: Margin deposits for other settlement services in VND 458,196 611,511
Margin deposits for other settlement services in foreign
9,762 864
currencies
31 December 2023 31 December 2022
% p.a. % p.a. 510,744,394 454,740,496

In VND 3.03 - 6.77 2.00 - 10.19 Annual interest rates applicable to customer deposits at year-end are as follows:
In foreign currencies 0.75 - 7.23 0.75 - 10.15
31 December 2023 31 December 2022
% p.a. % p.a.

Demand deposits in VND 0.00 - 0.50 0.00 - 1.20

Demand savings deposits in VND 0.00 - 0.10 0.00 - 0.10
Demand deposits in foreign currencies 0.00 - 3.50 0.00 - 3.00
Demand savings deposits in foreign currencies 0.00 - 3.50 0.00
Term deposits in VND 0.00 - 12.50 0.02 - 12.80
Term savings deposits in VND 0.00 - 13.00 0.01 - 13.00
Term deposits in foreign currencies 0.00 - 7.72 0.00 - 7.77
Term savings deposits in foreign currencies 0.00 - 6.90 0.00 - 1.50

In case term deposits are withdrawn before the maturity date, the demand interest rate shall be applied.

142 2023 ANNUAL REPORT www.sacombank.com.vn 143

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

118. DUE TO CUSTOMERS (CONTINUED) 20. VALUABLE PAPERS ISSUED

18.2 Breakdown by customers and type of business

Ending balance Beginning balance
VND million VND million
Ending balance Beginning balance Certificates of deposit 26,992,491 18,520,307
VND million VND million
Under 12 months 492,958 304,654
Deposits from economic entities 93,456,336 78,145,909
From 12 months to 5 years 13,170,528 4,849,570
Other joint stock companies 30,188,188 22,310,121
Over 5 years 13,329,005 13,366,083
Other private limited companies 26,422,617 23,875,726
Definitive bonds issued by credit institutions 2,000,000 7,300,000
Foreign invested companies 18,714,710 16,494,562
From 12 months to 5 years 2,000,000 7,300,000
State-owned companies 4,940,192 4,034,533
28,992,491 25,820,307
The joint stock company of which over 50% of share capital or the
total voting share capital is held or controlled by the State under 4,137,942 3,965,539
the company’s charter Annual interest rates applicable to valuable papers issued at year-end as follows:

One-member limited liability companies of which 100% charter

2,726,010 2,110,547 31 December 2023 31 December 2022
capital is held by the State
% p.a. % p.a.
Cooperatives and inter-cooperatives 438,852 347,807
Under 12 months 3.40 - 10.00 4.00 - 11.00
Private companies 389,795 407,708
From 12 months to 5 years 3.80 - 12.00 3.50 - 12.00
Business households, individuals 138,970 159,409
Over 5 years 6.43 - 9.60 6.72 - 8.88
Partnerships 87,900 21,980
Limited liability companies with two or more members of which 21. OTHER LIABILITIES
more than 50% of the charter capital is held or controlled by the 46,719 54,770
State 21.1 Interest and fees payable
Public administrative units, agencies of the Communist Party,
21,397 14,722
unions and associations Ending balance Beginning balance
VND million VND million
Others 5,203,044 4,348,485
Interest payables for saving deposits in VND 8,202,683 5,156,236
Deposits from individuals 417,288,058 376,594,587
Interest payables for customer and other credit institution deposits
510,744,394 454,740,496 2,137,876 1,214,825
in VND

19. GRANTS, ENTRUSTED FUNDS AND LOANS EXPOSED TO RISKS Interest payables for valuable papers in VND 1,112,272 774,711
Interest payables for saving deposits in foreign currencies 116,388 485
Ending balance Beginning balance Interest payables for currency derivatives 52,905 142,191
VND million VND million
Interest payables for borrowings from other credit institutions
Grants, entrusted funds and loans in foreign currencies 323,147 239,837 11,756 32,546
in foreign currencies
Interest payables for borrowings from the SBV and other credit
5,980 82,155
institutions in VND
Interest payables for grants, entrusted funds and loans in foreign
2,068 2,021
currencies
Interest payables for customer and other credit institution deposits
2,046 111,400
in foreign currencies
11,643,974 7,516,570

144 2023 ANNUAL REPORT www.sacombank.com.vn 145

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

21. OTHER LIABILITIES (CONTINUED) 22. STATUTORY OBLIGATIONS

21.2 Other payables

Movements during the year

Ending balance Beginning balance Beginning Other Ending

VND million VND million balance Payables Paid adjustment balance
VND million VND million VND million VND million VND million
Payables for internal activities 3,667,488 3,327,030
Corporate income tax (242,597) 2,016,154 (840,774) 3,730 936,513
Bonus and welfare funds (*) 2,097,411 1,553,182
Payables to employees 1,503,315 1,715,954 Value added tax 132,604 525,407 (596,689) 86 61,408

Other payables 66,762 57,894 Other taxes 71,470 728,344 (738,492) 187 61,509
Payables for external activities 35,169,238 23,246,944 (38,523) 3,269,905 (2,175,955) 4,003 1,059,430
Payables relating to intermediary and electronic support payment
23,992,081 15,719,558 In which:
services
Collection and payment on behalf of credit institutions 6,468,028 2,923,166 Tax advances (350,116) (1,908)

Payables for card operations 1,326,147 1,867,410 Tax payables to the State 311,593 1,061,338
Taxes payable to the State Budget 1,061,338 311,593
22.1. Current corporate income tax (“CIT”)
Payables to foreign remittance companies 663,319 482,844
Interest payable on deposits due to payment 425,933 357,747 The Bank and its subsidiaries have the obligation to pay corporate income tax at the rate of 20% of
taxable profit for the current year. Sacombank (Cambodia) Plc. has the obligation to pay corporate
Deposits for purchase of foreclosed assets 331,713 314,756 income tax at the higher of 20% of taxable profit for the current year and 1% of taxable revenue in
Payables to customers 262,831 722,233 Cambodia. Sacombank (Lao) Sole Co.,Ltd has the obligation to pay corporate income tax at the rate
of 20% of taxable profit for the current year in Laos.
Unearned income 135,312 139,705
Others 502,536 407,932 The Bank and its subsidiaries’ tax returns are subject to examination by the taxation authorities.
Since the application of tax laws and regulations to many types of transactions are susceptible to
38,836,726 26,573,974
varying interpretations, amounts reported in the consolidated financial statements could be changed
at a later date upon final determination by the taxation authorities.
(*) Movements of the bonus and welfare fund during the year are as follows:

Current year Previous year

VND million VND million
Beginning balance 1,553,182 1,161,864
Appropriation during the year 554,288 404,737
Utilization during the year (10,068) (13,419)
Other increase 9 -
Ending balance 2,097,411 1,553,182

146 2023 ANNUAL REPORT www.sacombank.com.vn 147

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

22. STATUTORY OBLIGATIONS (CONTINUED) 22. STATUTORY OBLIGATIONS (CONTINUED)

22.1. Current corporate income tax (“CIT”) (continued) 22.2 Deferred corporate income tax

The current CIT payable is based on taxable profit for the year. Taxable income differs from profit Changes in deferred CIT assets and deferred CIT payables and effects on the consolidated income
as reported in the consolidated income statement since it excludes taxable income or deductible statement of the Bank and its subsidiaries are as follows:
expenses in prior years due to the differences between the Bank and its subsidiaries’ accounting
policies and the current income tax policies and excludes non-taxable income or non-deductible
The consolidated statement Effect on the consolidated
expenses. The current CIT payables are calculated based on the statutory tax rates applicable at the of financial position income statement
consolidated statement of financial position date.
Ending Beginning
Reconciliation between current CIT expense and the accounting profit multiplied by CIT rate is balance balance Current year Previous year
VND million VND million VND million VND million
presented below:
Deferred CIT assets
Current year Previous year Provision for other assets 373,669 235,852 137,817 (112,273)
VND million VND million
Loss carried forward 19,972 5,659 14,313 (28,664)
Accounting profit before tax 9,595,000 6,339,072
Taxable temporary differences
Adjustments to consolidate the financial statement 44,669 197,657 - - - (8,661)
of subsidiaries
Accounting profit before tax before adjustments for consolidation Depreciation expense 4,183 1,336 2,847 (12,561)
9,639,669 6,536,729
of financial statement
397,824 242,847 154,977 (162,159)
At applicable CIT tax rate of 20% for the Bank and its subsidiaries 1,927,934 1,307,346
Deferred CIT payables
Adjustments to increase: 170,964 110,252
Depreciation difference
Adjustments to decrease: (82,744) (580,377) - (694) 694 (22)
of subsidiaries
Estimate CIT expense for the year 2,016,154 837,221 Temporary differences from
(29,660) (28,766) (894) (1,020)
accumulated loss of subsidiaries
Tax expense for land use rights transfer - 331,346
(29,660) (29,460) (200) (1,042)
Current CIT expense for the year 2,016,154 1,168,567

Previous year’s adjustment 14,536 (35,560)

Foreign currency difference 471 2,169
Net deferred tax income/(expense) charged to
139,770 (129,810)
the consolidated income statement

148 2023 ANNUAL REPORT www.sacombank.com.vn 149

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

23. OWNERS’ EQUITY

23.1 Statement of changes in owners’ equity

Fund for capital Foreign currency Retained

Charter capital expenditure Share premium Other capital Reserves translation reserve earnings Total
VND million VND million VND million VND million VND million VND million VND million VND million

Beginning balance 18,852,157 1,121 1,747,651 653 4,223,224 (169,492) 13,971,682 38,626,996

Increase during the year - - - - - (55,997) 7,718,616 7,662,619

Appropriation to reverses - - - - 747,933 - (747,933) -

Profit appropriation to the Bonus and

welfare fund - - - - - - (554,288) (554,288)

Other adjustments - - - - - - (1,463) (1,463)

Ending balance 18,852,157 1,121 1,747,651 653 4,971,157 (225,489) 20,386,614 45,733,864

During the year, the Bank and its subsidiaries are in process of making appropriation to Financial
reserve, Capital supplementary reserve funds and Bonus and welfare funds according to approval of
the Resolution of the General Meeting of Shareholders No. 01/2023/NQ-DHDCD dated 25 April 2023.

Movements of reverse funds of the Bank and its subsidiaries during the year are as follows:

Investment and Capital supplementary

development fund Financial reserve reserve Total
Items VND million VND million VND million VND million

Beginning balance 118,539 2,620,504 1,484,181 4,223,224

Appropriation to reverses - 490,906 257,027 747,933

Ending balance 118,539 3,111,410 1,741,208 4,971,157

150 2023 ANNUAL REPORT www.sacombank.com.vn 151

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

23. OWNERS’ EQUITY (CONTINUED) 25. INTEREST AND SIMILAR INCOME

23.1 Statement of changes in owners’ equity (continued)

Current year Previous year
VND million VND million
Details of shares issued by the Bank are as follows:
From loans to customers and other credit institutions 52,018,902 34,218,975

Ending balance Beginning balance From investment securities 1,800,011 1,492,415

Unit Unit
From due from other credit institutions 821,192 444,486
Number of authorized shares 1,885,215,716 1,885,215,716
From financial leasing services 485,199 336,344
Number of issued shares
From guarantee services 257,134 295,558
- Ordinary shares 1,885,215,716 1,885,215,716
Number of outstanding shares From purchased debts 2,600 26,221
- Ordinary shares 1,885,215,716 1,885,215,716 From other credit activities 542,291 576,849
55,927,329 37,390,848
23.2 Dividends

26. INTEREST AND SIMILAR EXPENSES
Current year Previous year
VND million VND million
Current year Previous year
Beginning balance of dividend payable 8,578 8,751 VND million VND million
Dividend paid during the year (25) (173)
For due to customers and other credit institutions 31,474,025 17,737,343
Ending balance of dividend payable 8,553 8,578
For valuable paper issued 1,892,513 1,377,913

24. BASIC EARNINGS PER SHARE For borrowings from the SBV and other credit institutions 378,523 417,289
For other credit activities 109,935 711,169
Basic earnings per share are calculated by dividing net profit after tax for the year attributable to 33,854,996 20,243,714
ordinary shareholders of the Bank (after adjusting for the bonus and welfare fund) to the weighted
average number of ordinary shares outstanding during the year. 27. NET FEE AND COMMISSION INCOME

The following reflects the income and share data used in the basic and diluted earnings per share
Current year Previous year
computations: VND million VND million
Fee and commission income 6,136,710 8,329,935
Previous year
Current year (restated) From entrustment and agency services 1,826,531 3,019,954
From settlement services 1,046,009 1,202,201
Profit after tax (VND million) 7,718,616 5,040,695
From insurance agency services 796,010 1,764,948
Distribution to Bonus and welfare fund (VND million) (*) - (554,288)
From cashier services 195,715 237,575
Net profit after tax attributable to ordinary shareholders (VND million) 7,718,616 4,486,407
From remittance services 58,019 45,356
Weighted average number of ordinary shares (share) 1,885,215,716 1,885,215,716
From warehouse rental - 82,554
Basic earnings per share (VND/share) 4,094 2,380
From other services 2,214,426 1,977,347
(*) The profit used to calculate earnings per share for 2022 had been adjusted in comparison to Fee and commission expenses (3,518,807) (3,135,855)
the figures presented in the consolidated financial statements for the financial year ended 31 For settlement services (2,381,265) (2,061,099)
December 2022 to reflect the actual allocation to Bonus and Welfare fund from retained earnings
For postal and communication (495,461) (512,340)
in 2022 as per Resolution No. 01/2023/NG-ĐHĐCĐ dated 25 April 2023 of the Annual General
Meeting of Shareholders. The provision for Bonus and Welfare fund for 2023 will be made in For brokerage services (148,764) (100,654)
2024 after approval at the Annual General Meeting of Shareholders. At the date of this report, the For consulting services (42,497) (125,358)
Bank and its subsidiaries have not reliably estimated the amount of profit that may be allocated For cashier services (32,836) (36,101)
to the Bonus and Welfare Fund for the financial year ended 31 December 2023. Therefore, the For other services (417,984) (300,303)
basic earnings per share for the financial year ended 31 December 2023 have not been adjusted.
2,617,903 5,194,080

152 2023 ANNUAL REPORT www.sacombank.com.vn 153

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

28. NET GAIN FROM TRADING OF FOREIGN CURRENCIES 31. INCOME FROM INVESTMENTS IN OTHER ENTITIES

Current year Previous year Current year Previous year

VND million VND million VND million VND million
Income from trading of foreign currencies 1,790,207 1,566,481 Dividends received during the year 22,837 12,466
Income from spot foreign exchange 1,029,302 1,135,408 - From investment securities 1,619 460
Income from currency derivatives 691,451 277,489 - From other long-term investments 21,218 12,006
Income from gold trading 35,140 126,313 22,837 12,466
Gain from revaluation of foreign currencies, gold and derivative
34,314 27,271 32. OPERATING EXPENSES
financial instruments
Expenses from trading of foreign currencies (690,659) (504,237)
Current year Previous year
Expenses from currency derivatives (648,191) (457,612) VND million VND million
Expenses from spot foreign exchange (42,451) (46,544) Tax, duties and fees 283,395 263,071
Expenses from gold trading (17) (81) Personnel expenses 6,869,829 6,882,923
1,099,548 1,062,244 – Salary and allowances 6,226,526 6,273,445
– Salary-related allowances 397,101 369,543
29. NET GAIN/(LOSS) FROM INVESTMENT SECURITIES
– Subsidy 156,942 186,399
– Uniform allowances 89,260 53,536
Current year Previous year
VND million VND million Asset expenditures 2,725,472 2,039,743

Gain from dealing of investment securities 46,700 19,919 – Depreciation and amortization charges 1,148,589 665,889

Loss from dealing of investment securities (8,343) (40,736) – Expenses for office rental 804,449 682,739

Provision (charged)/reversed for investment securities (4,540) 834 – Expenses for assets repairing and maintenance 633,170 552,453
– Purchasing tools and supplies 127,300 126,906
33,817 (19,983)
– Expenses for asset insurance 11,964 11,756
30. NET GAIN FROM OTHER OPERATING ACTIVITIES Other operating expenses 1,927,463 1,657,413
– Expenses for advertising, marketing 813,544 711,307
Current year Previous year
VND million VND million
– Material, printing expense 229,019 237,993

Other operating income 445,447 2,874,203 – Utilities expenses 198,276 193,055

Gain from card activities 184,078 65,855 – Meeting and conference expense 154,989 131,089
Future contracts fee 110,630 61,924 – Business trip expenses 128,575 56,201
Recovery of bad debts previously written-off 79,680 364,589 – Postage and telecommunication expenses 43,525 28,581
Recovery of doubtful receivables 16,791 - – Education and training expenses 8,487 28,808
Gain from disposal of fixed assets 2,966 1,984,218 – Other expenses 351,048 270,379
Other income 51,302 397,617
Insurance expenses for customer deposits 605,054 550,889
Other operating expenses (118,874) (128,854)
Provision expenses/(reversal) 478,693 (473,322)
Expenses on other derivatives (35,966) (19,130)
– Provision for long-term investments 6,170 156
Corporate social responsibility activities (23,489) (29,875)
Other expense (59,419) (79,849) – Provision for other assets 472,523 (473,478)

326,573 2,745,349 12,889,906 10,920,717

154 2023 ANNUAL REPORT www.sacombank.com.vn 155

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

33. CASH AND CASH EQUIVALENTS 35. COLLATERALS AND MORTGAGES (CONTINUED)

Cash and cash equivalents included in the consolidated cash flow statement comprise of the 35.2 Assets, valuable papers taken for mortgage, pledge and discount, rediscount
following amounts on the consolidated statement of financial position
Breakdown of the Bank and its subsidiaries’ financial assets used to guarantee the electronic clearing
service and credit limit for borrowings from other credit institutions and the SBV at year-end are as
Ending balance Beginning balance
VND million VND million follows:

Cash, gold and gemstones 7,545,270 7,849,898

Ending balance Beginning balance
Balances with the State Bank 12,848,045 12,286,117 VND million VND million
Demand deposits with other credit institutions 20,841,806 8,083,740 Government bonds (Note 12.1 and 12.2) 5,021,623 17,623,108
Due from other credit institutions with term less than three months 29,272,595 16,884,540
36. CONTINGENT LIABILITIES AND COMMITMENTS
70,507,716 45,104,295
In the normal course of business, the Bank and its subsidiaries are parties to financial instruments
34. EMPLOYEES’ INCOME which are recorded as off-balance-sheet items. These financial instruments mainly comprise of
guarantee commitments and commercial letters of credit. These instruments involve elements of
Current year Previous year credit risk out of the items recognized in the consolidated statement of financial position.

