ACB Financial Report Q1 2011 by zhangyun

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									ASIA COMMERCIAL JOINT-STOCK BANK
       FINANCIAL STATEMENT
FOR THE QUARTER ENDED 31 MARCH 2011
ASIA COMMERCIAL BANK                                                           Form B05a/TCTD-HN



CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2011

                                                                      31/03/2011     31/12/2010
 No.                          Items                            Note      VND            VND
                                                                       Million        Million

 A. ASSETS
  I   Cash, gold and silver, precious metals                           12,475,373     10,884,762
  II  Balances with the State Bank of Vietnam                           2,366,373      2,914,353
      Deposits (cash, gold) at other credit institutions
 III and loans to other credit institutions                            55,492,805     33,961,250
  1   Deposits at other credit institutions                            55,073,975     33,886,349
  2   Loans to other credit institutions                                  421,995         75,800
  3   Provisions for losses and risks                                      (3,165)         (899)
 IV Trading securities                                         V.1      1,132,578        978,355
  1   Trading securities                                                1,351,702      1,167,950
      Less: Provisions for diminution in value of trading
  2   securities                                                        (219,124)      (189,595)
  V   Derivatives and other financial assets                   V.2        656,188         78,172
 VI Loans and advances to customers                                    90,858,407     86,478,408
  1   Loans and advances to customers                          V.3     91,640,627     87,195,105
      Less: Provisions for losses on loans and advances to
  2   customers                                                V.4      (782,220)      (716,697)
 VII Investment securities                                     V.5     29,343,180     48,202,271
  1   Available-for-sale securities                                       507,452      2,153,484
  2   Held to maturity securities                                      28,966,674     46,169,161
      Less: Provisions for diminution in value of
  3   investment securities                                             (130,946)      (120,374)

VIII   Long-term investments                                   V.6      2,907,506      3,004,008
 1     Investment to associates and joint-ventures                          1,363          1,363
 2     Other long-term investments                                      2,939,339      3,035,841
       Less: Provisions for diminution in value of long-term
  3    in vestments                                                      (33,196)       (33,196)
 IX    Fixed assets                                                     1,097,038      1,054,702
  1    Tangible assets                                                  1,058,950      1,014,780
  2    Intangible assets                                                   38,088         39,922
 X     Other assets                                                    10,514,630     17,546,669
  1    Interest incomes, receivables                                    3,494,893      4,239,868
  2    Deferred income tax                                                  5,250          5,250
  3    Other assets                                                     7,014,487     13,301,551
       TOTAL ASSETS                                                   206,844,077    205,102,950




                                                 -1-
ASIA COMMERCIAL BANK                                                         Form B05a/TCTD-HN




CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2011

                                                                31/03/2011         31/12/2010
 No.                      Items                      Note
                                                               VND Million        VND Million


 B. LIABILITIES AND SHAREHOLDERS’
EQUITY
      Due to Government and borrowings from
   I  the State Bank of Vietnam                      V.7             4,719,785          9,451,677
      Deposits and borrowings from other credit
  II  institutions                                   V.8           34,465,887          28,129,963
  1   Deposits from other credit institutions                      34,465,887          28,129,963
  2   Borrowings from other credit institutions                             -                   -
 III Deposits from customers                         V.9          110,295,564         106,936,611
 IV Derivatives and other financial liabilities      V.12                   -                   -
      Funds received from Government,
  V   international and other institutions                            486,908             379,768
 VI Valuable papers issuance                         V.10          40,633,295          38,234,151
VII Other liabilities                                V.11           4,274,548          10,594,023
  1   Payables (interests, fees)                                    1,689,734           1,582,292
  2   Other payables                                                2,543,130           8,978,262
  3   Provisions for off-balance sheet commitments                     41,684              33,469
      TOTAL LIABILITIES                                           194,875,987         193,726,193


VIII   SHAREHOLDERS’ EQUITY                          V.13          11,968,090          11,376,757
 1     Charter capital                                              9,376,965           9,376,965
 2     Reserves                                                     1,164,649           1,209,552
 3     Currency Translation Differences                                    67                   -
 4     Retained earnings                                            1,426,409             790,240
       TOTAL LIABILITIES AND
       SHAREHOLDERS’ EQUITY                                       206,844,077         205,102,950

       CONTINGENCIES AND
       COMMITMENTS                                   VII.1           5,712,620          4,062,887

                                                             HCMC, 20th April, 2011
                                                               President

                                                               Ly Xuan Hai




                                               -2-
     ASIA COMMERCIAL BANK                                                     Form B05a/TCTD-HN



     CONSOLIDATED INCOME STATEMENT
     FOR THE QUARTER ENDED 31 MARCH 2011

                                                                                      Accumulated to
No.                 Items              Note    Q1 2011         Q1 2010           31-Mar-11     31-Mar-10

                                              VND Million    VND Million        VND Million       VND Million
       Interest income and similar
 1     income                                    5,116,139       3,024,255            5,116,139      3,024,255
       Interest expenses and similar
 2     expenses                                (3,847,628)      (2,298,875)       (3,847,628)       (2,298,875)
 I     Net interest income                       1,268,511          725,380         1,268,511           725,380
 1     Fees and commissions income                 359,546          157,968           359,546           157,968
 2     Fees and commissions expense               (38,768)         (30,675)          (38,768)          (30,675)
       Net fees and commissions
 II    income                                     320,778          127,293             320,778         127,293
       Net gain/(loss) on trading in
III    foreign currencies and gold                (29,797)         104,613             (29,797)        104,613
       Net gain/(loss) on trading
IV     securities                                 (21,101)           3,881             (21,101)          3,881
       Net gain/(loss) on investment
V      securities                                 (10,572)           55,935            (10,572)          55,935
1      Other income                                 65,654           20,562              65,654          20,562
2      Other expense                              (94,611)         (20,090)            (94,611)        (20,090)
VI     Net other income                           (28,956)              471            (28,956)             471
       Income from capital
       contribution and long-term
VII    investment                                   5,449           20,246               5,449          20,246
       General and administrative
VIII   expense                                   (564,881)       (442,378)            (564,881)       (442,378)
       Pre-impairment Operating
IX     profit                                      939,430         595,441              939,430         595,441
 X     Loan impairment charge                     (76,004)        (17,059)             (76,004)        (17,059)
XI     Profit before tax                           863,426         578,382              863,426         578,382
XII    Tax expense                               (227,257)       (139,720)            (227,257)       (139,720)

