Saigon Thuong Tin Commercial J

Saigon Thuong Tin Commercial Joint Stock Bank
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Company Overview
Saigon Thuong Tin Commercial
Saigon Thuong Tin Commercial Joint Stock
Joint Stock Bank Bank (Sacombank) is a banking and financial
services provider based in Vietnam. The bank
offers a wide range of corporate and retail
Fast Facts banking products and services. Its key offerings
266 - 268 Nam Ky Khoi Nghia, Ho Chi Minh, include savings accounts, deposits, credit cards,
Headquarters Address
,Vietnam debit cards, prepaid cards, business loans,
Telephone + 84 8 39320420
home loans, car loans, consumer loans and
hedge and investment solutions. In addition, the
Fax + 84 8 39320424 bank offers overdrafts, factoring services, project
loan, term deposits, flexible deposit,
Website www.sacombank.com.vn international trade services, internet banking,
mobile banking and ATM services. The bank,
Ticker Symbol, Stock Exchange TAKAFUL-EM (Dubai Stock Exchange) along with its subsidiaries, operates through 416
banking offices in Vietnam, Cambodia and Laos.
Number of Employees 10,310 Sacombank is headquartered in Ho Chi Minh
City, Vietnam.
Fiscal Year End December
Total Income (in US$ million) 900
SWOT Analysis
Strengths Weaknesses
Capital adequacy Declining cash position
Increase in total deposits Weak financial performance
Increasing loan loss provision
Strong distribution network
Opportunities Threats
Growing economy in Vietna Changing regulations
Positive outlook for the Vietnamese life

Fluctuations in interest rates
insurance market
Strategic agreements Increase in compliance costs
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Saigon Thuong Tin Commercial Joint Stock Bank - Page 1

SWOT Profile
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5

1.1 Company Overview ......................................................................................................................................... 5
1.2 Business Description ....................................................................................................................................... 6
1.3 Major Products and Services ........................................................................................................................... 7
2 Analysis of Key Performance Indicators ............................................................................................... 9
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ....................................... 9
2.2 Key Financial Performance Indicators ............................................................................................................ 11
2.2.1 Valuation ................................................................................................................................................... 11
2.3 Key Competitors ............................................................................................................................................ 12
3 Mergers & Acquisitions and Partnerships ........................................................................................... 13
3.1 M&A and Partnerships Strategy ..................................................................................................................... 13
4 Recent Developments ........................................................................................................................... 15
5 SWOT Analysis ...................................................................................................................................... 16
5.1 SWOT Analysis - Overview ............................................................................................................................ 16
5.2 Strengths ....................................................................................................................................................... 16
5.3 Weaknesses .................................................................................................................................................. 16
5.4 Opportunities ................................................................................................................................................. 17
5.5 Threats .......................................................................................................................................................... 17
6 Company Statement .............................................................................................................................. 18
7 History .................................................................................................................................................... 19
8 Key Employees ...................................................................................................................................... 21
9 Key Employee Biographies ................................................................................................................... 22
10 Locations and Subsidiaries .................................................................................................................. 23
10.1 Head Office ................................................................................................................................................... 23
10.2 Other Locations and Subsidiaries .................................................................................................................. 23
11 Appendix ................................................................................................................................................ 25
11.1 Methodology .................................................................................................................................................. 25
11.2 Ratio Definitions ............................................................................................................................................ 25
11.3 Disclaimer ..................................................................................................................................................... 29
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Saigon Thuong Tin Commercial Joint Stock Bank - Page 2

SWOT Profile
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List of Tables
Table 1: Major Products and Services ............................................................................................................................. 7

Table 2: Key Ratios - Annual ........................................................................................................................................... 9
Table 3: Key Ratios - Interim ......................................................................................................................................... 10
Table 4: Key Capital Market Indicators .......................................................................................................................... 10
Table 5: History ............................................................................................................................................................. 19
Table 6: Key Employees ................................................................................................................................................ 21
Table 7: Key Employee Biographies .............................................................................................................................. 22
Table 8: Subsidiaries ..................................................................................................................................................... 23
Table 9: Locations ......................................................................................................................................................... 24
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Saigon Thuong Tin Commercial Joint Stock Bank - SWOT Profile Page 3
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List of Figures
Figure 1: Valuation ........................................................................................................................................................ 11
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1 Business Analysis
1.1 Company Overview
Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) is a banking and financial services provider based in
Vietnam. The bank offers a wide range of corporate and retail banking products and services. Its key offerings include
savings accounts, deposits, credit cards, debit cards, prepaid cards, business loans, home loans, car loans, consumer
loans and hedge and investment solutions. In addition, the bank offers overdrafts, factoring services, project loan, term
deposits, flexible deposit, international trade services, internet banking, mobile banking and ATM services. The bank,
along with its subsidiaries, operates through 416 banking offices in Vietnam, Cambodia and Laos. Sacombank is
headquartered in Ho Chi Minh City, Vietnam.
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1.2 Business Description
Sacombank is a provider of retail and corporate banking products and services based in Vietnam. The bank, through its
products and services, caters to the needs of two million customers including individual and corporate customers. As on
December 31, 2012, Sacombank had 72 domestic branches, six international branches, 337 transaction offices, 780 ATM
centers and 3,155 point of sale terminals. The bank, along with its subsidiaries, operates in three countries comprising
Vietnam, Cambodia and Laos.
Sacombank classifies its products and services into two divisions: Personal Banking and Corporate Banking.
The bank, through its Personal Banking division, offers savings accounts, deposits, business loan, home loans, car loans,
consumer loans, demand saving deposits, credit cards, debit cards, prepaid cards, securities - linked product and transfer
services. In addition, the bank offers hedge and investment services such as financial planning services, tower deposits,
forward transaction and option transaction. Furthermore, the bank offers internet banking services, phone banking
services, ATM services, bill payment services and travelers cheques exchange services.
Sacombank, through its Corporate Banking division, provides tiered deposits, flexible deposit, payment deposit, term
deposit, letter of credit issuance and advisory services, telegraphic transfer services and collection services. In addition, it
offers range of credit options including secured overdraft, guaranteed loans, loan for small and medium sized enterprises,
domestic factoring, project loan, business loans, manufacturing loans, business loan, vehicle loans, loan for automobile
distribution wholesalers and loan deposit for sales. Furthermore, it offers hedge and investment services for corporate
including foreign exchange services, commodity derivative products and repurchase debt security.
Furthermore, the bank through Sacombank Imperial Center provides financial planning and wealth management products
and services. Its offerings include current account, savings accounts, loans, portfolio management services, stocks,
structured deposits, derivatives, investment portfolio services, term life insurance, family income protection insurance,
whole life insurance, health insurance and safety deposit box.
In March 2013, the bank received „The strongest brands of Vietnam Award 2012‟ by Vietnam Economics Times and the
Trade Promotion Agency under the Ministry of Industry and Trade in Ha Noi. In January 2013, Sacombank and Vietnam
Export Import Joint-Stock Commercial Bank signed a five years agreement in order to enhance the competitive capacity
of both the parties, with prime focus on co-financing loans, currency trading, issuing terms in the inter-bank operations,
restructuring, training, human resources, technical assistance and strategic merger areas. During the same month, the
bank along with Visa Inc., launched Visa Infinite credit card.
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1.3 Major Products and Services
Saigon Thuong Tin Commercial Joint Stock Bank provides banking and financial solutions in Vietnam, Cambodia and
Laos. Key products and services offered by the bank include:
Table 1: Major Products and Services

