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Driven by the passion for establishing a leading financial institution in

Vietnam and bringing genuine values for customers, stakeholders, and


employees, The Board of Directors, the Board of Management, and the entire
staff strive to build TPBank into a transparent, responsible, innovative and
efficient organization.

ANNUAL REPORT 2014

To customers: we provide latest technology-related products and services


which are simple to access and provide optimum performance for customers.
To shareholders: we are transparent and sustainable entity bringing regular
and long-term economic benefits.
To employees: TPBank stands for second home giving them prosperous life
in both physical and spiritual meanings.
To the society and community: TPBank has always fulfilled its corporate
social responsibility through its annual activities.

Content

www.tpb.vn

Message from the Chairman

06 - 07

Overview

08 - 23

2014 Activity Report

24 - 39

2014 Financial Statements

40 - 65

Corporate Governance

66 - 75

2015 Business Plan

76 - 79

Branch Network

80 - 81

Correspondent & Agent Banks

82 - 83

ANNUAL REPORT 2014

MESSAGE FROM
THE CHAIRMAN

Ladies and Gentlemen,


We have just gone through a year of macro-economic be considered as signs of gradual recovery and stable, inflation is lower
than the target of Parliament. However, 2014 was also the year when we witnessed significant turbulence for Vietnams
banking and finance industry, putting tough challenges on local banks governance and risk management. This was an obstacle
yet a great opportunity for healthy banks with sustainable growth to stand out amongst its peers. TPBank is proudly standing
among those healthy banks thanks to endless effort and support from its shareholders, the Board of Management, and entire
employees. On behalf of the Board of Directors and the Board of Management, I would like to express our sincere thank and
gratitude to our valued shareholders and customers throughout the time.
Looking back to 2014, although obstacles still persisted, with aggressive guidance from the Board of Directors and the Board of
Management, TPBank has proudly announced impressive financial results. By the end of 2014, the banks total assets exceeded
the point of VND fifty thousand billion; profit before tax of VND536 billion, equivalent to 122% of the whole year plan. The
number of customers was doubled compared to that of 2013, reaching nearly 530 thousand of customers; our branch network
was further expanded nationwide.
With our slogan A deeper understanding, TPBank has continuously improved its service quality, increased number of
products and services, more new product launching campaigns with customer orientated approach in Retail banking. Most
recently, becoming the first bank in Vietnam to succesfully implement eBank in HTML5 solution which integrates Mobile
Banking and Internet Banking into one single platform, TPBank has won Most favorite electronic banking solutions award
at My Ebank 2014 contest. In Corporate banking, TPBank has built up good reputation and strong financial capacity by
providing credit facilities to the economy including aviation and supporting industry.
Along with the positive business results, in 2014, TPBank has officially opened its new Head Office located in Hanoi business
Center in Hoan Kiem district. This event has marked a good milestone for the banks brand positioning.
Fire proves gold, adversity proves men, it can be said that TPBank has successfully overcome tough challenges based on the
trust of its valued shareholders and customers loyalty.

Fire proves gold, adversity proves men, it can


be said that TPBank has successfully overcome
tough challenges based on the trust of its valued
shareholders and customers loyalty.

Together with the countrys economic recovery, we all know that we need to continue improving our services and product
quality, corporate governance and further development of new products. Especially, we will focus more on expanding our
market to the South and improve brand awareness in the region. Our biggest goal for 2015 is to make TPBank stand in the
list of Top 15 local banks with one million customer base and total assets of VND70,000 billion.
With strong belief in the professional workforce and endlessly continuos support from the shareholders, I am confident that
TPBank will successfully fulfill its 2015 plan, and to develop sustainable growth for a higher brand awareness & positioning in
order to deliver long-term value to its shareholders and customers.
Yours Sincerely,

Do Minh Phu
Chairman, Board of Directors

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ANNUAL REPORT 2014

OVERVIEW

Established on 5 May 2008, TPBank inherits technological expertise and


financial strength from its strategic shareholders including DOJI Gold and
Gems Group, FPT Corporation, Vietnam Mobile Telecom Services Company
(MobiFone), Vietnam National Reinsurance Corporation (Vinare) and SBI
Ven Holding Pte. Ltd, Singapore.
Our mission is always offering customers most effective financial
solutions and most benefitial banking products and services based on
our advanced technological infrastructure and specialized management
skills. With such efforts, TPBank has received valuable rewards such as
Certificates of merit from the Prime Minister and Governor of the State
Bank of Vietnam; Most Innovative Digital Bank Award 2014 from the
Global Financial Market Review; First runner-up of the whole contest and
Number 1 in Mobile banking in My Ebank.
With its slogan A deeper understanding TPBank aims to become a
Vietnams leading digital bank by improving its quality of products and
services through banking technology development.

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ANNUAL REPORT 2014

BOARD OF DIRECTORS

Mr. Le Quang Tien


Vice Chairman
Mr. Le Quang Tien has been appointed Vice Chairman of TPBank
for the period of 2013-2018. He is currently a member of FPT
Founder Committee.
In 2013, Mr. Le Quang Tien was honored to receive a Merit from
the Governor of the SBV for his great contribution to the project
Restructuring of credit institutions for the period of 2011-2015.
Mr. Le Quang Tien graduated from Kishinev State University in
Physics and Amos Tuck University (USA) in Executive Business
Administration.

Mr. Do Minh Phu


Chairman
Mr. Do Minh Phu has been appointed Chairman of TPBank for the period of 2013-2018.
He is currently Chairman cum CEO of DOJI Gold & Gems Group, the largest enterprise
in Private sector by VNR500. Mr. Do Minh Phu simultaneously holds many significant
positions i.e. Chairman of SJC Hanoi, Chairman of SJC Da Nang, Deputy Chairman of
Vietnam Gold Trade Association, Ambassador of International Gem Association in
Vietnam.
With variety of achievements and outstanding contributions to the economy and society,
Mr. Do Minh Phu has been honored by Senior leaders of the Government and the State
Bank of Vietnam (SBV) such as Third Labour Medal (2014 and 2013); Merit from the
Prime Minister due to his outstanding contribution to the project Restructuring of credit
institutions for the period of 2011-2015 (2013); Merit by the Governor of the SBV for
his Great contributions to Vietnam Banking activities (2013).
Mr. Do Minh Phu graduated with a Bachelor Degree in Hanoi University of Science &
Technology majoring in Radio and Electronics.

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Mr. Do Anh Tu
Vice Chairman
Mr. Do Anh Tu has been appointed Vice Chairman of TPBank for
the period of 2013-2018. He is currently General Director of
Diana Unicharm JSC.
Being known as one of the most talented marketing experts in
Vietnam, Mr. Do Anh Tu has shown his outstanding contribution
to TPBank brand building strategic plan that helps improve the
brand awareness as much as achieve good brand positioning in
the market.
Mr. Tu has achieved a Ph.D from University Prague, Czech Republic.

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ANNUAL REPORT 2014

BOARD MEMBERS

Mr. Phan Tuan Anh


Board Member
Mr. Phan Tuan Anh has been appointed Board Member of TPBank for the
period of 2013-2018.
He is currently Chief of Financial Department, Vietnam Mobile Telecom
Services Company (MobiFone) .
Mr. Tuan Anh graduated with a Master Degree in Economics, Hanoi
National Economics University.

Mr. Eiichiro So
Vice Chairman
Mr. Eiichiro So was appointed a position in TPBanks BOD in April 2014.
He is currently Manager of Overseas Business Department, SBI
Holdings, Inc,.
Previously, Mr. Eiichiro So held key positions i.e. CEO, SBI Royal
Securities, Japan; Senior Vice President, SBI Ven Capital Pte. Ltd.,
Singapore; Director, SBI Royal Securities Plc., Cambodia.
With experience in Japans modern and advanced management
Mr. Eiichiro So and SBI Holding, Inc are helping TPBank in improving
and implementing its strategic development plan.
Mr. Eiichiro So graduated from Chuo University in Accounting. He also
got an MBA from Hitotsubashi University, Japan.

Mr. Pham Cong Tu


Board Member
Mr. Pham Cong Tu joined in the BOD of TPBank in late 2007
during its preparation for the banks establishment. He is a
senior expert in finance and insurance. Mr. Pham Cong Tu is
currently General Director of Vietnam National Reinsurance
Corporation (Vinare).
Mr. Tu has an MBA Degree from the Business Institute,
Belgium and a Bachelor of Finance and Accounting from
University of Finance and Accounting, Hanoi.

Ms. Nguyen Thu Ha


Independent Board Member
Ms. Nguyen Thu Ha has been appointed Independent Board Member of
TPBank for the period of 2013-2018.
She is also an independent Board member of Smartlink Card JSC. She used
to hold key positions such as Deputy General Director of Vietcombank,
Chairwoman of Vietcombank Securities, Chairwoman of Vietnam Bank
Card Association.
Ms. Nguyen Thu Ha graduated with a Master Degree in Business
Administration from Georgetown University, Washington D.C., USA.

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Mr. Megumu Motohisa


Board Member
Mr. Megumu Motohisa has been appointed Board Member of TPBank
for the period of 2013-2018.
Before joining TPBank, Mr. Motohisa has had more than 25-year
experience in finance and securities sector in Japan and Thailand. He
used to hold key positions like CEO, General Director and Chairman of
Matsui Securities, Unimat Yamamaru Securities.
Mr. Motohisa graduated from Tokyo University, Japan and obtained an
MBA from Boston University, USA.

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ANNUAL REPORT 2014

BOARD OF SUPERVISORS

Ms. Nguyen Le Hang


Member of BOS
Ms. Nguyen Le Hang is a Senior Expert of Hanoi Office of SBI Holdings, Inc. Ms. Hang
used to be a Securities, Corporate Finance and Market Analyst at Vietnam Partners
LLC Company.
Ms. Hang graduated with a Master Degree in Business Administration, The Ohio State
University, Fisher College of Business, USA.

Mr. Thai Duy Nghia


Member of BOS
Mr. Thai Duy Nghia has been appointed Member of BOS for the period of 2013-2018.
Mr. Thai Duy Nghia has joined TPBank since June 2008 and held several important
positions like Manager of Quality management and Internal Supervision Department,
Manager of Direct Supervision Department, Deputy Director of Internal Audit. He is
currently Specialized Member of TPBanks BOS.
Mr. Nghia graduated from the Banking Academy majoring in Finance and Credit.

Ms. Nguyen Thi Bao


Head of BOS
Ms. Nguyen Thi Bao has been appointed Head of BOS for the period of 2013-2018.
She has been in the position of Senior Advisor to TPBanks BOD since April 2012.
She used to hold important positions in Vietcombank such as Deputy Director of
Vietcombank Transaction Center and Manager of Vietcombank Investment and Stock
Appraisal Department.
Ms. Bao graduated with a Master degree in Business Administration, Universit Libre
de Bruxelles (ULB) in Hanoi.

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ANNUAL REPORT 2014


Mr. Pham Dong Anh

BOARD OF MANAGEMENT

Mr. Nguyen Hung


Chief Executive Officer
Mr. Nguyen Hung was appointed TPBanks Chief Executive Officer
(CEO) on the 4th of July 2012.
Before joining TPBank, Mr. Nguyen Hung had 20-year experience
working in finance & banking industry at executive positions, such as
General Director of Vietnam Prosperity Bank-VPBank (April 2009-June
2012), Senior Manager of Vietnam Technological and Commercial Joint
Stock Bank-Techcombank (2000-2009).
In 2013, Mr. Nguyen Hung was honored to receive a Merit from
the Governor of the SBV for his great contribution to the project
Restructuring of credit institutions for the period of 2011-2015.
Mr. Nguyen Hung graduated from Hanoi Banking Academy and has
a Master Degree in Business Administration majoring in E-commerce
from Northcentral University, USA.

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Deputy CEO - Head of General Operations


Mr. Pham Dong Anh joined TPBank in 2007 since the preparation period
of bank establishment.
In 2010, he was assigned to be Senior Director in charge of operations.
In April 2011, he was appointed Deputy CEO in charge of Operations
Division, Human Resources, and Network Development.
Since August 2012, Mr. Dong Anh has been in the position of Deputy CEO
cum Head of General Operations.
In September 2014, Mr. Pham Dong Anh was honored to receive a Merit
from the Governor of the SBV for his outstanding achievement in
contribution to banking task completement for the period of 2012-2013.
Mr. Dong Anh has graduated from National Economics University, majoring
in Finance and Banking.
Prior to TPBank, he had experience working for VID Public Bank for 14
years at senior management positions such as Director of Hai Phong
Branch, Director of Hanoi Transaction Office.

Ms. Bui Thi Thanh Huong


Deputy CEO - Chief Financial Officer
Ms. Bui Thi Thanh Huong has joined TPBank
since Sep 2012 as Chief Financial Officer. She
has been appointed Deputy CEO cum Chief
Financial Officer since September 2014.
Previously, Ms. Huong had years of experience
in finance and banking industry holding key
management positions in SeABank i.e. Deputy
Chief Financial Officer, Chief Accountant.
Ms. Bui Thi Thanh Huong has graduated from
National Economics University majoring in
Accounting and Auditing; and achieve an MBA
from France Vietnam Center for Management
Education (CFVG). She also has a CPA certificate
issued by the Ministry of Finance, Vietnam
and a CPA Australia.

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ANNUAL REPORT 2014

Mr. Khuc Van Hoa

BOARD OF MANAGEMENT

Deputy CEO - Head of Sales and Distribution


Mr. Khuc Van Hoa was appointed Deputy CEO cum Head of Sales and
Distribution on 15 Sep 2012. Prior to TPBank, Mr. Hoa had held key
management positions at Vietnam Technological and Commercial Bank
(Techcombank) and Military Bank (MB) i.e. Deputy Chief Risk Officer,
Director of SME Center, Deputy Director of Big Corporations.
Mr. Hoa has an MBA from France Vietnam Center for Management
Education (CFVG).

