Annual Report 2014

INDEX
Introduction
04
Introduction to Techcombank
Techcombank at-a-Glance
04
06
Operations Review
09
Chairmans Statement
Executive Directors Message
Key Performance Indicators
Retail Banking
Business Banking
Wholesale Banking
Treasury & Financial Markets
Investment Banking
10
13
14
18
24
28
30
32
People and Community
35
People Development
Rewards and Recognition
Corporate Social Responsibility
36
40
44
47
48
50
53
54
56
58
60
61
62
64
67
68
72
75
77
78
81
82
84
154
155
156
Special Features
Information Technology & Operations
E-Banking
Corporate Governance
Corporate Governance Framework
Board of Directors
BOD Standing Committee
Supervisory Board
Nomination & Remuneration Committee
Audit and Risk Committee
Board of Management
Board of Management Responsibilities
Risk Management
Compliance Management
Financial Statement
Independent Auditors Report
Consolidated Balance Sheet
Consolidated Statement of Income
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Shareholders Information
Corporate Information
Branch Network
With on-going investment in resources, establishment

of a modern banking governance system and advanced
technology platform, we have created solid grounds
for robust development of Techcombank, aiming at
becoming the Best Bank and the Leading Enterprise in
Vietnam.
With the advantages of in-depth market understanding, customer orientation, and leading in the adoption
of international best practices, Techcombank is proud of its over twenty years of development with continuous
innovations, offering the best financial solutions to customers of all segments. Together with a highly capable and
experienced management team comprising of local and international banking experts, we have steadily enhanced
our strengths, retained sustainable growth, and are ready for the next breakthrough in the years to come.
Who we are
Introduction to
Techcombank
Vietnam Technological and Commercial Joint Stock

Bank, commonly known as Techcombank, was
founded in 1993 with the capital of VND 20 billion.
Since then, Techcombank has evolved to be one
of the top joint stock commercial banks in Vietnam
with Total Equity of VND 14,986 billion, Total
Assets of VND 175,902 billion. Up to 31/12/2014,
Techcombank has developed a widespread
distribution network of 312 branches and 1,231
ATMs throughout 63 provinces across the country,
using the latest banking technology, adopting
international best practices and being able to reach
every targeted customer segments. The human
resources have been gradually enhanced in both
quantitative and qualitative terms. Total workforce
in the year 2014 stood at 7,242 employees, who
are trained professionals and are striving to achieve
each and every banks target.
Our Aspiration
Based on our strength of market understanding,

technology foundation, financial stability, and
high quality human resources, together with more
than 20 years of experience and innovation, we
aim at an ambitious target: becoming the Best
Bank and the Leading Enterprise in Vietnam. Our
mission is to offer the best financial solutions
and services to our customers to create an ideal
working environment for our employees, and bring
substantial benefits to our investors, who have
confidence in our prospects. Our enthusiasm and
aspiration of accomplishing the strategic target
have been reflected in every aspect of the Bank,
which makes us unique and distinct.
Techcombank Annual Report 2014
What We Do
In order to achieve our mission, we mainly focus

in three customer segments: affluent and mass
affluent customers, small and medium enterprises
and transaction banking clients. These three core
businesses are the priority for all divisions within the
Bank, including business and support functions, to
develop and distribute premium financial products
and services that satisfy customers needs. Proud
to serve over 48.7 thousand enterprises and 3.7
millions individual customers in the year 2014, we
are confident that through continuous innovation in
all aspects of our business and with the introduction
of an increasing number of innovative products and
services, we will be able to achieve our goal in the
near future.
Towards Tomorrow
With the ambition of having a sustainable business

growth, we have set out a development plan based
on our vision and long-term business strategy. We
believe that staying dynamic and having superior
action plans is the key to our successes. Therefore,
our foundation has continuously been strengthened,
providing a firm support for our energetic and
creative business activities. We are convinced
that building and improving the human resources
together with developing the corporate culture are
vital components for our competitiveness. This
helps to boost the productivity and satisfaction
of employees throughout the Bank. Moreover,
investments in the technology systems, application
of international standards in business operations,
and enhancing the banks risk management system
are crucial elements for a robust and sustainable
development. With continuous improvement in our

fundamentals to strongly support our customers
and our business, we aim at a sustainable growth in
both qualitative and quantitative terms, evidenced
by positive business performance and customers
satisfaction toward our quality service, premium
products and innovative financial solutions.
Furthermore, we have always been striving to
form and maintain a close relationship with the
community, bring about benefits to the society, and
especially develop the human and socio-economic
basis in the areas that Techcombank is present.
It is this point of view that enables us to deeply
understand the special needs of each area in order
to design products and services meeting specific
customers needs.
We believe that a with strong foundation of human
resources, systems and technology, combined with
the spirit of innovation and creativity of the business
lines, set in our target of sustainable development,
we are ready for the breakthroughs to help achieve
our vision of becoming the Best Bank and the
Leading Enterprise in Vietnam, adding value to our
customers, investors, and the society.
Techcombank at-a-Glance
Total Assets (VND billion)
200,000
160,000
Total Deposits (VND billion)
180,531
179,934
158,897
150,291
160,000
120,000
120,000
80,000
80,000
40,000
40,000
2010
2011
2012
2013
2014
Total Equity (VND billion)
15,000
10,000
9,389
12,516
13,290
13,920
14,986
60,000
2011
2012
2013
2014
6,000
2,744
1,018
2012
2013
2014
2012
878
2013
1,417
52,928
63,451
68,261
48.28%
Capital adequacy ratio 2014
15.65%
Non-Financial
Number of full-time employees 2014
2010
2011
2012
2013
2014
5,761
Number of branches 2014
5,648
4,719
2010
7,242
312
2011
Number of corporate & SME customers 2014
48,739
Number of individual customers 2014
3,696,683
7,106
6,662
3,000
Cost/Income ratio 2014
70,275
1,500
2014
Return on equity 2014
7.40%
4,500
2,000
2010
0.63%
88,648
2011
Return on asset 2014
80,308
7,500
4,000
131,690
Operating Income (VND billion)
4,221
1,000
2010
119,978
40,000
3,000
80,551
80,000
20,000
5,000
111,462
Total Loans (VND billion)
Profit Before Tax (VND billion)
5,000
2010
Financial
175,902
2012
2013
2014
Number of ATMs 2014
1,231
*The numbers are prepared in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for Credit Institutions stipulated by the State Bank of Vietnam and the relevant statutory
requirements. See the full financial statements starting from page 75.
Annual Report 2014
Operations Review
Chairmans Statement
Valued Shareholders and Partners,
Against the backdrop of economic challenges,
Techcombank has made great strides by
hitting and exceeding most of its key financial and
business targets for 2014.
I wish to attribute this impressive performance to
our shareholders who have been committed to
our vision over all those years. Your unrelenting
support has helped Techcombank to secure strong
and reliable financial resources to pursue its goals.
I would also like to take this opportunity to
convey our gratitude to our business partners,
customers, as well as employees for your trust and
support in building a strong governance structure
and an enabling corporate culture. I believe
that
Techcombank will continue to have your
commitment, support, and cooperation in our
strategic development journey.
As we look back at 2014, we can take great pride
in what we have achieved, in terms of both scale
and quality.
With a clearer vision of where we want to go and
what we want to achieve, our product development
activities and business programs have now become
more focused by better understanding and meeting
customers requirements, giving us a competitive
edge in the market. Our banking services are also
broader, thanks to our advanced technological
strength and effective quality management system
which had helped to enhance service quality,
customers experience and loyalty.
10
In addition to these achievements, Techcombank

has been consolidating its business fundamentals,
applying international practices and standards
in all aspects of risk management, technologies,
operations and human resource development.
Especially, our debt management system
has considerably improved debt quality; the
performance management system and cost
management have also been successfully
implemented, greatly contributing to our banks
bottom line. Besides, we continued our investment
in people development by carrying out the Job
Categorization Project where the career path for
each position and capability training programs
were clearly established. This helps set clearer
directions for capacity development of every
employees, ensuring optimal HR preparation to
support the Banks growth in the years ahead.
Another highlight last year was the importance
attached to promoting corporate culture activities
which helped foster employees engagement
and encourage them to embrace and behave
in accordance with the Banks core values that
underpin sustainable growth.
With our tireless efforts in doing the right things in
2014, we achieved encouraging results with profit
before tax at VND 1,417 billion, ROA and ROE
at 0.63% and 7.40% respectively, which were a
significant increase over the previous year.
The Way Forward
In 2015, Techcombank will continue to pursue its
business development strategy with particular
emphasis on two aspects: superior product

development capability and best service quality
supported by advanced technology, helping
improve business performance, acquire and retain
more customers.
Moreover, we will continue to invest in our people,
performance management and corporate culture,
which bring us competitive advantages and enable
Techcombank to become the best bank in Vietnam
and expand its footprint to the regional market.
I firmly believe that with our strong determination,
outstanding capabilities and appropriate business
direction, Techcombank will become even stronger
and more successful in 2015 and beyond.
Ho Hung Anh
Chairman
Executive Directors Message

Dear Valued Shareholders and Partners,
customer per staff, etc.
The Year 2014 still witnessed challenges in

macro economy with some slight recovery in
economic activities. Banking industry is continuing
unprecedented structural changes, banks and
other credit institutions are struggling to boost
lending, weighted down by a still high ratio of bad
debts, trying to meet more demanding expectations
of customers.
In the last year, a new risk approach has been

introduced, with clear ownership of risk related
issues being assigned to Risk functions and
business lines. New risk approach is built up
based on detailed understanding of customers,
and reflecting respective level of risk into riskbased pricing model. The Bank credit turn-around
time is also significantly improved thanks to
clearer demarcation of roles and responsibility,
thus pushing forwards operational excellence and
positioning Techcombank amongst the best banks
with customer satisfaction ratio. Notably, collection
processes have been restructured and improved,
contributing greatly to the Bank bottom line.
In that challenging environment, Techcombank has

managed to achieve and improve some important
financial indicators. Particularly, the Bank Profit
Before Tax attained VND 1,417 billion, exceeding
by 20% of initial budgeted plan. This achievement
is thanks to various efforts, from steady revenue
growth and strict expense management, rigorous
risk management, and implementation of some
strategic initiatives.
The Banks Total Operating Income has grown from
VND 5,648 billion in 2013 to VND 7,106 billion in
2014, claiming a growth of 26%, based on assets
growth for 11%, as well as improvement of Net
Interest Margin from 3.20% to 3.61% and finally
supported by fee income contribution to the Total
Operating Income from 13% in 2013 to 15.8% in
2014. The growth is the result of continuous effort
to meet customer demands and requirements
through updated approach for banking product
development and substantial changes of overall
banks competitiveness. The Bank also enhanced
strong expense management and bank wide
productivity increasing thus harnessed significant
improvements in Cost to Income ratio from 59.4%
to 48.3%. Especially, sales productivity indicators
have been introduced since the beginning of the
year and keenly monitored throughout the year,
showing significant leap of sales productivity by the
measures of a new disbursements and outstanding
loan portfolio per staff, deposit per staff, number of
The Bank has introduced a new concept of strategy

and performance management system integration,
with focused Key Result Area, clear objectives
and goals in order to provide better alignment of
all activities with the Banks strategy, focus on
effectiveness and efficiency for each staff. The Bank
is also continuing to invest in technology to build
up internal momentum for future growth. Some of
the new technology based services we brought to
market last year include innovative mobile banking
apps integrated with social network, supply chain
management, collateral valuation software and
some others.
corporate culture, to tighten cooperation between

headquarter, divisions, regions and motivate
expected behavior among all employees, through
creative initiatives like Lead to Win, We Reds and
some others.
Moving forwards 2015, the Bank will focus on
improvements on execution capability and people
development. The Bank will build on from initial
success of 2014, with ongoing improvement of all
operational and financial indicators. I am confident
that the Banks team will continue to work hard to
meet expectations of our customers, partners and
shareholders, as well as communities, in which we
are operating.
Murat Yuldashev
Executive Director
The success of the Techcombank is dependent on

our people. We believe that enhancing the peoples
capability and engagement is the key for the best
future. That is why the Bank also keen on with
the execution of Job Categorization project, an
initiative to provide clearer career map to each of
the Bank staff, supplementing them with necessary
hard and soft skills along their progression either
vertically to managerial positions, or horizontally to
senior expert levels. Last year also witnessed the
special efforts to improve and maintain functional
13
Key Performance Indicators

Focus of sustainable growth
Executive Summary
With the continued recovery in the economy,

Techcombanks performance has shown significant
improvement in most financial indicators.
u Profit before tax increased by 61.4% yoy to VND

1,417 billion, exceeding the budget of VND 1,181
billion by 20%
The improved financial performance was due to

continuous improvement in asset quality, solid
business performance, robust cost control and
prudent risk management practices. Some of the key
performance highlights are as follows:
u Capital adequacy ratio increased from 14.03% in

2013 to a robust of 15.65% in 2014
u Total customer deposits increased by 9.8% yoy,

reaching VND 131,690 billion
u Total customer loans increased by 14.3 % yoy,
reaching VND 80,308 billion
u Operating income increased by 26% yoy to VND
7,106 billion
u Net interest margin increased from 3.2% to 3.6%
u With prudent risk management practices and
balance sheet de-risking initiatives, the Bank made
a provision of VND 2,258 billion for non-performing
loan that recorded an increase of 60% compared
to 2013. This higher provision expense was mainly
due to the additional bad debt provision on debts
sold to State-owned Vietnam Asset Management
Corporation (VAMC) and more conservative
collateral valuation in 2014. Up to 31/12/2014, the
Bank already sold up to over VND 3.8 trillion to
VAMC
u Costs continue to be carefully managed. A number
of cost savings initiatives were rolled out during the
year. As a result, operating expenses for the year
stood at VND 3,431 billion; a modest increase of
2% over the previous year. This was significantly
below the budget
Bank Performance
Operating income reached VND 7,106 billion, a

significant increase by 26% yoy.
Net interest income increased by 33% yoy to VND
5,773 billion. This was achieved by an effective
management of the Banks balance sheet and close
monitoring of lending and deposit rates during the
year. Net interest margin improved from 3.2% to 3.6%
in 2014.
Net fee income grew over 52.5% yoy reaching
VND 1,123 billion in 2014. It was mainly due to
the significant contribution from the Banks newly
established Investment Banking business. Fee income
from other core banking products continued to grow.
Trading and investment income reached VND 203
billion, compared with VND 162 billion in 2013.
Operating expenses increased marginally by 2% yoy
to VND 3,431 billion, an equivalent of VND 75 billion.
During the year, the Bank continued with its focused
approach towards cost management through a
number of cost saving initiatives. This increased cost
awareness and improved cost disciplines across
the organization. Whilst keeping the total operating
expenses flat, the Bank continued to invest in human
resources, where the cost of staff increased by 17%
to VND 1,627 billion, equivalent of VND 241 billion.
Cost to Income ratio decreased significantly by
11.1% to 48.3% in 2014 from 59.4% in 2013. With a
conservative approach in de-risking the balance sheet
and managing non-performing loans, the Banks loan

loss provision increased to VND 2,258 billion, or 60%
increase over last year.
The Bank continues to actively manage and work to
recover its bad debts. During 2014, the Bank sold VND
1,738 billion worth of bad debts to VAMC. As of end
2014, it has sold a total of VND 3,807 billion to VAMC.
Along with the strict and efficient risk management in
controlling existing problem loans as well as preventing
new problem loans, the Banks NPL ratio was reduced
to 2.38% at the end of 2014, a significant improvement
from 3.65% as at the end of previous year.
Profit before tax reached VND 1,417 billion for the
year 2014, a strong increase of 61.4% yoy. Earning
per share increased from VND 742 to VND 1,245 per
share. Return on Assets and Return on Equity ratios
reached 0.63% and 7.4%, compared to 0.39% and
4.77% in 2013, respectively.
Income Structure (VND billion)
8,000
8
83
120
7,000
543
424
6,000
1,150
362
565
5,298
(754)
5,000
414
178
736
1,123
5,116
4,336
5,773
(175)
(136)
(16)
4,000
3,000
2,000
1,000
0
(1,000)
(2,000)
2011
Net interest income
2012
Net fee income
2013
Trading income
2014
Investment income
Other income
15
Balance Sheet
With continued improvement in customer service

quality, broader product range, and a larger
distribution network of 312 branches and 1231
ATMs, both the Banks lending and deposit
balances grew strongly in 2014. Whilst customer
loans increased by 14.3% yoy to VND 80,308 billion,
customer deposits were up by 9.8% yoy to VND
131,690 billion. Loan-to-Deposit ratio improved
from 58.6% in 2013 to 61% in 2014.
The banks Capital adequacy ratio improved by
1.62% to 15.65% as at the end of 2014, significantly
higher than the 9% regulatory minimum requirement
set by the State Bank of Vietnam.
Customer Loans
As of the end of 2014, customer loans reached

VND 80,308 billion, up 14.3% yoy. This reflected
the gradual recovery in the Vietnam economy. The
year 2014 marked a robust increase in the Banks
lending to key sectors including warehousing,
transportation, communications and construction
industries. Telecommunications and construction
lending balances grew 271% yoy and 46% yoy,
respectively in 2014, representing 19% of the Banks
total lending portfolio, up from 13% in 2013.
Investment securities
Total investment securities portfolio stood at VND

55,902 billion at the end of 2014, representing an
increase of 12% yoy. In 2014, the Bank invested
more in Government Securities to improve the credit
quality and liquidity of its portfolio. The investment
in Government Securities accounted for over 53%
of the portfolio.
Customer Deposits
During the year 2014, customer deposits grew 9.8%

yoy to VND 131,690 billion, of which, retail deposits
increased by 11.8% yoy and corporate deposits
increased by 5.8% yoy.
16
Loan by Industry (VND billion)
80,000
70,000
60,000
50,000
40,000
30,000
24,465
31,683
2,114
5,097
874
5,174
22,993
20,000
28,996
35,388
744
2,763
8,591
24,141
12,528
24,607
26,620
10,000
0
Agriculture
6,390
8,783
2011
2012
Trade and Manufacturing
and Forestry
5,324
2013
Construction
and Realestate
2014
Transportation
5,022
Individual and Other
Deposit by segment (VND billion)
160,000
19,471
140,000
39,170
120,000
15,225
48,133
100,000
88,336
80,000
77,056
57,636
60,000
79,005
40,000
40,973
20,000
0
2011
Economic Entitties
43,354
34,406
31,012
2012
Individuals
2013
From other credit institutions
2014
Retail Banking
Continuous investment in product development, process optimization and technology innovation to

be more effective in fulfilling customer needs.
Business Strategy 2014
Customer first the first of the banks five

core values remained the key focus of Personal
Financial Services Division in the year 2014. Our
commitment of enhancing customer convenience
has been reflected in the following key areas:
u Customer understanding: define customer
segments based on our deep understanding
of customers needs, enabling us to customize
products and services offered to each segment
u Product development: improve and develop a
comprehensive portfolio in which customers
can find the best and most innovative products
u Service quality improvement: deliver high
quality services to customers through
enhancing branch service models and electronic
transaction channels
u Process optimisation: reduce turnaround time
in both customer-facing processes and internal
operational processes for better customer
convenience
Performance in 2014
Thanks to the expansion of our customer base, the

improvement in lending and the development of
vendor network, 2014 was a period of growth for
Retail banking:
u TOI grew by
2,688 billion
21%
yoy,
reaching
VND
u The priority customer base grew by 20%

compared with last year
u The volume of loans reached VND 32,807 billion,
in which March 2014 marked the record-setting
month in terms of origination volume with VND
3,722 billion new loans
u Lending portfolio reached VND 24,824 billion as
of Dec 31, 2014 which translated to a 8% year
on year growth
u Deposit portfolio increased 11% compared
to 2013
Lending Porforlio (VND billion)
Total Operating Income (VND billion)

3,000
30,000
2,668
2,500
Deposit Porforlio (VND billion)
25,000
2,210
1,889
24,824
21,462
20,000
80,000
1,500
15,000
60,000
1,000
10,000
40,000
500
5,000
20,000
2,000
2012
2013
2014
2012
2013
87,889
100,000
22,782
2014
74,885
2012
78,988
2013
2014
New loan disbursementsl of 2014 (VND billion)

4,500
4.500
3,722
4,000
4.000
3,500
3,000
2,827
2,500
3,140
2,886
Auto loans
2,575 2,505
2,574
1,848
2,000
2,404
2,531
2,539
3,225
1,500
1.500
1,000
500
0
Jan
The quality of loan portfolio in 2014 continued

to improve thanks to reduction of overdue
payments. In addition, key processes for main
products have been significantly improved to
reduce turnaround time as well as to enhance
the productivity of the sales force. For example,
in 2014, a special loan confirmation process for
government employees has been introduced,
20
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
fulfilling the need of a significant part of the

segment.
In 2014, technological innovation continued
to be our focus in order to create competitive
advantages for Techcombank. Acknowledging
the fact that many of the Banks customers use
smartphones, Techcombank invested significant
Oct
Nov
Dec
efforts in the launch of F@st Mobile application

which allowed customers to perform their
banking transactions anytime and anywhere via
their mobile phone. This is a concrete evident
of our commitment to provide bestinclass
products and services to our valued customers.
Year 2014 was a period of high growth in auto

loans. About 3,131 loans with total value of VND
1,187 billion were provided, marking a growth of
245% compared to last year.
This significant achievement could be attributed to
the continuous partnership development. During
the year, deepened cooperation with some key
partners such as HTC, THACO and Mitsubishi
generated special joint programs for customers
and increased the attractiveness of Techcombank
product range as a result.
Product line development still remains one of the
Banks top priorities. Apart from developing and
launching new offers in 2014, Techcombank paid
serious attention to improve existing programs
in order to deliver consistently positive benefits
to customer.
Auto loan portforlio movements (VND billion)

1,257
1,350
1,080
1,200
1,050
900
750
600
493
474
459
467
Jan
Feb
Mar
Apr
450
300
150
0
497
552
635
May
Jun
Jul
707
Aug
805
Sep
942
Oct
Nov
Dec
New disbursement of Auto loan

600
800
500
250
400
200
300
150
200
100
100
50
Jan
Feb
Mar
Apr
Number of new LDs
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Loan disbursements (VND billion)
21
Mortgage loans
In 2014, the mortgage loan portfolio reached VND

9,596 billion. During the year, 4,458 loans were
originated with value of VND 6,385 billion.
Techcombank and one of the largest real estate

developers in Vietnam. A large share of mortgage
has been sold through Techcombank distribution
system.
One of the key highlights in this field was the

enhancement of strategic partnership between
New disbursements of Mortgage loan
900
800
700
700
500
500
600
600
400
400
300
300
200
100
0
200
Jan
Feb
Mar
Apr
May
Number of new LDs
Cards
In 2014, the credit card portfolio demonstrated

sustainable growth, increasing by more than
69%. More than 89,284 credit cards were issued,
up 63% compared to last year. Thanks to the
considerable growth of card issuance, the total
number of cards at the end of 2014 reached
147,719 cards, translating to a 92% growth rate
during the 2012 2014 period.
In terms of Visa Credit transaction value, TCB
was the second largest bank among domestic
banks in Vietnam with an increase of 31% of
total Visa credit transaction value compared to
Jun
Jul
Aug
Sep
Oct
Nov
Dec
100
0
Loan disbursements (VND billion)
last year. In terms of Visa Debit transaction value,

we were also the second largest bank with total
number of Visa Debit cards rising by 79% in the
period 2012 - 2014.
In 2014, the Bank started to offer an innovative
product the Dream Card with the cash
withdrawal limit increasing to 100% of the credit
limit, and became the first bank in the market to
offer such kind of card.
Priority banking
In 2014, we witnessed a stable growth of our

Priority segment. The success of well-designed
products and improving service quality resulted
in the growth of customer base as well as the
usage of products and solutions. Priority banking
customers of Techcombank were the first in the
market to be offered highly sophisticated structured
products and corporate bond investment product
designed by our subsidiary - Techcom Securities.
The capability of the investment banking team was
also significantly enhanced so that our premium
services could get better. The total number of
Priority relationship managers reached 146 RMs,
up 8% compared
to last year.
2014 also witnessed a strong growth in the
current account usage with net interest income
from account average balance rising by 55% in
2014 compared to 2013. Deposit balance also
improved by nearly 80% thanks to the endless
efforts in product and service improvement.
Our added - value products were well-received
by customers with 15% of customers using
With continuous effort in Retail banking

development, Techcombank proudly received 3
international awards in 2014: Best Retail Bank in
Vietnam, Best Internet Bank Vietnam from Global
Banking & Finance Review and Vietnam Retail
Bank of the Year from Asian Banking and Finance.
Moreover, in July 2014 Techcombank earned Top
10 Best Vietnamese goods excellent service
2014 award for its Visa card and auto loan. The
program was organized by Vietnam Standards and
Consumers Association in collaboration with The
Consumers Newspaper (Nguoi Tieu Dung).
platform. In the coming year, the priority of

Retail banking is to develop alternative sales
channels and to optimize sales network through
the introduction of customer segment-oriented
strategy. This will allow us to even better fit to the
needs and expectations of each segment in terms
of products and services. Through these initiatives,
we hope to fulfil our principal objective of building
long-term customer relationships and increase
customer loyalty.
Objectives and Direction in 2015
In 2015, we will continue to focus on customer

services and pursue higher customer satisfaction
through significant investment in product
development, process optimization and technology
Deposit EOP balance (VND bllion)

54,643
55,000
50,000
50,149
50,932
45,000
40,000
2012
2013
2014
Number of Priority RM (Relationship Manager)

146
150
100
91
135
50
0
22
Techcombank Internet Banking service and

57% customers using Techcombank debit cards
and credit cards. Number of Priority customers
increased by over 20%, reaching more than 53,000
customers, a remarkable figure in 2014.
2012
2013
2014
23
Business Banking
Continuous innovation in its operation and management to refine its products to meet financial
demands of enterprises, supported by in-depth research on business features and market knowledge
of the employees
The Business Banking division during the year