I. Total average number of employees (persons) 18,463 18,414 Credit risk for off-balance-sheet financial instruments is defined as the possibility of sustaining a
II. Employees’ income (VND million) loss because any other party to a financial instrument fails to perform in accordance with the terms
of the contract.
1. Total salary and advances 4,796,023 4,333,321
2. Bonus 1,823,792 1,408,000 Financial guarantees are conditional commitments issued by the Bank and its subsidiaries to
guarantee the performance of a customer to a third-party including guarantee for borrowings,
3. Other income 1,126 150 settlement, performing contracts and bidding. The credit risk involved in issuing guarantees is
4. Total income (1+2+3) 6,620,941 5,741,471 essentially the same as that involved in extending loans to other customers.

5. Average salary per month (VND million/person) 21.65 19.61 Commercial at sight letters of credit represent a financing transaction by the Bank and its subsidiaries
6. Average income per month (VND million/person) 29.88 25.98 to its customer who is usually the buyer/importer of goods and the beneficiary is typically the seller/
exporter. Credit risk from this type of letters of credit is limited as the merchandise shipped serves
35. COLLATERALS AND MORTGAGES as collateral for the transaction.

35.1 Assets, valuable papers taken for mortgage, pledge and discount, rediscount Deferred payment letters of credits represent the amounts at risk should the contract be fully
affected but the client defaults in repayment to the beneficiary. Deferred payment letters of credit that
Types and book value of collaterals of customers at the year-end are as follows: defaulted by clients are recognized by the Bank and its subsidiaries as granting of a compulsory loan
with a corresponding liability representing the financial obligation of the Bank and its subsidiaries to
pay the beneficiaries and to fulfil the guarantor obligation.
Ending balance Beginning balance
VND million VND million Guarantee commitment is the commitment issued by the Bank and its subsidiaries to guarantee
Real estate properties 774,017,172 717,098,250 the performance of the customers to a third party including guarantee for borrowings, settlement,
performing contracts and bidding... Credit risk of the borrowing guarantee, settlement guarantee in
Valuable papers 5,063,310 31,794,008 general is essentially the same as that involved in extending loans to other customers, while other
Transportation vehicles 23,136,188 23,866,171 guarantees, the risk is lower.
Machines and equipment 2,784,920 5,352,191
Risk of the letter of credit is usually lower, in condition that the Bank and its subsidiaries can control
Inventories 26,807,263 3,983,754 goods. Deferred letter of credit may have contingent risk higher than at sight letter of credit. Deferred
payment letters of credit that were defaulted by clients are recognized by the Bank and its subsidiaries
Other assets 57,270,386 40,634,493
as granting of a compulsory loan with a corresponding liability representing the financial obligation of
889,079,239 822,728,867 the Bank and its subsidiaries to pay the beneficiaries and to fulfill the guarantor obligation.

156 2023 ANNUAL REPORT www.sacombank.com.vn 157

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

36. CONTINGENT LIABILITIES AND COMMITMENTS (CONTINUED) 37. INTEREST AND RECEIVABLE FEES NOT YET COLLECTED

The Bank and its subsidiaries require margin deposits to support credit-related financial instruments
Ending balance Beginning balance
when it is deemed necessary. The margin deposit required varies from nil to 100% of the value of a VND million VND million
commitment granted, depending on the creditworthiness of clients as assessed by the Bank and its
subsidiaries. Interest from loans to customers not yet collected 30,456,874 29,253,619
Receivable fees not yet collected 12,983 6,778
The currency trading commitments are commitments to purchase, sell at spot and currency swap
commitments. Commitments to purchase, sell at spot are commitments to purchase, sell currency 30,469,857 29,260,397
according to exchange rate dealt and payment within 2 (two) days since transaction date. Currency
swap commitments are commitments to purchase and sell with the same notional principal amount 38. WRITTEN-OFF DEBTS
(only two currencies used for transaction) to one client, including one transaction for term payment at
spot and one transaction for term payment in the future with the exchange rate of both transactions Ending balance Beginning balance
determined at spot transaction date. VND million VND million

Details of outstanding commitments and contingent liabilities at year-end are as follows: Debts that have been written-off and under monitoring
- Principal 5,606,667 3,837,940
Ending balance Beginning balance - Interest 1,069,708 913,224
VND million VND million
6,676,375 4,751,164
Currency trading commitments 122,663,800 48,005,012
- Commitments on buying foreign currencies 449,709 983,192 39. ASSETS AND OTHER DOCUMENTS
- Commitments on selling foreign currencies 1,103,464 1,099,574
Ending balance Beginning balance
- Commitments on swap 121,110,627 45,922,246
VND million VND million
Letters of credit 7,240,658 4,965,314
Precious metals, gemstones under custody services 118,183 119,658
Guarantees for borrowings 33,598 66,327
Other assets kept under custody services 40,171,573 41,418,594
Other guarantees 11,350,784 11,445,661
Outsourced assets 27,986 28,082
141,288,840 64,482,314
Foreclosed assets pending for settlement 487,071 7,123
Less: Margin deposits (243,674) (281,144)
Other valuable documents under safekeeping 43,202,576 28,676,094
Contingent liabilities and commitments 141,045,166 64,201,170
84,007,389 70,249,551

The classification on contingent liabilities and commitments as required by Circular 11 and the Bank
and its subsidiaries’ policy on loan classification and provision are as follows:

Ending balance Beginning balance

VND million VND million
Current 18,567,105 16,007,916
Special mention 10,792 122,214
Sub-standard 25,474 345,313
Doubtful 752 1,050
Loss 20,415 809
18,624,538 16,477,302

158 2023 ANNUAL REPORT www.sacombank.com.vn 159

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

40. RELATED PARTY TRANSACTIONS 40. RELATED PARTY TRANSACTIONS (CONTINUED)

Related party transactions include all transactions undertaken with other entities to which the Bank Significant transactions with related parties during the year are as follows:
and its subsidiaries are related. Parties are considered as related parties if one party is able to
control over or significantly influence the other party in making decision of financial and operational
Related party Transactions Current year Previous year
policies. A party is deemed to be related to the Bank and its subsidiaries if: VND million VND million

(a) Directly, or indirectly through one or more intermediaries, the party: Key management Interest income from loans 6,800 3,127
of the Bank and
subsidiaries Interest expenses on deposit (21,964) (7,421)
» control or is controlled by or is under common control with the Bank (including parents and
subsidiaries); Fee and commission income 151 55
Other operating expenses - (5,397)
» has an interest (owning 5% or more of the charter capital or voting share capital) in the Bank
that gives it significant influence over the Bank; Net remuneration of members of the Board of Director (44,182) (35,243)
Net remuneration of members of the Board of (16,994) (17,438)
» has joint control over the Bank; Supervisors

(b) The party is a joint venture in which the Bank and its subsidiaries are a venture or an associate Net income of members of the Board of Management (101,507) (93,709)
(owning over 11% of the charter capital or voting share capital, but is not a subsidiary of the
Bank); Remuneration of members of the Bank's Board of Directors during the year are as follows:

(c) The party is a member of the key management personnel of the Bank and its subsidiaries; Name Position VND million Date of appointment/re-appointment

(d) The party is a close member of the family of any individual referred to in (a) or (c); or Mr. Duong Cong Minh Chairman 8,625 Re-appointed on 22 April 2022
Mrs. Nguyen Duc Thach Diem Standing Vice Chairman 1,811 Appointed on 22 April 2022
(e) The party is an entity that is, directly or indirectly, controlled, jointly controlled or significantly
influenced by, or of which, significant voting power in such entity resides with any individual Mr. Pham Van Phong Vice Chairman 5,693 Appointed on 22 April 2022
referred to in (c) or (d). Mr. Nguyen Xuan Vu Member 4,312 Re-appointed on 22 April 2022

Receivables/(payables) with related parties as at the year-end are as follows: Mr. Phan Dinh Tue Member 2,559 Appointed on 22 April 2022
Mr. Vuong Cong Duc Independent member 3,450 Appointed on 22 April 2022
Related party Transactions Ending balance Beginning balance Mrs. Pham Thi Thu Hang Independent member 3,450 Appointed on 22 April 2022
VND million VND million
Key management of the Bank Loans 164,431 67,936 Remuneration of members of the Bank’s Board of Supervisors during the year are as follows:
and subsidiaries
Due to (241,365) (291,898)
Name Position VND million Date of appointment/re-appointment
Certificates of deposit (1,960) (460)
Mr. Tran Minh Triet Chief Supervisor 4,313 Re-appointed on 22 April 2022
Other receivables 1,273 11,990
Mr. Nguyen Van Thanh Member 3,450 Appointed on 22 April 2022
Other payables (7,544) (2,815)
Mr. Lam Van Kiet Member 3,450 Appointed on 22 April 2022
Mrs. Ha Quynh Anh Member 3,450 Appointed on 22 April 2022
Related parties to key Loans 4,020,196 101,619
management of the Bank
and subsidiaries Due to (271,632) (203,017)
Certificates of deposit (20,170) (20,210)
Other receivables 25,025 1,051
Other payables (8,562) (5,534)

160 2023 ANNUAL REPORT www.sacombank.com.vn 161

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

40. RELATED PARTY TRANSACTIONS (CONTINUED) 40. RELATED PARTY TRANSACTIONS (CONTINUED)

Remuneration of the members at Subsidiaries during the year are as follows: Significant transactions with related parties during the year are as follows (continued):

Name Position VND million Date of appointment/re-appointment Related party Transactions Current year Previous year
VND million VND million
Mr. Trinh Van Ty Chairman Board of Directors 3,467 Appointed on 11 August 2023 Related parties to key Interest income from deposits/loans 327,765 4,826
Sacombank Cambodia management of the Bank
and subsidiaries Interest expenses on borrowings/ (17,494) (8,797)
Independent member Appointed on 3 July 2023
deposits
Board of Directors
Sacombank Lao Fee and commission income 15,777 60
Other expense (2,485) (2,049)
Mr. Chhuon Chhen Member Board of Directors and 1,900 Appointed on 11 August 2023
Deputy General Director
Board of Management 41. CONCENTRATION OF ASSETS, LIABILITIES AND OFF-BALANCE-SHEET ITEMS BY GEOGRAPHICAL
Sacombank Cambodia REGIONS

Mr. Ly Rotha Independent member Board of 308 Appointed on 11 August 2023

Domestic Overseas Total
Directors Sacombank Cambodia
VND million VND million VND million

Mr. Phung Nguyen Au De Independent member Board of 153 Appointed on 11 August 2023 Assets as at 31 December 2023
Directors Sacombank Cambodia
Due from and loans to other credit institutions 44,326,349 6,006,622 50,332,971
Mr. Nguyen Nhi Thanh Chairman Board of Director 1,901 Appointed on 3 July 2023 Loans to customers - gross 476,494,010 6,237,112 482,731,122
Sacombank Lao
Trading and investment securities - gross 89,240,070 11,443 89,251,513
Vice Chairman Board of Appointed on 11 August 2023
Directors Sacombank Cambodia Long-term investments - gross 97,014 - 97,014
Liabilities as at 31 December 2023
Mr. Pham Quang Phu Vice Chairman Board of 1,938 Appointed on 3 July 2023
Directors Sacombank Lao Debts owed to the Government and the SBV 19,328 - 19,328
Due to and borrowings from other credit
Mr. Phan Tan Dung Chairman Board of Directors 998 Appointed on 11 July 2023 37,018,282 931,829 37,950,111
institutions
Sacombank SBA
Due to customers 503,329,739 7,414,655 510,744,394
Mr. Luu Huynh Chairman Board of Directors 3,617 Appointed on 22 April 2022 Derivatives and other financial instruments 60,881,285 - 60,881,285
Sacombank SBL
Grants, entrusted funds and loans exposed
- 323,147 323,147
Mr. Le Van Ba Chief Supervisor Board of 1,092 Re-appointed on 21 January 2021 to risks
Supervision Sacombank SBL
Valuable papers issued 28,992,491 - 28,992,491
Mr. Doan Mau Lam Member Board of Supervision 669 Re-appointed on 21 January 2021 Off-balance-sheet commitments as at
140,495,033 793,808 141,288,841
Sacombank SBL 31 December 2023 - gross

Mrs. Bui Thi Mai Thoa Member Board of Supervision 570 Re-appointed on 21 January 2021
Sacombank SBL

The average monthly income of the members of the Board of Executives of the Bank and subsidiaries
during the year was VND290 million/person.

162 2023 ANNUAL REPORT www.sacombank.com.vn 163

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

42. SEGMENT REPORT

42.1 Main segment report: by geographical region

Information on income, expenses, assets and liabilities by geographical region of the Bank and its
subsidiaries as at 31 December 2023 and for the year then ended is as follows:

Total segment
North Central South Laos Cambodia reported Eliminations Total
VND million VND million VND million VND million VND million VND million VND million VND million
Interest and similar income 10,535,362 10,283,806 53,567,137 165,267 392,932 74,944,504 (19,017,175) 55,927,329
Interest and similar expenses (7,670,749) (6,264,181) (38,656,568) (81,923) (198,750) (52,872,171) 19,017,175 (33,854,996)
Net interest and similar income 2,864,613 4,019,625 14,910,569 83,344 194,182 22,072,333 - 22,072,333
Non-interest income 244,239 161,722 3,541,373 58,325 95,019 4,100,678 - 4,100,678
TOTAL OPERATING INCOME 3,108,852 4,181,347 18,451,942 141,669 289,201 26,173,011 - 26,173,011
TOTAL OPERATING EXPENSES (1,158,259) (983,323) (10,430,971) (102,862) (214,491) (12,889,906) - (12,889,906)
Net profit before provision for credit losses 1,950,593 3,198,024 8,020,971 38,807 74,710 13,283,105 - 13,283,105
Provision expense for credit losses - - (3,822,179) 33,376 100,698 (3,688,105) - (3,688,105)
PROFIT BEFORE TAX 1,950,593 3,198,024 4,198,792 72,183 175,408 9,595,000 - 9,595,000
Corporate income tax expenses - - (1,862,936) (7,207) (6,241) (1,876,384) - (1,876,384)
PROFIT AFTER TAX 1,950,593 3,198,024 2,335,856 64,976 169,167 7,718,616 - 7,718,616
ASSETS
Cash, gold and gemstones 1,018,457 1,009,752 5,296,065 29,952 191,044 7,545,270 - 7,545,270
Balances with the State Bank 222,085 491,433 10,698,366 376,356 1,059,805 12,848,045 - 12,848,045
Due from and loans to other credit institutions 16,994 769 49,870,406 356,721 88,081 50,332,971 - 50,332,971
Loans to customers 69,229,619 83,011,254 317,527,514 1,332,335 4,068,386 475,169,108 - 475,169,108
Investments - - 74,707,044 10,838 605 74,718,487 - 74,718,487
Other assets 2,549,509 1,369,874 50,115,479 144,943 158,723 54,338,528 (562,749) 53,775,779
TOTAL ASSETS 73,036,664 85,883,082 508,214,874 2,251,145 5,566,644 674,952,409 (562,749) 674,389,660
LIABILITIES
Debts owed to the Government and the SBV - - 19,328 - - 19,328 - 19,328
Due from and borrowings from other credit institutions 68,302 5,474 37,748,726 452 127,157 37,950,111 - 37,950,111
Due to customers 92,234,958 64,408,975 348,642,317 1,381,906 4,076,238 510,744,394 - 510,744,394
Valuable papers issued 4,818,466 2,388,059 21,785,966 - - 28,992,491 - 28,992,491
Other liabilities 2,826,077 1,727,531 46,381,549 412,555 164,509 51,512,221 (562,749) 50,949,472
TOTAL LIABILITIES 99,947,803 68,530,039 454,577,886 1,794,913 4,367,904 629,218,545 (562,749) 628,655,796

164 2023 ANNUAL REPORT www.sacombank.com.vn 165

166
42.