Mr. Nguyen Huu Thanh


Deputy Head of Legal & Compliance,
Loan Supervision & Management
Mr. Nguyen Huu Thanh has joined TPBank since May
2011. He was appointed Deputy Head of Legal &
Compliance, Loan Supervision & Management since
June 16th, 2014.
Mr. Thanh has 15 years of experience in law banking
sector. Prior to TPBank, Mr. Thanh worked at the State
Bank of Vietnam, then moved to Techcombank holding
position of Deputy Head of Legal and Compliance.
Mr. Thanh holds a Master Degree of Law at the State
Institute of Law, Vietnam and a Master Degree of Public
Policy at the University of Tsukuba, Japan.
Mr. Nguyen Viet Anh

Mr. Nguyen Hong Quan

Deputy CEO - Head of Treasury and Capital Market

Deputy CEO - Chief Risk Officer

Mr. Nguyen Viet Anh was appointed Head of Treasury and


Capital Market - Deputy CEO of TPBank since March 2011.
Prior to TPBank, Mr. Nguyen Viet Anh had over 10 years
working at Vietnam Technological and Commercial
Joint Stock Bank (Techcombank) in several important
positions including Acting Head of Treasury and
Financial Market; CEO of Techcom Capital (Techcombank
Fund Management Company); Director of Foreign
Exchange and Derivative Products Center; Director
of the Commodity Exchange Center Head of Trading,
including Currencies, Interest Rate and Derivatives
Trading, Treasury Division. Mr. Viet Anh has an MBA
from Washington State University, USA; Before that, he
graduated from Institute of Foreign Relations and from
Hanoi National University.

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Mr. Nguyen Hong Quan was appointed Chief Risk


Officer - Deputy CEO since February 2012. Prior
to TPBank, he had worked in finance and banking
sector for 15 years, holding important positions such
as Director of Risk Management, Deputy Director of
Internal Compliance and Control, in charge of costs
administration database at CitiBank Hanoi Branch;
Acting General Director of An Binh Securities.
Mr. Quan has an EMBA from Asian Institute of
Technology (AIT). Before that, he graduated from
the Hanoi Foreign Trade University majoring in
International Trade and obtained a B.A. Degree from
Hanoi University of Transportation.

Mr. Le Hong Nam


Chief Credit Officer - Deputy CEO
Mr. Le Hong Nam joined TPBank in 2009 as
Manager of TPBank Ho Chi Minh Branch. Since
March 2012, he was appointed Deputy CEO
covering Southern areas. Later on, he became
Chief Credit Officer cum Deputy CEO.
Before that, he had 20 years of holding key
positions in finance and banking industry such as
Head of Credit and Investment, ShinhanVina Joint
Venture Bank; Manager of Ho Chi Minh Branch,
GPBank; Deputy General Director, Mekong
Development Commercial Joint Stock Bank.
Mr. Nam has a Master Degree in Finance and
Banking, Banking University of Ho Chi Minh City.

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ANNUAL REPORT 2014


Mr. Bui Quang Cuong

BOARD OF MANAGEMENT

Head of Information Technology


Mr. Bui Quang Cuong joined TPBank in May 2007 since the preparation period of bank establishment.
Mr. Cuong had held many key positions i.e. Director of Information Technology Center and
Acting Director of Card and e-Banking Center of TPBank.
In September 2014, Mr. Bui Quang Cuong was honored to receive a Merit from the
Governor of the SBV for his outstanding achievement in contribution to banking task
completement for the period of 2012-2013.
Mr. Cuong has a Bachelor of Science from Hanoi University. Prior to TPBank, Mr. Cuong had
22-year experience in banking information technology as Manager of Software Centre,
3C company; and Head of IT Department, VID Public Bank.

Mr. Nguyen Xuan Thanh


Head of Human Resources
Mr. Nguyen Xuan Thanh has joined TPBank since June 2014 as Head of Human Resources.
Prior to TPBank, Mr. Thanh has over 14 years of experience in human resources
management at local banks such as Techcombank, VPBank, HDBank at positions of
Director of Human Resources and Training Director.
He holds a Bachelor of Economics at the National Economics University.

Mr. Dinh Viet Cuong


Head of Corporate Banking
Mr. Dinh Viet Cuong was appointed TPBanks Head of Corporate Banking since 5 July 2012.
Previously, Mr. Cuong had years of experience in Vietnam Technological and Commercial
Joint Stock Bank (Techcombank) holding key management positions i.e. Manager of Retail
Banking Service Department, Director of Chuong Duong Branch, Deputy Director of Retail
Department, Director of AMC Company.
Mr. Cuong has an MBA from The National Economics University.
Mr. Dinh Van Chien
Head of Retail Banking
Mr. Dinh Van Chien was appointed Head of Retail Banking on 4th December 2013.
Prior to TPBank, Mr. Chien has over 18 years of experience in Banking and Marketing, and
had held many management roles at local and overseas organizations including Deputy
Director of Vietcombank Card Centre, Marketing Manager at Johnson & Johnson Medical
Vietnam, Assistance VP at OCBC Personal Financial Services in Singapore, Director of
Product Development Centre, Retail Banking at VPBank.
Mr. Chien graduated from Foreign Trade University and has an MBA in Banking and Finance
from University of Notre Dame, USA, under Fulbright Scholarship program.

Mr. Nguyen Lam Hoang


Head of Direct Sales and Alternative Channels
Mr. Nguyen Lam Hoang was appointed Head of Direct Sales and Alternative Channels on
4th December 2013.
Previously, Mr. Hoang had years of experience in finance and banking holding key positions
at Techcombank, i.e. Northern Retail Director of Personal Finance Services Division;
Northern SSP Project Manager; Deputy Director at SSE Center, S&D Department; Director
at S&D Center, S&D Department.
Mr. Hoang has an MBA from France Vietnam Center for Management Education (CFVG).

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21

ANNUAL REPORT 2014

ORGANIZATION STRUCTURE
2014 - 2015

Nomination &
Remuneration Committee
(NORCO)

Annual
General Meeting
(AGM)

Board of Supervisors
(BOS)

Board of Directors
(BOD)

Internal Audit
(IA)

Audit and Risk Committee


(ARCO)

Executive Committee
(EXCO)

Assets and
Liabilities Committee
(ALCO)
Credit Committee
(CRCO)

Board of Management
(BOM)

Investment Committee
(INCO)

Operations

HR

IT

OPERATION SUPPORT

PR
&
Marketing

Finance
&
Accounting

Credit
Assessment
&
Risk
Management

Credit

MANAGEMENT SUPPORT

Legal
&
Compliance

Sales
&
Distribution

Direct Sales
&
Alternative
Channels

Retail
Banking

Corporate
Banking

Capital
Market

Investment
&
Custodian
Banking
Division

SALES

Branches

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23

ANNUAL REPORT 2014

2014 ACTIVITY
REPORT

2014 has marked a pivotal year for TPBank with remarkable achievements. Taking into account effortless contribution
from the management team as well as employees, TPBank has made great strides in expanding branch network,
developing sales and distribution channels, and diversifying products and services to get ready for bigger steps in the
coming years.

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25

ANNUAL REPORT 2014

TPBANKS 2014 HIGHLIGHTS

Certificate of Merit from the State Bank of


Vietnam (SBV): On the date of December 7th
2014, Mr. Nguyen Toan Thang, Deputy Governor of
the SBV, had presented Certificate of Merit to
TPBank representative for the banks achievements
in investment and application for electronic banking
development.

Successfully upgraded Core Banking System


to most updated version FCC 12.0.3: The
latest version of Core Banking was developed
based on Web technology (on Java) integrating
two independent applications, Flex Branch and
Host, into a single one. Compared to 7.2, version
12.0.3 by Oracle FLEXCUBE is considered a
better harmonized one for core banking, asset
management and online banking solutions. This
was one of the most important projects for
TPBank in 2014.

Total number of customers surpassed 500,000 point.


Compared to 2013, TPBanks number of customers was
increased more than double.

No.1 in Mobile Banking First Runner up in My Ebank contest:


Participating in My Ebank contest organized by
VnExpress, Smartlink, and the SBV, TPBank was
honored to win awards over 29 banking and
financial institutions. Those are Number 1 in Mobile
Banking, Top 5 Internet Banking, and First Runner-up
prize named as Most favorite electronic bank in
Vietnam.

Total Assets exceeded

51.000 Billion
528,174 customers

Accumulated profits (after credit risk


provisions) of VND536 billion was equivalent
to 122% of year end target. Credit quality was
controlled effectively when NPL ratio stood at
1.01%. Other key financial figures also
exceeded the plan including total deposits,
over VND47 trillion or 111% of year end plan.

Most Innovative Digital Bank Vietnam


2014: In November, TPBank had
proudly received Most Innovative
Digital Bank Vietnam 2014 Award
from internationally prestigious Global Financial
Market Review (GFM) for its innovative eBank
product an integration of Internet Banking and
Mobile Banking in HTML5. This was the first time
when a Vietnamese local bank won such a prize.

TPBank Building Grand Opening:


On 27th of December 2014, TPBank had
conducted Grand Opening event for its new
Head office located in 57 Ly Thuong Kiet Street,
Hoan Kiem District, called TPBank Building.
It is a 10-storey and 4-basement building which
facilitates nearly 1,000 office staff of the Bank.

CORE
BANKING

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Further expansion - Sustainable development


In 2014, TPBank has launched 5 new branches
to expand its market and customer network
across the country, including:
TPBank Thanh Do (Ha Noi) opened January 17th;
TPBank Ben Thanh (Ho Chi Minh City) opened
January 24th;
TPBank Binh Duong (Binh Duong Province)
opened February 28th ;
TPBank West Ha Noi (Ha Noi) opened June 16th;
TPBank Hung Vuong (Ho Chi Minh City) opened
July 7th.

FCC
12.0.3

New product launching campaigns

In 2014, TPBank had introduced a number of new products and services that were welcome by customers.
Co-branded Card: May 29th 2014, MobiFone and TPBank had launched co-branded cards which consist of payment and identification
functions. In December 2014, at the Visa Annual Awards Night, MobiFone-TPBank co-branded Visa Platinum Card had proudly received
"Leadership in Telco Co-brand Segment Product Launch 2014" Award.
Secured Overdraft: TPBank is the first bank in Vietnam to provide this Secured Overdraft service with an overdraft limit up to 80% over
an unused amount of savings book.
New eBank with HTML5 technology: Being the first bank in Vietnam using HTML5 technology, TPBank eBank has received positive
feedback from customers after launching. This is a significantly outstanding product of the year that helps TPBank continuously achieve
global and national awards.
Unique mPOS payment equipment: TPBank is one of the rarely first banks in Vietnam who have deployed mPOS payment equipment
and electronic billing. Along with non-cash payment trend, mPOS solution is considered a unique tool for card payments anytime and
anywhere.
Letter of Guarantee validated by QR Codes: TPBank is the first bank in Vietnam who applied this technology in letter of guarantee
validation, allowing secured and time-saving service for customers of corporate banking.

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ANNUAL REPORT 2014

2014 ACTIVITY REPORT

In 2014, Vietnam banking and financial sector continued to


face obstacles such as NPL ratio remained high, credit quality
is not as desired. However, TPBank performance over the
past year shows certain progress in implementing the
monetary policy of the Bank. Total payments by December
31st 2014 increased by 15.99% y-o-y; total lending to the
economy grew by 12.62%; deposit rose 15.76%; foreign
exchange reserves increased largely and exchange rate was
controlled within targeted band.

For TPBank, business activities in 2014 were positive and


even higher than expected; operating expenses and NPLs
were controlled effectively within target. Credit growth
was 52.5% compared to that of 2013, much higher than
the reported credit growth rate of banking industry. This is
considered an important prerequisite for TPBank to continue
future growth and expansion.

Key financial figures


Unit: VND billion, %
No.

Item

Total Assets

Chartered capital

FY 2013

FY 2014

2014
Target

Actual/Target
+/-

Y-O-Y

32,088

51,478

50,000

1,478

103%

160%

5,550

5,550

5,550

100%

100%

Total deposits, in which

28,067

46,725

42,000

4,725

111%

166%

3.1

Deposits from customers

14,332

21,623

25,000

(3,377)

86%

151%

3.2

Deposits, loans from other credit institutions

13,735

25,102

17,000

8,102

148%

183%

Loans and investments, in which

16,365

24,960

25,000

(40)

100%

153%

4.1

Loans and advances to customers

11,926

19,839

19,580

259

101%

166%

4.2

Debt securities issued by economic


entities

4,439

5,121

5,420

(299)

94%

115%

1.97%

1.01%

<2.5%

171%

51%

381

536

438

98

122%

141%

3.44%

134%

Non-performing Loans

Profit before tax

CAR

19.81%

15.04%

>9%

ROE (*)

10.33%

13.50%

10.07%

Note (*): ROE = Net profit/Average equity

By end of December 2014, TPBanks total assets reached VND51,478 billion, increased more than VND19,000 billion or
60.43% growth compared to last year.
Total deposits were VND 46,725 billion, in which deposits from customers was VND21,623 billion, rose by VND7,291 billion
or 51% y-o-y while deposits from other credit institutions grew by VND11,400 billion.
Total lending figure (including corporate bonds) was VND24,960 billion, rose by VND8,600 billion or 53% higher than that
in 2013. Among those, loans to customers were VND19,839 billion, increased by VND7,900 billion or 66.4% y-o-y. Credit
quality was improved when NPLs ratio decreased from 1.97% in 2013 to 1.01% in 2014.
Total net operating income in 2014 reached VND1,151 billion in which interest income was VND979 billion accounted for
85.03%; non-interest income was VND172.3 billion accounted for 15%. Operating income before credit risk provisions was
VND486.2 billion.

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29

ANNUAL REPORT 2014

Deposits & Loans to Customers and Number of customers Trend

Safe and Effective


Credit activities
18,364

20,000

Credit activities

18,000
16,000

10,000

8,000

8,000
6,000

Loans to customers

2,000

12,266

Credit policy was built closely based 14,000


on TPBanks business
12,000
strategy. As a result, lending and asset
evaluation process
10,000
were effectively improved in recent years.

12,000

Deposit from customers

16,000

12,127

14,000
Number of customers

18,000

4,000

15,000

8,229

7,200
3,697

10,000
5,000

Risk management, Supervision and Internal


audit operations

20,000

FY 2013

18,000

18,000
14,000

14,000

12,000

12,000

Number of customers

Number
of Employees

By
10,000

from customers
end of 2014, deposits fromDeposit
customers
reached
billion, 51% higher than
that
of
2013;
3,707
Loans to customers
In which, demand deposit from customers
was over
6,000
2,066
VND3,259 billion accounted for 15%, better than industry
4,000
CASA ratio which helps banks to reduce cost of fund and
2,000
increase profit. Foreign currencies deposit was VND3,707
billion, an increase
FY 2013of VND1,642FYbillion
2014 higher than last
year, accounted
for
17%
of
total
deposits.
This activity of
Foreign currency
VN
the Bank helps to improve foreign currency transactions
with other credit institutions and customers.