Products:
Savings accounts
Deposits
Business loan
Home loans
Car loans
Consumer loans
Demand saving deposits
Credit cards
Debit cards
Prepaid cards
Securities - linked product
Tower deposits
Forward transaction
Option transaction
Tiered deposits
Flexible deposit
Payment deposit
Term deposit
Secured overdraft
Guaranteed loans
Small and medium sized enterprises loans
Domestic factoring
Project loan
Business loans
Manufacturing loans
Business loan
Vehicle loans
Automobile distribution wholesalers loans
Loan deposit for sales
Foreign exchange services
Commodity derivative products
Repurchase debt security
Current account
Stocks
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Table 1: Major Products and Services

Derivatives
Term life insurance
Family income protection insurance
Whole life insurance
Health insurance
Safety deposit box
Services:
Wealth management services
Transfer services
Financial planning services
Internet banking services
Phone banking services
ATM services
Bill payment services
Travelers cheques exchange services
Telegraphic transfer services
Collection services
Letter of credit issuance and advisory services
Investment portfolio services

Source: World Market Intelligence
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2 Analysis of Key Performance Indicators

2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators
The company reported revenue of US$900 million during the fiscal year 2012 (2012). The company's revenue grew at a
CAGR of 12.56% during 2008 - 2012, with an annual decline of -8.12% over 2011. In 2012, the company recorded a net
profit margin of 5.45% compared to a net profit margin of 10.32% in 2011.
Table 2: Key Ratios - Annual
Key Ratios Unit/Currency 2012 2011 2010 2009 2008

Equity Ratios
EPS (Earnings per Share) VND 1029.16 2240.88 2421.57 2189.39 1181.48
Dividend per Share VND 570.00 1425.00
Dividend Cover Absolute 1.81 1.70
Book Value per Share VND 14064.88 14879.83 14599.05 12438.40 9940.41
Profitability Ratios
Net Profit Margin % 5.45 10.32 11.94 16.43 10.24
PBT Margin (Profit Before Tax) % 8.11 15.51 21.70 30.47 15.50
Return on Equity % 7.32 14.21 13.63 15.84 12.31
Return on Assets % 0.66 1.46 1.25 1.61 1.40
Return on Fixed Assets % 4.27 4.13 2.55 2.21 1.68
Growth Ratios
EBITDA Growth % -50.63 8.21 17.72 95.95 -29.84
Net Income Growth % -51.49 8.17 14.35 74.97 -31.70
EPS Growth % -56.26 -5.60 10.31 112.51 -52.69
Cost Ratios
Operating Costs (% of Sales) % 61.49 67.30 67.03 67.74 83.99
Leverage Ratios
Debt to Equity Ratio Absolute 0.83 1.78 2.38 2.46 0.99
Net Debt to Equity Absolute 0.83 1.78 2.38 2.46 0.99
Debt to Capital Ratio Absolute 0.07 0.18 0.22 0.25 0.11
Efficiency Ratios
Asset Turnover Absolute 0.11 0.13 0.08 0.07 0.10
Capital Employed Turnover Absolute 1.23 1.23 0.84 0.68 0.92
Capex to Sales % 5.26 10.49 13.34 20.04 16.82
Efficiency Ratio Absolute 0.32 0.27 0.44 0.40 0.30
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Table 3: Key Ratios - Interim
Key Ratios Unit/Currency Mar-2013 Dec-2012 Sep-2012 Jun-2012

Equity Ratios
Interim EPS (Earnings per Share) VND 693.80 -598.64 422.33 375.97
Book Value per Share VND 14726.74 14064.88 14652.98 14222.37
Net Profit Margin % 15.92 -13.98 10.05 8.64
PBT Margin (Profit Before Tax) % 21.04 -19.19 14.37 12.18
Cost Ratios
Operating Costs (% of Sales) % 57.33 57.06 59.05 64.60
Leverage Ratios
Debt to Equity Ratio Absolute 0.18 0.26 0.37 0.39
Net Debt to Equity Absolute 0.18 0.26 0.37 0.39
Debt to Capital Ratio Absolute 0.04 0.04 0.02 0.02
Table 4: Key Capital Market Indicators
Key Ratios 23-Jul-2013

P/E (Price/Earnings) Ratio 16.52
EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation and Amortization) 7.30
Enterprise Value/Sales 0.59
Enterprise Value/Operating Profit 1.54
Enterprise Value/Total Assets 0.07
Dividend Yield 0.03
Note: Above ratios are based on share price as of 23-Jul-2013. The above ratios are absolute numbers.
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2.2 Key Financial Performance Indicators
2.2.1 Valuation
As of 23-Jul-2013, the company recorded an EV/EBIT of 1.54, EV/Total Assets of 0.07 and EV/Sales of 0.59.
Figure 1: Valuation
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2.3 Key Competitors
The following companies are the major competitors of Saigon Thuong Tin Commercial Joint Stock Bank:
ANZ Bank (Vietnam) Limited
Asia Commercial Joint Stock Bank (Ticker: ACB)
HSBC Bank (Vietnam) Ltd.
Indovina Bank Limited
Saigon - Hanoi Commercial Joint Stock Bank (Ticker: SHB)
Technological and Commercial Joint Stock Bank Vietnam
Vietnam Export Import Commercial Joint Stock Bank (Ticker: EIB)
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3 Mergers & Acquisitions and Partnerships