42.2

Interbank:
followings:

Investments:

2023 ANNUAL REPORT

corporate customers:
Individual customers and
SEGMENT REPORT (CONTINUED)
as at 31 December 2023 and for the year then ended

Secondary segment report: by business sector

– customer deposits;
– loans to customers;

other credit institutions.

– card services and remittance services.
Securities investments and other long-term investments.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

The products and services provided to individual and corporate clients include:

Placements from and to; borrowings, lending and other interbank activities with
For management purposes, the Bank and its subsidiaries are organized into sectors based on the
B05/TCTD-HN

42. SEGMENT REPORT (CONTINUED)

42.2 Secondary segment report: by business sector (continued)

Information on assets and liabilities of the business sectors of the Bank and its subsidiaries as at 31 December 2023 is as follows:

Individual and
corporate Un-allocated
customers Investments Interbank general activities Total
VND million VND million VND million VND million VND million

ASSETS
Cash, gold and gemstones - - - 7,545,270 7,545,270
Balances with the State Bank - - 12,848,045 - 12,848,045
Due from and loans to other credit institutions - - 50,332,971 - 50,332,971
Loans and advances to customers 475,169,108 - - - 475,169,108
as at 31 December 2023 and for the year then ended

Investment securities - 74,635,845 - - 74,635,845

Long-term investments - 82,642 - - 82,642
Fixed assets - - - 7,269,440 7,269,440
Other assets 41,075,487 1,690,830 206,692 3,533,330 46,506,339
TOTAL ASSETS 516,244,595 76,409,317 63,387,708 18,348,040 674,389,660
LIABILITIES
Debts owed to the Government and the SBV - - 19,328 - 19,328
Due to and borrowings from other credit institutions - - 37,950,111 - 37,950,111
Due to customers 510,744,394 - - - 510,744,394
Derivatives and other financial liabilities - - 91,459 - 91,459
Grants, entrusted funds and loans exposed to risks - - 323,147 - 323,147
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

Valuable papers issued 14,192,491 - 14,800,000 - 28,992,491

Other liabilities 38,572,670 - 7,035,887 4,926,309 50,534,866
TOTAL LIABILITIES 563,509,555 - 60,219,932 4,926,309 628,655,796

Segmental information on income and expenses is not presented as the Bank and its subsidiaries have not established management
information system to collect such information.
www.sacombank.com.vn
B05/TCTD-HN

167
 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

43. FINANCIAL RISK MANAGEMENT 43. FINANCIAL RISK MANAGEMENT (CONTINUED)

Risk is inherent in the Bank and its subsidiaries’ activities and is managed through a process of
(vi) Risk measurement and reporting systems (continued)
ongoing identification, measurement and monitoring, subject to risk limits and other controls. This
process of risk management is critical to the Bank and its subsidiaries’ continuing profitability and
Information compiled from all business activities is examined and processed in order to analyze,
each individual within the Bank and its subsidiaries are accountable for the risk prevention within
control and early identify risks. This information is presented and explained to the Board of
his or her responsibilities. The Bank and its subsidiaries are exposed to credit risk, liquidity risk and
Management, Board of Directors, and the department heads. The report includes aggregate
market risk (then being subdivided into trading and non-trading risks). It is also subject to various
credit exposure, credit metric forecasts, limit exceptions, liquidity ratios and risk profile changes.
operational risks.
The Board of Directors assesses the appropriateness of the allowance for credit losses on a
The independent risk control process does not include business risks such as changes in the quarterly basis. The Board of Directors receives a comprehensive risk report quarterly which
environment, technology and industry. The Bank and its subsidiaries’ policy is to monitor those is designed to provide all the necessary information to assess and conclude on the risks of the
business risks through the Bank and its subsidiaries’ strategic planning process. Bank and its subsidiaries.
(i) Risk management structure
For all levels throughout the Bank and its subsidiaries, specifically tailored risk reports are
The Board of Management is ultimately responsible for identifying and controlling risks. However, prepared and distributed in order to ensure that all business departments have access to
each consolidated member shall be responsible for managing and monitoring risks. extensive, necessary and up-to-date information.
(ii) Board of Management
(vii) Risk mitigation
The Board of Management is responsible for monitoring the overall risk management process
within the Bank and its subsidiaries. The Bank and its subsidiaries actively use collaterals to reduce its credit risks.
(iii) Risk Management Committee (viii) Excessive risk concentration
Risk Management Committee advises the Board of Management in the promulgation of
procedures and policies under their jurisdiction relating to risk management in the Bank and its Concentrations arise when a number of counterparties are engaged in similar business activities,
subsidiaries’ activities. or activities in the same geographic region, or have similar economic features that would affect
the group of customers’ payment obligations or payment receipt rights when due under changes
Risk Management Committee analyses and provides warnings on the potential risks that may in economic, political or other conditions.
affect the Bank and its subsidiaries’ operation and preventive measures in the short term as well
as long-term. These above concentrations indicate the relative sensitivity of the Bank and its subsidiaries’
Risk Management Committee reviews and evaluates the appropriateness and effectiveness performance to the development of a particular industry or geographic allocation.
of the risk management of procedures and policies of the Bank and its subsidiaries to make
recommendations to the Board of Management on the improvement of procedures, policies and In order to avoid excessive concentrations of risk, the Bank and its subsidiaries’ policies and
operational strategies. procedures include specific guidelines to focus on maintaining a diversified portfolio. Identified
concentrations of credit risk are controlled and managed accordingly. Selective hedging is used
(iv) Board of Supervisors within the Bank in respect of the industries and other related factors.
The Board of Supervisors has the responsibility to control the overall risk management process
within the Bank and its subsidiaries. 44. CREDIT RISK

(v) Internal Audit Credit risk is the risk that the Bank will incur a loss because its customers or counterparties fail to
According to the annual internal audit plan, business processes throughout the Bank and discharge their contractual obligations.
its subsidiaries are audited annually by the internal audit function, which examines both the
adequacy of the procedures and compliance with the Bank and its subsidiaries’ procedures. The Bank and its subsidiaries manage and controls credit risk by setting limits on the amount of risk
Internal audit discusses the results of all assessments with the Board of Directors and reports it is willing to accept for individual counterparties and for geographical and industry concentrations,
its findings and recommendations to the Board of Supervisors. and by monitoring exposures in relation to such limits.

(vi) Risk measurement and reporting systems The Bank and its subsidiaries have established a credit quality review process to provide early
The Bank and its subsidiaries’ risks are measured using a method which reflects both the identification of possible changes in the financial position and creditworthiness of counterparties
expected loss likely to arise in normal circumstances and unexpected losses, which are an based on qualitative and quantitative indicators. Counterparty’s limits are established by the usage
estimate of the ultimate actual loss based on statistical models. of a credit rating system, which assigns each counterparty a risk rating. Risk ratings are subject to
regular revision.
Monitoring and controlling of risks are primarily performed based on limits established by the
Bank and its subsidiaries in compliance with the SBV’s regulations. These limits reflect the
business strategy and market environment of the Bank and its subsidiaries as well as the level
of risk that the Bank and its subsidiaries are willing to accept.

168 2023 ANNUAL REPORT www.sacombank.com.vn 169

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

44. CREDIT RISK (CONTINUED) 44. CREDIT RISK (CONTINUED)

44.1 Maximum exposure to credit risk before collateral held or other credit enhancements 44.3 Financial assets past due but not impaired (continued)

The maximum exposures to credit risk relating to each group of financial assets, which are equivalent Loans to customers past due but not impaired are loans which are overdue but no provision is
to their book values on the consolidated statement of financial position, are listed below: required as these loans are secured adequately by collaterals under the form of deposits, real
estate, movable asset, valuable papers and other assets.
Ending balance Beginning balance
VND million VND million 45. MARKET RISKS
Credit risk exposures of balance sheet items 45.1 Interest rate risk
Balances with the State Bank 12,848,045 12,286,117
Interest rate risk arises from the possibility that changes in interest rates will affect the fair values
Due from and loans to other credit institutions 50,332,971 25,293,585
of financial instruments. The Bank and its subsidiaries are exposed to interest rate risk as a result of
Derivative financial instruments - 109,858 mismatches of maturity dates or dates of interest rate re-pricing in respect of assets, liabilities and
Loans to customers - gross 482,731,122 438,627,777 off-balance-sheet instruments over a certain period. The Bank and its subsidiaries manage this risk
- Individuals 266,367,847 253,075,616 by matching the dates of interest rate re-pricing of assets and liabilities through risk management
- Corporates 216,363,275 185,552,161 strategies.
Purchased debts - gross - 124,710 Analysis of assets and liabilities based on interest rate re-pricing date
Investment securities - gross 89,245,328 83,442,000
- Debt securities - available-for-sale 22,556,350 27,890,168
Re-pricing term of the effective interest rate is the remaining period from the date of the consolidated
financial statements to the nearest re-pricing date of interest rate applicable to assets and equity.
- Debt securities - held-to-maturity 66,688,978 55,551,832
Other financial assets - gross 42,979,539 32,466,269 The following assumptions and conditions are used in analysis of the re-pricing period of interest
Credit risk exposures of off-balance-sheet items - gross rates of the Bank and its subsidiaries’ assets and liabilities:
Financial guarantees 11,384,382 11,511,988 » Cash, gold and gemstones; investment in equity securities; long-term investment and other
Letters of credit 7,240,658 4,965,314 assets (including fixed assets, derivative financial instruments and other assets) are classified
as non-interest bearing items;
This table presents the worst scenario which the Bank and its subsidiaries will incur the maximum
credit exposures as at 31 December 2023 and as at 31 December 2022, without taking into account » The re-pricing term of balances with the State Bank is considered as up to one-month.
of any collateral held or their credit enhancements.
» The re-pricing term of investment securities and trading securities is calculated based on the
44.2 Financial assets neither past due nor impaired time to maturity from the statement of financial position date for each type of securities;
» The re-pricing term of placements with other banks and loans to other banks; loans to
The Bank and its subsidiaries' financial assets that are neither past due nor impaired include debts
customers; debts owed to the Government and the SBV; placements and borrowings from other
classified as Current, as prescribed in Circular 11 (including debts classified as Current that the Bank
credit institutions; customer deposits and grants, entrusted funds and loans exposed to risks
and its subsidiaries classify by themselves (excluding Covid-19 restructured debts with additional
are determined as follows;
provision according to Circular 01, Circular 03, Circular 14 and Circular 02) and Covid restructured
debts which are debts classified as Current after CIC), securities, receivables and other financial - Items which bear fixed interest rate during the contractual term: The re-pricing term is
assets that are not past due and no provision is required according to Circular No. 48/2019/TT-BTC determined based on the time to maturity from the statement of financial position date.
amended by Circular No. 24/2022/TT-BTC.
- Items which bear floating interest rate: The re-pricing term is determined based on the time
The Bank and its subsidiaries determine that the Bank and its subsidiaries have absolutely capacity to the nearest interest rate re-pricing date from the statement of financial position date.
to fully and timely recover these financial assets in the futures.
» The re-pricing term of valuable papers is determined based on the term of each types of valuable
44.3 Financial assets past due but not impaired papers.

The age of financial assets past due but not impaired as at 31 December 2023 is presented below:

Overdue
Less than From 91 to From 181 to More than
90 days 180 days 360 days 360 days Total
VND million VND million VND million VND million VND million

Loans to customer 413,900 134,689 207,957 413,576 1,170,122

170 2023 ANNUAL REPORT www.sacombank.com.vn 171

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

45. MARKET RISKS (CONTINUED)

45.1 Interest rate risk (continued)

The following table presents the interest re-pricing period of the Bank and its subsidiaries’ assets
and liabilities as at 31 December 2023:

Interest re-pricing period

Non-interest Up to 1 From 1 to 3 From 3 to 6 From 6 to 12 From 1 to 5 Over 5

Overdue bearing month months months months years years Total
VND million VND million VND million VND million VND million VND million VND million VND million VND million

Assets

Cash, gold and gemstones - 7,545,270 - - - - - - 7,545,270

Balances with the State Bank - - 12,848,045 - - - - - 12,848,045

Due from and loans to other credit institutions - - 49,427,687 765,342 78,018 61,924 - - 50,332,971

Loans to customers - gross 14,489,538 - 162,894,366 294,256,410 845,722 1,007,814 3,331,775 5,905,497 482,731,122

Investment securities - gross - 16,439,082 1,130,896 801,368 3,532,896 6,093,120 24,448,649 36,805,502 89,251,513

Long-term investments - gross - 97,014 - - - - - - 97,014

Fixed assets - 7,269,440 - - - - - - 7,269,440

Other assets - gross 2,300,755 47,082,555 - 19,617 10,102 49,413,029

Total assets 16,790,293 78,433,361 226,300,994 295,842,737 4,466,738 7,162,858 27,780,424 42,710,999 699,488,404

Liabilities

Debts owed to the Government and the SBV - - 429 18,899 - - - - 19,328

Due to and borrowings from other credit institutions - - 33,412,171 4,079,159 440,523 13,155 4,373 730 37,950,111

Due to customers 295,734 201,297,834 101,483,825 115,232,359 82,696,501 9,724,664 13,477 510,744,394

Derivatives and financial liabilities - 91,459 - - - - - - 91,459

Grants, entrusted funds and loans exposed to risks - - - - - 6,460 52,066 264,621 323,147

Valuable papers issued - - 715,664 3,408,410 9,889,905 13,796,994 1,181,518 - 28,992,491

Other liabilities - 50,534,866 - - - - - - 50,534,866

Total liabilities - 50,922,059 235,426,098 108,990,293 125,562,787 96,513,110 10,962,621 278,828 628,655,796

Interest sensitivity gap 16,790,293 27,511,302 (9,125,104) 186,852,444 (121,096,049) (89,350,252) 16,817,803 42,432,171 70,832,608

No analysis on interest rate sensitivity was performed at 31 December 2023 due to unavailability of
data sufficiency and technology.

172 2023 ANNUAL REPORT www.sacombank.com.vn 173

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

45. MARKET RISKS (CONTINUED) 45. MARKET RISK (CONTINUED)

45.2 Currency risk (continued) 45.2 Currency risk (continued)

Currency risk is the risk that the value of financial instruments will fluctuate due to changes in foreign Foreign currency sensitivity
exchange rates.
The following table demonstrates the sensitivity to a reasonably possible change in exchange rate,
The Bank and its subsidiaries are incorporated and operating in Vietnam with reporting currency as with all other variables held constant, of the Bank and its subsidiaries’ profit after tax and share
VND. The major currency of its transaction is also VND, some transactions are denominated in gold, holders’ equity. The Bank and its subsidiaries’ exposure to foreign currency changes for all other
USD, EUR and other foreign currencies. The Bank and its subsidiaries have set limits to control the currencies is not material.
positions of the currencies. Positions are monitored on a daily basis and hedging strategies are used to
ensure positions of the currencies to be maintained within the established limits. Exchange rate of some Assumed Effects on increase/
significant foreign currencies at year-end are presented in Note 49. level of change (decrease) profit after tax
% VND million
The following table presents assets and liabilities in foreign currencies translated into VND as at 31
As at 31 December 2023
December 2023:
EUR +2.00% 533
EUR USD Gold Other foreign EUR -2.00% (533)
equivalent equivalent equivalent currencies equivalent Total USD +2.00% 78,539
VND million VND million VND million VND million VND million
USD -2.00% (78,539)
Assets SJC +5.00% 2,730
Cash, gold and gemstones 195,794 1,207,300 53,787 493,974 1,950,855 SJC -5.00% (2,730)
Balances with the State Bank 6,275 1,881,381 - 309,142 2,196,798
45.3 Liquidity risk
Due from and loans to other
91,351 7,315,174 - 1,386,452 8,792,977
credit institutions Liquidity risk is the risk which the Bank and its subsidiaries have difficulties in meeting the obligations
Loans to customers - gross - 12,920,349 14,459 1,698,140 14,632,948 of financial liabilities. Liquidity risk occurs when the Bank and its subsidiaries cannot afford to settle
debt obligations at the due dates in the normal or stress conditions. To manage the liquidity risk
Investment securities - gross - 605 - 10,838 11,443
exposure, the Bank and its subsidiaries have diversified the mobilization of deposits from various
Fixed assets - 39,139 - 107,301 146,440 sources in addition to its basic capital resources. In addition, the Bank and its subsidiaries have
Other assets - gross 1,405 1,306,596 - 39,590 1,347,591 established policy for control of liquidity assets flexibly; monitor the future cash flows and daily
Total assets 294,825 24,670,544 68,246 4,045,437 29,079,052 liquidity. The Bank and its subsidiaries have also evaluated the estimated cash flows and the
availability of current collateral assets in case of obtaining more deposits.
Liabilities
Due to and borrowings from The maturity term of assets and liabilities is the remaining period of assets and liabilities as
8 5,811,675 - 250 5,811,933 calculated from the statement of financial position date to the settlement date in accordance with
other credit institutions
contractual terms and conditions.
Due to customers 161,324 12,454,110 - 1,560,714 14,176,148
Derivatives and other The following assumptions and conditions are applied in the analysis of maturity of the Bank and its
71,478 957,479 - 811,158 1,840,115
financial liabilities subsidiaries’ assets and liabilities:
Grants, entrusted funds and
loans exposed to risks
- - - 323,147 323,147 » Balances with the State Banks are classified as demand deposits which include compulsory
deposits;
Valuable papers issued - 5 - - 5
» The maturity term of investment securities - listed debt securities is considered within one (1)
Other liabilities 28,712 538,600 - 118,663 685,975
month because of their high liquidity; investment securities - equity securities is considered
Total liabilities 261,522 19,761,869 - 2,813,932 22,837,323 as from one (1) to three (3) months; maturity term of investment securities - unlisted debt
Foreign exchange position securities and special bond issued by VAMC is calculated based on the maturity date of each
33,303 4,908,675 68,246 1,231,505 6,241,729
on-balance-sheet kind of securities;
Foreign exchange position
(32,508) (493,386) - (127,861) (653,755)
off-balance-sheet
Foreign exchange position
795 4,415,289 68,246 1,103,644 5,587,974
on and off-balance-sheet