2014 witnessed significant achievements resulting
from innovations in strategic thinking and business
activities targeted at SME and business customers.
Aiming at bringing financial services tailored to
actual business demands of enterprises of different
industries and segments, and ensuring secured,
sustainable growth for both customers and the
Bank, Techcombank adopted initiatives which
are highly profitable for our customers during the
previous year:
u Restructuring of functions to optimize human
resource management and improve peoples
quality: perceiving that human resource is the
key success factor, we put great weight on
developing Business Finance & Management,
Policy, Strategy and Marketing teams for
customers and establishing the team of Product
managers with profound market knowledge
u Development of products and policies
suitable for each business field to ensure the
competitiveness with various outstanding
benefits: over twenty products were developed
during the year 2014 including thirteen industryspecific ones, focusing on major industries
such as Pharmaceutical & Medical Supplies,
Plastic, Petroleum, Animal Feed, Food & Drinks
industries; two general products targeting
enterprises basic needs namely Superfast
Loans within 12 hours and Auto Loans for
Enterprises; eight financing solutions for supply
chains businesses, working in close partnership
with some largest enterprises in Vietnam
u Further fine-tuning of processes and policies

to ensure secured business operations of both
customers as well as the Bank and to reduce
turn-around-time, including business models
by customer segments, pricing model for more
effective management and competitiveness,
product development process Product Tree
to ensure the highest product adaptability
to market conditions, process on debt
management and post-disbursement control,
policy on financial and non-financial benefits for
both loyal and regular customers
u Utilisation of management tools to develop
a professional sales force with good
understanding of customers: Standard sales
models for management of sales operation
and productivity, Marketing models for the
sales force to understand and provide sound
advice to customers, 360-degree tool for multilevel business efficiency assessment, Training
model to develop a professional sales force
the Red force
u Implementation of direct business support
activities through pricing campaigns with total
disbursement value of approximately VND 8,000
billion and corporate financial advisory services
in association with nation-wide departments,
industries, societies and NGOs
Achievements
With Accountability as a core value,

Techcombank has taken bold steps in strategic
innovation and operations to continue improving
the quality of its products and services, bringing
customers satisfaction, enhancing the Banks
value and benefits accruing to its shareholders.
Over the previous year, our Business Banking
achieved impressive indicators that exceeded
business targets:
u VND 450 billion in profit before tax (an increase
of 251% vs budget)
u VND 1,262 billion in Total Operating Income (a
rise of 15% vs budget)
u Net Interest income increased by 18% vs
budget, and
u Net Fee income increased by 16% vs budget
In addition, efficient cost control (cost to

income ratio improved to 62%) and overdue
debt control contributed greatly to Business
Banking achievements.
These achievements resulted from our continuous
innovation in operations and management to
refine our products to meet financial demands
of enterprises, supported by in-depth research
on business features and market knowledge of
the employees. Besides competitive product
development, Techcombank also refined its
governance model to minimise turnaround time
and optimise processes, especially those on
credit approval, disbursement and collateral
management. Credit approval processes for each
customer segment has been completed to facilitate
customers access to loans. Pricing models
have also been simplified, allowing customers
to select the interest rate suitable to their actual
business requirement.
With the spirit of supporting enterprises to grow,

Techcombank offered not only financial benefits
but also comprehensive care to customers by
cooperating with government agencies at many
levels to provide customers with the information
on macro economy, policies, and business law
to support their informed borrowing decisions.
During the year, Techcombank collaborated with
Ho Chi Minh City Department of Industry and
Trade, several district Peoples Committees in Ho
Chi Minh, the Peoples Committees of Ha Nam and
Quang Ninh provinces, Vietnam Plastic Association
(VPA), and SME Association in Northern provinces
in the programmes of price stabilisation, SMEs and
small trader support, and preferential lending for
exporters. These activities are highly appreciated
by enterprises and have been publicised by
media agencies.
With the core value

customer
first
reflected in every
activity, we firmly
believe to contribute
to the Banks journey
of achieving its vision
and mission to be the
Best Bank and the
Leading Enterprise
in Vietnam.
The way forward
Along with the Banks common target of providing

best in class products and services to customers,
we have set the targets of increasing our
competitiveness and market share, strengthening
our staffs capability with the objective of continued
improvement in the year 2015.
u Strategy: increase our competitiveness in
providing high-quality financing products to
customers through industry/customer-specific
approaches and selection of eligible branches
to serve different segments.
u Market: improve market research to know your
customers better, develop suitable products,
establish effective marketing models, and carry
out relevant programs and policies to encourage
customers to use Techcombank as their primary
bank for transactions.
26
u Products & Services: increase credit in

major industries to ensure secured business
operations and implement lending policies
based on cash flow and customers credibility,
focusing on supply chain financing solutions.
u Resources & Organization: frequently review
and train the sales force to improve service
quality and build a service standard for
customers of different segments for branches.
develop the mechanism of partial, pre- and

conditional approvals.
With the core value customer first reflected in
every activity, we firmly believe to contribute to the
Banks journey of achieving its vision and mission
to be the Best Bank and the Leading Enterprise in
Vietnam.
u Operational system: reduce turnaround time

by removing unnecessary steps, streamlining
administrative procedures, and developing a
separate credit process for VIP customers with
independent measurement of its results.
u Risk management: improve credit policy
regarding collateral appraisal and differentiated
treatments for new and current customers;
27
Wholesale Banking
Focus on tailoring finiancial solutions to meet each customers specific demand
With the ambition to be the best and complete

financial solution provider in the market,
Techcombank has been on track in its roadmap
of strengthening Wholesale Banking business
(WB) in line with the Banks Development Strategy
until 2020. In 2015, we aims to develop a stronger
organizational structure of the function, leverage
existing customer relationships, expand core
customer base, develop a suitable system for
managing customers by segments, and tailor
credit policies to different customer segments for
optimal return and efficiency. The results in 2014
have proved that the management teams decision
to create a robust WB on par with other players
in Asia is a sound strategic move, which will help
Techcombank become the Best Bank in Vietnam.
The Way Forward
In the following years, WB will focus on the

following customer segments:
u Large corporate (LC)
u Middle market (MM)
u Multinational companies/ foreign direct
investments (MNC/FDI)
u Financial institutions/ non-bank financial
institutions (FI and NBFI)
The customer segments are further divided by
geographical regions and clusters for better

account planning and account management
purposes. Clearly defined customer segments and
geographical regions will help align WB and the
Banks development strategies.
Key Achievements
Going forward, WB will continue to:
During the year, Techcombank finalised the WB

model under which relationship managers (RM)
would take greater care of corporate customers in
close cooperation. The RMs advised, proposed,
designed and implemented solutions and tailored
products to each corporate customer as part of the
Banks comprehensive solution.
u Tailor products and services to each customer

segment; establish dedicated functions in the
Divisions organisational structure to serve
various customer segments, allowing optimal
customer value propositions
u Develop Transaction Banking solutions such
as Cash Management, Supply Chain Finance,
International Payment/Finance on modern
platforms
u Effectively incorporate the solutions of Treasury
& Financial Markets Division and Investment
Banking to develop effective financial solutions
for customers
u Cross-sell with other business divisions
In spite of considerable economic difficulties and

yet fragile recovery of the financial market in 2014,
Techcombank remained persistent with its WB
directions and achieved important successes.
One of our focuses had been the investment in and

finalisation of modern platforms for Transaction
Banking, including (1) Online Commercial
Banking, (2) Supply Chain Financing, and (3) Cash
Management, which would enable the delivery of
such products and services as cash collection,
trade finance and supply chain finance. As a
result, the bank could offer structured products
with high added value and modern business tools
to customers. It is expected that the projects will
further improve the Banks bottom line in 2015.
During the year, WB products have been packaged
effectively with Investment Bankings and Markets
solutions in order to provide more financial choices
to customers. We successfully issued corporate
bonds for some large enterprises and provided
financial products which help them mitigate the
risks related to pricing, exchange rates, and
interest rates.
Techcombank carried out many activities in order
to strengthen customers relationship such as:
u Participation in Exchange of Information and

Support for Korean Companies Looking for
Business and Investment Opportunities in
Vietnam program following the signing of a
memorandum with the Foreign Investment
Agency of Ministry of Planning and Investment
u Comprehensive partnerships with some leading
enterprises in sectors including real estate
development, consumption, airline, auto and
assembly production
u Many other meaningful programs under the
Loyalty Program
The Year Ahead
In 2015, we will continue pursuing WBs strategy

which is based on five pillars:
1) Customer-centric mindset
2) Performance management and productivity
improvement
3) Sound management of risk appetites backed
with suitable pricing policy
4) Strong cross-selling and sales promotion
5) People and corporate culture development
recruited, trained, and developed professional

RMs who can offer customers practical advice
about premium and complex packages consisting
of products such as capital structure optimization,
structured finance and hedging, which are typically
of high demand by wholesale banking customers.
In addition, high-calibre RMs will be capable of
managing relationships with large corporations
which operate in various fields and have demand for
diverse financial services. Back-office employees
are also becoming more specialised and skilled to
meet customers demands.
Transaction
Banking
solution,
one
of
Techcombanks three business pillars, will be
the key to our growth in 2015. It is expected that
well-executed trade finance, cash management,
and supply chain finance will enable us to make
a breakthrough and differentiate our solution
packages for corporate customers.
WB business will also help connect other
Techcombanks units with customers to increase
cross-selling, promote sales, improve customer
service quality, and leverage the strengths of
Techcombank of being a leading retail bank in
Vietnam, helping to fulfill the Banks target of being
the best complete financial service provider in the
market.
Accordingly, customers will always be first and

central in WBs model. Solution packages will
be carefully designed to meet all of customers
demands. Sales policy, pricing policy, and risk
appetites will be tailored to each customer segment.
People and corporate culture development will be
the key to our development. Techcombank has
29
Treasury & Financial Markets

Continuously improve the operational processes, business practices and especially business culture
to better meet customers demand
With Innovation as one of our core values, we provide outstanding financial products to customers and
optimize returns from opportunities in the financial markets. Last year, we made great strides in increasing
our range and scale of operations to be comparable with those of international banks, diversifying
products to meet customers demands on both conventional and sophisticated products in areas such as
foreign exchange, currencies, bonds, commodities, structured products and derivatives. This contributed
to Techcombanks remarkable success in the domestic and offshore financial markets.
The Way Forward
We have structured the Division into Currency &

Commodities, Rates Trading, Sales & Structuring,
and Credit Sales & Trading with the aim of
becoming the market leader in treasury and
financial markets by:
u Developing and organizing professional and
highly efficient business activities on par with
regional and international standards
u Conducting market research and translating
market intelligence into business opportunities
and improved bottom line
u Developing outstanding and professional
solutions, meeting demands of target
sophisticated customers
u Managing risks effectively with early warning
system and minimizing the unexpected
Key Achievements
Guided by a consistent business direction, we have

embarked on many important plans and initiatives
in 2014, including the Markets Transformation
Project with the main aim of enhancing the
Divisions operations to become the market
leader in Vietnam and stand equal to regional and
international standards. To realize this ambition, we
have engaged two foreign experts with extensive
experience in regional and international financial
markets to undertake specific tasks such as building
capacity for the sales force, raising staff capabilities
in market risk identification and management,
strengthening support functions including finance,
operations, and risk management to assist the
Division in its rapid development. Accordingly,
operational processes, business practices and
especially business culture have been changed
substantially for the better.
Recognizing information technology as a key
driver in creating a breakthrough for the Bank
in general and Treasury & Financial Markets
Division in particular, we continued to make huge
investment in technology in 2014. Apart from

modern computer screens, international standard
electronic information and trading systems such
as Bloomberg, Reuters, Debtwire, we as the first
mover have applied Mysis trading system to
conduct and manage transactions from customer
contact to operation support, helping enhance the
efficiency of transactions, positions management,
risk management, data management and reporting.
The above business revamping and support
initiatives have helped us develop new products to
meet the ever-growing demands of customers. In
2014, Techcombank processed multiple petroleum
hedging transactions for customers as well as
interest rate swaps and cross-currency swaps
for large local counterparties. These derivative
instruments have provided Techcombanks
customers and counterparties with unprecedented
market risk management solutions in Vietnam
financial market. Besides, Techcombank was
the first bank in Vietnam to launch bond-linked
investment products to corporate and individual
customers.
Techcombank is also a market maker in introducing
bond-linked, option-linked and other structured
products for efficient portfolio management.
Last year, we formed sales teams with financial
institutions to expand activities as well as increase
transactions with financial institutions at home and
abroad.
Embracing the core value Customers first
through tailored and suitable products, in 2014,
we won awards and certificates from reputable
domestic and foreign organizations, and continued
to improve Techcombanks position in the Vietnam
financial market. Regarding foreign exchange
market share, Techcombank ranked the third after
two state-owned giants. In government bond
trading, Techcombank is the second best bank in
secondary market as assessed by the Ministry of
Finance a major step forward compared to our
10th ranking back in 2013.
The Year Ahead
In 2015, Techcombank will focus on promoting

treasury and markets trading activities with
customers to raise fee income/total revenue ratio,
increasing market share and the ranking of its
trading activities. It will also be developing new
markets and products in order to provide customers
and counterparties with optimal choices. Treasury
& Financial Markets Division will continue to work
closely with other business divisions of the Bank
to expand to new markets and develop more new
products, making Techcombank the provider of
outstanding and packaged financial solutions to
both corporate and individual customers.
In parallel with revamping trading activities, the
Markets Transformation Project continues to further
improve processes and reports and enhance
employees performance and capabilities. The
seven-year strategy including human resources
and compensation policy will be finalized and
aligned with the Banks strategy. In 2015, we
begin the implementation phase of Mysis with user
training and integration to the Banks system. With
this successful implementation, Techcombank
will be one of a few banks in Vietnam equipped
with professional trading system of international
standards.
Encouraged by what has been achieved,
Techcombanks Treasury and Financial Markets
Division is proud to contribute to the overall
strength of the Bank to fulfil the mission of providing
customers with superior financial products and
realize our vision of becoming the Best Bank and
the Leading Enterprise in Vietnam.
31
Investment Banking
Being the martket first mover with Customer First and Innovation as our core values, we are
proud to develop and distribute investment products and investment banking services to meet the
ever increasing demand of customers.
Undertaking a mission to provide comprehensive
and packaged financial services to customers,
Techcombank is one of the market leaders in the
development and provision of new services and
products that meet the increasing demand of
customers in Vietnams growing financial market
and catch up with the general global trend.
During the year 2014, Techcombank focused
on comprehensive business development and
leveraging on the existing customer base by
offering them with quality and innovative products
and services. As a result, the year 2014 marked
a significant step forward in investments and
investment banking products that Techcombank
offered to large corporate and priority banking
customers through its two subsidiaries: Techcom
Securities and Techcom Capital.
The Way Forward
Investment banking is quite common in developed

countries worldwide but is fairly new in Vietnam.
Recognising the increasing demand for such
services as underwriting, origination and advisory,
M&A, and financial advisory to large corporations,
which will become standard in the market in
near future, the Bank has established and
strengthened the Investment Banking team of
Techcom Securities to bring professional service
as well as become a trusted advisor to corporate
customers. Our customers include large and
leading enterprises in industries such as real estate
development, consumption, airlines, auto assembly
and production. Moreover, the development of
structured and investment-linked products has
been identified as the key to provide individual
customers with new savings experience besides
the conventional commercial banking products and
services. We have introduced diverse and flexible

products such as bond-linked deposits, optionlinked deposits, and open-ended funds tailored to
the needs of each individual customer.
in the local capital and financial market and the

extensive customer base and counterparties from
Techcombank our Holding Company.
Core competencies
Building on the profound experience and in-depth

knowledge of the capital market in Vietnam,
Investment Banking of Techcom Securities in the
year 2014 was successful in providing origination
and advisory service for many large enterprises
in Vietnam with total bond issuance value of over
VND 20,000 billion. Revenue from underwriting,
origination and advisory services helped bring
Techcom Securities to the forefront of the market
amongst many securities companies in Vietnam,
substantially outweighing its nearest peer with
50% market share. Several typical deals include
advising and supporting the issuance of VND 6,800
billion of local currency-denominated corporate
bonds for a large company in resources sector in
March 2014 and VND 3,000 billion of local currency
corporate bonds for a leading group in real estate
development in September 2014. These were
considered hallmark deals that turned Techcom
Securities into one of the most active bond
originators in the primary and secondary market
in Vietnam. Furthermore, Techcom Securities has
showcased our M&A advisory capability when
acting as the lead advisor for the successful
acquisition of a finance company by Techcombank.
Investment Banking target customer segments

have been clearly identified by the Banks
leadership: corporate customers with annual
revenue of over VND 1,000 billion and individual
customers with financial wealth of over VND 1
billion. This requires a strong and professional
team with in-depth knowledge of customers
needs as well as analytical skill to offer
customers with optimal financial solutions. With
over 40 specialists with significant experience
in investment, finance, accounting, banking,
insurance, tax and law in leading international and
local financial institutions, especially a winning
team of corporate advisors in Vietnamese market,
we are well-positioned in providing professional,
effective and timely services to customers. In
addition, we were also successful in building
product development and analyst teams of
highly-experienced professionals in tax advisory,
corporate finance analysis and investment
management; most of whom are certified with
Chartered Financial Analyst (CFA) and Chartered
Certified Accountants (ACCA) qualifications. This
allows us to be the first mover in launching new
products to the market and delivering quality due
diligence reports and comprehensive industry
assessments in Vietnam. Techcom Securities
deals are also strictly legally protected through
our effective collaboration with leading law firms
and our in-house legal team. Last but not least,
we are professional in distributing investment
banking products, leveraging our experience
Achievements
Techcombanks strong priority customer base

and brand-name have also set the stage for
Investment Banking to develop and launch
flexible bond-linked product In Q3, 2014 as
the first structured product in the market. The
product allows individual customers to access the
corporate bond investment channel at acceptable
risk levels. Distribution via Techcombank Priority

Banking channel, on the one hand, not only
allows existing customers to use outstanding
and advanced products in the market, but it also
gives Techcombank the opportunity to acquire
new customers and let customers familiarise
themselves with various investment products in the
market, thereby attracting increasing numbers of
individual customers to the corporate bond market.
2014 was also an important milestone when
Techcom Securities increased its owners equity to
VND 1,200 billion and charter capital to VND 1,000
billion to become one of the ten biggest securities
companies in Vietnam. The increase of chartered
capital and greater contribution of owners equity
reflects the trust that Techcombank places in the
development prospect of Investment Banking
as well as the firm commitment of the Banks
leadership to the improvement and provision of
comprehensive and outstanding financial services
to its valued customers.
prepared by our team of professional analysts of

Techcom Securities.
In 2015, Techcombank will not only optimise
processes and operations by replacing manual
work with specialised systems but will also
strengthen origination and advisory capabilities
and promote structured products for individual
customers through its two subsidiaries Techcom
Securities and Techcom Capital.
Furthermore, the Bank will continue to expand
its distribution network to set the stage for
further development strategies related to this
operation,
helping
realise
Techcombanks
ambition of becoming the Best Bank and Leading
Enterprise in Vietnam.
The year ahead
2015 is expected to be a promising year for securities

brokerage and investment business of Techcom
Securities, with the launching of online securities
product known as Online TCInvest. This investment
tool is targeted at professional securities investors
adopting international standards and advanced
technology platform which has been invested
and developed by Techcom Securities since early
2014. Using Online TCInvest, customers can
trade in most financial products including stocks,
bonds, funds certificates and structured products
in a convenient and quick manner anytime and
anywhere via website and mobile phone. Moreover,
investors are provided with timely and flexible
financial support and objective analysis reports
33
Annual Report 2014
People and Community
People Development
Focus on reward and recognition of

outstanding individuals and teams
Creating the best working environment for talent acquisition and retention while enhancing the
people capability are the keys to Techcombanks readiness for further development.
Properly recognise and reward employees according

to their performance and contribution to create a
positive, fair, competitive working environment and
devise personal development plans for individuals is
one of Techcombanks ongoing focus.
160,000
45
140,000
40
120,000
35
100,000
30
80,000
25
20
60,000
15
40,000
Recognising the importance of human resources

(HR) to Techcombanks success, we continue
pursuing our people development strategy to create
the best working environment based on the following
pillars: (1) talent acquisition and retention, (2) training
and development, and (3) reward and recognition.
We have developed a three-phase roadmap with
clear objectives to execute the strategy:
retain talents in line with the Banks directions and
u Phase 1: Develop Policy and System Foundation

u Phase 2: Build Capability and Change Mindset
u Phase 3: Refine and Redesign
Improve peoples capability with

well-designed, professional training
programmes
In 2014, the Bank continued implementing

Phase 3 of the Strategy, i.e. Refine and Redesign
by adopting various solutions to improve the
effectiveness of HR policies and processes,
especially in training and recruitment. We have
also developed and implemented strategic
projects to improve the capability and mindset
of the organization and individuals and have
achieved notable results in terms of people
development throughout the year.

Develop a working environment which

attracts talent and unlocks potentials
The policies on recruitment and benefits that

Techcombank has developed and refined helped
improve the staffing quality significantly. We
took advantage of many recruitment channels
to acquire high-calibre, experienced officers
and senior bankers. In particular, we developed
and successfully ran a Large-scale Recruitment
Program for Sales and Distribution Division and
Talent Referral for Rewards Programme for the
whole Bank.
In addition, the policy on promotion and benefits
were reviewed and revised to better acquire and
the reality.
These actions helped produce positive results. In

particular, promotions were up by 30%; recruitment
of experienced, skilled talents increased by 31% from
2013; most of our employees have at least a graduate
degree and 5% have Masters or doctorate degrees.
In 2014, Techcombank boosted the training budget

by 79% year-on-year in a continued effort to innovate
and improve training activities, and e-learning
was given high priority. E-learning programmes
and courses employed diverse methods and
content. E-learning clearly demonstrated its many
significant advantages such as optimal training
cost and flexible schedules.
In 2014, we continued our well-run, annual reward

and recognition programs such as High Performer, in
which employees with A1 rating for two consecutive
years earned the Banks special recognition and
worthy rewards in addition to their annual bonus.
In addition, the Bank rolled out a point accumulation
system to recognize employees achievements and
contributions to their teams joint achievements
while ensuring the openness and fairness of the
evaluation process. During the year, 277 teams and
106 individuals received Silver, Gold, and Platinum
prizes at division level, inter-division level, and
bank-wide level with VND 10 billion total budget of
which VND 3 billion was earmarked for operational
initiatives.
10
20,000
0
2012
2013
2014
Access number
16,661
67,056
87,686
Total training hours

delivered via e-learning
15,723
91,852
144,407
14
21
17
41
24
Average training hours/ person

Number of courses
The Development of Techcombank E-learning
The Bank continued implementing and enhancing

training projects for key areas such as credit, risk
management, and leadership. Among the projects,
some reputable programmes and customised
ones are Omega, a risk management capacity
building project, and Techcomlead, a leadership
skill training program, which employed suitable,
effective content and methods.
Moreover, for the purpose of supporting business
lines, Red Force RM Warrior Training project
was introduced to improve the capability of the
sales force. Future Leader and Next Generation
Officer were two talent development programmes
launched in the year to improve peoples capability
comprehensively and develop successors for the
Banks long-term strategy.
37
Implement two key projects for

professional
development
and
performance management
2014 marked the set up and implementation of our
two major projects in the pursuit of strengthening
HR management tools and assessment system,
including Job Categorization (Job Cat) and Key
Result Areas-Based Performance Management
System (PMS).
While the Job Cat was a new project launched in
2014 to standardize competency requirements,
develop a career roadmap for each job category,
and improve training effectiveness on a bankwide basis, the PMS, for its proven advantages, is
hoped to effectively replace the existing system.
The system consists of processes and tools which
are designed to improve employees capability and
behaviour to achieve the organizations objectives.

