CONSOLIDATED FINANCIAL STATEMENTS

GREEN ACHIEVEMENTS

THRIVING FURTHER

CONSOLIDATED FINANCIAL STATEMENTS

THE BANK’S INFORMATION

Establishment and Operation Licence	No. 26/GP-NHNN dated 12 February 2020 The Establishment and Operation Licence No. 00019/NH-GP dated 6 June 1992 was initially issued by the State Bank of Vietnam (“SBV”) and was replaced by the Licence No. 26/GP-NHNN dated 12 February 2020 and Decisions for amendment, supplement of the Establishment and Operation Licence for a period of 99 years from the date of the initial licence.
Enterprise Registration Certificate	No. 0300608092 dated 11 August 1992 was initially issued by the Department of Planning and Investment of Ho Chi Minh City with the latest 33^rd amendment dated 5 September 2023.
Board of Directors	Mr. Kim Byoungho	Chairperson, Independent member
	Ms. Nguyen Thi Phuong Thao	Permanent Vice Chairperson
	Mr. Luu Duc Khanh	Vice Chairperson
	Mr. Nguyen Thanh Do	Vice Chairperson
	Mr. Nguyen Huu Dang	Vice Chairperson
	Mr. Le Manh Dung	Independent member
	Mr. Pham Quoc Thanh	Member (from 26 April 2023)
	Ms. Nguyen Thi Tam	Member (to 26 April 2023)
Board of Management	Mr. Pham Quoc Thanh	General Director
	Mr. Nguyen Minh Duc	Deputy General Director
	Mr. Le Thanh Tung	Deputy General Director
	Mr. Nguyen Van Hao	Deputy General Director (re-appointed on 2 October 2023)
	Mr. Nguyen Dang Thanh	Deputy General Director (re-appointed on 9 July 2023)
	Mr. Le Thanh Trung	Deputy General Director
	Mr. Tran Hoai Nam	Deputy General Director
	Mr. Tran Thai Hoa	Deputy General Director
	Mr. Nguyen Canh Vinh	Deputy General Director (re-appointed on 1 November 2023)
	Mr. Tran Xuan Huy	Deputy General Director (appointed on 16 October 2023)
	Mr. Pham Van Dau	Chief Financial Officer
Ms. Ho Dang Hoang Quyen	Chief Accountant
Board of Supervisors	Mr. Dao Duy Tuong	Head of Board of Supervisors
	Ms. Duong Thi Thu	Member
	Ms. Bui Thi Kieu Oanh	Member
	Mr. Nguyen Le Hieu	Member
Legal Representative	Mr. Pham Quoc Thanh	General Director
Registered Head Office	25Bis Nguyen Thi Minh Khai Street, Ben Nghe Ward, District 1, Ho Chi Minh City, Vietnam
Auditor	PwC (Vietnam) Limited

STATEMENT OF THE BOARD OF MANAGEMENT

STATEMENT OF RESPONSIBILITY OF THE BOARD OF MANAGEMENT OF THE BANK IN RESPECT OF THE CONSOLIDATED FINANCIAL STATEMENTS

The Board of Management of Ho Chi Minh City Development Joint Stock Commercial Bank (“the Bank”) is responsible for preparing the consolidated financial statements which give a true and fair view of the consolidated financial position of the Bank and its subsidiary as at 31 December 2023 and the consolidated results of its operations and its consolidated cash flows for the year then ended. In preparing the consolidated financial statements, the Board of Management is required to:

select suitable accounting policies and then apply them consistently;
make judgments and estimates that are reasonable and prudent; and
prepare the consolidated financial statements on a going concern basis unless it is inappropriate to presume that the Bank and its subsidiary will continue in business.

The Board of Management of the Bank is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the consolidated financial position of the Bank and its subsidiary and enable consolidated financial statements to be prepared which comply with the basis of accounting as set out in Note 2 to the consolidated financial statements. The Board of Management is also responsible for safeguarding the assets of the Bank and its subsidiary and hence for taking reasonable steps for the prevention and detection of fraud or error.

APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS

We hereby, approve the accompanying consolidated financial statements as set out on pages 5 to 83. The consolidated financial statements which give a true and fair view of the consolidated financial position of the Bank and its subsidiary as at 31 December 2023 and of the consolidated results of its operations and its consolidated cash flows for the year ended in accordance with Vietnamese Accounting Standards, Vietnamese Accounting System and regulations on the preparation and presentation of the consolidated financial statements applicable to credit institutions operating in Vietnam.

On behalf of the Board of Management

Pham Quoc Thanh
General Director

Ho Chi Minh City, Vietnam
29 March 2024

INDEPENDENT AUDITOR’S REPORT

INDEPENDENT AUDITOR’S REPORT TO THE SHAREHOLDERS OF
HO CHI MINH CITY DEVELOPMENT JOINT STOCK COMMERCIAL BANK

We have audited the accompanying consolidated financial statements of Ho Chi Minh City Development Joint Stock Commercial Bank (“the Bank”) and its subsidiary which were prepared on 31 December 2023 and approved by the Board of Management of the Bank on 29 March 2024. The consolidated financial statements comprise the consolidated statement of financial position as at 31 December 2023, the consolidated income statement, the consolidated cash flow statement for the year then ended, and explanatory notes to the consolidated financial statements including significant accounting policies, as set out on pages 5 to 83.

The Board of Management’s Responsibility

The Board of Management of the Bank is responsible for the preparation and the true and fair presentation of the consolidated financial statements of the Bank and its subsidiary in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System and regulations on preparation and presentation of consolidated financial statements applicable to credit institutions operating in Vietnam, and for such internal control which the Board of Management determines as necessary to enable the preparation and presentation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the consolidated 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 standards and requirements and plan and perform the audit in order to obtain reasonable assurance as to whether the consolidated financial statements of the Bank and its subsidiary are free from material misstatement.

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

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

Auditor’s Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Bank and its subsidiary as at 31 December 2023, its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting Standards, Vietnamese Accounting System and regulations on the preparation and presentation of the consolidated financial statements applicable to credit institutions operating in Vietnam.

Other Matter

The independent auditor’s report is prepared in Vietnamese and English. Should there be any conflict between the Vietnamese and English versions, the Vietnamese version shall take precedence.

Nguyen Hoang Nam
Audit Practising Licence No.
0849-2023-006-1
Authorised signatory

