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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
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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
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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
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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
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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
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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.
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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.
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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.
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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.
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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
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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
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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
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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
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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
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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
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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
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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
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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