Under the system, waterfall model is used in the
strategic planning process to align individuals
goals with those of the organization. Furthermore,
performance assessment is conducted on a
continual and comprehensive basis by different
levels of managers.
With commitment of the importance of corporate

culture toward the sustainable development of
the Bank, we organised and promoted a wide
range of meaningful activities to develop a friendly,
balanced, and engaging working environment in
which cooperation and support spirit are promoted.
Such programs include:
enjoy their hobby and achieve work life balance. These

activities also significantly contributed to the business
development, promote collaboration and increased
employees engagement (among 95% of employees
participated in the Employee Engagement Survey, 90%
agreed that the activities served to improve employees
engagement effectively.
Increase employees engagement

and develop a strong, functional
corporate culture to create significant
competitive advantage
u WeLEAD (leaders act as a role model,)
Plan for 2015
In Techcombank, we maintained many superior

health care benefits in order to motivate employees
and increase their engagement. In 2014, the
insurance premium under TechcomCare programme
continued from previous years was up 120%.
u WeACT (enhance cooperation and collaboration

between the Head Office and branches)
u WeGOOD (develop a two-way thanking culture;
promote, spread, and build trust in good deeds)
Besides,
youth
club
and
trade
union
activities, which many employees actively and
enthusiastically participate in, helped them to
In 2015, people development is the theme of the year. We

will implement many large projects to significantly develop
human resources to ensure that each employee is able to do
his/her best, has a clear career roadmap, and is rewarded
and recognised properly. said Mr. Ho Hung Anh, the Board
Chairman.
To realise the leaderships strategic directions on human
resources development, Techcombank will continue
pursuing the successful journey that commenced in 2014
with the following three core tasks:
u Continue improving HR policies and processes,
especially on recruitment, promotion, training, and
development
u Cooperate in the execution of Corporate Culture
Development project; continue implementing and
finalising two strategic projects, i.e. Job Cat and PMS; to
assess and develop individuals capability
u Develop and strengthen people management skills of
managers to improve the overall management capability
The implementation of these key projects is hoped to
contribute to the current and future sustainable and
strong GROWTH of the Bank by developing HIGHQUALITY human resources.
38
39
Rewards and Recognition

Proudly received a total of 23 domestic and international awards in 2014 including The Best Bank in Vietnam,
The Best Retail Bank in Vietnam, The Best Cash Management Bank in Vietnam and The Best Trade Finance
Bank in Vietnam, Techcombank commits to provide the best products and services to each and every
customer segment
Best Cash Management in Vietnam 2013
Best Issuing Bank in Vietnam 2013
Best Trade Finance bank in VN 2014
Trade Finance Bank in Vietnam 2013
Strong Brand in Vietnam 2013

Trust & Value (Vietnam Airlines Techcombank Visa &
Auto Loan product)
The Best Trade Finance Bank in Vietnam 2014

The Leading Counterparty Bank in Vietnam 2014
Vietnam Domestic Foreign Exchange Bank of the Year

Vietnam Domestic Trade Finance Bank of the Year
Domestic Retail Bank of the Year
Best Bank in Vietnam
Best Retail Bank in Vietnam 2014

Best Commercial Bank Vietnam 2014
Best Internet Bank Vietnam 2014
Best Cash Management Bank in Vietnam
Best Customer Service Bank 2014
40
41
Good Products Perfect Services 2014
Most Preferred Internet Banking in Vietnam

Most Interested Bank in Vietnam
Most Favourite Brand ASEAN

ASEAN Quality Products/ Services ( Auto Loan Product)
Vietnam Value
43
Corporate Social Responsibility

Techcombanks corporate social responsibility (CSR) programmes not only present the Bank as
a responsible corporate citizen, but also demonstrate the sense of sharing by Techcombanks
employees toward the society.
As a financial service provider, we are well aware

of the importance of the contribution to the
sustainable development of the community. Over
the years, we have implemented various CSR
programmes and considered social responsibility
as one of our priorities in the development strategy.
During the year 2014, Techcombank continued
to contribute more than VND 120 billion to CSR
activities, concentrating on three areas, education,
environment and community health care, aiming at
a brighter future of the young generation, a better
health care to the community, and a healthier
living environment.
Specific programmes
In education, Techcombank continued to donate

VND 1.8 billion to the Red Scarf to School
Programme, awarded nearly 1,300 scholarships
and provided essential school supplies to unlucky
pupils at hundred schools in thirty five provinces/
cities across the country. With the message Every
child has the right to schooling, the programme
has become Techcombanks annual flagship CSR
event since the launch in 2011. After 3 years in
operation, Red Scarf to School has awarded
almost 5,000 scholarships to students in forty four
provinces nationwide, with the total estimated
value of VND 5.5 billion.
With the red scarf as its logo, the Programme
has assisted many unlucky children across the
country in their wish for schooling and has become
the icon of Techcombanks corporate social

responsibility. Red Scarf to School also involved
the participation of all employees of the Bank.
Apart from financial contributions, our caring
Techcomers had also been active in searching
for and nominating unlucky pupils with excellent
academic performance to receive scholarships.
In addition, in the year 2014, we spent VND 3.1
billion to finance the construction of kindergartens
in Hong Su Phi district, Ha Giang province.
Techcombank also spent VND 1.2 billion to finance
the construction of Nghia Lam kindergartens and
La Ha High school facility in Quang Ngai.
In the field of public health care, in 2014,
Techcombank donated VND 10 billion to Da
Nang Cancer Hospital to build its infrastructure
and upgrade its facilities to provide medical
examination and treatment services to people in
the Central Highland, especially to improve the
eligibility for treatment of cancer patients with
limited financial means. In addition, we also made
donations to the Cancer Patient Bright Future
Fund or to Nghe An General Friendship Hospital
Beyond the figures
Techcombanks resounding business performance

in the year 2014 represented the effort of the Banks
leadership and over 7,200 employees. Apart from
the contribution to the corporate development,
we were proud to play an active role in specific
community programmes. These programmes
highlighted the engagement of all employees
across the Bank not only through financial support
but also in their charitable spirit.
On that CSR journey, we were happy to see the

joys and hopes of teachers and students in the
mountainous areas when receiving funding to
build their kindergartens, the confidence and
determination of those young kids upon the
receipt of new and modern class rooms, the deep
emotion of patients and the determination of
doctors upon receiving medical equipment and
machines. It is these touching experiences that
inspire our efforts in contributing toward a better
community because we understand that the Bank
can only grow sustainably when the society we
serve develops sustainably.
During the year 2014, we also supported many

social welfare programmes in provinces such as
Hau Giang, Ha Nam, Nghe An, Vinh Phuc, Quang
Ngai and Quang Ninh, with the total amount of
over VND 78 billion.
45
Annual Report 2014
Special Features
Information Technology and Operations
Committed to strong and continuous investment in Technology as Techcombanks competitive edge in

the market
Information Technology continues to be a vital

enabler to reach the banks target of becoming
the best provider of financial services in Vietnam.
We strongly believe that continuous investment in
technology is essential in providing retail banking,
business banking, wholesale banking and global
market customers with Techcombanks complete
financial solutions and leading banking services.
As a result, a series of initiatives were undertaken
in 2014 by Operations and Technology Division in
order to offer innovative and competitive products
coupled with speed and simplicity of services that
are supported by advanced analytical and risk
management capabilities.
Strategic Investment for Continuous

Growth and Transformation
In line with our core strategy, more than 40

projects were initiated in 2014 to ensure abroad
spectrum of products and services available to
cover all targeted customer segments: Affluent/
Mass Affluent, SME and transaction banking
customers. Approximately half of these projects
were successfully launched in 2014 and the
remaining would continue in 2015.
For personal financial service business, a series
of innovative solutions such as Smart Phone
Banking based Mobile Wallet, Mobivi Virtual Card,
JCB Card & Mobile POS and Tablet Based Priority
Mobile Sales application were launched.
In order to provide additional convenience to our
valued customers, Smart Phone Banking based
Mobile Wallet was introduced, allowing users to
make payments through a preferred social network
in a very secure and convenient way without the
hassle of carrying cash or a traditional wallet.
Recipients could then cash out the money or use
it for small value purchases through an extensive

merchant network. In the coming year, Smart
Phone Banking will be further integrated with
transfer, deposit, payment and card functionalities,
showing our commitment of continuous innovation
and customer orientation. Furthermore, in the
pursuit of extra convenience for customers,
other card-based solutions were launched. For
example, the co-branded Techcombank Mobivi
card provides a convenience in online shopping at
attractive prices to payroll customers; JCB Cards
was added to the various international cards
currently offered by the bank.
Towards more specialized banking needs of
Wholesale and Business Banking Customers,
solutions for Supply Chain Financing platform was
implemented in 2014. Supply Chain Financing
provides advanced payable and receivable
financing products and also helps enterprises
better manage their working capital and daily
cash flow requirements. Moreover, Supply Chain
Financing is complimented by Mobile POS solution
which provides integrated value propositions
for payments across multiple ecosystems and
customer segments (Retail, SME and Transaction
Banking). This solution will significantly simplify
the payment collection by using Smart Phone as
a POS (Point Of Sale) terminal. Besides, export LC
related Trade Finance processes were automated
to improve productivity and turnaround time by
more than 20%.
Understanding that solid support to the sales
force and back office will provide positive effects
in customers satisfaction, we introduced in 2014
a Tablet-based Priority Mobile Sales application
which enabled Relationship Managers to
proactively follow up with Priority customers on
their needs even when they are on the move . It is

a one-stop solution for accessing and following up
on the latest sales leads, monitor sales progress
and have update of the latest sales campaigns. It
also provides executives an online dashboard to
monitor sales performance in real-time. Besides,
the next generation of Data Ware Housing
was deployed with Enterprise Data Model and
specialised Data Marts, which empowered Retail
Banking and Finance users to actively analyse
customer and financial data, thus significantly
enhancing productivity. Enterprise Data Ware
House is a key building block that enables
us to conform to the upcoming compliance
requirements with BASELII regulation, ensuring
the forward-looking nature of each of the banks
implemented solutions. Additionally, Credit Risk
Management Functionalities were also upgraded
with integrated collection workflow between
Branches, Collections Hubs and centralized
Collection Management Unit.
Highly Available Robust Infrastructure
We had standardised, centralised, and consolidated

storage, databases and Email servers to improve
the quality of IT infrastructure services. In 2014,
the availability of critical infrastructure system
continued to increase and reached up to 99.9%.
We also achieved 80% virtualisation of servers.
The use of virtualisation technology in managing
IT infrastructure resources has reduced the
infrastructure investment, increased productivity,
and decreased the time to build IT infrastructure
for projects from 3-6 months to 3-5 working days.
This has shortened the time required to launch
a product and reduced cost of services to our
customers.
Enhanced Security
Information Security Systems like Network

Intrusion Prevention and Database Security
Systems were enhanced to proactively detect
and prevent any malicious attacks, ensuring the
confidentiality, integrity and availability of customer
data processes though various banking channels.
Partnership for Business Success
In 2014 IT functions were realigned with business

lines to improve the collaboration and partnership
and to ensure that IT becomes an integral part of
the business strategy to maximize the business
value from the use of Information Technology.
ITs orientation was changed from technical
focus toward business consultancy and advisory
services. Superior Operational Productivity
Corporate Banking, Credit Process Automation

on
BPM (Business Process Management)
Platform and Implementation of FX-Vision & Gold
Trading platform. Core Banking System will also
be upgraded to support exponential business
growth and the innovation in Branch Teller and
Branch Banking Model. The implementation of
these initiatives will raise the capability of our
employees, strengthen IT strategic functions as
well as maximise IT support to business strategies.
Within Operations and Technology Division,

Operations has maximised the advantages of
IT system and support. The automation rate of
Operations has been improving over time and
is expected to further increase in 2015. This
improved the productivity by more than 20% in
2014, shortened transaction processing time and
achieved agreed service level of the whole division
at 99.15%.
Moreover, with existing strengths and advantages,

Operations and Technology Division commits
to work together with the Banks other business
unity to improve the bank overall credit processes,
increase the automation rate, and achieve credit
turnaround time reduction in 2015 by 20%
compared with 2014.
2015 going forward
In 2015, we will continue on our customer centric

virtual banking journey based on key the principle
of delivering products and services to customers
anytime, anyhow, anywhere through their preferred
banking channel.
We will continue to leverage information technology

to its full potential to empower Techcombanks
banking platform and services as Every Day Bank
of Choice for all the targeted customer segments.
We will integrate views on the entire customer/

bank relationship through MDM (Master Data
Management), CRM (Customer Relationship
Management), advance analytics and inter
connected business processes across channels
and product lines. This will help us to better
understand customers financial needs to better
serve them now and in the future. Bank employees
would be better equipped to handle customers
inquiries and service requests as they would have
a holistic view of customers relationship across
banking channels. Similarly, customers would be
able to initiate the request on one channel and
complete it on other channels at their preference
and convenience.
The other key initiatives that would continue in
2015 includes Treasury System, Enterprise Wide
Collateral and Limits Management Systems,
Profitability and Cost Allocation Model , new Online
49
E-Banking
Continuously develop hi-tech products & services to help customer save time for banks transaction
and have more time for family
With internet users accounting for 40% of the

population in Vietnam, there is a growing demand
for electronic banking (e-banking) services which
provide a benchmark for a banks power and
prospect. Techcombank has been in the forefront to
provide E-banking through a strong technological
infrastructure.
Internet Banking
Recognized as one of the most dynamic bank in

the field, Techcombank has been leveraging its
technological advantages to optimise operations,
enhance service quality, improve processes,
develop new transaction channels, and promote
highly innovative and competitive products.
Among those products, our internet banking is
recognised as a top-notch internet banking service
in the market in terms of convenience, security,
speed and stability. Individual customers now can
easily, reliably and securely conduct almost all
basic current account and savings transactions via
internet using SMS One Time Password or token
key authentication method.
Furthermore, we are one of the first movers in the
market offering superior and versatile payment
functionality to meet the demands for a modern,
convenient and secure payment channel towards
cashless payment. Some of our functions
include prepaid phone account top up, utility
bills payment, insurance premium payment, and
online purchasing. Besides, Techcombank Internet
developed on the Banks Mobile Banking platform.

It was the first product of this type to be introduced
in the local market, which marked another
milestone in online money transfer and payment.
A customer can transfer money to a beneficiary via
some popular social networks such as Facebook
and Google+, or even via a text message, without
knowing the beneficiarys account number. This
innovative product has positively challenged
peoples conventional perception of banking
transactions. Moreover, it is possible to personalise
the transaction by attaching a picture, video clip,

or recording. With such innovations, we hope to
attract the highest number of Mobile Banking users
in the market and stay at the forefront of the mobile
device-based and cashless payment trend.
Given our continuous effort to invest in and boost
cashless payments method such as payment
cards, Internet Banking and Mobile Banking, over
the past years we have received appreciation
form customers and reputable international
organisations. In 2014, Techcombank received

Best Internet Bank 2014 award from Global
Banking & Finance Review and Top 5 for Internet
Banking award from VnExpress.
In 2015, e-banking products and services will be
further improved by offering the most convenient
and suitable features, responding better to
customer demand.
Banking enables customers set up scheduled

payments for automatic payments in the future with
only one time registration.
Better still, cardholders can now manage card
transactions, send support requests, or configure
card features on Techcombanks Internet Banking
instead of going to branches thanks to the
integration of the system.
Given the quality and convenience offer through
Techcombanks Internet Banking, the number of
Internet Banking users increased by 41% with
active users up by 33% in 2014. The average
number of internet banking transactions increased
by 16% and online payment transactions by 32%,
year-on-year.
Mobile Banking
The growth of mobile devices such as smart

phones and tablets has made mobile banking
an emerging preferred transaction channel
for customers. Therefore, Techcombank has
developed a comprehensive and long-term strategy
for offering financial services on mobile devices.
The strategy puts great emphasis on appropriate
platform, functions, and user-friendliness to make
it more appealing to use financial services on
mobile devices.
In November 2014, Techcombank launched Money
Transfer via Social Network product, which was
51
Annual Report 2014
Corporate Governance
General Shareholders
Meeting
BOD Standing
Committee
EXCO
Board of
Supervision
Our corporate governance framework is collectively based on:

u Vietnamese legal system and other regulations related to banking.
u Regulations of the State Bank of Vietnam applicable to Vietnamese Law on Credit Institutions.
BODs
Assistant/
Secretariat
Board of Directors
Audit and Risk

Committee
u A diversified leadership team that represents a combination of local and foreign banking experts.
The Board of Directors is accountable, as authorized by General Shareholders Meeting, for performing its
roles and responsibilities in representing Techcombank. It provides leadership through oversight, review
and guidance whilst setting the strategic direction.
Senior Credit
Committee
Internal
Audit
Nomination and
Remuneration
Committee
CEO
Board of Management
The Board of Directors established Committees to effectively deliver its assigned missions. Committees
are organized to enhance capacity of the BOD, and best promote diversified expertise of the banks senior
leaders.
During 2014, we focused on further developing the coordination of the Board of Management by promoting
their individual strengths for the common purpose of the Bank. The Bank-wide organizational structure
is maintained to support stability operations and businesses while to foster innovation aligned with local
insights and international practices.
Board of
Management
South
ALCO
Regional
Credit
Committee
(North/South)
Credit Risk &
Problem Loan
Management
Committee
Financial
Investment
Committee
Board of
Management
Central
IT Investment
Committee
Representative
Office in the South
Personal
Financial
Services
Division
Business
Banking
Division
Wholesale
Banking
Division
Sales
&
Distribution
Division
Markets
Division
CORM
&
Legal
Division
Representative
Office in the Central
Risk
Management
Division
Finance
&
Strategy
Division
IT
&
Operations
Division
Product
Committee
Human
Resource
Division
Marketing
&
Branding
Division
Corporate
Services
Division
55
Board of Directors
The BOD is the governing body of Techcombank whose members
are elected by the general shareholders meeting, has thefull
right on behalf of Techcombank to decide and exercise rights
and obligations of Techcombank, except those which belong to
the authority of the General Shareholders Meeting.
Mr. Ho Hung Anh
Mr. Nguyen Thieu Quang
Mr. Nguyen Canh Son
Mr. Nguyen Dang Quang
Chairman
Vice Chairman
Vice Chairman
Member
Graduated from Electronics Engineering in

Russia, Mr. Ho Hung Anh joined the executive
management of the Bank in 2004 and has held
various positions in the Board of Directors. He has
been the Chairman of Techcombank BOD since
May 2008.
Graduated from Civil Engineering in Russia,

Mr. Nguyen Thieu Quang joined the executive
management of Techcombank and has held
different positions in the Board of Directors
since 1999. He has been Vice Chairman of
Techcombank BOD since May 2008.
Graduated from Civil Engineering in Russia, Mr.

Nguyen Canh Son has been a member of the
Board of Directors from May 2008 to Mar 2009.
He has been Vice Chairman of Techcombank BOD
since April 2009.
Obtained a PhD in Nuclear Physics and a

Masters degree in financial management in
Russia, Mr. Nguyen Dang Quang joined the
executive management of Techcombank and has
undertaken several positions since 1995. He was
the First Vice Chairman of Techcombank BOD
from May 2008 to April 2014. Since May 2014, he
has been a Member of Techcombank BOD
Mr. Do Tuan Anh
Mr. Lee Boon Huat
Mr. Nguyen Doan Hung
Member
Member
Independent Member
Graduated as a Master of Science in Wealth

Management from Singapore Management
University; Bachelor of Language in Hanoi
University. Mr. Do Tuan Anh has had many years
of experience working in the banking industry
and held many management positions at the
State Bank of Vietnam; Techcombank and other
organizations. He has been a member of the
Techcombank BOD since December 2012 and
Techcombanks Acting CEO since August 2013.
Graduated with a Bachelors Degree in Business

Accounting, from the Western Australian Institute
of Technology (now Curtin University). Mr Lee
Boon Huat has had many years of experience
in the banking industry including the Monetary
Authority of Singapore, HSBC, Canadian
Imperial Bank of Commerce, Chemical Bank,
and Standard Chartered Bank. He was an
independent member of the Techcombank BOD
from December 2012 to April 2014. He has been
a Member of Techcombank BOD since May 2014.
Graduated from Hanoi University and holding

an MSc of Financial Management from London
University, Mr. Nguyen Doan Hung has many
years working in the finance and banking industry
and held different management positions: Head
of Capital Market Development Board the
State Bank of Vietnam, Head of Governor Office
the State Bank of Vietnam, Head of Foreign
Exchange Management Department the State
Bank of Vietnam, Alternate Executive Director
of the World Bank, and Vice Chairman of State
Securities Commission of Vietnam. He has been
an Independent Member of Techcombank BOD
since May 2014
Membership
The BOD consists of 7 members including Chairman, 2 Vice Chairmen, 1 member cum Acting Chief
Executive Officer, 1 independent member, and 2 members. Chairman and Vice Chairmen of the BOD are
elected or removed by the BOD with a majority vote in the form of secret ballot or voting. An office term of
BOD members shall last no more than 5 years.
56
57
BOD Standing Committee

The BOD Standing Committee was established by the BOD to
perform some duties, rights as assigned by/delegated by the BOD.
Membership
Mr. Ho Hung Anh
Mr. Nguyen Canh Son
Chairman
Member
Member
Member

May 2008.


since April 2009.

The BOD Standing Committee consists of 6 members: BOD Chairmen, 2 BOD Vice Chairmen and
some other members.
Detailed information about the members of the BOD Standing Committee is as follows:
58
Mr. Do Tuan Anh
Mr. Lee Boon Huat
Member
Member


from December 2012 to April 2014.He has been
a member of Techcombank BOD since May 2014.
59
Supervisory Board
Nomination &
Remuneration Committee
(NORCO)
The Supervisory Board is a body supervising operations of the

Bank in accordance with legal regulations and Charter of the Bank.
Membership
The Supervisory Board consists of 4 members including Head of the Supervisory Board, where half of the
Board is executive members.
The Nomination & Remuneration Committee (NORCO) was

established by the BOD to perform nomination and remuneration
functions and duties which the BOD assigns and delegates.
Detailed information about the members of the Supervisory Board is as follows:
Membership
There are 5 members in the NORCO.Detailed information on the NORCO members is as follows:
Mr. Hoang Huy Trung
Ms. Nguyen Thu Hien
Head of Supervisory Board
Member
Graduated as a Master of economics in banking

from National Economics University; Bachelor
degree of economics, majoring in banking-finance
at the Academy of Finance. Mr. Hoang Huy Trung
has had many years of experience in the banking
industry and has held various management
positions at the State Bank of Vietnam and
Techcombank. He has been Head of Supervisory
Board and standing member of the Techcombank
Supervisory Board since December 2012.
60
Graduated with a Bachelor degree in Credit

Finance in Russia, Mrs. Nguyen Thu Hien joined
the department of accounting and supervisory at
the Bank in 1999. From April 2010 December
2012 she has served as Head and specialist
member of Techcombank Supervisory Board.
Since December 2012, she has been a member
of Supervisory Board
Mr. Mag Rer Soc Oec

Romauch Hannes
Member
Graduated with a Master Degree in Business
Administration, majoring in Finance, Banking and
Marketing from Klagenfurt University, Mr Mag
Rer Soc Oec Romauch Hanneshas many years
of experience in the fields of banking finance
and held many important management positions
such as: Corporate Banking Unit Carinthia
State Bank; Risk Administration Unit at Carinthia
and Styria Bank; Risk analysis/management/
consulting at Carinthia and Styria Bank; Marketing
Director at Vietnam T&M limited company; and
Deputy Director of CB Richard Ellis Hanoi
Asset Management. He has been member of
the Techcombank Supervisory Board since
December 2012.
Mr. Ho Hung Anh

Chairman
May 2008.
Ms. Bui Thi Hong Mai
Mr. Do Tuan Anh
Mr. Nguyen Canh Son
Member
Member
Member
Member
Member
Graduated with a Bachelor degree in Accounting

and Finance, Bui Thi Hong Mai has many years of
experience in the field of accounting and finance.
From April 2010 to December 2012, she has
been a Specialist Member of the Techcombank
Supervisory Board. Since December 2012, she
has been a member of Supervisory Board.




since April 2009.
61
Audit and Risk Committee

(ARCO)
Audit and Risk Committee (ARCO) was established by the BOD to
perform some nomination and remuneration functions and duties
relating to audit, verification, supervision, and management of
risks of banking operations as assigned by/delegated by the
BOD.
Mr. Ho Hung Anh
Ms. Nguyen Thi Thien Huong
Chairman
Vice Chairman
Standing Member
Member


May 2008.
Graduated with a Bachelors degree in Science,

and a Bachelors degree in Economics, as well
as a Masters in Business Administration, Ms.
Nguyen Thi Thien Huong has years of experience
working at the Bank in different positions such
as Head of Projects and Securities Investment
department, Head of HO Credit Department, and
Deputy General Director. Since July 2009, she
has been a standing ARCO member.

Mr. Lee Boon Huat
Mr. Nguyen Canh Son
Mr. Do Tuan Anh
Member
Member
Member
Member

from December 2012 to April 2014.He has been
a member of Techcombank BOD since May 2014.
Graduated from Hanoi University and holding

an MSc of Financial Management from London
University, Mr. Nguyen Doan Hung has many
years working in the finance and banking industry
and held different management positions: Head
of Capital Market Development Board the
State Bank of Vietnam, Head of Governor Office
the State Bank of Vietnam, Head of Foreign
Exchange Management Department the State
Bank of Vietnam, Alternate Executive Director
of the World Bank, and Vice Chairman of State
Securities Commission of Vietnam. Since May
2014, he has been a member of ARCO

since April 2009.

Membership
The ARCO consists of 8 members. Detailed information on the ARCOs members is a follows:
62
63
Board of Management
The Board of Management is responsible for executing the Banks
development plans and reporting on the performance status for the
best interests of Techcombank.
Mr. Pham Quang Thang
Mr. Phan Thanh Son
Mr. Phung Quang Hung
Mr. Anil Kumar Parimoo
Head of CORM and Legal Division
Head of Sales and Distribution Division
Chief Risk Officer
Graduated with a Masters Degree from Swinburne

Technology University, he held the position of
TCB Chief Accountant; Head of Treasury and
Transactions Management Centre, Deputy Chief
Executive Officer in charge ofFinance, Planning
and Strategy; Head of Commercial Banking
Division; Head of Credit Acceptance Division. He
was appointed to the position of Head of CORM &
Legal from January 2014
Head of Treasury and Financial Markets

Division
Graduated with a Master Degree in Economics
from National Economics University and held
various positions in Global Markets at Standard
Chartered Bank Vietnam, Citibank Vietnam,
Citigroup Global Markets Ltd Hongkong. His
last post was Deputy Chief Executive Officer
at TienPhong Bank before being appointed to
the position of Head of Treasury and Financial
Markets Division in January 2011.
Graduated in Computer Science at Hanoi

Polytechnic University in 1995, Mr. Hung then
completed his Masters Degree in International
Business at Washington State University, United
States, in 2001. In his 19 years of experiences,
he held different positions at a number of
international banks such as Head of IT and
Operations at ABN AMRO Vietnam, Business
Partner at National Australia Bank London,
and was appointed to the position of Head of
Operations and IT Division at Techcombank in
September 2010. Then, he was mobilized and
appointed to the position of Head of Sales and
Distribution Division since November 2014.
Graduated with a Bachelor in Science from

University of Kashmir, holding other Certificates
such as Bank Indonesia Risk Management
Certificate approved by GARP, Certified
Associateship from Indian Institution of Banking
and Finance. He has 24 years of experience
in banking sector spanning across many large
banks such as State Bank of India, ABN AMRO,
Bank Danamon. He was appointed as Chief Risk
Officer in June 2012.
As of 15 Jan 2015
64
Mr. Tun Anh
Mr. Murat Yuldashev
Mr. Vikesh Mirani
Mr. Nguyen Canh Vinh
Mr. Sagyndyk Kussainov
Ms. Pham Vu Minh Dan (Alexis)
Mr. Nguyen Dang Thanh
Ms. Kunsulu Kapbassova
Acting Chief Executive Officer cum Member

of BOD
Executive Director
Group Chief Financial Officer
Head of Wholesale Banking Division
Head of Personal Financial Services Division
Head of Human Resource Management Division
Head of Business Banking Division
Head of Marketing and Branding Division

Graduated with a Master degree of physics

science from Al-Farabi from Almaty Kazakh State
University, Mr. Murat has practiced scientific
research in Academy of Science Kazakhstan
for 10 years, before shifting his career to
securities investments and banking. Completed
special Securities Market Program and Finance
Management, he held various management
positions in investment companies and large
banks in Kazakhstan, CIS countries and Turkey.
His major experience is retail banking. Mr. Murat
has joined Techcombank since August 2013 in the
capacity of Executive Director.
Graduated as Bachelor of Commerce (Honors)

from Maharishi Dayanand Saraswati University
in India, a Chartered Accountant from the Institute
of Chartered Accountants of India and holding
other international certification such as Post
Graduate Honors in End User Computing and
Diploma in Business Leadership. He has over
20 years of experience spanning across several
large banks, including: Emirates NBD, Emirates
Bank International, HSBC, Standard Chartered
Bank and ABN AMRO. He joined Techcombank as
Group Chief Financial Officer in November 2012.
Graduated as Bachelor at Construction University

from National Economic University, Master at
La Trobe University and held the position of
Head of HO Business Centre at Techcombank,
Business Manager of Region 1, Head of Sales
and Distribution Division. He was appointed to
the position of Head of Wholesale Banking since
November 2014
Graduated from Kazakh National Academy

of Construction and Architecture and Kazakh
National Academy of Management, he has 19
years experience in banking industry especially
in retail banking at Kazakhstan, Russia, Ukraine,
Belarus, Georgia, and Armenia; held the position
of President at BTA Ipoteka, and Head of Retail
Sales Division (for CIS) of BTA Bank, was the
honor member of International Academy of
Mortgage and Property in Moscow. He was
appointed as Head of Personal Financial Services
Division at Techcombank in September 2013
Graduated
from
Nanyang
Technological
University in Singapore, Ms. Pham Vu Minh
Dan (Alexis) has over 10 years of working
experience in human resource management at
British American Tobacco (BAT), a multinational
corporation, and has been appointed to various
senior HR roles in Vietnam and the region. Her
latest position at BAT was Regional Head of
Talent, Asia Pacific. She was appointed Head
of Human Resource Management Division at
Techcombank in January 2015.
Graduated from University of Economics Ho