XIII   Profit after tax                           636,169          438,662             636,169         438,662

                                                             HCMC, 20th April, 2011
                                                              President


                                                              Ly Xuan Hai




                                                 -3-
ASIA COMMERCIAL BANK                                                              Form B05a/TCTD-HN



                                                                        Accumulated to
     CONSOLIDATED STATEMENT OF CASH FLOWS                           31-Mar-11 31-Mar-10
                                                                       VND        VND
                                                                     Million     Million
      Cash flows from operating activities
 1    Interest and similar income received                            5,941,980     3,406,449
 2    Interest and similar expenses paid                            (3,740,187)   (2,275,847)
 3    Net fee and commission income received                            320,778       127,293
 4    Net receipts from foreign exchange trading and securities
      trading activities                                              (61,470)       164,429
 5    Other income received                                           (29,181)           267
 6    Cash received from collecting bad loans that were
      allocated as provision for loan loss                                 225           204
 7    Salaries and operating expenses paid                           (675,952)     (503,190)
 8    Corporate income tax paid                                      (257,637)     (174,799)

      Cash flow from operating activities before changes in
      operating assets and liabilities                               1,498,556       744,806

      Changes in operating assets
 9    Decrease/Increase in placements with and loans to other
      credit                                                         5,347,316     1,835,603
10    Increase/decrease in trading securities and investment
      securities (4,041,175) (595,267)                              12,617,452        331,272
11    Decrease/Increase in derivatives and other financial assets     (578,015)             -
12    Increase/decrease in loans and advances to customers          (4,445,522)     3,921,578
13    Increase/decrease in provision for losses                               -             -
14      Increase/decrease in other operating assets                   6,206,266   (3,468,594)

      Changes in operating liabilities
15    Decrease/Increase in borrowings from the State and SBV        (4,731,892)    (866,444)
16    Increase/decrease in placements and borrowings from
      other credit institutions                                      6,335,924       881,820
17    Increase/decrease in deposits from customers                   3,358,953     3,080,184
18    Decrease/Increase in valuable papers issued                      107,140       511,737
19    Decrease/Increase in funds received from Government
      international and other institutions                           2,399,144       984,498
20    Increase/decrease in derivatives and other financial
      liabilities                                                             -       14,779
21    Increase/decrease in other operating liabilities              (6,198,926)    1,059,461
22    Payment from reserves                                            (44,903)     (55,962)

 I    Net cash flow from operating activities                       21,871,493     8,974,738




                                                    -4-
ASIA COMMERCIAL BANK                                                     Form B05a/TCTD-HN




                                                                Accumulated to
      CONSOLIDATED STATEMENT OF CASH FLOWS                  31-Mar-11   31-Mar-10
                                                               VND         VND
                                                             Million      Million

        Cash flows from investing activities
 1      Purchase of fixed assets                              (96,991)      (108,362)
 2      Proceeds from disposal of fixed assets                       -              -
 3      Cash paid for investments in other entities             96,502       (89,410)
 4      Dividend income                                          5,449         20,248

 II     Net cash outflow from investing activities               4,960      (177,524)

        Cash flow from Financing activities
 1      Increase in charter capital                                  -              -
 2      Dividend paid                                                -    (1,166,963)

III     Net cash flow from Financing activities                      -   (1,166,963)

 IV     Net increase in cash and cash equivalents           21,876,453     7,630,251
        Cash and cash equivalents at the beginning of the
 V      year                                                38,310,887    40,311,008
VI      Foreign exchange translation difference                      -        25,822
VII     Cash and cash equivalents at as 31/03/2011          60,187,340    47,967,081

        Cash and cash equivalents
        Cash, gold and precious metal                       12,475,373    10,204,546
        Deposit at State Bank of Vietnam                     2,366,373     1,943,803
        Deposit at credit institutions                      43,898,585    18,084,277
        Investment securities                                1,447,009    17,734,455
        Government valuable papers which can be
        discounted at SBV

                                                                         HCMC, Apr
                                                                          20, 2011
                                                                          President


                                                                         Ly Xuan Hai




                                                      -5-
ASIA COMMERCIAL BANK                                                            Form B05a/TCTD-HN



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

I. GENERAL INFORMATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Asia Commercial Joint Stock Bank (herein referred to as “the Bank”) is a Vietnamese joint-stock bank
registered in the Socialist Republic of Vietnam. Banking License No. 0032/NH-GP was granted to the
Bank by the State Bank of Vietnam (“the SBV”) on 24 April 1993. The license is for a period of 50 years.

