Annual Report 2015

ANNUAL REPORT
2015
ENDLESS FAITH
06. Message from the Chair
man of Board of Directors

09. GENERAL INFORMATION
10.
MB PHNOMPENHS
ESTABLISHMENT AND
DEVEL OPMENT PROCess
12.
MB PHNOMPENHS
STRATEGIC GOALS

2016 - 2020
ANNUAL REPORT 2015
14.
MEMBERS OF Board of
Management
18. REPORT OF MB PHNOMPENHS

BOARD OF MANAGEMENT
CONTENT
22 ACTION PLAN FOR 2015

24. PRODUCTS FOR CUSTOMER
23. Report of Board

of Management
26. Organizational structure 2011-
2015
26. Human resource STATISTICS

32. FINANCIAL REPORT
25. NETWORK
ANNUAL REPORT 2015
Message from the Chairman of Board

of Directors
Dear distinguished shareholders,
In 2015, the world witnessed complicated
development in political and economic situation;
the global economic growth was slow, falling into
a long-term low growth cycle. The growth rate
in 2015 was 2.4% (the rate in 2014 was 2.6%). The
sharp decrease in the worlds oil price seriously
affected the Governments budget revenue. Chinas
devaluation of Chinese Yuan adversely affected
the trade balance of Vietnam and exchange rate
of Vietnamese Dong. Vietnam economy was still
facing many difficulties and challenges. However,
with the leadership of the Central Communist
Party Committee and drastic governance of the
Government, our country achieved optimistic results
in its socio-economic development. The GDP growth
rate reached 6.68% compared with 2014 (higher
than the target of 6.2% and was the highest over
the past 5 years). The rate of inflation maintained at
0.6% which was the lowest over the past 14 years.
In such a context, MB persisted with its motto
Restructuring and sustainable development with
steady steps and is confirming its position among
Top 5 Vietnamese commercial banks with respect to
profitability and efficiency. In 2015, MB successfully
completed its fundamental targets assigned in the
General Meeting of Shareholders. In particular,
MB successfully increased its charter capital to
VND16,000 billion as planned, ensuring sufficient
resources for sustainable development; profit
before tax reached VND3,151 billion; MB exceeded
the growth target for outstanding loans (19.63%)
and capital mobilisation (8.2%), and achieved an
excellent reduction of non-performing loans rate to
1.62% - lower than 2014 (2.73%) and the industry
average, while controlling operating expense
efficiently. MB has expanded a broad network with
253 transaction points (including 2 foreign branches
in Laos and Cambodia). The restructuring program
for branches and subsidiaries achieved good results.
The investment activities under the group model
of a parent bank and subsidiaries were drastically
carried out. Beside current key business segments,
during the year MB was permitted to establish 02
new subsidiaries operating in life insurance (MB
Ageas Life) and consumer finance (MFinance)
and to convert the Military Insurance Corporation
ANNUAL REPORT 2015
(MIC) into a subsidiary of MB by the State Bank of

Vietnam (SBV), which contributed to help MB realise
its target to develop new potential business segments,
diversify sources of income, enhance risk management
capacity and increase the value of capital contribution
from shareholders. Strategic projects with large-scale
investments were also carried out with good quality and
progress such as the new office project at 63 Le Van Luong
Street and branch office projects in key locations.
In 2015, after the increase of charter capital to VND16,000
billion, MBs shareholder structure became stable, with
high consensus in governance direction, enhancement of
cooperation and coordination for mutual development.
MB had a new strategic partner, namely State Capital
Investment Corporation (SCIC), consolidated the
ownership percentage of several strategic partners and
shareholders who had been cooperated closely with
MB for years such as Viettel, Saigon Newport Company,
Vietnam Helicopter Corporation, etc In additions,
being aware of its roles and responsibilities of a listed
organization receiving much interest from the market,
MB has always endeavored to maintain the efficiency,
to increase the transparency in governance and to head
towards advanced governance practices to ensure the
rights of shareholders. MB has completed its dividend
payment of 10% for the year 2014 and paid 2015 interim
dividend of 5% in cash, MB requested for permission from
the State authorities to increase the foreign ownership
limit of MBB shares to 20%, thereby partially met the
expectations of foreign investors/investment funds who
wanted to hold MBB shares.
With such achievements, MB has continued to build
trustworthiness with customers and shareholders, to
confirm its high position in the market and actively
contribute to the implementation of monetary policies of
the State Bank of Vietnam, MB had the honor to receive
several emulation flags from the Government, the Ministry
of National Defense, the State Bank of Vietnam, the
Certificate of Merit from the Hanoi Peoples Committee,
the International Asia Pacific Quality Award - IAPQA and
the noble title Hero of Labour Award by the Party and the
State.
Ladies and gentlemen!

The achievements we have today are owing to the
fact that we have persisted in implementing MB 05year development strategy (2011 - 2015). The Board
of Directors, Board of Management and all the staffs
of MB developed business plans based on the actual
market situation, introduced flexible solutions, enhanced
operating efficiency and boosted business growth, where
we prioritized completion of organization structure and
enforcing risk management system to ensure stable and
safe operation and absolute compliance with the law and
directions and policies of the Government and those of the

banking sector, making MB to become one of the leading
entities of the sector.
In 2016 commercial banks will face fierce competition
as size of credit institutions are enlarged due to M&A in
accordance with SBVs restructuring program. The Board
of Directors, Board of Management and all the staffs
are determined to continue their efforts and gather
collective strength to implement the strategy for the new
period 2016 - 2020. MB has identified its motto as: Fast,
sustainable and efficient development which focuses
on resource investment, sustainable development,
fulfilling the target of maintaining the position among
Top 5 commercial banks with respect to profitability and
efficiency. The Bank will continue its efforts in assets
portfolio optimization, human resources management,
information technology investment, excellent risk
management, sale and cross-sale capacity enhancement
within the group, products/services design, operation
centralization, heading towards the Group model where
its subsidiaries which were really strong in their core
business segments, and to implement 2 new businesses
of Life Insurance and Consumer Finance.
Ladies and gentlemen!

Over the past 22 years, with the aspiration to become a
devoted and reliable companion to our customers, partners
and shareholders, MB has been striving towards the goal
of sustainable development and bringing more value
added to our customers, partners and investors. It is your
trust and support that brings a strong motivation for MB to
complete 2016 Plan as well as other development goals in
the near future with great efforts and determination.
We commit that MB will continue to be a safe and
sustainable financial partner for all customers, to provide
an profitable investment choice for shareholders, and
to be one of the prestigious financial organizations
with active contribution to the implementation of the
monetary policies of the Government and the State Bank
of Vietnam; and we will continue to participate actively
and responsibly in social security programs.
On behalf of the Board of Directors and Supervisory Board
of MB, I would like to express our sincere gratitude to the
State regulatory agencies, shareholders, customers and
partners who have always supported and helped us in the
past. We hope to continue to receive your support and
have you as companions in the future.
LE HUU DUC
Chairman of
Board of Directors
ANNUAL REPORT 2015
ANNUAL REPORT 2015
GENERAL INFORMATION:
Thng ip
Establishment & Development process
Business
& Strategic Targets for 2016 - 2020
Qu trnh thnh lp v pht trin
Tm nhn - Phng
chm chin
lc - of
Gi tr
ct li
Members
of the
Board
Management
Thng ip Ch tch HQT

Ch s ti chnh ni bt
Nhng s kin tiu biu trong nm 2011
ANNUAL REPORT 2015
MB PHNOMPENHS
ESTABLISHMENT AND DEVELOPMENT PROCess
November
23rd, 2011
To be approved for business operations under the license number CO.0076Br/2011 by Cambodias Ministry of Commerce.
10
ANNUAL REPORT 2015
December
15th, 2011
To be approved by the National Bank of Cambodia

