BIDV Annual Report 2023: Key Performance Indicators and Strategic Objectives - Prof. Nguye, Summaries of Compiler Construction

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LIST OF ABBREVIATION

ABBREVIATION MEANING

AGM Annual General Meeting of Shareholders

BIDV Bank for Investment and Development of Vietnam JSC

BOD Board of Directors

BOM Board of Management

CA Current account

CAR Capital adequacy ratio

CEO Chief Executive Officer

CI Credit institution

CIR Cost to income ratio

ESG Environmental, social and governance

FDI Foreign direct investment

GMS General Meeting of Shareholders

HO Head office

HOSE Ho Chi Minh City Stock Exchange

ICAAP Internal Capital Adequacy Assessment Process

ABBREVIATION MEANING

IPO Initial Public Offering

IR Investor Relations

IT Information technology

JSC Joint Stock Commercial

NPL Non-performing loan

PAT Profit after tax

PBT Profit before tax

ROA Return on assets

ROE Return on equity

SBV State Bank of Vietnam

SME Small and medium-sized enterprises

SSC State Securities Commission

USD United States Dollar

VND Vietnam Dong

WSME Women-owned SME

REPORT 2023

MESSAGE 2023

Chairman’s message 10

Awards and recognition in 2023 12

TOP 50 BEST LISTED COMPANIES IN VIETNAM

Forbes Vietnam (^) • VIETNAM DOMESTIC FDI BANK OF THE YEAR

- VIETNAM DOMESTIC DERIVATIVES INITIATIVE OF THE YEAR FOR 2 STRAIGHT YEARS

Asian Banking and Finance

• TOP 10 MOST VALUABLE BRANDS IN VIETNAM

• FASTEST GROWING BRAND IN VIETNAM 2023

Brand Finance

• BEST TRADE FINANCE BANK IN VIETNAM

• BEST SUPPLY CHAIN FINANCE BANK IN VIETNAM

International Finance Magazine

BEST SME BANK IN VIETNAM FOR 6 YEARS IN A ROW

Alpha Southeast Asia

• BEST CORPORATE BANK SOUTHEAST ASIA FOR 2

STRAIGHT YEARS

• BEST SME BANK SOUTHEAST ASIA FOR 3RD^ TIME

• BEST ESG BOND VIETNAM 2023

Global Banking and Finance Review

ASOCIO DIGITAL TRANSFORMATION AWARD 2023

Asia-Oceanian Computing Industry Organization (ASOCIO)

VIETNAM’S BEST BANK FOR DIGITAL SOLUTIONS

Asiamoney

• BEST CUSTODIAN BANK IN VIETNAM FOR 3 YEARS IN A ROW

• BEST RETAIL BANK IN VIETNAM FOR THE 8TH^ TIME

• BEST PRIVATE BANKING SERVICE IN VIETNAM

• BEST INTERNATIONAL CREDIT CARD IN VIETNAM

• BEST HOME LOAN FINANCING IN VIETNAM

• BEST FX BANK IN VIETNAM FOR THE 3RD^ TIME

The Asian Banker

Forbes

TOP 2000 LARGEST PUBLIC COMPANIES

AWARDS AND RECOGNITION IN 2023

INTERNATIONAL AWARDS

Message 2023

REPORT 2023 AWARDS AND RECOGNITION IN 2023

• LEADERSHIP IN COMMERCIAL BUSINESS

• LEADERSHIP IN DEBIT VOLUME

Mastercard

• TOP 10 EXCELLENT BRANDS IN VIETNAM

• BIDV JCB ULTIMATE – TOP 50 TRUSTED PRODUCTS

AND SERVICES 2023

LEADING PARTNER BANK IN VIETNAM 2023

ADB

STP AWARD FOR OUTSTANDING

PAYMENT PERFORMANCE

Bank of New York Mellon

CLEARING QUALITY RECOGNITION AWARD FOR

OUTSTANDING STP RATE

JPMorgan Chase

Vietnam Software and IT Services Association (VINASA)

Sao Khue awards for the following products:

_- VIRTUAL ACCOUNT SYSTEM

• BIDV ICONNECT
• 24/7 MULTI-CHANNEL INTERNATIONAL MONEY TRANSFER SYSTEM
• AUTOMATED ONLINE DEPOSIT MORTGAGE ON SMARTBANKING
• QR WITHDRAWAL ON BIDV ATM FOR KOREAN CUSTOMERS
• BIDV NOTIFICATION HUB
• BIDV SMART LOYALTY
• APPLICATION OF CHIP-BASED ID IN DIGITAL TRANSACTIONS AT BIDV_

