MaritimeBank Eng

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Message froM the ChairMan of the Board of direCtorsMessage froM the Chief exeCutive offiCerestaBlishMent and developMent history- EstablishmEnt day- businEss fiElds- dEvElopmEnt procEss- dEvElopmEnt oriEntation

reports of Board of direCtors and exeCutive CoMMittee- summary on businEss pErformancE in 2012 ovErviEw on financials dEposit mobilization crEdit othEr businEssEs product dEvElopmEnt nEtwork and distribution channEl dEvElopmEnt sErvicE quality tEchnology invEstmEnt opErations risk govErnancE pr and brand dEvElopmEnt social activitiEs- businEss plan in 2013 and thE pEriod of 2013 - 2015

huMan resourCe organizational struCture and ManageMent- organizational chart- mEmbErs of committEEs, boards board of dirEctors (bod) board of supErvisors (bos) EXEcutivE committEE- information on major sharEholdErs- human rEsourcE managEmEnt stratEgy

awardsoutstanding eventsfinanCial stateMent and interpretationsBusiness networK

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2012Content

With this Strategic orientation, Maritime Bank is heading towards the goal of being one of the leading commercial joint stock banks in Vietnam. However, instead of developing itself to a bank with the largest total assets, Maritime Bank chooses to be The most efficient bank. Instead of competing on price, the Bank focuses to create the differentiation. Following this orientation, Maritime Bank will focus on Retail and Small and Medium (SME) customer segments.

Despite many tasks to be completed, which require even greater efforts from every Maritime Bank staff, I believe that Maritime Bank, with its sound strategies, will overcome all the challenges to continue its success, and to brilliantly reach the targets set-forth for 2013.

On behalf of BOD, I would like to extend my thanks and best wishes to Maritime Banks Shareholders, Customers, Partners and Staff, who have been contributing consistently to its development, and creating a solid foundation for its growth in the coming years.

Best regards!

chairman of board of dirEctors

tran anh tuan

coming to 2012, banking sector was still being impacted by the consequence of global economic crisis, which resulted in the slow growth, decrease of profits and high non-performing loan (npl) ratio. in that context, maritime bank board of directors (bod) defined 2012 as a year to focus on its targets of assuring prudential ratios, strengthening management capability, deploying business models as per its strategic orientations and continuing to improve its organizational structure to create a differentiation in quality, instead of only concentrating on the increase of total assets and credit growth as in previous years.

to reach all the mentioned targets, maritime bank bod gave its instructions on a comprehensive implementation of measures, making eligible and timely decisions that were in accordance with the policies of the state bank of vietnam (sbv) and the actual situation of the market.

consistently following the set-forth targets, with great efforts of its Executive committee (EXco) and staff, maritime bank achieved satisfactory results in 2012. specifically, our total assets were vnd 109,923 billion and total operating income was vnd 2,619 billion (9% increased as against

2011). our profit before credit and other provisions was vnd 1,005 billion. furthermore, 15 additional transaction points were newly opened, taking the total number of transaction points to 216. our liquidity and prudential ratio were ensured as per regulations of sbv. we also had a successful regular inspection with positive assessment from sbv. our remuneration and compensation policy was always well maintained, assuring satisfactory rights and benefits for employees in a context that many domestic enterprises had to narrow their business scale, cutting down on personnel. therefore, maritime banks reputation and brand name were increasingly affirmed in the banking sector.

additionally, with its high credit ratings, maritime bank was honorably acknowledged as a 1st group bank, and was awarded with many awards by governmental authorities, mass media and business community.

in 2013, it is forecasted that the economy will still be in a difficult and unstable situation. based on the analysis of business achievements and forecasts on macroeconomic situations, bod has proactively developed a strategic orientation for the period of 2013-2015, which is considered a direction for future operations of maritime bank.

Message froM the ChairMan of the Board of direCtors

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investments in technology and processes to enhance

product delivery and operational efficiency. Our talent

management division delivered over 6,700 training

man-hours to our employees. We created a Risk

Academy to provide Risk specific training programs.

Our priorities over the next few years are as follows:

Firstly, we want to increase our proportion of low

cost deposits with the right products and coverage

model. Secondly, we want to become more efficient

in terms of the way we manage our businesses.

Thirdly, we want to increase the component of fees

in our revenues mix. Fourthly, we want to reduce

the NPL ratios in our portfolio. And fifth, we want

to ensure that the quality of the new credits we

disburse is very good. Our goal over the next few

years is to make Maritime Bank one of the leading

commercial joint-stock banks in Vietnam, a bank

focused on delivering value to all its stakeholders i.e.

customers, shareholders, employees, regulators and

the community.

chiEf EXEcutivE officEr

atul MaliK

2012 was a tough year for the world economy.

Europe had to grapple with the sovereign default

risks posed by the weaker Eurozone economies.

the us postponed some of the tougher political

decisions needed to deal with its fiscal cliff. china

saw a slowdown in its growth rate to 7.5%. global

growth rates have come down and unemployment,

especially among the young, remains very high

across different parts of the world. from a

regulatory perspective interest rates continue

to be low as central banks try their best to get

growth going again. vietnam was not unaffected

by the problems of the global economy. on the

positive side exchange rates were stable, interest

rates continued to come down and liquidity was

abundant for the banks with healthy deposit growth.

however export growth rates declined, banks npl

continued to go up and a lack of domestic demand

lead to a significant decline in credit growth rates.

global and local macroeconomic conditions have

created significant challenges for the vietnamese

banking sector.

maritime bank was not unaffected by this

challenging environment. our capital ratios,

however, continued to be healthy at 11.93% in

2012. we continued to increase our distribution.

we introduced new products such as credit cards,

home equity, bancassurance in retail banking

and competitive interest lending product mfloat

and mflex for our large corporate and small and

medium (smE) customers. we strengthened our risk

management processes and systems across credit,

market and operational risk. we continued our

Message froM the Chief exeCutive offiCer


estaBlishMent and developMent history establishment dayvietnam maritime commercial joint-stock bank (maritime bank or msb) was officially established in accordance with the business license no. 0001/nh-gp dated 08/06/1991 by the governor of state bank of vietnam. on 12/07/1991, maritime bank had its official opening and was operating in hai phong port city, right after the ordinance on commercial banks, credit collectives, and finance companies took effect.

Business fieldsbusiness fields of maritime bank include money-market trading, credit and financial services, monetary, and banking and etc as specified in the certificate of Establishment and business license, business registration certificate of the bank, and follow regulations of credit laws, and relevant current regulations, to serve the customer targets as stated in the mentioned business strategy.

development process

Established and officially put into operation charter capital: vnd 40 billion 24 shareholders

strongly developed since 2005, after having balanced itself from the asia financial crisis having 16 transaction points

comprehensively changed, in terms of business orientation, brand name and image with a modern and sharp operation roadmap charter capital: vnd 5,000 billion, total assets: more than vnd 100,000 billion having around 140 transaction points and 28 branches nationwide

charter capital: vnd 8,000 billion total assets: approx. vnd 110,000 billion operation network: 216 transaction points 2012

2010

2005

1991

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estAblishment And development histoRy

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estAblishment And development histoRy

visionto become one of the leading commercial joint-stock banks in vietnam

Missions provide various financial products and services with the best quality, closely following the actual needs of customers; create a professional working environment with career development opportunities for all staff; bring about sustainable benefits for shareholders by implementing new business strategy based on the best international practices and standards, and in line with the regulations of state bank of vietnam;

Core valuecreate and add sustainable values!

development orientation

reports of Board of direCtors and exeCutive CoMMittee

suMMary on Business perforManCe in 2012overview on financials

in 2012, the world economy continued to witness a complicated turbulence, with downsized trades, slow growth. in vietnam, the implementation of monetary tightening to control inflation was necessary. however, this also brought about the fact that domestic demand decreased, inventories became bulky and many enterprises were in business difficulties. regarding banking and finance, 2012 was the year when the whole banking system had to cope with the pressure on ensuring liquidity, reducing deposit interest rate, limited credit growth, npl issues and organizational restructuring to strengthen the competitiveness.

despite the gloomy background, the first highlight for maritime bank business operation in 2012 was the maintaining of total operating income at the same level as against previous year. specifically, total operating revenue of maritime bank in 2012 was vnd 2,619 billion, increasing more than 9% as against last year, of which, net interest revenue was vnd 2,009 billion, increasing 29% as against that in 2011; gross interest profit ratio was 17%, higher than that of 11% in 2011. these figures reflected the efforts in finding low-cost funds, reducing deposit interest rate to have low interest expenses. besides, other businesses of the bank were profitable. Especially, net profit from fX trading and securities trading was remarkably increased as compared with last year, despite the difficulties in the market since 2011. in details, the profit from fX trading increased 110%, equivalent to vnd 88 billion, that from securities trading was vnd 100 billion.