(NBC) under the license
number 34.
December
20th, 2011
MBs first branch in Cambodia with

the brand name MB Bank was officially launched at 1F & 2F, Phnom
Penh Tower, No.445, Monivong Blvd
(St.93/232), Sangkat Boeung Prolit,
Khan 7 Makara, Phnom Penh, Cambodia. The Branch has a chartered capital
of USD 39 million.
As of December 31st, 2014: MB Phnom Penh has total staff of 33 employees, 22 of them are with university
degrees (accounting for 66.67% of total) and 9 of them are with post-graduate degrees (accounting for 27.
27%). The average age of MB Phnom Penh staff is 30.
June 12th,
2015
December
31st, 2015
MB Bank moved to new

office at No. 439 Preah
Monivong Blvd (St.93) Corner St.214, Sangkat Boeung
Prolit, Khan 7 Makara,
Phnom Penh, Cambodia
MB Phnom Penh has total staff of

40 employees, 25 of them are with
university degrees (equivalent to
62.50% of total) and 12 of them are
with post-graduate degrees (equivalent to 30.00%). The average age of
MB Phnom Penh staff is 29.40.
ANNUAL REPORT 2015
11
MB PHNOMPENHS STRATEGIC
GOALS
2016 - 2020
MISSION
For the development of the country and benefit of customers
Vision
To be Cambodia s Top 05 Customer Convenient Bank.
BUSINESS PHILOSOPHY:

Create and maximize the added value for customer, shareholder,

partner, staves;
Contribute to the development of community and society.
GROWTH MOTTO:

Fast, Distinctive, Subtainable and Efficient
CORE VALUES
Unity
Discipline
Whole-heartedness
BRAND POSITIONING:
TRUST - SUSTAINABILITY
12
ANNUAL REPORT 2015
Trustworthiness
Execution
Efficiency
MARKET OVERVIEW & MB

PHNOMPENHS STATUS IN
CAMBODIA
Economic Performance
Cambodia continues to enjoy robust
growth, albeit at a slightly slower
pace. Real growth in 2015 is estimated to have reached 7 percent,
compared to 7.1 percent in 2014. The
garment sector, together with construction and services, are the main
drivers of the economy. Growth is
expected to remain strong in 2016,
as recovering internal demand and
dynamic garment exports offset
stagnation in agriculture and softer
growth in tourism, making Cambodia
one of the fastest growing countries
in East Asia.
There are downside risks to this
outlook which may include continued appreciation of the US dollar,
slower economic recovery in Europe, spillovers from a slowdown in
the Chinese economy and potential
labor market issues. Given the narrow production and export base and
concentrated export markets in the
European Union and US, the country
is exposed to increased competition
which gradually constrains growth.
Following a slowdown in early 2015,
garment exports rebounded in the
second half of the year, ending at a
nominal year-on-year growth rate of
12.3 percent, compared with 9.2 percent in 2014. Construction remained
a main engine of growth in 2015,
driven by sustained foreign direct investment into the sector.
Growth in the tourism sector remained moderate despite a recovery
in tourism activities in neighboring

countries, particularly in Thailand and
Vietnam. The total tourist arrivals in
2015 grew by 6.1 percent (reaching
4.78 million visitors), compared with
6.9 percent growth in 2014. Slow
improvement in rice yields largely
caused by less favorable weather
conditions and depressed agriculture commodity prices constrained
growth in the agriculture sector.
The Cambodia Economic Update
highlights how the financial sector
has supported economic growth in
Cambodia over the past few years.
Domestic credit accelerated by 27
percent year-on-year in 2015. In
the current context, strengthening
banking supervision would be advisable to safeguard financial stability
and sustainability. Recent measures
such as the increase in capital requirements for financial institutions
are welcome developments.
Overview of Banking Industry
The aim of bank is to build financial
sectors that are closely interconnected with the local economy thus
facilitating lending to personal and
entrepreneurs, enabling payment
systems to be established and, in
particular, creating new savings opportunities for private households.
This approach which is efficient in
many respects enables capital to
be put to productive use in the local
economy. In other words, the microfinance business contributes to the
quantitative growth of other sectors of the economy, such as small
and big scale industry, construction
and trade. This is accompanied by a
process of ongoing formalization, i.e.
the numerous steps that a provider
undergoes as it makes the transition from the shadow economy to
becoming a tax-paying enterprise

with contractual commitments, as
is the norm in developed countries.
Consequently, financial sector development provides small enterprises and households with market
access leading to their inclusion in
the regional and ultimately the global economy. The growth of the financial sector is underpinned by companies that provide a range of financial
services. If we consider the number
of end-consumers that exist, it is
clear that the strongest growth potential is to be found in the garment,
construction and services segment.
The providers that are active in this
segment are known as Commercial
Banking and some Microfinance institutions
MB PhnomPenhs Status
MB Phnom Penhs in 2016 will center
on the motto Restructuring, sustainable growth and strategic solutions deployed throughout the MB
system.
To improve MB Banks competitiveness in the market as a Cambodias
Top 05 Customer Convenient Bank,
MB Phnom Penh plans to widen its
network in key economic areas all
over Cambodia.
MB Phnom Penhs financial results
in 2015 along with the trust from
the Board of Directors, the CEO, the
Board of Management and all the
departments at the Head Office are a
solid foundation for MB Phnom Penh
to realize it future plan.
Officially operating and making its
marks on the Cambodian market on
December 20th, 2011, MB Cambodia
has gradually proved itself to be a secure, stable bank with continuously
enhancing financial capabilities.
ANNUAL REPORT 2015
13
MEMBERS OF THE BOARD OF MANAGEMENT
Mr. Than The Hanh

Branchs Director
Mr. Hanh has over 20 years experience in
the banking sector which has over 07 years
experience working in Cambodia, he joined
the MB in 6/2011. Prior to MB Bank, he was
Director of Sacombank in Cambodia. He was
the one who steer Sacombank achieved a
lot of success in the Cambodian market. He
is expected to be the MB Bank in Cambodia
will achieve success as ever in Sacombank
and implement a strategy for bringing MB
Bank become one of the 3 largest banks of
the Vietnams Bank in Cambodia.
14
ANNUAL REPORT 2015
Mr. Do Nam Hung

Deputy Director of Business
Mr. Do Nam Hung graduated as Master of
Business Administration (MBA) at University of
Gloucestershire (UK) and as a Bachelors External
Economy (BE) at National University of Ho Chi
Minh City. He has over 10 years of experience in
the field of Finance Banking, especially 4 years
of working experience in Cambodia. He has
joined the MB since 2007, including 07 years of
experience in Board of Management positions.
He used to serve as Director of MB 3/2, MB Pham
Ngu Lao. With his seniority and determination
at MB, he is assigned to build up Retail Banking
Strategy in Cambodia; to put MB reputation &
culture in banking activities in the country of
temple and successful implementation of the
Retail Strategy consistent with MB Bank Strategy
in Viet Nam under the motto market growth
Quick, distinctive, sustainable and effective.
Mr. Tran Trung Hieu

Deputy Director of Operation
+ Education:
- Masters degree in Economics, Finance and
Accounting, Financial Institute
+ Work Experience:
Mr. Tran Trung Hieu has over 10 years of experience
in the field of Finance - Banking. He joined the MB
since 2007. He is in generation of young and dynamic
leadership of MB with nearly 05 years experience
in board of management positions. With the MB
seniority and experience in the field of Finance - Bank
always , with the motto perform operations Operate
branch catch implement practical business operation
efficiency , and control better manage risk , improve
service quality and image in the eyes of MB customers.
Upholding the values and discipline in the construction
of the actual service Cultural enforcement branch,
he is expected to put pictures, MB culture in banking
activities in the country of temple tower to become
Bank of convenience for customers.
ANNUAL REPORT 2015
15
16
ANNUAL REPORT 2015
PERFORMANCE IN 2015
REPORT OF BOARD OF MANAGEMENT
ANNUAL REPORT 2015
17
REPORT OF MB PHNOMPENHS BOARD OF MANAGEMENT

bo co ca
BAN IU HNH
MB PHNOMPENHS PERFORMANCE IN
2015 AND PLANS FOR 2016
MB Bank is one of the leading Banks in Viet Nam. MB Bank