VnEconomy

• OUTSTANDING CUSTODIAN BANK 2023

• OUTSTANDING UNDERLYING SECURITIES PAYMENT BANK

Vietnam Securities Depository and Clearing Corporation

• OUTSTANDING PREMIUM BANKING SERVICE

• INNOVATIVE FINANCIAL SOLUTION FOR BIDV SMART KIDS

Vietnam Wealth Advisor Summit (VWAS)

OUTSTANDING PERFORMANCE IN THE PROGRAM "ONE

MILLION INITIATIVES – OVERCOMING DIFFICULTIES,

BEING CREATIVE TO FIGHT THE COVID-19 PANDEMIC"

Vietnam General Confederation of Labor

VISA

BEST IN-HOUSE CONTACT CENTRE OF THE YEAR

Contact Centre Association of Singapore (CCAS)

OUTSTANDING PERFORMANCE BANK 2023

TOP 10 SUSTAINABLE ENTERPRISES

– TRADE AND SERVICES

Vietnam Chamber of Commerce and Industry (VCCI)

TOP 10 BEST ANNUAL REPORT

- FINANCE AND BANKING

Ho Chi Minh City Stock Exchange

TOP 10 MOST PRESTIGIOUS BANKS IN VIETNAM

Viet Nam Report

National Payment Corporation of Vietnam (NAPAS)

• OUTSTANDING GROWTH IN PREMIUM PAYMENT VOLUME

• LEADERSHIP IN ACCEPTANCE NETWORK COVERAGE

LEADING LICENSEE IN MERCHANT SALES VOLUME

JCB

INTERNATIONAL AWARDS

DOMESTIC AWARDS

AWARDS AND RECOGNITION IN 2023

AWARDS AND RECOGNITION IN 2023

Message 2023 REPORT 2023

BIDV AT A GLANCE

ABBREVIATION

BIDV

SWIFT CODE

BIDVVNVX

TEL

FAX

BUSINESS REGISTRATION

NUMBER

WEBSITE

https://www.bidv.com.vn

ESTABLISHMENT AND OPERATING LICENSE

No. 84/GP-NHNN dated 23 April 2012 by the State Bank of Vietnam

HEAD OFFICE

BIDV Tower, 194 Tran Quang Khai street, Ly Thai To ward, Hoan Kiem district, Ha Noi, Viet Nam

BUSINESS REGISTRATION CERTIFICATE

First issued on 03 April 1993 by Ha Noi Authority for Planning and Investment. 28th amendment made on 3 January 2024

CHARTER CAPITAL

VND57,004,359,000,

LONG-TERM DEPOSIT RATING

Ba

OUTLOOK

Stable

CHAIRMAN OF THE BOARD OF

DIRECTORS

Mr. Phan Duc Tu

CREDIT RATING FIRM

Moody's

AUDITING FIRM

Deloitte Vietnam Co., Ltd

STOCK TICKER

BID

PAR VALUE

VND10,000/stock

TOTAL NUMBER OF SHARES 5,700,435,

LONG-TERM ISSUER RATING

Ba

CHIEF EXECUTIVE OFFICER

Mr. Le Ngoc Lam

FULL NAME

JOINT STOCK COMMERCIAL BANK FOR INVESTMENT

AND DEVELOPMENT OF VIETNAM

INTERNATIONAL TRADING NAME

JOINT STOCK COMMERCIAL BANK FOR INVESTMENT

AND DEVELOPMENT OF VIETNAM

KEY DEVELOPMENT MILESTONES

BIDV Overview

REPORT 2023 KEY DEVELOPMENT MILESTONES

BUSINESS LINES AND LOCATIONS

MAIN BUSINESS LINES

BUSINESS LOCATIONS

10 02

01 04

03

189

01

895 02 03

BIDV’s wide domestic operating network covering all provinces and cities helps BIDV to access a large number of customers nationwide and vicinities; to provide diverse services to various customer segments from individuals, households to different types of organizations and businesses.