regarding to the business scale, maritime bank assured the total assets of the whole system of vnd 109,923 billion, which was similar to that in 2011. of which, 56% was from deposits of economic organizations and residents, and from bond issuance. specifically, customer deposits

(including bond issuance) of maritime bank at year-end were 61,881 billion, of which deposits from residents increasing 36%, accounting for 54% of total deposits from primary market. this reflected a stable structure of funding sources of the bank.

regarding credits, in 2012, credit growth of the whole banking sector was only 6-8%, due to the fact that only few enterprises could prove the efficiency of their business and their repayment capability, which are very important conditions to borrow from the banks. with the current monetary policy and macro economic situation, the growing in credit was not feasible, and could even bring about the potential risks for the banking system. facing the situation, with its motto of safe - efficient - sustainable operations, maritime bank attempted to reduce lending exposures, focusing on the enhancement of credit quality. as of 31/12/2012, total exposure of the bank was vnd 28,943 billion.

furthermore, with its long-term strategic vision, maritime bank spared a remarkable part of budget for human resource investment, technology development and product development. total operating expenses of the bank in 2012 was vnd 1,855 billion, of which, 43% was the human resource expenses. besides, in order to ensure the healthy and sound banking operations, as well as to strictly follow the decrees of the government on risk provisioning and settlement, maritime bank reviewed and re-evaluated collateral and made provisions at max levels. high provision costs were the direct cause to the pre-tax income amount of only vnd 255 billion in 2012. this result accurately reflected the actual difficulties of the banking sector during the past year as well as partly reflecting the transparency in operations of maritime bank.

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RepoRt on peRfoRmAnce

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Achieved financial targets

no criteria planned

(vnd billion)

achieved

(vnd billion)

in percentage

(%)

1 total assets 110,000 109,923 99.9%

2 deposit mobilization from primary market and bond issuance 60,000 61,881 103.1%

3 lending to economic organizations and residents 30,000 28,943 96.5%

4 npl ratio

Credit vietnam economy in 2012 evolved in a bad direction,

which made individual businesses and enterprises go bankrupt. many enterprises were not efficient and had to narrow down their business scale. these enterprises themselves cut down on borrowing, and instead, making use of their owners equity, receivables to reduce financial expenses, as well as the pressure on repayment. such difficult situations certainly impacted on credit operation of maritime bank.

key credit operation of maritime bank was corporate credit, which was totally vnd 27,428 billion, accounting for 94.77% of the total exposure. retail credit was vnd 1,515 billion at 2012 year-end, accounting for 5.23% of total lending to customers.

smE customer segment made up a main part of corporate credit. the number of borrowing customers in this segment as of december 2012 was approx. 800.

other businesses trade finance

in 2012, beside its traditional trade finance operations such as guarantee, letter of credit (l/c), collection, discount and etc, trade finance products of maritime bank were improved, meeting the requirements of the market. maritime bank launched two new products of l/c refinancing and usance payable at sight (upas) l/c, which contributed to solve the issue on preferential funds and to decrease the pressure on foreign currencies for the customers.

regarding guarantee operations, though 2012 saw many incidents related to the operation at other credit institutions, maritime banks guarantee service was still selected by many domestic and foreign agencies, enterprises such as mobifone, vinaphone, viettel, pv oil and etc, especially there were high payment value guarantees. the success of maritime bank in trade finance operation was from the efforts to respond to standards as well as the requirement of the customers; from the adjustment of internal regulations to assure the compliance

with new policies of sbv; and from the non-stop efforts in upgrading new products, services. maritime bank was proud of being one of the first banks in vietnam leading the study and successful implementation of E-tax guarantee product, which was a new benchmark in trade finance operation. with its own-designed template of guarantee, which is controlled as valuable papers, and with its rapid verification mechanism, the guarantee service of maritime bank has satisfied even its difficult customers.

regarding correspondent bank network, as of 31/12/2012, maritime bank worked with almost 600 banks in 60 countries worldwide. despite disadvantages of macro economic situation, more than 40 domestic counterparties and 30 foreign counterparties granted and increased the credit lines of martitime bank, with the total limits of hundreds of million of usd. maritime bank signed agreements on import - export financing with wells fargo, intesa sanpaolo, industrial and commercial bank of china (icbc), australia and new zealand baning group (anz), and unicredit, strengthening its deposit mobilization in foreign currencies to support import-export activities of corporate customers.

interbank operationsin 2012, interbank operations of maritime bank were still

stabilized. financial investment balance (interbank deposits, stock investment, excluding capital contribution, share purchase) as of the year end was vnd 59,521 billion, which was equivalent to that in 2011 year-end. placement and loans maritime bank granted to other banks was vnd 29,039 billion as the same as per last year. in terms of deposit mobilization on secondary market, deposit and borrowing from other banks were vnd 30,235 billion, increased 32% as against 2011. the bank balanced its funds to ensure liquidity, and maximized profits from idle mobilized funds, reinvested in interbank lending and other financial investments, contributed a remarkable part to the business result of the whole bank.

regarding fX transactions, maritime bank affirmed itself as a market maker and took the lead in the market in terms of transaction volume, which was usd 38.6 billion in 2012.

regarding lc customer segment, maritime bank has always been focusing on special orientation of development. these large corporates are often natural resources/mineral exploration units, which are being exclusively controlled by the government, or those with fdi, operating on manufacture and production industries. despite a small proportion, these corporates are having large scales, number of staff, and industrys specialized features, which create far bigger gdp than that of smE and are considered a key sector in the national economy.

in 2012, maritime bank achieved good results in lending to lc customers by focusing on its prudential ratios rather than total assets and credit growth.

2010 2011 20120

5,000

10,000

15,000

20,000

25,000

30,000

24,281

21,025 19,874

2010 2011 20120

5,000

10,000

15,000

25,000

9,882

7,546 7,554

movement of lending exposure to smE customers over years

unit: vnd billion unit: vnd billion

credit growth in lc customer segment over years

maritime bank shouldered and supported enterprises during difficult period of the economy by providing new credit products with competitive interest rate such as mfloat, mflex, super short-term lending, etc. this was a key point enabling maritime bank to keep its current exposure and customer network, focusing on credit quality

enhancement. it is planned that in 2013, the bank continues to deploy well-tailored products to meet the demand of each customer group and to diversify the products.

securities investment and equity investment

government bond investment and other securities investment were mainly with available-for-sale debt securities, which reflected the safety of the investment portfolio of maritime bank. total securities investment (excluding capital contribution & long term investment) was vnd 30,482 billion, of which vnd 30,389 billion was available-for-sale securities (accounting for 99.6%), vnd 93 billion was trading securities (accounting for 0.4%).

total capital contribution as of 31/12/2012 was vnd 2,109 billion, increased vnd 355 billion (20%) as against last year and was in line with regulations on ratios, limits of capital contribution of sbv.

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product development Maritime Bank was evaluated as a bank with user-friendly, professional, convenient, and modern products and services.

in 2012, maritime bank continued improving modern payment features in order to provide customers with the most convenient and effective financial solutions. additionally, given the goal of product diversification to meet increasing demands of customers, the bank launched a bundle of new customized products with top advanced facilities in the financial market.

Platinum Credit Card 2012 marked the birth of the first credit card product of maritime bank for first class customers. maritime bank platinum credit card brings customers many utilities and unique experience. customers can enjoy a limit of up to vnd 1 billion and many other offers such as priority pass first class lounge service, global travel insurance coverage, reward points and other privileges from maritime bank and its partners. after being officially launched in september, 2012, the payment volume after 3 months was vnd 17 billion and particularly vnd 15 billion in the fourth month. 1,500 maritime bank platinum credit cards were issued in the fourth quarter of 2012.

Platinum VIP Product Packagethis is an exclusive product to optimally meet the demand for cash management of groups and corporations that have many subsidiaries, independent and dependent units. given prominent features such as free service charge, attractive deposit interest rate, balance of cash flows of member companies and convenient internet banking transaction making, platinum vip is recognized as one of key products of maritime bank.

Call center: (04)39.44.55.66/1800.599.999Website: www.msb.com.vn

Li sut u i, linh hot vi th trng

Thi hn vay ln n 6 thng

H tr qun l ri ro li sut

T vn trn gi cc sn phm phi sinh

Ti sn m bo

a dng, ph hp vi c th kinh doanh

H s tn dng v

quy trnh n gin, nhanh chng

6 THNG

GI SN PHM 3M

CHO VAY VI LI SUT U IDNH CHO KHCH HNG DOANH NGHIP

MFlex

3000 T NG

TNG HN MC TI TR

LN N

3000

network and distribution channel development Maritime Bank focused on comprehensive development of sales channels, especially electronic channel to bring the highest convenience and flexibility to customers.