has extended the operation to Cambodia and Laos over the
past 5 years. Up to now MB Bank have over 200 branches
and transaction offices with Equity Capital of USD 800
million, Total Asset is USD 10 billion. MB Bank stays at the
Top 5 of the Commercial Bank 2015 in Vietnam.
MB Bank Plc. Phnom Penh Branch was established
in December of 2011. MB Banks vision is to become
Cambodia s Top 05 Customer Convenient Bank, honoring its
development model as a Community Bank. MB Bank offers
the best services with reasonable fees to customers, high
quality, quickness and safety.
MB Phnom Penhs general policy is to operate in alignment
with MBs 6-year-development strategy, which has been
implemented across MBs system in a concerted manner
during the 2016-2020 period, and at the same time to
embrace best practices in management. This will expectedly
lead to clients and partners greater satisfaction, greater
convenience, thereby adding more value to MB.
2015 was a really tough year for many economies due to
the financial crisis which has been plaguing many countries
around the world. In this context, with the motto for
growth reasonable growth, restructuring and efficiency
at the core, the MB leaders made timely assessment of

its business activities in terms of business efficiency, risk
management, overheads cost control and tried their best
to deliver sustainable financial support programs to help
clients overcome difficulties. A vertical management model
was put in place to strengthen the Head Offices capability
of controlling over each business units. Thus, in 2015, MB
sucessfully maintained its stable growth and its operational
security. Specifically, such key indicators as credit growth,
profitability, labor productivity, ROA, ROE were all higher
than the industry norms. Notably, some indicators of which
were 3-4 times higher and non-performing loans was kept
at a low rate.
Under the strong and intensive leadership of MB Groups
Board of Directors and Board of Management, MB Phnom
Penh strived to ensure sustainable growth, remarkably
completing the 2016 plan and contributing to the overall
success of MB. In 2015, with its chartered capital of USD
39 million, MB Phnom Penhs total asset in 2015 was USD
120,947,010.00, its Pre-tax profit was USD 606,971.00.
Its operational security indicators were controlled to be in
compliance with the NBCs regulations.
Table of key indicators

No.
Indicatos
Plan 2015
Result 2015
% compared
Total assets (USD)
Capital mobilization (USD)
50,500,000
78,593,752
156%
Total loans (USD)
66,500,000
101,025,020
152%
Pre-tax profit (USD)
726,359
606,971
84%
General provisions
4,500,000
3,964,586
88%
Number of staff
39
40
103%
Number of transaction office
100%
120,947,010
Source: Audited consolidated financial statements for the years 2013 and 2014
18
Unit: billion dong
ANNUAL REPORT 2015
CAPITAL MOBILIZATION ACTIVITIES

As at 31st December 2015, the branch got 1,945 clients, total USD-equivalent mobilized capital was USD 78.59 million
(equivalent to KHR 318.30 billion), of which USD 46.5 million was non-term deposits, and USD 32.09 million was term
deposits, achieving 156% of its 2015 plan.
Credit Activities
Observing stipulations issued by the National Bank of Cambodia in a strict manner, MB Bank always assures that credit
quality, liquidity and risk management indicators are all well-managed. The Branchs total loans as at December 31st,
2015 reached USD 101.03 million, (equivalent to KHR 409.15 billion), achieving 152% of its 2015 plan.
ANNUAL REPORT 2015
19
Service Activities
Year 2015 saw much advancement in MB Phnom Penhs
service activities. As at December 31st, 2015 total profit
from service fees reached USD 54,502.65, achieving 110%
of its 2015 plan.
- Guarantee: Guarantee balances as at December 31st,
2015 were USD 331,383.72; guarantee activities are not yet
popular in Cambodia. Most clients here are not aware of
this type of service.
- L/C: Currently, this is a very promising service in the
Cambodian market with great pool of high potential import

- export clients.
- International Payments: MB Cambodia is very active in
international payments. As at December 31st, 2015, the
Branchs revenues from international payments reached
USD 191.49 million, of which revenue from import clients
accounted for USD 174.20 million, revenue from export
clients accounted for USD 15.42 million with total collected
net charges being USD 69,301.08.
CLIENT DEVELOPMENT
MB Phnom Penh provides clients with increasing convenience, setting client satisfaction as the goal of quality service.
Accordingly, in 2015, the branch consistently implemented a great number of solutions to improve service quality at the
transaction point. Among 1,945 clients of the branch, individual clients and corporate clients accounted for 88.33% and
11.67% respectively.
With the goal of becoming a Cambodias Top 5 Customer Convenient Bank, focusing on 3 client segments, namely
SME, CIB and Individual clients, the Branch has developed a professional sales force to strengthen the corporate culture
of fast delivery and customer orientation.
INVESTMENT IN TECHNOLOGY ENHANCEMENTS

MB Phnom Penh has always focused on the application of Banking System, R13 version and Oracle GL System in place,
MB IT solutions to provide customer with optimum product and Phnom Penh makes sure that risks are in control and is
capable of service and to well manage operational risks. With T24 Core developing applications to add more value to its
services.
20
ANNUAL REPORT 2015
ANNUAL REPORT 2015
21
ACTION
Plan for 2015
CAPACITY BUILDING:
- Continue to accelerate product introduction and sales, especially emphasizing on providing consistent product
packages.
- Conduct market research to provide products and services which meet the needs of the market, enhancing its
competitiveness.
- Develop a professional business environment and improve service quality across the board.
- Continue to press ahead with brand communications strategies to make clients better aware of MB Phnom Penh.
- Improve the quality of HR, identify and nurture talents.
22
ANNUAL REPORT 2015
Targets 2015
Achieving and exceedING the proposed targets of 2015 and strategic targets
for period from 2011 to 2015, and being ranked in the top five commercial bank
list.
Basically accomplishing restructuring of the subsidiaries and entities;
Dramatically shifting the business structure to retail and non-credit segments.
Comprehensively and sustainably reforming banking operations, and increasing its market competitiveness.
SOME KEY PERFORMANCE INDICATORS FOR THE 2015 PLAN:

No.
Indicatos
Result 2015
Plan 2016
% compare with 2015
Capital mobilization (USD)
78,593,752
94,750,000
121%
Total loans (USD)
101,025,020
111,950,000
111%
Number of clients
1,945
2,280
117%
Pre-tax profit (USD)
606,971
1,020,000
168%
Number of transaction offices
100%
ANNUAL REPORT 2015
23
PRODUCTS FOR CUSTOMER

1.
Credit Products:
Type of Loan
- OD Loan
- Revolving Credit line
- Installment Loan
-
Credit Line
-
Business Loan / Investment Loan
-
Car Loan
- Housing Loan / Home Improvement Loan
-
Personal Loan
- Student Loan
- Overdraft Facility for Depositors.
Collateral
- Real estate (land, building)
-
Car Registration Card (for car loan)
- Inventories / Stock / Machinery
-
Valuable Papers / Deposit
- Non Collateral* / Receivable Account
2. Deposits:
- Non-term Deposit
- Saving Account
-
Current Account
- Fixed Deposit Account
-
Corporate Deposit Account
- Real Time Deposit (for individual only)
- Trust Account
3.
Cash Management:
-
Bank Confirmation
-
Cashiers cheque
-
Payroll Service
- Distributor / Cash Collection
- Supplier Payment
-
Cash Consolidation Account
- Standing Order / Direct Debit
4.
Fund Transfer Remittance:
- International Fund Transfer via SWIFT

- Express Fund Transfer: Viet Nam, Laos and

Cambodia (1 hour)
5.
Local Transfer:
- Express Local Fund Transfer

-
Cheque Clearing Service
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ANNUAL REPORT 2015
6.
Trade Finance:
-
Letter of Credit (L/C):

Letter of Credit (Import)

Letter of Credit (Export)
- Documentary Collection:

Import Documentary Collection

Export Documentary Collection
- Trade Loan:
Import Loan

Loan Against Trust Receipt (LATR)
Import Loan

Loan Against Import
Export Loan

Pre - Shipment Loan / Packing Credit (Pre
Shipment Facilities)

Credit Bills Negotiation / Bill Collection (Post
Shipment Facilities)
Outward Bills (Post Shipment Facilities)
- Foreign Exchange (FX):