3.1 M&A and Partnerships Strategy
Manulife Vietnam partners with Saigon Thuong Tin Commercial Joint Stock Bank
Deal Type Partnership Deal Sub Type Affinity Marketing
Deal Status Completed Announced Date 10/22/2012 12:00:00 AM
Deal in Brief
Manulife Vietnam Limited (Manulife), a provider of insurance products and services, and Saigon Thuong Tin Commercial
Joint Stock Bank (Sacombank), a provider of personal and commercial banking services, have entered into
bancassurance partnership to distribute Manulife‟s insurance products through Sacombank branches.
In addition, Manulife and Sacombank have also signed a cooperation agreement in order to diversify products and
services, and to improve customer service quality and the competence of both companies.
Accordingly, Manulife Vietnam‟s customers will have more insurance payment methods through Sacombank.
Customers can authorize Sacombank to deduct money automatically from an account opened at Sacombank to pay
regular insurance premium; or customers can also pay insurance premium via Sacombank‟s online banking using Visa,
Master, JCB, Union Pay card.
Participant Company Information
Company Name Manulife (Vietnam) Limited Involvement Type Target
Company Overview
Manulife (Vietnam) Limited (Manulife) is an insurance services provider, based in Vietnam. The company offers insurance
products, such as term insurance, life insurance, health insurance, medical insurance, accidental death insurance,
disability insurance and disease insurance. It also provides retirement insurance, home insurance, home repair
insurance, disability insurance, accidental death insurance, supplementary insurance for serious illness, benefits exempt
insurance and special insurance. Manulife caters its products to private and public sectors. The company has operations
in Hai Ba Trung, Cau Giay, Ngo Quyen, Thanh Khe, Nha Trang, Ha Long, Dong Tho City, Ninh Binh, Pleiku and Hoang
Dieu, Vietnam. It operates as a subsidiary of Manufacturers Life Insurance Co. Manulife is headquartered in Ho Chi Minh,
Vietnam.
Dai-ichi Life Insurance Company forms bancassurance partnership with Sacombank in Vietnam
Deal in Brief
Dai-ichi Life Insurance Company of Vietnam, Ltd., a provider of individual and group life insurance products, has entered
into a partnership agreement with Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), a provider of
investments, deposits and retail banking services, to sell its life insurance products through Sacombank‟s network. Both
companies involved in the transaction are based in Vietnam.
As part of the agreement, Dai-ichi Life Insurance Company and Sacombank have launched a new bancassurance
product for the Sacombank‟s individual customers to have their loans from this bank guaranteed without having to
undergo any health check.
Pursuant to the transaction, Dai-ichi Life Insurance Company will provide courses on life insurance and customer‟s
services for consultants of Sacombank.
The partnership enables Dai-ichi Life Insurance Company to work with Sacombank to jointly develop suitable
bancassurance products for distribution through the Sacombank‟s network across Vietnam.
The partnership is part of Dai-ichi Life Insurance Company‟s strategy to reach out to more customers and bring proper life
insurance products to borrowers of Sacombank.
Dai-ichi Life Insurance Company has provided its life insurance products to nearly 700,000 Vietnamese customers and
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expanded its presence through more than 80 offices in Vietnam.

Dai-ichi Life Insurance
Company Name Involvement Type Target
Company of Vietnam, Limited
Company Overview
Dai-ichi Life Insurance Company of Vietnam, Limited (Dai-ichi Life) is a life insurance company, based in Vietnam. The
company offers its products through divisions, such as products by life stage, and products by financial needs. Its
products by life stage division offers celibate, new married, families with children, adults and retirement insurance. The
company‟s products by financial needs division provides education, savings plan, investment plan, protection plan and
business insurance. In addition, the company offers lifetime critical illness insurance, group life insurance, accidental
death and disablement insurance and total permanent disability insurance, among others. It offers its products throughout
Vietnam. The company operates as a subsidiary of The Dai-Ichi Life Insurance Company, Limited. Dai-ichi Life is
headquartered in Ho Chi Minh, Vietnam.
Chinatrust Commercial Bank partners with Sacombank

Deal Type Partnership Deal Sub Type Co-development
Deal in Brief
Chinatrust Commercial Bank Co., Ltd., a Taiwanese provider of banking and other financial services, has partnered with
Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) to expand its business in Vietnam.
Sacombank is a Vietnamese provider of investments, deposits and retail banking services.

Chinatrust Commercial Bank
Company Name Involvement Type Target
Co., Ltd.
Company Overview
Chinatrust Commercial Bank Co., Ltd (Chinatrust) is a financial services firm based in Taiwan. It offers a range of banking
and other financial products and services to corporate and retail customers. Its product and service portfolio includes
deposits, loans, guarantees, foreign exchange, trust services, credit cards, debit cards, prepaid cards, securities, bonds,
proprietary futures, derivative financial products, trade finance, factoring, safe deposit boxes, cash management, advisory
services, wealth management, internet banking, mobile banking and ATM services. As of December 2012, the bank
operated through a network of 147 branches in Taiwan, 68 overseas branches and 4,996 ATMs. Chinatrust Commercial
Bank is headquartered in Taipei, Taiwan.
Sacombank partners with Prudential Vietnam to provide life insurance policies