MFlex and MFloat - Prominent Derivative productsto adapt to the market movements, maritime bank flexibly and promptly launched the lending product packages mfloat and mflex offering preferential interest rates and the disbursed volume reached over vnd 537 billion in 2012. with outstanding features in terms of inexpensive interest rate and flexibility according to assessments, these product packages are expected to better meet customers demands for loans in 2013.

Bancassurance Productlaunched in april, 2012 through the partnership with reputable insurance providers like bao viet, prudential with the aim of designing and providing customers with distinctive, preferential and flexible products, maritime

1991 - 2013

bank achieved a remarkable development progress with commission revenue of vnd 3.5 billion.

Gold Trading Productmaritime bank was one of the first banks that were eligible for gold bar trading license by the state bank of vietnam with the total volume of nearly usd 70 million and about 2,000 sale and purchase transactions in 2012. in addition, the bank also developed new lending products for retail customers and insurance-combined product packages (mplus care, pbo), structured investment products, option and overdraft, etc.

By bringing into full play its gained strengths, Maritime Bank expects that 2013 will be a year of differentiation created through distinctive products and services with the goal of quickly launching products in the market and meeting demands of each customer segment to the maximum extent.

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transaction offices by the end of 2012, maritime bank had a network of 216 transaction offices nationwide in which there were 15 newly-opened ones and 8 offices designed as first class banking lounges for first class customers.

atMin 2012, the number of atm across the system was 370, an increase of 140. in addition, maritime bank successfully connected to the mastercard international organization, which allowed mastercard holders to make transactions on the atm network of maritime bank.

M-banking

internet Banking: with the successful adoption of new internet banking version, maritime banking focused on enhancing its service quality and fully exploiting its services offered to customers.

Mobile Banking: in 2012, maritime bank concentrated on the service exploitation by launching many marketing and promotion campaigns to provide services for every target customer. by the end of the year, there was a very high increase in the number of customers and transactions made on mobile banking (up by around 600%).

sMs Banking: with the focus on providing a simple transaction channel anytime, anywhere, in 2012 maritime bank paid due attention to improve service quality, service introduction and registration for its customers.

online payment with M-paynow: with constant effort to expand its online payment card network, maritime bank and payment intermediaries successfully connected with many new goods and service providers and ran many marketing

programs to introduce, promote, consult and encourage customers to use the service. although the product was launched after other banks, m-paynow payment service achieved a very high growth rate and big turnover.

increased preferential services for cus-tomers: M-smart Discount Community by the end of 2012, maritime bank successfully established relations with 235 partners and over 570 discount merchants for the banks card holders. 73 co-marketing programs were launched. customers enjoyed 6 discount offers per month on average together with many other gifts like vouchers to buy goods at the partners merchants. in respect of first class customers, maritime bank also cooperated with many partners to organize conferences exclusively for customers who are members of first class banking and received positive reviews.

direct sales forcein 2012, maritime bank continued conducting many activities to promote business performance of the direct sales force. this strong and enthusiastic force of up to 1,200 staff made significant contribution to increase maritime banks business scale as well as promote the banks image and brand name in the eyes of customers and partners.moreover, the bank implemented the mechanism for cooperation and hand-over of customers between the direct sales force and sales staff at transactions offices. this mechanism approached the operational specialization in different sales channels in order to increase new customer acquisition and development and improve customer care service. in 2012, the direct sales force handed 300,000 customers over to transaction offices with the balance of casa and fd of more than vnd 1,000 billion and vnd 3,000 billion respectively.

92.00%90.00%88.00%86.00%84.00%82.00%80.00%78.00%76.00%74.00%

2011

2012

Transactionspace

Staffqualification

Serviceattitude

Transactionprocedures

graph on voice of customers (voc) in 2011-2012

graph on service quality survey results in 2012

2012 Plan

100%95%90%85%80%75%

70%1 2 3 4 5 6 7 8 9 10 11 12

service quality facilitiesthroughout its operation, maritime bank always focused on building elegant, good looking and modern transaction space. in 2012, the facility quality of maritime bank was improved when many transaction offices were renovated or relocated to ensure convenient transaction space for customers. the bank also officially launched the first class banking program for vip customer segment and designed a distinctive and elegant space for such customers when they make transactions at maritime bank.

service quality to constantly ensure and improve its service quality, maritime bank developed monthly and quarterly service surveys and service quality assessments using advanced and effective tools such as:

5s survey: the working environment of transaction offices

is checked on a quarterly basis according to the five criteria including sorting, setting in order, shining, standardizing and sustaining in order to assess the working environment. the survey results showed that all transaction offices were aware of and seriously followed labor regulations and rules, ensured a well-organized and clean working space as per 5s standards.

voice of Customers (voC): Every month, service quality unit make phone calls and survey customers on service attitude and staff qualification, products and policies of maritime bank, etc. to improve the service quality and build up a new maritime bank image to customers.

staff expertise survey: staff expertise surveys are periodically conducted with a mechanism on rewards and penalties to motivate staff to further study and improve their professional knowledge.

voice of staff (vos): the survey is conducted to understand staffs thoughts and expectations in order to make timely adjustments to enhance staff satisfaction at work and make staff stick with maritime bank for long time.

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Banking technology development strategy is an important platform in the development of operational activities and banking services.

in 2012, maritime bank carried out nearly 70 it projects in order to develop and diversify products and services as well as more than 100 requests for change to innovate and improve operational efficiency of existing products. many outstanding projects were implemented such as upgrading internet banking, mobile banking, completing technological platform for credit card product, launching kondor+, fX project in branches and Enterprise resource planning (Erp) project, of which some projects were firstly launched in vietnam such as the project on risk management in the financial market (kondor+). maritime bank was the first vietnamese bank investing and adopting treasury transaction management system consistently from front office, middle office and back office. with this new management system, limits are controlled automatically in the transaction process. the

system also provides tools to calculate risk limits, develop value at risk (var) and derivative pricing models.

beside promoting the development and adoption of new technologies, maritime bank also focused on maintaining the quality of current it services by investing and upgrading the system platform as well as supplementing and improving operation - related to processes and regulations. therefore, the adopted systems run stably at average rate of 99% and ensure smooth transaction activity across the system.

maritime bank will continue implementing operation development projects such as crm (credit relationship management), Ecm (Enterprise content management), visa, anti money laundering, etc. in order to improve quality, diversify products and services with the aim of ensuring operation, improving technological infrastructure and enhancing security measures and information security across system.

regarding operations, 2012 was the year maritime bank continued optimizing operational activities towards centralization, standardization and automation to the maximum extent.

beside vault and cash, admin, asset management activities, which are fully centralized according to each independent operation, in 2012, maritime bank also centralized operations at the counter to help business units concentrate in their business targets. the efficiency of fully centralized operations brought great benefits to the bank, helping improve operational and supporting activities at business units in terms of both service quality and compliance risk control ability. typically, the centralized vault and cash operation helped reduce the cash balance by one third (1/3) compared to the previous time.

together with the maximum centralization and standardization, maritime bank also centralized product parameter management in the corebanking system. the centralization of parameters helps to manage and exploit the system more strictly and efficiently, leading to an improvement in product processes and product and service provision to maritime bank customers.

similarly, the receipt and processing of operational requests from all units and staff across the system were centralized and automatically distributed through the service request management system. all the operational activities have service level agreements slas. all payment orders, calls, specialized car travels and other operational activities are measured in terms of processing time and error rate. the average slas rate of 2012 was over 96%. this is a solid foundation for maritime bank to constantly improve and optimize its banking operations.

being aware of the important role of human resource in service quality assurance, in 2012, maritime bank developed and deployed many professional and skill trainings for staff such as trainings on customer services, sales skill, etc. staff at hubs were regularly tested on professional knowledge, compliance and rated periodically. in addition, maritime bank also held many internal emulation programs such as smile month, t-pro, etc with the expectation of praising excellent individuals, fostering the customer care culture to the banks staff. with the success of 2011 maritime bank smile program, smile month was held to highlight the role of smiles in communication

with customers and customer service. as a result, many retail hubs received appreciation such as thank-you letters or flowers, etc from customers. moreover, maritime bank was honored to be ranked as one of the ten financial enterprises with the most satisfactory service quality in 2013. one more time, this title is a meaningful recognition for all the efforts of maritime bank and its staff in the past time on the path of carrying out its mission to become one of the banks with the best service quality in vietnam.

operations

Technology investment

enhancement of staff quality

Maritime Bank puts constant effort in to better service quality to bring good experience and satisfaction to customers.