Report reference number: HCM15221
Ho Chi Minh City, 30 March 2024

Mai Tran Bao Anh
Audit Practising Licence No.
4166-2022-006-1

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Form B02/TCTD-HN

As at 31 December
		Note	2023 VND million	2022 VND million
A	ASSETS
I	Cash on hand, gold, silver, precious metals	3	2,810,044	2,937,994
II	Balances with SBV	4	41,481,638	11,273,345
III	Placements with and loans to other credit institutions		96,514,863	49,132,317
1	Placements with other credit institutions	5.1	88,120,085	40,322,487
2	Loans to other credit institutions	5.2	8,394,778	8,809,830
IV	Held-for-trading securities		18,580,932	1,797,822
1	Held-for-trading securities	6.1	18,580,932	1,797,822
V	Derivatives financial instruments and other financial assets	7	110,079	-
VI	Loans to customers	8	339,349,838	260,754,811
1	Loans to customers		343,404,295	263,856,383
2	Provisions for losses on loans to customers		(4,054,457)	(3,101,572)
VIII	Investment securities		44,092,289	48,789,184
1	Available-for-sale investment securities	9.1	31,871,688	35,375,058
2	Held-to-maturity investment securities	9.2	12,304,873	13,444,130
3	Provisions for diminution in value of investment securities	9.6	(84,272)	(30,004)
IX	Other long-term investments	10	143,781	144,023
4	Other long-term investments		163,921	163,921
5	Provisions for diminution in value of long-term investments		(20,140)	(19,898)
X	Fixed assets		1,422,759	1,315,057
1	Tangible fixed assets	11.1	713,141	631,621
a	Historical cost		1,702,786	1,519,411
b	Accumulated depreciation		(989,645)	(887,790)
3	Intangible fixed assets	11.2	709,618	683,436
a	Historical cost		1,076,187	1,006,273
b	Accumulated amortisation		(366,569)	(322,837)
XII	Other assets		57,808,636	40,128,470
1	Other receivables	12.1	48,942,933	33,406,609
2	Interests and fees receivables	12.2	6,602,101	4,403,501
3	Deferred tax assets	31	76,708	32,798
4	Other assets	12.3	2,233,415	2,331,870
	- In which: Goodwill	12.4	-	4,799
5	Provisions for losses on other assets		(46,521)	(46,308)
	TOTAL ASSETS		602,314,859	416,273,023
B	LIABILITIES AND EQUITY
I	Borrowings from the Government and SBV	13	26,590	10,821,258
1	Deposits and borrowings from the Government, SBV		26,590	10,821,258
II	Placements and borrowings from other credit institutions		112,086,978	92,653,200
1	Placements from other credit institutions	14.1	62,597,686	49,440,640
2	Borrowings from other credit institutions	14.2	49,489,292	43,212,560
III	Deposits from customers	15	370,777,888	215,797,174
IV	Derivatives financial instruments and other financial liabilities	7	-	226,480
V	Funds, entrusted investments and borrowings received that the Bank bears risks	16	2,811,129	2,860,155
VI	Valuable papers issued	17	50,938,148	44,161,640
VII	Other liabilities	18	19,273,804	10,758,230
1	Interests and fees payables	18.1	10,346,499	5,052,933
3	Other liabilities	18.2	8,927,305	5,705,297
	TOTAL LIABILITIES		555,914,537	377,278,137
VIII	Equity	19	46,400,322	38,994,886
1	Capital		29,198,918	25,426,026
a	Charter capital		29,076,321	25,303,429
b	Investment and construction capital		89	89
c	Shares premium		535,956	535,956
d	Treasury shares		(413,448)	(413,448)
2	Reserves		4,708,243	3,527,727
5	Retained earnings		10,561,698	7,999,785
6	Non-controlling interests		1,931,463	2,041,348
	TOTAL EQUITY		46,400,322	38,994,886
	TOTAL LIABILITIES AND EQUITY		602,314,859	416,273,023

CONSOLIDATED OFF-STATEMENT OF FINANCIAL POSITION ITEMS

As at 31 December
		Note	2023 VND million	2022 VND million
1	Borrowing guarantees	36.1	809,436	406,790
2	Foreign exchange transactions commitments	36.1	259,213,350	69,775,987
	- Buying foreign currency commitments		4,293,490	2,512,790
	- Selling foreign currency commitments		4,542,374	2,912,961
	- Swap commitments		250,377,486	64,350,236
4	Letters of credit (“LC”) commitments	36.1	2,191,087	4,155,744
5	Other guarantees	36.1	15,548,620	4,215,505
6	Other commitments	36.1	5,318,378	3,724,488
7	Interests and fees receivables not yet collected	37.1	2,364,349	1,518,715
8	Bad debts written-off	37.2	15,584,338	11,426,060
9	Other assets and documents	37.3	27,061,445	14,277,966
			328,091,003	109,501,255

Ho Dang Hoang Quyen
Chief Accountant

Pham Van Dau
Chief Financial Officer

Pham Quoc Thanh
General Director
29 March 2024

CONSOLIDATED INCOME STATEMENT

Form B03/TCTD-HN

Year ended 31 December
		Note	2023 VND million	2022 VND million
1	Interest and similar income	20	52,640,577	33,323,404
2	nterest and similar expenses	21	(30,456,603)	(15,311,836)
I	Net interest income		22,183,974	18,011,568
3	Fee and commission income	22	2,830,168	3,308,455
4	Fee and commission expenses	23	(642,366)	(351,637)
II	Net fee and commission income		2,187,802	2,956,818
III	Net gain from trading in foreign currencies	24	564,703	134,237
IV	Net gain from trading of held-for-trading securities	25	41,723	16,986
V	Net gain from trading of investment securities	26	1,167,005	312,620
5	Other income		541,644	588,126
6	Other expenses		(282,491)	(60,036)
VI	Net other income	27	259,153	528,090
VII	Income from investments in other entities	28	9,325	6,785
VIII	Operating expenses	29	(9,129,202)	(8,630,709)
IX	Operating profit before provisions for credit losses		17,284,483	13,336,395
X	Provisions for credit losses	30	(4,267,751)	(3,068,339)
XI	Profit before tax		13,016,732	10,268,056
7	Corporate income tax (“CIT”) expenses - current	31	(2,724,629)	(2,091,986)
8	CIT expenses - deferred	31	43,910	33,400
XII	CIT expenses		(2,680,719)	(2,058,586)
XIII	Net profit after tax		10,336,013	8,209,470
	Attributable to:
	Shareholders of the Bank		10,070,898	7,749,794
	Non-controlling interests		265,115	459,676
XV	Earnings per share (VND/share)	19.2	3,482	2,689