Deal in Brief
Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), a provider of investments, deposits and retail banking
services, has formed a partnership with Prudential Vietnam Assurance Private Ltd. (Prudential Vietnam), a provider of life
insurance, critical illness insurance, health care insurance, death and totally and permanently dismemberment, micro
insurance, financial support and accident insurance. Both companies involved in the transaction are based in Vietnam.
Pursuant to the transaction, Sacombank will provide Prudential Vietnam's life insurance policies to its consumer loan
customers. If the policyholder is unable to repay due to death or permanent disability, Prudential Vietnam will repay the
outstanding loan balance to the Sacombank.
Prudential Vietnam accounted for approximately a 40% of market share of life insurance in terms of premium turnover in
the first quarter of 2009.
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4 Recent Developments
Sacombank receives The strongest brands of Vietnam Award 2012
Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) honorably received The strongest brands of Vietnam Award 2012 at
the 9th prize-granting ceremony held by Vietnam Economics Times and the Trade Promotion Agency under the Ministry of Industry
and Trade on March 16th 2013 in Ha Noi.
Published Date : 3/18/2013 12:00:00 AM
Visa Infinite debuts in Vietnam
Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has coorperated with Visa to debut Visa Infinite, the highest-grade
credit card of Visa. It is the most sophisticated of the three premium credit cards of Visa, namely Platinum, Signature and Infinite.
Published Date : 1/28/2013 12:00:00 AM
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5 SWOT Analysis
5.1 SWOT Analysis - Overview
Sacombank is a banking and financial services bank offering range of commercial and retail banking products and
services. Strong distribution network, capital adequacy, increase in total deposits and loan loss provision are the key
strengths of the bank, even as weak financial performance and declining cash position remain areas of concern. Going
forward, fluctuations in interest rates, changing regulations and increase in compliance costs may affect the bank‟s
business performance. However, strategic agreements, positive outlook for the Vietnamese life insurance market and
growing economy in Vietnam will provide ample growth opportunities for the bank.
5.2 Strengths
Capital adequacy
Strong capital adequacy enables the bank to meet regulatory capital requirements vis-à-vis its risk-weighted assets and to
address bank stress tests conducted by national banking regulators. The good capital management enabled the bank to
strengthen its capital position. The bank was required to maintain a minimum total capital ratio of 9.00%. The bank
reported total capital ratio of 9.53% during FY2012, meeting the regulatory requirements. Prudent capital management of
the bank strengthened its capital, which in turn will enable it to withstand periods of banking stress.
Strong distribution network
Strong distribution network helps the bank to retain its existing customer and attract new clients. The bank offers its
products and services through multiple channels including direct service network, branch outlets, transaction offices, and
electronic channels. As on December 31, 2012, Sacombank had 72 domestic branches, six international branches, 337
transaction offices, 780 ATM centers and 3,155 point of sale terminals. Furthermore, its electronic channels include
internet banking, telephone banking, mobile banking and ATM banking. Such strong distribution network allows the bank
to serve its customers efficiently.
Increase in total deposits
Increase in total deposits of the bank reflects strong customer sentiments and better returns on cash deposits.
Sacombank has exhibited increase in its total deposits during FY2012. The bank reported total deposits of US$5.31 billion
during FY2012. The bank's total deposits grew at a CAGR of 21.03% during 2008–12 with an annual growth of 32.83%
over FY2011. Such increase in total deposits strengthens the bank‟s financial position and expands its lending
capabilities.
Increasing loan loss provision
Sacombank has reported an increase in loan loss provision in FY2012. The bank reported total loan losses provision of
US$65.10 million compared with US$19.31 million in FY2011 and US$15.54 million in FY2010. Although a high loan loss
provision boosts profitability, it assists the bank to manage the risk against unexpected loan losses. With increase in loan
losses, the bank is forced to utilize its retained earnings, which form a part of the bank‟s regulatory capital, for meeting
cash flow obligations. Such increase in loan loss provision showcases its strong lending base.
5.3 Weaknesses
Weak financial performance
Sacombank displayed poor financial growth in FY2012 during which the bank recorded significant decline in income
levels. The bank recorded decline in revenues from US$978.96 million in FY2011 to US$899.50 million in FY2012. The
bank also reported 50.63% decline in operating income from US$135.48 million in FY2011 to US$66.88 million in FY2012.
In addition, the bank exhibited 51.49% decline in net income from US$101.04 million in FY2011 to US$49.01 million in
FY2012. Decline in revenues was primarily due to decrease in interest and non interest income compared with FY2011.
The bank's poor financial performance may reduce investors‟ confidence and have a negative impact on its growth
prospects.
Declining cash position
The decrease in the bank's cash position may be a concern, as it may affect its ability to meet its short-term obligations.
Its cash and cash equivalents declined from US$918.04 million at the end of FY2011 to US$821.18 million at the end of
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FY2012, representing a decline of 10.55% over the previous year. Lack of sufficient cash or cash equivalents may
negatively affect the working capital requirements of the bank, which might hamper its operations.
5.4 Opportunities
Positive outlook for the Vietnamese life insurance market
The positive outlook for the Vietnamese life insurance market is likely to drive the demand for the bank‟s life insurance
products. According to in-house research, the value of the Vietnamese life insurance market increased from VND9.39
trillion (US$572 million) in FY2007 to VND16.03 trillion (US$771 million) in 2011, recording a CAGR of 14.30% during
FY2007-11. This market is further expected to reach VND26.88 trillion (US$1.20 billion) in FY2016, recording a projected
CAGR of 10.90% over FY2012-16. As a provider of life insurance products in Vietnam, the bank is well placed to benefit
from the positive outlook for the Vietnamese life insurance market.
Growing economy in Vietna
Growing economy in Vietnam will provide significant opportunities for the bank. According to IMF, during 2012, the GDP
growth rate of Vietnam grew to 5.00%. Furthermore, the GDP growth rate of Vietnam is expected to reach 5.20% in 2013
and 2014. Sacombank, a provider of retail banking and commercial banking services with significant operations in
Vietnam, is well positioned to benefit from the growing economy.
Strategic agreements
Strong business agreements help the bank to benefit from the synergies. In this direction, during January 2013,
Sacombank and Vietnam Export Import Joint-Stock Commercial Bank signed a five years agreement in order to enhance
the competitive capacity of both the parties, with prime focus on co-financing loans, currency trading, issuing terms in the
inter-bank operations, restructuring, training, human resources, technical assistance and strategic merger areas. Earlier,
in November 2012, the bank signed an agreement with Infosys, a leading e-banking software and technology consulting
firms to provide internet banking products and services and enhance customer satisfaction in the area of e-banking. In
addition, during October 2012, the bank signed a cooperative agreement with and Manulife Vietnam to diversify products
and services, and enhance customer service quality. These business agreements support the sharing of best practices
while minimizing expenses and benefit the bank in expanding the geographic and brand reach.
5.5 Threats
Fluctuations in interest rates
Fluctuations in interest rates may have a material adverse effect on the book value of the bank. Interest rates are highly
sensitive to monetary policies of government, domestic and international economic and political conditions and other
factors beyond its control. The bank's investment portfolio contains interest rate sensitive-investments. Increase in market
interest rates may decrease unrealized capital gains on fixed income securities of the bank‟s investment portfolio.
However, the decline in market interest rates may have an adverse impact on the bank‟s investment income. The defaults
in the bank's investment portfolio may lead to operating losses and reduce its reserves and surplus.
Changing regulations
The bank‟s businesses are regulated by various governmental and regulatory authorities in countries of its operations.
The bank is subject to the changes in regulations, which may affect its overall performance. Sacombank is required to
comply with guidelines set by various governmental and regulatory authorities. Its earnings can be affected by the change
in the monetary policy, change in interest rate and changes in the regulatory requirements. Such changes may impact the
bank‟s performance.
Increase in compliance costs
The compliance costs for the bank may continue to grow due as the current financial crisis led to additional regulations.
The compliance burden on banks probably increased in an attempt by the government to prevent future crises. The Basel
Committee on Banking Supervision, the Senior Supervisors Group and the Institute of International Finance has issued
reports reflecting the changes in the regulatory process and risk management practices. The Federal Reserve has also
issued new regulations for mortgage origination to guard consumers. This may result in enhanced regulatory environment
and add extra pressure on the banks, which are already in the process of improving their own governance processes.
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6 Company Statement
A statement by Mr. Pham Huu Phu, the Chairperson of Saigon Thuong Tin Commercial Joint Stock Bank is given below.
The statement has been taken from the bank‟s 2012 Annual Report.
Over 21 years of incorporation and development (21st December 1991 – 21st December 2012), through all the ups and
downs, Sacombank of today is proud to hold the position of one of the leading Vietnamese commercial joint stock banks,
with total assets of over VND150 trillion, equity capital over VND14 trillion and especially a large network of 420 business
locations in 48 out of 63 provinces and cities of Vietnam and in Laos and Cambodia.
In 2012, despite various difficulties and challenges, Sacombank still maintained its growth rate, expressed in material
indicators, such as deposit in economic organizations and residents grows by over 24%, loan growth by over 20%, bad
debts controlled at the safe level in accordance with the regulations of the State Bank of Vietnam. As for profits, under the
slogan of “Side by side, we grow” and sharing with customers to go through the temporary hard time of the economy, by
means of product packages with preferential interest rates, preferential service fees and low-interest-rate credit packages
exclusively for small and medium-sized enterprises and home businesses recently, Sacombank reserved the provision
above prudent rate at more than VND2,000 billion; hence its profits before provision for risks amounted to VND1,315
billion and profits before tax were 39% of plan; this figure was much lower than initially expected, but was fairly
satisfactory compared with the general level in the banking sector and some banks of the same scale, given the difficulties
of the economy.
Implementing the policies of the Government, since 2012, Sacombank has conducted comprehensive thorough
restructuring. In terms of corporate governance, Sacombank conducted a restructuring from financial portfolio to business
model.
As for the Bank‟s Development Strategy for the 2011-2020 period, it will persistently pursue the orientation “To be the first
modern universal retail bank in the region”, with the strong focus on efficiency and sustainability. Key points in the
Development Strategy for the new period include labor productivity improvement, effective cost management and
innovation of management methods and business processes, maximization of value and benefits for customer, in parallel
with corporate governance improvement in order to ensure safer and more efficient operation.
In 2013, despite great difficulties, the world economy is forecast by international organizations to grow higher than in
2012. Along with the general objectives set out by the Government and the focal tasks of the Banking Sector in 2013,
Sacombank has set out its orientation for 2013, i.e. SUSTAINABLE GROWTH AND REASONABLE EFFICIENCY.
Accordingly, Sacombank will focus on: (i) prudent credit growth, in line with the orientation of the Banking Sector; (ii) step-
by-step increase in the percentage of non-interest incomes to reach the sustainable income structure; (iii) investments in
focus network expansion and increase in in-depth investments; (iv) innovations for a lean organization structure, with an
expansion of the sales force.
Sacombank‟s achievements today are based on the zeal and trust in the development strategy of the Board of Directors,
the Board of Supervisors, the Board of Management and more than 10,000 employees of Sacombank in different periods;
the strength of a broad transaction network; the financial strength; the modern technology system; the Leadership‟s
professionalism and proficiency shown in corporate governance and control and the dedication to client service by the
well-trained employees of Sacombank. Moreover, Sacombank‟s success results from the care and support from the State
authorities; timely support and communication by the mass media agencies; the trust and good cooperation by investors
and partners; and especially the trust, cooperation and loyalty of almost 2 million customers who are enterprises and
individuals across the country, as well as in Laos and Cambodia. This is also a firm foundation strong motive force for us
to confidently and well fulfill the business plan for 2013. On behalf of the Board of Directors, the Board of Supervisors, the
Board of Management and all the employees across the Sacombank network, I would like to take the honor to recognize
and express my gratitude to you all for your valuable contributions and support for Sacombank in the past.
From the foundation built by Sacombank over the past 21 years, we will continue to preserve, promote and improve the
good values, and adjust, in a timely manner, the operational shortcomings and defects in order to keep up with the
development trends of the domestic and international finance and banking sector and develop Sacombank into a regional-
level retail bank. In order to soon materialize Sacombank‟s objectives, we hope and believe that we will continue to enjoy
your support, cooperation, trust and loyalty in Sacombank‟s journey to development in future.
___________________________________________________________________________________________
__________________________________________________________________________________________
7 History
Table 5: History
Year Event type Description
The bank signed an agreement with Infosys, a leading e-banking software and
2012 Contracts/Agreements technology consulting firms to provide internet banking products and services and
enhance customer satisfaction in the area of e-banking.
The bank signed a cooperative agreement with and Manulife Vietnam to diversify
2012 Contracts/Agreements
products and services, and enhance customer service quality.
The bank along with JCB International Co., Ltd. launched Sacombank JCB Car Card, a
2012 New Products/Services
new credit card in Vietnam.
The bank opened Sacombank Imperial Asset Management Service Center in Ho Chi
2011 Corporate Changes/Expansions
Minh City, Vietnam.
2011 Corporate Changes/Expansions The bank incorporated a subsidiary, Sacombank Cambodia Plc in Cambodia.
The bank‟s subsidiary, Sacombank Leasing Company has signed a credit agreement
2011 Contracts/Agreements with Norfund for provision of medium and long-term capital to small and medium-sized
enterprises (SME) in Vietnam.
The bank‟s subsidiary Sacombank-SBS and DMG & Partners Securities Singapore
formed the strategic partnership to become an investment gateway in the region.
2011 Corporate Changes/Expansions The bank opened Phu Tho and Thai Nguyen branches in Vietnam.
The bank signed a strategic partnership deal with Duc Long Gia Lai Group to provide in
time credits for each business period of Duc Long Gia Lai Group
2010 New Products/Services The bank launched Platinum Visa Card in Vietnam.
The bank was named Vietnam Retail Bank of the Year 2008 by Asian Banking and
2009 Corporate Awards
Finance.
The bank was awarded with Best Domestic Bank in Vietnam 2008 award by The Asset
2009 Corporate Awards
Hong Kong magazine.
2009 Corporate Changes/Expansions The bank opened a Branch in Phnom Penh, Cambodia.
2008 Corporate Changes/Expansions The bank opened a branch in Laos.
The bank launched Bao An - Phat Loc Saving and Bao An Saving - Accumulated
Demand Deposit products.
2008 Corporate Awards The bank was named Vietnam Best Bank 2008 by the Finance Asia.
Sacombank and Citibank signed an agreement with Prudential Vietnam Co to jointly

