FINANCIAL STATEMENTS | ANNUAL REPORT SHB 2023

STATEMENT OF THE BOARD OF MANAGEMENT

The Board of Management of Saigon – Hanoi Commercial Joint Stock Bank (the “Bank”) presents this report together with the Bank’s consolidated financial statements for the year ended 31 December 2023.

The members of the Board of Directors, Board of Supervisors, Board of Management and Chief Accountant of the Bank during the year and to the date of the consolidated financial statements are as follows:

Board of Directors

Mr. Do Quang Hien

Chairman

Mr. Do Duc Hai

Vice Chairman (appointed on 11 April 2023)

Mr. Do Quang Vinh

Vice Chairman (appointed on 11 April 2023)

Mr. Vo Duc Tien

Vice Chairman (resigned from 11 April 2023)

Mr. Thai Quoc Minh

Member

Ms. Ngo Thu Ha

Member (appointed on 11 April 2023)

Mr. Pham Viet Dan

Member (appointed on 11 April 2023)

Mr. Nguyen Van Le

Member (resigned from 11 April 2023)

Mr. Do Van Sinh

Independent Member

Mr. Haroon Anwar Sheikh

Independent Member (appointed on 11 April 2023)

Board of Supervisors

Mr. Pham Hoa Binh

Head of Board of Supervisors

Ms. Le Thanh Cam

Member

Mr. Vu Xuan Thuy Son

Member

Board of Management and Chief Accountant

Ms. Ngo Thu Ha

Chief Executive Officer

Mr. Le Dang Khoa

Deputy General Director

Mr. Nguyen Huy Tai

Deputy General Director

Ms. Ninh Thi Lan Phuong

Deputy General Director

Ms. Hoang Thi Mai Thao

Deputy General Director

Mr. Do Duc Hai

Deputy General Director

Mr. Do Quang Vinh

Deputy General Director

Mr. Luu Danh Duc

Deputy General Director

Mr. Tran Xuan Huy

Deputy General Director
(appointed on 01 March 2023 and resigned from 14 October 2023)

Ms. Ngo Thi Van

Chief Accountant

THE BOARD OF MANAGEMENT’S STATEMENT OF RESPONSIBILITY

The Board of Management of the Bank is responsible for preparing the consolidated financial statements, which give a true and fair view of the financial position of the Bank as at 31 December 2023 and its financial performance and its cash flows for the year then ended in accordance with Vietnamese Accounting Standards, accounting regime applicable to credit institutions in Vietnam and legal regulations relating to consolidated financial reporting. In preparing these consolidated financial statements, the Board of Management is required to:

Select suitable accounting policies and then apply them consistently;
Make judgments and estimates that are reasonable and prudent;
State whether applicable accounting principles have been followed, subject to any material departures disclosed and explained in the consolidated financial statements;
Prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Bank will continue its business; and
Design and implement an effective internal control system for the purpose of properly preparing and presenting the consolidated financial statements so as to minimize errors and frauds.

The Board of Management is responsible for ensuring that proper accounting records are kept, which disclose, with reasonable accuracy at any time, the financial position of the Bank, and that the consolidated financial statements comply with Vietnamese Accounting Standards, accounting regime applicable to credit institutions in Vietnam and legal regulations relating to consolidated financial reporting. The Board of Management is also responsible for safeguarding the assets of the Bank and hence for taking reasonable steps for the prevention and detection of frauds and other irregularities.

The Board of Management confirms that the Bank has complied with the above requirements in preparing these consolidated financial statements.

For and on behalf of the Board of Management,

Ngo Thu Ha
Chief Executive Officier

Hanoi, 29 March 2024

INDEPENDENT AUDITORS’ REPORT

To:

The Shareholders
The Board of Directors and the Board of Management
Saigon – Hanoi Commercial Joint Stock Bank

We have audited the accompanying consolidated financial statements of Sai Gon – Hanoi Commercial Joint Stock Bank (the “Bank”), prepared on 29 March 2024 as set out from page 05 to page 60, which comprise the consolidated statement of financial position as at 31 December 2023, the consolidated income statement and the consolidated cash flow statement for the year then ended, and notes to the consolidated financial statements.