Total number of network points as of 31 December 2023 was as follows:

BIDV's main activities are to perform commercial banking transactions in accordance with the law and regulations of the State Bank of

Vietnam, including:

BRANCHES

HEAD OFFICE

Ho Chi Minh City and Da Nang City

BIDV Training and Research Institute • Information Technology Center • Southern Cash and Vaults Center •

194 Tran Quang Khai Street, Ly Thai To Ward, Hoan Kiem District, Hanoi, Vietnam

Cambodia, Lao PDR, Taiwan (China), Russian Federation

• 34 branches in Ha Noi
• 36 branches in Ho Chi Minh City
• 24 branches in key northern provinces outside Ha Noi and Red River Delta region
• 17 branches in northern mountainous provinces

INTERNATIONAL NETWORK

DOMESTIC NETWORK

DOMESTIC REPRESENTATIVE OFFICES

AFFILIATES

BRANCH IN MYANMAR OVERSEAS REPRESENTATIVE OFFICES

JOINT VENTURES

TRANSACTION

OFFICES

SUBSIDIARIES

DIRECT NON-BUSINESS UNITS

14 branches in northern central region • 15 branches in southern central region • 12 branches in the central highlands • 15 branches in key southern provinces outside Ho Chi Minh City • 22 branches in Mekong Delta region •

in all 63 provinces and cities nationwide

Making payments between domestic and international organizations and individuals via accounts, bank cards and other payment instruments

Foreign currencies, international trade financing services and other banking services licensed by the State Bank of Vietnam

Lending, discounting, guarantee to individuals and organizations on the basis of ensuring security for both customers and the bank.

Taking deposits; trading, issuing bonds, debentures

BIDV Overview

REPORT 2023 BUSINESS LINES AND LOCATIONS

MAIN AND PROMINENT PRODUCTS

WHOLESALE BANKING GROUP

Supply Chain Financing

With the goal of making BIDV to become the number one bank in supply chain finance, with the goal of achieving a supply chain finance scale of USD1.6 billion by 2026, in the past time, BIDV has allocated many resources to invest in product development, application of information technology, and sales. With the ability to provide "tailor- made" solutions for many large enterprises, BIDV has collaborated to build supply chain finance programs for leading corporations in economic sectors such as real estate, fast-moving consumer goods (FMCG), automobile distribution, electrical equipment. 2023 also recorded BIDV's successes in conquering central businesses, multinational corporations as well as large domestic conglomerates through solutions regarding products, digital technology applications, and promotion policies with many preferential resources for supply chain customers.

With synchronized solutions, in 2023, the balance of supply chain financing credits increased nearly threefold compared to 2022. In which, the number of SMEs in Vietnam accessing supply chain financing from BIDV increased by 195%, and the disbursement speed through this solution also increased by 123% over the past year.

Digital Banking for corporate customers

With the goal of becoming the best digital platform bank in Vietnam, BIDV has continuously strived to build a comprehensive digital banking ecosystem for corporate customers through 2 platforms: Omni BIDV iBank and BIDV iConnect.

In 2023, BIDV continuously expanded and improved its digital banking system, especially the BIDV iBank application, to provide seamless experiences and optimize financial solutions for customers with features including international money transfer, foreign currency exchange, and online term deposit products.BIDV iBank and BIDV iConnect have become the main pillars in the bank's digital ecosystem, contributing significantly to creating sustainable value for customers.

At the same time, to meet the Government's strategic goal of digitizing and optimizing administrative procedures to provide convenience to citizens, BIDV actively deployed online fee collection services for government agencies on the National Public Service Portal. Outstandingly in 2023, the fee payment service for university entrance exam fees was vigorously promoted with nearly 63,500 transactions conducted in 3 months of deployment, reaching a total value of VND6.88 billion. In 2023, the number of public service transactions deployed via BIDV reached nearly 800,000 transactions, a growth of 445% compared to

The development of the digital ecosystem also became one of the areas of interest for BIDV. On November 29, 2023, BIDV pioneered the launch of the BIDV Open API system to the market - an open ecosystem to integrate banking services into customers' applications, software, and digital platforms. With BIDV Open API, banking services will be most easily integrated into applications, software, and digital platforms in the market, creating new financial solutions, enhancing the experience for individual and corporate customers in shopping, payment, business, and financial management in the digital space. Developing products focusing on enhancing customer experience, BIDV's digital products have been positively received by the business community.

Trade Finance

In addition to service incentives, BIDV has always given priority to extending credit to import-export businesses through preferential credit packages with flexible credit conditions. BIDV has also launched diverse trade finance products with flexible collateral conditions such as unsecured loans, mortgage of receivables from export contracts, imported shipments, etc. to timely meet the demand of businesses. In particular, international payment and trade finance products and services have been digitized, allowing business customers to send transaction documents, receive and track processing results via BIDV iBank.

BIDV's portfolio of trade finance products is comprehensive, diverse in accordance with international standards and practices such as letter of credit (L/C), collection, negotiation of bill of exchange, forfaiting... The bank has great advantages in its wide network of correspondent banks/international payment markets to deploy and provide the trade finance service to customers.