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risk governance risk governance structure

risk academy in 2012, maritime bank successfully conducted many important risk management programs, typically the risk academy project. this was a training program on comprehensive risk management that was launched bank-wide. the program brought the bank a new perspective on risk management towards modernization and efficiency in alignment with basel ii standards in order to build a particular risk management culture in maritime bank.

Risk Management Credit risk Management maritime bank managed credit risk according to specific customer groups including corporate credit risk management, retail credit risk management and global market/financial institutions (gm/fi) counterparty risk management. the bank built credit risk indicators for portfolio management level to monitor and apply credit policies suitably for each type of customers.to improve the quality of credit risk management and the early warning system, credit risk models were updated and new ones were also developed for all customer groups. in 2012, the tool for rating fi customers fi tool was approved by board higher risk committee, qualitative credit assessment (qca) was revised in line with macroeconomics conditions and customer size; scorecard for credit cards was also built to manage retail credit risk; risk based pricing and field analysis were also implemented to manage corporate credit risk.maritime bank monitors credit risk according to the best practices. the monitoring results are reported regularly to sbv and within maritime bank, to create a channel of credit information and credit information management. this is a basis for bad debt handling, loan classification and provisioning.

liquidity risk Management in 2012, liquidity risk management was well-implemented in maritime bank through updated information and reporting system, a close coordination between business units and risk management division and effective management of alco. the bank complied with all prudential ratios and internal liquidity risk limits at all time, maintained large amounts of government bond as liquidity buffer, especially built and implemented the regulation on liquidity crisis management. the bank also successfully developed a liquidity contingency plan to ensure response ability to difficult liquidity scenarios of the bank and the market.

Market risk Managementmaritime bank continued achieving successes in market risk management in 2012 when completing the kondor plus phase 2 and kondor global risk (kgr) value at risk projects that helped the bank to improve the management and monitoring of market risk indicators in all business activities in fi banking towards international standards on measurement and management of market risk. in addition, the market risk management limit system (volume limit, open position, maximum loss limit, etc) was restructured and updated in a timely manner together with the enhancement of the daily market risk monitoring and reporting system to each business unit to ensure the market risk management is in line with actual business practices.

operational risk Managementthe operational risk management structure was completed with the establishment of management operational risk committee. the operational risk reports were developed, implemented periodically and sent to senior management and business units. the scope of operational risk management was extended to all business units. the development and implementation of the operational risk management regulations, the analysis of operational risk events and many action programs were conducted to minimize operational risks.

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Board level CoMMittees

CC hi ng Cp hi ng iu hnh

Credit risK

poliCy & govern-

anCe Center

retail Credit Center

Counte-rpart

risK Manag-eMentdept

risK deBt

settleM-ent

dept

risK analyti-Cs tools

and Models

dept

MarKet and

liquidity risK

Manag-eMentdept

operati-onal risK

Manag-eMentdept

ManageMent higher risK CoMMittee

handling the banks treatment for credit

risk, market risk, operational risk and other risks within its

mandate

alCo

providing oversight and advice to the board in relation

to the banks assets & liabilities

management

ManageMent operational

risK CoMMittee

reviewing and consulting brc on

strategic framework, appetite and policy of operational risk

management

ManageMent Credit &

investMent CoMMitteeapproving credit granting cases,

investment cases and transaction limits for customers within its

mandate

Board of direCtors

taking the ultimate and highest responsibility for the banks risk appetite and tolerance

risK division

internal audit

Board higher risK CoMMittee

handling the banks treatment for credit

risk, market risk, operational risk and other risks within its

mandate

audit CoMMittee

reviewing and assessing the

effectiveness and efficiency of the

performance of the risk management policies system in

msb.

Board Credit&

investMent CoMMittee

approving credit granting cases,

investment cases and transaction limits for customers within its

mandate

Board risK CoMMittee

assessing, recommending the

banks risk management framework, risk

strategy including risk appetite, and

approving risk policies, risk measurement

methodologies etc. within its mandate

Board of supervisors

providing independent comments to the bod on the effectiveness of the strategies, policies, regulations and risk management of msb

EXCO LEVEL COMMITTEES

pr and Brand development in review of the business operation after one year, according to experts, 2012 was a year with complicated movements in the banking industry given the prosecutions of many senior leaders and the disappearance of some brand names after restructuring processes, etc. in that context, maritime bank still had a quite smooth period in its branding activities. beside the post of information on promotion programs, products, maritime bank continued

to sponsor the program, namely live a beautiful life broadcasted on vtv1 and financial advisory column on securities investment magazine. in addition to the above, maritime bank activities articles were published approx. 20 to 25 times per month. according to strategic orientations in 2013 business operation, maritime bank determined to focus on in-depth development, maintain its current position, brand prestige and reinforce brand loyalty through products superiority and quality of customer services.

social activities time social activities

jan 11th, 2012 give early tet holiday gifts to disadvantageous families and victims of agent orange in quynh phu district, thai binh province.

may 22nd , 2012 award 100 smiling tomorrow scholarships to poor students who overcome difficulties and disabled children in hoa thanh, tay ninh province.

may, 24th-25th, 2012 give more than 200 smiling tomorrow scholarships to poor and disabled students at dong phu elementary school and the center for disabled children in quang binh province.

may 30th, 2012 award 40 smiling tomorrow scholarships to children in especially difficult circumstances in dong Xuan district, phu yen province.

jun 18th, 2012 award 60 smiling tomorrow scholarships to disadvantageous children in phu yen province

jun 1st ,2012 award 120 smiling tomorrow scholarships to poor studious children in khanh hoa province

jun 13th ,2012 give 100 gifts to children having treatment in hue central hospital

jul 27th, 2012 give presents to vietnamese heroic mothers in can gio district, ho chi minh city

aug 31st ,2012 sponsor education activities in hoang van thu ward, bac giang city

sep 20th, 2012 organize mid-autumn festival and award presents to more than 100 children patients in buon me thuot general hospital

sep 9th, 2012 give over 120 gifts to children patients having treatment in lam dong general hospital.

oct, 2012 award scholarships to excellent students at nam dinh industrial college on occasion of new school year ceremony 2012-2013

nov, 2012 sponsor 35th anniversary for post- graduate education of vietnam national Economics university (hanoi)

in 2012, in addition to such activities as presenting gifts to victims of agent orange/ dioxin, taking care of vietnamese heroic Mother, and etc., Maritime Bank developed smiling tomorrow charity fund dedicated to children who are in need and difficulty but strive to overcome such challenges. all disadvantageous children ranging from those who are unfortunately affected by fatal diseases to poor but studious pupils in provinces, including ones without transaction offices of Maritime Bank gained attention and support from the senior Management of the Bank. Maritime Bank has put much effort into the maintenance and expansion of this activity so that smiling tomorrow can really become one of meaningful community activities, adorning bright future picture with vivid strokes of colour. expenditure on this charitable activity totals vnd 2 to 5 billion/ year.

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2013 - 2015 Business plan in 2013 and the period of 2013 - 2015

five priorities in 2013given the solid foundation that has been built through the implementation of the business strategy since 2010 as well as from the achieved results in 2012, maritime bank set the five key priorities to be focused and implemented across the system in 2013 based on set-forth strategic orientations as follows:

double casa balance; improve revenues towards sustainability: shift

revenues from lending activity to fee revenue; focus on npl collection, monitor and make

preparations for the establishment of a vietnam asset management company (vamc);

Enhance risk management, market forecasts and focus credit growth on good enterprises and industries.

maximize resources, revenues and costs.

Key initiatives in 2013to realize the set strategic goals, in 2013, maritime bank will foster its internal management capacity and improve its resource utilization efficiency to carry out the following key initiatives: continue completing and centralizing all

operational activities to one focal unit to improve the quality and save costs such as centralizing operations at the counter, control of disbursement, finance, etc.; apply international standards to increase the efficiency of operational and supporting activities;

restructure retail banking and small and medium Enterprises models, concentrate resources and expand network for sufficiently large customer segments with profit potentials and create specific advantages for maritime bank in the market;

pilot other business models with the target of bringing financial services to serve various customers in different potential regions;

officially launch transaction banking; improve treasury activity towards international

standards, diversify customer portfolio and provided products, increase profit from capital and enhance competiveness of treasury activity in the market;

continue improving credit risk model for better credit quality;

invest in it system such as aml, crm, Ecm, etc; improve processes and regulations to save time

and human resource, increase transaction speed with customers and competiveness of the bank;

develop more fee-based income products, promote cross selling, and launch products towards customers with strong financial potential through flexible policies.