launch the Prudential Vietnam insurance premium payment service.
2008 New Products/Services The bank launched Flexible Saving Account product.
2007 Corporate Awards Sacombank was named Vietnam Retail Bank 2007 by the Asian Banking & Finance.
___________________________________________________________________________________________
__________________________________________________________________________________________
Table 5: History
Year Event type Description
2006 Stock Listings/IPO The bank's shares were floated on the Ho Chi Minh Stock Exchange.
Sacombank launched its core banking system through cooperation with Temenos
Company (Switzerland).
Sacombank along with Dragon Capital formed a joint venture firm, Viet Fund
Management Company (VFM).
The bank incorporated various subsidiaries including Sacombank Asset Management

Company (Sacombank-SBA), Sacombank Leasing Company (Sacombank-SBL),
Sacombank Remittance Express Company (Sacombank-SBR) and Sacombank
Jewelry Company (Sacombank-SBJ).
1999 Corporate Changes/Expansions The bank opened its headquarters building in Ho Chi Minh City.
1993 Corporate Changes/Expansions Sacombank opened a branch in Hanoi, Vietnam.
Sacombank was incorporated in Ho Chi Minh City through the merger of Go Vap Bank
1991 Incorporation/Establishment
and three credit cooperatives: Tan Binh, Thanh Cong and Lu Gia Cooperatives.
___________________________________________________________________________________________
__________________________________________________________________________________________
8 Key Employees
Table 6: Key Employees
Name Job Title Board Level Since Age
Deputy Chief Executive Officer -

Bui Van Dung Senior Management 2012
Information Technology
Deputy Chief Executive Officer - Ho Chi