Chi Minh City, he has held various managerial
positions during his 13 years at Sacombank
including Head of Marketing Department, Head
of Human Resource Department, Accounting
Manager, Director of Card Centre, and Deputy
CEO. He joined Techcombank as Business
Director South since May/2012 and was one
member of Standing BOM South since then. He
has been appointed as Head of Business Banking
since October 2013.
Graduated from Kazakh State Academy

of Management and from different training
programmes on financial management of
international training organizations, Ms. Kunsulu
Kapbassova has nearly 20 years of experience
working in finance and banking industry with over
five years in the position of Head of Marketing of
Kazkomertbank the biggest bank in Kazakhstan.
She also held senior managerial positions such as
Vice Chairman, Executive Director, and Head of
Personal Financial Service Division in big banks
and financial institutions in Kazakhstan. She
was appointed Head of Marketing and Branding
Division at Techcombank in July 2014
65
Board of Management Responsibilities

MANAGEMENTS RESPONSIBILITY IN RESPECT OF THE CONSOLIDATED FINANCIAL STATEMENTS
The Board of Management of the Bank is responsible for the consolidated financial statements of the Bank which give a true and fair view of the consolidated
state of affairs of the Bank and of the year end consolidated results of operations and its year end consolidated cash flows for the year. In preparing those year
end consolidated financial statements, the Board of Management is required to:
u Select suitable accounting policies and then apply them consistently
u Make judgements and estimates that are reasonable and prudent
u State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the consolidated financial
statements; and
u Prepare the consolidated financial statements on the going concern basis unless it is inappropriate to presume that the Bank will continue its business
The Board of Management is responsible for ensuring that proper accounting records are kept which disclose, with reasonable accuracy at any time, the
consolidated financial position of the Bank and to ensure that the accounting records comply with the applied accounting system. It is also responsible for
safeguarding the assets of the Bank and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Board of Management confirmed that it has complied with the above requirements in preparing the accompanying consolidated financial statements for the
year ended 31 December 2014.
STATEMENT BY MANAGEMENT
The Board of Management of Vietnam Technological and Commercial Joint Stock Bank
(herein referred to as the Bank) is pleased to present this report and the financial
statements of the Bank as at 31 December 2014 and for the year then ended.
The Board of Management does hereby state that, in its opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated
financial position of the Bank as at 31 December 2014 and of the consolidated results of its operations and its consolidated cash flows for the year ended 31
December 2014 in accordance with the Vietnamese Accounting Standards, Accounting System for Credit Institutions and comply with other relevant regulations
by the State Bank of Vietnam.
On behalf of Board of Management:
Murat Yuldashev
Executive Director
16 March 2015
66
67
Risk Management
Accelerate in building risk awareness and risk management in a more intensive way across the bank via
regular and extensive training and people development activities
With strong awareness of the role that risk

management plays in a commercial banks
operations, Techcombank has developed a strong
risk management strategy underpinned by the
following principles:
u Safety in lending activities
u Diversified loan portfolio
u Streamlined and convenient processes
u Commitment to
development; and
people
and
system
u Prudent and forward-looking policies

This strategy has been established based on the
foundation of risk management system which is
aligned with the Banks business development
requirements and risk appetites over time,
enhances the risk prevention, mitigation and
control, and associates the Banks risk management
strategy with its business plan while staying
adaptive to the rapidly changing environment. With
the application of advanced risk management tools
and international standards, risk management has
been implemented in all of the Banks operation,
aiming at the safety in customers transactions and
business stability of the Bank.
Key Achievements in 2014
During the year 2014, despite challenges in the

economy, Techcombanks portfolio quality has
been significantly improved compared with that in
the year 2013 through risk management and credit
control measures.
The Bank continued its de-risking initiatives for the
balance sheet by making conservative provisions

and selling more than VND 1,700 billion of nonperforming loans to VAMC in the year 2014. Credit
balance has been managed within the risk appetite
and acceptable tolerance. The Banks Capital
Adequacy Ratio at 15.65% is considerably higher
than the regulatory 9% of the SBV. We have
managed robust control over liquitidy risks, market
risks, and operational risks. With continuous risk
management control, no unexpected serious risk
occurred during the year 2014.
These achievements were attributable to our
continuous innovation to improve the risk
management system, investment in the human
resources, the emphasis on risk management
culture as well as the re-engineering of
organizational structure of the Risk Management
Division. Accordingly, the operations of Risk
Management were effectively structured along
business segments to ensure that risk management
remains abreast and met the demand of business
development. Moreover, policies, processes
and the risk management framework has also
been developed and improved to strengthen risk
management effectively control business activities,
and improve transparency in banks operation.
Employee training was key focus in order to equip
our staff with knowledge in line with international
standards and to enhance the risk culture in
business units.
Some key risk management projects in the year
2014 are as detailed below:
Strengthening Risk Management

Framework
In the year 2014, the Bank continued to strengthen
its Risk Management Framework by maintaining
the activities of the Risk Working Group (RWG) and

Operational Risk Working Group (ORWG). These
Working Groups identify, assess and manage all
material risks faced by the Bank and highlight the
action plans/ recommendations to the Board of
Management and the Board of Directors.
Risk Appetite Framework
In the year 2014, Techcombank completed a

new Risk Appetite Framework to support risk
acceptance in a selective and reasonable way
and to determine the risk triggers of the Bank as
a tool to monitor risks and enhance the awareness
of risk management responsibilities. The Risk
Appetite Framework is well aligned with the vision,
mission and core values of Techcombank, with risk
management principles at the core, focusing on
sustainable growth, healthy balance sheet structure

with risk being commensurate with returns.
Basel II compliance
As one of the ten local banks selected by the State

Bank of Vietnam to develop and apply Basel 2 risk
management standards, with the support of Ernst and
Young, one of the worlds leading consulting firms in
Banking Finance, Techcombank has completed the
gap-analysis phase for Basel 2 and is now preparing
the master plan for the following years.
Risk Culture
Techcombank has made efforts to strengthen,

outreach and build a culture of awareness and
responsibility in risk management throughout the
Bank during the year 2014 through training and
people development activities to ensure that the

principle of Three Lines of Defense continues
being developed and expanded.
Credit risk rating model
In 2014, the Bank also continued building and

upgrading its internal scoring and credit rating
systems to assess personal and business banking
customers.
Specifically,
Techcombank
has
developed a new rating model for micro enterprises
(MSME customers), which is expected to go live at
the beginning of 2015.
Besides, the Bank planned to carry out the project
of hiring foreign consultants to validate the Banks
credit rating system, aiming at validating the
existing rating system and making necessary
69
adjustments, creating the premise for debt

classification under qualitative methods according
to the State Banks road map for adopting Basel 2
standardized approach in Vietnam.
and as stipulated by the State Bank of Vietnam, the

Bank will work with external consultants to validate
and upgrade its credit models for business banking
as well as retail banking.
Debt collection
The Bank will also upgrade its VaR and ALM

dynamic simulation together with customer behavior
analysis such as renewal, premature withdrawal
or prepayment.
The Bank will also improve
the operational risk management tools such as
collection of loss estimation data (LED), risk control
self-assessment (RCSA) and key risk indicators
(KRI). Besides, data and data quality management
will also be carried out in the year 2015.
During the year 2014, debt management and

collection system has been centralized with
well defined functions, policies and procedures
through the deployment of 6 debt collection and
management models for each customer segment.
Techcombank has managed and reviewed the credit
quality effectively through its early warning system
and mechanism of credit review and problem loan
management. Debt collection activities focused
on controlling, minimizing potential risk. Problem
loan portfolio has been periodically reviewed and
restructured or applied with other suitable financial
solutions.
Management of the unexpected
In the year 2014, Techcombank continued building

and strengthening its business continuity plan
(BCP), which involves training for Banks employees
to raise their awareness and responsiveness
toward incidents or disasters, such as fires, floods,
earthquakes, epidemics, and terrorist attacks. The
Bank also established measures to deal with other
operational risks, such as disruption of supplies, or
breakdown or failure of the computer systems.
Key objectives in 2015
In the year 2015, the Bank will continue to

enhance the current foundation as well as ensure
implementing development plans within the
Banks risk tolerance. The Banks risk management
strategy in the year 2015 will cover the following
key areas:
Basel 2 Project Implementation
With the aim of completing standardized approach

by the end of 2015, the execution of Basel 2 will
focus on applying quantitative and qualitative
KPIs, implementing technology solutions and
strengthening the risk culture.
In addition to ensure our readiness for the adoption
of Basel II advanced approach in the year 2018
70
Risk Management Framework
Techcombank will further strengthen its Risk

Management Framework in 2015 through
strengthening its reach and effectiveness of
the Forums on risk management, including
Risk Working Group (RWG), operational risk
management framework and the enhanced
activities of ARCO. The Basel 2 Gap analysis is
also part of Techcombanks strategy to develop its
master plan and road map for its Risk Management
Framework system to meet a number of
international standards and best practices
Continued development of the risk

managment
Techcombank has achieved significant progress in

the implementation of a strong Risk Management
Framework. One of the lists on the agenda in
the year 2015 Risk Strategy is to build the risk
culture, awareness, and risk management in a
more intensive way across the bank via training
and people development activities to ensure the
principle of Three Lines of Defense. Accordingly,
all of the Banks operations, from Business to
Support functions and Internal Audit, need to
ensure the balance between risk management and
providing high-quality services to customers, and
generating sufficient returns against acceptable
levels of risks.
Improved portfolio management and

risk identification
The Bank will continue building and improving its
portfolio management and risk identification via an
improved early warning system (EWS) in order to

ensure that customers potential credit problems
will be identified at an early stage. Building a data
warehouse to improve information integrity and
quality, in which credit information is the key, is the
foundation for the development of credit models
and advanced techniques for monitoring loans.
Debt classification and development

of credit model
We will continue the development and improvement

of debt classification and customer rating systems,
including the development of credit rating models
for each segment which set the stage for more
advanced credit assessment models to help the
Bank comply with Basel II requirements and at the
same time, quantify risk.
Investment in risk infrastructure
In 2015, Techcombank will continue investment in new

technologies to support its risk management activities,
including the deployment of the new credit limit and
collateral management system, the improvement of
Loan Origination System, the upgrading of Treasury
transaction monitoring system and the development of
customer and credit management information system for
business banking customers.
Compliance Management
support functions. Furthermore, compliance

rewards were granted to outstanding individuals
and teams to recognise their contributions to the
Banks compliance foundation.
The Bank aims to strengthen the corporate compliance to manage risks effectively and meet
sustainable business development objectives
Compliance, Operational Risk Management, and Legal Division is responsible for the overall compliance
management of Techcombank in the following long-term directions:
u Development of a transparent, effective, and system based on international-standards for controlling
operational and compliance risks
u Development of a legal assistance system that is closely aligned with business development, be able
to provide warnings, and timely identify business opportunities arising from legal changes
u Becoming the most compliant bank
Achievements in 2014
With clear objectives and strong support of the

Banks overall directions, Compliance Management
has recorded remarkable achievements which
contributed to the successes of business lines and
the Banks operation. A comprehensive control
system was put in place with three coherent lines
of defence (business/support/operation units in
the first line, control functions in the second line,
and Internal Audit in the third line of defence). In
the network, the first two lines of defence, namely
Branch Operations and Regional Compliance
Control, made positive contributions to early risk
identification, considerable reduction of serious
violations, and enhancement of loss settlement.
Risk management was strengthened with finetuned policies, a roadmap for implementing
Basel II (established by Basel Committee on
Banking Supervision), tightened supervision, and
coordination in taking high-risk based corrective
actions. As a result, the Banks Risk Heat Map
was gradually improved. Regarding cross-division/
cross-function risks, Operational Risk Management

took the lead in allocating responsibility to different
stakeholders, agreed upon remedial measures,
collected information, and tracked progress.
Therefore in 2014, risks were identified in the
early stage and resolved promptly and no major
operational risks emerged at the bank-wide level.
Such individual and team efforts substantially

improved compliance indicators in 2014. The
percentage of high-risk items in the Banks Risk
Heat Map declined and these risks has adequate
controls. Losses shrank year-on-year (58%) and
loss recovery increased significantly to 97%
(from 14% in 2013). Compliance management
contributed to the formation of a solid foundation
for sales promotion, the delivery of best services
to customers, and sustainable growth for the
whole Bank.
Plan for 2015
In 2015, the Bank will focus on the following actions

to achieve Compliance Control and Operational
Risk Management objectives:
u Continue implementing Operational Risk
Management framework which is based
on Basel standards and best management
practices. Specifically, the Bank will finalise
the Operational Risk Appetites, improve
fundamental governance tools such as Loss

Data Collection, Key Control Self-Assessment,
and Key Risk Indicators, agree on the risk
assessment methodology and model based
on three lines of defence (i.e. Internal Audit,
Operational Risk Management/Control, and
business units), and benchmark the Banks
business lines and operations against Basel
u Enhance the quantity and quality of inspections
for better compliance control and early
identification of potential risks in an uncertain
macro environment. Particularly, on-site
inspections of business units/strategic or highrisk operations will be maintained. Controllers
and supervisors in the first line of defence will
be trained, jointly perform some tasks with other
lines of defence, and have their performance
evaluated
u Continue
improving
compliance
culture
and awareness by balancing between the
management of compliance and operational
risks and the delivery of high-quality products
and services to customers and balancing
between risks and returns
A comprehensive communication strategy will be
carried out in cooperation with Marketing Division
in an interactive manner to raise the awareness on
compliance, law, and operational risk management,
share legal and operational risk knowledge,
warnings, and lessons learned with the whole Bank.
Training workshops and job-specific compliance
tests will be conducted, and compliance indicators
for business/support divisions will be revised to aid
the implementation of the strategy.
u Continue improving the interaction between

three lines of defence and align them with the
Banks strategy by investing in technology
(Weblog and Governance Risk Compliance
software program) to boost efficiency and meet
the Banks long-term compliance/operational
risk management objectives
One of the objectives of 2014 was to enhance

the compliance and operational risk management
culture in all units of the Bank. Accordingly,
many communication and training activities were
conducted throughout the bank and at all employee
levels. In particular, more than 30 training sessions
were organized in 16 regions of Sales & Distribution
Division; more than 20 internal advanced training
sessions in derivative trading, bank guarantee,
legal entities in transactions, and issues in civil
transaction, etc. were successfully conducted by
in-house trainers and representatives of relevant
State agencies. These activities remarkably raised
the risk management awareness and strengthened
the compliance culture in both business and
73
Annual Report 2014
Financial Statement
To the Shareholders and the Board of Directors

VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK
We have audited the accompanying consolidated financial statements of Vietnam Technological and Commercial Joint Stock Bank (the Bank) and its subsidiaries
(collectively, Techcombank) which comprise the consolidated balance sheet as at 31 December 2014, the consolidated statement of income and cash flows for
the year then ended and the explanatory notes thereto which were authorized for issue by the Banks Board of Management on 16 March 2015, as set out on
pages 6 to 79.
Managements responsibility
The Banks Board of Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Vietnamese
Accounting Standards, the Vietnamese Accounting System applicable to credit institutions issued by the State Bank of Vietnam and the relevant statutory
requirements applicable to financial reporting, and for such internal control as the Board of Management determines is necessary to enable the preparation of the
consolidated financial statements that are free from material misstatement, whether due to fraud or error.
Auditors responsibility
Our responsibility is to express an opinion on the consolidated financial statements based on our audit. We conducted our audit in accordance with Vietnamese
Accounting Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the consolidated financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend
on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those assessments, the auditor considers the internal control relevant to the entitys preparation and fair presentation of the financial statements in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An
audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Audit opinion
In our opinion, the consolidated financial statements give a true and fair view, in all material respect, of the consolidated financial position of Techcombank as at 31
December 2014 and of its consolidated statement of income and its consolidated cash flows for the year then ended in accordance with Vietnamese Accounting
Standards, the Vietnamese Accounting System applicable to Credit Institutions issued by the State Bank of Vietnam and the relevant statutory requirements
applicable to financial reporting.
Financial
Statements
The consolidated financial statements of Techcombank for the year ended 31 December 2013 were audited by another firm of auditors whose report dated 22
March 2014 expressed an unqualified opinion on those statements.
KPMG Limited Vietnam
Independent Auditors Report
77
Consolidated Balance Sheet
78
Consolidated Statement of Income
81
Consolidated Statement of Cash Flows
82
Notes to the Consolidated Financial Statements
84
Investment Certificate No. 011043000345

Audit Report No. 14-02-047/5
Tran Dinh Vinh

Practicing Auditor Registration
Certificate No. 0339-2013-007-1
Deputy General Director
Nguyen Minh Hieu

Practicing Auditor Registration
Certificate No. 1572-2013-007-1
Hanoi, 16 March 2015
76
77
Vietnam Technological And Commercial Joint Stock Bank

Consolidated balance sheet as at 31 December 2014
Form B02/TCTD-HN
Note
31/12/2014
VND million
31/12/2013
VND million
2,723,642
2,291,494
ASSETS
A
I
II
Balances with the State Bank of Vietnam
1,168,265
2,830,794
III
Balances with and loans to other credit institutions

Balances with other credit institutions
Loans to other credit institutions
Allowance for balances with and loans to other credit institutions
18,922,460
9,588,234
9,343,996
(9,770)
15,420,747
11,856,655
3,599,224
(35,132)
Securities held for trading
IV
1.
2.

Allowance for diminution in the value of securities held for trading
Loans and advances to customers
1.
2.
Loans and advances to customers

Allowance for loans and advances to customers
Available for sale securities
Held to maturity securities
Allowance for diminution in the value of investment securities
Long-term investments
VI
VII
1.
2.
3.
VIII
4.
5.
IX
1.
a
b
3.
a
b
Other long-term investments

Allowance for diminution in the value of long-term investment
Fixed assets
Tangible fixed assets
Cost
Accumulated depreciation
Intangible fixed assets
Cost
Accumulated amortisation
Investment property
X
a
b
XI
1
2
3
4
5
2,086,246
919,608
2,089,318
(3,072)
79,347,790
921,035
(1,427)
69,088,680
10
11
12
80,307,567
(959,777)
54,978,730
49,704,301
6,197,583
(923,154)
70,274,919
(1,186,239)
49,845,591
46,169,754
3,693,837
(18,000)
13
693,788
128,625
697,630
(3,842)
1,036,505
657,032
1,361,399
(704,367)
379,473
624,331
(244,858)
128,625
1,032,737
656,656
1,234,437
(577,781)
376,081
552,644
(176,563)
1,389,389
1,421,469
1,489,656
(100,267)
13,554,979
10,376,418
3,341,124
17,498
606,412
(786,473)
1,484,363
(62,894)
15,916,918
10,345,060
5,256,518
28,578
337,896
(51,134)
175,901,794
158,896,663
14
15
16
Cost
Other assets
Receivables
Accrued interest and fee receivables
Deferred tax assets
Other assets
Allowance for other assets
17
31
TOTAL ASSETS
The accompanying notes are an integral part of the consolidated financial statements
78
Consolidated balance sheet as at 31 December 2014 (continued)
Form B02/TCTD-HN
Note
31/12/2014
VND million
31/12/2013
VND million
18
19,471,408
15,224,974
7,846,677
4,565,048
11,624,731
10,659,926
19
131,689,810
119,977,924
18,409
73,157
67,266
64,137
LIABILITIES AND SHAREHOLDERS EQUITY
Cash and gold on hand
1.
2.
3.
LIABILITIES
Deposits and borrowings from other credit institutions
II
1.
Deposits from other credit institutions
2.
Borrowings from other credit institutions
III
Deposits from customers
IV
Derivatives and other financial liabilities
Other borrowed and entrusted funds
VI
Valuable papers issued
20
6,253,623
5,643,295
VII
Other liabilities
21
3,415,228
3,993,107
1.
Accrued interest and fee payables
1,907,877
1,861,191
3.
Other liabilities
1,507,351
2,020,106
4.
Provisions for off-balance sheet commitments
111,810
160,915,744
144,976,594
14,986,050
13,920,069
TOTAL LIABILITIES
SHAREHOLDERS EQUITY
Capital and reserves
VIII
22
1.
Capital
8,878,079
8,878,079
Share capital
8,878,079
8,878,079
2.
Reserves
4,551,560
4,372,389
5.
Retained earnings
1,556,411
669,601
14,986,050
13,920,069
175,901,794
158,896,663
TOTAL SHAREHOLDERS EQUITY

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
79

Consolidated balance sheet as at 31 December 2014 (continued)
Form B02/TCTD-HN
31/12/2014
VND million

Consolidated statement of income for the year ended 31 December 2014
1.
2.
CONTINGENT LIABILITIES
1.
2.
3.
II
Loan commitments
Letters of credit
Other guarantees
OTHER COMMITMENTS
1.
2.
3.
Undrawn loan commitments

Other commitments
Unmatured foreign currency contracts
Prepared by:
2013
VND million
Interest and similar income

Interest and similar expenses
23
23
12,931,617
(7,158,987)
13,281,305
(8,945,643)
Net interest income
23
5,772,630
4,335,662
Fee and commission income

Fee and commission expenses
24
24
1,665,405
(542,822)
1,150,038
(413,795)
20,578,532
5,953
8,535,196
7,334,918
7,297
9,240,217
11,331,018
II
Net fee and commission income
24
1,122,583
736,243
28,422,783
14,278,177
III
Net gain/(loss) from trading of foreign currencies and gold
25
22,898
(121,501)
476
5,517,418
8,760,283
IV
Net gain from trading of securities held for trading
26
97,227
105,137
2,381,836
26,040,947
Approved by:
Thai Ha Linh
Director of Accounting,
Financial Policy and Tax, Finance and Strategy Division
2014
VND million
15,876,067
3.
4.
Net gain from investment securities
27
77,654
160,910
Other income
Other expenses
28
28
985,922
(977,475)
738,646
(324,514)
VI
Net other income
28
8,447
414,132
VII
Income from investments in other entities
4,993
17,253
VIII
Operating expenses
29
(3,431,045)
(3,355,666)
IX
Operating profit before allowance and provision expenses

for credit losses
3,675,387
2,292,170
Allowance and provision expenses for credit losses
(2,258.366)
(1,413,964)
XI
Profit before tax
V
5.
6.
Do Tuan Anh
Deputy Chief Executive Officer in charge
30
1,417,021
878,206
Income tax expense - current

Income tax expense - deferred
31
31
(324,083)
(11,080)
(213,146)
(5,989)
XII
Total income tax expense
31
(335,163)
(219,135)
XIII
Net profit after tax
1,081,858
659,071
XV
Basic earnings per share (VND/share)
983
600
7.
8.
Bui Thi Khanh Van
Chief Accountant
Note
31/12/2013
VND million
OFF-BALANCE SHEET ITEMS

I
Form B03/TCTD-HN
32
16 March 2015
Prepared by:
Bui Thi Khanh Van

Chief Accountant
80
16 March 2015
Approved by:
Thai Ha Linh
Do Tuan Anh
81

Consolidated statement of cash flows for the year ended 31 December 2014
Form B04/TCTD-HN
2014
VND million
Consolidated statement of cash flows for the year ended 31 December 2014 (continued)
2013
VND million
CASH FLOWS FROM OPERATING ACTIVITIES
Form B04/TCTD-HN
2014
VND million
2013
VND million
(187,647)
(202,299)
CASH FLOWS FROM INVESTING ACTIVITIES
1. Interest and similar income received
14,847,011
13,919,984
1. Payments for purchases of fixed assets
2. Interest and similar expenses paid
(7,112,301)
(9,153,635)
2. Proceeds from disposals of fixed assets
11,434
677
4. Payments for investment properties
(8,736)
(129,902)
(570,405)
(35,800)
4,993
17,253
(750,361)
(350,071)
870,747
(5,425,241)
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR
17,196,728
22,621,969
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR (Note 33)
18,067,475
17,196,728
3. Fee and commission income received
1,122,583
736,243
197,779
144,546
8,447
(1,294,019)
6. Proceeds from loans previously written off
54,826
63,392
7. Operating and salary expenses payments
(3,104,451)
(1,292,795)
(217,534)
(38,545)
4. Net payment for foreign currencies, gold and securities trading activities
5. Other income received
8. Income tax paid

Net cash inflow from operating activities before
changes in operating assets and liabilities
7. Payments for investments in other entities

9. Dividends received and profit received from long-term investments
NET CASH OUTFLOWS FROM INVESTING ACTIVITIES

NET CASH FLOWS DURING THE YEAR
5,796,360
3,085,171
Changes in operating assets

9. Balances with and loans to other credit institutions
(2,908,996)
13,288,145
10. Securities held for trading and investment securities
(5,621,629)
(1,171,702)
40,868
12. Loans and advances to customers
11. Derivatives and other financial assets
(8,583,308)
(2,013,477)
13. Written off by utilisation of provision
(1,451,867)
(1,377,891)
14. Other assets
(1,497,483)
4,619,273
4,246,434
(23,945,431)
11,711,886
8,515,636
610,328
(4,807,548)
3,129
(63,816)
(54,748)
73,157
(626,782)
(1,317,119)
(2,216)
(436)
1,621,108
(5,075,170)
Prepared by:
Approved by:
Changes in operating liabilities

16. Deposits and borrowings from other credit institutions
17. Deposits from customers
18. Valuable papers issued
19. Other borrowed and entrusted funds
20. Derivatives and other financial liabilities
21. Other liabilities
22. Utilisations of reserves
NET CASH FLOWS FROM OPERATING ACTIVITIES
82
Bui Thi Khanh Van

Chief Accountant
Thai Ha Linh
Do Tuan Anh
16 March 2015
83
Notes to the consolidated financial statements for year ended 31 December 2014
Form B05/TCTD-HN
These notes form an integral part of, and should be read in conjunction with, the accompanying consolidated financial statements.
1.
REPORTING ENTITY
Notes to the consolidated financial statements for year ended 31 December 2014 (continued)
2.
BASIS OF PREPARATION
(a)
Statement of compliance
The consolidated financial statements have been prepared in accordance with Vietnamese Accounting Standards, the Vietnamese Accounting System for
Credit Institutions issued by SBV, and relevant statutory requirements applicable to financial reporting. These accounting policies may differ in some material respects from the generally accepted accounting principles and standards in other countries. Accordingly, the accompanying consolidated financial
statements are not intended to present the consolidated financial position and consolidated results of operations and consolidated cash flows in accordance
with generally accepted accounting principles and practices in countries or jurisdictions other than Vietnam. Furthermore, their utilisation is not designed for
those who are not informed about Vietnams accounting principles, procedures and practices.
Vietnam Technological and Commercial Joint Stock Bank (herein referred to as the Bank) is a joint stock bank incorporated and registered in the Socialist
Republic of Vietnam.
The Bank was established pursuant to Banking Licence No. 0040/NH-GP dated 6 August 1993 issued by the State Bank of Vietnam (the SBV) and
Business Registration Certificate No. 055697 dated 7 September 1993 issued by Hanoi Department of Planning and Investment. Its operation period was
extended to 99 years under Decision No. 330/QD-NH5 dated 8 October 1997 by the SBV.
The principal activities of the Bank are mobilising and receiving short, medium and long-term deposit funds from organisations and individuals; granting
loans on short, medium and long-term basis up to the nature and ability of the Banks capital resources; conducting settlement and cash services and other
banking services as approved by the SBV; conducting investments in associate, joint-ventures and other companies; investment in bonds and deal in foreign
exchange in accordance with applicable regulations.
As at 31 December 2014, the Banks share capital was VND8,878,079 million. There were 887,807,871 ordinary shares in issue with face value per share
of VND10,000.
(b) Basis of measurement