Managerment’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Vietnamese Accounting Standards, accounting regime applicable to credit institutions in Vietnam and legal regulations relating to consolidated financial reporting and for such internal control as the Board of Management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express a conclusion on these consolidated financial statements based on our audit. We conducted our audit in accordance with Vienamese Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatements of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Bank’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Bank as at 31 December 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, accounting regime aplicable to credit institutions in Vietnam and legal regulations relating to consolidated financial reporting.

Other matter

The Bank’s consolidated financial statements for the year ended 31 December 2022 was audited by another independent audit firm, with the independent auditors’ report signed on 22 March 2023 giving an unqualified opinion.

Tran Huy Cong
Deputy General Director

Audit Practising Registration Certificate
No. 0891-2023-001-1

DELOITTE VIETNAM AUDIT COMPANY LIMITED

29 March 2024
Hanoi, S.R. Vietnam

Nguyen Khuong Duy
Auditor

Audit Practising Registration Certificate
No. 5063-2020-001-1

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 December 2023

FORM B02/TCTD-HN
Issued under Circular No. 49/2014/TT-NHNN
dated 31 December 2014 of the SBV

Unit: VND Million

NO.	ITEMS	Notes	Closing balance	Opening balance
A.	ASSETS
I.	Cash	5	1,370,849	1,897,545
II.	Balances with the State Bank of Vietnam ("SBV")	6	54,763,646	15,145,862
III.	Placements with and loans to other credit institutions	7	63,548,928	63,008,862
1.	Placements with other credit institutions		54,825,905	52,456,685
2.	Loans to other credit institutions		8,841,433	10,651,971
3.	Provisions for credit losses	8	(118,410)	(99,794)
IV.	Trading securities	9	7,792,742	1,547
1.	Trading securities		7,853,152	3,881
2.	Provisions for impairment of trading securities		(60,410)	(2,334)
V.	Derivative financial instruments and other financial assets	10	-	269,772
VI.	Loans to customers		429,362,729	378,575,443
1.	Loans to customers	11	438,464,147	385,633,215
2.	Provisions for credit losses of loans to customers	12	(9,101,418)	(7,057,772)
VII.	Investment securities	13	32,063,660	32,954,676
1.	Available-for-sale investment securities	13.1	14,373,759	12,988,616
2.	Held-to-maturity investment securities	13.2	17,833,636	20,063,662
3.	Provisions for impairment of investment securities	13.4	(143,735)	(97,602)
VIII.	Long-term investments	14	414,448	46,699
1.	Investments in associates		343,172	-
2.	Other long-term investments		158,272	158,272
3.	Provisions for impairment of long-term investments		(86,996)	(111,573)
IX.	Fixed assets		5,229,416	4,954,396
1.	Tangible fixed assets	15	734,978	502,854
a.	Cost		1,528,503	1,287,149
b.	Accumulated depreciation		(793,525)	(784,295)
2.	Intangible assets	16	4,494,438	4,451,542
a.	Cost		4,825,929	4,772,975
b.	Accumulated amortisation		(331,491)	(321,433)
X.	Other assets	17	35,954,267	45,573,283
1.	Other receivables		18,860,662	29,226,346
2.	Interest and fee receivables		13,949,182	15,295,742
3.	Other assets	17,3	3,230,825	1,178,109
4.	Provisions for impairment of other assets	17,4	(86,402)	(126,914)
	TOTAL ASSETS		630,500,685	542,428,085
B.	LIABILITIES AND OWNERS' EQUITY
I.	Borrowings from the Government and the SBV	18	1,333,658	9,715,193
1.	Deposits and borrowings from the Government and the SBV		1,333,658	9,715,193
II.	Deposits and borrowings from other credit institutions	19	70,766,294	78,283,936
1.	Deposits from other credit institutions		65,286,090	72,871,039
2.	Borrowings from other credit institutions		5,480,204	5,412,897
III.	Deposits from customers	20	447,503,426	361,675,593
IV.	Derivative financial instruments and other financial liabilities	10	97,152	-
V.	Grants, trusted funds and borrowings at risk of the credit institution	21	1,611,235	1,615,605
VI.	Valuable papers issued	22	42,821,727	36,440,208
VII.	Other liabilities	23	16,268,913	11,793,079
1.	Accrued fee and interest expenses		14,025,631	9,069,320
2.	Deferred tax liabilities		36,030	30,233
3.	Other payables and liabilities		2,207,252	2,693,526
	TOTAL LIABILITIES		580,402,405	499,523,614
VIII.	Capital and reserves	25	50,098,280	42,904,471
1.	Contributed capital		37,638,324	32,118,175
a.	Charter capital		36,193,981	30,673,832
b.	Share premium		1,449,603	1,449,603
c.	Treasury fund		(5,260)	(5,260)
2.	Reserves		5,138,098	4,061,834
3.	Foreign exchange reserves		(689,038)	(606,344)
4.	Retained earnings		8,010,896	7,330,806
	TOTAL LIABILITIES AND OWNERS' EQUITY		630,500,685	542,428,085