Owner type: Joint-stock
Board of Directors
Mr. Tran Xuan Gia                                  Chairman
Mr. Pham Trung Cang                                Vice-Chairman
Mr. Trinh Kim Quang                                Vice-Chairman
Mr. Le Vu Ky                                       Vice-Chairman
Mr. Ly Xuan Hai                                    Member
Mr. Huynh Quang Tuan                               Member
Mr. Alain Cany                                     Member
Mr. Dominic Scriven                                Member
Mr. Julian Fong Loong Choon                        Member
Mr. Luong Van Tu                                   Member
Mr. Tran Hung Huy                                  Member

Management
Mr. Ly Xuan Hai                                    President
Mr. Nguyen Thanh Toai                              Vice President
Mr. Huynh Quang Tuan                               Vice President
Mr. Dam Van Tuan                                   Vice President
Mr. Do Minh Toan                                   Vice President
Mr. Bui Tan Tai                                    Vice President
Mr. Tran Hung Huy                                  Vice President
Mr. Nguyen Duc Thai Han                            Vice President

The Bank’s Head Office is located at No. 442 Nguyen Thi Minh Khai Street, District 3, Hochiminh City.
As at 31 March 2011, the Bank had 288 branches and transaction offices nation-wide.
As at 31 March 2011, the Bank had the following subsidiaries:
Subsidiary                                                Operating License         Total % shareholding
ACB Securities Company (“ACBS”)                           06/GP/H KD                100
Asia Commercial Bank Assets Management Company           4104000099
                                                                                   100
(“ACBA”)
                                                         4104001359
Asia Commercial Bank Leasing Company (“ACBL”)                                      100

ACB Capital Management Company (“ACBC”)                  41/UBCK-GP                100

As at 31 March 2011, the Group had 7.619 employees.




                                                  -6-
ASIA COMMERCIAL BANK                                                                  Form B05a/TCTD-HN



II. FISCAL YEAR AND CURRENY

The Group’s fiscal year is from 1 January to 31 December.
The currency used in preparing financial statements: Vietnam Dong



III. BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements have been prepared in millions of Vietnam Dong (VND million)
using the historical cost convention and in accordance with Vietnamese Accounting Standards and
prevailing regulations applicable to banks and other credit institutions operating in the Socialist Republic of
Vietnam.



IV. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting polices adopted consistently for the preparation of the annual financial reports and mid-
term financial reports.

1.   Foreign currencies

Transactions arising in foreign currencies are translated at rates ruling on the transaction dates. Monetary
assets and liabilities denominated in foreign currencies at each month end are translated at the rates of
exchange ruling at the month end date. Foreign exchange differences from monthly revaluation are
recognized in foreign exchange revaluation reserve on balance sheet and transferred to income statement at
the year end.

2.   Consolidation

i.   Subsidiaries

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

The purchase method of accounting is used to account for the acquisition of subsidiaries by the Group. The
cost of an acquisition is measured as the fair value of the assets given, equities instruments issued and
liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition.
Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their
fair value at the acquisition date, irrespective of the extent of the minority interest. The excess of cost of
acquisition over the fair value of the Group’s share of identifiable assets acquired is recorded as Goodwill.
Goodwill is recognized in expenses (if it is of small value) and otherwise mortised in a uniform manner
during its estimated useful life (if it is of big value). The useful life of goodwill should be properly
estimated as with the time during which sources embodying economic benefits are recovered by the Group.
Such useful life is not beyond 10 years from the date of recognition. If the cost of acquisition is less than
the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the
consolidated income statement.




                                                     -7-
ASIA COMMERCIAL BANK                                                                  Form B05a/TCTD-HN




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

ii.   Minority interest

Minority interest is the portion of the profit or loss and net assets of a subsidiary attributable to equity
interest that are not owned, directly or indirectly through subsidiaries, by the parent.

iii. Associates and joint-ventures

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

Joint-venture (“JV”) is a contractual arrangement whereby the Group and other parties undertake an
economic activity which is subject to joint control.

The Group uses equity method for consolidating its investments in associates and joint-ventures. The
Group’s share of its associates’ and joint-ventures’ post acquisition profits or losses is recognized in the
consolidated income statement. When the Group’s share of losses in an associate and joint venture equals
or exceeds the carrying amount of its investment in the associate and joint-venture, the Group does not
recognize further losses in its consolidated financial statements, unless it has obligations to pay on behalf of
the associate or joint-venture. Accounting policies of associates and joint-ventures have been changed
where necessary to ensure consistency with the policies adopted by the Bank.

3.    Derivatives

Derivatives are recorded in consolidated balance sheet account at contract value on the date which a
derivative contract is entered into and subsequently revalued at the rate of exchange ruling at the month end
date. Realized gains or losses are recognized in consolidated income statement. Unrealized gains or losses
are recorded in foreign exchange revaluation reserve on consolidated balance sheet at each month end and
transferred to consolidated income statement at the end of the year.

4.    Interest income and expense

The Group records interest income and expense on an accrual basis. Interest income from non-performing
loans is not accrued and is recognized on a collection basis. Interest income is derecognized and recorded
off-balance sheet when a loan becomes overdue. Interest income on overdue loans is recognized in the
consolidated income statement upon receipt.




                                                     -8-
ASIA COMMERCIAL BANK                                                               Form B05a/TCTD-HN




5.   Fees and commission income

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

6.   Loans and advances to customers

Short-term loans are those with a repayment date within one year from the date the loan was advanced,
medium-term loans are those with a final repayment date between one and five years from the date the loan
was advanced and long-term loans are those with a repayment date of more than five years from the date
the loan was advanced.

Loan classification and provision for losses are made in accordance with Decision No. 493/2005/Q -
NHNN dated 22 April 2005 and Decision No. 18/2007/Q -NHNN dated 25 April 2007 of the Governor of
the State Bank of Vietnam.

Loans and advances to customers are classified into five groups based on the repayment status and other
qualitative factors as follows:
Group 1: Current
Group 2: Special mentioned
Group 3: Sub-standard
Group 4: Doubtful
Group 5: Bad

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

Where the Bank participates in a syndicated loan not as the lead bank, the Bank reclassifies all loans and
debts (including the outstanding syndicated loan) of the customer into group of debt with higher risk
decided by the lead bank and by the Bank.