Dao Nguyen Vu Senior Management 2007
Minh City Region Operations
Director, Deputy Chief Executive Officer

Doung Hoang Quynh Nhu Executive Board 2012
- Treasury
Director - Hanoi Region, Deputy Chief

Ha Quynh Anh Senior Management 2012
Executive Officer
Deputy Chief Executive Officer - Risk

Ha Ton Trung Hanh Senior Management 2013
Management
Deputy Chief Executive Officer, Chief

Ha Van Trung Senior Management 2012
Financial Officer
Ho Doan Cuong Deputy Chief Executive Officer Senior Management 2012
Kieu Huu Dung Vice Chairperson Executive Board

Le Minh Tam Senior Management 2012
Supporting

Ly Hoai Van Senior Management 2010
Currency
Director - Specialized Regional, Deputy

Nguyen Ba Tri Senior Management 2012
Chief Executive Officer
Nguyen Mien Tuan Director Non Executive Board

Nguyen Minh Tam Corporate Banking, Personal Banking, Senior Management
Card Center, and Overseas Business
Deputy Chief Executive Officer - Human
Nguyen Thi Le An Senior Management 2012
Resource and Training
Pham Huu Phu Chairperson Executive Board 2012
Phan Dinh Tue Deputy Chief Executive Officer - Credit Senior Management 2012
Phan Huy Khang Director, Chief Executive Officer Executive Board 2012

Quach Thanh Ngoc Thuy Senior Management
Operations
Tram Be Vice Chairperson - Standing Executive Board
Tram Khai Hoa Director Non Executive Board
Vo Anh Nhue Deputy Chief Executive Officer Senior Management
___________________________________________________________________________________________
__________________________________________________________________________________________
9 Key Employee Biographies

Table 7: Key Employee Biographies
Phan Huy Khang

Mr. Khang has been the Chief Executive Officer of Sacombank
Job Title : Director, Chief Executive Officer since 2012. He also serves asa Director of the bank since 2012.
He has more than 19 years of experience in finance and banking
Since : 2012 areas.
Ha Van Trung
Mr. Trung has been the Deputy Chief Executive Officer and Chief
Job Title : Deputy Chief Executive Officer, Chief Financial Officer Financial Officer of the Sacombank since 2012. He has been
serving the bank since 2004. He has more than 16 years of
Since : 2012 experience in finance and banking areas.
Ho Doan Cuong
Mr. Cuong has been the Deputy Chief Executive Officer and
Job Title : Deputy Chief Executive Officer Director of Southeastern Region of the Sacombank since 2012.
He joined the bank in 1995. He has more than 18 years of
Since : 2012 experience in finance and banking areas.
Dao Nguyen Vu
Mr. Vu has been the Deputy Chief Executive Officer for Ho Chi
Job Title : Deputy Chief Executive Officer - Ho Chi Minh City
Minh City Region Operations of Sacombank since 2007. He has
Region Operations
been serving the bank since 1993. He has more than 21 years of
experience in credit and risk management areas.
Since : 2007
Ha Ton Trung Hanh

Mr. Hanh has been the Deputy Chief Executive Officer for Risk
Job Title : Deputy Chief Executive Officer - Risk Management Management of Sacombank since February 2013. Prior to this, he
served as the Chief Internal Auditor of the bank from 2012 to
Since : 2013 2013. He has more than 29 years of experience in Auditing area.
___________________________________________________________________________________________
__________________________________________________________________________________________
10 Locations and Subsidiaries

10.1 Head Office

266 - 268 Nam Ky Khoi Nghia
Ho Chi Minh
Vietnam
Tel: + 84 8 39320420
Fax: + 84 8 39320424
10.2 Other Locations and Subsidiaries
Table 8: Subsidiaries
Sacombank Cambodia PLC Sacombank Asset Management Co., Ltd.

60 Norodom Avenue 266-268 Nam Ky Khoi Nghia - P8 - Q3
Sangkat Chey Chumnas Ward City: Ho Chi Minh City
City: Phnom Penh City Vietnam
Cambodia Tel: + 84 8 39326986
Fax: + 84 8 39326923
Saigon Thuong Tin Remittance Express Co., Ltd. Sacombank Leasing Co., Ltd.
34 Hoang Viet Street, Ward 4 230 Nam Ky Khoi means
Tan Binh District Ward 6, District 3
City: Ho Chi Minh City City: Ho Chi Minh City
Vietnam Vietnam
Tel: + 84 8 39918112 Tel: + 84 8 39326889
Fax: + 84 8 39918117 Fax: + 84 8 39326819
Saigon Thuong Tin Jewelry Co., Ltd.

258 Nam Ky Khoi Nghia Street
Ward 8, District 3 Saigon Thuong Tin Cambodia Jewelry Co., Ltd
City: Ho Chi Minh City Cambodia
Vietnam
Tel: + 84 8 39329001
Fax: + 84 8 39329002
___________________________________________________________________________________________
__________________________________________________________________________________________
Table 9: Locations

62 Tran Huy Lieu
Km22 + 500 National Highway 5A
My Hao Hung Yen
Ward 12
Ban Yen Nhan
Ho Chi Minh City
Vietnam
Vietnam
Tel: + 84 321 3942905
Tel: + 84 8 39318816
Fax: + 84 321 3942387
Fax: + 84 8 39318817

72 Le Loi
98 Mai Xuan Thuong
Ly Thuong Kiet
Hung Binh Ward
Quy Nhơn
Vinh City
Vietnam
Vietnam
Tel: + 84 56 3817493
Tel: + 84 38 8600777
Fax: + 84 56 3817312
Fax: + 84 38 8600677

126 Tran Hung Dao
Phu Thanh Quarter, Tan Phu Ward
Binh Thuan
Dong Xoai Town
Phan Thiet City
Vietnam
Vietnam
Tel: + 84 651 3888092
Tel: + 84 62 3834651
Fax: + 84 651 3883569
Fax: + 84 62 3834656