The consolidated financial statements, except for the consolidated statement of cash flows, are prepared on the accrual basis using the historical cost concept.
The consolidated statement of cash flows is prepared using the direct method.
(c)
As at 31 December 2014, the Bank had three (3) subsidiaries as follows:
Subsidiaries
Operating licence
Nature of Business
Techcom Securities Company Limited
98/UBCK-GP, dated 18 September 2008

granted by State Securities Commission
Securities activities
Vietnam Technological and Commercial Joint

Stock Bank - Asset Management Company
Limited
0104003519 dated 18 June 2008 granted

by Hanoi Department of Planning and
Investment
Asset management
Techcom Capital Management Company

Limited
40/UBCK-GP, dated 21 October 2008

granted by State Securities Commission
Fund management
% owned by the Bank

100%
100%
100%
Accounting period
The annual accounting period of Techcombank is from 1 January to 31 December.
(d) Accounting currency

The consolidated financial statements are prepared and presented in Vietnam Dong (VND), rounded to the nearest million (VND million).
The Banks Head Office is located at 191 Ba Trieu, Hanoi. As at 31 December 2014, the Bank had one (1) Head Office, two (2) representative offices, three
hundred and twelve (312) transaction offices nationwide and three (3) subsidiaries.
The consolidated financial statements of the Bank as at and for the year ended 31 December 2014 comprise financial statements of the Bank and its subsidiaries (together referred to as Techcombank).
Form B05/TCTD-HN
3.
CHANGES IN ACCOUNTING POLICIES

Except for the changes in accounting policies listed below, Techcombank has consistently applied the accounting policies that are discussed in Note 4 for all
the accounting periods presented in these consolidated financial statements.
Techcombank has prospectively adopted the Circular No. 02/2013/TT-NHNN issued by the SBV on 21 January 2013 on asset classification, risk provisioning
and use of provision against credit risks by credit institutions and foreign bank branches (Circular 02) and Circular No. 09/2014/TT-NHNN issued by the
SBV on 18 March 2014 on amending and supplementing a number of articles of Circular 02 (Circular 09) which were effective from 1 June 2014.
The application of Circular 02 and Circular 09 affects the following accounting policies:

Balances with and loans to other credit institutions - loan classification and allowance for credit risk (Note 4(d));
Securities held for trading allowance for diminution in value (Note 4(e));
Loans and advances to customers - loan classification and allowance of credit risk (Note 4(h) and 4(i));
Provision for off-balance sheet commitments (Note 4(k));
Allowance for diminution in the value of investment securities (Note 4(f)); and
Allowance for receivables from loans sold (Note 4(p)).
As at 31 December 2014, Techcombank had 7,419 employees (31 December 2013: 7,290 employees).
84
85
4.
Form B05/TCTD-HN
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies have been adopted by Techcombank in the preparation of these consolidated financial statements.
(a)
Basis of consolidation financial statement preparation
(i) Subsidiaries
Subsidiaries are those companies over which the Bank has the power to govern the financial and operating policies. Subsidiaries are fully consolidated from
the date on which control is transferred to the Bank. They are de-consolidated from the date on which control ceases.
(ii)
Transactions eliminated on consolidation

Inter-company balances, transactions and unrealised gains on transactions between those subsidiaries and the Bank are eliminated. Unrealised losses also
eliminated unless transactions provide evidence of an impairment of the asset transferred. The accounting policies of subsidiaries have been changed when
necessary to ensure the consistency with the policies adopted by the Bank.
(b) Foreign currency transactions

Transactions are recorded in their original currencies. Monetary assets and liabilities denominated in currencies other than VND are translated into VND at
the rates of exchange ruling at the balance sheet date. Non-monetary foreign currency assets and liabilities are reported using the exchange rates effective
at the date of the transactions. Foreign exchange translation differences arisen from revaluating the balances of foreign trading accounts at the year-end
are recognised in the consolidated statement of income. Income/expense transactions incurred in foreign currencies are recognised in the consolidated
statement of income in VND using the exchange rates ruling on the dates of the transactions.
(c)
Cash and cash equivalents

Cash and cash equivalents include cash on hand, gold on hand, balances with the SBV, Government promissory notes and other short-term valuable papers
which are eligible for rediscount at SBV, demand deposits and term deposits with other credit institutions with original terms to maturity not exceeding three
months, and investment securities with terms from the date of purchase to maturity not exceeding three months.
Gold is revalued at the balance sheet date and the differences arising on revaluation are recorded in the consolidated statement of income.
(d) Balances with and loans to other credit institutions

From 1 June 2014
The classification of credit risks for balances with and loans to other credit institutions and the corresponding allowance are in accordance with Circular
02 and Circular 09. Accordingly, the Bank makes specific provision for balances with, (except for current accounts) and loans to other credit institutions as
described in policy in Note 4(i).
(e)
(i)
Classification and recognition
(ii) Measurement
Listed equity securities held for trading are stated at cost less allowance for diminution in the value which is determined be reference to closing prices of
securities from the Ho Chi Minh and Hanoi Stock Exchange at reporting date.
Allowance for diminution in the value of unlisted securities which are actively traded on trading market for unlisted public companies market (Upcom) are
determined as the average transaction price as at consolidated balance sheet date.
Allowance for unlisted securities which are not actively traded on Upcom is determined by reference to the average price of the transaction price quotes
from three securities companies having chartered capital above VND300 billion. In case that market price of these securities is not available or cannot be
determined reliably, these securities are stated at carrying value at the date of determining market price.
Listed debt securities held for trading are stated at cost less allowance for diminution in the value by reference to the yield curve listed at the Hanoi Stock
Exchange at reporting date.
From 1 June 2014
Debt securities held for trading which were unlisted corporate bonds are stated at cost less allowance for credit risk as stipulated in Circular 02 and Circular
09 as described in Note 4(i).
Prior to 1 June 2014
Debt securities held for trading which were unlisted corporate bonds were stated at cost less allowance for diminution in the value based on their number
of overdue days as stipulated in Circular No. 228/2009/TT-BTC dated 7 December 2009 by the Ministry of Finance guiding the appropriation and use of allowances for devaluation of inventories, loss of financial investments, doubtful debts and warranty for products, goods and construction works at enterprises
(Circular 228) and Circular No. 89/2013/TT-BTC dated 28 June 2013 by the Ministry of Finance amended and supplemented Circular 228 (Circular 89)
as follows:
Overdue days
Provision rate
In schedule or overdue up to one six (06) months
From six (06) months up to one (01) year
30%
According to Circular 02, Techcombank is not required to make general allowance for balances with and loans to other credit institutions.
From one (01) year up to two (02) years
50%
From two (02) years up to three (03) years
70%
Techcombank adopted Circular No. 21/2012/TT-NHNN issued by SBV on 18 June 2012 regulating on activities of lending, borrowing; term purchase and
sale of valuable papers among credit institutions and foreign bank branches (Circular 21) and Circular No. 01/2013/TT-NHNN issued by SBV on 7 January
2013 on amendments of and supplements to a number of articles of Circular 21 (Circular 01). Accordingly, Techcombank classified and made provisions
for loans to other credit institutions using the methods of the classification and allowance for loans and advances to customers in accordance with Decision
No. 493/2005/QD-NHNN dated 22 April 2005 (Decision 493) and Decision No. 18/2007/QD-NHNN (Decision 18) dated 25 July 2007 of the Governor of
the SBV as described in Note 4(h).
More than three (03) years
Form B05/TCTD-HN
Securities held for trading are debt or equity securities, which are acquired for trading purpose. Securities held for trading are initially recognised at cost.
Having applied such change in accounting policy, Techcombank reversed the general allowance amounted to VND35,132 million for balances with (except
for current accounts) and loans to other credit institutions during the year. Simultaneously, Techcombank also made the specific allowance amounted to
VND9,770 million for balances with and loans to other credit institutions during the year.
86
0%
100%
This change in accounting policy for securities held for trading had no impact on financial statements as Techcombank did not have unlisted corporate bonds
which were held for trading at the time of making allowance (30 November 2014).
Allowance for diminution in the value of securities held for trading as described above is reversed when the subsequent increase in the recoverable value of
the securities is due to the objective events occurring after the allowance is made. The maximum amount to be reversed cannot exceed book value of the
securities before making allowance.
Gains or losses from the sales of securities held for trading are recognised in the consolidated statement of income.
87
Form B05/TCTD-HN
(iii) De-recognition
Techcombank derecognizes securities held for trading when the contractual rights to the cash flows from these securities expire or when the significant risks
and rewards of ownership of these securities have been transferred.
Form B05/TCTD-HN
For unlisted corporate bonds

From 1 June 2014
(f)
Allowance for diminution in value of investment securities which are unlisted corporate bonds is determined in accordance with regulations stipulated in
Circular 02 and Circular 09 as described in Note 4(i).
(i)
Classification
Investment securities are classified into available for sale investment securities and held to maturity investment securities. Techcombank initially recognised
investment securities at cost. Techcombank classifies investment securities at the purchase date. In accordance with Official Letter No. 2601/NHNN-TCKT
dated 14 April 2009 by the SBV, Techcombank is allowed to reclassify investment securities once after their purchase date.
Held-to-maturity investment securities
Techcombank determined allowance for diminution in the value of investment securities which were unlisted corporate bonds based on number of overdue
days in accordance with regulations stipulated in Circular 228 and Circular 89 as follows:
Overdue days
Provision rate
Held-to-maturity investment securities are debt securities with fixed maturities and fixed or determinable payments, where Techcombank has the positive
intention and ability to hold until maturity.
30%
Available-for-sale investment securities
50%
Available-for-sale investment securities are debt or equity securities which are held for an indefinite period and may be sold at any time.
70%
(ii) Recognition
0%
100%
Techcombank recognises investment securities on the date that it acquires substantially all the risks and rewards of owning these securities.
(iii) Measurement
Equity securities
Listed available-for-sale equity securities are stated at cost less allowance for diminution in the value which is determined by reference to closing prices of
securities from the Ho Chi Minh City Stock Exchange and the Hanoi Stock Exchange at reporting date.
For the unlisted available-for-sale equity securities which are actively traded on the unlisted public company market (Upcom), allowance for diminution in
the value is determined by the average trading price in the market at the reporting date.
For the unlisted available-for-sale equity securities which are not registered on the Upcom, allowance for diminution in the value is calculated based on the
average quoted prices of three securities companies whose share capital greater than VND300 billion. In case the quoted prices of three securities companies cannot be determined, the securities are recorded at carrying value at the date of determining market price.
Debt securities
Debt securities are initially stated at cost, including transaction costs and other directly attributable costs. They are subsequently recognised at amortised
cost (affected by premium/discount amortisation) less allowance for diminution in value. Premium and discounts arising from purchases of debt securities
are amortised to the consolidated statement of income on a straight-line basis over the period from acquisition date to maturity date.
Post-acquisition interest income of available-for-sale debt securities and held-to maturity investment securities is recognised in the consolidated statement
of income on an accrual basis.
Listed available-for-sale debt securities and held-to-maturity investment securities are measured at cost less allowance for diminution in value which is determined by reference to the yield curve quoted on Hanoi Stock Exchange at the balance sheet date.
Techcombank determines allowance for diminution in value of unlisted available-for-sale debt securities and unlisted held-to-maturity debt securities (excluding unlisted corporate available-for-sale and held-to-maturity debt securities) in accordance with regulations stipulated in Circular 228 and Circular 89
as described in Note 4(e).
88
Having applied such change in accounting policy Techcombank made general and specific allowances amounted to VND140,272 million and VND319,247
million, respectively, for unlisted corporate bonds during the year.
(iv) Special bonds issued by Vietnam Asset Management Company
Special bonds issued by Vietnam Asset Management Company (VAMC) are term valuable papers, which aim to purchase bad debts of the Bank. Special
bonds are classified as held-to-maturity securities. Special bonds are initially recorded at cost at transaction date and subsequently carried at par value
less allowance. Par value of special bonds is equivalent to the value of bad debts sold which is the principal balance net of specific allowance made but not
utilized for those debts.
According to requirement of Circular No. 19/2013/TT-NHNN issued on 6 September 2013 by the SBV on the purchase, sales and disposal of bad debts of the
Vietnam Asset Management Company, during the holding period of special bonds, Techcombank makes specific provision with the minimum annual amount
equalling par value divided by total number of tenor of the bonds (currently 5 years). Techcombank allocates this annual allowance expense on a monthly
basis. The allowance is recorded to the consolidated statement of income.
(g) Long-term investments
Other long term investments are investments in the equity of companies without control or significant influence over the investees. These investments are
initially stated at cost.
Allowance for diminution in the value of investment securities and long-term investments
Allowance for diminution in value is required for other long-term investments when investee companies suffer losses, except when the loss was anticipated in their business plan before the date of investment. Allowance for diminution in value is determined as the total actual contributed capital of parties to
the investee company (par value) less (-) the actual owners equity multiplied (x) by the Techcombanks ownership percentage (par value) in the investee
company. An allowance is reversed only to the extent that the investments carrying amount does not exceed the carrying amount that would have been
determined if no allowance had been recognised.
89
Form B05/TCTD-HN
(h) Loans and advances to customers
The basis to determine the value and discounted value for each type of collateral was specified in Decision 493 and Decision 18.
Loans and advances to customers are stated at the amount of the outstanding principal less any allowance for loans and advances to customers.
Techcombank applied Decision No. 780/QD-NHNN dated 23 April 2012 by the SBV providing guidance for the classification of loans being rescheduled or
having the repayment term extended (Decision 780) under which the loans group was kept the same as before adjusting the repayment period, loan rescheduling if the business of the borrower was rated as tending positive and customers with good repayment capacity after adjusting the repayment period,
loan rescheduling.
Short-term loans are those with a repayment date within one year of the loan disbursement date. Medium-term loans are those with a repayment date
between one to five years of the loan disbursement date. Long-term loans are those with a repayment date of more than five years from the date the loan
disbursement date.
In accordance with Decision 493 and Decision 18, Techcombank was also required to make and maintain a general allowance of 0.75% of outstanding loans
and advances to customers that were classified from Group 1 to Group 4 as at 30 November.
From 1 June 2014

The classification of loans and allowance for credit losses were carried out in accordance with Circular 02 and Circular 09 as described in Note 4(i).
Techcombank has not determined the effects of this change in accounting policy on loans and advances to customers in the year as after applying the
changes in accounting policies, Techcombank has no longer applied the classification of loans and made provision for credit losses for loans and advances
to customers in accordance with Decision 18 and Decision 493.

The classification of loans and allowance for credit losses were carried out in accordance with Decision No. 493/2005/QD-NHNN (Decision 493) dated April
22, 2005 and Decision No. 18/2007/QD-NHNN (Decision 18) dated April 25, 2007 by the Governor of the State Bank of Vietnam.
Specific allowance as at reporting date in accordance with Decision 493 and Decision 18 was made based on principal less discounted value of collateral
multiplying with allowance rates which were determined based on loan classifications as at 30 November:
Debt group
Overdue status
1. Current
Current loans or overdue loans less than 10 days.
0%
2. Special mentioned
Loans being overdue between 10 days to 90 days; or

Loans having revised terms of repayments for the first time (if customers are assessed
as being capable of repaying both principal and interest according to the first revised
terms of repayments for the case of enterprises and organisational customers).
5%
Loans being overdue between 91 days and 180 days;

Loans having rescheduled terms of repayments for the first time except for the loans
with revised terms of repayments classified into the above mentioned Group 2; or
Loans having exempt or reduced interest because customers are not able to pay the
interest according to contracts.
20%
Loans being overdue between 181 days and 360 days;

Loans having rescheduled terms of repayments for the first time and being overdue
less than 90 days according to the first rescheduled terms of repayments; or
Loans having rescheduled terms of repayments for the second time.
50%
Loans being overdue more than 360 days;

Loans having rescheduled terms of repayments for the first time and being overdue
from 90 days or more according to the first rescheduled terms of repayments;
Loans having rescheduled terms of repayments for the second time and being overdue
according to the second reschedule terms of repayments;
Loans having rescheduled terms of repayments for the third time; or
Blocked loans, or loans awaiting for settlements.
100%
3. Substandard
4. Doubtful
5. Loss
90
Form B05/TCTD-HN
Allowance rate
(i)
Loan classification and allowance for balances with and loans to other credit institutions, purchase and entrusted purchase of corporate bonds issued by
unlisted enterprises, loans and advances to customers, and entrusted extension of credit
Loan classification for balances with and loans to other credit institutions, purchase and entrusted purchase of corporate bonds issued by unlisted enterprises, loans and advances to customers, and entrusted extension of credit (collectively referred to as debts) is implemented using the quantitative method as
regulated in Article 10 of Circular 02.
Specific allowance as at 31 December in accordance with Circular 02 and Circular 09 is made based on principal less discounted value of collateral multiplying with allowance rates which were determined based on the Banks debt classification as at 30 November. The allowance rates of specific allowance
for specific debt groups as follows:
Debt group
Overdue status
Allowance rate
1. Current
(a) Current debts that being assessed as fully and timely recoverable, both principals and interests; or
0%
(b) Debts which are overdue for a period of less than 10 days and being assessed as fully recoverable,
both overdue principals and interests, and fully and timely recoverable, both remaining principals
and interests.
2. Special mentioned
(a) Debts which are overdue for a period of between 10 days and 90 days; or
5%
(b) Debts which are restructured repayment term for the first time.
3. Substandard
20%
(b) Debts which are extended repayment term for the first time; or
(c) Debts which are exempted or reduced interests because customers are not sufficient capability to
pay all interests under credit contracts; or
(d) Debts in one of the following circumstances which remain unrecovered during a period of 30 days
after the date of the recovery decision:
Debts in breach of clauses 1, 3, 4, 5 or 6 of article 126 of the Law on Credit Institutions;
Debts in breach of clauses 1, 2, 3 or 4 of article 127 of the Law on Credit Institutions;
Debts in breach of clauses 1, 2 or 5 of article 128 of the Law on Credit Institutions; or
(e) Debts which are recovered under inspection conclusions.
91
Debt group
Overdue status
4. Doubtful
Form B05/TCTD-HN
Only when the above conditions are met, Techcombank reschedules the repayment period of the loans to customers and maintains such loans to customers
in the same loan group as being currently classified. Such repayment period rescheduling and maintaining debts group are allowed once (01) only. Clause
3a, Article 10 of Circular 09 is effective from 20 March 2014 and expires on 1 April 2015.
Allowance rate
50%
The basis to determine the value and discounted value for each type of collateral is specified in Circular 02.
(b) Debts which are restructured repayment term for the first time but still overdue for a period
of less than 90 days under that restructured repayment term; or
According to Circular 02, Techcombank is also required to make a general provision at 30 November of 0.75% of outstanding debts excluding balances with
and loans to other credit institutions and debts that are classified as Loss.
(c) Debts which are restructured repayment term for the second time; or
(d) Debts which are specified in point (d) of debt Group 3 have not been recoverable for a
period of between 30 days and 60 days after decisions on recovery have been issued; or
(j)
(a) Debts which are overdue for a period of more than 360 days; or
Conversely, securities purchased under agreements to resell at a specific date in the future are not recognised in the consolidated financial statements. The
corresponding cash payment is recognised as an investment in the consolidated balance sheet. The difference between the purchase price and resale price
is recorded in the consolidated statement of income under contractual interest.
100%
(b) Debts which are restructured repayment term for the first time but still overdue for a period
of 90 days or more than under that first restructured repayment term; or
(c) Debts which are restructured repayment term for the second time but still overdue under
that second restructured repayment term; or
(k)
Provision for off-balance sheet commitments

Off balance sheet commitments including guarantees, payment acceptances and irrevocable unconditional loan commitments with specific implementing
time.
(d) Debts which are restructured repayment term for the third time or later, whether debts are
overdue or not; or
From 1 June 2014
(e) Debts which are specified in point (d) of debt Group 3 have not been recoverable for a
period of between 30 days and 60 days after decisions on recovery have been issued; or
The classification of off-balance sheet commitments are made only for the purpose of managing and monitoring the credit process under the policy applied
to debts classification as described in Note 4(i).
(f) Debts which must be recovered under inspection conclusions but fail to be repaid
although recovery term was overdue for more than 60 days; or
In accordance with Circular 02, no allowance is made for off-balance sheet commitments.
(g) Debts of customers being credit institutions which are announced by the SBV to place in
special control status, or foreign banks branches of which capital and assets are blockaded.
In case where a customer has more than one debt with Techcombank, if any of these debts is transferred to a higher risk debt group, Techcombank is
required to reclassify the other debts of that customers to that higher risk group corresponding to their risk levels.
In accordance with Decision 18, Techcombank was required to classify guarantees, payment acceptances, loan commitments which were irrevocable and
unconditional into relevant groups and made specific allowances accordingly. The specific provision rates for the above balances were the same as those
for loans and advances to customers as described in Note 4(h).
When Techcombank participates in a syndicated loan but does not act as the lead bank, Techcombank shall classify the loans (including the syndicated loan)
of such customer in the higher risk loan group between that assessed by the lead bank and that assessed by Techcombank.
Additionally, Techcombank was also required to make a general provision of 0.75% of total the balances of letters of guarantee, letters of credit and loan
commitments which were irrevocable and unconditional as at 30 November.
According to Clause 3a, Article 10 of Circular 09, debts are restructured and maintained in the same debt group as before rescheduling when they meet the
following criteria:
Having applied such change in accounting policy, Techcombank reversed allowances amounted to VND111,810 million for off balance sheet commitments
during the year.
The debts and relevant credit granting processes are not in breach of law;
(l)
Derivative financial instruments
Debt rescheduling is in conformity with the purpose of borrowings in credit contracts;
(i)
Foreign exchange contracts
Customers utilize the capital for the right purpose;

Customers have the new feasible debt repayment options, in alignment with business plans; and
Techcombank meets the regulations of SBV on limits, safety ratios in operations, including a maximum ratio of short-term fund used for medium- or longterm loans in cases of rescheduling short-term loans to medium- and long- term loans.
92
Repurchase and reverse repurchase agreements

Securities sold under agreements to repurchase at a specific date in the future are not derecognised from the consolidated financial statements. The corresponding cash received is recognised as a borrowing in the consolidated balance sheet. The difference between the sale price and repurchase price is
recorded in the consolidated statement of income under contractual interest.
(e) Debts which must be recovered under inspection conclusions but fail to be repaid
although recovery term was overdue from 60 days ago.
5. Loss
Form B05/TCTD-HN
Techcombank involves in currency forward contracts and currency swap contracts to facilitate customers to transfer, modify or minimize foreign exchange
risk or other market risks, and also for the business purpose of Techcombank.
The currency forward contracts are commitments to settle in cash on a pre-dedetermined future date based on the difference between pre-determined exchange rates, calculated on the notional amount. The currency forward contracts are recognised at nominal value at the transaction date and are revalued
at the exchange rate at the reporting date. Gains or losses realized or unrealized are recorgnized in the consolidated statement of income.
93
Form B05/TCTD-HN
The currency swap contracts are commitments to settle in cash on a pre-determined future date based on the difference between pre-determined exchange
rates, calculated on the notional principal amount. The discount or premium due to difference between spot exchange rate at the effective date of the contract
and the forward rate is recorgnized at the effective date of the contract as an asset if positive or a liability if negative in the consolidated balance sheet. This
difference will be amortized on a straight line basis to the consolidated statement of income over the term on the contract.
(ii)
Interest rate swap contracts

Commitment value in interest rate swap contracts are not recognised in the consolidated balance sheet. Differences in interest rate swaps are recognised
in the consolidated statement of income on an accrual basis.
(iii) Commodity future contracts

Techcombank provides brokerage services for clients to sign the commodity future contracts, and hence the value of those contracts are not recognised in
the consolidated balance sheet. Income arising from the brokerage transactions are recognised in the consolidated statement of income.
(m) Tangible fixed assets
(i) Cost
Tangible fixed assets are stated at cost less accumulated depreciation. The initial cost of a tangible fixed asset comprises its purchase price, including import
duties and non-refundable purchase taxes and any directly attributable costs of bringing the asset to its working condition and location for its intended use,
and the cost of dismantling and removing the asset and restoring the site on which they are located. Expenditure incurred after the tangible fixed assets
have been put into operation, such as repairs and maintenance and overhaul costs, is normally charged to the statement of income in the period in which
the costs are incurred.
In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained
from the use of an item of tangible fixed assets beyond its originally assessed standard of performance, the expenditure is capitalised as an additional cost
of tangible fixed assets.
Form B05/TCTD-HN
Land use rights are stated at cost less accumulated amortisation. The initial cost of land use right comprises its purchase price and any directly attributable
costs incurred in conjunction with securing the land use right. Amortisation is computed on a straight-line basis over the leasing time.
(iii) Other intangible fixed assets
Other intangible fixed assets are stated at cost less accumulated amortisation. Amortisation is computed on a straight line basis over 4 - 8 years.
(o) Investment property
(i) Cost
Investment property is stated at cost less accumulated depreciation. The initial cost of an investment property comprises its purchase price, cost of land use
rights and any directly attributable expenditures of bringing the property to the condition necessary for it to be capable of operating in the manner intended.
Expenditure incurred after investment property has been put into operation, such as repairs and maintenance, is charged to the statement of income in the
year in which the expenditure is incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in future economic benefits
in excess of the originally assessed standard of performance of the existing investment property, the expenditure is capitalised as an additional cost of
investment property.
(ii) Depreciation
Depreciation is computed on a straight-line basis over the estimated useful lives of investment property. The estimated useful lives are as follows:
Building
10 - 40 years
(p) Other account receivables

Other accounts receivable are presented at cost less allowance for doubtful debts in the following periods.
Receivables are subject to review for impairment based on overdue periods of receivables or estimated loss arising from undue debts of which the indebted
economic organisations fall bankrupt or are undergoing dissolution procedures; debtors are missing, have fled, are prosecuted, detained or tried by law
enforcement bodies, are serving sentences or have deceased. Allowance expense is recorded in operating expenses for the year.
buildings and building improvements
8 - 50 years
office equipment
3 - 10 years
Techcombank makes allowance for doubtful receivables in accordance with Circular 228 and Circular 89 as belows:
vehicles
6 - 10 years
4 - 10 years
other fixed assets
(n) Intangible fixed assets

(i) Software
The cost of acquiring new software, which is not an integral part of the related hardware, is capitalised and treated as an intangible asset.
Software costs are amortised on a straight-line basis over 4 to 8 years.
94
Depreciation is computed on a straight-line basis over the estimated useful lives of items of tangible fixed assets. The estimated useful lives are as follows
(ii) Depreciation
(ii)
Overdue days
Provision rate
30%
50%
70%
0%
100%
Land use rights

Land use rights comprise:
Classification and provision making for the debts which have been sold but not yet collected
those acquired in a legitimate transfer; and
From 1 June 2014
rights to use leased land obtained before the effective date of Land Law (2003) for which payments have been made in advance for more than 5 years
and supported by land use right certificate issued by competent authority.
Techcombank reclassifies and makes allowance for the debts which have been sold but not yet collected, using the loan classification and collateral value
as before the selling date.
95
Form B05/TCTD-HN
Form B05/TCTD-HN

Annual allocation
Maximum balance
Reserve to supplement share capital
5% of profit after tax
Share capital
Financial reserve
25% Share capital
Techcombank made provision for the receivables from loan sold based on number of overdue days in accordance with Circular 228 and Circular 89 as
mentioned above.
Having applied such change in accounting policy, Techcombank made specific allowances amounted to VND749,929 million for the loans sold but not yet
collected during the year.
(q) Other provision
Other equity funds are allocated from profit after tax. The allocation from profit after tax and the utilisation of the other equity funds are approved by the
A provision other than allowances described in Note 4(d), 4(e), 4(f), 4(g), 4(h), 4(i) and 4(p), is recognised if, as a result of a past event, Techcombank has
shareholders in the Annual General Meeting. These funds are not required by law and are fully distributable.
a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the
obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time
(ii)
value of money and the risks specific to the liability.