The Bank shall actively classify debts into groups of debts with higher risk corresponding with their level
of risk in the following situations:
- There are indications of adverse impact to the customer’s business environment and sector;
- Customer’s financial ratios or repayment capability is weakened;
- Customer does not accurately, completely and promptly provide the Bank its financial information for the
Bank’s assessment of customer’s repayment capability.




                                                   -9-
ASIA COMMERCIAL BANK                                                                  Form B05a/TCTD-HN



Provision for losses on loans and advances to customers
The determination of specific provision for credit risk is calculated using set rates applied to each group of
debts as follows:

                                                                    Provision rates
                           Group 1 - Current                                   0%
                           Group 2 - Special mentioned                         5%
                           Group 3 - Sub-standard                             20%
                           Group 4 - Doubtful                                 50%
                           Group 5 - Bad                                     100%

The specific provision is calculated based on net credit exposure of each borrower i.e. based on the
borrower’s loan and lease balance as at 30 November less the value of collateral assets. The value of these
collateral assets is determined in accordance with Decision 493/2005/QD-NHNN and Decision
18/2007/QD-NHNN.

In accordance with Decision 493/2005/QD-NHNN dated 22 April 2005, a general provision is also required
and should be equal to 0.75% of total balance of loans and advances to customers as at 30 November, after
deducting the total balance of loans and advances to customers which are classified as bad. This level of the
general provision is required to be achieved within 5 years from the effective date of the Decision
493/2005/QD-NHNN.

7.    Investments

i.    Trading securities

Trading securities are securities held for trading and are acquired principally for the purpose of selling in
the short-term or if so designated by Management.

Trading securities are initially stated at cost of acquisition. Subsequently, they are measured at cost less
provision. Provision is made for trading securities eligible for being freely traded in the market and where
there is a diminution in value of these securities.

Gains or losses from disposal of trading securities are recorded net in the consolidated income statement.
The costs of trading securities disposed are determined by using the weighted average method.

ii.   Held-to-maturity securities

Held-to-maturity securities are debt securities with fixed or determinable payment and fixed maturities that
the Group’s management has the positive intention and ability to hold to maturity.

iii. Available-for-sale securities

Available-for-sale securities are those intended to be held for an indefinite period of time, which may be
sold in response to needs for liquidation or changes in interest rates, exchange rates or equity prices.




                                                    - 10 -
ASIA COMMERCIAL BANK                                                                  Form B05a/TCTD-HN



Held-to-maturity debt securities and Available-for-sale securities are initially stated at cost of acquisition.
Post-acquisition interest income of held-to-maturity debt securities is recognized in the consolidated
income statement on an accruals basis
8. Cash and cash equivalents

For the purpose of the consolidated statement of cash flows, cash and cash equivalents comprise cash and
precious metals, demand deposit at the State Bank of Vietnam, demand and term deposits at banks and
investment securities with an original maturity of three months or less.

9.   Provisions

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

10. Taxation

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

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

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

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




                                                     - 11 -
ASIA COMMERCIAL BANK                                                                 Form B05a/TCTD-HN



V. ADDITIONAL NOTES TO CONSOLIDATED BALANCE SHEET STATEMENTS

1.   TRADING SECURITIES

                                                                        31/03/2011          31/12/2010
                                                                        VND Million         VND Million
Debt securities                                                                        -            4,974
Government debt securities                                                             -                   -
Debt securities issued by other local credit institutions                              -            4,974
Equity securities                                                            1,351,702           1,162,976
Equity securities issued by other local credit institutions                   919,868             780,931
Equity securities issued by local economic corporations                       431,834             382,045
Less: provision for diminution in value of trading securities                (219,124)           (189,595)

                                                                             1,132,578            978,355

2.   DERIVATIVES AND OTHER FINANCIAL ASSETS

                                                                         31 March 2011
                                                      Total contract value      Total value (at the foreign
                                                        (at the FX rate at     exchange rate at 31 March)
                                                        the contract date)
                                                                                       Asset        Liabilities
                                                               VND Million   VND Million         VND Million
Derivative currency financial instruments
- Forward contracts                                             17,112,365           646,863
- Swap contracts                                                 1,443,732             9,100
- Purchase options
+ Purchase call options                                         16,333,215                               325,399
+ Purchase put options                                             621,070                                23,549
- Sell options
+ Sell call options                                                836,814             9,342
+ Sell put options                                              16,118,214           808,864
Other derivative financial instruments
- Interest rate swap contracts                                   1,435,484                 225




                                                      - 12 -
ASIA COMMERCIAL BANK                                                            Form B05a/TCTD-HN




                                                                   31 December 2010
                                                  Total contract value       Total value (at the foreign
                                                    (at the FX rate at   exchange rate at 31 December)
                                                    the contract date)
                                                                                 Asset       Liabilities
                                                           VND Million    VND Million      VND Million
Derivative currency financial instruments
- Forward contracts                                         22,577,199         250,161                 -
- Swap contracts                                             2,913,464                -         100,785
- Purchase options
+ Purchase call options                                     13,916,743         170,461                 -
+ Purchase put options                                       1,982,428                -          50,907
- Sell options
+ Sell call options                                          2,605,041                -         146,427
+ Sell put options                                          14,895,714         805,137                 -

Other derivative financial instruments
- Interest rate swap contracts                               3,850,967                -          71,204

3.   LOANS AND ADVANCES TO CUSTOMERS

                                                                            31/03/2011       31/12/2010
                                                                          VND Million      VND Million
Loans to domestic businesses and individuals                                91,087,420       86,544,837
Discounting bills and other valuable papers                                     68,921          181,405
Financial lease                                                                455,809          423,256
Payment on behalf of customers                                                        -                -
Loans funded by Government, international and other institutions                28,477           45,607
Loans to foreign businesses and individuals                                           -                -
State-directed and State-planning loans                                               -                -
Frozen and awaiting solution loans                                                    -                -