10,000

2.500

VND21,623
8,000

8,000
6,000

3,259

2,205

4,000
2,000

FY 2013

FY 2014
Time Deposit

Demand Deposit

2.000
1.500
1.000
500

12,639
8,229
Unit:
VND billion

15,000

16,000

10,000
8,000
6,000
4,000
2,000

Short-term loans
Number
of Employees

3,707

6,000

3,259

2,205

2,066

4,000

2.000

FY 2013

Time Deposit

15,000
2008
2009
10,000

12,639

8,229
2012

4.32

2009

2010

Current/
eBank
Savings account

Card
Products

Credit
Products

Year

2013

43.83%

Domestic
International
payment services payment services

18.87%
0.74%

2014

2012

1
23.75%

Deposits classification by type of currency

2013

2011

2014

By the end of 2014, total investment in government bond


and debt securities issued by other credit institutions of
5
nearly VND9,099 billion Point
accounted
for 64% of4.50
the portfolio
4.47
4.49
in order to ensure the banks liquidity and diversification
3.95
4
of investment structure. During
the year, TPBank had
invested VND4,700 billion in corporate bonds issued by
large enterprises with healthy
3 financial status, attractive
interest rates and high liquidity in the market. Deposits and
loans at other banks reached
over VND10,907 billion for
2
the year.

VN

7,200

2010 3,6972011

TPBanks investment portfolio is managed by Treasury


department to ensure profitability, liquidity and compliance
with the provisions of the State Bank of Vietnam.

FY 2014

Foreign currency

500
Deposits classification by term

Treasury activities: investments, money market activities,


foreign currency and gold trading

FY 2014

Demand Deposit
1.000

4.41

2,000

1.500
FY 2013

4.44

8,000

2.500

Point 5

10,000

Thanks to the Banks efforts in dealing with bad debts and


good credit growth and quality, its NPLs ratio fell from
1.97% in 2013 to 1.01% by the end of 2014. In addition
to that, in 2014, TPBank had recovered VND248 billion of
principal and bonds from Vinalines case.

2008

17,916

16,000
12,266
FY 2014
14,000
Medium and long-term loans
12,000

FY 2013

Unit: VND billion

18,000

12,127

14,000

7,200

3,697

5,000

18,000

12,000

18,364

10,000

20,000

FY 2014
Medium and long-term loans

Short-term loans

12,266

Gold and foreign exchange trading activities had


achieved better than original plan despite difficult
market environment. Total operating income from foreign
3,707
currencies and gold trading was VND35 billion, 3 times
higher than that of 2013.

loans to customers in 2014


were VND19,8392,066
6,000
2,205 Outstanding 3,259
billion, VND7,913 billion increased or 66.4%
4,000 higher than that
of 2013; In which, short-term loans were
2,000over VND12,639
Through networking events and institutional relationship
billion accounted for 64% while medium and long-term
management,
FY 2013
FY
2014
FY
2013
FY 2014 Financial Institution Center of Treasury
loans were over VND7,200 billion accounted for 36.3% of
division
has enhanced TPBanks image and reputation
total
loans
to
customers.
Time Deposit
Foreign currency
VN
Demand Deposit
towards other banks. As a result, TPBank credit limit for
MM, FX, TF (clean) rose nearly 3 times higher than those
of 2013, increased from VND4,500 billion to more than
12,639
VND12,000 billion by end of 2014.

Total assets of TPBank in financial year 2014 increased dramatically in which total deposits went 66.5% up or VND18,658
billion; total lending was up by 52.3% or VND8,595 billion. Number of customers continued to grow to 283,000 or 2.15 times
more than that of 2013, reaching nearly 530,000 customers by end of 2014. This figure marked an important platform for
TPBank to further develop the Bank business
in the coming years.
17,916
18,364

Fund16,000
mobilization 12,127
activity rose by 51% y-o-y 16,000

For the
existing investment trust portfolio, the bank
17,916
continued to manage and minimize losses. In 2014, TPBank
collected VND250 billion from FR company relating to a real
estate investment.

12.8%

Investment portfolio in 2014

It was a remarkable year for TPBank in terms of risk


management activities when NPLs ratio was controlled
below target, operational loss events and potential risks
were managed within acceptable levels.
In overall scale, the Bank had improved its legal compliance
and interaction among different levels (mid and back
offices) in collaboration to identify gaps of management
that showed positive results in risk mitigation of TPBank.
Also in 2014, Risk Management Division had initiated
foundation for 3 to 5-year plan towards Basel II compliance,
with standards equivalent to Top 10 banks in the market
There are a number of operational risk management items
in 2014 including establishment of Operational
risk management Council; introduction of regulations
on self-assessment and compliance, implementation of
operational risk
4.86at Head office departments; regulations
on KRI (Key risk indicators), coordination and information
sharing
4.12 between Audit/Internal Control to construct
Risk Profiles for operational risk; identification of credit
card operational risks, records management; evaluation
of a number of activities related to the management of
information technology system and Business Continuity
Plan (BCP).

implemented
Year

From 2008 till now, regulations on the capital adequacy


ratio issued by the SBV has been strictly complied by
TPBank. At the end of 2014, the required ratios were as
follows:
Capital
Custodian

Financial
Institutions Market services

banking

- Quick Ratio was 30.27%


- Current Ratio for VND was 167.87%.

Unit: %

5,000
Point 5
4

4.44

304.41www.tpb.vn
4.32
Number
of Employees

5
FY 2013 Point
3.95

Short-term loans

FY 2014 4.50
4.47
Medium and long-term loans
4

4.86
4.49
4.12

31

16,000
16,000

12,127
12,127

14,000
14,000

2,205
16,000
16,000

4,000

12,000
12,000

FY 2013

6,000
6,000
4,000
4,000

8,000
8,000
6,000
6,000

3,259
3,259

2,205
2,205

8,229

15,000
10,000

FY
FY2014
2014

5,000

Time
TimeDeposit
Deposit

7,200
3,697

FY
FY2013
2013

FY
FY2014
2014

Foreign
Foreigncurrency
currency

VN
VN

FY 2013

By end of 2014, total number of TPBank employees was 1,910


persons, increased 727 or 61% higher than that of 2013. During
8,229
the year, TPBank had carried out 178 training15,000
courses for8,229
7,830
15,000
3,697
3,697
turns of staff. Training programs were well organized
including
10,000
10,000
orientation and soft skills training. TPBank 5,000
also
5,000 implemented
online compliance tests instead of conducting periodical training
FY2013
2013
courses; conducting train-the-trainer rather than hiringFY
third
Short-term
Short-term
loans
loans
party trainer. TPBank has also implemented new payroll
scheme
Number
Number by Hay Group. The bank
following new HRM system consulted
of
ofEmployees
Employees
has re-signed labor contracts with
employees under new salary
2.500
2.500
structure: Basic Salary + Efficient
Salary in order to improve
productivity and working efficiency on monthly basis. On the
2.000
2.000
other hand, assessments of monthly key performance
Point 5indicators
4.41
(KPIs) have been applied widely throughout the system. 4.44
1.500
1.500

FY 2014

Short-term loans

Medium and long-term loans

Number
12,639
12,639
of Employees
2.500

7,200
7,200

2.000
1.500
1.000

FY
FY2014
2014

Medium
Mediumand
andlong-term
long-termloans
loans
500
0
2008

2009

2010

2011

2012

2013

Human Resources
Point 5 Development
4.32

4.47

3.95

4.50

2014

Year

4.86
4.49
4.12

Improved processes for better


1.000
1.000 quality of services
3

500
500 banks in Vietnam in term of quality of service. Over the years, the Bank has continuously
TPBank is ranked among the top local
1
1
conducted customer studies and market research to figure
out customer demands and market opportunities.
Based on the
00 customer-oriented programs; improved quality of services by promoting senior staffs
findings, TPBank had initiated many
0 2010
Year0
2008
2008
2009
2009
2010
2011
2012
2012
2013
2014
2014 Year
training and backup teller in order to enhance
professional
skills 2011
for
at2013
every transaction
point.
Domestic
International
Financial
Current/
eBank employees
Card
Credit
Savings account

Point 55
Point

4.44
4.44

4.41
4.41

4.32
4.32

44

Information Technology (IT)

Corporate Banking

Based on its modern technology infrastructure, IT system


at TPBank has been developed following the most updated
and efficient platform in consistent with global banking
industry, ensuring TPBanks vision of becoming a Digital
Bank in Vietnam.

During 2014, TPBanks Corporate Banking had launched


a number of core products including: Refinancing loans,
Winter-Spring Grain collection financing, Car loans for
business, Corporate Credit cards, Transactions processing
via fax, etc.

In 2014, TPBank has successfully implemented several


projects including Core banking system (Core banking)
upgraded to version 12.0.3, PCI-DSS project, HTML5
technology project, etc.

Besides, marketing and promotional programs were also


implemented to attract customers i.e. Import-Export
business promotions, low interest on corporate car loans;
new customers development program, VND1,000 billion
low interest rate loan for supporting industry.

Retail Banking

Products

Point
Point 55
3.95
3.95

33

22

22

11

11

Capital
Institutions Market services

4.86
4.86
4.47
4.47

4.50
4.50

4.49
4.49
4.12
4.12

00

00
Current/
eBank
Current/
eBank
Savingsaccount
account
Savings

payment services payment services

Products

44

33

Card
Card
Products
Products

Credit
Credit
Products
Products

Domestic
Domestic
International
International
payment
paymentservices
services payment
paymentservices
services

Financial
Financial
Capital
Capital
Custodian
Custodian
Institutions
Institutions Market
Marketservices
services banking
banking

Other customers

TPBank had a significant year of new Retail banking product


and service launching campaigns. They have been widely
recognized by customers and received positive feedback
including: Car loans/ Home loans, Secured overdraft,
securities investment loans, eCounter card, MobiFone-TPBank
co-branded card, new version of TPBank eBank,etc. With a
variety of such impressive products and services, Retail
banking had stepped on the point of 500,000 customers
by the end of 2014 and promised to go furthermore the
year after.

32 www.tpb.vn

VN

12,639

2,000
2,000
FY
FY2013
2013

3,707
3,707

FY 2014

Foreign currency

2,066
2,066

4,000
4,000

Demand
DemandDeposit
Deposit

FY 2013

Time Deposit

Demand Deposit

2,000
2,000

Human Resources

FY 2014

10,000
10,000

8,000
8,000

2,066

4,000
2,000

12,000
12,000

10,000
10,000

ANNUAL REPORT 2014

12,266
12,266

14,000
14,000

2,000

33

Custodian
banking

ANNUAL REPORT 2014

Branch network and customer development

Corporate Social Responsibility

In 2014, TPBank had expanded its network and customer


base in both traditional and alternative channels. By
end of the year, the Bank has 01 Head office and 38
branches, transaction offices and saving counters
located all over the country.

December 2014, TPBank and the For Community Club


had jointly organized a charity trip to Vang Ma Chai in Lai
Chau to present gifts to the poor children;

TPBank had opened 05 new branches in 2014,


including 02 in Hanoi, 02 in Ho Chi Minh City, and 01
branch in Binh Duong Province;

September 2014, TPBank continued to sponsor Light


a Dream, Cross Rivers to Study scholarship program for
the Third time. This event has been organized by Vietnam
Association for Education Promoting;

In addition, the Bank had relocated 02 branches TPBank Danang and TPBank An Giang;

September 2014, TPBank had presented scholarships to


students of the Banking Academy (2014-2018);

By the end of 2014, TPBank had received approvals


to open five more branches in Quang Ninh, Daklak, Nghe
An, Hanoi, and Ho Chi Minh city;

March 2014, TPBank had sponsored Ciputra Hanoi-Yonex


Sunrise Vietnam International Challenge 2014 in an effort
to promote physical activities and sportsmanship;

Also in this year, TPBank had successfully transferred


four saving counters into transaction offices, i.e. TPBank
Kham Thien, TPBank Hai Ba Trung, TPBank Dong Do, and
TPBank Hoang Mai.

TPBank Trade Union has formed a charity Fund namely


Hearts in Hands and regularly organized donations and
charity activities with TPBank employee-volunteers.

In recent years, TPBanks customer base has been


increased dramatically reaching to the number of 528,174,
an increase of 2.15 times higher than that of 2013; In
which, active accounts and multi-service users have been
improved significantly.

Brand awareness and public relations


In 2014, TPBank had conducted several corporate and
product communications campaigns that help increase
brand awareness, brand share-of-voive, and enhance
brand positioning. Those campaigns had been run in both
above the line and below the line channels, including TV,
radio, prints, online, etc. and received positive feedback
from customers. Brand popularity level was also
increased.

Representative from TPBank (no.4 from left) receives a Plate from the Organizer of
Light a Dream, Cross Rivers to Study organizer.