174 2023 ANNUAL REPORT www.sacombank.com.vn 175

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

45. MARKET RISK (CONTINUED)

Total
VND million

7,545,270

49,413,029
699,488,404
12,848,045

19,328

628,655,796
70,832,608
50,332,971

482,731,122

37,950,111
89,251,513

510,744,394
97,014

91,459
7,269,440

323,147

28,992,491
50,534,866
45.3 Liquidity risk (continued)

» The maturity term of debts owed to the Government and the SBV; grants, entrusted funds and
loans exposed to risks; valuable papers issued; due from and loans to other credit institutions,

Above
5 years
VND million

108,203
-

144,688,494

824,468
-

143,864,026
-

107,178,680

94,162
31,498,613

16,400
97,014

-
5,805,984

264,621

444,076
5,209
loans and advances to customers is determined based on the maturity date as stipulated in
contracts. The actual maturity term may be altered because loan contracts may be extended;
» The maturity term of long-term investments is considered as more than five (5) years because
these investments do not have specific maturity date;

1 to 5
years
VND million

3,059,844
108,562,321
-

15,707

20,332,815
88,229,506
-

70,553,195

894,632
33,608,845

9,985,916
-

-
1,340,437

52,066

8,969,148
415,346
» The maturity term of due to and borrowings from other credit institutions; derivatives, other
financial liabilities and customer deposits are determined based on features of these items
or the maturity date as stipulated in contracts. Vostro account and demand deposits are
transacted as required by customers, and therefore, classified as current accounts. The

3 to 12
months
VND million

3,044,596
180,746,581
-

2,499

111,757,352 225,080,999
(16,246,190) (44,334,418)
139,942

172,015,193

1,139,472
5,439,578

197,949,293
-

-
107,272

6,460

16,977,400
9,005,875
maturity term of borrowings and term deposits is determined based on the maturity date in

Current
contracts. In practice, these amounts may be rolled over, and therefore, they may last beyond
the original maturity date;

» The maturity term of fixed assets is determined based on the remaining useful life of assets.

1 to 3
months
VND million

1,597,876
95,511,162
-

693
765,342

92,582,338

3,377,927
556,074

101,490,749
-

-
9,532

2,443,645
4,444,338
The following table presents the Bank and its subsidiaries’ assets and liabilities by relevant maturity
based on the remaining period calculated as at 31 December 2023. In fact, these amounts may be
rotated, and therefore, they last beyond the original maturity date.

Up to 1
month
VND million

7,545,270

39,301,755
153,189,553
12,848,045

429

270,660,162
(117,470,609)
49,427,687

25,912,178

32,443,918
18,148,403

201,302,036
-

91,459
6,215

158,222
36,664,098
Up to 3
months
VND million

15,031
3,520,503
-

-
3,520,503
-

3,505,472

-
-

-
-

-
-

-
-
Overdue
Above 3
months
VND million

2,285,724
13,269,790
-

-
13,269,790
-

10,984,066

-
-

-
-

-
-

-
-
Long-term investments - gross
MARKET RISK (CONTINUED)

Debts owed to the Government

Derivatives and other financial

Investment securities - gross
Balances with the State Bank

Grants, entrusted funds and

Due to and borrowings from
Due from and loans to other
Liquidity risk (continued)

Loans to customers - gross

Cash, gold and gemstones

other credit institutions

Valuable papers issued

loans exposed to risks
Other assets - gross
credit institutions

Due to customers

Net liquidity gap

Other liabilities
Total liabilities
Fixed assets

Total assets

and the SBV

Liabilities

liabilities
Assets
45.3
45.

176 2023 ANNUAL REPORT www.sacombank.com.vn 177

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

45. MARKET RISK (CONTINUED) 47. SUPPLEMENTAL NOTES ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES

45.4 Market price risk On 6 November 2009, the Ministry of Finance issued Circular No. 210/2009/TT-BTC providing guidance
for the adoption in Vietnam of the International Financial Reporting Standards on presentation and
Except for the assets and liabilities presented above, the Bank and its subsidiaries have no other disclosures of financial instruments (“Circular 210”) which is effective for financial years beginning
market price risks which have risk level accounting for 5% or more of net profit or the value of on or after 1 January 2011.
assets, liabilities accounting for 5% or more of total assets. The Circular 210 only provides for the presentation and disclosures of financial instruments;
therefore, the concepts of financial assets, financial liabilities and related concepts are applied solely
46. EXPENDITURE, OPERATING LEASE COMMITMENTS AND FIDUCIARY ASSETS for the supplemental presentation. Assets, liabilities and equity of the Bank and its subsidiaries have
been recognized and measured in accordance with Vietnamese Accounting Standards, Vietnamese
46.1 Expenditure commitments Accounting System for Credit Institutions, the official approval guidance of the State Bank of Vietnam
for the Post-merger Restructuring Plan and the Bank’s proposals for the financial regimes and
Ending balance Beginning balance resolutions in the Restructuring Plan in relation to accrued interest receivables, VAMC’s special
VND million VND million bonds, bad debts, doubtful assets and investment securities during the restructuring period and the
Construction costs and office equipment acquisition 441,985 615,281
statutory requirements relevant to the preparation and presentation of the consolidated financial
statements.
46.2 Operating lease commitments Financial assets

Financial assets of the Bank and its subsidiaries within the scope of Circular 210 comprise cash,
Ending balance Beginning balance
VND million VND million
gold, gemstones, balances with the State Bank, due from and loans to other credit institutions,
loans and advances to customers, trading and investment securities, receivables and other assets
Operating lease commitments 2,654,616 2,905,296 under currency derivative contracts.
In which:
According to Circular 210, financial assets are classified appropriately, for the purpose of disclosure
- Due within one year 473,091 458,012 in the consolidated financial statements, into one of the following categories:
- Due from one to five years 1,624,780 1,737,681 » A financial asset at fair value through profit or loss:
- Due after five years 556,745 709,603 Is a financial asset that meets either of the following conditions:

a) It is classified as held-for-trading. A financial asset is classified as held-for-trading if:

– It is acquired or incurred principally for the purpose of selling or repurchasing it in the
near term; or

– There is evidence of a recent actual pattern of short-term profit-taking; or

– It is a derivative (except for a derivative that is a financial guarantee contract or a designated

and effective hedging instrument).

b) Upon initial recognition, it is designated by the Bank and its subsidiaries as at fair value
through profit or loss.

178 2023 ANNUAL REPORT www.sacombank.com.vn 179

 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
as at 31 December 2023 and for the year then ended
B05/TCTD-HN

47. SUPPLEMENTAL NOTES ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONTINUED) 47. SUPPLEMENTAL NOTES ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONTINUED)
Financial assets (continued) Financial liabilities
» Held-to-maturity investments: Financial liabilities of the Bank and its subsidiaries within the scope of Circular 210 consist of Debts
owed to the Government and the SBV, due to and borrowings from other credit institutions, customer
Are non-derivative financial assets with fixed or determinable payments and fixed maturity that the deposits, grants, entrusted funds and loans exposed to risks, valuable papers issued, payables and
Bank and its subsidiaries have the positive intention and ability to hold to maturity other than: other liabilities under currency derivative contracts.
a) Those that the Bank and its subsidiaries upon initial recognition designated as at fair value According to Circular 210, financial liabilities are classified appropriately, for the purpose of
through profit or loss; disclosure in the consolidated financial statements, into one of the following categories:
b) Those that the Bank its subsidiaries designate as available for sale; » A financial liability at fair value through profit or loss:
c) Those that meet the definitions of loans and receivables. Is a financial liability that meets either of the following conditions:
» Loans and advances to customers and receivables: a) It is classified as held-for-trading. A financial liability is classified as held-for-trading if:
Are non-derivative financial assets with fixed or determinable payments that are not quoted in an – It is acquired or incurred principally for the purpose of selling or repurchasing it in the
active market other than: near term; or
a) Those that the Bank and its subsidiaries intend to sell immediately or in the near term, which – There is evidence of a recent actual pattern of short-term profit-taking; or
shall be classified as held-for-trading, and those that the Bank and its subsidiaries upon
initial recognition designates as at fair value through profit or loss; – It is a derivative (except for a derivative that is a financial guarantee contract or a designated
b) Those that the Bank and its subsidiaries upon initial recognition designated as available-for- and effective hedging instrument).
sale; or b) Upon initial recognition it is designated by the Bank and its subsidiaries as at fair value
c) Those for which the holder may not recover substantially all of its initial investment, other through profit or loss.
than because of credit deterioration, which shall be classified as available for sale. » Financial liabilities at amortized cost:
» Available-for-sale assets: Financial liabilities which are not categorised as at fair value through profit or loss will be classified
Are non-derivative financial assets that are designated as available-for-sale or are not classified as: as financial liabilities at amortised cost.
a) Loans and receivables; Offsetting financial assets and liabilities
b) Held-to-maturity investments; Financial assets and financial liabilities are offset and reported at the net amount in the consolidated
statement of financial position if, and only if, the Bank and its subsidiaries have an enforceable legal
c) Financial assets at fair value through profit or loss. right to offset financial assets against financial liabilities and the Bank and its subsidiaries have
intention to settle on a net basis, or the realization of the assets and settlement of liabilities is made
simultaneously.
Fair value of financial instruments
The fair value of cash and short term deposits approximate to their carrying value due to their short
term maturity.

180 2023 ANNUAL REPORT www.sacombank.com.vn 181

182
47. SUPPLEMENTAL NOTES ON FINANCIAL ASSETS AND FINANCIAL LIABILITIES (CONTINUED)

Carrying amount and fair value of financial assets and financial liabilities

The carrying amount and fair value of the Bank and its subsidiaries’ financial instruments as at 31 December 2023 are presented as below:

Carrying amount
Held to Other assets

2023 ANNUAL REPORT

Trading maturity Loans and Available for and liabilities at Total
securities securities receivables sale securities amortized cost book value Fair value (*)
VND million VND million VND million VND million VND million VND million VND million
Financial assets
Cash, gold and gemstones - - - - 7,545,270 7,545,270 7,545,270
Balances with the State Bank - - - - 12,848,045 12,848,045 12,848,045
Due from and loans to other
- - 218,570 - 50,114,401 50,332,971 (*)
credit institutions
as at 31 December 2023 and for the year then ended

Loans to customers - - 475,169,108 - - 475,169,108 (*)

Available-for-sale securities - - - 22,549,749 - 22,549,749 (*)
Held-to-maturity securities - 52,086,096 - - - 52,086,096 (*)
Other long-term investments - - - 82,642 - 82,642 (*)
Other financial assets - - - - 42,979,539 42,979,539 (*)
- 52,086,096 475,387,678 22,632,391 113,487,255 663,593,420
Financial liabilities
Debts owed to the Government
- - - - 19,328 19,328 (*)
and the SBV
Due to and borrowings from other
- - - - 37,950,111 37,950,111 (*)
credit institutions
Due to customers - - - - 510,744,394 510,744,394 (*)
Derivatives and other financial liabilities 91,459 - - - - 91,459 (*)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

Grants, entrusted funds and loans

- - - - 323,147 323,147 (*)
exposed to risks
Valuable papers issued - - - - 28,992,491 28,992,491 (*)
Other liabilities - - - - 45,608,558 45,608,558 (*)
91,459 - - - 623,638,029 623,729,488
(*) Because Vietnamese Accounting Standards and Accounting System for Credit Institutions do not have specific guidance on the fair
B05/TCTD-HN

value determination, the fair value of these items cannot be determined.

49.
48.

Accountant
JPY

LAK
CAD
SGD
GBP
CHF

NZD
USD

THB
AUD
EUR

Prepared by:

29 March 2024
SJC gold
SBJ gold

Mr. Luu Van Hoa

Ho Chi Minh City, Vietnam

Bank and its subsidiaries.
as at 31 December 2023 and for the year then ended

Reviewed by:

Chief Accountant
Mr. Huynh Thanh Giang
EVENTS AFTER THE STATEMENT OF FINANCIAL POSITION DATE

15,318
706
1.18
16,513
18,321
18,400
171,84
28,600
30,894
26,911
24,190
5,900,000
7,320,000
VND
31 December 2023
EXCHANGE RATES OF APPLICABLE FOREIGN CURRENCIES AGAINST VND
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)

Approved by:

General Director
Mrs. Nguyen Duc Thach Diem

www.sacombank.com.vn
14,826
690
1.37
16,063
17,468
17,627
179,34
25,601
28,440
25,222
23,620
5,100,000
6,580,000
VND
31 December 2022
would require adjustments or disclosures to be made in the consolidated financial statements of the
There were no significant events occurring after the statement of the financial position date which
B05/TCTD-HN

183
 SUSTAINABLE
DEVELOPMENT
REPORT

Scan the QR code to

view and download
Sacombank's 2023
Sustainable Development Report
 INDEPENDENT LIMITED ASSURANCE STATEMENT
ON SELECTED SUBJECT MATTERS IN SUSTAINABILITY REPORT
THE SUBJECT MATTER

Reference: 11635452/68161458 Our limited assurance engagement was performed for the Subject Matter listed in the table below, as presented in SR2023:

GRI Standards
Material Matter Subject Matter Scope
To: The Shareholders Disclosure
of Saigon Thuong Tin Commercial Joint Stock Bank
a. Total number of employees, and a breakdown
of this total by gender and by region;
CONCLUSION b. Total number of:
› Official employees, and a breakdown by Saigon Thuong Tin
Based on our procedures and the evidence obtained, we are not aware of any material modifications that should Employees GRI 2-7 gender and by region; Commercial Joint
be made to the selected Subject Matters as specified below and presented in Saigon Thuong Tin Commercial Joint › Probationary employees, and a breakdown Stock Bank
Stock Bank’s Sustainability Report for the year ended 31 December 2023, in order for it to be in accordance with by gender and by region;
the Criteria defined below. › Internee, and a breakdown by gender and by
region.
SCOPE
a. Number and rate of new employee hires
Ernst & Young Vietnam Limited (“EY” or “We”) was engaged by Saigon Thuong Tin Commercial Joint Stock Bank during the reporting period, by age group,
(“the Bank”) to perform a ‘limited assurance engagement’, as defined by International Standards on Assurance New employee Saigon Thuong Tin
gender and region.
Engagements (“ISAE”) 3000 Revised, Assurance Engagements other than Audits or Review of Historical Financial hires and employee GRI 401-1 Commercial Joint
b. Number and rate of employee turnover
Information on selected Subject Matters ("Subject Matter") included in the Bank’s Sustainability Report for the turnover Stock Bank
during the reporting period, by age group,
year ended 31 December 2023 (“SR2023”). gender and region.

a. Number of employees that took parental

leave, by gender. Saigon Thuong Tin
Parental leave GRI 401-3 b. Number of employees that returned to work Commercial Joint
in the reporting period after parental leave Stock Bank
ended, by gender.

Saigon Thuong Tin

Performance Percentage of employees receiving regular
GRI 404-3 Commercial Joint
process assessment performance and career development reviews.
Stock Bank

a. Percentage of individuals within the

organization’s governance bodies in each of
the following diversity categories:
› Gender;
› Age group: under 30 years old, 30-50 years
Diversity of Saigon Thuong Tin
old, over 50 years old;
governance bodies GRI 405-1 Commercial Joint
b. Percentage of employees per employee
and employees Stock Bank
category in each of the following diversity
categories:
› Gender;
› Age group: under 30 years old, 30-50 years old,
over 50 years old.

The scope of our work was limited to the Subject Matter presented in the SR2023 and did not include coverage
of data sets or information underlying the Subject Matter and related disclosures; nor did it include information
reported outside of the SR2023, comparisons against historical data, or management’s forward-looking
statements.