Currency: EUR / USD / RMB / THB / SGD / GBP /
HKD / JPY / AUD / CHF / KHR
Spot Exchange Contract
Forward Exchange Contract
Currency SWAP Contract
IRS (Interest Rate Swap) Contract
Option Contract
7.
Bank Guarantee / Bond:
-
Bidding Guarantee
-
Performance Guarantee
-
Payment Guarantee
- Advance Payment Guarantee
-
Warranty Guarantee
- Tax Guarantee
8.
Electronic Banking Service:
- Internet Banking
- SMS Banking
- E-Money / Mobile Banking (Bank-Plus)
- Top up Service
9. MBs Card:
-
MB Friendly Master Card
- ATM Machines /POS
NETWORK
On 20th December 2011,

MB officially launched
MB PhnomPenh with the
agreement of National
Bank of Cambodia and
support from State Bank
of Vietnam.
After MB Laos was
opened at the end of
2010, MB PhnomPenh
is the second foreign
branch of MB in
Indochina.
MB PHNOM PENH BRANCH

Address: No. 439, Monivong Blvd, Sangkat Boeung Prolit, Khan 7 Makara,
Tel: (+855) 23 964 666 | Fax: (+855) 23 964 567
ANNUAL REPORT 2015
25
Organizational structure 2011-2015
APPRAISAL DEVISION
DEPUTY DIRECTOR,
RETAIL BANKING
APPRAISAL DEPARTMENT
INDIVIDUAL CLIENT
DEPARTMENT
INDIVIDUAL CLIENT
RELATION OFFICER
FRONT-DESK
CONSULTANT
26
ANNUAL REPORT 2015
INTERNAL CONTROLS DIVISION
HEAD OFFICE
BRANCH DIRECTOR
DEPUTY DIRECTOR,
OPERATIONS
CORPORATE CLIENT
DEPARTMENT
FI
CUSTOMER SERVICE
DEPARTMENT
SUPERVISOR
TELLER
CASHIER
COMPLIANCE SERVICE
SUPPORT
DEPARTMENT
OPERATIONAL SUPPORT
CIB
ADMINISTRATION
SME
ACCOUNTING
ANNUAL REPORT 2015
27
Human resource statistics
Average
age
29
years old
Average per
capita
income
in 2015
18,201,738
VND/month
6,876
people
Number of
employees as at
31/12/2015
28
ANNUAL REPORT 2015
8,42%
91.58%
people
people
(579/6876)
College degree
or lower
(6297/6876)
University degree or higher
ANNUAL REPORT 2015
29
30
ANNUAL REPORT 2015
community
activities
ANNUAL REPORT 2015
31
MB Bank Plc. Phnom Penh Branch, Cambodia

Supplementary Financial Information for the year ended 31 December 2015
Corporate Information
Bank
Registration No
0076 Br/2011
Registered office
No. 439, Monivong Blvd (St 93/Corner 214),
Sangkat Boeung Prolit, Khan 7 Makara,
Board of Management
Mr. Than The Hanh
Director
Mr. Do Nam Hung
Deputy Director
Mr. Tran Trung Hieu
Deputy Director
Auditor KPMG Cambodia Ltd
32
s ANNUAL REPORT 2015
TABLE OF CONTENTS
Report of the Board of Management
34
Report of the independent auditors
38
Balance sheet 39
Income statement 40
Statement of changes in equity
41
Statement of cash flows
42
Notes to the financial statements
43
Supplementary financial information

(unaudited)*
i - xvii
87
*Supplementary financial information does not form part of

the audited financial statements.
33

REPORT OF THE BOARD OF MANAGEMENT

The Board of Management has pleasure in submitting their report together with the audited financial statements of MB Bank Plc. Phnom
Penh Branch, Cambodia (the Branch) for the year ended 31 December 2015.
PRINCIPAL ACTIVITY
The principal activities of the Branch are the provision of commercial banking and related financial services in the Kingdom of Cambodia.
There were no changes in nature of the principal activities during the year.
34

Note to the financial statements For the year ended 31 December 2015
FINANCIAL RESULTS
The financial results of the Branch for the year ended 31 December 2015 were as follows:
2015 2014
Profit before income tax

Income tax expense
Net profit for the year
USD
KHR000
equivalent
USD
KHR000
equivalent
606,971
2,458,230
535,573
2,182,458
(236,190)
(956,569)
(129,508)
(527,745)
370,781
1,501,661
406,065
1,654,713
DIVIDENDS
No dividend was declared or paid and the Board of Management does not recommend any dividend to be paid for the year ended
31 December 2015 (2014: nil).
Paid-up capital
There was no change in the registered and issued paid-up capital of the Branch during the year (2014: no change).
Bad and doubtful loans and advances
Before the financial statements of the Branch were prepared, the Board of Management took reasonable steps to ascertain that
actions had been taken in relation to the writing off of bad loans and advances and the making of allowances for doubtful loans
and advances, and satisfied themselves that all known bad loans and advances had been written off and adequate allowance
had been made for bad and doubtful loans and advances.
At the date of this report, the Board of Management is not aware of any circumstances, which would render the amount written
off for bad loans and advances, or the amount of allowance for doubtful loans and advances in the financial statements of the
Branch, inadequate to any substantial extent.
Reserves and provisions
There were no material movements to or from reserves and provisions during the financial year other than those disclosed in the
financial statements.
35

Current assets
Before the financial statements of the Branch were prepared, the Board of Management took reasonable steps to ensure that any
current assets, other than debts, which were unlikely to be realised in the ordinary course of business at their value as shown in the
accounting records of the Branch have been written down to an amount which they might be expected to realise.
At the date of this report, the Board of Management are not aware of any circumstances, which would render the values attributed
to the current assets in the financial statements of the Branch misleading.
Valuation methods
At the date of this report, the Board of Management is not aware of any circumstances which have arisen which render adherence
to the existing method of valuation of assets and liabilities in the financial statements of the Branch misleading or inappropriate.
Contingent and other liabilities
At the date of this report, there does not exist:
* any charge on the assets of the Branch which has arisen since the end of the financial year which secures the liabilities of any other
person, or
* any contingent liability in respect of the Branch that has arisen since the end of the financial year other than in the ordinary courses
of banking business.
No contingent or other liability of the Branch has become enforceable, or is likely to become enforceable within the period of twelve
months after the end of the financial year which, in the opinion of the Board of Management, will or may substantially affect the
ability of the Branch to meet its obligations as and when they fall due.
Change of circumstances
At the date of this report, the Board of Management is not aware of any circumstances, not otherwise dealt with in this report or the
financial statements of the Branch, which would render any amount stated in the financial statements misleading.
Items of unusual nature
The results of the operations of the Branch for the financial year were not, in the opinion of the Board of Management, substantially
affected by any item, transaction or event of a material and unusual nature.
There has not been, in the interval between the end of the financial year and the date of this report, any item, transaction or event
of a material and unusual nature likely, arising in the opinion of the Board of Management, to affect substantially the results of the
operations of the Branch for the current financial year in which this report is made.
The Board of Management
The members of the Board of Management holding office during the year and as at the date of this report are:

36
Mr. Than The Hanh

Mr. Do Nam Hung
Mr. Tran Trung Hieu
Director
Deputy Director
Deputy Director

THE BOARD OF MANAGEMENTS BENEFITS

During and at the end of the year, no arrangement existed, to which the Branch was a party, whose object was to enable the Board of
Management to acquire benefits by means of the acquisition of shares in or debentures of the Branch or any other body corporate.
No Director has received or become entitled to receive a benefit (other than a benefit included in the aggregate amount of emoluments
received or due and receivable by the Board of Management, or the fixed salary of a full time employee of the Branch as disclosed in the
financial statements) by reason of a contract made by the Branch or with a firm of which the Director is a member, or with a company in
which the Director has a substantial financial interest.
Managements responsibility in respect of the financial statements