34 www.tpb.vn

35

ANNUAL REPORT 2014

Major Awards
December 2014, Certificate of Merit from the Governor of the State Bank of Vietnam for the banks achievements in investment
and application for electronic banking development;
December 2014, Leadership in Telco Co-brand Segment Product Launch Award from Visa for MobiFone-TPBank Visa Platinum
co-branded card;
November 2014, First prize in Mobile Banking and First Runner-up prize named as Most favorite electronic bank in Vietnam at
My Ebank 2014 contest by Vnexpress.net;
November 2014, Most Innovative Digital Bank Vietnam 2014 Award by Global Financial Market Review (GFM);
September 2014, the Governor of the State Bank of Vietnam presented Certificates of Merit to four individuals and three divisions
of TPBank for their outstanding achievement in contribution to banking task completement for the period of 2012-2013;
April 2014, Best business and entrepreneur in Vietnam Trade and Services Award 2013.
April 2014, Excellent Brand of Vietnam Award by Vietnam Economic Times;
March 2014, The Vietnam Believe & Use Award by Vietnam Economic Times

2014 Year end Party at Meli Hanoi

Mr. Do Minh Phu, Chairman of TPBank BOD, receives First - runner up prize at My Ebank 2014

36 www.tpb.vn

TPBank representative receives trophy of Excellent Brand of Vietnam Award

37

ANNUAL REPORT 2014

38 www.tpb.vn

39

ANNUAL REPORT 2014

FINANCIAL STATEMENTS

CONTENT
General information

40 www.tpb.vn

42-43

Report of the Board of Management

44

Independent auditors report

45

Balance sheet

46 - 49

Income statement

50 - 51

Cash flow statement

52 - 53

Notes to the financial statements

54 - 65

41

ANNUAL REPORT 2014

GENERAL INFORMATION

GENERAL INFORMATION (continued)


BOARD OF SUPERVISORS
Members of the Board of Supervisors during the year and at the date of this report are as follows:

THE BANK

Name

Tien Phong Commercial Joint Stock Bank (the Bank) is a Joint Stock Commercial Bank incorporated and registered in the
Socialist Republic of Vietnam in 2008. The Bank was established in accordance with Operation License No.123/GP-NHNN
issued by the Governor of the State Bank of Vietnam (The SBV) on 05 May 2008; which has been then amended and
supplemented in accordance with Decision No. 2132/QD-NHNN dated 27 September 2011 by the Governor of the SBV.
The initial Certificate of Business Registration was dated 12 May 2008 and the most recent 20th amendment of Business
Registration on 12 September 2014.
The Banks main activities are to provide banking services including mobilizing and receiving short-term, medium-term, and
long-term deposits from organizations and individuals; making short-term, medium-term, and long-term loans and advances
to organizations and individuals based on the nature and capability of the Banks sources of capital; foreign exchange
transactions, international trade financial services, discounting of commercial papers, bonds and other valuable papers, gold
trading and providing other banking services as approved by the State Bank of Vietnam (SBV).
Location and Operational network
The Banks Head Office is located at TPBank Building, 57 Ly Thuong Kiet Street, Hoan Kiem District, Hanoi, Vietnam.
As at 31 December 2014, the Bank has one (01) Head Office, fifteen (15) branches, nineteen (19) transaction offices and
four (04) saving counters located in cities and provinces all over country. (As at 31 December 2013, the Bank has one (01)
Head Office, thirteen (13) branches (in which three (03) branches were approved the establishment on 27 December 2013
but not yet go into operation in 2013), nineteen (19) transaction offices and four (04) saving counters located in cities and
provinces all over the country).

BOARD OF DIRECTORS
Members of the Board of Directors during the year and at the date of this report are as follows:
Name

Position

Date of appointment/removal

Position

Date of appointment/removal

Ms. Nguyen Thi Bao

Head of the Board

Appointed for the period from 2013 to 2018 in accordance with


Resolution No. 01/2013/NQ-TPB.DHDCD dated 12 April 2013 and
Resolution No. 10/2013/NQ-TPB.HDQT dated 12 April 2013

Mr. Thai Duy Nghia

Specialized member

Appointed for the period from 2013 to 2018 in accordance with


Resolution No. 01/2013/NQ-TPB.DHDCD dated 12 April 2013 and
Resolution No. 10/2013/NQ-TPB.HDQT dated 12 April 2013

Ms. Nguyen Le Hang

Unspecialized member

Appointed for the period from 2013 to 2018 in accordance with


Resolution No. 01/2013/NQ-TPB.DHDCD dated 12 April 2013 and
Resolution No. 10/2013/NQ-TPB.HDQT dated 12 April 2013

BOARD OF MANAGEMENT AND CHIEF ACCOUNTANT


Members of the Board of Management and Chief Accountant during the year and at the date of this report are as follows:
Name

Position

Date of appointment/removal

Mr. Nguyen Hung

Chief Executive
Officer (CEO)

Appointed on 04 July 2012

Mr. Pham Dong Anh

Deputy CEO

Appointed on 08 April 2011

Mr. Nguyen Hong Quan

Deputy CEO

Appointed on 01 February 2012

Mr. Nguyen Viet Anh

Deputy CEO

Appointed on 07 March 2011

Mr. Le Hong Nam

Deputy CEO

Appointed on 02 March 2012

Mr. Khuc Van Hoa

Deputy CEO

Appointed on 15 September 2012

Ms. Bui Thi Thanh Huong

Deputy CEO

Appointed on 09 September 2014 in accordance with Resolution No. 08/2014/


NQ-TPB.HDQT

Mr. Do Minh Phu

Chairman

Appointed for the period from 2013 to 2018 in accordance with Resolution No. 01/2013/NQ-TPB.
DHDCD dated 12 April 2013 and Resolution No. 10/2013/NQ-TPB.HDQT dated 12 April 2013

Mr. Le Quang Tien

Vice - Chairman

Appointed for the period from 2013 to 2018 in accordance with Resolution No. 01/2013/NQ-TPB.
DHDCD dated 12 April 2013 and Resolution No. 10/2013/NQ-TPB.HDQT dated 12 April 2013

Mr. Nguyen Thanh Long

Deputy CEO

Appointed on 01 June 2013. Resigned on 31 July 2014 in accordance with


Decision No. 1289A/2014/QD-TPB.QTM

Mr. Do Anh Tu

Vice - Chairman

Appointed for the period from 2013 to 2018 in accordance with Resolution No. 01/2013/NQ-TPB.
DHDCD dated 12 April 2013 and Resolution No. 10/2013/NQ-TPB.HDQT dated 12 April 2013

Ms. Le Cam Tu

Chief Accountant

Appointed on 26 April 2013 in accordance with Resolution No.11/2013/NQ-TPB.


HDQT

Mr. Eiichiro So

Vice - Chairman

Appointed for the period from 2013 to 2018 in accordance with Resolution No. 01/2014/NQ-TPB.
DHDCD dated 17 April 2014 and Resolution No. 05/2014/NQ-TPB.HDQT dated 17 April 2014

Mr. Megumu Motohisa

Member

Appointed for the period from 2013 to 2018 in accordance with Resolution No. 01/2013/NQ-TPB.
DHDCD dated 12 April 2013 and Resolution No. 05/2014/NQ-TPB.HDQT dated 17 April 2014

Ms. Nguyen Thu Ha

Independent
Member

Appointed for the period from 2013 to 2018 in accordance with Resolution No. 01/2013/NQ-TPB.
DHDCD dated 12 April 2013 and Resolution No. 10/2013/NQ-TPB.HDQT dated 12 April 2013

Mr. Pham Cong Tu

Member

Appointed for the period from 2013 to 2018 in accordance with Resolution No. 01/2013/NQ-TPB.
DHDCD dated 12 April 2013 and Resolution No. 10/2013/NQ-TPB.HDQT dated 12 April 2013

Mr. Phan Tuan Anh

Member

Appointed for the period from 2013 to 2018 in accordance with Resolution No. 01/2013/NQ-TPB.
DHDCD dated 12 April 2013 and Resolution No. 10/2013/NQ-TPB.HDQT dated 12 April 2013

Member

Appointed for the period from 2013 to 2018 in accordance with Resolution No. 01/2013/NQ-TPB.
DHDCD dated 12 April 2013 and Resolution No. 10/2013/NQ-TPB.HDQT dated 12 April 2013
Resigned in accordance with Resolution No. 01/2014/NQ-TPB.DHDCD dated 17 April 2014

Mr. Kenichi Abe

42 www.tpb.vn

LEGAL REPRESENTATIVE
The legal representative of the Bank during the year and at the date of this report is Mr Do Minh Phu, the Chairman.
Mr. Nguyen Hung, the Chief Executive Officer is authorized to sign the financial statements for the year ended 31 December
2014 in accordance with the Authorization Letter No. 111/2012/QD-TPB dated 10 August 2012 of Mr. Do Minh Phu.

AUDITORS
The auditors of the Bank are Ernst & Young Vietnam Limited.

43

ANNUAL REPORT 2014

REPORT OF THE BOARD


OF MANAGEMENT

INDEPENDENT
AUDITORS REPORT
Reference: 60849753/17419598

The Board of Management of Tien Phong Commercial Joint Stock Bank (the Bank) is pleased to present this report and the
financial statements of the Bank for the year ended 31 December 2014.

To:

THE BOARD OF MANAGEMENTS RESPONSIBILITY IN RESPECT OF THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Tien Phong Commercial Joint Stock Bank (the Bank) as prepared
on 24 March 2015 and set out on pages 6 to 65, which comprises the balance sheet as at 31 December 2014, the income
statement and the cash flow statement for the year then ended and the notes thereto.

The Board of Management of the Bank is responsible for the financial statements of each financial year which give a true
and fair view of the state of affairs of the Bank and of the results of its operations and its cash flows for the year. In
preparing those 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 standards have been followed, subject to any material departures disclosed and
explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Bank will
continue in business.
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 to ensure that the accounting records comply with the applied
accounting system. It is also responsible for safeguarding the assets of the Bank and hence for taking reasonable steps for
the prevention and detection of fraud and other irregularities.
The Board of Management confirms that it has complied with the above requirements in preparing the accompanying
financial statements.

STATEMENT BY MANAGEMENT
The Board of Management does hereby state that, in its opinion, the accompanying financial statements give a true and fair
view of the financial position of the Bank as at 31 December 2014 and of the results of its operations and its cash flows for
the year then ended in accordance with the Vietnamese Accounting Standards and Accounting System for Credit Institutions
and other statutory requirements stipulated by the State Bank of Vietnam relevant to preparation and presentation of
financial statements.
For and on behalf of the Board of Management:

Hanoi, Vietnam
24 March 2015

44 www.tpb.vn

The Shareholders
Tien Phong Commercial Joint Stock Bank

The Board of Managements Responsibility


The Board of Management of the Bank is responsible for preparation and fair presentation of these financial statements
in accordance with Vietnamese Accounting Standards, Accounting System for Credit Institutions and other statutory
requirements stipulated by the State Bank of Vietnam relevant to preparation and presentation of financial statement, and
for such internal control as the Board of Management determines is necessary to ensure the preparation and presentation
of financial statement that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Vietnamese Standards on Auditing. Those standards require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entitys preparation and fair presentation of the 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 entitys 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 financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Auditors opinion
In our opinion, the financial statements give a true and fair view, in all material respects, of the financial position of the
Bank as at 31 December 2014, and of the results of its operations and its cash flows for the year then ended in accordance
with Vietnamese Accounting Standards and Accounting System for Credit Institutions and other statutory requirements
stipulated by the State Bank of Vietnam relevant to preparation and presentation of financial statements.

Hanoi, Vietnam
24 March 2015

45

ANNUAL REPORT 2014

BALANCE SHEET (continued)

BALANCE SHEET

as at 31 December 2014

31 Dec 2014
VND

31 Dec 2013
VND

10.000.000.000

10.000.000.000

(564.040.683)

79.023.491.682

68.365.474.042

59.387.678.297

55.109.714.333

Cost

147.448.752.526

127.687.896.827

Accumulated depreciation

(88.061.074.229)

(72.578.182.494)

Finance lease

Cost

Accumulated depreciation

Intangible fixed assets

19.635.813.385

13.255.759.709

Cost

59.377.813.156

47.340.203.328

(39.741.999.771)

(34.084.443.619)

1.291.606.545.836

1.457.509.243.290

Interest and fee receivables

594.085.395.879

526.497.387.671

Receivables

914.165.189.147

1.307.300.483.743

669.702.421.984

595.168.758.187

(886.346.461.174)

(971.457.386.311)

51.477.555.719.157

32.088.038.816.947

Note

as at 31 December 2014
Other long-term investments
Note

31 Dec 2014
VND

31 Dec 2013
VND

ASSETS

Fixed assets

Cash, gold and gemstones

386.694.554.302

294.799.238.485

Balances with the State Bank of Vietnam

5.048.039.626.868

226.461.114.920

Deposits at and loans to other credit institutions (CIs)

10.888.929.609.412

5.855.657.092.577

Deposits at other CIs

4.1

9.308.205.026.079

4.709.214.236.243

Loans to other CIs

4.2

1.599.120.000.000

1.330.160.800.000

(18.395.416.667)

(183.717.943.666)

145.167.340.310

174.361.159.453

145.167.340.310

212.816.649.813

(38.455.490.360)

7.965.500.225

19.639.833.560.472

11.809.048.776.524

19.838.991.454.134

11.925.991.430.338

(199.157.893.662)

(116.942.653.814)

13.988.825.030.958

12.183.871.217.431

Securities available-for-sale

13.710.686.687.947

11.776.267.873.922

Securities held-to-maturity

509.486.415.901

437.603.343.509

(231.348.072.890)

(30.000.000.000)

9.435.959.317

10.000.000.000

Investments in joint ventures

Investments in associates

Provision for credit losses of deposits at and loans to


other CIs
Trading securities

Trading securities
Provision for diminution in value of trading securities
Derivatives and other financial assets
Loans to customers
Loans to customers

Provision for credit losses of loans to customers


Investment in securities

Provision for diminution in value of investment in


securities
Long-term investments

46 www.tpb.vn

Provision for diminution in value of long-term investments

Tangible fixed assets

Accumulated amortization
Other assets

Deferred tax assets


Other assets
Provision for impairment of other assets
TOTAL ASSETS

47

ANNUAL REPORT 2014

BALANCE SHEET (continued)

BALANCE SHEET (continued)

as at 31 December 2014

as at 31 December 2014

Note

31 Dec 2014
VND

Borrowings from the Government and the State Bank of


Vietnam

833.787.253.030

25.101.617.553.726

11.393.516.645.604

Deposits from other CIs

12.191.045.253.726

6.678.191.105.604

Borrowings from other CIs

12.910.572.300.000

4.715.325.540.000

21.623.430.396.773

14.331.681.384.239

Derivatives and other financial liabilities

17.939.807.656

Grants, entrusted funds and loans exposed to risks

89.233.972.505

2.341.440.000.000

408.786.918.268

320.730.394.833

283.258.913.515

234.940.889.017

125.528.004.753

77.565.018.359

8.224.487.457

47.241.008.648.928

28.387.368.424.676

Deposits from customers

Valuable papers issued


Other liabilities
Interest and fee payables
Deferred tax liabilities
Other payables and liabilities
Provision for contingent liabilities and off-balance-sheet
commitments
TOTAL LIABILITIES

31 Dec 2013
VND

42.132.785.732

42.132.785.732

Foreign exchange translation reserve

Asset revaluation reserve

Accumulated losses

(332.783.495.503)

(868.660.173.461)

TOTAL OWNERS EQUITY

4.236.547.070.229

3.700.670.392.271

51.477.555.719.157

32.088.038.816.947

Note
Reserves

LIABILITIES

Deposits and borrowings from other CIs

31 Dec 2014
VND

31 Dec 2013
VND

TOTAL LIABILITIES AND


OWNERS EQUITY

OFF BALANCE SHEET ITEMS


Note

31 Dec 2014
VND

31 Dec 2013
VND

474.169.099.118

120.605.374.535

1.647.969.054.298

902.126.385.232

850.000.000.000

2.490.000.000.000

2.972.138.153.416

3.512.731.759.767

Contingencies
Financial guarantees
Letters of credit
Other guarantees
Commitments
Commitments to customers
Other commitments