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organization structure of maritime bank experienced many breakthrough changes towards centralized and consistent management, flexibility and specialization to optimize all resources and intellect of high quality personnel to serve customers whole-heartedly and enthusiastically.

huMan resourCe organizational struCture and ManageMent

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humAn ResouRce mAnAgement

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general asseMBly of shareholders

Board of direCtors

Board of supervisors

Board Credit and investMent CoMMittee

Board higher risK CoMMittee

Board risK CoMMittee

ManageMent higher risK CoMMittee

retail BanKing

operations ManageMent departMent

Card operations & e-BanKing Center

payMent Center

BanKing teChnology departMent

fi operations departMent

Call Center

support Centers

teChnology & operations division

Credit ManageMent and investMent Board pr & MarKeting Board strategy ManageMent Board legal & CoMplianCe Board

alCo CoMMittee exCo ManageMent Credit & investMent CoMMittee standing deputy Ceo (*)

finanCe ManageMent Center

aCCounting ManageMent Center

finance Management division

CpC

Credit Control Center

Credit support Center hn/ hCMC

area Credit support Center

Credit appraisal & investment Center

Credit approval division

Credit risK poliCy & govelnanCe Center

gM/ fi Counterparty risK ManageMent departMent

operational risK ManageMent departMent

retail Credit Center

risK analytiCs, tools & Models departMent

risKy deBt settleMent departMent

MarKet/ liquidity risK ManageMent departMent

risk Management division

gloBal MarKet Center

fi Center

Business Monitoring & support departMent

alM/ treasury departMent

fi BanKing

lC huBs

deBt turnaround departMent

Business analysis & serviCe quality

departMent

produCt developMent departMent

lC BanKing

ManufaCturing Business departMent

sMe huBs

trading Business departMent

retail Business departMent

trade finanCe Center

deBt turnaround departMent

Business analysis & serviCe quality departMent

sMe huBs

organizational Chart

MaritiMe BanK offiCe

internal audit

(*) To be in charge of assigned units

asset ManageMent departMent

CustoMer serviCe Center

Cash & vault operations Center

adMinistration Center

Chief exeCutive offiCer

personnel CoMMittee

strategy CoMMittee

audit CoMMittee

Business ManageMent departMent

retail Credit produCt Business Center

retail serviCe Business & developMent Center

international Card Business Center

new Business Channel developMent Center

fCB huBs

retail huBs

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Academic qualification: Bachelor of Commerce, Harvard University, the United States

Work experience: Mr. Francis Andrew Rozario used to undertake senior positions at well-known banks and financial institutions such as Citi Group, Temasek Holdings, Fullerton Financial Holdings and at other banks and financial institutions in Africa, America and Asia. Currently, he is the Chairman cum the CEO of Asia Capital & Advisors Pte. Ltd Company headquartered in Singapore and specialized in consulting. At the 20th annual general meeting of Maritime Bank, he was successfully elected to the Board of Directors Term V (2012-2016) as the 1st Vice Chairman. Currently, he also undertakes the position of President of Strategy Committee at Maritime Bank.

Mr. franCis andrew rozario The 1st Vice Chairman

Academic qualification: Master of Business Administration, Griggs University, the United States

Work experience: Mr. Tran Anh Tuan was appointed to the Board of Directors Term IV (2007-2011) as the Vice Chairman. From October 2008, he was concurrently appointed as the CEO of Maritime Bank and undertook the position until successfully elected to the Board of Directors Term V (2012-2016) as the member at the 20th annual general meeting of Maritime Bank. Currently, he holds the position of Board Chairman, President of Board Higher Risk Committee and President of Board Credit & Investment Committee at Maritime Bank.

Mr. tran anh tuan Chairman

Academic qualification: Master of Financial Economics, National University of Singapore

Work experience: Mr. Dao Trong Khanh used to work at prestigious banks such as Citi Group, Caylon Bank, Mizuho Bank. He undertook positions of the Chief Executive Officer (CEO) and member of the Board of Directors at Tien Phong Bank, as well as the Deputy CEO of Maritime Bank. At the 20th annual general meeting of Maritime Bank, he was successfully elected to the Board of Directors Term V (2012-2016) as the Standing Vice Chairman. Besides, he concurrently holds the position of President of Board Risk Committee at Maritime Bank.

Mr. dao trong Khanh Standing Vice Chairman

Academic qualification: PhD in Finance and Banking, Leningrad University (Soviet Union)

Work experience: Before working for Maritime Bank, Ms. Vu Thi Lien was Vice Governor of the State Bank of Vietnam. After her retirement, she was the Principal of Dai Nam Private University. At the 19th annual general meeting in 2011, she was successfully elected to the Board of Directors Term IV (2007-2011) as the independent member. At the 20th annual general meeting, she was successfully elected to the Board of Directors Term V (2012-2016) as the member. Besides, she concurrently undertakes the position of President of Human Resource Committee at Maritime Bank.

Ms. vu thi lien Member

Academic qualification: Master of Finance, Banking and Insurance, Vietnam National University.

Work experience: Mr. Vu Duc Nhuan undertook senior positions at Vietnam International Bank (VIB), Bao Viet Bank and Maritime Bank. At the 20th annual general meeting of Maritime Bank, he was successfully elected to the Board of Directors Term V (2012-2016) as the member. He currently undertakes the position of President of Audit Committee at Maritime Bank.

Mr. vu duC nhuanMember

Board of direCtors (Bod)

MeMBers of CoMMittees, Boards

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Board of supervisors (Bos)

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Academic qualification: Master of Business Administration, Grigg University, United States

Work experience: Ms. Le Thanh Ha has been working for Maritime Bank since 1991 and undertook managerial positions at units such as Accounting, Call Center, Capital Management, Foreign Exchange Investment and Trading. From October, 1st, 2010, Ms. Le Thanh Ha was appointed Deputy Head of Global Market Division, FI Banking of Maritime Bank. At the 20th annual general meeting of Maritime Bank, she was successfully elected to the Board of Supervisors Term V (2012-2016) as the member.

Ms. le thanh haMember

Academic qualification: Bachelor of Banking, Banking Academy

Work experience: Ms. Chu Thi Dam joined Maritime Bank in September 2008 and undertook the positions of Head of Internal Audit Department, Credit Audit Manager, Internal Audit Unit of Maritime Bank. At the 20th annual general meeting of Maritime Bank, she was successfully elected to the Board of Supervisors Term V (2012-2016) as the member.

Ms. Chu thi daMMember

Ms. phaM thi thanh Head of Board of Supervisors

Academic qualification: Master of Economics, National Economics University of Hanoi

Work experience: Before working for Maritime Bank, Ms. Pham Thi Thanh was the Deputy Director of the State Bank of Vietnam in Ha Tay (before), Deputy Head of General Control Department of the State Bank of Vietnam, member of the Board of Directors and Head of the Board of Supervisors at Vietnam Bank for Social Policies. From April 2009 to August 2009, she was elected to the Board of Supervisors of Maritime Bank and undertook the position of Head of Board of Supervisors from September 2009 until then end of term IV. At the 20th annual general meeting of Maritime Bank, she was successfully elected to the Board of Supervisors Term V (2012-2016) as Head of the Board of Supervisors.

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Academic qualification: Master of Business Administration, South California University, USA.

Work experience: Mr. Tran Xuan Quang held many key senior positions at both Bao Viet Bank and Maritime Bank, namely Deputy CEO in charge of Treasury Division and Retail Banking, Head of SME Banking at Maritime Bank and Head of Retail Banking at Bao Viet Bank, etc. Since January 2011, he has held the positions of Maritime Bank Deputy CEO cum Head of Strategy Management Division and Deputy Director of Strategy Development Project. From March, 16th, 2012, he was appointed Maritime Bank Standing Deputy CEO cum Head of Strategy Management Board and a member of Executive Committee.

Mr. tran xuan quang Standing Deputy CEO cum Head of Strategy Management Board

Academic qualification: Master of Business Administration, Rice University, USA

Work experience: Before joining Maritime Bank, Mr. Atul Malik held many key positions at Deutsche Bank, one of the largest global banks all over the world, namely Asia Pacific Head of Private & Business Customers; Member of Asia Pacific Executive Committee, Member of Global Private & Business Customers Executive Committee, BOD member of Deutsche Bank China. After that, Mr. Atul worked at Citigroup in various positions such as Retail Banking Director - Citibank HongKong, Member of Citibanks Asia Pacific Executive Committee, Member of Citibank Global Executive Committee Country Manager, Retail Banking, etc. Since 24-5-2012, he has officially taken the position of CEO and President of Executive Committee.