OFF-BALANCE-SHEET ITEMS

NO.	ITEMS	Notes	Closing balance	Opening balance
1.	Credit guarantees	41	55,050	23,856
2.	Foreign exchange transactions commitments	41	15,454,640	38,872,143
	Buying foreign currency commitments		805,070	6,324,654
	Selling foreign currency commitments		814,380	3,074,583
	Cross currency swap contracts		13,835,190	29,472,906
3.	Letters of credit	41	5,085,207	19,146,337
4.	Other guarantees	41	18,477,630	16,035,382
5.	Uncollected loan interest and fees	42	10,116,063	7,070,140
6.	Doubtful debts written-off	43	33,542,661	34,822,298
7.	Assets and other documents	44	2,530,168	4,156,915

Prepared by

Do Thanh Phuong
Head of Accounting and General Affairs Department

Reviewed by

Ngo Thi Van
Chief Accountant

Approved by

Ngo Thu Ha
Chief Executive Director

29 March 2024

CONSOLIDATED INCOME STATEMENT

For the year ended 31 December 2023

FORM B03/TCTD-HN
Issued under Circular No. 49/2014/TT-NHNN
dated 31 December 2014 of the SBV

Unit: VND Million

NO.	ITEMS	Notes	Current year	Prior year
1.	Interest and similar income	26	57,589,391	40,773,670
2.	Interest and similar expenses	27	(38,304,038)	(23,223,586)
I.	Net interest income		19,285,353	17,550,084
3.	Income from services		912,654	1,241,869
4.	Expenses on services		(367,727)	(351,315)
II.	Net profit from services	28	544,927	890,554
III.	Net gain from trading foreign currencies	29	282,207	116,250
IV.	Net gain from trading securities	30.1	11,122	-
V.	Net gain/(loss) from investment securities	30.2	27,981	92,641
5.	Other operating income		501,021	807,767
6.	Other operating expenses		(67,385)	(120,540)
VI.	Net profit from other activities	31	433,636	687,227
VII.	Income from capital contribution, equity investments	32	743,171	4,226
VIII.	Operating expenses	33	(5,051,539)	(4,391,593)
IX.	Net profit from operating activities before credit provision expenses		16,276,858	14,949,389
X.	Provision expenses for credit losses	34	(7,037,837)	(5,260,021)
XI.	Profit before tax		9,239,021	9,689,368
7.	Current corporate income tax expense	35	(1,908,466)	(1,961,243)
8.	Deferred corporate income tax expense		(5,797)	793
XII.	Corporate income tax expense		(1,914,263)	(1,960,450)
XIII.	Profit after corporate income tax		7,324,758	7,728,918
XIV.	Profit attribute to the owners of the Bank		7,324,758	7,728,918
XIV.	Basic earnings per share (VND)	36	2,024	2,107