OWNERS EQUITY
Capital and reserves
Capital

4.527.197.780.000

4.527.197.780.000

5.550.000.000.000

5.550.000.000.000

(1.019.998.660.000)

(1.019.998.660.000)

(2.803.560.000)

(2.803.560.000)

Preference shares

Convertible bonds

Other capital

Charter capital
Fund for capital expenditure
Share premium
Treasury shares

48 www.tpb.vn

Hanoi, Vietnam
24 March 2015

49

ANNUAL REPORT 2014

INCOME STATEMENT (continued)

INCOME STATEMENT

for the year ended 31 December 2014

2014
VND

2013
restated
VND

8.224.487.457

3.556.524.501

535.876.677.958

381.385.250.753

Current corporate income tax expense

Deferred corporate income tax expense

Total corporate income tax expenses

535.876.677.958

381.385.250.753

966

688

for the year ended 31 December 2014

Note

Note

2014
VND

2013
restated
VND

Interest and similar income

12

2.331.539.133.146

1.680.004.044.367

Interest and similar expenses

13

(1.352.367.904.771)

(1.069.425.914.340)

979.171.228.375

610.578.130.027

66.300.114.098

31.642.179.729

(20.656.230.150)

(14.704.908.788)

Net interest and similar income


Fees and commission income
Fees and commission expenses
Net fees and commission income

14

45.643.883.948

16.937.270.941

Net gain from trading of foreign currencies

15

35.254.924.848

11.716.516.984

Net gain from dealing in trading securities

16

3.445.709.919

20.378.756.269

Net gain/(loss) from dealing in investment securities

17

(21.116.401.453)

21.023.896.432

Other operating income

133.654.037.794

212.066.551.891

Other operating expenses

(28.734.659.155)

(6.856.462.001)

104.919.378.639

205.210.089.890

4.154.566.000

3.462.425.773

TOTAL OPERATING INCOME

1.151.473.290.276

889.307.086.316

Personnel expenses

(283.500.018.690)

(192.265.425.756)

(23.019.436.226)

(27.146.820.692)

Other operating expenses

(358.702.709.612)

(203.723.039.263)

TOTAL OPERATING EXPENSES

(665.222.164.528)

(423.135.285.711)

Net operating profit before provision for credit losses

486.251.125.748

466.171.800.605

Expenses of provision for loans to customers

(123.921.462.246)

(80.826.522.852)

165.322.526.999

(3.960.027.000)

Net gain from other operating activities


Net gain from capital contribution, equity investments

Depreciation and amortisation expense

(Expenses)/Reversal of provision for loans to other banks

50 www.tpb.vn

18

(Expenses)/Reversal of provision for off- balance sheet


commitments
PROFIT BEFORE TAX

NET PROFIT FOR THE PERIOD


Basic earnings per share

10

Hanoi, Vietnam
24 March 2015

51

ANNUAL REPORT 2014

CASH FLOW STATEMENT (continued)

CASH FLOW STATEMENT

for the year ended 31 December 2014

2014
VND

2013
restated
VND

(35.568.715.136)

(32.117.301.058)

2.958.272.727

Payments for disposal of fixed assets

Acquisition of investment properties

Note
CASH FLOWS FROM INVESTING ACTIVITIES

for the year ended 31 December 2014

Purchase of fixed assets


Note

2014
VND

2013
restated
VND

CASH FLOWS FROM OPERATING ACTIVITIES

Proceeds from disposal of fixed assets

2.263.951.124.938

1.512.640.493.567

Proceeds from disposal of investment properties

(1.304.049.880.273)

(985.643.218.759)

Payments for disposal of investment properties

45.643.883.948

16.937.270.941

Payments for investments in other entities

180.476.815.844

50.192.825.158

Proceeds from sale of investments in other entities

4.154.566.000

3.462.425.773

3.352.367.182

17.263.277.959

(28.455.876.409)

(28.654.875.285)

21.000.000

(589.633.071.542)

(365.988.465.019)

Increase in charter capital/or issuance of securities

67.432.270.864

599.741.240.097

312.855.454.711

Proceeds from issuance of long-term convertible valuable papers and


other long-term borrowings

(10.318.851.884.427)

(12.911.365.735.306)

Repayment of long-term subordinated valuable papers and other


long-term borrowings

(770.000.000.000)

120.209.166.667

Dividends paid to shareholders

(1.938.652.576.914)

(6.652.057.630.699)

Purchases of treasury shares

25.905.307.881

(7.965.500.225)

Proceeds from sale of treasury shares

(7.913.000.023.796)

(5.842.961.427.445)

Net cash flows from financing activities

Increase/(Decrease) in provision used for writing-off loans, securities,


long-term investments

(41.706.222.397)

(80.673.410.390)

Net increase in cash and cash equivalents

9.011.423.817.601

3.841.769.507.248

Cash and cash equivalents at beginning of the year

6.523.844.556.315

2.682.075.049.067

(Increase)/Decrease in other operating assets

318.601.630.799

(447.916.933.214)

18.758.990.338.340

16.468.934.663.128

15.535.268.373.916

6.523.844.556.315

(833.787.253.030)

13.708.100.908.122

10.630.572.258.287

7.291.749.012.534

5.061.755.944.128

(2.341.440.000.000)

1.589.192.000.000

89.233.972.505

(7.436.054.809)

11.346.445.179

28.637.768.552

9.039.879.694.010

3.870.424.382.533

Interest and similar income receipts


Interest and similar expense payments
Fees and commission income receipts
Net receipts/(payments) from trading of foreign currencies, gold and
securities
Other operating income/(expenses)
Recovery from bad debts previously written-off
Payments to employees and suppliers
Corporate income tax paid/recovered during the year
Net cash flows from operating activities before changes in
operating assets and liabilities
Changes in operating assets
(Increase)/Decrease in deposits at and loans to other credit institution
(Increase)/ Decrease in securities investment
(Increase)/Decrease in derivatives and other financial assets
(Increase) in loans and advances to customers

Changes in operating liabilities


Increase/(Decrease) in borrowings from the Government and the State
Bank of Vietnam
Increase/(decrease) in deposits and borrowings from other banks
Increase/(decrease) in deposits from customers (including State
Treasury)
Increase /(Decrease) in valuable papers issued excluding the valuable
papers which were recorded in financial activities
Increase/(Decrease) in grants, entrusted funds and loans exposed to
risks
(Decrease) in derivatives and other financial liabilities
Increase in other liabilities
Reserves utilized during the year
Net cash flows from operating activities

52 www.tpb.vn

Dividend receipts from capital contribution, equity investments


Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES

Foreign exchange translation


Cash and cash equivalents at end of the year

19

Hanoi, Vietnam
24 March 2015

53

ANNUAL REPORT 2014

NOTES
TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS (continued)


as at 31 December 2014 and for the year then ended

2. CASH, GOLD AND GEMSTONES


31/12/2014
VND

31/12/2013
VND

Cash in VND

132.980.016.800

179.939.296.000

Cash in foreign currencies (FC)

134.775.055.002

80.205.584.985

Gold

118.939.482.500

34.654.357.500

386.694.554.302

294.799.238.485

as at 31 December 2014 and for the year then ended

1. THE BANK INFORMATION


Tien Phong Commercial Joint Stock Bank is a joint-stock commercial bank incorporated and registered in the Socialist Republic
of Vietnam.
Establishment and Operations
Tien Phong Commercial Joint Stock Bank (the Bank) is a Joint Stock Commercial Bank incorporated and registered in the
Socialist Republic of Vietnam in 2008. The Bank was established in accordance with Operation License No.123/GP-NHNN issued
by the Governor of the State Bank of Vietnam (The SBV) on 05 May 2008; which has been then amended, supplemented in
accordance with Decision No. 2132/QD-NHNN dated 27 September 2011 by the Governor of the SBV. The initial Certificate
of Business Registration was dated 12 May 2008 and the most recent 20th amendment of Business Registration on 12
September 2014.
The Banks main activities are to provide banking services including mobilizing and receiving short-term, medium-term, and
long-term deposits from organizations and individuals; making short-term, medium-term, and long-term loans and advances
to organizations and individuals based on the nature and capability of the Banks sources of capital; foreign exchange
transactions, international trade financial services, discounting of commercial papers, bonds and other valuable papers, gold
trading and providing other banking services as approved by the State Bank of Vietnam (SBV).
Charter capital

3. BALANCES WITH THE STATE BANK OF VIETNAM (THE SBV)


31/12/2014
VND

31/12/2013
VND

- In VND

1.793.185.863.185

225.531.467.817

- In FC

3.254.853.763.683

929.647.103

5.048.039.626.868

226.461.114.920

Balances with the SBV

4. DEPOSITS AT AND LOANS TO OTHER CREDIT INSTITUTIONS

As at 31 December 2014, charter capital of the Bank was VND 5.550.000.000.000 (as at 31 December 2013: VND
5.550.000.000.000).
Location and branches
The Banks Head Office is located at TPBank Building, 57 Ly Thuong Kiet Street, Hoan Kiem District, Hanoi, Vietnam. As at 31
December 2014, the Bank has one (01) Head Office, fifteen (15) branches, nineteen (19) transaction offices and four (04)
saving counters located in cities and provinces all over the country.

31/12/2014
VND

31/12/2013
VND

Deposit at other CIs

9.308.205.026.079

4.709.214.236.243

Loans to other CIs

1.599.120.000.000

1.330.160.800.000

10.907.325.026.079

6.039.375.036.243

(18.395.416.667)

(183.717.943.666)

10.888.929.609.412

5.855.657.092.577

31/12/2014
VND

31/12/2013
VND

57.290.105.720

443.597.033.516

1.627.134.087.026

191.979.969.394

- in VND

6.242.790.833.333

3.812.790.833.333

- in foreign currencies, gold

1.380.990.000.000

260.846.400.000

(18.395.416.667)

(18.395.416.666)

9.289.809.609.412

4.690.818.819.577

Provision for credit losses of deposits at and loans to other CIs

Employees
Total number of employees of the Bank as at 31 December 2014 was 1,910 people (as at 31 December 2013: 1,183 people).

4.1 Deposits with other CIs

Current accounts with other CIs


- in VND
- in foreign currencies, gold
Term deposit with other CIs

Provision for deposits at other banks

54 www.tpb.vn

55

ANNUAL REPORT 2014

NOTES TO THE FINANCIAL STATEMENTS (continued)

NOTES TO THE FINANCIAL STATEMENTS (continued)

as at 31 December 2014 and for the year then ended

as at 31 December 2014 and for the year then ended

4.2 Loans to other CIs

Note for listing status of trading securities as following:


31/12/2014
VND

31/12/2013
VND

Listed

Unlisted

Listed

94.130.506.979

161.779.816.482

Unlisted

51.036.833.331

51.036.833.331

Listed

Unlisted

145.167.340.310

212.816.649.813

31/12/2014
VND

31/12/2013
VND

In VND

770.000.000.000

535.000.000.000

Debt securities

In foreign currencies, gold

829.120.000.000

795.160.800.000

(165.322.527.000)

1.599.120.000.000

1.164.838.273.000

Provision for loans to other CIs

5. TRADING SECURITIES

Other trading securities

31/12/2014
VND

31/12/2013
VND

Debt securities

Government bonds

Debt securities issued by other local credit institutions

Debt securities issued by local economic entities

Foreign debt securities

145.167.340.310

212.816.649.813

145.167.340.310

212.816.649.813

Foreign equity securities

Other trading securities

Provision for diminution in value of trading securities

(38.455.490.360)

145.167.340.310

174.361.159.453

Equity securities
Equity securities issued by other credit institutions
Equity securities issued by local economic entities

Equity securities

6. LOANS TO CUSTOMERS

Loans to local economic entities and individuals


Discounted commercial papers and valuable papers loans
Payables on behalf of customers
Outstanding debts without collaterals nor debtors

Current
Special mention
Substandard

56 www.tpb.vn

31/12/2013
VND

19.697.235.780.179

11.778.244.885.909

99.943.870.634

105.934.741.108

41.811.803.321

41.811.803.321

19.838.991.454.134

11.925.991.430.338

31/12/2014
VND

31/12/2013
VND

19.291.135.705.267

11.397.651.912.424

306.438.713.376

251.032.950.042

20.449.055.595

15.305.178.046

6. 1 Analysis of loans by quality


According to the Law on Credit Institutions No. 47/2010/QH12, which is effective from 01 January 2011, credit institutions
are not allowed to trade securities. In the year 2013, FPT Fund has handed over the trusted securities to the Bank. These
securities were bought since 2010 according to trusted contract between the Bank and FTP Fund.