The Board of Management is responsible for ascertaining that the financial statements present fairly, in all material respects, the financial
position of the Branch as at 31 December 2015, and its financial performance and its cash flows for the year then ended. In preparing these
financial statements, the Board of Management is required to:
(i)
adopt appropriate accounting policies which are supported by reasonable and prudent judgments and estimates and then apply
them consistently;
(ii)
comply with Cambodian Accounting Standards and the guidelines of the National Bank of Cambodia relating to the preparation
and presentation of financial statements or, if there have been any departures in the interest of true and fair presentation, ensure that
these have been appropriately disclosed, explained and quantified in the financial statements;
(iii)
maintain adequate accounting records and an effective system of internal controls;
(iv)
prepare the financial statements on the going concern basis unless it is inappropriate to assume that the Branch will continue
operations in the foreseeable future; and
(v)
control and direct effectively the Branch in all material decisions affecting the operations and performance and ascertain that
such have been properly reflected in the financial statements.
The Board of Management confirms that they have complied with the above requirements in preparing the financial statements.
Signed in accordance with a resolution of the Board of Management,
_________________________
Than The Hanh
Director
Phnom Penh, King of Cambodia
Date: 31 March 2016
37

REPORT OF THE INDEPENDENT AUDITORS

To the Owner
MB Bank Plc, Phnom Penh Branch, Cambodia
We have audited the accompanying financial statements of MB Bank Plc. Phnom Penh Branch, Cambodia (the Branch), which comprise the balance sheet as at 31 December 2015 and the statements of income, changes in equity and cash flows for the year then
ended, and the explanatory notes thereto which were authorised for issue by the Branchs management on 31 March 2016, as set out
on pages 7 to 49.
Managements Responsibility
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Cambodian
Accounting Standards and the guidelines of the National Bank of Cambodia relating to the preparation and presentation of financial
statements, and for such internal control as management determines is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance
with Cambodian International 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 financial statements are free from 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 judgement, including the assessment of the risks of material misstatement of the
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers 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 financial statements present fairly, in all material respects, the financial position of MB Bank Plc. Phnom Penh
Branch, Cambodia as at 31 December 2015 and its financial performance, changes in equity and cash flows for the year then ended,
in accordance with Cambodian Accounting Standards and the guidelines of the National Bank of Cambodia relating to the preparation
and presentation of financial statements.
For KPMG Cambodia Ltd
Nge Huy
Audit Partner
Phnom Penh, Kingdom of Cambodia
Date: 31 March 2016
38
MB
MBBank
BankPlc.
Plc.Phnom
PhnomPenh
PenhBranch,
Branch,Cambodia
Cambodia
Supplementary
Note to theFinancial
financialInformation
statementsfor
Forthe
theyear
yearended
ended3131December
December2015
2015
Balance sheet
As at 31 December 2015
Notes
31 December 2015
31 December 2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
Assets
Cash on hand
959,281
3,885,088
514,144
2,095,137
Balances with the National

Bank of Cambodia
16,690,778
67,597,651
9,085,712
37,024,277
Deposits and placements

with other banks
3,371,911
13,656,240
792,302
3,228,631
Amount due from Head

Office
96,703,588
391,649,531
62,732,283
255,634,054
Loans and advances to

customers
357,289
1,447,020
121,872
496,629
Property and equipment
10
13,779
55,805
15,429
62,873
Intangible assets
11
2,850,384
11,544,055
594,005
2,420,571
120,947,010
489,835,390
73,855,747
300,962,172
Total assets
Liabilities
Deposits from other banks
12
18,511,137
74,970,105
18,486,233
75,331,399
Amount due to Head Office
13
30,112,492
121,955,594
5,608,637
22,855,196
Deposits from customers
14
29,970,123
121,378,998
9,694,260
39,504,111
Current income tax payable
16
289,285
1,171,604
79,435
323,697
Deferred tax liabilities
16
7,722
31,274
1,175
4,788
Other liabilities
15
2,248,873
9,107,934
522,561
2,129,437
81,139,632
328,615,509
34,392,301
140,148,628
39,000,000
157,950,000
39,000,000
158,925,000
807,378
3,269,881
463,446
1,888,544
39,807,378
161,219,881
39,463,446
160,813,544
120,947,010
489,835,390
73,855,747
300,962,172
Owners equity
Paid-up capital
Retained earnings
Total owners equity
Total liabilities and
owners equity
17
The accompanying notes form an integral part of these financial statements.
39

Income statement
For the year ended 31 December 2015

Note
31 December 2015
31 December 2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
Interest income
18
5,034,748
20,390,729
3,470,544
14,142,465
Interest expense
19
(847,602)
(3,432,788)
(588,929)
(2,399,885)
4,187,146
16,957,941
2,881,615
11,742,580
Net interest income

Fees and commission
income
20
355,136
1,438,301
195,371
796,137
Fees and commission

expense
20
(132,563)
(536,880)
(80,895)
(329,647)
222,573
901,421
114,476
466,490
76,199
308,606
15,770
64,263
(80,506)
(326,051)
(48,614)
(198,102)
(4,307)
(17,445)
(32,844)
(133,839)
4,405,412
17,841,917
2,963,247
12,075,231
Net fees and commission

income
Other operating income
Other operating expenses
Net other operating
(expenses)/income
Total operating income
Depreciation and amortisation
21
(70,438)
(285,274)
(63,909)
(260,433)
General and administrative

expenses
22
(1,784,193)
(7,225,982)
(1,206,817)
(4,917,777)
Allowance for losses on

loans and advances
23
(1,943,810)
(7,872,431)
(1,156,948)
(4,714,563)
606,971
2,458,230
535,573
2,182,458
Profit before tax

Income tax expense
16
(229,643)
(930,054)
(131,152)
(534,444)
Deferred tax income/

(expense)
16
(6,547)
(26,515)
1,644
6,699
370,781
1,501,661
406,065
1,654,713
40

Supplementary
statements for
Statement of changes in equity

Paid-up
capital
USD
Retailned
earnings
USD
Total
USD
39,000,000
57,381
39,057,381
406,065
406,065
39,000,000
463,446
39,463,446
158,925,000
1,888,544
160,813,544
39,000,000
463,446
39,463,446
370,781
370,781
Allocation to bonus and

welfare fund
(26,849)
(26,849)
39,000,000
807,378
39,807,378
157,950,000
3,269,881
161,219,881
Balance as at 1 January
2014
Balance as at 31 December
2014
(KHR000 equivalent
Note 4)
Balance as at 1 January 2015
Balance as at 31 December
2015
(KHR'000 Note 4)
41

Statement of cash flows

2015
2014
Note
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
24
6,912,533
27,995,759
(3,023,521)
(12,320,846)
(304,205)
(1,232,030)
(52,109)
(212,345)
10
(16,500)
(67,238)
Net cash used in from

investing activities
(304,205)
(1,232,030)
(68,609)
(279,583)
Net decrease in cash and

cash equivalents
6,608,328
26,763,729
(3,092,130)
(12,600,429)
Cash and cash equivalents

at beginning of year
4,848,786
19,758,804
7,940,916
31,723,961
Foreign exchange translation difference
(121,221)
635,272
11,457,114
46,401,312
4,848,786
19,758,804
Cash flows from operating

activities
Net cash used in operating
activities
Cash flows from investing
activities
Purchases of property and
equipment
Purchases of intangible
assets

at end of year
25
42

These notes form an integral part of, and should be read in conjunction with, the accompanying financial statements.
1.
Reporting entity
MB Bank Plc. Phnom Penh Branch, Cambodia is a branch of Military Commercial Joint Stock Bank, a bank incorporated in Vietnam. The
Branch operates in the Kingdom of Cambodia under Banking License No. 34 issued by the Governor of the National Bank of Cambodia
(NBC) dated 15 December 2011.
The Branch is engaged in the provision of comprehensive banking and related financial services in the Kingdom of Cambodia in
accordance with License No. 0076 Br/2011 dated 23 November 2011 from the Ministry of Commerce.
The registered office of the Branch is currently located at No. 439, Monivong Blvd (St 93/Corner 214), Sangkat Boeung Prolit, Khan 7
Makara, Phnom Penh, Cambodia.
As at 31 December 2015, the Branch had 40 employees (31/12/2014: 35 employees).
2.
Basis of preparation
(a) Statement of compliance