(r)
Reserves of Vietnam Technological and Commercial Joint Stock Bank - Asset Management Company Limited:
Convertible bonds
According to Circular No. 27/2002/TT-BTC dated 22 March 2002 issued by the Ministry of Finance, the reserves allocation requirements for Vietnam Tech-
Convertible bonds issued by Techcombank entitle bondholders to convert their bonds into a fixed number of shares of Techcombank at the time of issuance.
nological and Commercial Joint Stock Bank - Asset Management Company Limited are the same as those of the Bank.
There are two types of convertible bonds: (1) mandatory convertible bonds where the bondholders signed agreements to convert the bonds to shares at
Reserves of Techcom Securities Company Limited and Techcom Capital Management Company Limited:
maturity and (2) normal convertible bonds where the bondholders have the option to convert at maturity. Both types of convertible bonds are classified as
According to Circular No. 146/2014/TT-BTC dated 6 October 2014 issued by the Ministry of Finance, the realised profits of securities company and capital
financial liabilities in the balance sheet.

(s)
Reserves of subsidiaries:
management companies, after offsetting previous years losses in accordance with the Law of Corporate Income Tax and paying corporate income tax, are
distributed as follows:
Other payables
Other payables are stated at their cost.
(t)
managed by the Vietnam Social Insurance. The portion that Techcombank contributes for its employees is recognised as an expense in the consolidated
statement of income when occurred.
(u) Share capital
Share premium
On receipt of capital from shareholders, the difference between the issue price and the par value of the shares is credited to share premium account in equity.
(v)
Reserves and funds
(i)
Reserves of the Bank

The Bank is required to make the following allocations before distribution of profits:
96
Reserve to supplement share capital
10% of chartered capital
Financial reserve
10% of chartered capital
The purpose of the financial reserve is to cover losses incurred during the normal course of business. This reserve together with the reserve to supplement
chartered capital are non-distributable.
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity.
(ii)
Maximum balance
Employees benefits
According to the Social Insurance Law, from 1 January 2009, Techcombank and its employees are required to contribute to unemployment insurance fund
(i)
Annual allocation
(w) Revenue recognition

(i)
Interest income
Interest income is recognised in the consolidated statement of income on an accrual basis, except for interest on debts classified in Group 2 to Group 5 as
defined in Note 4(i) which is recognised upon receipt.
(ii)
Fee and commission income

Fees and commissions are recognised in the consolidated statement of income on an accrual basis.
97
Form B05/TCTD-HN
(iii) Dividend income
(ac) Commitments and contingent liabilities
Dividends receivable in cash are recognised in the consolidated statement of income when Techcombanks right to receive payment is established.
In accordance with Circular No. 244/TT-BTC dated 31 December 2009 issued by the Ministry of Finance, dividends received in the form of shares, bonus
shares and rights to purchase shares of the existing shareholders, shares distributed from retained earnings are not recognised as an increase in the value
of the investment and income is not recognised in the consolidated statement of income.
(x)
At any time, Techcombank has outstanding commitments to extend credit. These commitments take the form of approved loans and overdraft facilities. Techcombank also provides financial guarantees and letters of credit to guarantee the performance of customers to third parties. Many of the contingent liabilities
and commitments will expire without being advanced in whole or in part. Therefore the amounts do not represent firm commitment of future cash flows.
(ad) Financial instruments
Interest expenses
Solely for the purpose of providing disclosures about the significance of financial instruments to the financial position and results of operations and the nature
and extent of risk arising from financial instruments, Techcombank classifies its financial instruments as follows:
Interest expenses are recognised in the consolidated statement of income on an accrual basis.
(y)
Operating lease payments

Payments made under operating leases are recognised in the consolidated statement of income on a straight-line basis over the term of the lease. Lease
incentives received are recognised in the consolidated statement of income as an integral part of the total lease expense.
(z) Taxation
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the consolidated statement of income.
Current tax is the expected tax payable on the taxable income for the period, using tax rates enacted or substantially enacted at the balance sheet date, and
any adjustment to tax payable in respect of previous period.
Deferred tax is provided using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred tax provided is based on the expected manner of realisation or
settlement of the carrying amount of assets and liabilities using tax rates enacted or substantively enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be utilised.
Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
(aa) Earnings per share
Techcombank presents its basic earnings per share (EPS) for its ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to the
ordinary shareholders of Techcombank by the weighted average number of ordinary shares outstanding during the year.
Diluted EPS is determined by adjusting the profit or loss attributable to the ordinary shareholders of Techcombank and the weighted average number of
ordinary shares outstanding during the period for the effect of all dilutive instruments, include convertible bond. Dilutive ordinary shares have dilution effect
only when their conversions to ordinary shares could reduce earnings per share or increase loss per share. If potential ordinary shares do not have dilutive
effect, Techcombank does not present diluted EPS.
The weighted average number of shares outstanding during the year takes into account the effect of mandatory convertible bonds in issue and the change
in conversion rate due to bonus shares issuance or dividend in shares during the year.
(ab) Segment reporting
A segment is a distinguishable component of Techcombank that is engaged either in providing related products or services (business segment), or in providing products or services within a particular economic environment (geographical segment), which is subject to risks and rewards that are different from those
of other segments. Techcombanks primary format for segment reporting is based on geographical segments; Techcombanks secondary format for segment
reporting is based on business segments.
98
Form B05/TCTD-HN
(i)
Financial assets
Financial assets recognised at fair value through profit or loss
A financial asset at fair value through profit or loss is a financial asset that meets either of the following conditions:
It is considered by management as held for trading. A financial asset is considered as held for trading if:
- it is acquired principally for the purpose of selling it in the near term;
- there is evidence of a recent pattern of short-term profit-taking; or
- a derivative (except for a derivative that is financial guarantee contract or a designated and effective hedging instrument).
Upon initial recognition, it is designated by Techcombank as at fair value through profit or loss.
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and a fixed maturity that Techcombank has the positive
intention and ability to hold to maturity, other than:
Financial assets that, upon initial recognition, were categorised as such recognised at fair value through profit or loss statements;
Financial assets already categorised as available-for-sale;
Financial assets that meet the definitions of loans and receivables.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, other than those:
that Techcombank intends to sell immediately or in the near term, which are classified as held for trading, and those that the entity on initial recognition
designates as at fair value through profit or loss;
that Techcombank, upon initial recognition, designates as available-for-sale; or
for which Techcombank may not recover substantially all of its initial investment, other than because of credit deterioration, which are classified as available-for-sale.
Available-for-sale investments
Available-for-sale assets are non-derivative financial assets that are designated as available-for-sale or are not classified as:
Financial assets at fair value through profit or loss;
Held-to-maturity investments; or
Loans and receivables.
99
(ii)
Form B05/TCTD-HN
6.
Financial liabilities
Financial liabilities at fair value through profit or loss
BALANCES WITH THE STATE BANK OF VIETNAM

Balances with SBV consist of a compulsory reserve for liquidity and a current account.
A financial liability at fair value through profit or loss is a financial liability that meets either of the following conditions:
Under the State Bank of Vietnams regulations relating to the compulsory reserve, banks are permitted to maintain a floating balance for the compulsory
reserve requirement (CRR). The monthly average balance of the reserves must not be less than CRR rates multiply with preceding months average
balances of deposits in scope as follows:
It is considered by management as held for trading. A financial liability is considered as held for trading if:
- it is incurred principally for the purpose of repurchasing it in the near term;
Deposits in scope
- there is evidence of a recent pattern of short-term profit-taking; or

- a derivative (except for a derivative that is financial guarantee contract or a designated and effective hedging instrument).
Upon initial recognition, it is designated by Techcombank as at fair value through profit or loss.
31/12/2014
31/12/2013
Deposits in foreign currencies with term of less than 12 months
8%
8%
Deposits in foreign currencies with term of and more than 12 months
6%
6%
The above described classification of financial instruments is solely for presentation and disclosure purpose and is not intended to be a description of how
Deposits in VND with term of less than 12 months
3%
3%
the instruments are measured. Accounting policies for measurement of financial instruments are disclosed in other relevant notes.
Deposits in VND with term of and more than 12 months
1%
1%
31/12/2014
VND million
31/12/2013
VND million
Current account and compulsory reserve in VND
895,410
2,145,665
Current account and compulsory reserve in foreign currencies
272,855
685,129
1,168,265
2,830,794
31/12/2014
31/12/2013
Within the compulsory reserve requirement
0.10%
0.10%
Exceeding the compulsory reserve requirement
0.00%
0.00%
Within the compulsory reserve requirement
0.00%
0.00%
Exceeding the compulsory reserve requirement
0.05%
0.05%
Financial liabilities which are not classified as financial liabilities at fair value through profit or loss are classified as financial liabilities carried at amortised
cost.
CASH AND GOLD ON HAND
Cash on hand in VND

Cash on hand in foreign currencies
Gold on hand
100
CRR rates
Preceding months average balances of:
Financial liabilities carried at amortised cost
5.
Form B05/TCTD-HN
31/12/2014
VND million
31/12/2013
VND million
2,149,520
1,564,022
517,744
686,472
56,378
41,000
2,723,642
2,291,494
Year-end annual interest rates were as follows:

Deposits in VND
Deposits in USD
101
7.
BALANCES WITH AND LOANS TO OTHER CREDIT INSTITUTIONS
31/12/2014
VND million
43,856
1,702,786
66,526
3,839,454
Term deposits
Term deposits in VND
Term deposits in foreign currencies
2,918,092
4,923,500
5,561,701
2,388,974
9,588,234
11,856,655
5,433,374
3,910,622
3,388,864
210,360
9,343,996
3,599,224
(9,770)
(35,132)
18,922,460
15,420,747
31/12/2014
VND million
31/12/2013
VND million
9,770
35,132
-
9,770
35,132
2014
VND million
2013
VND million
35,132
(35,132)
53,611
(18,479)
35.132
2014
VND million
2013
VND million
9,770
2,300
(2,300)
9,770
Allowance for balances with and loans to other credit institutions (i)
Allowance for balances with and loans to other credit institutions consist of:
General allowance for loans to other credit institutions
Specific allowance for balances with other credit institutions
Movements in general allowance for loans to other credit institutions were as follows:
Opening balance
Allowance reversed during the year (Note 30)
Closing balance
31/12/2013
VND million
Current accounts
Current accounts in VND
Current accounts in foreign currencies
Loans
Loans in VND
Loans in foreign currencies
(i)
Form B05/TCTD-HN

Current deposits in VND
Current deposits in foreign currencies
Loans in VND
Loans in foreign currencies
8.
SECURITIES HELD FOR TRADING

Debt securities

Government bonds

Bonds issued by local credit institutions

Bonds issued by local economic entities
Equity securities

Shares issued by local credit institutions

Shares issued by local economic entities
Allowance for diminution in the value of securities held for trading (i)
Listing status of securities held for trading is as follows:

Debt securities
Listed

Unlisted
Equity securities
Listed

Unlisted
Movements in allowance for diminution in the value of securities held for trading were as follows:
Movements in specific allowance for balances with and loans to other credit institutions were as follows:
Opening balance
Allowance made/(reversed) during the year (Note 30)
Closing balance
102
Opening balance
Allowance made during the year (Note 26)
Closing balance
Form B05/TCTD-HN
31/12/2014
0.10%
0.00%
3.40%
0.20%
3.50%
1.15%
1.00%
2.54%
9.60%
1.80%
10.00%
2.30%
31/12/2013
0.00%
0.00%
4.00%
0.50%
5.20%
2.40%
0.50%
12.00%
1.50%
6.70%
1.20%
31/12/2014
VND million
31/12/2013
VND million
1,389,696
101,884
421,689
583,021
105,755
-
42,253
133,796
145,000
87,259
2,089,318
921,035
(3,072)
(1,427)
2,086,246
919,608
31/12/2014
VND million
31/12/2013
VND million
1,389,696
523,574
688,776
-
31,048
145,000
87,259
145,000
2,089,318
921,035
2014
VND million
2013
VND million
1,427
16,538
(14,893)
31,412
21,958
(51,943)
3,072
1,427
103
9.
Form B05/TCTD-HN
DERIVATIVES AND OTHER FINANCIAL LIABILITIES
Total contract nominal value
31/12/2013
Total carrying value
Total contract nominal value
Total carrying value
VND million
Assets/(liabilities)
VND million
VND million
Assets/(liabilities)
VND million
17,133,993
26,040,947
(131,411)
113,002
8,293,520
8,760,283
(105,874)
32,717
43,174,940
(18,409)
17,053,803
(73,157)
2014
VND million
10. LOANS AND ADVANCES TO CUSTOMERS

Loans to local economic entities and individuals
Loans to foreign economic entities and individuals
Discounted bills
Payables on behalf of customers
Loans granted from other borrowed and entrusted funds
Frozen loans and loans awaiting for handling
Analysis of credit quality was as follows:

Current
Special mentioned
Sub-standard
Doubtful
Loss
31/12/2014
VND million
76,478,617
1,915,114
532,325
326,336
1,055,175
80,307,567
%
95.24%
2.38%
0.66%
0.41%
1.31%
100.00%
2013
VND million
79,526,573
6,452
751,838
22,704
-
69,683,693
505,300
1,137
33,614
51,175
80,307,567
70,274,919
31/12/2013
VND million
63,736,184
3,972,491
447,898
1,128,849
989,497
70,274,919
%
90.70%
5.65%
0.64%
1.61%
1.40%
100.00%
According to the Techcombanks report on loans rescheduled without changing in loan group to SBV, as at 31 December 2014, loans kept in the same group
as they were classified before rescheduled in accordance with to Clause 3a, Article 10 of Circular 09 as prescribed in Note 4(i) (31 December 2013: Decision
780, (Note 4(h)) are as follows:
31/12/2014
31/12/2013
VND million
VND million
Rescheduled or extended portions of loans kept in loan group 1
Rescheduled or extended portions of loans kept in loan group 2
104
Loan portfolio by term was as follows:

31/12/2014
Foreign exchange forward contracts

Foreign exchange swap contracts
3,194,152
1,186,784
4,279,772
2,527,104
4,380,936
6,806,876
31/12/2014
VND million
Form B05/TCTD-HN
31/12/2013
VND million
Short term
33,790,244
42.07%
35,073,969
49.91%
Medium term
27,326,600
34.03%
19,421,234
27.64%
Long term
19,190,723
23.90%
15,779,716
22.45%
80,307,567
100.00%
70,274,919
100.00%
Loan portfolio by industry sectors was as follows:
Corporate loans
31/12/2014
VND million
31/12/2013
VND million
49,404,471
61.52%
47,423,467
67.48%
Agriculture, forestry and aquaculture
131,799
0.17%
1,194,386
1.70%
Mining and quarrying
915,800
1.14%
231,310
0.33%
11,825,354
14.73%
14,313,753
20.37%
784,889
0.98%
356,136
0.51%
47,167
0.06%
47,084
0.07%
Construction
2,321,401
2.89%
3,746,689
5.33%
Wholesale and retail trade, repair of motor vehicles, motor

cycles
9,446,877
11.77%
9,893,952
14.08%
Transport, warehouse
3,864,476
4.81%
2,209,017
3.14%
Manufacturing and processing

Electricity, petroleum & hot water
Water supplying and garbage and sewage treatment and
management
Hospitality services
193,809
0.24%
1,984,994
2.82%
Information and communication
1,406,736
1.75%
85,757
0.12%
Finance, banking and insurance
1,078,101
1.34%
244,046
0.35%
15,674,898
19.52%
11,926,047
16.97%
35,322
0.04%
27,969
0.04%
224,720
0.28%
100,980
0.14%
3,000
0.00%
90
0.00%
Education and training
58,558
0.07%
28,073
0.04%
Health care and social work
20,374
0.03%
71,757
0.10%
Recreational, culture, sporting activities
16,761
0.02%
18,644
0.03%
1,255,621
1.56%
873,993
1.24%
98,808
0.12%
68,790
0.10%
30,903,096
38.48%
22,851,452
32.52%
80,307,567
100.00%
70,274,919
100.00%
Real estates
Science and technology
Administrative activities and supporting service
Parties, unions, state management, security and national
defence, social guarantee
Other service activities

Other household services, manufacturing household
consuming goods
Individual loans
105
Loans to customers by ownership and types of customers:
Form B05/TCTD-HN
31/12/2014
%
VND million
49,404,471
61.52%
47.423.467
67.48%
State-owned enterprises
2,029,379
2.53%
3,024,562
4.30%
Other limited companies
32,028,370
39.88%
20,980,870
29.86%
294,375
0.37%
317,631
0.45%
13,845,086
17.24%
22,197,736
31.58%
Private companies
712,333
0.88%
530,959
0.76%
Foreign invested enterprises
258,040
0.32%
216,201
0.31%
Cooperatives, cooperative unions
85,246
0.11%
82,034
0.12%
Administrative units, parties, unions and associations
32,659
0.04%
21,700
0.03%
118,983
0.15%
51,774
0.07%
30,903,096
38.48%
22,851,452
32.52%
80,307,567
100.00%
70,274,919
100.00%
Joint stock companies in which the States holding
Form B05/TCTD-HN
11. ALLOWANCE FOR LOANS AND ADVANCES TO CUSTOMERS
31/12/2013
VND million
Corporate loans
Allowance for loans and advances to customers consist of:
2014
VND million
2013
VND million
General allowance
563,395
518,109
Specific allowance
396,382
668,130
959,777
1,186,239
2014
VND million
2013
VND million
518,109
470,951
percentage is 50% or more

Other joint-stock companies
Others
Individual loans
106
31/12/2014
31/12/2013
Loans and advances in VND
0.00% - 22.00%
0.00% - 23.00%
Loans and advances in USD
0.00% - 10.75%
2.37% - 10.50%
Movements in general allowance for loans and advances to customers were as follows:
Opening balance
260,433
86,323
(215,147)
(39,165)
Closing balance
563,395
518,109
2014
VND million
2013
VND million
668,130
654,184
1,479,270
2,042,613
Reversal of allowance during the year (Note 30)
(301,678)
(650,776)
(1,449,340)
(1,377,891)
396,382
668,130
Movements in specific allowance for loans and advances to customers were as follows:
Opening balance
Utilisation of allowance for doubtful debts during the year

Closing balance
107
Form B05/TCTD-HN
12. INVESTMENT SECURITIES
Listing status of investment securities is as follows:

31/12/2014
VND million
31/12/2013
VND million
Available for sale securities

28,747,074
12,512,524
Government bonds
11,268,962
21,597,457
Corporate bonds
9,688,265
11,989,545
70.228
49,704,301
46,169,754
Equity securities
Government bonds
108
906,885
350,000
2,310,000
880,000
Special bonds issued by Vietnam Asset Management Company (VAMC)
2,980,698
1,823,793
640,044
6,197,583
3,693,837
(923,154)
(18,000)
54,978,730
49,845,591
12,862,524
7,549,366
11,987,780
36,296,440
24,850,304
906,885
15,717,861
23,119,266
16,624,746
23,119,266
2,980,698
1,823,793
70,228
55,901,884
49,863,591
31/12/2014
VND million
31/12/2013
VND million
General allowance for unlisted corporate bonds (*)
140,272
Specific allowance for unlisted corporate bonds (**)
319,247
Allowance for special bonds VAMC (***)
463,635
18,000
923,154
18,000
Corporate bonds
Debt securities
Allowance for diminution in the value of held to maturity securities (i)
28,747,074
Unlisted
Held to maturity securities
31/12/2013
VND million
Listed
Government bonds
Government bonds
31/12/2014
VND million
Debt securities
Debt securities
Shares issued by local credit institutions
Form B05/TCTD-HN
Special bonds issued by VAMC

Unlisted equity securities
Shares issued by local credit institution
(i)
Allowance for diminution in the value of investment securities were comprised of:
109
(*)
Movement of general allowance for unlisted corporate bonds was as follows:
Form B05/TCTD-HN
2014
VND million
2013
VND million
General allowance made for unlisted corporate bonds (Note 30)
153,058
Reversal of general allowance made for unlisted corporate bonds (Note 30)
(12,786)
140,272
Opening balance
Closing balance
(i)
Other long-term investments comprise of:
Form B05/TCTD-HN
31/12/2014
31/12/2013
Share holding
%
Investment at cost
VND million
Share holding
%
Investment at cost
VND million
10.00%
60,000
10.00%
60,000
1.81%
570,405
11.00%
16,500
11.00%
16,500
Smartlink Card JSC
2.00%
1,000
2.00%
1,000
Banking Training and Consultancy JSC
9.87%
1,040
9.87%
1,040
PCB Investment JSC
8.95%
7,962
8.95%
7,962
The Society for Worldwide Interbank Financial

Telecommunication
0.00%
1,005
0.00%
1,005
Vietnam Real Estate Exchange Joint Stock Company
1.00%
660
1.00%
660
Ky An Securities Joint Stock Company
11.00%
748
11.00%
748
Mercury Investment and Trading Joint Stock Company
10.00%
600
10.00%
600
0.50%
50
0.50%
50
10.00%
600
10.00%
600
7.00%
1,400
11.00%
660
11.00%
660
7.28%
36,400
7.28%
36,400
Investments in other credit and similar institutions

Vietnam Chemical Finance JSC
Investments in other economic entities
(**) Movements of specific allowance for diminution in the value of investment securities and unlisted
corporate bonds were as follows:
2014
VND million
2013
VND million
Opening balance
333,676
Reversal of specific allowance made for investment securities during the year (Note 27)
(244,850)
Specific allowance made for unlisted corporate bonds during the year (Note 30)
379,676
Reversal of specific allowance made for unlisted corporate bonds during the year (Note 30)
(60,429)
(88,826)
319,247
2014
VND million
2013
VND million
18.000
454.733
18.000
(9.098)
463.635
18.000
Utilisation of allowance
Closing balance
(***) Movements in allowance for diminution in the value of VAMC bonds was as follows:
Opening balance
Allowance made for VAMC bonds during the year (Note 27)
Reversal of allowance made for VAMC bonds during the year (Note 27)
Closing balance
Vietnam Airlines Corporation

TCO Vietnam Investment JSC
Hue Real Estate Trading and Investment Limited

Liabilities Company
TIC
Hanoi North Urban development JSC
Techcom Developer Project Developing JSC
Northern Electricity Development and Investment JSC
697,630
(ii)
13. LONG-TERM INVESTMENTS
Other long-term investments - cost (i)

Allowance for diminution in the value of long-term investments (ii)
110
2014
VND million
2013
VND million
697,630
128,625
(3,842)
693,788
128,625
Movement of allowance for diminution of other long-term investments are as follows:
Opening balance
Utilisation of allowance during the year
Closing balance
128,625
2014
VND million
2013
VND million
5,242
(1,400)
3,842
111
Form B05/TCTD-HN
Form B05/TCTD-HN
14. TANGIBLE FIXED ASSETS

Year ended 31 December 2014

Buildings & building
improvements
VND million
Office equipment
Vehicles
Other assets
Total
VND million
VND million
VND million
VND million
Additions
Transfer from construction in progress
Other increases
Disposals
Other decreases
Balance at 31 December 2014
Vehicles
Other assets
Total
VND million
VND million
VND million
VND million
Balance at 1 January 2013
50,386
1,051,094
139,303
30,864
1,271,647
83,642
4,379
3,350
91,371
(5,827)
(108,605)
(11,791)
(126,223)
44,559
1,025,209
142,403
22,266
1,234,437
1,640
88,716
6,210
97
96,663
Additions
63,726
4,949
1,940
70,615
Reclassifications
266
352,407
607
353,280
Other increases
3,070
3,070
(4,000)
(18,303)
(4,346)
(1,289)
(27,938)
Disposals
(1,168)
(876)
(35)
(2,079)
(417)
(347,834)
(17,407)
(365,658)
Other decreases
(2,824)
(403)
(122)
(3,349)
105,774
1,105,144
146,814
3,667
1,361,399
44,559
1,025,209
142,403
22,266
1,234,437
8,907
384,416
47,584
10,974
451,881
942
181,007
4,462
3,031
189,442
(211)
(54,785)
(5,948)
(60,944)

9,638
509,280
50,859
8,004
577,781
Charge for the year
3,379
138,314
15,186
3,869
160,748
Charge for the year
297
240,983
241,280
Reclassifications
(520)
(16,199)
(1,613)
(751)
(19,083)
Other increases
115
115
(246,305)
(1,502)
(8,552)
(256,359)
Disposals
(938)
(876)
(15)
(1,829)
12,794
626,073
62,930
2,570
704,367
Other decreases
(535)
(311)
(38)
(884)
9,638
509,280
50,859
8,004
577,781
41,479
666,678
91,719
19,890
819,766
34,921
515,929
91,544
14,262
656,656
Other increases
Disposals
Other decreases

Net book value
112
Office equipment
Cost
Cost
Buildings & building

improvements
VND million
34,921
515,929
91,544
14,262
656,656
92,980
479,071
83,884
1,097
657,032
Net book value
113
Form B05/TCTD-HN
15. INTANGIBLE FIXED ASSETS

Land use rights

VND million
Others
VND million
Total
VND million
Cost
Additions
Other increases
Other decreases
502,955
83,786
13,814
(3,488)
29,885
(6,773)
19,804
442
(16,094)
552,644
83,786
14,256
(26,355)
597,067
23,112
4,152
624,331
Charge for the year
Other increases
Other decreases
171,961
66,842
5,479
(1,791)
465
39
-
4,137
3,290
(5,564)
176,563
70,171
5,479
(7,355)
242,491
504
1,863
244,858
330,994
354,576
29,420
22,608
15,667
2,289
376,081
379,473
Software
VND million
Land use rights