31/12/2014
VND

57

ANNUAL REPORT 2014

NOTES TO THE FINANCIAL STATEMENTS (continued)

NOTES TO THE FINANCIAL STATEMENTS (continued)

as at 31 December 2014 and for the year then ended

as at 31 December 2014 and for the year then ended

Doubtful
Loss
Outstanding debts without collaterals nor debtors

31/12/2014
VND

31/12/2013
VND

13.689.220.923

29.904.964.968

165.466.955.652

190.284.621.537

41.811.803.321

41.811.803.321

19.838.991.454.134

11.925.991.430.338

31/12/2014
VND

31/12/2013
restated (*)
VND

381.453.115.901

109.570.043.509

44.700.000.000

44.700.000.000

509.486.415.901

437.603.343.509

(44.430.101.263)

465.065.314.638

437.603.343.509

13.988.825.030.958

12.183.871.217.431

31/12/2013
reported
VND

reclassified
VND

31/12/2013
restated
VND

Government bonds

5.000.169.104.788

(300.000.000.000)

4.700.169.104.788

Debt securities issued by other


local credit institutions

2.491.440.000.000

300.000.000.000

2.791.440.000.000

283.333.300.000

(283.333.300.000)

283.333.300.000

Bonds issued by Vietnam Asset Management Company


Bonds issued by Debt and Asset Trading Corporation

Provision for diminution in value of securities held-to-maturity

6. 2 Analysis of loans by original terms


31/12/2014
VND

31/12/2013
VND

12.638.891.197.844

8.229.418.502.334

Medium-term loans

3.902.070.929.058

1.772.438.962.321

Long-term loans

3.298.029.327.232

1.924.133.965.683

19.838.991.454.134

11.925.991.430.338

Short-term loans

(*): Reclassified amount are as follows

Securities available-for-sale
Debt securities

7. INVESTMENT IN SECURITIES
31/12/2014
VND

31/12/2013
restated (*)
VND

Securities available-for-sale

Securities held-to-maturity
Government bonds

Debt securities
Government bonds

5.911.271.425.159

5.000.169.104.788

Debt securities issued by other local credit institutions

2.789.251.156.210

2.491.440.000.000

Debt securities issued by local economic entities

4.694.995.144.578

4.284.658.769.134

Debt securities issued by other


local credit institutions

8. DEPOSITS AND BORROWINGS FROM OTHER CREDIT INSTITUTIONS

Equity securities
Equity securities issued by other local credit institutions

Provision for diminution in value of securities available-for-sale

315.168.962.000

13.710.686.687.947

11.776.267.873.922

(186.917.971.627)

(30.000.000.000)

13.523.768.716.320

11.746.267.873.922

Debt securities issued by other local credit institutions

58 www.tpb.vn

83.333.300.000

283.333.300.000

31/12/2014
VND

31/12/2013
VND

Deposits from other CIs


Demand deposits from other CIs
- In VND
- In foreign currencies

274.308.857

159.916.632.843

318.694.744.869

1.794.472.761

10.285.000.000.000

6.306.120.000.000

1.587.076.200.000

210.360.000.000

5.763.368.000.000

3.401.600.000.000

Term deposits from other CIs


- In VND
- In foreign currencies

Securities held-to-maturity

283.333.300.000

Borrowings from other CIs


- In VND

59

ANNUAL REPORT 2014

NOTES TO THE FINANCIAL STATEMENTS (continued)

NOTES TO THE FINANCIAL STATEMENTS (continued)

as at 31 December 2014 and for the year then ended

as at 31 December 2014 and for the year then ended

31/12/2014
VND

31/12/2013
VND

- In foreign currencies

5.326.472.800.000

495.187.440.000

- Discounted valuable papers

1.820.731.500.000

818.538.100.000

25.101.617.553.726

11.393.516.645.604

9. DEPOSITS FROM CUSTOMERS


VND

3.079.832.310.722

2.145.651.509.120

2.832.849.762.624

1.986.096.453.938

3.877.556.672

3.605.398.884

243.044.476.273

155.902.626.595

60.515.153

47.029.703

18.363.996.138.561

12.127.184.211.847

Term deposits in VND

6.041.593.503.138

3.520.558.726.511

Term saving deposits in VND

8.885.031.461.727

6.710.200.431.727

430.345.062.208

468.963.655.821

3.007.026.111.488

1.427.461.397.788

3.191.822.444

3.154.021

2.028.526

1.050.421

3.189.793.918

2.103.600

176.410.125.046

58.842.509.251

152.889.745.943

45.753.213.655

23.520.379.103

13.089.295.596

21.623.430.396.773

14.331.681.384.239

Demand deposits in VND


Demand saving deposits in VND
Demand deposits in foreign currencies
Demand saving deposits in foreign currencies
Term deposits

Term deposits in foreign currencies


Term saving deposits in foreign currencies
Deposit for specific purposes
Deposit for specific purposes in VND
Deposit for specific purposes in foreign currencies
Margin deposits
Margin deposits in VND
Margin deposits in foreign currencies

2013
VND

535.876.677.958

381.385.250.753

554.719.644

554.719.644

Impact of ordinary shares issues during the year (shares)

Impact of Treasury shares repurchased during the year (shares)

554.719.644

554.719.644

966

688

Profit after tax


Number of ordinary shares at the opening of the year (shares)

Weighted average number of ordinary shares after the impact


(shares)
VND

Demand deposits

2014
VND

10. BASIC EARNINGS PER SHARE


Basic earnings per share are calculated by net profit distributed to shareholders of the Bank divided by weighted average
number of outstanding ordinary shares in the year. Details of earnings per share of the Bank are as follows:

Basic earnings per share (VND)

11. DIVIDEND
As at the date of these financial statements, the Board of Director of the Bank has not made any decision on the rate and
form of dividend payments for the year 2014 as the Bank is still having accumulated losses.

12. INTEREST AND SIMILAR INCOME


2014
VND

2013
restated
VND

58.124.435.401

93.302.677.873

1.299.435.177.812

783.402.041.468

943.384.970.824

785.806.733.134

Other income from credit activities

11.760.124.926

4.354.629.261

Interest income from guarantee services

18.834.424.183

13.137.962.631

2.331.539.133.146

1.680.004.044.367

2014
VND

2013
VND

1.012.803.132.980

808.176.055.055

247.099.453.293

211.986.406.089

90.840.144.447

47.640.753.429

1.625.174.051

1.622.699.767

1.352.367.904.771

1.069.425.914.340

Interest income from deposits


Interest income from loans to customers
Interest income from investment securities

13. INTEREST AND SIMILAR EXPENSES

Interest and similar expenses from deposits


Interest and similar expenses from borrowings
Interest expenses from valuable papers issuance
Expenses from other credit activities

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ANNUAL REPORT 2014

NOTES TO THE FINANCIAL STATEMENTS (continued)

NOTES TO THE FINANCIAL STATEMENTS (continued)

as at 31 December 2014 and for the year then ended

as at 31 December 2014 and for the year then ended

14. NET FEES AND COMMISSION INCOME

16. NET GAIN FROM DEALING IN TRADING SECURITIES


2014
VN

2013
restated
VN

66.300.114.098

31.642.179.729

33.639.106.068

22.679.494.280

1.389.279.167

894.098.394

39.335.455

378.494.404

59.656

1.295.280

31.232.333.752

7.688.797.371

(20.656.230.150)

(14.704.908.788)

(15.662.593.083)

(9.925.472.769)

(2.555.597.555)

(3.750.883.397)

(66.691.320)

(68.204.268)

Advisory services

(210.000.000)

(18.705.079)

Commission services

(974.408.942)

(105.751.800)

(1.186.939.250)

(835.891.475)

45.643.883.948

16.937.270.941

Fees and commission income


Settlement services
Treasury services
Trust and agency services
Advisory services
Trading and Insurance services
Others
Fees and commission expenses
Settlement services
Treasury services
Trust and agency services

Others
Net fees and commission income

15. NET GAIN FROM TRADING OF FOREIGN CURRENCIES


2013
VND

96.485.579.011

62.222.867.013

Income from foreign currency spot trading and gold trading

39.870.997.486

23.242.313.937

Income from currency derivatives trading

56.614.581.525

38.980.553.076

(61.230.654.163)

(50.506.350.029)

Expense from trading of foreign currencies


Expense from foreign currency spot trading and gold trading

(21.489.286.490)

(25.388.681.341)

Expense from currency derivatives trading

(39.741.367.673)

(25.117.668.688)

Net gain/(loss) from trading of foreign currencies

35.254.924.848

11.716.516.984

Income from provision reversed for diminution in the value of trading


securities
Net gain from dealing of trading securities

722.458.376

5.502.341.188

(988.465.960)

2.723.251.543

15.864.881.041

3.445.709.919

20.378.756.269

17. NET GAIN/(LOSS) FROM DEALING IN INVESTMENT SECURITIES


2014
VND

2013
VND

Income from trading of investment securities

197.476.144.697

35.058.290.760

Expense from trading of investment securities

(17.244.473.260)

(192.521.422)

Provision expense for diminution in the value of investment securities

(201.348.072.890)

(13.841.872.906)

Net gain/(loss) from trading of investment securities

(21.116.401.453)

21.023.896.432

18. NET GAIN/(LOSS) FROM OTHER OPERATIONS

Income from written-off bad debts


Income from disposal of assets
Income from other derivative financial instruments
Income from reversal of provision
Gains from the proceed of foreclosed asset

2014
VND

2013
VND

133.654.037.794

212.066.551.891

21.000.000

2.974.863.636

59.995.454

3.296.910.900

5.564.118.358

100.500.000.000

187.925.811.931

180.000.000

26.702.263.258

18.495.626.148

(28.734.659.155)

(6.856.462.001)

(147.364.512)

(4.430.940.256)

Expense from debt trading

(6.000.000.000)

Expense from disposal of assets

(1.891.261.270)

(20.696.033.373)

(2.425.521.745)

104.919.378.639

205.210.089.890

Other income
Expense from other operations
Expense from other derivative financial instruments

Other expenses
Net gain/loss from other operations

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2013
VND

Expense from trading securities

Income from other operation


2014
VND

Income from trading of foreign currencies

Income from trading securities

2014
VND

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ANNUAL REPORT 2014

NOTES TO THE FINANCIAL STATEMENTS (continued)


as at 31 December 2014 and for the year then ended

19. CASH AND CASH EQUIVALENTS


Cash and cash equivalents included in the statement of cash flows comprise the following balances of the
balance sheet:
31/12/2014
VND

31/12/2013
VND

386.694.554.302

294.799.238.485

Balances with the State Bank of Vietnam

5.048.039.626.868

226.461.114.920

Demand deposits with other banks

1.684.424.192.746

635.577.002.910

Deposits at and loans to other banks within 3 months

8.416.110.000.000

5.367.007.200.000

15.535.268.373.916

6.523.844.556.315

2014

2013

1.443

1.000

266.408.581.092

180.643.846.612

Cash, gold and gemstones

20. EMPLOYEES REMUNERATIONS

I. Total average number of employees (people)


II. Employees remuneration (VND)

1. Total salary fund and meal allowances


2. Bonus

3. Other income

4. Total income (1+2+3)

266.408.581.092

180.643.846.612

5. Average salary

184.621.331

180.568.610

6. Average income

184.621.331

180.568.610

Hanoi, Vietnam
24 March 2015

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ANNUAL REPORT 2014

CORPORATE
GORVERNANCE

Corporate Governance
BOD is responsible for providing leadership through oversight, review and by providing guidance whilst setting strategic
direction and delivering value to shareholders and stakeholders over the long term.
The BOD has made conscious decision to delegate a broader range of issues to the Committees. The Chairman and Vice
Chairman directly involve and lead activities in all Committees.

Normination and
Remuneration Committee

Annual
General Meeting
(AGM)

(NORCO)

Audit and Risk Committee

(ARCO)

Board of
Supervisors
(BOS)

Board of
Directors
(BOD)

Executive
Committee
(EXCO)

Asset and Liabilities


Committee

(ALCO)

Credit Committee

(CRCO)

Internal
Audit
(IA)

Board of
Management
(BOM)

Investment Committee

(INCO)

5 Golden rules are applied in the Banks Corporate Governance

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Rule 1

The Importance of Business Ethics

Rule 2

Towards a Common Goal - Align Business Goals

Rule 3

The Importance of Strategic Management

Rule 4

Organizational Effectiveness for good Corporate Governance

Rule 5

The Importance of Corporate Communications

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ANNUAL REPORT 2014

2. Completing the assigned tasks of the General Shareholders Meeting in April 2014

REPORT OF BOD

a. Management activities supervision


The BOD together with the BOM have closely watched the market movements to make timely actions ensuring the safety
of banking operations for sustainable and effective development. Apart from regular meetings of BOD, Chairman of the BOD
also organized extraordinary meetings, online meetings, written opinions of BOD members when important issues arose.
BOD had fully participated in activities of Committees and Councils under BOD management, promptly managed and gave
close guidances to the below.

In 2014, national economy in general and Hanoi capital economic activities in particular continued to recover and gradually
improved yet still faces many challenges such as weak demand and slow absorption of capital in the economy, difficulties in
manufacturing and business activities which affected adversely on production of enterprises as well as banking activities.
Taking into account these situations, TPBank always strives to complete the objectives of the restructuring plan, perform
business activities with customer-oriented approach by taking solid steps of development. In general, TPBank is able to
maintain its stability and development with positive results in almost business operations including foreign currency trading,
foreign exchange, credit and investment.

A. EXECUTIVE COMMITTEE (EXCO) REPORT IN 2014


1. Guiding the implementation of Phase 3 - Development of Restructuring Plan
Year 2014 was considered a transitional year from Consolidation phase to Development of TPBank as directed in the
Restructuring Plan approved by the Governor dated July 2nd 2012. With clear vision and plan, the Board of Directors (BOD)
has directed the Board of Management (BOM) and all staff to complete the organizational structure, consolidating the
resources to create a solid foundation for the Banks future development.
TPBank strictly complied with the Central banks safety ratios in banking operations;
In consistent with the strategic goals of commercial banking operations, sizeable development as well as in-depth expansion;
Although the economy is still facing difficulties, many banks are struggling to balance their funds, TPBank has been
focusing on foreign exchange trading, money market and bond trading activities which effectively created abundant sources
of capital besides traditional banking operations throughout the year;
Directed the BOM to develop new sales channels, especially alternative channels to expand the banks network. The overall
development of the bank was successful thanks to the support of advanced technology infrastructure;
Last but not least, risk management and risk control are critical duties of the Restructuring Plan. The BOD defined clearly
healthy development of TPBank together with risk management taking into account certain risk tastes, evaluation criteria
as well as a good selection of potential customers.
With clear direction in the development strategy, TPBank has made remarkable changes and achieved positive results. Profit
in 2014 exceeded 122% y-o-y was an identical example for the Bank during restructuring period.
In the second half of the Development phase from 2015 to 2016, BOD will continue to guide and support the BOM to
complete the strategic objective of becoming one of the leading banks in Vietnam.