                                                                            91,640,627       87,195,105




                                                  - 13 -
ASIA COMMERCIAL BANK                                        Form B05a/TCTD-HN




Analysis by group

                                                        31/03/2011      31/12/2010
                                                      VND Million      VND Million
Current loans                                           90,967,694       86,693,232
Special mentioned loans                                    317,497         209,067
Sub-standard loans                                           72,091         64,759
Doubtful loans                                               87,478         58,399
Bad loans                                                  195,867         169,648

                                                        91,640,627       87,195,105

Analysis by maturity
                                                        31/03/2011      31/12/2010
                                                      VND Million      VND Million
Short-term loans                                        46,042,794       43,889,956
Medium-term loans                                       19,973,771       19,870,669
Long-term loans                                         25,624,062       23,434,480

                                                        91,640,627       87,195,105

4.   PROVISIONS FOR LOSSES ON LOANS AND ADVANCES TO CUSTOMERS

                                             Specific provision   General provision
                                                  VND Million          VND Million
As at 01/01/2011                                        73,662             643,035
Charge for the period                                   23,744              41,779
Utilization during the period                                 -                   -
As at 31/03/2011                                        97,406             684,814


As at 01/01/2010                                        63,853             438,141
Charge for the period                                   10,099             204,894
Utilization during the period                            (290)                    -
As at 31/12/2010                                        73,662             643,035




                                   - 14 -
ASIA COMMERCIAL BANK                                                               Form B05a/TCTD-HN




The specific provision for losses on loans, advances and finance leases to customers as at 31 December
2009 was calculated in accordance with Decision 18/2007/QD-NHNN dated 25 April 2007 and Decision
493/2005/QD-NHNN issued by the State Bank of Vietnam.


General provision was made in accordance with Decision 493/2005/QD-NHNN. As at 31 March 2011,
general provision equals to 0.75% of total loans and advances as at 31 March 2011, after deducting the total
loans and advances to customers which are classified as bad.


5.   INVESTMENT SECURITIES

                                                                               31/03/2011        31/12/2010
                                                                             VND Million       VND Million
Available-for-sale securities                                                      376,506        2,033,110
Debt securities                                                                    266,143        1,912,176
Equity securities                                                                  241,309          241,308
Provision for diminution in value of available-for-sale securities               (130,946)         (120,374)

Held-to-maturity securities                                                     28,966,674       46,169,161
Value of securities                                                             28,966,674       46,169,161
Provision for diminution in value of held-to-maturity securities                          -                    -

                                                                                29,343,180       48,202,271




6.   INVESTMENTS IN ASSOCIATES, JOINT-VENTURES AND LONG TERM INVESTMENT

                                                                               31/03/2011        31/12/2010
                                                                             VND Million       VND Million
Investment in associates and joint-ventures                                          1,363             1,363
Other long-term investments                                                      2,939,339        3,035,841
Provision for diminution in value of long-term investments                        (33,196)          (33,196)

                                                                                 2,907,506        3,004,008




                                                    - 15 -
ASIA COMMERCIAL BANK                                        Form B05a/TCTD-HN




7.   DUE TO GOVERNMENT AND BORROWINGS FROM THE STATE BANK OF VIETNAM


                                                         31/03/2011    31/12/2010
                                                        VND Million   VND Million
Due to State Bank of Vietnam                              4,719,785     9,451,677
Due to Ministry of finance                                        -             -
Other borrowing                                                   -             -

                                                          4,719,785     9,451,677




8.   DEPOSITS AND BORROWING FROM OTHER CREDIT INSTITUTIONS

                                                         31/03/2011    31/12/2010
                                                        VND Million   VND Million
Deposits from other credit institutions
Demand deposits                                           3,324,217     3,651,867
- In VND                                                  3,277,809     3,599,715
- In other currencies                                        46,408        52,152
Term deposits                                            31,141,670    24,478,096
- In VND                                                 24,386,406    19,241,160
- In other currencies                                     6,755,264     5,236,936

                                                         34,465,887    28,129,963
Borrowing from other credit institutions
- In VND                                                          -             -
- In other currencies                                             -             -

                                                                  -             -

Deposit and borrowing from other credit institutions     34,465,887    28,129,963




                                               - 16 -
ASIA COMMERCIAL BANK                                          Form B05a/TCTD-HN




9.   DEPOSITS FROM CUSTOMERS


                                                      As at 31/03/2011
                                              VND              Other           Total
                                                           currencies
                                        VND Million      VND Million     VND Million
Current deposits                          8,049,147         1,638,516      9,687,663
Term deposits                             8,212,855           501,557      8,714,412
Saving deposits                          69,263,626        19,976,357     89,239,983
Margin deposits                             889,285         1,641,984      2,531,269
Specialized fund deposits                    94,242            27,995        122,237

                                         86,509,155        23,786,409    110,295,564




                                                      As at 31/12/2010
                                              VND              Other           Total
                                                           currencies
                                        VND Million      VND Million     VND Million
Current deposits                          8,970,368         1,420,450     10,390,818
Term deposits                             8,175,863           373,893      8,549,756
Saving deposits                          67,841,040        17,649,548     85,490,588
Margin deposits                             855,215         1,564,477      2,419,692
Specialized fund deposits                    65,889            19,868         85,757

                                         85,908,375        21,028,236    106,936,611




                               - 17 -
ASIA COMMERCIAL BANK                                  Form B05a/TCTD-HN



10. BONDS AND CERTIFICATE OF DEPOSITS

Convertible bonds

                                                   31/03/2011    31/12/2010
                                                  VND Million   VND Million
Face value of convertible bonds issued                      -             -
Conversion to equity                                        -             -
Liability component                                         -             -




Bonds

                                                   31/03/2011    31/12/2010
                                                  VND Million   VND Million
Two-year bonds issued by Bank                       1,500,000     1,500,000
Three-year bonds issued by Bank                       700,000       700,000
Five-year bonds issued by Bank                      2,090,000     2,090,000
Ten-year bonds issued by Bank                       3,000,000     3,000,000