VND million
Others
VND million
Total
VND million
Cost
Additions
Reclassifications
Other decreases
401,821
101,660
(526)
-
21,937
9,061
(1,113)
20,871
207
(1,274)
-
444,629
110,928
(1,800)
(1,113)
502,955
29,885
19,804
552,644
Charge for the year
Reclassifications
Other increases
Other decreases
115,126
57,287
(403)
(49)
420
45
-
2,425
2,687
(977)
2
-
117,971
60,019
(1,380)
2
(49)
171,961
465
4,137
176,563
Net book value

114
Form B05/TCTD-HN
16. INVESTMENT PROPERTY

Software
VND million
Net book value

286,695
330,994
21,517
29,420
18,446
15,667
326,658
376,081
Land use rights

VND million
Buildings
VND million
Total
VND million
19,526
-
1,464,837
137
7,061
(1,905)
1,484,363
137
7,061
(1,905)
19,526
1.470.130
1.489.656
Charge for the year
Disposals
62,894
37,948
(575)
62,894
37,948
(575)
100,267
100,267
19,526
19,526
1,401,943
1,369,863
1,421,469
1,389,389
Land use rights

VND million
Buildings
VND million
Total
VND million
Cost
Transferred from fixed assets
Additions
Other decreases
19,357
169
-
1,335,104
28,465
105,541
(4,273)
1,354,461
28,465
105,710
(4,273)
19,526
1.464.837
1.484.363
Charge for the year
25,068
37,826
25,068
37,826
S d ti ngy 31 thng 12 nm 2013
62,894
62,894
19,357
19,526
1,310,036
1,401,943
1,329,393
1,421,469
Cost
Additions
Transfer from construction in progress
Disposals
Net book value

Net book value

115
Form B05/TCTD-HN
17. OTHER ASSETS

31/12/2014
VND million
31/12/2013
VND million
(i)
These were advances for office rental of the Banks headquarter and branches, the largest amount of which was the deposit for the South Head Office at Lim
Tower Building at No. 9-11, Ton Duc Thang Street, Ben Nghe ward, District 1, Ho Chi Minh City with the amount of VND392 billion.
(ii)
These are receivables from other companies for sales of Techcombanks loans to customers:
Receivables
55,939
66,081
446,190
381,096
Receivables relating to Interest Subsidy Program
33,847
34,005
Advances to suppliers
46,009
47,305
500,000
85,884
39,853
392,610
9,817
747,214
7,108,225
7,656,214
Advances for investment contract (iii)
723,658
Receivables from advance for usance payables at sight L/C (iv)
468,858
45,953
86,105
246
19,940
Receivables from Vietnam Asset Management Company (VAMC)
151,048
Other external receivables
808,134
767,247
10,376,418
10,345,060
3,341,124
5,256,518
17,498
28,578
29,501
44,962
576,824
289,230
87
3,704
606,412
337,896
(786,473)
(51,134)
13,554,979
15,916,918
Internal receivables
Deposits and advances for office rental (i)
Advance to purchase securities

Deposits for gold, commodity and foreign currencies trading in futures markets
Receivables relating to commodities trading in futures market
Loans purchased from asset management companies of domestic commercial joint stock banks
Receivables from the sales of loans to customers (ii)
Construction in progress, advance to purchase fixed assets

Tax overpaid (Note 36)
Accrued interest and fee receivables

Deferred tax assets
Other assets
Materials
Prepayments
Others
Allowance for other assets (v)
116
Form B05/TCTD-HN
Sales contract to licensed economic entities

Sales contract to asset management companies of domestic commercial joint stock banks
31/12/2014
VND million
31/12/2013
VND million
7,108,225
6,427,325
1,228,889
7,108,225
7,656,214
(iii) These were the advances for the purchase of shares of Vietnam Chemical Finance Joint Stock Company (VCFC). At the reporting date, these shares have
been transferred to Techcombank (Note 41).
(iv) There were receivables from importers who were the Techcombanks clients of usance payable at sight imported letter of credit financing service provided
by Techcombank. Accordingly, Techcombank finances the usance letter of credit for the beneficiary (exporters) prior to the matured date. The importers have
advanced a part of these payments to Techcombank to perform these transactions with balance as at 31 December 2014 amounted to VND145,184 million
(Note 21(ii)).
(v)
Movement of allowance for diminution of other assets is as follows:

2014
VND million
2013
VND million
51,134
42,933
Allowance made for the loans sold but not yet collected during the year (Note 30)
749,929
Allowance reversed for the loans purchase during the year (Note 30)
(36,788)
Allowance made for other assets during the year (Note 29)
23,325
8,201
Utilisation of allowance made for other assets
(1,127)
786,473
51,134
Opening balance
Closing balance
117
Form B05/TCTD-HN
18. DEPOSITS AND BORROWINGS FROM OTHER CREDIT INSTITUTIONS

31/12/2013
VND million
Demand deposits
Form B05/TCTD-HN
31/12/2014
VND million
31/12/2013
VND million
17,996,191
15,958,922
1,900,494
1,736,250
101,390,221
91,869,156
8,297,075
9,083,772
Margin deposits in VND
1,091,358
463,471
Margin deposits in foreign currencies
1,014,471
866,353
131,689,810
119,977,924
31/12/2014
VND million
31/12/2013
VND million
Economic entities
43,888,766
40,972,617
Individuals
87,801,044
79,005,307
131,689,810
119,977,924
31/12/2014
31/12/2013
0.10%
0.50%
0.10%
0,10%
0.00% - 12.00%
0.50% - 14.00%
0.00% - 2.00%
0.10% -
Current accounts
428,025
83,077
51,851
1,383,927
5,648,000
2,765,675
1,718,801
332,369
7,846,677
4,565,048
Demand deposits in foreign currencies
19. DEPOSITS FROM CUSTOMERS

31/12/2014
VND million
Demand deposits in VND
Term deposits
Borrowings
Borrowings in VND
3,186,182
1,150,000
Borrowings in foreign currencies
8,438,549
9,509,926
11,624,731
10,659,926
19,471,408
15,224,974
31/12/2014
31/12/2013
3.00% - 4.60%
3.40% -
8.30%
0.30% - 1.20%
0.20% -
0.50%
Borrowings in VND
3.00% - 4.70%
4.00% -
5.50%
Borrowings in foreign currencies
0.62% - 5.05%
0.32% -
5.05%

Term deposits
Margin deposits
Deposits from customers by type of customers were as follows:
118
8.00%
119
Form B05/TCTD-HN
20. VALUABLE PAPERS ISSUED

Valuable papers issued are categorised by term as follows:
Form B05/TCTD-HN
21. OTHER LIABILITIES

31/12/2014
VND million
31/12/2013
VND million
51,883
1,090,342
1,500,000
More than 5 years (iii)
3,201,740
52,953
Convertible bonds issued (iv)
3,000,000
3,000,000
Up to 12 months (i)
From 12 months up to 5 years (ii)
6,253,623
31/12/2014
VND million
31/12/2013
VND million
1,907,877
1,861,191
127,621
Remittance payables
49,593
137,736
Payable to employees
191,468
203,931
Settlement on behalf of other credit institutions
202,342
90,815
9,814
668,129
Accrued interest and fee payables

Other liabilities
Internal payables
5,643,295
Payable for loans purchased from asset management company

of domestic commercial joint stock banks
(i)
These were certificates of deposits that bore interest rates ranging from 4.50% to 7.05% (31/12/2013: 6.80% to 7.00%) per annum.
Tax payables (i)
141,946
35,171
(ii)
These were bonds that bore interest rates at 10.50% (2013: 10.50% to 14.00%) per annum.
Deferred income
26,560
185,480
3,805
3,477
340,631
470,320
(iii) These were deposit certificates that bore interest rates ranging from 0.10% to 8.80% (2013: 0.10% to 6.80%) per annum.
Advance from customers
(iv) These were convertible bonds issued to shareholders of the Techcombank at the issuance date with term of 10 years. The bonds were issued in 2010 and
Accrued expenses
had an interest rate of 0% per annum for the first 5 years. From the 6th year, interest rate applied is the lower of 15% per annum or ceiling interest rate applied
Payables relating to marketing and promotion activities
31,199
49,292
for equivalent bonds. Bond-holders can convert these bonds to ordinary shares of Techcombank after 5 years. The initial conversion rate is VND17,188.38
Bonus and welfare funds
10,984
371,388
175,755
1,507,351
2,020,106
111,810
3,415,228
3,993,107
31/12/2014
VND million
31/12/2013
VND million
41,929
85,696
14,321
19,962
76
15,133
141,946
35,171
bond value for one ordinary share (par value VND10,000) at the date of issue. Following the issue of bonus shares in 2011, the conversion rate was changed
Other payables (ii)
to VND13,683.04 bond value per share due to the anti-dilution term of the bonds
Provision for off-balance-sheet commitments (iii)
(i)
Tax payables
Value added tax
Corporate income tax
Other taxes
Refer to Note 36 for details of tax payables.
120
121
(ii)
Other payables include:
Payables awaiting for settlement relating to usance payables at sight L/C (*)
(*)
Form B05/TCTD-HN
31/12/2014
VND million
31/12/2013
VND million
145,184
Advance from customers for debt purchase contracts
40,000
Amount kept for customers and awaiting for settlement
88,620
18,703
Other payables
97,584
157,052
371,388
175,755
These are amount importers give advances to Techcombank to pay in advance for exporters in usance payables at sight L/C (Note 17(iv)).
(iii) Provision for off-balance sheet commitments

Movements in general provision for off-balance sheet commitments were as follows:
Opening balance
Provision reversed during the year (Note 30)
Closing balance
2014
VND million
2013
VND million
111,810
116,062
(111,810)
(4,252)
111,810
22. CAPITAL AND RESERVES

Statement of changes in equity
(VND million)
Share
capital
Reserve to
supplement
capital
Financial
reserve
Other
reserves
Total
Reserves
Retained
profits
Total
8,848,079
2,516,873
958,871
3,475,744
965,753
13,289,576
30,000
(30,000)
Net profit for the year
659,071
659,071
Appropriations to equity funds
835,738
60,869
896,607
(896,607)
Utilisation of reserves
(436)
(436)
(436)
Appropriations to bonus and

welfare fund
(28,844)
(28,844)
Other movements
474
474
228
702
8,878,079
3,352,611
1,019,304
474
4,372,389
669,601
13,920,069
Net profit for the year
1,081,858
1,081,858
Appropriations to equity funds
63,170
118,217
181,387
(181,387)
Utilisation of reserves
(2,216)
(2,216)
(2,216)
Appropriations to bonus and

welfare fund
(13,661)
(13,661)
8,878,079
3,415,781
1,135,305
474
4,551,560
1,556,411
14,986,050
Balance
at 1 January 2013
Conversions to share capital
Balance
at 1 January 2014
Balance
at 31 December 2014
122
Form B05/TCTD-HN
123
Form B05/TCTD-HN
24. NET FEE AND COMMISSION INCOME
Share capital
31/12/2014
Authorised share capital
31/12/2013
Number of shares
VND million
Number of shares
VND million
887,807,871
8,878,079
887,807,871
8,878,079
Issued share capital

Ordinary shares
887,807,871
8,878,079
887,807,871
8,878,079
Shares in circulation
Ordinary shares
887,807,871
8,878,079
887,807,871
8,878,079
Guarantee services
98,711
100,525
728,309
Cashiering services
6,342
18,429
Trustee and agency services
1,516
1,759
Consulting services
247,046
112,125
Other services
401,852
188,891
1,665,405
1,150,038
(183,468)
(137,709)
(35,508)
(36,006)
Cashiering services
(50,741)
(55,739)
Consulting services
(143,857)
(74,298)
Other services
(129,248)
(110,043)
(542,822)
(413,795)
1,122,583
736,243
2014
VND million
2013
VND million
250,813
560,436
87,415
268,842
224,861
519,655
872,712
(240,330)
(637,044)
(180,278)
(256,427)
(176,891)
(496,757)
(994,213)
22,898
(121,501)
As mentioned in Note 4(r) and Note 20, mandatory convertible bonds also ranked equally to ordinary shares with regard to Techcombanks residual assets.
Communication charges
Interest income from deposits
Net fee and commission income

330,255
1,030,519
Interest income from loans
7,723,850
7,383,889
Interest income from debt securities investment
4,877,512
4,866,897
12,931,617
13,281,305
(6,687,930)
(8,029,476)
Interest expense for borrowings
(279,180)
(542,787)
Interest expense for valuable papers issued
(191,877)
(373,380)
(7,158,987)
(8,945,643)
5,772,630
4,335,662
Net interest income
25. NET GAIN/(LOSS) FROM TRADING OF FOREIGN CURRENCIES AND GOLD

Income from trading of foreign currencies and gold trading
Foreign exchange trading
Gold trading
Interest and similar expenses from

Interest expense for deposits from customers
Settlement and cash services
2013
VND million
Interest and similar income from
Financial derivatives
Expense for trading of foreign currencies and gold trading

Foreign exchange trading
Gold trading
Financial derivatives
Net gain/(loss) from trading of foreign currencies and gold
124
2013
VND million
909,938
Settlement and cash services
Fee and commission expenses for
2014
VND million
2014
VND million
Fee and commission income from
Nominal value of Techcombanks ordinary share is VND10,000. Each share is entitled to one vote at meetings of Techcombank. Shareholders are entitled to
receive dividend as declared from time to time. All ordinary shares are ranked equally with regard to Techcombanks residual assets.
23. NET INTEREST INCOME
Form B05/TCTD-HN
125
26. NET GAIN FROM TRADING OF SECURITIES HELD FOR TRADING
Form B05/TCTD-HN
2014
VND million
2013
VND million
29. OPERATING EXPENSES
Form B05/TCTD-HN
2014
VND million
2013
VND million
1,626,522
1,385,789
Income from trading of securities held for trading
182,604
137,423
Salaries and related expenses
Expense from trading of securities held for trading
(83,732)
(62,271)
Publication, marketing and promotion
134,965
278,924
Allowance made for diminution in the value of trading securities during the year (Note 8)
(16,538)
(21,958)
14,893
51,943
Office and asset rental
445,031
414,004
Depreciation of fixed assets
268,867
287,287
97,227
105,137
Tax, duties and fees
79,552
109,331
Telecommunication expenses
35,948
36,947
Tools and equipment expenses
73,952
80,800
172,107
173,493
52,762
57,880
Allowance reversed for diminution in the value of trading securities during the year (Note 8)
27. NET GAIN FROM INVESTMENT SECURITIES
2014
VND million
2013
VND million
Income from trading of investment securities
586,459
199,051
Expense from trading of investment securities
(63,170)
(264,991)
244,850
(454,733)
(18,000)
9,098
77,654
160,910
2014
VND million
2013
VND million
411,364
100,215
54,826
63,392
Allowance reversed for diminution in the value of investment securities (Note 12)
Allowance made for VAMC bonds (Note 12)
Allowance reversed for VAMC bonds (Note 12)
28. NET OTHER INCOME
Expenses for maintenance and repair of assets

Expense for electricity, water supply, office hygiene
Expenditure on payment of insurance premium for customers deposits
112,519
106,192
Per diem expenses
42,243
28,588
Other allowance expenses (Note 17)
23,325
8,201
5,242
358,010
388,230
3,431,045
3,355,666
Allowance expenses for long-term investments (Note 13)

Other operating expenses
Other income
From income from other derivatives
From recovery of bad debts previously written off
Interest income from advances for office rental
From others
161,900
519,732
413,139
985,922
738,646
Other expense
126
From expense from other derivatives
(352,403)
(66,418)
From others
(625,072)
(258,096)
(977,475)
(324,514)
8,447
414,132
127
30. ALLOWANCE AND PROVISION EXPENSES
Reversal of general allowance made for loans to other credit institutions
Form B05/TCTD-HN
Note
2014
VND million
2013
VND million
(35,132)
(18,479)
(b) Reconciliation of effective tax rate
Profit before tax
2014
VND million
2013
VND million
1,417,021
878,206
Adjustment for:
Specific allowance made for loans to other credit institutions
9,770
Reversal of specific allowance made for loans to other credit institutions
(2,300)
Tax exempt income
(4,993)
(17,253)
89,898
General allowance made for loans and advances to customers
11
260,433
86,323
Non-deductible expenses
Reversal of general allowance made for loans and advances to customers
11
(215,147)
(39,165)
Other non-taxable income
(7,608)
(761)
(50,136)
(6,374)
1,445,416
852,584
317,992
213,146
Adjustment to increase last year corporate income tax expense
6,336
Effect of different tax rates in subsidiaries
(245)
324,083
213,146
211
Specific allowance made for loans and advances to customers
11
1,479,270
2,042,613
Adjustment of profit arising from consolidation
Reversal of specific allowance made for loans and advances to customers
11
(301,678)
(650,776)
Loss carried forward in subsidiaries
General allowance made for unlisted corporate bonds
12
153,058
Reversal of general allowance made for unlisted corporate bonds
12
(12,786)
Specific allowance made for unlisted corporate bonds
12
379,676
Reversal of specific allowance made for unlisted corporate bonds
12
(60,429)
Allowance made for loans sold but not yet collected
17
749,929
Reversal of allowance for loans purchase
17
(36,788)
Reversal of provision for off-balance-sheet commitments
21
(111,810)
(4,252)
2,258,366
1,413,964
Deferred income
Total taxable income
Total current income tax expense

Adjustment due to tax finalisation
Opening corporate income tax deducted
(a) Recognised in the statement of income
2014
VND million
(194,676)
(38,545)
Adjustment for differences in corporate income tax of previous years
(1,230)
Closing income tax payable/(deducted)
85,455
(19,864)
2013
VND million
Current tax expense

Current year
(19,864)
(217,534)
Tax paid during the year
31. INCOME TAX EXPENSE

(a)
Form B05/TCTD-HN
317,992
213,146
Adjustment to increase last year corporate income tax expense
6,336
Effect of different tax rates in subsidiaries
(245)
324,083
213,146
11,080
335,163
213,146
Deferred tax income

Origination of temporary difference
Income tax expense
128
129
Form B05/TCTD-HN
Effective 1 January 2014, Techcombanks income tax rate is reduced from 25% to 22% (for the years 2014 and 2015), and to 20% from 2016 due to change
in the effective income tax law.
Unearned revenue and tax loss carried forwards
2014
VND million
2013
VND million
17,498
28,578
32. BASIC EARNINGS PER SHARE

(i)
In the normal course of banking business, Techcombank carries out transactions with related parties. The terms of these transactions are approved by the
Techcombanks management.
As at the year-end, there were the following significant balances and transactions with related parties:
Transaction
Balance
31/12/2014
VND million
31/12/2013
VND million
66,492
1,113
2014
VND million
2013
VND million
34
15,885
13,509
100
188
47
29,232
36,553
380
28
EuroFinance Joint Stock Company Shareholder and Related
2014
VND million
2013
VND million
1,081,858
659,071
party having members in the Board of Directors of Techcombank

Demand deposits
Masan Joint Stock Company - Shareholder and Related party
having members in the Board of Directors of Techcombank
Demand deposits
(ii)
Form B05/TCTD-HN
34. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES
(c) Applicable tax rate
(d) Deferred tax assets
Interest expenses
Weighted average number of ordinary shares
2014
VND million
2013
VND million
Issued ordinary shares at the beginning of the year
887,807,871
884,807,871
Effect of convertible bonds
213,199,321
213,199,321
Other receivables
552,198
Demand deposits
9,621
11,122
104,614
226,500
1,101,007,192
1,098,559,390
Masan Group Corporation - Shareholder and Related party
Effect of shares issued for employees during the year

Weighted average number of ordinary shares in the year
Term deposits
134,623
Interest expenses
SENCO Joint Stock Company - Shareholder and Related party
(iii) Basic earnings per share

Basic earnings per share
33. CASH AND CASH EQUIVALENTS
2014
VND million
2013
VND million
983
600

Demand deposits
Loans
484
146
2,538
1,490
Interest income
Interest expenses
The European Plastic Window Joint Stock Company - Related
party having members in the Board of Directors of Techcombank
2014
VND million
2013
VND million
2,723,642
2,291,494
Interest income
Interest expenses
Balances with the SBV
1,168,265
2,830,794
Investment in SBV bills with original terms of not exceeding three months
5,204,019
3,670,246
Balances with credit institutions with original terms of not exceeding three months
8,971,549
8,404,194
Demand deposits
Loan
22,277
5,365
284,165
478,430
Viet Nam T&M Investment Joint Stock Company - Related party

of which major voting rights are held by a close family member
of members in the Board of Directors of Techcombank
18,067,475
130
17,196,728
Demand deposits
45
131
Form B05/TCTD-HN
31/12/2014
VND million
Vinh Trade Centre Investment Joint Stock Company Related party having members in the Board of Directors
of Techcombank
Demand deposits
Interest income
Interest expenses
Hanoi - Moscow Plaza Investment Joint Stock Company
- Shareholder and Related party having members in the
Board of Directors of Techcombank
Demand deposits
Masan Consumer Corporation (formerly call: Masan Food
Corporation) - Shareholder and Related party having
members in the Board of Directors of Techcombank
Demand deposits
Term deposits
Interest expenses
HSBC Bank (Vietnam) Ltd.- Shareholder
Demand deposits
Interest income
Interest expenses
Eurolands - Eurowindow Holdings branch
- Shareholder and Related party having members
in the Board of Directors of Techcombank
Demand deposits
Board of Directors and Board of Supervision
Remuneration for members of Board of Directors
and Board of Supervision
Board of Management
Remuneration for members of Board of Management
132
31/12/2013
VND million
2014
VND million
Form B05/TCTD-HN
35. EMPLOYEE BENEFITS
Transaction
Balance
2013
VND million
2014
2013
Total employees as at 31 December (employees)
7,419
7,290
Average number of employees in the year (employees)
7,355
7,229
1,314,573
1,127,677
311,949
258,112
1,626,522
1,385,789
Average monthly salary (VND million)
15
13
Average monthly remuneration (VND million)
18
16
Employees remuneration
23
32
1. Basic salaries (VND million)

-
12
141
3,186,100
688
2,824,100
55,993
39
45,250
55,959
139,885
81,044
8,483
19
8,614
26,804
21,984
62,502
50,837
2. Other allowance (VND million)
28
133
Form B05/TCTD-HN
36. OBLIGATIONS TO THE STATE BUDGET (Note 17 and Note 21)
37. SEGMENT REPORTING

Geographical segments
Value added tax

Other taxes
Form B05/TCTD-HN
VND million
31/12/2014
Receivable
VND million
31/12/2014
Payable
VND million
VND million
(112,839)
41,929
41,929
324,083
(1,230)
(217,534)
(241)
85,696
85,455
135,300
(136,117)
(5)
14,321
14,316
1/1/2014
Incurred
Adjustment
Paid
VND million
VND million
VND million
19,962
134,806
(19,864)
15,133
Techcombank reports segment information by main regions in Vietnam as follows:
31/12/2014
15,231
594,189
(1,230)
(466,490)
(246)
141,946
141,700
1/1/2013
Incurred
Adjustment
Paid
VND million
VND million
VND million
31/12/2013
Payable
VND million
31/12/2013
VND million
31/12/2013
Receivable
VND million
VND million
22,841
288,769
(291,648)
19,962
19,962
(194,676)
213,146
211
(38,545)
(19,940)
76
(19,864)
16,882
117,588
(119,337)
15,133
15,133
(154,953)
619,503
211
(449,530)
(19,940)
35,171
15,231
The North
The Central
The South
Total
31/12/2014
31/12/2013
31/12/2014
31/12/2013
31/12/2014
31/12/2013
31/12/2014
31/12/2013
Assets
124,254,051
105,658,924
3,969,415
6,078,157
47,678,328
47,159,582
175,901,794
158,896,663
Liabilities
109,948,813
92,648,590
3,885,106
5,923,604
47,081,825
46,404,400
160,915,744
144,976,594
996,125
974,989
5,247
11,276
35,133
46,472
1,036,505
1,032,737
(VND million)
Fixed assets
Value added tax

Other taxes
134
The North
(VND million)
Revenue
Expenses (*)
Profit before tax
(*)
The Central
The South
Total
2014
2013
2014
2013
2014
2013
2014
2013
12,360,248
11,158,503
371,348
603,393
4,144,369
4,891,367
16,875,965
16,653,263
(11,624,132)
(11,227,030)
(287,039)
(445,085)
(3,547,773)
(4,102,942)
(15,458,944)
(15,775,057)
736,116
(68,527)
84,309
158,308
596,596
788,425
1,417,021
878,206
These are direct expenses excluding allocation of Head Offices costs.
135
Form B05/TCTD-HN
38. RISK MANAGEMENT
Business segments
Techcombank operates in the retail banking, assets management, securities trading and fund management segments.
Banking
(VND million)
31/12/2014
Asset management
31/12/2013
31/12/2014
31/12/2013
Securities trading
31/12/2014
31/12/2013
Fund management
31/12/2014
Elimination
31/12/2013
31/12/2014
This section provides details of Techcombanks exposure to risk and describes the methods used by management to control risk. The most important types
of financial risk to which Techcombank is exposed are credit risk, liquidity risk and market risk.
Total
31/12/2013
31/12/2014
31/12/2013
Assets
176,218,011
157,227,975
1,783,159
2,685,317
1,240,332
506,948
54,597
47,624
(3,394,305)
(1,571,201)
175,901,794
158,896,663
Liabilities
161,543,558
143,599,987
1,250,233
2,190,970
64,287
2,203
1,971
4,635
(1,944,305)
(821,201)
160,915,744
144,976,594
1,012,148
1,000,346
20,392
31,230
3,965
1,161
1,036,505
1,032,737
Fixed assets
Form B05/TCTD-HN
(i)
Financial risk management policy