Asset and Liabilities Committee (ALCO): watched and updated Treasury activities, money market, interest rates movements
immediately. Mini ALCO meetings have been taken place weekly to issue policies on liquidity and maintain efficient banking
operations.
Credit Committee (CRCO): During 2014, EXCO led the implementation of credit ramification system, credit profile
classification in terms of products, types of collateral for different approval levels. Independent credit experts had been
evaluated in terms of capacity and ethics. BOD also gave guidance in internal credit rating regulations as a firm basis for
credit evaluation and approval limits as well as credit risk management.
Audit and Risk Committee (ARCO): BOD and ARCO have been actively collaborated for better quality risk control at TPBank,
especially credit risks and operational risks. In 2014, operational risk control was focused at TPBank when the BOD guided
relevant units to create regulations and procedures for operational risk management. In August 2014, TPBank completed
and applied these regulations into operations. Operational risk Council and Business Interruption Control were formed as a
result.
Investment Committee (INCO): showed effective and stable management by restructuring investment portfolio of the
bank, adjusted interest rates and exit plan to ensure a safe and profitable portfolio.
Normination & Remuneration Committee (NORCO): Regular meetings were organized every two weeks to build up
effective compensation policies, salary structure, setting up KPIs targets for all employees effective from May 2014.
BOD and NORCO always focus on strengthening the management skills and recruitment of new important roles for the
development of TPBank.
b. Risk management activities
Implementing managing system project in accordance with Basel II standards, proposing operational risks prevention plan.
Developing risk management roadmap for TPBank to become a leading bank in risk management; Continuous research on
Basel II, III requirements following guidance of the State Bank of Vietnam.
Strictly complying with Circular No. 02/2013/TT-NHNN dated January 21st 2013 of the Central bank regarding assets
classification and risk provisioning, effective from January 1st 2015.
c. Human Resources Management activities
Focusing on sales staffs recruitment, fulfilling the goal of increasing total number of employees to 1,910 in 2014; Gradually
deployed talent program, relocation of personnel at all levels.
From April 2014, Key Performance Indicators (KPIs) evaluation scheme has been applied, monthly review of personal KPIs
and KPI-based effective salary were incorporated.
In October 2014, TPBank Capacity Scheme was issued; thereby staff training programs were designed based on this
framework in order to improve professionalism, soft skills and efficiencies.
Actively build up corporate culture under 5 core values: Transparency-Creativity-Improvement-Integration-Sustainability
In the 4th quarter of 2014, HR Division has completed procedures to go live iHRP software, supporting HRM activities to
achieve high quality and effective HR management.

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ANNUAL REPORT 2014


d. Network Development
BOD has directed BOM to relocate branch network, select convenient locations for expanding business, and complete brand
identity uniformly at all branches.

B. BUSSINESS PLAN IN 2015


I. Administration, management and control systems

First quarter 2014, the SBV approved for TPBank to open 2 branches;

Strengthen and further improve corporate governance, especially risk management in compliance with international standards

Forth quarter 2014, TPBank received approval to open 5 branches in Hanoi, Hochiminh, Quang Ninh, Nghe An, Dak Lak. Also,
4 Saving Counters were upgraded to Transaction offices as directed by the SBV.

Complete procedures and process system of the Bank

As at December 31st 2014, TPBank has one Head office and 38 transaction points (including 15 branches and 23 transaction
offices), business centers, sales and distribution centers in order to best serve increasing number of customers.
e. Investor relations
Since the Annual General Shareholders Meeting in 2014, EXCO has been managing TPBank operations efficiently putting
shareholders benefit at first. The banks information including management reports and financial reports were updated on
TPBanks website regularly. Investor relations were well-managed to best support our shareholders. BOD office received
positive feedback from investors showing their trusts and supports in the current management of TPBank.

3. Outstanding financial results


With the challenging financial targets approved by the 2014 General Shareholders Meeting, EXCO has closely guided the
BOM and actively handled business operations to obtain the targets.
Total assets
By end of December 2014, TPBanks total assets reached VND51,478 billion, equivalent to 103% of target, an increase
of more than VND19,390 billion or 60.43% growth compared to last year. These are quality assets with high potential of
profitability, sustainable for the banks operations.
Fund mobilization
Fund mobilization activities were sustainable, total deposits reached VND46,725 billion, equivalent to 111% of year end
target. In which, deposits from credit institutions increased by VND11,367 billion or 83% of 2013. Due to fluctuations of
interest rates and capital absorption of the economy, BOD and BOM had actively managed to reduce this target in order to
minimize the loss from lending over deposit expenses. By end of 2014, total deposits from customers stood at VND21,623
billion, or 86% of the plan.
Credit activities
With the approval from the Governor on credit growth target, despite the fluctuations in the market and the difficulties in
clients selection, TPBank has completed the target for loans to customers. As of 31/12/2014, customers outstanding loans
reached VND19,839 billion equivalent to 101% of the plan, contributing to total loan balance including corporate bonds of
VND24,960 billion.

Utilize appropriate resources to ensure inspection and monitoring jobs, compliance and overcome systems shortcomings in
order to achieve high efficiency and minimizing risk for the Bank, enhance Board of Supervisors and Internal Audit functions.
Strive to improve the credit rating of TPBank by independent credit rating agencies, increase operating activities transparency,
and maximize interests of shareholders, employees and social responsibilities.
Improve financial performance by increasing NIM (Net Interest Margin), service fees and controlling budget effectively.
Actively build up corporate culture under 5 core values.

II. Business activities


Focus on recruitment of high quality personnel to meet the requirements of the Banks future development
Build up market research and evaluation
Focus on profitable business sectors, appropriate customer segmentation, in parallel with development of traditional banking
services to ensure sustainable and effective growth
Exploit new technology for digital banking development; invest on IT solutions upon requirements of the systems

III. Network Development


Standardize branch network system, transaction offices and ATMs in order to save costs; Improve operational capabilities
to serve customers
Further promote the development of digital banking system
Continue to conduct market research, expansion of branch network to other provinces

IV. Customer base Development


Increased number of customers is one of the most important tasks not only in 2015 but also in subsequent years.
TPBanks target is to increase number of customers to 1 million by end of 2015.

Credit quality has been improved significantly; NPLs ratio as of 31/12/2014 stood at 1.01%. The BOD has always focused
on credit quality, risk control and bad debts management.
Customer base
- This is considered an important target for the development and expansion of the Bank in both scale and quality, diversify
business sectors yet still emphasize on targeted customers.
- By end of 2014, TPBank number of customers had reached to 528,174 equivalent to 132% of the plan.
Profitability
TPBank profit figure which is an indicator to show the performance of the bank mainly comes from core business. By
31/12/2014, the Banks profit reached VND536 billion equivalent to 122% of the yearly plan.

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ANNUAL REPORT 2014

REPORT OF BOS

A. BOARD OF SUPERVISORS (BOS) REPORT IN 2014


In 2014, TPBank continued the consolidation and development roadmap of the Restructuring plan in the difficult economy;
solutions for bad debts still had many shortcomings in the legal system; risk from criminal activities, bank fraud is rising with
more sophisticated and complex tricks; the phenomenon of cross-ownership has been warning and managed by the SBV
to tighten up management for healthy monetary market. In this context, TPBanks SBV has regularly updated policies and
regulations; strictly followed the resolutions of the Shareholders Meeting and successfully implemented the tasks of BOS.
Results as follows:

I. SUPERVISION OF OPERATION MANAGEMENT ACTIVITIES


1. Through Internal Audit system, the Board of Supervisors (BOS) organized regular financial monitoring as well as key
activities. By evaluating test results, the BOS has discussed directly with relevant divisions and units to give warning to
potential risks and proposed plans to strengthen safety controls, and efficient operation of the bank.
2. Through regular meetings of the Committees (EXCO, ALCO, CRCO, ARCO, INCO, NORCO), the BOS has directly reported and
given warning to specific problems for risk prevention purpose.
3. Coordinate with EXCO and BOM, Internal Audit, Head of business units and branches to serve the inspection under the
decisions of legal and anti-corruption inspections.
Overall, TPBank has strictly completed the proposals raised by the Banking Inspection Agency and acquired recommendations
of independent audit firm.
4. Supervise the implementation of updated documents related to accounting policies and financial statements of the Bank;
5. Update list of founding shareholders, major shareholders, limited partners and relevant members of the Board of Directors,
members of the BOS, and CEO of the Bank; cooporate with the BOD office to update and file changes of the list upon
regulations. Shareholders are not holding exceeded ratios upon regulation of share-contribution.
6. Under BOS supervision, it can be said that, EXCO has shown aggressive directions in completing the resolutions of the
General Shareholders meeing in 2014, especially in system restructuring, bad debts collection and business development.
Major financial indicators were achieved higher than target, especially total assets and profit figures. During the year,
TPBank has launched new competitive products and services which have been highly evaluated by customers. Activities of
TPBank have been developed stably, creating solid platform for 2015. The adequacy ratio of bank under the provisions of
the SBV has been always followed.
However, the Banks activities still had some limitations as follows:
- Risk management has reached a certain level, but not really meet the required capacity of internal corporate governance;
Early Warning System (EWS) has now been implemented, but not efficient enough;
- Bad debts collection activities have reached a certain result in 2014. The bad debt ratio dropped to a safe level. The Bank
continued to promote the sale of debt to VAMC to collect VND 381.4 billion in bond. However, the BOD and BOM should direct
closely to recover the actual outstanding debts besides selling debts to VAMC.
- Internal audit system still reveals limitations and needs to improve to maximize performance, minimize risk to the Bank.
The Board of Supervisor had noted the results outlined in reports of the BOD and the BOM.

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ANNUAL REPORT 2014

II. IMPLEMENTATION OF INTERNAL AUDIT FUNCTION


The BOS has focused on operational risk assessment for business units, directing and managing internal audit work in the
implementation of auditing tasks and unexpected auditing programs upon request of the BOD, BOS and BOM. The BOS also
instructed Internal Audit to detect risks for early warning and propose corrective remedy, preventing damage to the Bank.
The BOS also directly involved in a number of audits to guide and supervise auditors to ensure independence, objectivity
and honesty.

III. EVALUATION OF FINANCIAL REPORT


The BOS has monitored implementation of the contract between the Bank and the independent auditor, EY Vietnam;
Review first half audited financial statements and year end statements of 2014; the examinations result financial
statements were confirmed as follows:
The financial statements of the Bank presented true and fair financial position and results of operations as of
31/12/2014, in accordance with the accounting standards of Vietnam and the current regulations applicable to banking
and credit institutions.

6. Strengthen quality and effectiveness of the internal control system; strengthen the capacity of risk management of the
Bank; complete IT infrastructure; build up regulation system of collection, management, and data mining; conduct supportive
software for analysis, risk measurement in order to improve internal management.
7. The BOM continues to stick to the direction of BOD and implement measurement to recover the debt more determinedly,
enhancing effectiveness of bad debts collection besides selling debt to VAMC.
8. Review big amount transactions and specialized products for appropriate control solutions; ensure security for the Bank
assets, preventing risks for the Bank.
9. Overcome systematic defects and MIS reporting system to ensure information provided timely and accurately. Give the
BOS opportunity to access information related to activities of EXCO and BOM.
10. Improve effectiveness of coordination among business units and controlling units in risk management activities; Ensure
close coordination & consistency between the BOM and the BOS in internal audit tasks execution.

The financial statements of the Bank in 2014 was audited by EY Vietnam and evaluated by the BOS.

B. PLAN OF THE BOS IN 2015

IV. OTHER ACTIVITIES

In 2015, TPBank will continue to expand its branch network and operating scale as stated in the plan. It requires Internal
Audit team to strengthen the team in terms of headcounts and professional skills.

1. Consult BOD and BOM to recover the banks operations after the inspection, audit and assess the compliance of units
among TPBanks system.

Key tasks of the BOS in 2015 include

2. Propose to Chairman of the BOD to appoint and dismiss some of the titles of the Internal Audit Center; Coordinate with

Human Resources Management Division in recruitment of auditors and internal audit review in order to strengthen the
performance of Internal Audit.

3. Organize first half and full year events of internal auditting tasks.

V. LIMITATIONS OF THE BOS


1. The BOS need more support in term of information updated and provided. Information exchange between BOD, BOM and
BOS should be strengthened.

2. Personnel of the BOS and Internal Audit team are inedequate. Professional training for staff is limited.

VI. PROPOSAL

1. Continue to oversee the Banks compliance with the law and the Charter, the resolutions of BOD on corporate governance
and administration; to consult the BOD and BOM on the execution of internal process and policies issuance;
2. Supervise the compliance of capital adequacy ratios and other safety ratios regulated by the State Bank of Vietnam;
3. Assess the Banks risk management system, effectiveness of operational risk, credit risk and liquidity risk management
for early warning and quality risk control;
4. Instruct Internal Audit on yearly auditing plan, extraordinary examinations and consultation upon request of the BOD, BOS
and BOM; Coordinate with HR division on recruitment and training to staff to enhance professionalism of Internal Audit team;
5. Evaluate financial statements and other related tasks;
6. Enhance interactions with EXCO and BOM for timely reviews, recommendations and warnings, ensuring effective
compliance of Laws and the Banks Charter.

1. The Board of Directors should continue to guide the BOM to follow closely the restructuring plan and the Banks situations
to better manage and implement business plan approved by the General Shareholders Meeting, ensuring safety and
improving the financial capability of TPBank.
2. The BOM should focus on regional advantages and define specific goals, human resources demand; before opening new
branches to make sure that expansion of branches and transaction points go along with business performance. Besides, the
BOM need to conduct regular review and apply appropriate policies to underperforming business units.
3. Update relevant internal regulations to ensure compliance with Circular No. 36/2014/TT-NHNN dated November 20th
2014 on regulating limits, prudential ratios in operation of credit institutions.
4. The BOD and BOM need to review and evaluate the organization model of the Bank as well as the operational structure
to improve efficiency, avoid duplication, and increase accountability of individuals.
5. Effectively manage operating expense, increase productivity and working results of senior level managers.

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ANNUAL REPORT 2014

Business plan in 2015

BUSINESS PLAN

With the achievements in 2014, the Board of Management (BOM) has set the goal for 2015 taking into the account
macroeconomic policy impact, current market conditions and business opportunities as follows:
Deposits from customers to reach VND37,437 billion; Continue to exploit existing customer base while focusing on
developing SME clients; Strengthen IT support in creating new products, processes, service applications, customer utilities;
Diversify card products, accounts, and savings products, etc.
Outstanding loans to customers to reach VND35,267 billion; Target to average and high income customers; Continue
to promote cross-selling programs with business partners and affiliates; Implement specialized credit products, customer
loyalty program to strengthen the cohesion of customers with the Bank and increase their use of multiple banking
products and services;
Search for reputable bond issuers with attractive rates and liquidity in the market;
Further develop new products by exploiting IT infrastructure advantage of Digital bank for key products including: Card,
mPOS, eBank; Continue to improve eBank and eBank payment authentication via electronic signature for customers of
Corporate banking.
Expand branch network in Ho Chi Minh City, Quang Ninh, Nghe An, Dak Lak and 5 more business centers in Hanoi,
increasing total number of branches and business centers to 50.
Number of customers to reach the target of one million in 2015.

Key financial figures in 2015


No.