                                                    7,290,000     7,290,000




Certificate of gold deposits

                                                   31/03/2011    31/12/2010
                                                  VND Million   VND Million
Under 12 months                                    32,052,303    29,168,264
From 1 year to 5 years                              1,290,992     1,775,887

                                                   33,343,295    30,944,151




                                         - 18 -
ASIA COMMERCIAL BANK                                                                Form B05a/TCTD-HN




11. OTHER LIABILITIES

                                                                                 31/03/2011        31/12/2010
                                                                                VND Million       VND Million
Accrued interest expense                                                          1,689,734         1,582,292
Remittance in transit payable                                                       215,569           140,278
Obligation to the State’s budget                                                    237,474           295,325
Unearned income                                                                     402,210           757,352
Payables to counterparties for gold trading                                       1,682,511         7,779,920
Other payables                                                                        5,366             5,387
Provision for severance allowance                                                    41,684            33,469
General provision for losses on contingencies and commitments

                                                                                  4,274,548        10,594,023




12. DEFERRED INCOME TAX ASSET


                                              01/01/2011      Increase/Decrease in the period      31/03/2011
                                                             Payable amount     Amount paid
                                        VND Million          VND Million        VND Million       VND Million
Value added tax                                  13,264               26,740          37,235            2,769
Corporate tax                                   259,932              227,257         257,637          229,552
Export/Import tax                                      -                    -                 -             -
Real estate tax                                        -                   5               5                -
Other tax                                        22,129               23,094          40,070            5,153


Total                                           295,325              277,096         334,947          237,474




                                                    - 19 -
ASIA COMMERCIAL BANK                                                               Form B05a/TCTD-HN



13. CAPITAL AND RESERVES

Share capital

                                                                                31/03/2011        31/12/2010
                                                                               VND Million      VND Million
Issued and fully paid charter capital                                          937,696,506       937,696,506
Shares sold to the public
- Ordinary shares                                                              937,696,506       937,696,506
- Preferred shares                                                                        -                   -
Treasury shares
- Ordinary shares                                                                         -                   -
- Preferred shares                                                                        -                   -
Outstanding shares
- Ordinary shares                                                              937,696,506       937,696,506
- Preferred shares                                                                        -                   -
Face value of one share equals to 10,000VND


Reserves and retain earning

                                                                                                VND Million
                     Chartered    Currencies    Financial        Reserve for  Other        Retain        Total
                      capital     translation   provision      supplementary reserves     Earning
                                  differences     fund            chartered
                                                                   capital
Beginning of
                      9,376,965             -     972,300           115,067     122,185       790,240 11,376,757
the period
Increase in the
                              -            67              -               -          -       636,169    636,236
period
Decrease in the
                              -             -              -               - (44,903)               -   (44,903)
period

End of         the
                      9,376,965            67     972,300           115,067      77,282 1,426,409 11,968,090
period




                                                  - 20 -
ASIA COMMERCIAL BANK                                                       Form B05a/TCTD-HN



VI. ADDITIONAL NOTES TO CONSOLIDATED PROFIT AND LOSS STATEMENTS

1.   INTEREST AND SIMILAR INCOME

                                                                          Q1 2011        Q1 2010
                                                                       VND Million    VND Million
On deposits at other credit institutions                                   953,140        749,556
On loan and advances to customers                                        3,114,229      1,546,531
On investment debt securities                                            1,029,002        722,275
On finance lease                                                            18,918          5,254
Other income from credit activities                                            850           639

                                                                         5,116,139      3,024,255




2.   INTEREST AND SIMILAR EXPENSES

                                                                          Q1 2011        Q1 2010
                                                                       VND Million    VND Million
On deposits                                                              3,367,552      1,872,380
On borrowing from State Bank of Vietnam                                    229,017        159,674
On bonds, convertible bonds and certificates of deposit                    247,672        265,205
On finance lease                                                                  -             -
Other expenses from credit activities                                        3,387          1,616

                                                                         3,847,628      2,298,875




3.   NET GAIN FROM TRADING OF TRADING SECURITIES

                                                                          Q1 2011        Q1 2010
                                                                       VND Million    VND Million
Gain on disposal of trading securities                                      10,169          4,028
Loss on disposal of trading securities                                      (1,741)         (147)
Income from reversal of provision for diminution in value of trading
                                                                           (29,529)             -
securities

                                                                           (21,101)         3,881




                                                   - 21 -
ASIA COMMERCIAL BANK                                                          Form B05a/TCTD-HN



4.   NET GAIN FROM DISPOSAL OF INVESTMENT SECURITIES
                                                                             Q1 2011        Q1 2010
                                                                          VND Million    VND Million
Gain on disposal of investment securities                                            -        55,967
Loss on disposal of investment securities                                            -          (32)
Income from reversal of provision for diminution in value of investment
                                                                              (10,572)             -
securities

                                                                              (10,572)        55,935

5.   INCOME FROM CAPITAL CONTRIBUTION AND LONG-TERM INVESTMENTS
                                                                             Q1 2011        Q1 2010
                                                                          VND Million    VND Million
Dividend income from trading securities                                           914              -
Dividend income from available-for-sale securities                                   -        13,372
Dividend income from investments in other entities and other long-term
                                                                                4,535          6,877
investments
Share of (loss)/profit from associates (net of disposals)                            -           (3)