The Board of Directors has overall responsibility for the establishment and oversight of Techcombanks financial risk management policy to facilitate its
business activities to thrive safely and sustainably.
Having taken that responsibility, the Board of Directors appropriately promulgates risk management policies and strategies, establish business limit,
approve high-value business transactions in accordance with both legal and internal requirements, and determine organisational structure and key
managing directors.
Risk management strategies and policies are adhered to Techcombanks charter and General Shareholders Meeting resolution.
Banking
(VND million)
Revenue
Expenses
Profit before tax
Asset management
2014
2013
2014
2013
Securities trading
2014
2013
Fund management
2014
Elimination
2013
2014
Audit Risk Committee (ARCO) is established by the Board of Directors for the purpose of undertaking a number of functions and tasks related to the audit,
supervising and monitoring risk management of the Banks operation which are assigned/authorised by the Board of Directors.
Total
2013
2014
2013
16,412,655
16,461,237
500,949
376,916
402,636
159,524
19,833
8,698
(460,108)
(353,112)
16,875,965
16,653,263
(15,071,091)
(15,726,128)
(451,290)
(366,412)
(207,506)
(27,516)
(7,633)
(8,113)
278,576
353,112
(15,458,944)
(15,775,057)
1,341,564
735,109
49,659
10,504
195,130
132,008
12,200
585
(181,532)
1,417,021
878,206
ARCO is responsible for promulgating and monitoring risk management framework, risk appities and risk management policies in Techcombanks operation
activities and approving market risk limit, credit risk limit for each industry, business line and other general risk limits of Techcombank.
(ii)
Credit risk
Techcombank is subject to credit risk through its lending and investing activities and in cases where it acts as an intermediary on behalf of customers or
other third parties or issues guarantees. The risk that counterparties might default on their obligations is monitored on an ongoing basis. To manage the level
of credit risk, Techcombank attempts to deal with counterparties of good credit standing, and, when appropriate, obtains collateral. Techcombanks primary
exposure to credit risk arises through its loans and advances. The amount of credit exposure in this regard is represented by the carrying amounts of the assets on the balance sheet. In addition, Techcombank is exposed to off balance sheet credit risk through commitments to extend credit and guarantees issued.
Techcombank manages credit risk by using various tools: development and issuance of internal policies and regulations on credit risk management;
development of credit procedures; regular review of credit risk; development of a credit rating system and loan classification; setting up authorisation levels
within the credit approval process.
136
137
Form B05/TCTD-HN
The following table presents the maximum exposure to credit risk from balance sheet, before taking account of any collateral held or other credit
enhancements.
31/12/2014
31/12/2013
VND million
VND million
Balances with and loans to other credit institutions - gross
18,932,230
15,455,879
1,913,269
688,776
Loans and advances to customers - gross
80,307,567
70,274,919
Investment securities - gross (i)
55,901,884
49,793,363
Others financial assets - gross
13,717,296
15,601,578
170,772,246
151,814,515
Securities held for trading - gross (i)
(i)
Form B05/TCTD-HN
Information about financial assets that are impaired was as follows:

Not overdue
Less than 90
days overdue
91 - 180 days
overdue
181 - 360 days

overdue
More than 360

days overdue
Total
Balances with and loans to at

other credit institutions - gross
198,500
198,500
Loans and advances to

customers - gross
1,103,485
375,246
242,797
857,557
2,579,085
Investment securities - gross
2,980,698
577,227
3,557,925
7,118,042
2,763
53,847
7,174,652
10,098,740
1,106,248
375,246
242,797
1,687,131
13,510,162
(VND million)
Securities held for trading and available-for-sale securities exclude investments in equity securities:
As at 31 December 2013
Information about credit quality of financial assets that are neither past due nor impaired was as follows:
Balances with and loans to at other credit institutions - gross

Securities held for trading - gross
31/12/2014
VND million
31/12/2013
VND million
18,733,730
15,455,879
1,913,269
688,776
Loan and advance to customers - gross
76,478,617
63,736,184
52,343,959
47,344,570
6,542,644
14,840,026
156,012,219
142,065,435
Information about financial assets that are past due but not impaired was as follows:
Less than 90
days overdue
91 - 180 days
overdue
181 - 360 days

overdue
More than 360

days overdue
Total

customers - gross
633,771
160,958
479,979
107,366
1,382,074
300,000
325,000
625,000
933,771
160,958
479,979
432,366
2,007,074
(VND million)
Information about financial assets that are impaired was as follows:

Information about financial assets that are past due but not impaired was as follows:
(VND million)
Loan and advance to
customers gross
138
Not past due
Less than 90
days overdue
91 - 180 days
overdue
181 - 360 days

overdue
More than 360

days overdue
Total
3,338,720
286,940
648,870
882,131
5,156,661
1,823,793
1,823,793
Other financial assets - gross
747,214
14,338
761,552
2,571,007
3,338,720
286,940
648,870
896,469
7,742,006
(VND million)
Less than
90 days overdue
91 - 180 days
overdue
181 - 360 days

overdue
More than 360

days overdue
Total
811,629
157,079
83,539
197,618
1,249,865
811,629
157,079
83,539
197,618
1,249,865
Loans to customers - gross
139
Form B05/TCTD-HN
Book values of collateral assets held by Techcombank at the year-end which were revaluated annually or at loan granting dates in accordance with internal
policies of Techcombank, as follow:
31/12/2014
VND million
31/12/2013
VND million
111,586,287
98,546,071
Equipment and machinery
33,874,777
36,272,830
37,624,505
28,442,971
Others
41,823,363
50,791,715
224,908,932
214,053,587
Real estates
(iii) Liquidity risk
Form B05/TCTD-HN
Overdue
less than
3 months
Overdue
more than
3 months
Up to
1 month
From 1 to
3 months
From 3 to
12 months
From 1 year
to 5 years
Over 5
years
Total
2,723,642
2,723,642
1,168,265
1,168,265
Balances with and loans to other

credit institutions - gross
198,500
8,716,568
6,803,544
3,018,720
194,898
18,932,230
2,037,360
51,958
2,089,318
1,915,114
1,913,836
5,044,307
10,520,859
25,005,617
28,094,868
7,812,966
80,307,567
(VND million)
Assets

customers - gross
Liquidity risk arises in the general funding of Techcombanks activities and in the management of positions. It includes both the risk of being unable to fund
assets at appropriate maturities and rates and the risk of being unable to liquidate an asset at a reasonable price and in an appropriate time frame.
577,227
4,414,292
3,563,895
5,866,422
34,001,954
7,478,094
55,901,884
Long term investments - gross
697,630
697,630
The following table provides an analysis of the monetary assets and liabilities of Techcombank into relevant maturity groupings based on the remaining
period from the balance sheet date to repayment date. In practice, the actual maturity of monetary assets or liabilities may differ from contractual terms
based on both verbal agreements between the parties and addenda to the contracts which may exist.
Fixed assets and investment

properties
65
1,307
18,234
458,358
1,947,930
2,425,894
2,763
53,847
9,447,149
828,359
919,713
2,788,368
301,253
14,341,452
1,917,877
2,743,410
33,551,648
21,717,964
34,828,706
65,538,446
18,289,831
178,587,882
Other assets - gross
Liabilities
Deposits and borrowings from
other credit institutions
10,381,539
4,205,502
3,642,508
1,241,859
19,471,408
63,596,877
28,309,968
23,117,188
14,473,805
2,191,972
131,689,810
Derivative and other financial

liabilities
(80,524)
(7,031)
102,733
3,231
18,409
Other borrowed and entrusted

funds
200
3,296
11,524
45,770
6,476
67,266
47,882
1,277
4,231
5,200,181
1,000,052
6,253,623
Other liabilities
2,139,345
289,088
527,577
436,427
22,791
3,415,228
76,085,319
32,802,100
27,405,761
21,401,273
3,221,291
160,915,744
2,743,410 (42.533.671)
(11,084,136)
7,422,945
44,137,173
15,068,540
17,672,138
Net liquidity gap
140
1,917,877
141
Form B05/TCTD-HN
Form B05/TCTD-HN
Overdue
less than
3 months
Overdue
more than
3 months
Up to
1 month
2,291,494
2,291,494
2,830,794
2,830,794

credit institutions - gross
8,135,649
3,986,092
2,442,500
650,000
241,638
15,455,879
921,035
921,035
3,972,491
2,566,244
5,009,640
9,269,439
25,264,376
10,510,562
13,682,167
70,274,919
300,000
325,000
3,670,180
1,634,821
12,979,221
28,131,925
2,822,444
49,863,591
128,625
128,625

properties
108,842
76
10,397
402,931
1,931,960
2,454,206
14,338
8,608,934
1,059,253
3,272,882
2,998,853
13,792
15,968,052
4,272,491
2,905,582
31,576,568
15,949,681
43,969,376
42,694,271
18,820,626
160,188,595
(VND million)
From 1 to
3 months
From 3 to
12 months
From 1 year
to 5 years
Over 5
years
Total
Liabilities
142
6,844,382
4,578,308
1,897,899
1,899,225
5,160
15,224,974
67,742,527
20,762,464
30,393,909
1,048,752
30,272
119,977,924
Derivative and other financial

liabilities
(50,355)
24,418
99,489
(395)
73,157

funds
2,505
3,667
13,798
40,212
3,955
64,137
1,070,335
70,000
1,500,000
3,000,037
2,923
5,643,295
Other liabilities
1,407,829
842,990
1,544,404
85,542
532
3,881,297
77,017,223
26,281,847
35,449,499
6,073,373
42,842
144,864,784
2,905,582 (45,440,655)
(10,332,166)
8,519,877
36,620,898
18,777,784
15,323,811
The following tables show Techcombanks assets and liabilities categorised by the contractual re-pricing or maturity date and the effective interest rates at
the balance sheet date.

Net liquidity gap
Interest rate risk

Techcombanks operations are subject to the risk of interest rate fluctuations to the extent that interest-earning assets and interest-bearing liabilities mature at
different times or in differing amounts. Some assets have indefinite maturities or interest rate sensitivities and are not readily matched with specific liabilities.
Assets

customers - gross
(iii) Market risks
4,272,491
143
Form B05/TCTD-HN
(VND million)
Form B05/TCTD-HN
Overdue Not influence
by changes of
interest rate
Up to
1 month
From 1 to
3 months
From 3 to
6 months
From 6 to
12 months
From 1 year
to 5 years
Upon 5
years
Total
Assets
(VND million)
Overdue Not influence

by changes of
interest rate
Up to
1 month
From 1 to
3 months
From 3 to
6 months
From 6 to
12 months
From 1 year
to 5 years
Upon 5
years
Total
Assets
2,723,642
2,723,642
2,291,494
2,291,494
1,168,265
1,168,265
2,830,794
2,830,794
198,500
1,545,842
7,170,726
6,998,442
1,306,260
1,712,460
18,932,230
Balances with and loans to

3,904,705
4,230,944
4,950,230
2,050,000
320,000
15,455,879
691,693
7,929
1,389,696
2,089,318
232,259
688,776
921,035
3,828,950
46,314,366
9,536,991
9,381,636
5,522,355
5,247,106
476,163
80,307,567

customers - gross
6,538,735
36,037,919
10,161,204
6,606,134
9,308,639
1,602,520
19,768
70,274,919
577,227
146,147
3,985,969
8,182,663
5,322,603
5,596,500
28,210,199
3,880,576
55,901,884
625,000
347,970
4,300,018
4,555,024
6,397,000
9,273,630
20,586,004
3,778,945
49,863,591
697,630
697,630
128,625
128,625

property
2,425,894
2,425,894

property
2,454,206
2,454,206
56,610
14,284,842
14,341,452
14,338
15,453,714
500,000
15,968,052
4.661.287
23,683,955
57,471,061
24,718,096
16,010,499
12,839,244
34,847,001
7.178.073
27.643.767
44.568.881
20.166.458
15.053.134
18.902.269
22.877.300

1,467,005
5,996,037
4,578,308
3,158,069
25,555
19,233,310
49,040,896
20,752,610
15,713,955
14,410,417
818,215
Balances with and loans to

customers - gross
4,356,739 178,587,882
Liabilities
3.798.713 160.188.595
Liabilities

Derivatives and other financial

liabilities
479,875 110,318,086
4,205,502
4,462,734
5,211
- 119,471,408
22,107,516
42,597,073
27,885,760
13,356,262
9,081,220
16,648,734
13,245 131,689,810
(77,661)
(7,031)
24,098
75,772
3,231
18,409
Derivatives and other financial

liabilities
(50,751)
24,418
32,019
67,471
73,157

funds
19,771
47,495
67,266

funds
36,818
27,319
64,137
(11,453)
59,335
1,277
2,051
2,180
6,200,030
203
6,253,623
1,070,341
70,000
500,000
4,000,030
2,924
5,643,295
Other liabilities
3,415,228
3,415,228
Other liabilities
3,881,297
3,881,297
25,991,166
52,916,604
32,133,003
17,845,145
9,164,383
22,851,995
24,581,612
56,093,341
25,452,655
18,904,043
15,003,443
4,818,245
4,661,287
(2,307,211)
4,554,457
(7,414,907)
(1.834.646)
3,674,861
11,995,006
3,062,155 (11,524,460)
(5,286,197)
(3,850,909)
3,898,826
18,059,055
Interest sensitivity gap of

balance sheet items
144
13,448 160,915,744
4,343,291
17,672,138
Interest sensitivity gap of

balance sheet items
7,178,073
15,224,974
8,521 119,977,924
11,445 144,864,784
3,787,268
15,323,811
145
Form B05/TCTD-HN
Sensitivity analysis
The following table estimates the sensitivity of profit or loss for the year ended 31 December and equity as at 31 December of Techcombank from the
assumed increase in lending and funding interest. The result is reversed from the assumed decrease in lending and funding interest.
(VND million)
Assets
Currency
Increase in interest rate
Impact to net profit and equity

(VND million)
VND
3.0%
212,951
USD
1.5%
(78,134)
Increase in interest rate

(VND million)
VND
3.0%
159,714
USD
1.5%
(58,600)
Currency
Form B05/TCTD-HN
VN
USD
EUR
Gold
Other
currencies
Total
2,149,520
329,432
66,125
56,378
122,187
2,723,642
895,410
272,855
1,168,265
Balances with and loans to other credit

institutions - gross
8,395,323
10,135,919
54,862
346,126
18,932,230
2,089,318
2,089,318
72,567,141
7,711,891
24,555
3,980
80,307,567
54,845,783
1,056,101
55,901,884
697,630
697,630
2,425,894
2,425,894
13,303,297
1,025,576
130
12,449
14,341,452
157,369,316
20,531,774
145,672
56,378
484,742
178,587,882
9,262,207
10,209,191
10
19,471,408
120,477,770
10,193,760
607,766
410,514
131,689,810
3,392,322
(3,026,170)
27,318
(375,061)
18,409
67,266
67,266
6,253,596
27
6,253,623
Other liabilities
3,172,373
237,686
3,835
1,334
3,415,228
142,625,534
17,614,494
638,929
36,787
160,915,744
FX position on balance sheet
14,743,782
2,917,280
(493,257)
56,378
447,955
17,672,138
FX position off-balance sheet
4,352,764
(4,329,173)
411,488
(452,269)
(17,190)
19,096,546
(1,411,893)
(81,769)
56,378
(4,314)
17,654,948
Long - term investment - gross

Fixed assets and investment properties
Currency risk
Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. Techcombank was incorporated and
operates in Vietnam, with VND as its reporting currency. The major currency in which Techcombank transacts is VND. Techcombanks loans and advances
were mainly denominated in VND with the remainder mainly in USD. However, some of Techcombanks other assets are in currencies other than the reporting
currency and USD. Techcombanks management has set limits on positions by currency in accordance with Techcombanks policy and SBVs regulation.
Positions are monitored on a daily basis and hedging strategies used to ensure positions are maintained within established limits.
Liabilities
Total FX position on and off-balance sheet
146
147
Form B05/TCTD-HN
VN
USD
EUR
Gold
Other
currencies
Total
1,564,022
447,231
87,739
41,000
151,502
2,291,494
2,145,665
685,129
2,830,794
Assets
Balances with and loans to other credit

institutions - gross
5,843,689
160,745
431,869
15,455,879
921,035
921,035
61,254,995
8,944,405
71,373
4,146
70,274,919
48,290,312
1,573,279
49,863,591
128,625
128,625
2,454,206
2,454,206
15,852,810
114,698
544
15,968,052
Long - term investment - gross

Fixed assets and investment properties
141,631,246
17,608,431
320,401
41,000
587,517
160,188,595
3,998,752
11,226,211
11
15,224,974
108,289,063
10,759,188
441,204
488,469
119,977,924
4,099,997
(3,983,255)
(4,028)
(29,531)
(10,026)
73,157
64,137
64,137
5,642,970
325
5,643,295
Other liabilities
3,700,190
139,692
1,960
39,448
3,881,297
125,795,109
18,142,161
439,147
(29,524)
517,891
144,864,784
FX position on balance sheet
15,836,137
(533,730)
(118,746)
70,524
69,626
15,323,811
FX position off-balance sheet
1,745,158
(1,817,616)
115,736
(6,882)
36,396
17,581,295
(2,351,346)
(3,010)
70,524
62,744
15,360,207
Liabilities
Total FX position on and off-balance sheet
148
Form B05/TCTD-HN
Currency
9,019,576
The following table estimates the sensitivity of the profit or loss for the year ended and equity as at balance sheet date of Techcombank with the assumption
that all other variables, in particular interest rates, remain constant in the cases:
(VND million)
Level of increase

(VND million)
USD
1%
(14,262)
Euro
1%
(826)
Vng
3%
1,744
(13.344)
Currency
Level of increase

(VND million)
USD
1%
(23,751)
Euro
1%
(30)
Vng
3%
1,587
(22.194)
39. LEASE COMMITMENTS

The minimum lease payments under operating leases commitments are as follows:
31/12/2014
VND million
31/12/2013
VND million
Within one year
114,278
6,478
Within two and five years
215,989
24,834
330,267
31,312
40. DISCLOSURE OF FINANCIAL INSTRUMENTS

Disclosure of fair value
Circular No. 210/2009/TT-BTC stipulated by Ministry of Finance dated 6 November 2009 requires Techcombank to disclose fair value of each class of
financial assets and financial liabilities in a way that permits it to be compared with its carrying amount.
The following table presents book value and fair value of Techcombanks financial assets and liabilities as at 31 December 2014:
149
Form B05/TCTD-HN
Carrying value
At fair value
through profit
or loss
Held- to
maturity
Loans and
receivables
Fair value
Available
-for-sale
(VND million)
Financial
liabilities
determined
at amortised
cost
Carrying value
Total of
book value
Fair value
At fair value
through profit
or loss
Held- to
maturity
Loans and
receivables
Available
-for-sale
Financial
liabilities
determined
at amortised
cost
Total of
book value
(VND million)
Financial assets
Financial assets
I
2,723,642
2,723,642
2,723,642
2,291,494
2,291,494
2,291,494
II
Balances with the State Bank of

Vietnam
1,168,265
1,168,265
1,168,265
II
Balances with the State Bank of

Vietnam
2,830,794
2,830,794
2,830,794
III

credit institutions
18,922,460
18,922,460
(*)
III

credit institutions
15,420,747
15,420,747
(*)
2,086,246
2,086,246
(*)
IV Trading securities
919,608
919,608
(*)
VI Loans and advances to customers
79,347,790
79,347,790
(*)
VI Loans and advances to customers
69,088,680
69,088,680
(*)
VII Investment securities
5,716,623
49,262,107
54,978,730
(*)
VII Investment securities
3,675,837
46,169,754
49,845,591
(*)
VIII Other long-term investments
693,788
693,788
(*)
VIII Other long-term investments
128,625
128,625
(*)
13,717,296
13,717,296
(*)
15,496,499
15,496,499
(*)
2,086,246
5,716,623
115,879,453
49,955.895
173,638,217
919,608
3,675,837
105,128,214
46,298,379
156,022,038
IV Trading securities
Other financial assets
Other financial assets
II
Amount due to other credit institutions
19,471,408
19,471,408
(*)
II
Amount due to other credit institutions
15,224,974
15,224,974
(*)
III
131,689,810
131,689,810
(*)
III
119,977,924
119,977,924
(*)
18,409
18,409
(*)
IV Derivatives and other financial liabilities
64,137
64,137
(*)
67,266
67,266
(*)
73,157
73,157
(*)
VI Valuable papers issued
6,253,623
6,253,623
(*)
VI Valuable papers issued
5,643,295
5,643,295
(*)
VII Other financial liabilities
3,246,722
3,246,722
(*)
VII Other financial liabilities
3,660,646
3,660,646
(*)
18,409
160,728,829
160,747,238
73,157
144,570,976
144,644,133
IV Derivatives and other financial liabilities

V
(*)
150
Form B05/TCTD-HN
Techcombank has not determined fair values of these financial instruments for disclosure in the consolidated financial statements because information
about their market prices is not available and there is currently no guidance on determination of fair value using valuation techniques under the Vietnamese
Accounting Standards or the Vietnamese Accounting System. There fair values of these financial instruments may differ from their carrying amounts.
(*)
Techcombank has not determined fair values of these financial instruments for disclosure in the consolidated financial statements because information
about their market prices is not available and there is currently no guidance on determination of fair value using valuation techniques under the Vietnamese
Accounting Standards or the Vietnamese Accounting System. There fair values of these financial instruments may differ from their carrying amounts.
151
Form B05/TCTD-HN
41. POST BALANCE SHEET EVENT

On 18 December 2014, the SBV has given initial approval to the takeover of the Vietnam Chemical Finance Joint stock Company (VCFC) by
Techcombank and Techcombank has 90 days to purchase VCFC shares and submits proposals to the SBV for consideration. On 9 January 2015, Vietnam
Chemical Finance Joint stock Company announced that Vietnam Technological and Commercial Joint stock Bank had completed transferring 53,922,500
shares with the price of VND723,658 million (Note 17(iii)), equivalent to 89.87% VCFCs chartered capital, increasing total owned shares at VCFC to 99.87%.
However, as at reporting date, the SBV has not officially approved on the takeover of Vietnam Chemical Finance Joint stock Company by Techcombank.
Prepared by:
Bui Thi Khanh Van

Chief Accountant
Approved by:
Thai Ha Linh
Do Tuan Anh
16 March 2015
152
153
SHAREHOLDERS INFORMATION
CORPORATE INFORMATION
Banking Licence No.
Equity in 2014
At the end of 2014, the charter capital of Techcombank remained unchanged at VND 8,878 billion (eight thousand, eight hundred and seventy eight billion
Vietnamese Dong)
Board of Directors
Mr. Ho Hung Anh

Mr. Nguyen Canh Son
Mr. Do Tuan Anh
Mr. Lee Boon Huat
Chairman
Vice Chairman
Vice Chairman
Member
Member
Member
Independent Member
Board of Supervision
Mr. Hoang Huy Trung

Mr. Mag Rec Soc Oec Romauch Hannes
Ms. Nguyen Thu Hien
Ms. Bui Thi Hong Mai
Head of Board of Supervision and Standing Member

Member
Standing Member
Member
Board of
Management
Mr. Do Tuan Anh

Mr. Murat Yuldashev
Mr. Vikesh Mirani
Ms. Dang Tuyet Dung
Mr. Nguyen Canh Vinh
Mr. Le Anh Quan

Ms. Kunsulu Kapbassova

Executive Director
Group Chief Financial Officer
Head of Wholesale Banking (until 10/31/2014)
Head of Sales and Distribution (until 10/31/2014)
Head of Wholesale Banking (from 11/01/2014)
Deputy Chief Executive Officer
Head of Compliance and Operational Risk Management and Legal Division
Head of Markets
Head of IT and Operations (until 10/31/2014)
Head of Sales and Distribution (from 11/01/2014)
Chief Risk Officer (until 12/31/2014)
Head of Personal Financial Services
Head of Human Resources (until 01/02/2015)
Head of Human Resources (from 01/08/2015)
Deputy Chief Executive Officer,
Head of Business Banking Division
Chief Marketing Officer (until 06/30/2014)
Chief Marketing Officer (from 07/01/2014)
Legal Representative
Mr. Ho Hung Anh
Chairman
Registered office
191 Ba Trieu Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi, Vietnam
Auditors
KPMG Limited Vietnam
Number of shares (2009 2014) (million)
Shareholders structure 2014
1.000
44%
Individual
shareholders
56%
Business Registration
Certificate No.
800
884.81
887.81
693.22
540.04
600
400
Institutional
shareholders
878.81
364.20
200
0
2008
2009
2010
2011
2012
2013
Shareholder structure on 31 December 2013
STT SHAREHOLDER STRUCTURE

I INDIVIDUAL SHAREHOLDERS
1 Board of Directors, Board of Management, Inspection Committee

2 Shareholders holding over 5%
3 Other individuals
II INSTITUTIONAL SHAREHOLDERS
1
2
3
4
Vietnam National Textile And Garment Corporation

The Hongkong and Shanghai Banking Corporation Limited
Masan Group Corporation
Others
TOTAL
154
0040/NH - GP
6 August 1993
The banking licence was issued by the State Bank of Vietnam and was initially valid for 20 years from the date of the banking licence.
The operation period was extended to 99 years under Decision No. 330/QD-NH5 issued by the State Bank of Vietnam dated 8 October
1997.
055697
7 September 1993
The Banks Business Registration Certificate has been amended 46 times, the most recent of which is by Business Registration
Certificate No. 0100230800 issued by Hanoi Department of Planning and Investment, dated 25 October 2013.
Mr. Pham Quang Thang
NUMBER OF SHARES
PROPORTION
394,113,046
44.39%
493,694,825
55.60%
32,417,927
0
361,695,119
153,343
172,353,345
173,156,468
148,031,669
887,807,871
Mr. Phan Thanh Son

Mr. Phung Quang Hung
Mr. Anil Kumar Parimo
Mr. Sagyndyk Kassainov
Mr. Nguyen Quoc Nam
Ms. Pham Vu Minh Dan
Mr. Nguyen Dang Thanh
3.65%
0.00%
40.74%
0.02%
19.41%
19.50%
16.67%
100%
155
BRANCH NETWORK
26
44
38
25
42
31
34
3
15
17
18
21
37
28
30
39
29
16
45
20
10
32
PROVINCES
33
312
14
BRANCHES
11
24
22
6
36
5
12
19
13
1
27
41
9
23
35
156
40
43
No
Province/City
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
An Giang
Bac Giang
Bac Ninh
Binh Dinh
Binh Duong
Binh Phuoc
Binh Thuan
Ca Mau
Can Tho
Da Nang
Daklak
Dong Nai
Dong Thap
Gia Lai
Ha Nam
Hanoi
Ha Tinh
Hai Duong
Hai Phong
Ho Chi Minh
Hue
Hung Yen
Khanh Hoa
Kien Giang
Lam Dong
Lang Son
Lao Cai
Long An
Nam Dinh
Nghe An
Ninh Binh
Phu Tho
Quang Nam
Quang Ngai
Quang Ninh
Soc Trang
Tay Ninh
Thai Binh
Thai Nguyen
Thanh Hoa
Tien Giang
Vinh Long
Vinh Phuc
Vung Tau
Yen Bai
1
2
5
1
4
1
1
1
5
10
1
6
1
1
1
99
3
3
9
100
3
3
4
1
1
3
3
1
2
4
1
2
2
2
5
1
1
1
4
2
1
1
3
5
1
TOTAL
312
Number of Branches
157

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INDEX

People and Community

With on-going investment in resources, establishment

Vietnam Technological and Commercial Joint Stock

Based on our strength of market understanding,

Techcombank Annual Report 2014

In order to achieve our mission, we mainly focus

With the ambition of having a sustainable business

development. With continuous improvement in our

Techcombank Annual Report 2014

Total Deposits (VND billion)

Total Equity (VND billion)

Techcombank Annual Report 2014

Number of branches 2014

Number of corporate & SME customers 2014

Number of individual customers 2014

Cost/Income ratio 2014

Return on equity 2014

Return on asset 2014

Operating Income (VND billion)

Total Loans (VND billion)

Profit Before Tax (VND billion)

Number of ATMs 2014

Techcombank Annual Report 2014