378-379 Russian Boulevard
Sangkat Ka Kap
Phnom Penh
Cambodia
Tel: + 855 23 890 146
Source: Annual Report, Company Website, Primary and Secondary Research
___________________________________________________________________________________________
__________________________________________________________________________________________
11 Appendix
11.1 Methodology
World Market Intelligence company reports are based on a core set of research techniques which ensure the best
possible level of quality and accuracy of data. The key sources used include:
Company Websites
Company Annual Reports
SEC Filings
Press Releases
Proprietary Databases
Notes
Financial information of the company is taken from the most recently published annual reports or SEC filings
The financial and operational data reported for the company is as per the industry defined standards
Revenue converted to US$ at average annual conversion rate as of fiscal year end
11.2 Ratio Definitions
Capital Market Ratios measure investor response to owning a company's stock and also
Capital Market Ratios
the cost of issuing stock.
Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual
income earned per share. It is a financial ratio used for valuation: a higher P/E ratio
means that investors are paying more for each unit of income, so the stock is more
Price/Earnings Ratio (P/E) expensive compared to one with lower P/E ratio. A high P/E suggests that investors are
expecting higher earnings growth in the future compared to companies with a lower P/E.
Price per share is as of previous business close, and EPS is from latest annual report.
Formula: Price per Share / Earnings per Share
Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in parallel

with, or as an alternative to, the P/E ratio. The main advantage of EV/EBITDA over the PE
Enterprise Value/Earnings ratio is that it is unaffected by a company's capital structure. It compares the value of a
before Interest, Tax, business, free of debt, to earnings before interest. Price per share is as of previous
Depreciation & business close, and shares outstanding last reported. Other items are from latest annual
Amortization (EV/EBITDA) report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net
Income + Interest + Tax + Depreciation + Amortization)
Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to
buy the company's sales. EV/Sales is seen as more accurate than Price/Sales because
market capitalization does not take into account the amount of debt a company has, which
Enterprise Value/Sales
needs to be paid back at some point. Price per share is as of previous business close,
and shares outstanding last reported. Other items are from latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales
Enterprise Value/Operating Profit measures the company's enterprise value to the

operating profit. Price per share is as of previous business close, and shares outstanding
Enterprise
last reported. Other items are from latest annual report.
Value/Operating Profit
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating
Income
Enterprise Value/Total
___________________________________________________________________________________________
__________________________________________________________________________________________
Assets Enterprise Value/Total Assets measures the company's enterprise value to the total
assets. Price per share is as of previous business close, and shares outstanding last
reported. Other items are from latest annual report.
Formula: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total
Assets
Dividend Yield shows how much a company pays out in dividends each year relative to its
share price. In the absence of any capital gains, the dividend yield is the return on
Dividend Yield
investment for a stock.
Formula: Annual Dividend per Share / Price per Share
Equity Ratios These ratios are based on per share value.
Earnings per share (EPS) is the portion of a company's profit allocated to each
outstanding share of common stock. EPS serves as an indicator of a company's
Earnings per Share (EPS)
profitability.
Formula: Net Income / Weighted Average Shares
Dividend is the distribution of a portion of a company's earnings, decided by the board of

Dividend per Share
directors, to a class of its shareholders.
Dividend cover is the ratio of company's earnings (net income) over the dividend paid to
Dividend Cover shareholders.
Formula: Earnings per share / Dividend per share
Book Value per Share measure used by owners of common shares in a firm to determine
the level of safety associated with each individual share after all debts are paid
Book Value per Share
accordingly.
Formula: (Shareholders Equity - Preferred Equity) / Outstanding Shares
Cash Value per Share is a measure of a company's cash (cash & equivalents on the
balance sheet) that is determined by dividing cash & equivalents by the total shares
Cash Value per Share
outstanding.
Formula: Cash & equivalents / Outstanding Shares
Profitability Ratios are used to assess a company's ability to generate earnings, based on
revenues generated or resources used. For most of these ratios, having a higher value
relative to a competitor's ratio or the same ratio from a previous period is indicative that
the company is doing well.
Gross margin is the amount of contribution to the business enterprise, after paying for
Gross Margin direct-fixed and direct variable unit costs.
Formula: {(Revenue-Cost of revenue) / Revenue}*100
Operating Margin is a ratio used to measure a company's pricing strategy and operating
Operating Margin efficiency.
Formula: (Operating Income / Revenues) *100
Net Profit Margin is the ratio of net profits to revenues for a company or business segment
Net Profit Margin - that shows how much of each dollar earned by the company is translated into profits.
Formula: (Net Profit / Revenues) *100
Profit Markup measures the company's gross profitability, as compared to the cost of
Profit Markup revenue.
Formula: Gross Income / Cost of Revenue

PBIT Margin (Profit Before
Profit Before Interest & Tax Margin shows the profitability of the company before interest
Interest & Tax)
expense & taxation.
___________________________________________________________________________________________
__________________________________________________________________________________________
Formula: {(Net Profit + Interest + Tax) / Revenue} *100
PBT Margin (Profit Before Profit Before Tax Margin measures the pre-tax income over revenues.
Tax)
Formula: {Income Before Tax / Revenues} *100
Return on Equity measures the rate of return on the ownership interest (shareholders'
Return on Equity equity) of the common stock owners.
Formula: (Net Income / Shareholders Equity)*100
Return on Capital Employed is a ratio that indicates the efficiency and profitability of a
company's capital investments. ROCE should always be higher than the rate at which the
Return on Capital
company borrows; otherwise any increase in borrowing will reduce shareholders'
Employed
earnings.
Formula: EBIT / (Total Assets – Current Liabilities)*100
Return on Assets is an indicator of how profitable a company is relative to its total assets,
Return on Assets the ratio measures how efficient management is at using its assets to generate earnings.
Formula: (Net Income / Total Assets)*100
Return on Fixed Assets measures the company's profitability to its fixed assets (property,
Return on Fixed Assets plant & equipment).
Formula: (Net Income / Fixed Assets) *100
Return on Working Capital measures the company's profitability to its working capital.
Return on Working Capital
Formula: (Net Income / Working Capital) *100
Cost ratios help to understand the costs the company is incurring as a percentage of
Cost Ratios
sales.
Operating costs as percentage of total revenues measures the operating costs that a
Operating costs (% of
company incurs compared to the revenues.
Sales)
Formula: (Operating Expenses / Revenues) *100
Administration costs as percentage of total revenue measures the selling, general and
Administration costs (% of
administrative expenses that a company incurs compared to the revenues.
Sales)
Formula: (Administrative Expenses / Revenues) *100
Interest costs as percentage of total revenues measures the interest expense that a
Interest costs (% of Sales) company incurs compared to the revenues.
Formula: (Interest Expenses / Revenues) *100
Leverage ratios are used to calculate the financial leverage of a company to get an idea of
the company's methods of financing or to measure its ability to meet financial obligations.
Leverage Ratios
There are several different ratios, but the main factors looked at include debt, equity,
assets and interest expenses.
Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratio
also depends on the industry in which the company operates. For example, capital-
Debt to Equity Ratio
intensive industries tend to have a higher debt equity ratio.
Formula: Total Liabilities / Shareholders Equity
Debt to capital ratio gives an idea of a company's financial structure, or how it is financing
its operations, along with some insight into its financial strength. The higher the debt-to-
capital ratio, the more debt the company has compared to its equity. This indicates to
Debt to Capital Ratio
investors whether a company is more prone to using debt financing or equity financing. A
company with high debt-to-capital ratios, compared to a general or industry average, may
show weak financial strength because the cost of these debts may weigh on the company
and increase its default risk.
___________________________________________________________________________________________
__________________________________________________________________________________________
Formula: {Total Debt / (Total assets - Current Liabilities)}
Interest Coverage Ratio is used to determine how easily a company can pay interest on
Interest Coverage Ratio outstanding debt, calculated as earnings before interest & tax by interest expense.
Formula: EBIT / Interest Expense
Liquidity ratios are used to determine a company's ability to pay off its short-terms debts
obligations. Generally, the higher the value of the ratio, the larger the margin of safety that
the company possesses to cover short-term debts. A company's ability to turn short-term
Liquidity Ratios
assets into cash to cover debts is of the utmost importance when creditors are seeking
payment. Bankruptcy analysts and mortgage originators frequently use the liquidity ratios
to determine whether a company will be able to continue as a going concern.
Current Ratio measures a company's ability to pay its short-term obligations. The ratio
gives an idea of the company's ability to pay back its short-term liabilities (debt and
payables) with its short-term assets (cash, inventory, receivables). The higher the current
Current Ratio
ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests
that the company would be unable to pay off its obligations if they came due at that point.
Formula: Current Assets / Current Liabilities
Quick ratio measures a company's ability to meet its short-term obligations with its most
Quick Ratio liquid assets.
Formula: (Current Assets - Inventories) / Current Liabilities
Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It
only looks at the most liquid short-term assets of the company, which are those that can
be most easily used to pay off current obligations. It also ignores inventory and
Cash Ratio
receivables, as there are no assurances that these two accounts can be converted to
cash in a timely matter to meet current liabilities.
Formula: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
Efficiency ratios measure a company's effectiveness in various areas of its operations,