Industry credit

BIDV designs, improves credit product packages by industry as well as comprehensive solutions, packaging of service products (all-in-one) to best meet the needs of customers in each industry, economic sector. BIDV prioritizes credit promotion for potential industries crucial to the economy such as industrial park real estate, renewable energy, import-export sectors, pharmaceuticals, construction.BIDV is also a pioneering bank in implementing credit solutions to contribute to the implementation and guidance of the Party and the Government in the recovery and development of the economy, through the implementation of the VND120 trillion credit program for social housing, worker housing loans, renovation, reconstruction of old apartment buildings under Resolution 33/ NQ-CP, Credit package for commercial real estate sector suitable for actual housing needs in the market or credit program for the forestry, fisheries sectors and so on.

Green credit

BIDV is the first joint-stock commercial bank in Vietnam to announce the "Sustainable Financing Framework" and is currently the market leader in financing green projects with thousands of customers and projects. Always in the Top 5 banks with the largest green credit balances in the system, as of 31 December, 2023, BIDV's green credit balance reached VND74,177 billion (accounting for 4.24% of the total balance), mainly focusing on the renewable energy sector, clean energy with a balance of VND60,092 billion (accounting for 81% of the total green credit balance). More than just a bank, BIDV pioneered the development of sustainable financial products by successfully implementing the Green Textile product alongside a VND4,200 billion Green credit package to provide significant support for textile enterprises to transform their business operations towards sustainable development.

63,

120,

BIDV OPEN AI

PAYMENT SERVICE FOR UNIVERSITY

ENTRANCE EXAM

CREDIT PROGRAM FOR SOCIAL HOUSING

PIONEERING TO LAUNCH

an open ecosystem to integrate banking

services into customers' applications,

software, and digital platforms

TRANSACTIONS

VND

BILLION

3

THE BALANCE OF SUPPLY CHAIN

FINANCING INCREASED

NEARLY TIMES

4,

GREEN TEXTILE PACKAGE

VND

BILLION

Identifying Digital Transformation and Green Transformation as inevitable global and Vietnamese

trends, aiming towards sustainable development. In 2023, BIDV Wholesale Banking continued

to lead in deploying digital banking services, Green financial products to help businesses

enhance operational efficiency, seamless experiences, and step-by-step green transformation

in operations.

BIDV Overview

REPORT 2023 MAIN AND PROMINENT PRODUCTS

TOTAL ASSETS

2,300,

BIDV continued to affirm its position as

the largest bank among joint stock

commercial banks in Vietnam with total

assets reaching VND2,300,869 billion ,

an increase of 8.5% compared to 2022.

VND

BILLION

TOTAL OPERATING

INCOME 73,

Total operating income in 2023 reached

VND73,013 billion , increasing by 5.1%

compared to 2022.

VND

BILLION

OWNERS’ EQUITY 122,

Owners’ equity as of 31 December 2023

reached VND122,867 billion , an

increase of 18% compared to 2022.

VND

BILLION

CUSTOMER DEPOSITS 1,704,

Customer deposits as of 31 December 2023

reached VND1,704,690 billion , an increase

of 15.7% compared to 2022.

VND

BILLION

47,

Net operating income in 2023 reached

VND47,932 billion , an increase of 2.5%

compared to 2022.

VND

NET OPERATING INCOME BILLION

LOANS TO CUSTOMERS 1,777,

Loans to customers as of 31 December

2023 reached VND1,777,665 billion ,

growing by 16.8% compared to 2022.

VND

BILLION

KEY PERFORMANCE INDICATORS

BIDV Overview

REPORT 2023 KEY PERFORMANCE INDICATORS

ROE

ROA

PROFIT BEFORE TAX 27,

Profit before tax in 2023 reached VND27,

billion , an increase of 20.4% compared to

VND

BILLION

KEY PERFORMANCE INDICATORS (continued)

BIDV Overview

REPORT 2023 CHỈ SỐ HOẠT ĐỘNG CƠ BẢN

BOARD OF DIRECTORS

The Board of Directors (BOD) is a governance authority, has the full right to act in the name of

BIDV to make decisions, exercise rights and obligations of BIDV which are out of jurisdiction of the

General Meeting of Shareholders. The BOD also has responsibility for defining and developing plans

and policies such as business governance policies, business strategies and overall development

plans of BIDV.

The BOD of BIDV consists of the following members:

DETAILED INFORMATION ABOUT THE BOD MEMBERS

FULL NAME POSITION NUMBER OF SHARES

OWNED

OWNERSHIP RATIO (%)

Mr. PHAN DUC TU Chairman 61,670 0.

Mr. LE NGOC LAM Member, CEO 1,024 0.