Prepared by

Do Thanh Phuong
Head of Accounting and General Affairs Department

Reviewed by

Ngo Thi Van
Chief Accountant

Approved by

Ngo Thu Ha
Chief Executive Director

29 March 2024

CONSOLIDATED CASH FLOW STATEMENT

For the year ended 31 December 2023

FORM B04/TCTD-HN
Issued under Circular No. 49/2014/TT-NHNN
dated 31 December 2014 of the SBV

Unit: VND Million

NO.	ITEMS	Current year	Prior year
ASH FLOW FROM OPERATING ACTIVITIES
01.	Interest and similar income received	58,898,319	31,743,193
02.	Interest and similar expenses paid	(33,347,727)	(21,841,721)
03.	Service income received	582,559	757,558
04.	Net cash received from trading foreign currencies and securities	425,519	260,627
05.	Other income	243,550	60,297
06.	Receipts from debts written-off or paid off by risk fund	190,201	626,930
07.	Payments to employees and for operating management	(4,945,722)	(4,340,550)
08.	Corporate income tax paid	(2,437,226)	(502,344)
	Net cash from operating profit before movements in assets and working capita	19,609,473	6,763,990
	Movement in operating assets	(55,153,267)	(43,115,133)
09.	Decrease/(Increase) in deposits at and loans to other credit institutions	1,709,924	(2,059,212)
10.	Increase in trading securities	(7,004,389)	(7,901,835)
11.	Decrease/(Increase) in derivatives and other financial assets	269,772	(17,324)
12.	Increase in loans to customers	(52,830,933)	(23,217,091)
13.	Decrease in provisions for losses	(4,465,088)	(2,907,739)
14.	Decrease/(Increase) in other operating assets	7,167,447	(7,011,932)
	Movement in operating liabilities	76,314,211	34,087,949
15.	(Decrease)/Increase in borrowings from the Government and the State Bank of Vietnam	(8,381,535)	8,204,210
16,	(Decrease) in deposits and borrowings from other credit institutions	(7,517,641)	(1,448,614)
17.	Increase in deposits from customers	85,827,834	34,478,765
18.	Decrease/(Increase) in issued valuable papers (excluding valuable papers charged to financial activities)	6,381,519	(9,851,906)
19.	(Increase) in grants, trusted funds and borrowings at risk of the credit institution	(4,370)	(3,336,565)
20.	Increase in derivatives and other financial liabilities	97,152	-
21.	(Increase)/Decrease in other operating liabilities	(88,748)	6,042,059
I.	Net cash generated by/(used in) operating activities	40,770,417	(2,263,194)
CASH FLOWS FROM INVESTING ACTIVITIES
01.	Acquisition of fixed assets	(240,841)	(71,255)
02.	Proceeds from sales, disposals of fixed assets	1,780	15,151
03.	Expenses on sales, disposal of fixed assets	(1,895)	-
04.	Proceeds from investments in other entities	825,440	6,119
05.	Dividends and profit received from long-term investments and capital contribution	4,958	4,226
II.	Net cash generated by/(used in) investing activities	589,442	(45,759)
CASH FLOWS FROM FINANCING ACTIVITIES
01.	Dividends paid	(165)	(122)
III.	Net cash (used in) financing activities	(165)	(122)
IV.	Net increase/(decrease) in cash	41,359,694	(2,309,075)
V.	Cash and cash equivalents at the beginning of the year	69,500,092	71,809,167
VI.	Cash and cash equivalents at the end of the year (Note 37)	110,859,786	69,500,092