                                                                                5,449         20,246

6.   GENERAL AND ADMINISTRATIVE EXPENSES
                                                                             Q1 2011        Q1 2010
                                                                          VND Million    VND Million
Tax and fee expenses                                                              827           635
Staff costs                                                                   248,577        199,740
- Salary and allowance                                                        219,416        174,686
- Salary related contribution                                                  15,178         12,450
- Other allowances                                                                887           450
- Other staff related costs                                                    13,096         12,154
Expenses on fixed assets                                                      141,550        111,941
- Depreciation and amortization                                                55,014         46,469
Admin expenditures                                                            146,699        107,866
Insurance fee                                                                  27,228         22,196
Provision for diminution in value of other long-term investments and
                                                                                     -             -
provision for bad debt

                                                                              564,881        442,378




                                                     - 22 -
ASIA COMMERCIAL BANK                                                                    Form B05a/TCTD-HN



VII. OTHER NOTES

1.     CONTINGENCIES AND COMMITMENTS

                                                                                       Q1 2011         Q1 2010
                                                                                   VND Million     VND Million
Letters of credit at sight                                                            2,677,305       2,028,589
Deferred letters of credit                                                             548,002          357,060
Payment guarantees                                                                     879,480          482,698
Performance guarantees                                                                 471,242          453,791
Bidding guarantees                                                                     133,440          101,783
Other guarantees                                                                      1,003,151         638,966

                                                                                      5,712,620       4,062,887

2.     CONCENTRATIONS OF ASSETS AND LIABILITIES BY GEOGRAPHICAL AREA
                                                                  VND Million
                                                                                 Derivatives      Trading and
        As at                                                Credit
                      Total loans       Total deposits                            financial       investment
     31/03/2011                                           commitments
                                                                             instruments           securities
Domestic                92,062,622        144,761,451          2,053,393           19,963,259       30,825,828

Overseas                            -                -         3,659,227           33,937,635                   -


Total loans include loans to customers and loans to other credit institutions.

Total deposits include deposits (VND, gold and other currencies) from customers and other credit
institutions

VIII. RISK MANAGEMENT
1. MARKET RISK




                                                     - 23 -
ASIA COMMERCIAL BANK                                                                                                                            Form B05a/TCTD-HN




Interest rate risk
                                                        Non-
                                                                       Up to 1                                        6-12                      Over 5
         As at 31 March 2011              Overdue     interest                       1-3 months        3-6 months                 1-5 years                   Total
                                                                       month                                         months                     years
                                                      bearing
Assets
Cash and precious metals                         -   12,475,373                -                   -            -             -            -             -    12,475,373
Balances with the SBV                            -      505,940        1,860,433                   -            -             -            -             -     2,366,373
Placements with and loans to other
                                                 -               -    25,656,550      18,244,036        7,241,175    1,129,960     3,224,250             -    55,495,970
credit institutions(*)
Trading securities(*)                            -    1,351,702                -               -                -            -             -           -       1,351,702
Derivatives and other financial assets           -      656,188                -               -                -            -             -           -         656,188
Loans and advances to customers(*)         930,265      272,773        8,012,920      67,350,991        4,649,326    8,664,464     1,390,204     369,684      91,640,627
Investment securities(*)                         -      241,309                -       1,447,009        2,704,372    1,926,901    19,451,959   3,702,576      29,474,125
Investment in other entities and long-
                                                 -    2,940,702                  -                 -            -             -            -             -     2,940,702
term investments
Fixed assets                                     -    1,097,038                  -                 -            -             -            -             -     1,097,038
Other assets(*)                                  -   10,514,870                  -                 -            -             -            -             -    10,514,870
Total assets                               930,265   30,055,894       35,529,903      87,042,036       14,594,872   11,721,325    24,066,413   4,072,260     208,012,968

Liabilities
Due to Government and SBV                        -               -     3,363,797       1,355,988                -            -            -           -        4,719,785
Deposits from other credit institutions          -               -    20,220,384       6,564,974        4,130,617    2,552,964      970,920      26,029       34,465,887
Funds received from Government,
                                                 -               -        38,311              60,000       23,651      24,542       280,753      59,651         486,908
international and other institutions
Deposits from customers                          -            -       61,995,038      34,058,819        7,432,217    4,377,566     2,431,291         633     110,295,564
Bonds and deposits certificates                  -            -        8,919,951      21,196,511        1,559,819    1,527,954     4,429,060   3,000,000      40,633,295
Other liabilities                                -    4,274,548                -               -                -            -             -           -       4,274,548
Total liabilities                                -    4,274,548       94,537,480      63,236,292       13,146,303    8,483,026     8,112,024   3,086,313     194,875,987
Interest rate gap of Balance sheet
                                           930,265   25,781,345      (59,007,577)     23,805,744        1,448,569    3,238,298    15,954,389    985,947       13,136,980
Item
Interest rate gap of commitments
                                                 -   (5,712,620)                 -                 -            -             -            -             -   (5,712,620)
and contingencies

Total interest rate gap                    930,265   20,068,725      (59,007,577)     23,805,744        1,448,569    3,238,298    15,954,389    985,947        7,424,360

(*) these items do not include the provisions




                                                                                     - 24 -
ASIA COMMERCIAL BANK                                                                                                                  Form B05a/TCTD-HN




Currencies risk
           As at 31 March 2011                 VND          USD          GOLD             EUR         JPY        AUD        CAD       Others      Total
Assets
Cash and precious metals                      1,646,781      744,333     9,999,109          57,079      6,637     13,365     5,188      2,881     12,475,373
Balances with the SBV                         1,850,034      516,339             -               -          -          -         -          -      2,366,373
Placements with and loans to other credit
                                             49,235,440    5,129,081       956,280         140,360     14,681      3,142     3,050     13,937     55,495,970
institutions(*)
Trading securities(*)                         1,351,702            -             -               -           -          -         -          -     1,351,702
Derivatives and other financial assets      (9,398,078)    2,041,303     7,740,047         286,809           -    (7,530)   (6,362)          -       656,188
Loans and advances to customers(*)          66,476,315    12,840,723    12,148,952         174,637           -          -         -          -    91,640,627
Investment securities(*)                    22,387,789     4,618,839     2,467,497               -           -          -         -          -    29,474,125
Investment in other entities and long-
                                              2,940,702             -             -               -          -          -         -          -     2,940,702
term investments
Fixed assets                                  1,097,038            -             -               -          -          -         -          -      1,097,038
Other assets(*)                               6,792,911    3,596,461       123,856             971          -          -       671          -     10,514,870
Total assets                                144,380,633   29,487,080    33,435,740         659,856     21,317      8,977     2,546     16,818    208,012,968