Unit: VND billion


Item

Total assets

Chartered capital

FY 2014

2015 Plan

51,478

70,018

5,550

5,550

Total deposits

46,725

59,267

3.1

Deposits from customers

21,623

37,437

3.2

Deposits and balances from other credit institutions

25,102

21,830

Loans and debt securities investments

24,960

40,463

4.1

Loans to customers

19,839

35,267

4.2

Corporate bonds

5,121

5,196

Non-performing loans ratio

1.01%

<2%

Profit before tax

536

620

CAR

15.04%

>9%

ROE (*)

13.51%

13.70%

Total number of customers

528,174

1,000,000

(*): ROE = Net profit/Average equity

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Human resources plan in 2015


In 2014, Human resource management (HRM) strategy was completed and uniformly implemented based on three pillars:
Attract, recruit and retain talents
Improve efficiency and give rewarding
Train and develop quality human resources
Based on the approved HRM strategy, with existing tools and management platform, TPBank continues to apply
international standards namely the Balanced Scorecard (BSC) in performance measurement system which integrates
corporate targets and individual goals. The performance measurement framework was built not only to focus on evaluating
KPIs but also to consider, evaluate and lead individuals behavior following the banks core values. The evaluation results of
2014 reflected a true and accurate performance of every staff. This result was also used to allocate additional benefits for
employees as well as to direct human resources development plan of TPBank.
Business planning and human resources planning are core factors for the completion of building up workforce for both
direct sales and supporting units, appropriately fit into the size of each business unit and regional factors. Instead of passive
identification of HR needs, TPBank will actively plan human resources demand from the beginning of every year, thereby
conduct an overall recruitment and training program throughout the year.
With the practice makes perfect viewpoint, Practice Centre has been put into operation since 2015. This is considered
a breakthrough step in training to build up a strong and professional workforce at TPBank. Apart from building up a solid
foundation for HRM, TPBank also focuses on developing corporate culture. With the identified core values, corporate culture
is considered basic foundation for all activities of the Bank.

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HEAD OFFICE

BRANCH NETWORK

TPBank Building, 57 Ly Thuong Kiet, Hoan Kiem District, Ha Noi

HA NOI

DA NANG CITY

TPBank Hoan Kiem


38-40 Hang Da, Hoan Kiem District

TPBank Da Nang
155 Nguyen Van Linh, Thanh Khe District

TPBank Nam Ha Noi


236 Le Thanh Nghi, Hai Ba Trung District

HO CHI MINH CITY

TPBank Dinh Tien Hoang


7 Dinh Tien Hoang, Hoan Kiem District
TPBank Le Ngoc Han
Ruby Plaza Building , 44 Le Ngoc Han, Hai Ba Trung District
TPBank Hai Ba Trung
300-302 Tran Khat Chan, Hai Ba Trung District
TPBank Kham Thien
158 Kham Thien, Dong Da District, Ha Noi, qun ng a
TPBank Ha Noi
TL Building, 22 Lang Ha, Dong Da District
TPBank Ha Thanh
1st Floor, 2 Chua Boc, Dong Da District
TPBank Trung Hoa Nhan Chinh
1st Floor, 24T1 Building, Trung Hoa Nhan Chinh Urban
Area, Thanh Xuan District
TPBank Ba Dinh
37 Phan Dinh Phung, Ba Dinh District
TPBank Dong Da
Lot 1 -16 - Zone B - Hoang Cau Area, Dong Da District
TPBank Dong Do
1st Floor, LOGICO 13 Building, Thanh Xuan District
TPBank Thang Long
129-131 Hoang Quoc Viet, Cau Giay District
TPBank Pham Hung
FPT Building, Duy Tan, Cau Giay District
TPBank My Dinh
1st Floor, C3, My Dinh 1, Nguyen Co Thanh, Nam Tu Liem District
TPBank Linh Dam
Villa 10BT1, Bac Linh Dam Urban Area, Nguyen Huu Tho,
Hoang Mai District

TPBank Nguyen Oanh


112-114 Nguyen Oanh, Ward 7, Go Vap District
TPBank Cong Hoa
73 Cong Hoa, Ward 4, Tan Binh District
TPBank Gia Dinh
481-483 Bach Dang, Bach Dang ward, Binh Thanh District
TPBank Binh Tay
224 Hai Thuong Lan Ong, Ward 14, District 5
TPBank Tay Sai Gon
290 Lanh Binh Thang, Ward 11, District 11
TPBank Tan Binh
301 Nguyen Van Troi, Ward 1, Tan Binh District
TPBank Tan Phu
623 Luy Ban Bich, Phu Thanh Ward, Tan Phu District
TPBank Sai Gon
164B-166 Le Hong Phong, Ward 3, District 5
TPBank Phu My Hung
Broadway C, 150 Nguyen Luong Bang, Tan Phu Ward, District 7
TPBank Ben Thanh
385B Cah Mang Thang Tam, Ward 13, District 10
TPBank Hung Vuong
32A Hau Giang, Ward 2, District 6
TPBank Cuu Long
445 Ly Thuong Kiet, Ward 8, Tan Binh District

DONG NAI

TPBank Dong Nai


264A Pham Van Thuan, Thong Nhat Ward, Bien Hoa City

CAN THO

TPBank Thanh Do
7 Tran Phu, Ha Dong District

TPBank Can Tho

TPBank Tay Ha Noi


535 Kim Ma, Ba Dinh Ward, Ha Noi

AN GIANG

HAI PHONG CITY

TPBank Hai Phong


8-10 Cau Dat, Ngo Quyen, District

80 www.tpb.vn

TPBank Ho Chi Minh


153 Nguyen Dinh Chieu, Ward 6, District 3

TPBank To Hieu
312 To Hieu, Le Chan District

135 Tran Hung Dao, An Phu ward, Ninh Kieu District


TPBank An Giang
204-204A Building , Tran Hung Dao, Binh My ward, Long Xuyen City

BINH DUONG
TPBank Binh Duong
309A-311 Binh Duong Avenue, Chanh Nghia ward, Thu
Dau Mot City
81

ANNUAL REPORT 2014

CORRESPONDENT &
AGENT BANKS

82 www.tpb.vn

An Binh Commercial Joint Stock Bank


ANZ Bank (Vietnam) Limited
Asia Commercial Bank
Australia and New Zealand Banking Group Ltd, Head Office
Australia and New Zealand Banking Group Ltd, China Branch
Australia and New Zealand Banking Group Ltd, London Branch
Australia and New Zealand Banking Group Ltd, Japan Branch
Australia and New Zealand Banking Group Ltd, Korea Branch
Australia and New Zealand Banking Group Ltd, Phillipines Branch
Australia and New Zealand Banking Group Ltd, Solomon Islands Branch
Australia and New Zealand Banking Group Ltd, Fiji Branch
Bank Leumi Le Israel B.M
Bank of New York Mellon
Bank of Tokyo-Mitsubishi UFJ, Ltd
Bank of Tokyo-Mitsubishi UFJ, Ltd, Abu Dhabi AE
Bank of Tokyo-Mitsubishi UFJ, Ltd, Bahrain Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Bangalore Branch
Bank of Tokyo-Mitsubishi UFJ, Ltd, Bangkok Branch
Bank of Tokyo-Mitsubishi UFJ, Ltd, Brussels Branch)
Bank of Tokyo-Mitsubishi UFJ, LTD, Buenos Aires Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Chennai Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Chicago Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Duesseldorf Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, HCMC Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, HongKong Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Jakarta Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Labuan Branch
Bank of Tokyo-Mitsubishi UFJ, Ltd, London Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Los Angeles Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Madrid Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Manila Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Milan Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Mumbai Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, New Delhi Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, NY Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Pakistan Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Paris Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Santiago Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Seoul Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Singapore Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Sydney Branch
Bank of Tokyo-Mitsubishi UFJ, LTD, Taipei Branch
Banque Internationale A Luxembourg S.A
BaoViet Joint Stock Commercial Bank
Bayerische Hypo-Und VereinsBank Paris
BHF-BANK Aktiengesellschaft
BNP-Paribas SA (formerly Banque Nationale de Paris)
Ho Chi Minh city Branch
BNP-Paribas SA (formerly Banque Nationale de Paris)
Singapore Branch
BNP-Paribas SA (formerly Banque Nationale de Paris) Head Office
Busan Bank
CaixaBank, S.A
Chengdu Rural Commercial Bank
China Construction Bank Corporate, HCM Branch
China Construction Bank Corporation
Citibank Europe Plc, Hungarian branch
Citibank Europe Plc, Organizacni Slozka
Citibank International PLC
Citibank International PLC, Norway Branch
Citibank South Africa
CitiBank Taiwan Ltd.
CitiBank, N.A
CitiBank, N.A
CitiBank, N.A. Singapore Branch
Commerzbank AG
Daegu Bank Ltd.
Deutsche Bank AG
Deutsche Bank, HCMC Branch
DongA Bank
First Bank
Habib Bank AG Zurich, Dubai UAE
Habib Metropolitan Bank Ltd
Hochiminh City Development Joint Stock Commercial Bank
Hong Leong Bank Vietnam Ltd
Hua Nan Commercial Bank, Ltd, HCMC Branch
Hypo Alpe-Adria-Bank D.D.
Industrial & Commercial Bank of China
Industrial & Commercial Bank of China (Europe) Luxembourg
Industrial & Commercial Bank of China (Moscow)
Industrial & Commercial Bank of China Ltd, Dubai (DIFC) Branch
Industrial & Commercial Bank of China Luxembourg
Industrial & Commercial Bank of China, Frankfurt am Main De
Industrial & Commercial Bank of China, Hanoi Branch
Industrial & Commercial Bank of China, Head Office
Industrial & Commercial Bank of China, Karachi Branch
Industrial & Commercial Bank of China, Milan Branch
Industrial & Commercial Bank of China, Seoul Branch
Industrial Bank Co., Ltd
Industrial Bank of Korea, Vietnam Industrial & Commercial Bank of China
IInternational Finance Corporate
Intesa Sanpaolo SPA (Formerly Banca Intesa SPA) Head Office

Intesa Sanpaolo SPA (Formerly Banca Intesa SPA) Head Office


Intesa Sanpaolo SPA Head Office
Joint Stock Commercial Bank for Foreign Trade of Vietnam
Joint Stock Commercial Bank for Investment & Development of Vietnam
JPMorgan Chase Bank (China) Company Ltd Beijing Branch
JPMorgan Chase Bank (China) Company Ltd Chengdu Branch
JPMorgan Chase Bank (China) Company Ltd Guangzhou Branch
JPMorgan Chase Bank (China) Company Ltd Harbin Branch
JPMorgan Chase Bank (China) Company Ltd Shanghai Branch
JPMorgan Chase Bank (China) Company Ltd Suzhou Branch
JPMorgan Chase Bank (China) Company Ltd Tianjin Branch
JPMorgan Chase Bank Berhad, Kuala Lumpur
JPMorgan Chase Bank, N.A
JPMorgan Chase Bank, N.A
JPMorgan Chase Bank, N.A (European Headquaters)
JPMorgan Chase Bank, N.A. Singapore Branch
JPMorgan Chase Bank, N.A., HongKong Branch
JPMorgan Chase Bank, N.A., Mumbai Branch
JPMorgan Chase Bank, N.A., Philippines Branch
JPMorgan Chase Bank, N.A., Seoul Branch
JPMorgan Chase Bank, N.A., Taipei Branch
JPMorgan Chase Bank, N.A., Thailand Branch
JPMorgan Chase Bank, N.A., Tokyo Branch
JPMorgan Chase Bank, N.A., Vietnam
KBC Bank NV
Kien Long Commercial Joint Stock Bank
Kookmin Bank
Landesbank Baden-Wuerttemberg
Lien Viet Post Joint Stock Commercial Bank
MCB Bank Limited
Military Commercial Joint Stock Bank
Mizuho Bank (Malaysia) Berhad
Mizuho Bank, Ltd
Mizuho Bank, Ltd, Hanoi Branch
Mizuho Bank, Ltd. Singapore Branch
Mizuho Bank, Ltd. Sydney Branch
Mizuho Bank, Ltd., Manila Branch
Mizuho Bank, Ltd., Taipei Branch
Nam A Commercial Joint Stocj Bank
Nam Viet Commercial Joint Stock Bank
Orient Commercial Joint Stock Bank
Petrolimex Group Commercial Joint Stock Bank
Public Bank Bhd
Resona Bank Ltd.
Sai Gon - Ha Noi Commerical Joint Stock Bank
Sai Gon Thuong Tin Commercial JS Bank (SacomBank)
Saigon Commercial Bank (SCB)
Shanghai Commercial & Savings Banking, Ltd
Shinhan Bank
Skandinaviska Enskilda Banken
Skandinaviska Enskilda Banken AB
Skandinaviska Enskilda Banken AB (PUBL). Singapore Branch
Southeast Asia Commercial Joint Stock Bank
Standard Chartered Bank (Vietnam) Limited
Standard Chartered Bank Ltd
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation, Singapore Branch
Svenska Handelsbanken HongKong Branch
Towa Bank Ltd
UkrsotsBank
Unicredit Bank AG (HypovereinsBank)
Unicredit Bank AG HongKong Branch (Hypovereinsban HongKong)
Unicredit Bank AG Singapore Branch (HypoVereinsBank AG Singapore Branch)
UniCredit S.P.A
United Overseas Bank Ltd. HCMC Branch
United Overseas Bank Ltd. Head Office
Viet Capital Commercial JSB
Vietnam Bank for Agriculture & Rural Development
Vietnam Export Import Commercial JSB
Vietnam International Commercial Joint Stock Bank
Vietnam Joint Stock Commercial Bank for Industry & Trade
Vietnam Maritime Commercial Stock Bank
Vietnam Prosperity JSC Bank
Vietnam Public JSC Bank (PVCOMBANK)
Vietnam Russia Joint Venture Bank
Vietnam Technological & Commercial Joint Stock Bank
Vietnam Thuong Tin Commercial Joint Stock Bank
Wells Fargo Bank, N.A
Wells Fargo Bank, N.A
Wells Fargo Bank, N.A, New York International Branch
Wells Fargo Bank, N.A, Shanghai Branch
Wells Fargo Bank, N.A., Hongkong Branch
Wells Fargo Bank, N.A., London Branch
Wells Fargo Bank, N.A., Seoul Bracnh
Wells Fargo Bank, N.A., Taipei Branch
Wells Fargo Bank, N.A., Tokyo Bracnh
Woori America Bank
Woori America Bank, Los Angeles
Woori Bank, Hanoi
Woori Bank, HochiMinh
Woori Bank, Seoul
83
Zao CitiBank, Moscow