Mr. atul MaliK Chief Executive Officer (CEO)

Academic qualification: Master of Accounting - Monash University, Australia.

Work experience: Before working for Maritime Bank, Mr. Phung Duy Khuong undertook key positions such as Deputy Chairman of Finance in GE Money South East Asia cum Business Development Director of GE Money Vietnam; Deputy CEO in charge of Retail Banking at Dong A Bank. In August, 2010, he was appointed Head of Retail Banking cum member of Executive Committee.

Mr. phung duy Khuong CEO of Retail Banking

Academic qualification: Master in Management, Universitaire Libre de Bruxelles

Work experience: Before joining Maritime Bank, Ms. Hoa held key positions at VIB, namely CEO, Deputy CEO cum Head of Retail Banking, Chief Finance Officer and etc. Previously, she had been senior manager at Oracle Vietnam, Credit Lyonnais Bank, VMEP (Vietnam Manufacturing and Export Processing Company Ltd) and etc. On February, 21st, 2013 she was appointed Head of SME Banking at Maritime Bank.

Ms. duong thi Mai hoa CEO of Small and Medium-Sized Enterpise Banking (SME Banking)

exeCutive CoMMittee

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Academic qualification: Master of Business Administration, Sorbonne Paris 1 University

Work experience: Ms. Nguyen Huong Loan used to hold leading positions as Deputy CEO of Treasury Division at Techcombank, Head of Treasury Division Preparatory Committee at Vietstarbank, Head of Treasury Division at PG Bank, Deputy CEO in charge of Treasury Division at Maritime Bank. From January 2011, she was appointed Head of Wholesale FI Banking cum member of Executive Committee at Maritime Bank.

Ms. nguyen huong loan CEO of Financial Institution Banking (FI Banking)

Academic qualification: Bachelor of Economics, Banking Academy

Work experience: Mr. Nguyen Hoang An joined Maritime Bank in 1992 and since then has held many important positions like Head of Credit Department of Maritime Bank Quang Ninh, Deputy Head of Risk Handling Department, Head of Credit Department of Maritime Bank Hanoi, Head of Maritime Bank Thanh Xuan, Head of Maritime Bank Hanoi, Deputy Head of LC and FI Banking cum Head of LC Banking, Deputy CEO of Maritime Bank. From February 2011, he was appointed Head of LC Banking cum member of Executive Committee in Maritime Bank.

Mr. nguyen hoang an CEO of Large Corporate Banking (LC Banking)

Academic qualification: Bachelor of Commerce and Chartered Accountant, Institute of Chartered Accountant of India

Work experience: Mr. Nilesh Banglorewala has had many years of working experiences in big prestigious banks in the world such as HSBC, Standard Chartered Bank, Scotia Capital and held a variety of positions in finance like Regional Head of Finance and Chief Finance Officer in various countries across the Asia and Middle East area. Since July 2011, he was assigned to be Chief Finance Officer cum member of Executive Committee at Maritime Bank.

Mr. nilesh BanglorewalaChief Finance Officer

Academic qualification: Master of Business Administration, Maastricht Business Administration University, Netherlands.

Work experience: Before working for Maritime Bank, Mr.Vu used to undertake positions such as Head of Division - Mekong Bank, Head of Sale & Marketing SGVF and had more than 10 years of experiences in professional manager of Consumer & Retail industry as Telecommunication A, Metro Cash & Carry, Castrol, Unza and Unilever. From March, 5th, 2013, he was assigned to be Head of M-comb cum member of Executive Committee at Maritime Bank.

Mr. le quang vuCEO of Community Banking (M-comb)

exeCutive CoMMittee

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Academic qualification: PhD in Information Technology, Monash University

Work experience: Before working for Maritime Bank, Mr. Tran Thanh Nam used to work as Deputy General Director for Mobivi (Vietnam), Program Director for Microsoft (USA) and high-level consultant for Readify (Australia). From January 2010, he joined Maritime Bank as Deputy Head of Banking Technology Division. In March 2011, he was appointed Head of Technology & Operations Division, cum member of Executive Committee at Maritime Bank.

Mr. tran thanh naMHead of Technology & Operations Division

Academic qualification: Master of Economics, Banking Academy

Work experience: Before working for Maritime Bank, Ms. Nguyen Thi Luy used to hold important positions as Head of Finance & Accounting Management Dept. at Vietinbank; Deputy Head of Vietinbank Hoan Kiem. Since October 2009, she has been working as a Chief Accountant for Maritime Bank cum member of Executive Committee. From June 2012, she has concurrently undertaken the position of Head of Accounting Management Centre, Finance Management Division.

Ms. nguyen thi luyChief Accountant

Academic qualification: Bachelor of Finance and Credit, University of Economics Ho Chi Minh City

Work experience: Mr. Ta Ngoc Da joined Maritime Bank from the beginning of 2010 and used to undertake such positions as Deputy CEO of Maritime Bank, Head of Credit Approval Division cum Head of Ho Chi Minh Centralized Credit Processing Center. From June 2012, he was appointed Head of Credit Approval Division and Credit Management Board 2 cum member of Executive Committee at Maritime Bank.

Mr. ta ngoC daHead of Credit Approval Division

exeCutive CoMMittee

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Academic qualification: Master of State Management, National Academy of Public Administration

Work experience: Mr. Hoang Xuan Hiep used to hold positions such as Director of Vietnam Bank for Social Policies in Tay Ho district, Head of Dong Da branch Maritime Bank, Deputy Head of SME Banking cum Director of Region I, Head of Preparatory Committee for the establishment of a bank with 100% Maritime Bank capital in Cambodia, Deputy CEO of Maritime Bank. From June 2012, he was appointed Head of Credit Management Board cum member of Executive Committee at Maritime Bank.

Academic qualification: Lawyer, Arbitrator - Vietnam International Arbitrator Centre.

Work experience: Mr. Truong Thanh Duc used to hold key positions as Head of Legal Department at Bao Viet Bank; Head of Legal Department, Head of Secretariat to BOD, Deputy CEO cum Head of Legal and Compliance Division at Maritime Bank. From June 2012, he was appointed Head of Legal and Compliance Board cum a member of Executive Committee at Maritime Bank.

Mr. truong thanh duCHead of Legal & Compliance Board

exeCutive CoMMittee

shareholder structure

Mr. hoang xuan hiepHead of Credit Management & Investment Board

types of shareholders no. of shareholders percentage of share ownership

local shareholders

- individual shareholders 3,876 28.28%

- institutional shareholders 66 71.72%

subtotal 3,942 100%

foreign shareholders - -

total 3,942 100%

Information on Major Shareholders (owning 5% or above of shareholders equity)

no shareholder name address business registration number

percentage of common share ownership

1 vietnam posts and telecommunications group (vnpt)

57 huynh thuc khang, dong da, hanoi

0100684378 8.95%

total 8.95%

shareholders

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Human Resource Managementimplementation of restructuring and staff relocation projects:

Highlighted point in 2012 human resource management of Maritime Bank was the implementation of restructuring and staff relocation projects.

in 2012, in order to streamline organization structure and focus all resouces on the development of core operational activities of the bank, helping to improve the banks position and its business effectiveness, in parallel with a series of business strategy and suitable personnel adjustment solutions, maritime bank has outsourced some services including human resource management, direct sales force, it and procurement.

beside succession planning and staffing, which have always been the focus of human resource management, in this year, the banks human resource management conducted robustly and fiercely personnel relocation and restructuring. hundreds of staff were rearranged and relocated in line with new organization structure, optimizing capacities of each employee for further productivity improvement.

these strategic solutions helped maritime bank save 15% of human resource costs with significant operational productivity improvement compared with those of 2011.

performance appraisal by Kpis:

in 2012, maritime bank further rolled out kpis mechanism both intensively and extensively, which helped correctly appraise individual performance as well as recognize and encourage their contribution and effort to the bank. these are highlights for improving effectiveness of the bank and differentiating it with other banks in vietnam banking sector for the last few years.

2012 2011

average number of staff (person) 5,441 4,699

salary pool ((vnd million) 733,581 503,242

gross income (vnd million) 744,788 526,825

average monthly salary (vnd million) 11.2 8.9

average monthly income (vnd million) 11.4 9.3

some human resource indicators huMan resourCe ManageMent strategy

implementation of human resource information system (hris):

in 2012, maritime bank successfully implemented hris. accordingly, human resource operations were facilitated, becoming smoother, more timely and accurate. in addition, manual operations were minimized, thus, enabling flexibility in processing work and implementing human resource policies and solutions.