Liabilities
Due to Government and SBV                     4,719,785            -             -               -           -          -         -         -      4,719,785
Deposits from other credit institutions      27,664,215      653,924     6,144,508           3,100          36         98         -         7     34,465,887
Funds received from Government,
                                               486,908              -             -               -          -          -         -          -      486,908
international and other institutions
Deposits from customers                      86,509,155   21,883,789     1,285,717         581,972     21,713      2,845     1,150      9,223    110,295,564
Bonds and deposits certificates               7,290,000            -    33,343,295               -          -          -         -          -     40,633,295
Other liabilities                             3,137,371      304,944       779,445          23,409     10,435      7,276     3,351      8,320      4,274,548
Capital and reserve                          11,968,090            -             -               -          -          -         -          -     11,968,090
Total liabilities and shareholders’
                                            141,775,524   22,842,657    41,552,964         608,480     32,184     10,218     4,500     17,550    206,844,077
equity
Net on-balance sheet position                 2,605,110    6,644,423    (8,117,224)         51,376    (10,867)    (1,242)   (1,954)     (732)      1,168,891

Off-balance sheet position                  (1,787,311)   (3,651,996)             -       (137,881)   (57,533)   (19,096)         -   (58,803)   (5,712,620)

Total Position                                 817,799     2,992,427    (8,117,224)        (86,505)   (68,400)   (20,338)   (1,954)   (59,534)   (4,543,730)
(*) these items do not include the provisions




                                                                                 - 25 -
ASIA COMMERCIAL BANK                                                                                                                           Form B05a/TCTD-HN




Liquidity risk
           As at 31 March 2011                   Overdue                                           Current
                                             Over 3   Up to 3     Up to 1                             3-12                        Over 5
                                                                                  1-3 months                     1-5 years                         Total
                                             months   months      month                             months                        years
Assets
Cash and precious metals                           -         -    12,475,373                   -             -               -             -       12,475,373
Balances with the State Bank of Vietnam            -         -     2,366,373                   -             -               -             -        2,366,373
Placements with and loans to other credit          -         -    38,062,079         9,098,223      5,833,369     2,502,300                -       55,495,970
institutions(*)
Trading securities(*)                              -         -     1,351,702                 -              -             -               -         1,351,702
Derivatives and other financial assets             -         -       656,188                 -              -             -               -           656,188
Loans and advances to customers(*)           205,262   725,003     6,983,777        14,978,951     24,792,296    21,224,039      22,731,299        91,640,627
Investment securities(*)                           -         -     1,202,529         3,035,628      8,193,397    14,227,228       2,815,343        29,474,125
Investment in other entities and long-term         -         -              -                  -             -               -    2,940,702         2,940,702
investments
Fixed assets                                       -         -             -                   -             -               -    1,097,038         1,097,038
Other assets(*)                                    -         -    10,514,870                   -             -               -            -        10,514,870
Total assets                                 205,262   725,003    73,612,889        27,112,802     38,819,063    37,953,567      29,584,382       208,012,968

Liabilities
Due to Government and borrowings from              -         -     3,363,797         1,355,988               -               -             -        4,719,785
the State Bank of Vietnam
Deposits from other credit institutions            -         -    26,334,602         3,548,158      4,119,099      464,029                 -       34,465,887
Funds received from Government,                    -         -        52,310             67,443       54,236       261,319          51,600           486,908
international and other institutions
Deposits from customers                            -         -    74,587,312        25,036,064     10,543,883       128,251              54       110,295,564
Bonds and deposits certificates                    -         -    16,468,419        14,631,350      3,197,090     3,336,436       3,000,000        40,633,295
Other liabilities                                  -         -     4,274,548                 -              -             -               -         4,274,548
Total liabilities                                  -         -   125,080,987        44,639,003     17,914,308     4,190,035       3,051,654       194,875,987
Interest rate gap                            205,262   725,003   (51,468,098)      (17,526,202)    20,904,755    33,763,533      26,532,728        13,136,980
(*) these items do not include the provisions




                                                                                - 26 -
ASIA COMMERCIAL BANK                                                                Form B05a/TCTD-HN


2.   CREDIT RISK

The Group takes on exposure to credit risk, which is the risk that counterparty will cause a financial loss for the
Group by failing to discharge an obligation. Credit exposures arise principally in lending activities that lead to
loans and advances, and investment activities that bring debt securities. There is also credit risk in off-balance
sheet financial instruments, such as loan commitments. The credit risk management and control are done centrally
by Credit Committee and Credit Management Policy Board with representatives from the Board of Directors and
Management.

In measuring credit risk of loan and advances to customers and to banks, the Group adopts guidance provided in
Decision No. 493/2005/Q -NHNN dated 22 April 2005 and Decision No. 18/2007/Q -NHNN dated 25 April
2007 of the Governor of the State Bank of Vietnam.

The Group manages credit risk by placing limits on exposures in relation to one borrower, or groups of borrowers
in accordance with regulations of the State Bank of Vietnam. In addition, exposure to credit risk is managed
through regularly reviewing on the acceptable classes of collaterals and analyzing the ability of borrowers and
potential borrowers to meet interest and capital repayment obligations.


                                                                                   Hochiminh city, 20th April 2011
                                                                                      President and CEO




                                                                                           LY XUAN HAI

								
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