The financial statements have been prepared in accordance with Cambodian Accounting Standards and the guidelines of the National
Bank of Cambodia (NBC) relating to the preparation and presentation of financial statements.
(b) Basis of measurement
The financial statements, except for the statement of cash flows, are prepared on the accrual basis using the historical cost concept.
The statement of cash flows is prepared using the indirect method.
(c) Annual accounting period
The annual accounting period of the Branch is from 1 January to 31 December.
(d) Functional and presentation currency
The national currency of Cambodia is the Khmer Riel (KHR). However as the Branch transacts and maintains its accounting records
primarily in United States Dollars (USD), management have determined the USD to be the Branchs functional and presentation
currency as it reflects the economic substance of the underlying events and circumstances of the Branch.
Transactions in currencies other than USD are translated into USD at the exchange rate ruling at the dates of the transactions. Monetary
assets and liabilities denominated in currencies other than USD at the balance sheet date are translated into USD at the rates of exchange
ruling at that date. Exchange differences arising on translation are recognised in the income statement.
(e)
Use of estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, and income and expenses. Actual results may differ from
these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year
in which the estimates are revised and in any future periods affected.
Key accounting estimates and judgements applied in the preparation of the financial statements include estimates of recoverable
amount for loans and advances stated in Note 3(d).
43

Supplementary
Note
to the financial
Financial
statements
Information
For the
foryear
the year
ended
ended
31 December
31 December
2015 2015
3.
Significant accounting policies
The following significant accounting policies adopted in the preparation of these financial statements are set out below:
(a) Financial instruments
The Branchs financial assets and liabilities include cash and cash equivalents, originated loans and receivables, other receivables, customers deposits and payables. The accounting policies for the recognition and measurement of these items are disclosed in the respective accounting policies.
(b)
Cash and cash equivalents consist of cash and bank balances, demand deposits and short-term highly liquid investments with original
maturities of three months or less when purchased, and that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value.
(c)
Loans and advances
All loans and advances to customers are stated in the balance sheet at the amount of principal, less any amounts written off, and allowance for loans and advances.
The adequacy of the allowance for loans and advances is evaluated monthly by management. Factors considered in evaluating the
adequacy of the allowance include the size of the portfolio, previous loss experience, current economic conditions and their effect on
clients, the financial situation of clients and the performance of loans in relation to contract terms.
(d)
Allowance for bad and doubtful loans and advances
In compliance with NBC Guidelines, all loans and advances are classified according to the repayment capacity of the counterparty. This
repayment capacity is assessed through past payment experience, financial condition of the borrower, business prospective and cash
flow projections, borrowers ability and willingness to repay, financial environment, and quality of documentation.
In addition to the above qualitative information, number of days past due is taken into account. The minimum percentage of allowance
for doubtful loans and advances are to be maintained according to the assigned classifications. Where reliable information suggests
that losses are likely to be more than these minimum requirements, larger allowance is made.
The loan classifications and the minimum allowance requirements are as follows:
Classification
Normal/standard
Special mentioned
Substandard
Doubtful
Loss
Number of days past due
Minimum allowance
<30 days
1%
30 days 89 days
3%
90 days 179 days
20%
180 days 359 days
50%
360 days or more than
100%
In determining the above allowance, any collateral value other than cash deposits which has been pledged is disregarded.
Recoveries on loans previously written off and reversals of previous allowances are disclosed separately together with the net movement in the allowance for bad and doubtful loans and advances in the income statement.
An uncollectible loan or portion of a loan classified as bad is written off after taking into consideration the realisable value of the collateral, if any, when in the judgement of the management there is no prospect of recovery.
44

(e)
Deposits and placements with banks
Deposits and placements with banks are stated at cost.

(f) Other assets
Other assets are stated at cost.
(g)
Statutory deposits
Statutory deposits are maintained with the NBC in compliance with the Cambodian Law on Banking and Financial Institutions and are
determined by defined percentages of minimum share capital and customers deposits as required by NBC.
(h)
Items of property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Where
an item of property and equipment comprises major components having different useful lives, the components are accounted for as
separate items of property and equipment.
Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is possible that future economic benefits associated with the item will flow to the Branch and the cost of the item can be measured reliably.
All other repairs and maintenance are charged to the income statement during the year in which they are incurred.
Depreciation is calculated using the straight-line method to allocate their cost to their residual value over their estimated useful lives,
as follows:
Leasehold building
20 years
Furniture and fittings
4 years
Motor vehicles
4 years
Computer and office equipment
2 years
The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An assets carrying amount is written down immediately to its recoverable amount if the assets carrying amount is greater than its
estimated recoverable amount.
Gains or losses on disposals are determined by comparing proceeds with the carrying amounts. These are included in the income
statement.
Subsequent expenditure relating to an item of property and equipment that has already been recognised is added to the carrying
amount of the asset when it is probable that future economic benefits, in excess of the originally assessed standard of performance
of the existing asset, will flow to the Branch. All other subsequent expenditure is recognised as an expense in the year in which it is
incurred.
Gain or loss arising from the retirement or disposal of an item of property and equipment is determined as the difference between
the estimated net disposal proceeds and the carrying amount of the asset and is recognised in the income statement at the date of
retirement or disposal.
45

Supplementary
Note to the financial
Financial
statements
Information
For the
foryear
the year
ended
ended
31 December
31 December
2015 2015
Fully depreciated property and equipment are retained in the financial statements until disposed of or written off.
The carrying amounts of property and equipment are reviewed for impairment when there is an indication that the assets might be
impaired. Impairment is measured by comparing the carrying values of the assets with their recoverable amounts. An impairment loss
is charged to the income statement immediately.
Reversal of impairment losses recognised in prior years is recorded where there is an indication that the impairment losses recognised
for the asset no longer exist or have decreased. The reversal is recognised to the extent of the carrying amount of the asset that would
have been determined (net of amortisation and depreciation) had no impairment loss been recognised. The reversal is recognised in
the income statement immediately.
(i) Intangible assets
Computer software license

Acquired computer software license is capitalised on the basis of the cost incurred to acquire and bring to use the specific software.
These costs are amortised over two years using the straight-line method.
Other intangible assets

Other intangible assets are capitalised on the basis of the cost incurred to acquire and bring to use. These costs are amortised over two
years using the straight-line method.
Costs associated with maintaining computer software programs and other intangible assets are recognised as an expense as incurred.
(j) Impairment of assets
(i)
Financial assets
A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial
asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimate
future cash flows of that asset. This does not apply to loans and advances which has a separate accounting policy stated in Note 3(d).
An impairment loss in respect of a financial asset is calculated as the difference between its carrying amount, and the present value of
the estimated future cash flows discounted at the original effective interest rate.
Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed
collectively in groups that share similar credit risk characteristics.
All impairment losses are recognised in the income statement.
An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised.
(ii)
Non-financial assets
The carrying amounts of the non-financial assets are reviewed at each reporting date to determine whether there is any indication of
impairment. If any such indication exists, the assets recoverable amount is estimated.
46

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less cost to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are
grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the
cash inflows of other assets or groups of assets (the cash-generating unit).
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable
amount. Impairment losses are recognised in the income statement.
(k)
Deposits from customers and other banks
Deposits from customers and other banks are stated at cost.

(l) Other liabilities
Other liabilities are stated at their cost.
(m) Provisions
A provision is recognised in the balance sheet when the Branch has a legal or constructive obligation as a result of a past event, and it
is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of
money and, where appropriate, the risks specific to the liability.
(n) Income recognition
Interest income is recognised on an accruals basis, except for interest on loans classified as non-performing loans which is recognised
upon receipt. Interest for non-performing loans is monitored at off-balance sheet. Interest income on overdrafts, term loans and other
loans is recognised by reference to rest periods, which are either monthly or daily.
Income from the various activities of Branch is accrued using the following basis:

Loan arrangement fees and commissions on services and facilities extended to customers are recognised as income over

the period in which the services and facilities are extended.