Ho Dang Hoang Quyen
Chief Accountant

Pham Van Dau
Chief Financial Officer

Pham Quoc Thanh
General Director
29 March 2024

CONSOLIDATED CASH FLOW STATEMENT

(Direct method)

Form B04/TCTD-HN

Year ended 31 December
		Note	2023 VND million	2022 VND million
	CASH FLOWS FROM OPERATING ACTIVITIES
01	Interest and similar income received		50,366,284	32,577,872
02	Interest and similar expenses paid		(25,602,661)	(14,319,631)
03	Net fee and commission income received		2,596,238	2,792,794
04	Net amount received from trading activities (foreign currencies, golds and securities)		1,654,834	225,515
05	Other income		88,876	111,209
06	Recoveries of written-off loans		290,855	437,234
07	Payments to employees and for administrative expenses		(8,980,790)	(8,668,312)
08	CIT paid during the year	34	(2,241,447)	(1,154,553)
	NET CASH INFLOWS FROM OPERATING ACTIVITIES BEFORE CHANGES IN OPERATING ASSETS AND LIABILITIES		18,172,189	12,002,128
	Changes in operating assets
09	Decrease/(increase) in placements with and loans to other credit institutions		415,052	(8,704,484)
10	(Increase)/decrease in securities trading		(12,165,396)	26,010,304
11	Increase in derivatives financial instruments and other financial assets		(110,079)	-
12	Increase in loans to customers		(79,547,912)	(60,645,482)
13	Utilisations of provisions for losses on loans to customers		(3,314,867)	(2,418,835)
14	Increase in other operating assets		(14,661,359)	(13,057,913)
	Changes in operating liabilities
15	(Decrease)/increase in borrowings from the SBV		(10,794,668)	10,728,602
16	Increase/(decrease) in placements and borrowings from other credit institutions		19,433,778	(14,589,382)
17	Increase in deposits from customers		154,980,714	32,514,057
18	Increase in valuable papers issued		6,776,508	1,405,527
19	Decrease in funds, entrusted investments and borrowings received that the Bank bears risks		(49,026)	(76,709)
20	Decrease)/increase in derivatives financial instruments and other financial liabilities		(226,480)	210,930
21	Increase in other operating liabilities		1,778,906	912,441
22	Payments from reserves of credit institutions		(30,315)	(10,262)
I	NET CASH INFLOWS/(OUTFLOWS) FROM OPERATING ACTIVITIES		80,657,045	(15,719,078)
	CASH FLOWS FROM INVESTING ACTIVITIES
01	Purchases of fixed assets		(273,921)	(122,001)
02	Proceeds from disposals of fixed assets		753	21,447
08	Proceeds from investments in other entities		-	500
09	Dividends and shared profits received from long-term investments		9,325	22,069
II	NET CASH OUTFLOWS FROM INVESTING ACTIVITIES		(263,843)	(77,985)
	CASH FLOWS FROM FINANCING ACTIVITIES
01	Proceeds from issuance of shares		-	200,000
04	Dividends paid	19.1	(2,515,261)	-
III	NET CASH (OUTFLOWS)/INFLOWS FROM FINANCING ACTIVITIES		(2,515,261)	200,000
IV	NET CASH INFLOWS/(OUTFLOWS) FOR THE YEAR		77,877,941	(15,597,063)
V	CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR		54,533,826	70,130,889
VII	CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	32	132,411,767	54,533,826