Human Resource Training and developmentin 2012, maritime bank continuously conducted training programs, among which, the most notice was the implementation of training pyramid for retail banking, succession planning and young leader training programs. professional and continuously renewed teaching methods enabled improvement in training activities, helping develop high quality personnel for sustainable development strategy of maritime bank.

Compensation and Benefitsdespite tough context of finance & banking sector in 2012 with poor revenues, decreased profits, increased npls, compensation & benefit of the bank were maintained at a competitive edge. besides, maritime bank kept paying due attention to employees lives.

in 2012, under msb care program, all maritime bank employees enjoyed comprehensive health insurance. indeed, 6,000 claims by more than 2,000 staff were paid off. competitive income corresponding to work productivity and performance accompanied by compensation & benefits showed recognition and due attention by senior management to maritime bank staff, which is key factor to the development of united, stable and strong maritime bank.

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no achievements and awards awarding organizations

1 vietnam banking reputation awards 2011media tenor group, vietnam report jsc and vietnamnet press

2 vietnam Excellent brand 2012vietnam Economic times magazine and trade promotion department (ministry of trade and industry)

3 top 3 nominees for best new card launch awardcommittee of mastercard hall of fame awards for asEan

4Emulation flag for taking a lead in 2011 Emulation campaign of banking industry as per decision no 1102/q-nhnn dated may, 28th, 2012

the governor of the state bank of vietnam

5chief information officer of maritime bank was awarded with cio asEan award 2012

international data group vietnam (idg vietnam) and cEo&cio club.

6 top 100 sustainable vietnamese brands 2012 vietnam union of science and technology associations

7head of legal & compliance board at maritime bank was awarded with community lawyer award 2012

ministry of justice and vietnam law newspaper

8 straight - through - processing - stp award 2011 wells fargo bank one of top u.s banks

9outstanding bank in corporate customer rating system award 2012

the state bank of vietnam and credit information center (cic)

10 vietnam outstanding banking award 2012 idg

11 top 5 Enterpises with impressive logos 2012 intellectual propety association of hcm city (ipa-hcmc)

12 most satisfactory service Enterpriseassociation of high-quality vietnamese product Enterprises, saigon marketing newspaper and center of business studies and assistance (bsa)

13Excellent member on secondary government bond market 2012

hanoi stock Exchange (hnX)

14 2nd best market maker contribution award 2012 vietnam bond market association (vbma)

15 shining compassionate heart 2012vietnam red cross association and humanitarian television programme vietnam television (vtv)

awards

2011- 2012 Awards


april 2012 - on april, 11th, 2012, maritime bank opened binh tan transaction office.- on april, 16th, 2012, maritime bank opened ban co transaction office.- on april, 18th, 2012, maritime bank saigon officially opened its new office.- on april, 18th and 20th, 2012, maritime bank opened and operated yoko and phu cuong transaction office. - on april, 22nd, 2012, maritime bank sponsored a workshop on macro stabilization, economic restructuring solution seeking for enterprises organized by productivitiy training institute (pti).

May 2013on may, 30th, 2012, maritime bank and vid group cooperated with phu yen provincial standing committee in organizing a launching ceremony for childrens action month, 2012 themed light up phu yen childrens dreams. at the event, senior management of the two units presented 40 similing tommorow scholarships to children in special need.

June 2012on june, 22nd, 2012, maritime bank officially operated phan dinh phung transaction office.

July 2012- maritime bank received document no 7095/btc-tchq from the ministry of finance on permitting maritime bank to serve as one of four pilot agents to refund vat of goods bought by foreigners in vietnam and taken with them when they exit vietnam from gateway of noi bai or tan son nhat international airport.- on july, 4th, 2012, maritime bank and prudential vietnam signed a memorandum of understanding for bancassurance.

august 2012- since august, 1st, 2012, bao viet insurance corporation and maritime bank have further expanded their cooperation through the development of private house insurance product.- on august, 2nd, 2012, maritime bank officially opened and operated nguyen van troi transaction office.- from august, 1st to 3rd, 2012, maritime bank accompanied the 4th international festival of vietnams traditional martial arts 2012 as a diamond sponsor.

January 2012- on januray, 5th, 2012, maritime bank held a meeting to report the state bank of vietnam on the implementation of the project minimum requirements for risk management and use of kondor+ for risk management.

february 2012- on february, 10th, 2012, maritime bank opened and operated bac giang branch. - on february, 21st, 2012, maritime bank opened the 1st transaction office in quang nam province maritime bank quang nam branch.

- the state bank of vietnam officially assigned maritime bank credit growth target of 17% in 2012. accordingly, maritime bank was among top banks assigned with the highest credit growth rate in the year. - on february, 27th, 2012, in hanoi, maritime bank successfully held 20th annual general meeting.

March 2012- on march, 3rd, 2012, maritime bank held a meeting to review 2011 business performance and set forth 2012 action plan. - on march, 21st, 2012, maritime bank opened and operated maritime bank kien giang.

- on august, 16th, 2012, maritime bank officially opened and operated tan thuan transaction office.

september 2012on september, 18th, 2012, maritime bank officially opened and operated le dai hanh transaction office.

october 2012- on october, 9th, 2012, maritime bank and general department of vietnam customs signed a memorandum of understanding (mou) on state budget collection and import/ export duty guarantee. - on october, 31st, 2012, maritime bank piloted import/ export duty collection service for enterprises at 4 branches in hanoi.

november 2012 on november, 29th, 2012, maritime bank officially opened new maritime bank tan thanh transaction office.

december 2012:- on december, 11th, 2012, maritime bank officially opened new office of smE hcmc hub.- on december, 14th, 2012, at grand palace convention center, intellectual property association of hcmc held a forum on what to do for vietnamese brands to take firm stand and recognized enterprises with impressive logos in 2012. maritime bank was honorably among top 5 enterprises with the most impressive logos in 2012 and the sole enterprise from banking sector to be awarded.- on december, 21st, 2012, maritime bank officially opened new an suong transaction office.

outstanding events


To: Shareholders ofVietnam Maritime Commercial Joint Stock Bank

we have audited the consolidated financial statements of vietnam maritime commercial joint stock bank (the bank) and its subsidiary which comprise the consolidated balance sheet as at 31 december 2012, the consolidated income statement and the consolidated cash flow statement for the fiscal year then ended and the notes thereto.

the preparation and presentation of these consolidated financial statements are the responsibility of the banks board of management. our responsibility is to express an opinion on these consolidated financial statements based on our audit.

Basis of opinionwe conducted our audit in accordance with vietnamese standards on auditing. those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. an audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. an audit also includes assessing the accounting principles used and significant estimates made by the banks management, as well as evaluating the overall presentation of the consolidated financial statements. we believe that our audit provides a reasonable basis for our opinion.

opinionin our opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of the bank and its subsidiary as at 31 december 2012 and of its consolidated results of operations and the consolidated cash flows for the year then ended in accordance with the vietnamese accounting standards and system for credit institutions and comply with other relevant financial and accounting regulations stipulated by the state bank of vietnam.

independent auditors report Consolidated BalanCe sheet as at 31 december 2012

Notes 31/12/2012VNDm

31/12/2011VNDm

assets

Cash, gold and gemstones 5 987,535 1,220,867

Balances with the state Bank of vietnam (the sBv) 6 4,499,702 964,132

placement with and loans to other banks 7 28,985,403 28,761,657

placements with other banks 7.1 17,955,227 28,477,581

loans to other banks 7.2 11,084,589 290,000

provision for credit losses of loans to other banks 7.2 (54,413) (5,924)

trading securities 8 57,270 50,691

trading securities 93,201 89,186

provision for impairment of trading securities (35,931) (38,495)

derivative instruments and other financial assets 9 58,325 74,103

loans and advances to customers 28,193,028 37,388,434

loans and advances to customers 10 28,943,630 37,752,939

provision for credit losses of loans to customers 11.1 (750,602) (364,505)

investment securities 12 30,237,353 34,087,715

available-for-sale securities 30,388,907 34,123,344

held-to-maturity securities - -

provision for impairment of investment securities (151,554) (35,629)

long-term investments 13 2,103,488 1,754,772

investments in joint ventures - -

other long-term investments 2,109,273 1,754,772

provision for impairment of long-term investments (5,785) -

fixed assets 14 900,846 724,903

tangible fixed assets 14.1 355,951 241,739

Cost 527,937 350,373

Accumulated depreciation (171,986) (108,634)

financial lease assets 14.2 296,438 303,083

Cost 312,780 312,780

Accumulated depreciation (16,342) (9,697)