Commitment fees and guarantee fees on services and facilities extended to customers are recognised on the occurrence of

such transactions; and

Service charges and processing fees are recognised when the service is provided.
(o) Interest expense
Interest expenses are recognised on an accruals basis.
(p) Operating leases
Payments made under operating leases are recognised in the income statement on a straight-line basis over the period of the lease.
(q) Income tax
Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the income statement
except to the extent that it relates to items recognised directly to equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year using tax rates enacted or substantially enacted at the balance sheet date, and any adjustments to tax payable in respect of previous years.
47
MB
MBBank
BankPlc.
Plc.Phnom
PhnomPenh
PenhBranch,
Branch,Cambodia
Cambodia
Supplementary
Financial
statements
Information
For for
the the
year
year
ended
ended
31 December
31 December
20152015
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 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
temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is
no longer probable that the related tax benefit will be realised.
(r)
Related parties
Parties are considered to be related if the Branch has the ability, directly or indirectly, to control the other party or exercise significant
influence over the other party in making financial and operating decisions or vice-versa, or where the Branch and the parties are subject
to common control or significant influence. Related parties may be individuals or corporate entities and include close family members
of any individual considered to be a related party.
Under the Cambodia Law on Banking and Financial Institutions, related parties include individuals who hold, directly or indirectly a minimum of 10% of the capital of the Branch or voting rights therefore, or who participates in the administration, direction, management,
or the design and implementation of the internal controls of the Branch.
4.
Translation of United States Dollars into Khmer Riel
As discussed in Note 2(d), the financial statements are prepared and presented in USD, which is the Branchs accounting currency. The
translations of USD amounts into KHR, rounded to the nearest thousand (KHR000), are included solely for compliance with the guidelines issued by the NBC regarding the preparation and presentation of financial statements and have been made using the prescribed
official exchange rate of USD1 to KHR4,050 published by the NBC on 31 December 2015 (31/12/2014: KHR4,075). These convenience
translations should not be construed as representations that the USD amounts have been, could have been, or could in the future be,
converted into KHR at this or any other rate of exchange.
5.
Cash on hand
31 December 2015
USD
KHR000
equivalent
(Note 4)
31 December 2014
USD
KHR000
equivalent
(Note 4)
USD
830,870
3,365,024
511,743
2,085,353
KHR
128,411
520,064
2,401
9,784
959,281
3,885,088
514,144
2,095,137
48

6.
Balances with the National Bank of Cambodia

31 December 2015
31 December 2014
USD
KHR000
equivalent
(Note 4)
USD
KHR000
equivalent
(Note 4)
Term account USD
300,000
1,215,000
1,200,000
4,890,000
Term account - KHR
49,383
200,001
491
2,001
Settlement account - USD
6,018,503
24,374,937
1,185,489
4,830,868
Settlement account - KHR
413,290
1,673,825
36,773
149,850
Current account - USD
29,417
119,139
1,096,508
4,468,270
Current account - KHR
315,329
1,277,082
23,079
94,047
Capital guarantee deposits

- USD
3,900,000
15,795,000
3,900,000
15,892,500
Reserve deposits - USD
5,645,000
22,862,250
1,631,000
6,646,325
Reserve deposits - KHR
19,856
80,417
12,372
50,416
16,690,778
67,597,651
9,085,712
37,024,277
Term accounts
Current accounts
Statutory deposits
(a)
Reserve requirement
The reserve requirement represents the minimum reserve which is calculated at 8% and 12.5% of deposits from customers in Khmer
Riel (KHR) and other currencies respectively. The 4.5% reserve requirement on deposits from customers in currencies other than KHR
earns interest at a half of one-month SIBOR while the remaining 8% of the reserve requirement on deposits from customers in other
currencies and KHR earns no interest.
(b)
Capital guarantee
Under Prakas No. B7-01-136 on Banks Capital Guarantee dated 15 October 2001, banks are required to maintain a statutory deposit of
10% of paid-up capital. This deposit is refundable should the Branch voluntarily cease its operations in Cambodia and it is not available
for use in the Branchs day-to-day operations. The capital guarantee earns interest at a forth of six-month LIBOR.
49
MB
MBBank
BankPlc.
Plc.Phnom
PhnomPenh
PenhBranch,
Branch,Cambodia
Cambodia
Supplementary
Financial
statements
Information
For for
the the
year
year
ended
ended
31 December
31 December
20152015
(c) Interest rates

The current and settlement accounts are non-interest earning. The other deposits earn interest at the following annual rates:
31/12/2015
31/12/2014
Capital guarantee deposits - USD
0.06% - 0.12%
0.08% - 0.12%
Reserve deposits - USD
0.12% - 0.21%
0.09% - 0.10%
Reserve deposits - KHR
0%
0%
7. Deposits and placements with other banks

(a)
By residency status:
31/12/2015
31/12/2014
USD
KHR000
equivalent
(Note 4)
USD
KHR000
equivalent
(Note 4)
77,028
311,963
96,896
394,851
816
3,305
41,246
168,077
Saigon Hanoi Commercial

Bank, Cambodia Branch
11,768
47,660
6,465
26,345
Acleda Bank Public Limited

Company
5,773
23,381
47,495
193,542
25,106
101,679
Phnom Penh Commerical

Bank
1,250,960
5,066,388
ABA Bank
1,000,000
4,050,000
Maruhan Japan Bank Plc
1,000,000
4,050,000
460
1,864
600,200
2,445,816
3,371,911
13,656,240
792,302
3,228,631
Balances with local banks:

Canadian Bank Public
Limited Company
Saigon Thuong tin Commercial Joint Stock Bank
Cambodia Branch
ANZ Royal Bank
Vietnam Bank for Agriculture and Rural Development, Cambodia Branch
50

(b)
By account types:
USD
31/12/2015 KHR000
equivalent
(Note 4)
31/12/2014KHR000
equivalent
USD
(Note 4)
Balances with local banks:

Current accounts KHR
84,414
341,877
96,896
394,851
Current accounts USD
1,287,497
5,214,363
695,406
2,833,780
Term deposits USD
2,000,000
8,100,000
3,371,911
13,656,240
792,302
3,228,631
Current accounts earn interest at rates ranging from 0% to 0.5% per annum (31 December 2013: from 0% to 0.5% per annum).
8. Loans and advance to customers

31/12/2015
31/12/2014
USD
KHR000
equivalent
(Note 4)
USD
KHR000
equivalent
(Note 4)
Term loans
90,075,506
364,805,799
53,027,048
216,085,221
Overdrafts
10,949,514
44,345,531
12,082,857
49,237,642
101,025,020
409,151,330
65,109,905
265,322,863
General allowance
(900,907)
(3,648,673)
(558,029)
(2,273,968)
Specific allowance
(3,420,525)
(13,853,126)
(1,819,593)
(7,414,841)
(4,321,432)
(17,501,799)
(2,377,622)
(9,688,809)
96,703,588
391,649,531
62,732,283
255,634,054
Allowance for loans and advances:
Net loans and advances to

customers
51
MB
MBBank
BankPlc.
Plc.Phnom
PhnomPenh
PenhBranch,
Branch,Cambodia
Cambodia
Supplementary
Financial
statements
Information
For for
the the
year
year
ended
ended
31 December
31 December
20152015
Movements of general allowance for loans and advances were as follows:
31/12/2015
31/12/2014
USD
KHR000
equivalent
(Note 4)
USD
KHR000
equivalent
(Note 4)
At 1 January
558,029
2,273,968
475,451
1,899,427
Charge during the year (Note 23)
342,878
1,388,656
150,754
614,323
Reversal during the year (Note 23)
(68,176)
(277,817)
Foreign exchange translation differences
(13,951)
38,035
900,907
3,648,673
558,029
2,273,968
At 31 December
Movements of specific allowance for loans and advances were as follows:

31/12/2015
31/12/2014
USD
KHR000
equivalent
(Note 4)
USD
KHR000
equivalent
(Note 4)
At January
1,819,593
7,414,841
745,223
2,977,166
Charge during the year (Note 23)
2,046,561
8,288,572
1,410,725
5,748,704
Reversal during the year (Note 23)
(445,629)
(1,804,797)
(336,355)
(1,370,647)
(45,490)
59,618
3,420,525
13,853,126
1,819,593
7,414,841

At 31 December
(a)
By classification:
31/12/2015
USD
KHR000
equivalent
(Note 4)
USD
KHR000
equivalent
(Note 4)
90,026,592
364,607,698
35,802,949
145,897,017
64,133
259,739
20,000,000
81,500,000
Special mentioned loans - secured
4,178,083
16,921,234
5,490,344
22,373,152
Sub-standard loans - secured
2,124,072
8,602,492
2,621,709
10,683,464
Standard loans - secured