186 2023 ANNUAL REPORT www.sacombank.com.vn 187

 INDEPENDENT LIMITED ASSURANCE STATEMENT
ON SELECTED SUBJECT MATTERS IN SUSTAINABILITY REPORT
(continued)
Reference: 11635452/68161458

CRITERIA APPLIED BY THE BANK A limited assurance engagement consists of making We also performed such other procedures as we
enquiries, primarily of persons responsible for considered necessary in the circumstances.
In preparing the Subject Matter mentioned above, the We believe that the evidence obtained is sufficient and preparing the Subject Matter and related information,
Bank applied following Criteria: appropriate to provide a basis for our limited assurance and applying analytical and other appropriate INHERENT LIMITATIONS
conclusions. procedures.
Inherent limitations of limited assurance
Global Reporting Initiative Our procedures included: engagement include use of judgment and selective
OUR INDEPENDENCE AND QUALITY MANAGEMENT
Sustainability Reporting testing of data, which means that it is possible
» Gaining an understanding of the Bank's business,
Standards (‘GRI Standards’) We have maintained our independence and confirm the fraud, error or non-compliance may occur and
internal processes and approach to sustainability;
that we have met the requirements of the Code of not be detected in the course of performing the
Ethics for Professional Accountants issued by the » Conducting interviews with key personnel and engagement. Accordingly, there is some risk that a
The Bank’s relevant policies material misstatement of the Subject Matter may
International Ethics Standards Board for Accountants, collating evidence to understand the Bank's process
and procedures remain undetected. Further, our limited assurance
and have the required competencies and experience to for reporting Subject Matter and disclosures,
conduct this assurance engagement. including inquiring regarding risks of misstatement engagement is not designed to detect fraud or error
and quality controls to address risks; that is immaterial.
THE BANK’S RESPONSIBILITIES We also applies International Standard on Quality
Management 1, Quality Management for Firms that » Understanding policies and procedures of the Bank OTHER MATTERS
The Board of Management of the Bank is responsible Perform Audits or Reviews of Financial Statements, that are relevant to the Subject Matter;
for selecting the Criteria, and for presenting the or Other Assurance or Related Services engagements, The maintenance and integrity of the Bank’s website
» Conducting limited assurance procedures over the
Subject Matter in accordance with that Criteria, in which requires that we design, implement and operate is the responsibility of the Board of Management
Subject Matter and disclosures, including:
all material respects. This responsibility includes a system of quality management including policies of the Bank. Our procedures did not involve
establishing and maintaining internal controls, or procedures regarding compliance with ethical › Undertaking analytical procedures to support consideration of these matters and, accordingly,
maintaining adequate records and making estimates requirements, professional standards and applicable the reasonableness of the metric data; we accept no responsibility for any changes to the
that are relevant to the preparation of the legal and regulatory requirements. Subject Matter and related disclosures, the SR2023 or
Subject Matter, such that it is free from material › Checking that the calculation Criteria have to our independent limited assurance report that may
misstatement, whether due to fraud or error. DESCRIPTION OF PROCEDURES PERFORMED been applied as per the methodologies for the have occurred since the initial date of presentation
Subject Matter within the report; on the Bank’s website.
OUR RESPONSIBILITIES Procedures performed in a limited assurance
› Identifying and testing assumptions supporting RESTRICTED OF USE
engagement vary in nature and timing from, and
calculations;
Our responsibility is to express a conclusion on the are less in extent than for a reasonable assurance
presentation of the Subject Matter based on the engagement. Consequently, the level of assurance › Testing, on a sample basis, underlying source This report is intended solely for the information
evidence we have obtained. obtained in a limited assurance engagement is Information to check accuracy of the metric and use of Saigon Thuong Tin Commercial Joint
substantially lower than the assurance that would data; and Stock Bank and is not intended to be and should
We conducted our engagement in accordance with the have been obtained had a reasonable assurance not be used by other party. We do not accept or
International Standard for Assurance Engagements engagement been performed. Our procedures were › Performing recalculations of performance assume liability to any party other than the Board
Other Than Audits or Reviews of Historical Financial designed to obtain a limited level of assurance on metrics using input data. of Management of the Bank.
Information (‘ISAE 3000’) as issued by the International which to base our conclusion and do not provide
Auditing and Assurance Standard Board, and the all the evidence that would be required to provide a
terms of reference for this engagement as agreed reasonable level of assurance. Ernst & Young Vietnam Limited
with the Bank on 15 March 2024. Those Standards
require that we plan and perform our engagement to Although we considered the effectiveness of
express a conclusion on whether we are aware of any management’s internal controls when determining the
material modifications that need to be made to the nature and extent of our procedures, our assurance
Subject Matter in order for it to be in accordance with engagement was not designed to provide assurance
the Criteria, and to issue a report. The nature, timing, on internal controls. Our procedures did not include
and extent of the procedures selected depend on our testing controls or performing procedures relating to Nguyen Phuong Nga
judgement, including an assessment of the risk of checking aggregation or calculation of data within IT Deputy General Director
material misstatement, whether due to fraud or error. systems. Certificate No. 0763-2024-004-1
Ho Chi Minh City, Vietnam
31 March 2024

188 2023 ANNUAL REPORT www.sacombank.com.vn 189

 SUSTAINABLE DEVELOPMENT REPORT INTRODUCTION

OVERVIEW OF SD REPORT

This report presents the contents of Environment -

Society - Governance guide by GRI standards – Core
options. The GRI Standards are a set of guidelines for
organizations to provide transparent information on
their contributions and contribution commitments
to Sustainable Development Goals through details on
their economic, social, and environmental impacts and
how they manage these impacts.

Apart from a general introduction to GRI standards

(GRI 1), the information disclosure contents include:

General information about the organization (organization introduction and The reporting contents under the GRI standards mentioned above are mapped with GRI’s topics in the GRI
GRI 2 reporting-related contents; business performance and employees; governance content index.
(GRI 201 – 207)
structure; strategy; policy);
Besides, our sustainable development report presents our commitment to sustainability through 9
Information for identifying and managing potential topics (material, energy, water, sustainable development goals (SDGs) of the United Nations and specific actions to address areas identified
GRI 3 biodiversity, emissions, waste, supplier environmental assessment); as potential topics by Sacombank.
(GRI 301 – 308)

Information for contents relating to managing employment; labor/management

GRI 4 relations; occupational health and safety; training and education; diversity and equal
(GRI 401 – 418) opportunity; non-discrimination; freedom of association and collective bargaining;
child labor; forced or compulsory labor; security practices; rights of indigenous
peoples; local community; supplier social assessment; public policy; customer health
and safety; marketing and labeling; customer privacy.

190 2023 ANNUAL REPORT www.sacombank.com.vn 191

 SUSTAINABLE DEVELOPMENT REPORT INTRODUCTION
(continued)
Based on GRIs and SDGs, Sacombank addresses ESG through four main focuses in the Report:

1 FOCUS 1
Sustainable growth
3 FOCUS 3
Employee as a key growth driver

9 SUSTAINABLE DEVELOPMENT » Sacombank believes that sustainable development

should be demonstrated for a long time, with
» We believe that sustainable development-
related orientations and plans cannot be
GOALS (SDGs) OUTLINED BY THE the overarching goal of creating benefits for achieved without a good work ethic, professional
shareholders; contributing positively to the skills, and dedication from employees.
UNITED NATIONS national economy; understanding, accompanying,
and ensuring the highest benefits for customers; » Sacombank allocates appropriate employees
and contributing to prosperous communities. At with a focus on human resources development
Sacombank, we mobilize all resources to achieve to enhance digital capabilities and digital human
and exceed business targets assigned by the resources towards digital goals based on the
Shareholders Committee. This goal can be only Leadership Team’s orientations, governance,
achieved by deeply understanding customers’ and administration within a friendly working
demand, ensuring product & service consistency environment. Our talent attraction strategy
and quality, optimizing cost management and ensures stable and sustainable development.
internal resources. Sacombank offers equal learning and promotion
opportunities for all individuals regardless of
» We always pay special attention to weaker segments gender, religion, or social background.
of the community, providing better facilities, learning
opportunities, and an improved quality of life. Each » Sacombank continuously improves employee
year, Sacombank sets up specific action plans to protect welfare and benefits to retain and attract talent.
employee rights. Our goal is to promote initiative and
creativity in the activities of the Trade Union, taking
care of and protecting the rights of union members
and employees toward sustainable employment and
improved living standards.

2 FOCUS 2
Customer centricity
4 FOCUS 4
Transparent and effective
management is the foundation
for sustainable development
» In all business aspects, Sacombank always » Sacombank believes that a transparent and
promotes a customer-centric approach, producing effective management system is a guideline for
products and services that align with customer sustainable development. Ensuring 3 streams
demands. of organizational structure: Business - Support
- Supervision. We prioritize improving the risk
Goals not addressed in this report include: No Poverty; Zero Hunger; Clean Water and Sanitation; Industry, » To serve existing customers, Sacombank management system according to advanced
Innovation, and Infrastructure; Reduced Inequality; Life Below Water; Life on Land; Partnerships for the Goals. continuously studies, and researches ways international standards.
to improve customer experience through the
application of advanced technologies. We receive » By strictly complying with all legal regulations and
customer feedback and handle complaints across ensuring operational safety, Sacombank has been
multiple channels. We always commit to ensuring building and applying risk management policies and
customer data protection in all cases. procedures to prevent bribery, money laundering,
and financial crimes, adhering to Vietnamese
regulations and international standards.

192 2023 ANNUAL REPORT www.sacombank.com.vn 193

 SUSTAINABLE DEVELOPMENT REPORT INTRODUCTION
(continued)

REPORTING STANDARDS
Overall, the approach of this report is as follows: The report is made according to GRI standards – Core options, including the following principles:

Accuracy Comprehensiveness
The United Nations A focus on Sacombank’s
Sustainable Development Reporting contents under GRI standards sustainable development
Goals (SDGs) orientation

Balance Sustainability context

GRI 201 Economic Performance
Sustainable Growth
GRI 202 Market presence
Customer-centricity Clarity Timeliness
GRI 203 Indirect economic impact

Compatibility Verification

GRI 301 Materials

GRI 302 Energy

Transparent and REPORTING SCOPE
GRI 303 Water and Effluents effective governance as
a solid foundation for This report presents the sustainable development contents of Sacombank, including 01 Headquarter, 109 branches,
sustainable development 443 transaction offices, 4 subsidiaries in Vietnam, and 2 subsidiary banks, 14 branches abroad (Laos, Cambodia).
GRI 305 Emissions

GRI 306 Waste

GRI 401 Employment

GRI 402 Labor/Management Relations

Sustainable growth
GRI 403 Occupational Health and Safety
Employees as a key
growth driver
GRI 404 Training and Education

GRI 405 Diversity and equal opportunity

The information included in the Sustainable Development Report 2023, unless otherwise noted, pertains to
financial statements from 1 January 2023 to 31 December 2023. The report is available alongside other information
disclosures on the Sacombank website.

194 2023 ANNUAL REPORT www.sacombank.com.vn 195

 HIGHLIGHTS IN 2023

SUSTAINABLE GROWTH

SEPARATED PROFIT BEFORE TAX

9,283 VND BILLION

DONATING OVER 4.7 VND BILLION

to build COMMUNITY CULTURAL HOUSES

CONSOLIDATED PROFIT BEFORE TAX after 6 stages of the

9,595
“Steps for Community” program

VND BILLION CORPORATE INCOME TAX TOTAL SALARY/REMUNERATION

1,876
FOR EMPLOYEES

6,870
equal to 101% of the plan assigned by the
Shareholder Committee VND BILLION
VND BILLION

CUSTOMER-CENTRICITY EMPLOYEE AS A KEY GROWTH DRIVER TRANSPARENT AND EFFECTIVE

MANAGEMENT AS A SOLID FOUNDATION
FOR SUSTAINABLE DEVELOPMENT

SUCCESSFULLY AND EFFECTIVELY

OFFICIALLY LAUNCHING A NEW
99%
OF MANAGERS ARE PROMOTED AND In collaboration with BMC Software, Sacombank
OPERATING
GENERATION DIGITAL BANKING APPOINTED FROM INTERNAL RESOURCES participated in the campaign to plant an additional
SMART TELLER MACHINES
WEBSITE USING ADOBE EXPERIENCE 100 trees as committed by BMC and Reforest’Action.
STM MANAGER (AEM CLOUD) IN VIETNAM
EMPLOYEE SATISFACTION SURVEYS Operating costs continue to be managed
CONDUCTED SINCE 2014 appropriately and smoothly, reducing fixed
costs and strictly controlling variable costs to
improve labor productivity

EMPLOYEE NET PROMOTER SCORE (E-NPS)

Deployed and applied risk management
SURVEY WILL BE CONDUCTED IN 2024
standards according to Basel III and
implementing international financial reporting

99.17%
standards (IFRS9)
ENHANCING CUSTOMER EXPERIENCE ON
THE WEBSITE, INCREASING TRAFFIC TO THE AVERAGE INCOME OF EMPLOYEES IN 2023:

29,880,000
WEBSITE TO

9,316,856 Customer satisfaction with Sacombank’s

service experience through various interaction
channels (phone, Chat Agent, email, QR code, VND/MONTH,
2,263,570 PAGE VIEWERS Chatbot, Facebook)
A 15% INCREASE FROM 2022

196 2023 ANNUAL REPORT www.sacombank.com.vn 197

 SUSTAINABLE DEVELOPMENT ORIENTATION

We believe that Sacombank’s sustainable development is in line with the sustainable development goals of the
world and Vietnam. We identify our role in creating a prosperous society and protecting the planet through positive
contributions to economic growth, creating added values for shareholders, accompanying customers, creating
jobs, protecting and supporting vulnerable people, and taking positive actions in environmental protection. This
sustainable development orientation is presented in our business, financial, market, human resource, administration,
and technology strategies as follows:

STAKEHOLDER MANAGEMENT
Stakeholders Issues of concern Sacombank’s actions Approach Frequency

» Sacombank has launched a loan package » A team of consultants and bank tellers Working
of VND 30,000 billion with significantly directly contacts customers days
» Image and reputation of the bank reduced interest rates to support individual
GIVEN THE SUSTAINABLE customers and a loan package of VND 11,000
» Customer-centricity billion with preferential interest rates to » Maintaining a 24/7 customer service center
DEVELOPMENT GOALS, WE ARE support corporate customers. and hotline
» Diverse products and services to meet
AWARE OF THE IMPORTANCE customer needs » Researching on improving customer » Enabling customer contact channel on the website
OF STAKEHOLDERS INCLUDING » Good service quality experience through data and technology » This channel has recorded: Customer 24/7
SHAREHOLDERS, CUSTOMERS, CUSTOMERS Relationship Management (CRM)
» Quick response to requests and complaints » Supplying diverse products and services to
EMPLOYEES, GOVERNMENT, meet customer needs » Responding to customer feedback: Tel/email:
» Fair treatment of customers
SUPPLIERS, AND COMMUNITIES. » In 2023, Sacombank has sent 1,627,025 [email protected]
» Good experience with customer desk and surveys via channels and received 140,633
SACOMBANK ALWAYS STRIVES TO online services feedback. Therefore, Sacombank can
STUDY THE DESIRES OF PARTNERS proactively provide prompt responses to
» Customer data privacy
THROUGH CONVERSATIONS, customer feedback » Customer satisfaction surveys Annual
EXCHANGES, SURVEYS AND » Improving customer data privacy
INCORPORATES THESE INSIGHTS
INTO STRATEGY, GOALS, AND » Open and transparent communication
» Implementing full, transparent, and timely
BEHAVIOR. IT IS ALSO REFLECTED » Fair treatment and guaranteeing information disclosure and reports related » AGM
INVESTOR/ shareholders’ benefits to shareholders’ interests
IN THE EFFECTIVENESS OF » Meeting investors in person Annual
SHAREHOLDERS
STAKEHOLDER ENGAGEMENT. » Promoting sustainable growth, completing » Maximizing added value to investors and » Sacombank’s website
profit targets assigned by the Shareholders shareholders
Committee

» Measuring employee satisfaction Annual

» Training programs Continuous

» Ensuring equal training opportunities for

» Equality in the workplace » Hello CEO (Tel + email: aloCEO@sacombank.
employees
com) to receive opinions/initiatives for
» Remuneration policy and promotion
EMPLOYEES » Building a transparent, attractive, and development-safety-sustainability
opportunities
competitive salary & bonus policy
» MS Teams: Group work, meetings, online
» Good employee welfare policy Continuous
» Improving employee rights and welfare training, etc.
» Viva Engage (Yammer): Experience sharing
professional knowledge and skills, etc.
» Digital library: E-learning curriculum for employees

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 SUSTAINABLE DEVELOPMENT ORIENTATION (continued)

Stakeholders Issues of concern Sacombank’s actions Approach Frequency

» Participating in conferences and seminars

Many
organized by the Government, Ministries/
times/year
» Ensuring plans and procedures align with Departments/Industries.
current legal regulations
» Compliance with legal regulations and » Quickly updating and apprehending new » Organizing dialogues with Government
local regulations Many
changes in policies and regulations of the agencies to contribute to and improve
GOVERNMENT times/year
» Implementing development orientations Government workshop performance and policy
AGENCIES/STATE
and strategies of the Government » Proactively participating in activities
MANAGEMENT
AGENCIES » Supporting, and advising Government and campaigns of the Government and
» Participating in organizations, associations, Many
agencies to implement policies for Ministries/Departments/Industries
economic forums, etc. times/year
economic development » Engaging in dialogues and contributing
opinions to policy development of the
Government and competent agencies » Reviewing, and evaluating compliance with
Many
regulatory documents of Government
times/year
agencies

» Working with suppliers to meet

requirements of management, complying
with regulations, and implementing no-
harm principles to the environment and
society. » Meeting.
» Promoting fair treatment with all service » Promoting transparency in supplier » Offering price via email When
SUPPLIERS
suppliers evaluation and selection necessary
» Negotiating (if any)
» Implementing a transparent and full
contractor appointment process
» Committing to service quality and origin of
goods