intangible fixed assets 14.3 248,457 180,081

Cost 308,511 219,593

Accumulated amortization (60,054) (39,512)

investment properties 15 1,023,789 1,076,725

cost 1,061,315 1,092,413

accumulated amortization (37,526) (15,688)

other assets 16 12,876,637 8,270,999

receivables 9,011,234 2,962,891

interest and fee receivables 3,670,346 3,070,797

receivables from the state budget 25,924 -

other assets 311,002 2,257,491

provision for impairment of other assets (141,869) (20,180)

total assets 109,923,376 114,374,998

52 AnnuAl RepoRt

finAnciAl stAtement And inteRpRetAtions

53AnnuAl RepoRt



31/12/2011VNDm

liaBilities

Borrowings from the government and the sBv 17 5,329,623 10,116,221

due to banks 18 30,234,984 22,830,507

deposits from other banks 18.1 17,615,920 20,350,698

borrowings from other banks 18.2 12,619,064 2,479,809

due to customers 19 59,586,516 62,294,523

debts issued and other borrowed funds exposed to risks 20 145,363 394,048

valuable papers issued 21 2,295,002 7,178,500

other liabilities 22 3,241,857 2,061,318

interest and fee payables 1,438,049 1,296,142

tax payables 23 - 301,474

other payables 22 1,778,470 432,353

provision for contingent liabilities and off- balance sheet

commitments

11.2 25,338 31,349

total liaBilities 100,833,345 104,875,117

owners equity

Capital and reserves

Capital 24 8,352,692 8,400,607

chartered capital 8,000,000 8,000,000

fixed assets purchase reserve 607 607

share premium 400,000 400,000

treasury shares (47,915) -

reserves 24 467,511 410,670

retained earnings 24 269,828 688,604

total owners equity 9,090,031 9,499,881

total liaBilities, owners equity 109,923,376 114,374,998

off-BalanCe sheet iteMs


31/12/2011VNDm

Contingent liabilities and commitments

credit guarantees 1,809,425 7,920,846

letters of credit 892,547 1,223,616

less: margin deposits (268,147) (2,041,288)

39 2,433,825 7,103,174

Consolidated BalanCe sheet (continued) as at 31 december 2012 Consolidated BalanCe sheet (continued) as at 31 december 2012

ha noi, vietnam

20 March 2013

54 AnnuAl RepoRt


55AnnuAl RepoRt


ha noi, vietnam

20 March 2013

Notes 2012

VNDm

2011

VNDm

interest and similar income 27 11,927,357 14,078,653

interest and similar expenses 28 (9,917,431) (12,521,177)

net interest and similar income 2,009,926 1,557,476

fees and commission income 171,870 440,193

fees and commission expenses (132,209) (96,442)

net gain from fees and commission income 29 39,661 343,751

net gain from foreign currencies trading 30 87,982 41,904

net gain/(loss) from securities trading 31 1,351 (35,017)

net gain/(loss) from securities investment 32 98,515 (29,308)

income from other operating activities 530,222 829,332

Expenses from other operating activities (285,535) (417,270)

net gain/(loss) from other operating activities 33 244,687 412,062

share of profit in associates, joint ventures and dividend

income 34 137,392 121,610

total opErating incomE 2,619,514 2,412,478

payroll and other staff costs (814,362) (578,456)

depreciation and amortization charges 14,15,35 (127,322) (69,076)

other general operating expenses (913,642) (608,372)

total opErating EXpEnsEs 35 (1,855,326) (1,255,904)

profit before provision for credit losses 764,188 1,156,574

provision for credit losses of loans to other banks 7.2 (48,489) (5,924)

provision for credit losses of loans to customers and off-

balance-sheet commitments 11 (562,530) (237,052)

reversal of provision for credit losses during the year 102,223 122,997

profit Before tax 255,392 1,036,595

current corporate income tax 23.1 (28,978) (239,255)

deferred corporate income tax 23.2 - -

Corporate income tax expense (28,978) (239,255)

profit after tax 226,414 797,340

Basic earnings per share (vnd) 25 284 1,202

Notes2012

VNDm2011

VNDm

Cash flow froM operating aCtivities

interest and similar income receipts 11,327,808 12,561,487

interest and similar expense payments (9,775,522) (12,046,563)

fees and commission income receipts 39,660 343,751

net gain/loss from securities, gold and foreign currencies trading 301,209 13,358

other operating income 525,231 792,169

other operating expense (797,788) (713,412)

recovery from bad debts previously written-off 3,780 36,335

payments to employees and suppliers (1,211,763) (923,521)

payments of corporate income tax in the year 23.1 (295,606) (319,335)

net cash flow from operating profit before changes in operating assets and

working capital 117,009 (255,731)

Changes in operating assets 2,757,509 156,402

increase in placements with and loans to banks (6,369,710) (4,190,130)

(increase)/decrease in securities trading 4,362,191 (5,026,071)

(increase)/decrease in derivative financial instruments and other financial assets 15,778 (74,103)

(increase)/decrease in loans and advances to customers 8,809,309 (5,923,404)

decrease in provision for loan losses and provision for impairment of

investment securities & long-term investments (80,221) (62,357)

other (increase)/decrease in assets (3,979,838) 15,432,467

Changes in operating liabilities (3,931,870) (4,289,091)

decrease in borrowings from the government and the sbv (4,786,598) (1,716,952)

increase/(decrease) in due to other banks 7,404,477 (10,528,356)

increase/(decrease) in due to customer (including the state treasury) (2,708,008) 13,667,815

decrease in valuable papers issued (except for long-term valuable papers issued

disclosed in financing activities) (4,883,498) (5,016,821)

decrease in debts issued and other borrowed funds exposed to risks (248,685) (877,096)

decrease in derivative financial instruments and other financial liabilities - (78,869)

increase in other liabilities 1,322,909 286,235

utilization of reserves in the year 24 (32,467) (25,047)

net cash flows from operating activities (1,057,352) (4,388,420)

Cash flow froM investing aCtivities

purchase of fixed assets 14 (287,048) (147,766)

proceeds from disposal of fixed assets 1,213 829

purchase of investment property (5,135) (1,029,933)

additional equity investments in joint ventures, associates and other

investment 13 (348,715) (1,221,190)

dividend receipts from long-term investments 34 137,392 121,610

net cash flows from investing activities (502,293) (2,276,450)

Consolidated Cash flow stateMent for the year ended 31 december 2012 Consolidated inCoMe stateMent as at 31 december 2012

56 AnnuAl RepoRt


57AnnuAl RepoRt


Notes2012

VNDm2011

VNDm

Cash flow froM finanCing aCtivities

increase in chartered capital and share premium - 2,400,000

dividends paid to shareholders 26 (555,906) (224,021)

purchase of treasury shares (47,915) -

net cash flows from financing activities (603,821) 2,175,979

net (decrease)/increase in cash and cash equivalents (2,163,466) (4,488,891)

Cash and cash equivalents at the beginning of the year 36 21,935,457 26,424,348

Cash and cash equivalents at the end of the year 36 19,771,991 21,935,457

1. Corporate inforMation

vietnam maritime commercial joint stock bank (herein referred to as the bank or maritime bank or msb) is a commercial joint stock bank incorporated and registered in the socialist republic of vietnam.

estaBlishMent and operation

the bank was established on 8 june 1991 under operation licence no. 0001/nh-gp by the state bank of vietnam for operating duration of 25 years. the operating duration was increased to 99 years in accordance with decision no.719/qd-nhnn dated on 7 july 2003 of the governor of the state bank of vietnam.

the banks principle activities are to provide banking services including receiving short, medium and long-term deposits from organizations and individuals; making short, medium and long-term loans and advances to organizations and individuals based on the nature and capability of the banks sources of capital; foreign exchange transactions, international trade financial services, discounting of commercial papers, bonds and other valuable papers, assets management and providing other banking services allowed by the state bank of vietnam.

Chartered Capital

the actual chartered capital as at 31 december 2012 is vndm 8,000,000 (as at 31 december 2011: vndm 8,000,000).

loCations and BranCh networK

the head office of the bank is located at no. 88 lang ha street, hanoi. as at 31 december 2012, the bank has one (1) operation center, forty four (44) branches and one hundred and seventy one (171) transaction offices.

suBsidiary

as at 31 december 2012, the bank has one (01) subsidiary as follows:

No Name Operation License No IndustryCharter

capital

Percentage of MSBs ownership

1 maritime bank asset management company

decision 1066/2008/qd-hdqt dated on 28 november 2008

asset managem

MaritimeBank Eng

Documents

Transcript of MaritimeBank Eng