Mr. DANG VAN TUYEN Member 0 0

Mrs. PHAN THI CHINH Member 41,365 0.

Mr. NGO VAN DUNG Member 1,105 0.

Mr. PHAM QUANG TUNG Member 1 0.00…

Mr. TRAN XUAN HOANG Member 113 0.00…

Mr. LE KIM HOA Member 60,920 0.

Mr. QUACH HUNG HIEP Member 106 0.00…

Mr. YOO JE BONG Member 0 0

Mr. NGUYEN VAN THANH Independent member 0 0

Born in 1975. • Master of Economics. • Joined BIDV in 1997. • Elected as BOD member of BIDV on 12 March 2021. • Previous posts: BIDV Senior Executive Vice President in charge • of BOM, Senior Executive Vice President, Head of Credit Risk Management, Head of Corporate Banking.

Born in 1973. • Bachelor of law, bachelor of finance - banking • Elected as BOD member of BIDV on 28 April 2023 • Previous posts: Director General of Personnel Organization Department, • State Bank of Vietnam, Deputy Director General of Personnel Organization Department, State Bank of Vietnam.

Born in 1964. • Bachelor of Economics. • Joined BIDV in 1987. • Elected as Chairman of the BOD of BIDV on 15 November 2018. • Previous posts: BIDV’s BOD member and CEO, Senior Executive Vice • President, Head of Human Resources, Head of BIDV Quang Ngai Branch.

Mr. Dang Van Tuyen has been elected as a member of the BOD of BIDV for the 2022-2027 term since 28 April 2023 and represented • 30% of State capital at BIDV. Mr. Quach Hung Hiep has been elected as a member of the BOD of BIDV for the 2022-2027 term since 30 January 2024. •

Changes to the Board of Directors:

Mr. Le Ngoc Lam – Member, Chief Executive Officer

Mr. Phan Duc Tu - Chairman

Mr. Dang Van Tuyen - Member

BIDV Overview

REPORT 2023 BOARD OF DIRECTORS

DETAILED INFORMATION ABOUT THE BOD MEMBERS

• Born in 1965.
• Master of Business Administration.
• Elected as BOD member of BIDV on 7 March 2020
• Concurrent post: Chairman of Bank for Investment and Development of Cambodia Plc. (BIDC).
• Previous posts: BIDV Senior Executive Vice President, Head of BIDV Ho Chi Minh City Branch; Head of Credit Risk Management Department.
• Born in 1968.
• Master of Finance and Banking.
• Joined BIDV in 1998.
• Elected as BOD member of BIDV on 1 June 2015.
• Concurrent post: Chairman of the BOD of BIDV Securities Company (BSC); Chairman of BIDV Asset Management Company (BAMC).
• Previous posts: Head of Risk Management Department; Head of BIDV Hanoi Branch.

Born in 1969. • Ph.D. in Economics. • Joined BIDV in 1991. • Elected as BOD member of BIDV on 30 January 2024. • Previous posts: Senior Executive Vice President of BIDV, Head of • BIDV So Giao Dich III Branch, Chairman of Lao- Viet Joint Venture Bank; Deputy CEO of Lao- Viet Joint Venture Bank; Head of BIDV Treasury Department.

Born in 1971. • Economic Engineer, Bachelor of Law. • Elected as BOD member of BIDV on 21 April 2018. • Previous posts: Deputy Chairman of BIDV-SuMi TRUST Leasing • Co., Ltd (BSL), Chairman of Vietnam Development Bank (VDB), BIDV Senior Executive Vice President, Chairman and CEO of BIDV Insurance Corporation.

• Born in 1965.
• Bachelor of Economics.
• Elected as BOD member of BIDV on 7 March 2020
• Concurrent post: Chairman of BIDV Insurance Corporation (BIC); Chairman of Mekong Housing Building and Realty Corporation (MHBR),
• Previous posts: BIDV Senior Executive Vice President, Head of Human Resources Department.
• Born in 1968.
• Master of Business Administration.
• Joined BIDV in 1991.
• Elected as BOD member of BIDV on 25 April 2014.
• Concurrent post: BOD member at National Payment Corporation of Vietnam (Napas), and Chairwoman of BIDV Tower Joint Venture Company.
• Previous posts: BIDV Senior Executive Vice President, Head of Finance Department.

(continued)

Mr. Pham Quang Tung - Member

Mrs. Phan Thi Chinh - Member

Mr. Quach Hung Hiep - Member

Mr. Tran Xuan Hoang - Member

Mr. Ngo Van Dung - Member Mr. Le Kim Hoa - Member

BIDV Overview

REPORT 2023 BOARD OF DIRECTORS