» Organizing volunteering activities for

community benefits and vulnerable people
» Sacombank recruits employees in all areas
» Supporting local economic development across the country where it operates,
» Incorporating with governmental authorities
» Creating employment opportunities for prioritizing a human resource localization
and understanding the expectations of the
COMMUNITY local laborers strategy. Sacombank always offers Continuous
local community
preferential interest rate loan packages to
» Contributing to the improvement of basic support individual and corporate customers, » Community engagement
living standards of local people promoting business and production
activities. Sacombank always prioritizes
selecting local suppliers in the areas where
it operates

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 SUSTAINABLE DEVELOPMENT ORIENTATION (continued)

KEY SECTORS
Identifying key sustainable development sectors helps Sacombank focus on activities that are considered
important to our operation and goals. The identification of key sectors at Sacombank is based on assessing
Sacombank's impact on stakeholders and evaluating these stakeholders' impact on Sacombank. Implemented
by evaluating Sacombank’s influence on stakeholders as well as stakeholders’ influence on Sacombank. Our key
sectors include:

Providing diverse products and services to

meet customer needs SIGNIFICANT ACHIEVEMENTS RELATED TO THE DEVELOPMENT OF ACTIVITIES ALIGNED
Contributions to economic development Improving customer experience via data WITH THE UNITED NATIONS' SDGS THAT SACOMBANK ACCOMPLISHED IN 2023

1
and technology
Connecting to community and social
responsibility Protecting customer data privacy
FOCUS
SUSTAINABLE GROWTH
Promoting sustainable growth Promoting a customer-centric approach
Target Business performance in 2023

Contributions » Total income before tax: VND 9,595 billion, an increase of 51%
to economic compared to the previous year
development » Total costs of stakeholder engagement
› Corporate income tax: VND 1,876 billion.
› Employee salary, bonuses, and allowances: VND 6,870 billion.
» Sacombank has continuously tried to reduce deposit interest
KEY SECTORS rates, creating conditions to lower lending rates by implementing
preferential loan packages to stimulate credit growth, sharing
difficulties with the business community and the economy: Total
deposits increased by 11.3%, credit increased by 10%, capital structure
ensured liquidity safety; lending prioritizes key sectors and supports
production and business activities.
» Investing 1,680 billion Vietnamese dong in projects for rural financial
inclusion and sustainable agricultural transformation
Human resources are the driving force for Transparent and effective management is
development the foundation for sustainable development
Responsibility to » Allocating nearly VND 11 billion to implement the “Sacombank-
the community and Nurturing Dreams” scholarship program, providing additional
society motivation for nearly 4,000 students from disadvantaged
Building an ethical professional, and strong Risk management is the backbone of a backgrounds nationwide.
team while developing capabilities and safe and transparent bank
creating equal development opportunities » A series of the 20th “Spring Warmth” activities brought the joy of Tet
Preventing corruption, money holidays to those facing adversity in 51 cities/provinces of Vietnam,
for each individual
laundering, and financial crime Laos, and Cambodia with a total budget of VND 7.8 billion.
Ensuring a safe working environment » Organizing 6 stages of the walking/jogging tournament named “Steps
Managing resource usage and emissions
Enhancing benefits and welfare policies for the Community”, funding VND 4.7 billion to build community
for employees cultural houses for ethnic minorities.
» Donating VND 1 billion to the fund “For the Poor” in HCMC
» A majority of leaders and employees participate in a blood donation
program named “Sacombank – Sharing from the Heart”, donating
We will continue to further refine our approach to identifying and updating key sectors shortly. thousands of blood units to hospitals and medical facilities.

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 SUSTAINABLE DEVELOPMENT ORIENTATION (continued)

FOCUS 2
CUSTOMER CENTRICITY
FOCUS 3
HUMAN RESOURCE AS A GROWTH DRIVER

Target Business performance in 2023 Target Business performance in 2023

Improving customer » The successful deployment of the STM (Smart Teller Machine) with Building an ethical » 99% of managers are promoted and appointed from internal resources.
experience via data new and advanced financial technology at 4 key branches across 3 and professional » The employee happiness survey in 2022 recorded that 81% of
and technology provinces and cities including Ho Chi Minh City, Da Nang City, and Hanoi team, developing employees reported feeling happy.
City, enables customers to easily use voice-enabled transactions and employee capabilities,
» Implemented 199 professional skills training courses with 17,233
outstanding features such as cash deposit/withdrawal using national and creating fair
participants.
ID cards and instant card issuance. career advancement
opportunities » Implemented 12 E-learning training courses as demanded by the State
» Officially launching a new generation digital banking website by Adobe
Bank of Vietnam or advanced banking units.
Experience Manager (AEM Cloud) in Vietnam with Chatbot integration
to consult and improve online customer service, applying AI to study » 48% of female employees at the staff level.
customer needs and propose appropriate products and services.
» Gaining 99.17% of customer satisfaction on Sacombank’s customer
experience via interactive channels (phone, Chat agent, email, QR
code, Chatbot, Facebook).
» Sacombank’s new website was launched as a multi-channel and
concentrated content management tool. The standard SEO website Enhancing employee » Ensuring periodic health checks (once/year) for 100% of employees.
with 24/7 service, fast access speed helps promote content rights and welfare Staff with special positions will be entitled to regular health checks
personalization through customer behavior. The website is designed twice a year.
by understating the customer journey with a modern and friendly » Safety and hygiene-related plans and measures are fully equipped to
interface, complete and concise content. ensure safety, hygiene, and environmental protection.
» At the end of 2023, Sacombank’s website reached 9,316,856 views » Sacombank strives to build a competitive welfare policy to retain
with 2,263,570 users. talent as well as attract employees from outside
» Average income of employees in 2023: VND 29,880,000/month, up
Providing diverse » Sacombank has continuously innovated its products, services to 15% from 2022
products and provide added value to customers, launching a series of products,
services to meet services with modern and superior utilities including: Flexible fixed
customer needs deposit, unsecured loan based on salary with CIC connection, UniQ
card, Apple Pay, cash withdrawal via VietQR Cash at ATM, American
Express Card.
» In 2023, Sacombank Pay was awarded “HCMC’s typical products and
services” by the HCMC Business Association and Top 50 trusted
products-services by Vietnam Economic Magazine.
» According to Visa International (Asia Pacific) LLC, Sacombank took the
lead in total card transaction volume in 2023.

Protecting customer » Continuously innovating cyber security management systems.

data privacy » In 2023, Sacombank applied a Database Activity Monitoring system
by international standards.
» Sacombank’s employees completed 100% of basic training courses on
information security awareness

204 2023 ANNUAL REPORT www.sacombank.com.vn 205

 SUSTAINABLE DEVELOPMENT ORIENTATION (continued) DETAILED CONTENTS

FOCUS 1: SUSTAINABLE GROWTH

Contributing to economic growth

WE APPLY FLEXIBLE SOLUTIONS TO ACHIEVE BUSINESS GOALS WHILE ENSURING

OPERATIONAL SAFETY.

Identifying economic growth as a guideline for » Continuously promoting community-sourced

4
sustainable development, Sacombank focuses on capital, strengthening business loan customer
implementing core businesses: segment as follows:
FOCUS
» Promoting business model transformation towards Retail banking
TRANSPARENT AND EFFECTIVE GOVERNANCE IS A SOLID FOUNDATION reducing dependence on credit activities and
FOR SUSTAINABLE DEVELOPMENT increasing non-credit income sources. Sacombank
continues strengthening its retail banking SMEs
Target Business performance in 2023 segment by: Enhancing cooperation with economic
organizations, offering diverse banking products Corporate banking
and services, numerous utilities, and distinctive
Strengthening the » In December 2023, Sacombank issued regulations on anti-money banking services for specific customer segments
prevention of bribery, laundering, terrorism financing, and proliferation financing. as regulated by the State Bank of Vietnam. Microfinance
money laundering, » Propagating, strengthening anti-corruption education to all Prioritizing the development of modern banking
and financial crimes Sacombank employees. Sacombank regularly reports anti- services and distribution channels promptly: ATM, Given the goal of risk mitigation in the lending
corruption activities to the Banking Inspection and Supervision online banking service, mobile banking service, program, raising the margin lending interest rate
Agency and the State Bank's Ho Chi Minh City Branch. phone banking. to optimize capital efficiency.

Risk management » Sacombank improves management and administration system

as a backbone of a by international standards, implementing and applying risk
safe and transparent management standards by Basel III standards, carrying out
bank International Financial Reporting Standards 9
» Promoting administrative procedure reform, streamlining business
operations by technology, strengthening IT system stability to
enhance seamless operations for customer engagement.

Strengthening natural » Environmental and social management systems aim to strengthen

resource management the application of international standards to mitigate negative
efficiency and impacts on the environment and community.
emissions » Sacombank has reviewed and adjusted the process of environmental
and social impact assessment and carried out system-wide
expansion.

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 DETAILED CONTENTS (continued)

» Strengthening service, prioritizing service distribution and transaction channels via e-banking system and cards. » Since 2019, Sacombank has been part of the World Bank's Vietnam-Sustainable Agriculture Transformation (VnSAT)
Developing products and services towards a “Simple - Friendly - Outstanding” approach appropriate for every project. A part of the project aims to enable businesses to invest in the production and processing of high-quality rice.
customer segment and geographic region. Products and services are tailored to market trends (convenient, modern, Eligible borrowers are privately-owned enterprises or those transitioning to private ownership, and customers with
safe) and focus on retail development. business plans using resources from eight Mekong Delta provinces, including: An Giang, Can Tho, Dong Thap, Hau Giang,
Kien Giang, Long An, Soc Trang and Tien Giang. The purpose of the loans is to invest in upgrading rice processing plants
» We commit to providing financial products and services towards sustainability, bringing the best quality and equipment, including: Investment expenses, partially or wholly, for rice processing plants include warehouse,
services to all customers nationwide. machinery, equipment, repair and replacement costs related to rice processing production, and costs of return on
investment by the owner’s capital. In addition, upholding the success of The Rural Finance Project III in the 2009-2014
» The extent of service delivery point coverage in rural, remote areas. period which supported thousands of farmers to renew agricultural machinery and improve agricultural product
quality, Sacombank continues to accompany the Rural Finance Project I and II. Accordingly, the loan limit of rural finance
» As of 31 December 2023, Sacombank has: projects and the Vietnam-Sustainable Agriculture Transformation (VnSAT) project continue growing year-on-year.

LOAN LIMIT OF VIETNAM-SUSTAINABLE AGRICULTURE LOAN LIMIT OF RURAL FINANCE PROJECT I, II

TRANSFORMATION (VNSAT) PROJECT Unit: VND billion

552 109
INCLUDING BRANCHES
443 Unit: VND billion

TRANSACTION POINTS TRANSACTION OFFICES

550
1,130
(unchanged compared to 2022)

450
930
» Number of branches and transaction offices opened in commune/town:

Asof
of31
31December
December2023,
2023,Sacombank
Sacombankhas
has552
552transaction
transactionpoints
pointsin
incommunes/wards/towns
communes/wards/towns 350 850
As
nationwide,including
nationwide, including109
109branches
branchesand
and443
443transaction
transactionoffices
offices
2021 2022 2023 2021 2022 2023
Of which: » At the commune/town level: 184 transaction points, including 16 branches and 168 » In 2018, Sacombank financed small corporate customers to boost their business and production activities by
transaction offices (33.3%) shortening the evaluation process and forms to make things convenient for corporate customers.
» At ward level: 368 transaction points, including 93 branches and 275 transaction offices
(66.7%) (the proportion of transaction points at wards increased due to adjustment of 2021 2022 2023
administrative boundaries in provinces from District to Town – operating locations of
transaction points remain unchanged) Outstanding debt Number of Outstanding debt Number of Outstanding debt Number of
(VND billion) customers (VND billion) customers (VND billion) customers

As of 2023, Sacombank has implemented

65,447 2,908 969 4,955 1,532 5,106 1,786
POS MACHINES IN THE MARKET
(up 17% from 2022, reaching We also focus on ensuring operational safety targets:

185,738 POS machines) » Ensuring completion of credit growth targets assigned by the State Bank of Vietnam.

» Improving credit quality with an effective portfolio, focusing on sustainable operations, ensuring effective-
safe-sustainable growth.

» Sacombank, from 2021-2023, has focused on credit extension in compliance with targets of the capital
adequacy ratio.

» We also focus on promoting the digital transformation of credit management to enhance customer experience
and management efficiency of credit risks.

Sacombank is a pioneering bank in developing an Environmental and Social Management System (ESMS). After
nearly a decade of construction and action, ESMS is a useful tool that helps Sacombank manage and monitor
negative impacts on the environment and society through credit activities impact assessment programs.

208 2023 ANNUAL REPORT www.sacombank.com.vn 209

 DETAILED CONTENTS (continued)

Allocated nearly VND 11 billion to implement the

“Sacombank-Nurturing Dreams” scholarship program
Connecting to community and social responsibility to encourage and empower nearly 4,000 students with
difficult circumstances nationwide.

Continuing our community and social activities in recent years, to contribute to a healthy and prosperous
community, creating better educational and employment opportunities for the community, Sacombank has
allocated VND 23 billion for community activities in 2023.

A series of the 20th “Spring Warmth”

activities brought the joy of Tet holidays
to those facing adversity in 51 cities/
provinces of Vietnam, Laos, and Cambodia
with a total budget of VND 7.8 billion.

Organized 6 stages of the walking/jogging tournament

named “Steps for Community”, funding VND 4.7 billion to
build community cultural houses for ethnic minorities.

Kicked off the cross-country tournament named “Running

with Sacombank for Public Health” to connect Sacombank
with local people, promoting fitness and sports movement
to improve community health.

Donating VND 1 billion to the “For the Poor”

fund in HCMC

Sacombank together with Dai-ichi Life Vietnam

allocated VND 1.6 billion to sponsor “Free eye Cooperating with Dai-ichi Vietnam to award 25
surgery and restore the vision” for 1,353 people support packages including treatment costs
A majority of leaders and employees participate in Donated 72,300 5-in-1 vaccine doses to the Ministry with difficult circumstances in 6 provinces including and nutritional gifts worth VND 500 million for
a blood donation program named “Sacombank – of Health to support the national immunization Ca Mau, Binh Dinh, Quang Nam, Kien Giang, Lam pediatric children with cancer at HCMC Oncology
Sharing from the Heart”, donating thousands of program, offering free vaccinations for children in Dong, and Tay Ninh. Hospital, encouraging and motivating them to fight
blood units to hospitals and medical facilities. disadvantaged mountainous areas. against dangerous diseases

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 DETAILED CONTENTS (continued)

» Interactive channels to receive customer feedback CUSTOMER SATISFACTION INDEX

and complaints, as well as areas where services have
FOCUS 2: CUSTOMER CENTRICITY not met requirements
98.72% 98.95% 99.17%
› To promptly and effectively address customer
complaints, Sacombank has established for
Providing diverse products and services to meet customer needs listening to and caring for customers, including
dedicated advisory teams and frontline
With a commitment to customer-centric business operation, Sacombank provides diverse financial and banking transaction officers who directly interact with
services to serve all types of customers from individual customers to corporate customers, from rural to urban customers, a Customer Service Center with a
areas, from children to adults, from ordinary customers to high-class customers, etc. Depending on each type 24/7 hotline operational; the customer feedback
of customer, Sacombank offers appropriate products and services (deposit service; loan service, import-export channel integrated on the website.
financing, guarantee; foreign exchange, currency, international payment, etc.). For specific products, Sacombank
deploys corresponding product policies. › The effectiveness of the customer care channel
is measured by the customer satisfaction
2021 2022 2023
index. Accordingly, customer satisfaction index
Enhancing customer experience from 2021 to 2023 was maintained stably and
improved as follows:
Sacombank’s financial services always aim to enhance » Applying IT to enhance customer experience:
“customer satisfaction”. Therefore, we always Ensuring customer data privacy
encourage customers to give feedback on our products › Sacombank also operates Smart Teller Machine
and services. Sacombank always considers customer (STM) at key branches such as Headquarters and
Tan Son Nhat Golf Course in the Southern region, Ensuring customer data privacy: Assurance of › Sacombank always maintains and upgrades its
feedback and complaints as opportunities to improve
Da Nang branch in the Central Region, and Thu Do customer data privacy helps us gain the absolute trust customer’s data privacy, ensuring information
its product and service quality and strengthen customer
Branch in the Northern region with superior utilities of customers security and privacy.
relations.
such as voice transaction, touch interaction, user-
friendly and modern interface, and ease of use. › Sacombank continuously conducts research › Sacombank, since 2019, has operated its 24/7
Enhancing customer experience via data and
Customers can open an account at STM; deposit/ and issues strict regulations on protecting Security Operations Center (SOC) to detect and
technology.
withdraw cash via card/ID card; open/withdraw/ customer data. Sacombank has so far issued handle threats, cyberattacks on Sacombank’s
close online savings accounts; withdraw money information security regulations and guidance information infrastructure (including database).
using QRcode; issue instant payment cards and documents on the implementation of general
print physical cards, etc. STM is a part of Digizone provisions of personal data protection and › Sacombank has passed assessments under the
under the smart branch project being built by processing, implementing personal data SWIFT Customer Security Program (CSP-SWIFT).
Sacombank for customers to experience new and processing agreements.
modern financial technologies. › In 2023, Sacombank operated a Database
› Sacombank is the first bank to deploy the 3D Activity Monitoring System according to
› Besides STM, Sacombank officially launched a Secure version 2.0 payment security solution, international standards with the consultation
new generation digital banking website by Adobe supporting customers to minimize online and support of IBM.
Experience Manager (AEM Cloud) in Vietnam payment fraud.
– this is the world’s leading digital experience › We believe that apart from timely issued
platform technology using AI, designed around › Sacombank continues consolidating its policies, clearly defined responsibilities,
user journeys and experiences. It features concise information security network and being training, and supervision of the implementation
content, user-friendly and modern interface, certified PCI-DSS for 10 consecutive years of data security regulations of stakeholders are
supporting customers to quickly search and (PCI-DSS is the top data security certification) important factors for our above-mentioned
study information, register a product or service for card data and ISO/IEC 27001:2013 to ensure achievements.
such as “I am looking for”, “Product suggestion”, information security privacy. 2023 was the
“Product comparison” or propose appropriate fourth year Sacombank was certified PCI- › Besides, Sacombank always maintains
content in the “Suggested for you” section, with DSS standards for the Sacombank Pay App. information security awareness training
integrated Chatbot to consult and support online In addition, Sacombank has built its risk for employees. In 2023, 100% of employees
customers. When customers have a demand for management team to review and manage completed basic training courses on information
financial services, they can just leave an email or suspicious transactions and fraud. security awareness
phone number, and Sacombank will contact them
for consultation.