Efficiency Ratios
essentially looking at maximizing its use of resources.
Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to
generate sales. A higher ratio indicates the business has less money tied up in fixed
Fixed Asset Turnover assets for each currency unit of sales revenue. A declining ratio may indicate that the
business is over-invested in plant, equipment, or other fixed assets.
Formula: Net Sales / Fixed Assets
Asset turnover ratio measures the efficiency of a company's use of its assets in
generating sales revenue to the company. A higher asset turnover ratio shows that the
Asset Turnover
company has been more effective in using its assets to generate revenues.
Formula: Net Sales / Total Assets
Current Asset Turnover indicates how efficiently the business uses its current assets to
Current Asset Turnover generate sales.
Formula: Net Sales / Current Assets
Inventory Turnover ratio shows how many times a company's inventory is sold and
replaced over a period. A low turnover implies poor sales and, therefore, excess
Inventory Turnover
inventory. A high ratio implies either strong sales or ineffective buying.
Formula: Cost of Goods Sold / Inventory
Working Capital Turnover is a measurement to compare the depletion of working capital

to the generation of sales. This provides some useful information as to how effectively a
Working Capital Turnover
company is using its working capital to generate sales.
Formula: Net Sales / Working Capital

Capital Employed
___________________________________________________________________________________________
__________________________________________________________________________________________
Turnover Capital employed turnover ratio measures the efficiency of a company's use of its equity
in generating sales revenue to the company.
Formula: Net Sales / Shareholders Equity
Capex to Sales ratio measures the company's expenditure (investments) on fixed and
Capex to sales related assets' effectiveness when compared to the sales generated.
Formula: (Capital Expenditure / Sales) *100
Net income per Employee looks at a company's net income in relation to the number of
employees they have. Ideally, a company wants a higher profit per employee possible, as
Net income per Employee
it denotes higher productivity.
Formula: Net Income / No. of Employees
Revenue per Employee measures the average revenue generated per employee of a
company. This ratio is most useful when compared against other companies in the same
Revenue per Employee
industry. Generally, a company seeks the highest revenue per employee.
Formula: Revenue / No. of Employees
Efficiency Ratio is used to calculate a bank's efficiency. An increase means the company
is losing a larger percentage of its income to expenses. If the efficiency ratio is getting
Efficiency Ratio
lower, it is good for the bank and its shareholders.
Formula: Non-interest expense / Total Interest Income

Source : World Market Intelligence
11.3 Disclaimer
All Rights Reserved
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means,
electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, World Market
Intelligence.
The data and analysis within this report is driven by World Market Intelligence from its own primary and secondary
research of public and proprietary sources and does not necessarily represent the views of the company profiled.
The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the
findings, conclusions and recommendations that World Market Intelligence delivers will be based on information gathered
in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As
such World Market Intelligence can accept no liability whatever for actions taken based on any information that may
subsequently prove to be incorrect.
___________________________________________________________________________________________
Reproduced with permission of the copyright owner. Further reproduction prohibited without
permission.

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Saigon Thuong Tin Commercial Joint Stock Bank

Total Income (in US$ million) 900

Capital adequacy Declining cash position

Increase in total deposits Weak financial performance

Increasing loan loss provision

Strong distribution network

Growing economy in Vietna Changing regulations

Positive outlook for the Vietnamese life

Strategic agreements Increase in compliance costs

Saigon Thuong Tin Commercial Joint Stock Bank - Page 1

1 Business Analysis ................................................................................................................................... 5

Saigon Thuong Tin Commercial Joint Stock Bank - Page 2

Table 1: Major Products and Services ............................................................................................................................. 7

Figure 1: Valuation ........................................................................................................................................................ 11

1.1 Company Overview

1.2 Business Description

1.3 Major Products and Services

Table 1: Major Products and Services

Demand saving deposits

Securities - linked product

Small and medium sized enterprises loans

Automobile distribution wholesalers loans

Loan deposit for sales

Foreign exchange services

Commodity derivative products

Repurchase debt security

Table 1: Major Products and Services

Term life insurance

Family income protection insurance

Whole life insurance

Safety deposit box

Wealth management services

Financial planning services

Internet banking services

Phone banking services

Bill payment services

Travelers cheques exchange services

Telegraphic transfer services

Letter of credit issuance and advisory services

Investment portfolio services

2 Analysis of Key Performance Indicators

Table 2: Key Ratios - Annual

Key Ratios Unit/Currency 2012 2011 2010 2009 2008

Table 3: Key Ratios - Interim

Key Ratios Unit/Currency Mar-2013 Dec-2012 Sep-2012 Jun-2012

Table 4: Key Capital Market Indicators

Key Ratios 23-Jul-2013

2.2 Key Financial Performance Indicators

Source: World Market Intelligence

2.3 Key Competitors

ANZ Bank (Vietnam) Limited

Asia Commercial Joint Stock Bank (Ticker: ACB)

HSBC Bank (Vietnam) Ltd.

Indovina Bank Limited

Saigon - Hanoi Commercial Joint Stock Bank (Ticker: SHB)

Technological and Commercial Joint Stock Bank Vietnam

Vietnam Export Import Commercial Joint Stock Bank (Ticker: EIB)

3 Mergers & Acquisitions and Partnerships

Deal Status Completed Announced Date 10/22/2012 12:00:00 AM

Participant Company Information

Company Name Manulife (Vietnam) Limited Involvement Type Target

Deal Status Completed Announced Date 2/6/2012 12:00:00 AM

expanded its presence through more than 80 offices in Vietnam.

Participant Company Information