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 DETAILED CONTENTS (continued)

FOCUS 3: HUMAN RESOURCES AS THE GROWTH DRIVER

Core values of Sacombank People include:

Building an ethical and professional team, developing employee capabilities, and

creating fair career advancement opportunities Elegant appearance

We always ensure all Sacombank’s employees comply with ethical standards and the code of conduct. This is
the result of diligent and creative work, a system of patterns and behavior achieved through the learning and Conscientious attitude
communication efforts of members, starting from Sacombank’s business philosophy and responsibility to
Customers, Investors, and the social community. The regulations include 02 contents: (i) Sacombank’s business CORE VALUES
ethics and (ii) Professional Ethics and Code of Conduct of Sacombank’s employees that targets: OF SACOMBANK Professional behavior
PEOPLE
» Completing mission, vision and effectively implementing Sacombank’s core values; Comprehensive knowledge
» Building a professional working environment; recognizing and developing humanistic values; preventing and
mitigating errors and risks; Innovative breakthrough
» Building an image of thoughtful, careful, dedicated, and professional Sacombank employees in the evaluation
and perception of customers, partners, investors, and the social community;

» Establishing the basis for compliance monitoring and implementing sanctions for violations. Elegant appearance Not only creates a good impression but also reflects professional behavior
at work.
Sacombank is aware that a strong corporate culture is one of the key elements in attracting and retaining
talent. Sacombank continuously strives to build a strong corporate image imbued with humanistic elements, Being conscientious at work and in customer service helps increase
Conscientious attitude
contributing to environmental protection and social resource development. Throughout its establishment and personal credibility, thereby earning trust from colleagues and customers.
development journey, Sacombank has built its unique, standardized, creative, and distinct corporate culture.
Always cultivating and improving professional skills/knowledge to meet
This is comprehensively reflected through the ambassadors of culture known as "Sacombank People" and the Comprehensive knowledge
job requirements.
managerial leadership style of Sacombank. Sacombank consistently emphasizes the awareness of individual roles
and responsibility in fostering unity, continuously harnessing strength to overcome challenges, and achieving the Quickly processing transactions, narrowing the gap between customers’
targets and missions assigned by the shareholders and Sacombank’s leaders. Professional behavior
expectations and experience of service quality at Sacombank.

Innovative breakthrough Creating a difference through innovative breakthroughs at work.

We are committed to the target of building a strong

team of professional individuals fully provided with
growth opportunities at Sacombank.

» Sacombank also provides training and re-training

programs for its personnel to ensure that they
possess the necessary professional skills and
knowledge for their respective positions while
upholding ethical standards. The Bank regularly
assesses employee skills and competencies to
ensure that they can master Sacombank’s products
and services. In addition, Sacombank organizes
internal union movements and activities to create
an enthusiastic and cohesive working environment
for its employees.

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 DETAILED CONTENTS (continued)

Ensuring a safe working environment Improving employee rights and welfare

Building and promoting fairness and equality at work: Identifying transparency and democracy as top Implementing the HR survey in 2022 (engaging external partners for TOTAL NUMBER OF EMPLOYEES
priorities at work. objective and transparent results). Accordingly: OVER THE YEARS
» Ensuring equal opportunities for everyone in 17,446 17,378 17,412
recruitment policies and procedures. Ensuring a safe working environment.
SATISFACTION LEVEL

81%
» Implementing clear evaluation criteria for individual
and group work.

» Policies/channels are available for employees to STRUCTURE OF HUMAN

express their opinions in the workplace and in The survey is expected to be
RESOURCES IN 2023
conducted every 2 years.
building the corporate culture, and reflect cases of
non-compliance with ethical standards, fairness, and WITH MORE THAN 52,417,564 2021 2022 2023
Scope of Sacombank
equality regulations. WORKING HOURS
18,659 18,436 18,514
No accident/operational
» Contributed opinions from employee surveys are
disease was recorded at
noted and considered to improve relevant welfare
Sacombank. Structure of human resource
policies in recognition of employees’ contributions and
commitment. by gender

Male 52%
Female 48%
2021 2022 2023
Scopes of Sacombank and subsidiaries

RETIREMENT RATE
Structure of leadership board
OVER THE YEARS
by gender
8.68% 11.42% 7.79%
Male 80%
Female 20%

Structure of human resource

by contract type
2021 2022 2023
Scope of Sacombank
Official employees 98.84%
Probationary employees 0.07% 8% 9.44% 6.49%
Trainee employees 1.09%

Sacombank always ensures fundamental rights for employees as stipulated

by the Labor Code including maternity leave benefits and position assurance.
Regarding male employees whose wives give birth, apart from 5-14 days of 2021 2022 2023
paternity leave stipulated by the Labor Code, they are also entitled to an Scopes of Sacombank and subsidiaries
additional one day off on demand.

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 DETAILED CONTENTS (continued)

Not only should employees be provided with a fair » Sacombank also focused on and strengthened internal
NUMBER OF EMPLOYEES ON The maternity leave policy is applied to all Sacombank’s employees salary and bonus policy, but also appropriate training training through key training programs tailored for
MATERNITY LEAVE OVER THE YEARS including male and female employees in compliance with the Labor Code courses and clear career advancement paths. potential, existing, and newly recruited positions.
and Sacombank’s labor regulations. In 2023: Especially, a series of “Train The Trainer” programs for
» At Sacombank, every individual is guided with internal lecturers were conducted at branches in the
1,108 1,083 1,257 a clear career advancement path as the Bank whole system. This initiative helps units proactively
1,257 EMPLOYEES WERE ENTITLED TO MATERNITY LEAVE prioritizes improving and enhancing the pleasant
and transparent promotion process for employees.
organize training activities to ensure that each
employee is engaged in essential professional skill
849 females 408 males females 67% 33% males 99% of managers are promoted and appointed from training courses for daily work. In addition, Sacombank
internal resources. In 2023, Sacombank has newly also nominated some employees to attend external
appointed and rotated 771 managers. Appointed training courses to update their knowledge in line with
managers must ensure the completion of framework learning and development trends.
1,077 EMPLOYEES CONTINUED WORKING AT SACOMBANK FOR AT
programs for their respective positions as stipulated.
In addition, Sacombank also implemented the » Sacombank implemented various training methods
LEAST 1 MONTH AFTER MATERNITY LEAVE, EQUIVALENT TO 99.7% “Speeding up capacity development – Seizing such as: workshop, seminar, e-learning, mentoring,
2021 2022 2023
653 females 424 males females 61% 39% males
promotion opportunities” program in 2023 with
the participation of 1,047 employees, of which 476
training, coaching, etc.

employees were awarded operation and planning

deputy manager certifications, 24 of them were
appointed as deputy managers.
1,057 EMPLOYEES CONTINUED WORKING AT SACOMBANK FOR AT
LEAST 12 MONTHS AFTER MATERNITY LEAVE, EQUIVALENT TO 97.9%

650 females 407 males females 61% 39% males

Sacombank also offers welfare and Sacombank Talent Award health checks once a year;
remuneration policies, preferential are entitled to an extremely hazardous positions (treasurer,
loan packages, free use of banking preferential interest-rate assistant treasurer, fund teller)
products and services, as well as loan; they can also purchase are entitled to health checks
annual domestic and international liquidated vehicles at attractive twice a year.
travel opportunities for employees. prices.
» Arranging a medical unit and
100% of employees who are » Comprehensive health insurance, providing monthly medication
qualified for evaluation receive accident insurance, etc. are to take care of employees’
their performance evaluation. provided as stipulated. health at the workplace.

In addition to the mandatory social » Organizing annual health » Supporting medical treatment
insurance and health insurance, checks for 100% of employees. costs for employees who get
Sacombank strives to build a Employees are entitled to sick or suffer injuries at work or
competitive welfare policy to on business trips.
retain talents and attract external
human resources: THE AVERAGE INCOME OF
» Life insurance packages are SACOMBANK’S EMPLOYEES IN 2023
provided as an appreciation for
the significant contribution of
Sacombank’s managers.

» Sacombank’s talent mechanism:

29,880,000
Employees who achieve the VND/MONTH

218 2023 ANNUAL REPORT www.sacombank.com.vn 219

 DETAILED CONTENTS (continued)

FOCUS 4: TRANSPARENT AND EFFECTIVE GOVERNANCE IS A SOLID FOUNDATION FOR

The average number of training hours by
specific positions in 2023 is as follows: SUSTAINABLE DEVELOPMENT
RISK MANAGEMENT IS THE BACKBONE OF A SAFE AND TRANSPARENT BANK

After 32 years of operation and Being aware of the importance of departments under the First line of
IN 2023,
development, Sacombank’s leaders defense in overall risk management activities, KPIs of these departments
THE TRAINING CENTER always identify risk management include criteria related to risk management.
IMPLEMENTED 199 TRAINING as a focal point for management
and administration activities as BOARD OF
COURSES ON PROFESSIONAL
well as an integral part of the DIRECTORS
SKILLS AND COMPETENCIES. comprehensive protection plan,
THESE SESSIONS WERE ensuring trust and peace of mind Propose/Advise Directing and supervising Report
for customers and stakeholders
DELIVERED THROUGH BOTH RISK MANAGEMENT
in the sustainable development CEO
TRADITIONAL FACE-TO-FACE COMMITTEE
TRAINING AND ONLINE ONES VIA
Managers at branches/transaction
offices/regional offices
52 HOURS/YEAR journey. Sacombank has applied a
comprehensive risk management
Propose/Advise
method across the system through
MICROSOFT TEAMS, ATTRACTING
internal mechanisms, regulations, Report
A TOTAL OF 17,233 PARTICIPANTS. RISK MANAGEMENT
32 HOURS/YEAR
procedures, and policies toward
Managers at banking COUNCIL
BESIDES, SACOMBANK ALSO operation units
standardizing and approaching
advanced international practices.
IMPLEMENTED 12 MANDATORY Report Report

E-LEARNING COURSES ON THE THE FIRST- Collaborate THE SECOND-

62 HOURS/YEAR
The risk management structure of Internal
Employees at branches/transaction LINE
LMS AS DEMANDED BY THE offices/regional offices
Sacombank ensures the principles INTERNAL AUDIT
Audit
LINE
of The Three lines of defense, in DEPARTMENT DEPARTMENT
STATE BANK OF VIETNAM OR
which the responsibilities of the
BANKING OPERATION UNITS
FOR SPECIFIC GROUPS WITH
Employees at banking
operation units
33 HOURS/YEAR BOD, Risk Management Committee,
CEO, Risk Management Council, We always strive to improve risk management efficiency through regularly
THE PARTICIPATION OF 58,110 departments, divisions in the First, updating and implementing new regulations of the State Bank of Vietnam
Second, and Third line of defense and adhering to international standards and practices.
EMPLOYEES. are clearly defined.

220 2023 ANNUAL REPORT www.sacombank.com.vn 221

 DETAILED CONTENTS (continued)

We always strive to improve risk management efficiency through regularly updating and implementing new STRENGTHENING PREVENTION OF BRIBERY, MONEY LAUNDERING, AND FINANCIAL CRIMES
regulations of the State Bank of Vietnam and adhering to international standards and practices.

Besides traditional risks such as credit risk, operational risk, environmental risk, liquidity risk, interest rate risk, Recognizing the importance of anti-corruption and anti-money laundering and affirming the commitment to
reputation risk, etc., we believe that managing the environmental, social, and governance (ESG) risks will help combat anti-money laundering, the Anti-Corruption and Anti-Money Laundering Committee of Sacombank has
Sacombank proactively minimize the negative impacts of these factors on the Bank’s operations. Sacombank’s made continuous efforts to build a legal framework and an effective management apparatus. Specifically, in 2023,
environmental and social management system includes regulatory documents, implementation procedures, the Anti-Corruption, Crime Prevention, and Anti-Money Laundering Council organized many meetings and sent
implementation programs, reporting tools, statistics, etc. for potential factors that influence the environment its members to regular and ad-hoc meetings organized by the Council and Departments under the Committee to
and society when Sacombank grants credit to customers. This program is partly to meet the requirements of implement their functions and tasks.
international sponsors of Sacombank, but more importantly, it helps enhance Sacombank’s reputation in the
market as one of Vietnam’s first banks to apply environmental and social factors into the credit granting process. Initiatives implemented and their outcomes: Sacombank’s transparent management practices have resulted in:

The environmental and social management system consulted by PwC was enhanced to thoroughly apply » Fulfilling the Bank’s obligations to the State and employees
international standards aimed at minimizing negative impacts on the environment and community, including (i) the
United Nations Global Compact (ii) the United Nations Environment Program Financial Initiative: announcements » Complying with regulations on information disclosure as required by law and regulatory bodies
of financial institutions on the environment and sustainable development; (iii)Tripartite Declaration of Principles
concerning multinational enterprises and social policy drafted by the International Labor Organization (ILO); (iv) » Ensuring openness and transparency in all banking activities.
Equator Principles and IFC Performance Standards on granting credit for projects.
» Building, and implementing internal control regulations
Sacombank has integrated environment, society, and governance into its risk management activities, including:
» Implementing channels and procedures for receiving and resolving complaints and denunciations.

» Conducting internal audits and inspections; and Committee and Party Committee oversight

» Issuing regulations on anti-money laundering, terrorism financing, and mass destruction financing

MANAGING NATURAL RESOURCE USAGE AND EMISSIONS

To effectively control greenhouse gas emissions and the use of natural resources, Sacombank has issued specific
measures to manage effluents and gas emissions, including:

» Collecting and pre-treating effluents from the sanitary equipment system in two septic tanks before
pumping them into the building's centralized wastewater treatment system.

» Sacombank’s wastewater treatment process complies with the Vietnam Standards QCVN 14:2008/BTNMT.
Regarding gas emissions, installing necessary equipment to ventilate the building, concretizing yards,
regularly watering internal roads, and cleaning to reduce dust. Implementing efficiency management in
work areas to reduce paper waste and spilled ink to ensure environmental protection. Minimizing dust
Ensuring operational safety, Evaluating the impacts of Managing social risks associated generated from vehicles by turning off the engine when entering the building’s premises. Regularly
providing orientations and specific natural disasters on the Bank’s with customers, employees, and checking generators’ exhaust pipes to ensure proper operation and compliance with emissions limits.
guidance in a crisis through infrastructure and operations, other related parties.
operational safety regulations. and thereby developing
appropriate guidelines for
necessary responses.

222 2023 ANNUAL REPORT www.sacombank.com.vn 223

 DETAILED CONTENTS (continued) APPENDIX

SPECIFIC TABLES AND FIGURES

Detailed data on consumption and emissions1

2023 2022 2021

FUEL COSTS Materials

The volume of paper used (kg) 22,060 20,550 23,292

Gasoline costs Total gasoline
(Unit: VND consumption Energy
Year billion) (Unit: liter)
Non-renewable energy2 (terajoules) 6.74 5.79 3.10

2023 4.51 196,983 Renewable energy (terajoules) - - -

2022 4.42 169,408 Electricity (terajoules) 18.18 18.00 17.32

Total energy consumption (terajoules) 24.91 23.80 20.42

2021 1.76 90,507
Energy consumption per employee (terajoules/person) 0.01 0.01 0.01

Water

STATIONARY COSTS Unit: VND billion UTILITY COST Unit: VND billion Total water consumption (megaliters) 15.55 14.69 14.33

Total water consumption in water-stressed areas3 (megaliters) - - -

126 6
Greenhouse gas4
125
92 124
Scope 1 (tons of CO2e5) 479.37 412.27 220.26
123
67 5.1
122 4.7 5
68 Scope 2 (tons of CO2e) 3,645.73 3,611.28 3,474.63
4.6
121
120 Scope 3 (tons of CO2e) 220.44
47 53 52

118 4 Total greenhouse gas emissions (tons of CO2e) 4,345.54 4,023.55 3,694.89
2021 2022 2023 2021 2022 2023
Greenhouse gas emissions intensity per employee
Office Supplies Printed supplies Electricity bill Water bill 2.61 2.25 2.14
(tons of CO2/person)6

Waste

Total household solid waste (tons) 4.65 4.65 4.65

Details of relationships, transactions, and balances with related parties7

Transactions with related parties are transactions conducted with parties that are related to the Bank and its
subsidiaries. Parties are considered related if one party can control or significantly influence the other party’s
operational and financial policy decision-making.

(1) Actual data in Sacombank’s headquarter

(2) Non-renewable energy includes consumed gasoline
(3) Water-stressed areas are identified by the WRI.org tool
(4) Greenhouse gas emissions data is calculated at the Headquarters
(5) CO2 equivalent
(6) Greenhouse gas emission intensity per employee in 2021, 2022, 2023 including Scope 1, 2, and 3 greenhouse gas emissions
(7) Referring to 2023 Annual Report

224 2023 ANNUAL REPORT www.sacombank.com.vn 225

 APPENDIX (continued)

2021
Total of new hires and resignations
Total Number of Number of Rate of employee
Proportion (%) New hire ratio
2023 employees new hires resignations turnover
Total Number of Number of Rate of employee By age
Proportion (%) New hire ratio
employees new hires resignations turnover Under 30 6,267 35.92% 1,112 17.74% 872 13.91%
By age From 30 to 50 10,797 61.89% 248 2.30% 604 5.59%
Under 30 4,940 28.37% 1,093 22.13% 684 13.85% Over 50 382 2.19% 11 2.88% 45 11.78%
From 30 to 50 11,952 68.64% 291 2.43% 623 5.21% By gender
Female 8,421 48.27% 587 6.97% 617 7.33%
Over 50 520 2.99% 2 0.38% 48 9.23%
Male 9,025 51.73% 784 8.69% 904 10.02%
By gender
By geographical region
Female 8,427 48.40% 580 6.88% 594 7.05% Headquarter 1,729 9.91% 124 7.17% 120 6.94%
Male 8,985 51.60% 806 8.97% 761 8.47% North 1,244 7.13% 153 12.30% 134 10.77%
By geographical region Hanoi 1,481 8.49% 214 14.45% 197 13.30%
Headquarter 1,684 9.67% 114 6.77% 144 8.55% North Central 1,310 7.51% 85 6.49% 124 9.47%
North 1,218 7.00% 106 8.70% 116 9.52% South Central & Central Highlands 1,526 8.75% 96 6.29% 97 6.36%
Southeast 1,857 10.64% 173 9.32% 152 8.19%
Hanoi 1,586 9.11% 265 16.71% 213 13.43%
HCMC 4,938 28.30% 390 7.90% 514 10.41%
North Central 1,258 7.22% 74 5.88% 90 7.15%
Southwest 3,361 19.27% 136 4.05% 183 5.44%
South Central & Central Highlands 1,518 8.72% 107 7.05% 101 6.65% Total 17,446 100.0% 1,371 7.86% 1,521 8.72%
Southeast 1,913 10.99% 118 6.17% 119 6.22%
HCMC 4,871 27.97% 418 8.58% 400 8.21% Information about employees and other laborers
Southwest 3,364 19.32% 184 5.47% 172 5.11%
Number of employees by gender and contract type8
Total 17,412 100.0% 1,386 7.96% 1,355 7.78%
2023 2022 2021
Contract type
2022 Female Male Total Female Male Total Female Male Total

Total Number of Number of Rate of employee Official employees 8,343 8,867 17,210 8,291 8,809 17,100 8,180 8,758 16,938
Proportion (%) New hire ratio
employees new hires resignations turnover
Probationary employees 3 10 13 18 20 38 26 48 74
By age
Trainees 81 108 189 130 110 240 215 219 434
Under 30 5,665 32.60% 1,573 27.77% 1,061 18.73%
Total 8,427 8,985 17,412 8,439 8,939 17,378 8,421 9,025 17,446
From 30 to 50 11,270 64.85% 349 3.10% 890 7.90%
Over 50 443 2.55% 2 0.45% 38 8.58% Number of employees by gender and geographical area
By gender 2023 2022 2021
Geographical area
Female 8,439 48.56% 915 10.84% 895 10.61% Female Male Total Female Male Total Female Male Total
Male 8,939 51.44% 1,009 11.29% 1,094 12.24% Headquarter 759 925 1,684 840 973 1,813 806 923 1,729
By geographical region North 623 595 1,218 617 602 1,219 620 624 1,244
Headquarter 1,813 10.43% 206 11.36% 223 12.30% Hanoi 840 746 1,586 815 695 1,510 794 687 1,481
North 1,219 7.01% 114 9.35% 139 11.40%
North Central 613 645 1,258 614 649 1,263 634 676 1,310
Hanoi 1,510 8.69% 352 23.31% 306 20.26%
South Central & Central Highlands 669 849 1,518 667 830 1,497 679 847 1,526
North Central 1,263 7.27% 88 6.97% 130 10.29%
Southeast 928 985 1,913 927 981 1,908 885 972 1,857
South Central & Central Highlands 1,497 8.61% 104 6.95% 135 9.02%
HCMC 2,413 2,458 4,871 2,411 2,423 4,834 2,470 2,468 4,938
Southeast 1,908 10.98% 221 11.58% 164 8.60%
Southwest 1,582 1,782 3,364 1,548 1,786 3,334 1,533 1,828 3,361
HCMC 4,834 27.82% 625 12.93% 663 13.72%
Total 8,427 8,985 17,412 8,439 8,939 17,378 8,421 9,025 17,446
Southwest 3,334 19.19% 214 6.42% 229 6.87%
Total 17,378 100.0% 1,924 11.07% 1,989 11.45% (8) Information is stored and managed on Sacombank’s SAP SuccessFactors

226 2023 ANNUAL REPORT www.sacombank.com.vn 227

 APPENDIX (continued)

Number of employees by contract type and geographical area GRI CONTENT INDEX
2023 2022 2021
Geographical area Number of Sustainability
Official Probationary
Trainees Total
Official Probationary
Trainees Total
Official Probationary
Trainees Total
GRI standard title Page
employees employees employees employees employees employees Standards report
Headquarter 1,677 5 2 1,684 1,786 20 7 1,813 1,697 21 11 1,729 GRI 2 General information disclosure
North 1,194 2 22 1,218 1,188 4 27 1,219 1,202 7 35 1,244 GRI 2-1 Bank information √ 10-11
Hanoi 1,546 3 37 1,586 1,454 6 50 1,510 1,419 18 44 1,481
GRI 2-2 Departments included in the Bank’s sustainability report √ 194-195
North Central 1,248 - 10 1,258 1,249 - 14 1,263 1,284 2 24 1,310
GRI 2-3 Reporting period, frequency, and contact point √ 194-195
South Central & 1,507 - 11 1,518 1,485 - 12 1,497 1,497 3 26 1,526
Central Highlands GRI 2-4 Restatement of information x -
Southeast 1,901 - 12 1,913 1,883 1 24 1,908 1,796 3 58 1,857
GRI 2-5 Independent audit x -
HCMC 4,807 3 61 4,871 4,755 7 72 4,834 4,750 14 174 4,938
GRI 2-6 Activities, value chain, and other business relationships √ 190-195
Southwest 3,330 - 34 3,364 3,300 - 34 3,334 3,293 6 62 3,361
Total 17,210 13 189 17,412 17,100 38 240 17,378 16,938 74 434 17,446 GRI 2-7 Information on employees and other workers √ 214-219

Direct economic value generated and distributed GRI 2-8 Non-regular workers x -

Amount GRI 2-9 Governance structure and components √ 20-25

Economic value Items
(VND million)
GRI 2-10 Appointment and selection of Senior Management x -
Economic Value created Total operating income 26,173,011
GRI 2-11 The most senior executive √ 22-25
Operating costs 5,996,588
GRI 2-12 Role of Senior Management in establishing objectives, values, and strategy √ 24-25
Employee compensation 6,623,627
GRI 2-13 Delegating responsibility for impacts management √ 60-69
Other employee benefits (allowance, uniform) 246,202
Economic value distributed Dividends paid - GRI 2-14 Role of Senior management in sustainability reporting x -

Total amount of contribution to the community 23,489 GRI 2-15 Conflict of interest √ 75-83
Tax payments 1,876,384 GRI 2-16 Communicating key issues x -
Credit risk provision cost 3,688,105 GRI 2-17 Top management’s comprehensive knowledge x -
Retained Economic value 7,718,616
GRI 2-18 Assessment of the effectiveness of Senior Management x -
Ratio of entry-level wage by gender compared to local minimum wage 76
GRI 2-19 Compensation policy √
Region Minimum wage Sacombank 218-219

Region 1 4,680,000 5,008,000 GRI 2-20 Process of determining compensation levels x -

Region 2 4,160,000 GRI 2-21 Annual income ratio x -

Region 3 3,640,000 4,745,000 GRI 2-22 Statement on Sustainable Development Strategy √ 30
Region 4 3,250,000 GRI 2-23 Compliance with responsible business conduct regulations, respect for human rights x -
Diversity of BOD, BOM, and employees GRI 2-24 Integrating its policy commitments x -
Number of members GRI 2-25 Process for addressing negative impacts with organization x -
Total number of Ratio of Management
Employee ratio of the Management
employees Board members GRI 2-26 Employment consultation and suggestion mechanism x -
Board/Executive Board
By age 201
Under 30 4,940 28.37% 213
GRI 2-27 Compliance with laws and regulations √
217
From 30 to 50 11,952 68.64% 11 44.00% 223
Over 50 520 2.99% 14 56.00%
GRI 2-28 Members association x -
By gender
GRI 2-29 Approach to engage stakeholders √ 198-201
Female 8,427 48.40% 5 20.00%
GRI 2-30 Collective bargaining agreement x -
Male 8,985 51.60% 20 80.00%

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 APPENDIX (continued)

GRI CONTENT INDEX (continued)

Number of Sustainability Number of Sustainability
GRI standard title Page GRI standard title Page
Standards report Standards report
GRI 3 Key sector GRI 301-2 Recycled material used x -

GRI 3-1 Process for evaluating key sector x - GRI 301-3 Recycled materials have been used x -

GRI 3-2 List of key sector x - GRI 302 Energy

GRI 3-3 Management of key sector x - GRI 302-1 Energy consumption within the organization √ 198-201

GRI 201 Economic efficiency GRI 302-2 Energy consumption outside the organization x -

32-35 GRI 302-3 Energy intensity √ 223-225

GRI 201-1 Direct economic value created and distributed √ 218
GRI 302-4 Reduction of energy consumption x -
228
GRI 302-5 Reducing energy demand for products and services x -
GRI 201-2 Impact on financial performance, risks, and other opportunities due to climate change x -
GRI 303 Water and wastewater
GRI 201-3 Mandatory welfare obligations and other retirement schemes x -
GRI 303-1 Interactions with water as a common resource x -
GRI 201-4 Financial support received from the Government x -
GRI 303-2 Management of water discharge-related impacts x -
GRI 202 Market presence
GRI 303-3 Influent water x -
218
GRI 202-1 Gender-based starting salary ratio compared to minimum wage in the region √
228 GRI 303-4 Wastewater x -
GRI 202-2 Percentage of senior management recruited from the local community x - GRI 303-5 Water consumption √ 223-225
GRI 203 Indirect economic impacts GRI 304 Biodiversity
GRI 203-1 Investment in infrastructure and support services x - Operational sites owned, leased, managed in, adjacent to protected areas and areas of
GRI 304-1 x -
high biodiversity value outside protected areas
GRI 203-2 Significant Indirect economic impact x -
GRI 304-2 Significant impacts of activities, products, and tourism on biodiversity x -
GRI 204 Purchasing practices
GRI 304-3 All habitat areas are protected and restored x -
GRI 204-1 Proportion of expenditure on local suppliers x -
GRI 304-4 IUCN Red List Species and species with habitats in areas affected by operations x -
GRI 205 Anti-corruption
GRI 305 Emissions
GRI 205-1 Activities accessed for corruption risks x -
GRI 305-1 Direct (Scope 1) Greenhouse gas emissions √ 223-225
GRI 205-2 Communication and training on anti-corruption policies and procedures x -
GRI 305-2 Energy Indirect (Scope 2) Greenhouse gas emissions √ 223-225
65
GRI 205-3 Confirmed corruption cases and actions taken √
223 GRI 305-3 Other indirect GHG emissions (Scope 3) √ 223-225
GRI 206 Anti-competitive behavior GRI 305-4 Greenhouse gas emission intensity (GHG) √ 223-225
Sanctions for Anti-competitive behavior, monopolistic practices, and anti-monopoly GRI 305-5 Reduction of GHG emissions x -
GRI 206-1 x -
measures
GRI 305-6 Emissions of Ozone-depleting substances (ODS) x -
GRI 207 Tax
GRI 305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant gas emissions x -
GRI 207-1 Tax approach x -
GRI 306 Waste
GRI 207-2 Tax management, control, and risk management x -
GRI 306-1 Generation of waste and significant impacts related to waste x -
GRI 207-3 Stakeholder engagement and management of tax-related concerns x -
GRI 306-2 Management of significant waste-related impacts x -
GRI 207-4 Country-specific report x -
GRI 306-3 Generated waste √ 223-225
GRI 301 Materials
GRI 306-4 Waste directed to disposal x -
GRI 301-1 Materials used by weight or volume √ 223-225
GRI 306-5 Waste is treated x -

230 2023 ANNUAL REPORT www.sacombank.com.vn 231

 APPENDIX (continued)

GRI CONTENT INDEX (continued)

Number of Sustainability Number of Sustainability
GRI standard title Page GRI standard title Page
Standards report Standards report
GRI 308 Environmental supplier Assessment GRI 407 Freedom of association/rights to join a trade union and collective bargaining

GRI 308-1 New suppliers have been preliminarily assessed using environmental criteria x - Operations and suppliers in which the right to freedom of association/right to join a
GRI 407-1 x -
trade union and collective bargaining may be at risk.
GRI 308-2 Negative environmental impacts in the supply chain and actions taken x -
GRI 408 Child labor
GRI 401 Employment
Operations and suppliers are considered to have significant risk for incidents of child
98 GRI 408-1 x -
labor
GRI 401-1 Number of new hires and turnover rate √ 217
226-228 GRI 409 Forced or compulsory labor

Benefits provided to full-time employees that are not provided to temporary or part- Operations and suppliers considered to have significant risk for incidents of forced or
GRI 401-2 x - GRI 409-1 x -
time employees compulsory labor

GRI 401-3 Maternity leave √ 218 GRI 410 Security practices

GRI 402 Labor/Management Relations GRI 410-1 Security personnel trained in human rights policies or procedures x -

GRI 402-1 Minimum notice periods for changes in operations √ 216 GRI 411 Rights of indigenous peoples

GRI 403 Occupational Health and Safety GRI 411-1 Incidents of violations involving the rights of indigenous peoples x -

GRI 403-1 Occupational health and safety management system x - GRI 413 Local community

GRI 403-2 Hazard identification, risk assessment, and incident investigation x - Operations with the local community engagement, impact assessments, and 203
GRI 413-1 √
development programs 210-211
GRI 403-3 Occupational health services √ 218
GRI 413-2 Operations with significant actual and potential negative impacts on the local community x -
GRI 403-4 Worker participation, consultation, and communication on occupational health and safety x -
GRI 414 Social supplier assessment
GRI 403-5 Employee training on occupational health and safety x -
GRI 414-1 New suppliers that were preliminarily assessed using social criteria x -
GRI 403-6 Enhancing employee health √ 218
GRI 414-2 Negative social impacts in the supply chain and actions taken x -
Preventing and minimizing occupational health and safety impacts directly linked to
GRI 403-7 x -
business relationships GRI 415 Public policy

GRI 403-8 Employees are ensured by the occupational health and safety management system x - GRI 415-1 Political contributions x -

GRI 403-9 Occupational disability √ 218 GRI 416 Customer health and safety

GRI 403-10 Occupational health issues √ 218 GRI 416-1 Assessment of health and safety impacts of products and services x -

GRI 404 Training and Education GRI 416-2 Incidents of non-compliance concerning health and safety impacts of products and services x -

GRI 404-1 Average training hours per employee per year √ 220 GRI 417 Marketing and branding

GRI 404-2 Programs for upgrading employee skills and transition assistance programs √ 219-220 GRI 417-1 Requirements for brand, product, and service information and labeling x -

GRI 404-3 Percentage of employees receiving regular performance and career development reviews x - GRI 417-2 Incidents of non-compliance concerning product and service information and branding x -

GRI 405 Diversity and equal opportunity GRI 417-3 Incidents of non-compliance concerning marketing communications x -

217 GRI 418 Customer data privacy rights

GRI 405-1 Diversity of governance bodies and employees √
226
Valid complaints regarding breaches of customer data privacy rights and customer data
GRI 418-1 x -
GRI 405-2 The ratio of basic salary and compensation of women to men x - loss.

GRI 406 Non-discrimination

GRI 406-1 Cases of discrimination and corrective actions taken x -

232 2023 ANNUAL REPORT www.sacombank.com.vn 233