Standard loans - unsecured
52
31/12/2014

Doubtful loans - secured

Loss - secured
(b)
4,237,237
17,160,810
800,000
3,260,000
394,903
1,599,357
394,903
1,609,230
101,025,020
409,151,330
65,109,905
265,322,863
By industry:
31/12/2015
31/12/2014
USD
KHR000
equivalent
(Note 4)
USD
KHR000
equivalent
(Note 4)
845,075
3,422,553
1,046,567
4,264,761
Real estates and consultancy
2,040,726
8,264,940
3,011,985
12,273,839
Manufacturing
8,071,034
32,687,688
7,998,727
32,594,813
Construction
1,324,851
5,365,647
1,688,147
6,879,199
20,580,877
83,352,552
21,391,776
87,171,487
93,335
378,007
130,669
532,476
Information and Technology
55,000,000
222,750,000
20,000,000
81,500,000
Individual
12,744,074
51,613,500
9,372,185
38,191,654
325,048
1,316,443
469,849
1,914,634
101,025,020
409,151,330
65,109,905
265,322,863
Wholesale, retail, commercial and fixing
Agriculture
Education
Others
(c)
By maturity:
31/12/2015
31/12/2014
USD
KHR000
equivalent
(Note 4)
USD
KHR000
equivalent
(Note 4)
Not later than 1 year
31,919,855
222,386,593
35,170,393
143,319,352
Later than 1 year and no later than 3

years
54,910,270
40,219,237
20,254,801
82,538,314
Later than 3 year and no later than 5

years
9,930,676
9,697,000
7,796,793
31,771,931
Later than 5 years
4,264,219
136,848,500
1,887,918
7,693,266
101,025,020
409,151,330
65,109,905
265,322,863
53
MB
MBBank
BankPlc.
Plc.Phnom
PhnomPenh
PenhBranch,
Branch,Cambodia
Cambodia
Note
Supplementary
to the financial
Financial
statements
Information
For the
foryear
the ended
year ended
31 December
31 December
2015 2015
(d)
By currency:
31/12/2015
Loans and advances to customers in

USD
(e)
31/12/2014
USD
KHR000
equivalent
(Note 4)
USD
KHR000
equivalent
(Note 4)
101,025,020
409,151,330
65,109,905
265,322,863
By residence status:
31/12/2015
Residents
(f)
31/12/2014
USD
KHR000
equivalent
(Note 4)
USD
KHR000
equivalent
(Note 4)
101,025,020
409,151,330
65,109,905
265,322,863
By relationship:
31/12/2015
Non-related parties
(g)
31/12/2014
USD
KHR000
equivalent
(Note 4)
USD
KHR000
equivalent
(Note 4)
101,025,020
409,151,330
65,109,905
265,322,863
By exposure:
31/12/2015
31/12/2014
USD
KHR000
equivalent
(Note 4)
USD
KHR000
equivalent
(Note 4)
Non-large
22,241,272
90,077,152
17,075,178
69,581,349
Large (*)
78,783,748
319,074,178
48,034,727
195,741,514
101,025,020
409,151,330
65,109,905
265,322,863
(*)
Large exposure is defined by the NBC as overall credit exposure to any single beneficiary in excess of 10% of the Branchs
net worth.
The annual interest rate of loans and advances to customers were as follows:
54
31/12/2015
31/12/2014
Term loans
3.50% - 15.75%
3.00% - 15.75%
Overdrafts
8.00% - 10.50%
7.20% - 10.50%

9.
For the year ended 31 December 2015:
Leasehold
building
USD
Furniture and
Computer and
fittings office equipment
USD
USD
Motor vehicles
Total USD
KHR000
(Note 4)
Cost
At 1 January 2015
51,214
51,444
99,191
102,850
304,699
1,241,649
148,543
153,076
2,586
304,205
1,232,030
(7,622)
199,757
204,520
101,777
102,850
608,904
2,466,057
At 1 January 2015
(7,460)
(23,490)
(77,300)
(74,577)
(182,827)
(745,020)
Charge for the year
(3,821)
(19,239)
(20,195)
(25,533)
(68,788)
(278,591)
4,574
(11,281)
(42,729)
(97,495)
(100,110)
(251,615)
(1,019,037)
43,754
27,954
21,891
28,273
121,872
496,629
188,476
161,791
4,282
2,740
357,289
1,447,020
Additions
At 31 December 2015
Accumulated depreciation

At 31 December 2015
Carrying amounts
At 1 January 2015
At 31 December 2015
Included in the cost of tangible assets were assets costing USD59,194 which were fully depreciated as of 31 December 2015 (2014:
USD53,194), but which are still in active use.
55
MB
MBBank
BankPlc.
Plc.Phnom
PhnomPenh
PenhBranch,
Branch,Cambodia
Cambodia
Supplementary
Financial
statements
Information
For for
the the
year
year
ended
ended
31 December
31 December
20152015

Leasehold
building
USD
Furniture and
Computer and
fittings office equipment
USD
USD
Motor vehicles
Total USD
KHR000
(Note 4)
Cost
At 1 January 2014
51,214
28,521
70,005
102,850
252,590
1,009,097
Additions
22,923
29,186
52,109
212,345
20,207
51,214
51,444
99,191
102,850
304,699
1,241,649
At 1 January 2014
(4,899)
(14,069)
(58,648)
(48,865)
(126,481)
(505,289)
Charge for the year
(2,561)
(9,421)
(18,652)
(25,712)
(56,346)
(229,610)
(10,121)
(7,460)
(23,490)
(77,300)
(74,577)
(182,827)
(745,020)
At 1 January 2014
46,315
14,452
11,357
53,985
126,109
503,808
At 31 December 2014
43,754
27,954
21,891
28,273
121,872
496,629
At 31 December 2014

At 31 December 2014
Carrying amounts
10. Intangible assets

Computer
software
license
USD
Other
intangible
assets
USD
4,931
Total USD
KHR000
(Note 4)
38,203
43,134
175,772
(1,079)
4,931
38,203
43,134
174,693
Cost
At 1 January 2015
At 31 December 2015
56

At 1 January 2015
(4,931)
(22,774)
(27,705)
(112,899)
Charge for the year
(1,650)
(1,650)
(6,683)
694
(4,931)
(24,424)
(29,355)
(118,888)
At 1 January 2015
15,429
15,429
62,873
At 31 December 2015
13,779
13,779
55,805
At 31 December 2015
Carrying amounts
Included in tangible fixed assets were assets costing USD26,634 which were fully depreciated as of 31 December 2015 (1/1/2015: nil),
but which are still in active use.
Computer
software
license
USD
Other
intangible
assets
USD
4,931
Additions
Total USD
KHR000
(Note 4)
21,703
26,634
106,403
16,500
16,500
67,238
2,131
4,931
38,203
43,134
At 1 January 2014
(2,600)
(17,542)
(20,142)
(80,467)
Charge for the year
(2,331)
(5,232)
(7,563)
(30,823)
(1,609)
(4,931)
(22,774)
(27,705)
(112,899)
2,331
4,161
6,492
25,936
15,429
15,429
62,873
Cost
At 1 January 2014
At 31 December 2014
Total
175,772
Accumulated amortisation

At 31 December 2014
Carrying amounts
At 1 January 2014
At 31 December 2014
57

Note
Supplementary
to the financial
Financial
statements
Information
For the
foryear
the year
ended
ended
31 December
31 December
2015 2015
11. Intangible assets

31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
1,246,374
5,047,815
114,033
464,684
Other Assets
489,043
1,980,624
465,287
1,896,045
Receivables for eMoney services
952,639
3,858,188
Others
162,328
657,428
14,685
59,842
2,850,384
11,544,055
594,005
2,420,571
Prepayments and deposits
12. Deposits from other banks

(a)
By terms:
31/12/2015
Current accounts
Term deposits
(b)
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
2,511,137
10,170,105
3,486,233
14,206,399
16,000,000
64,800,000
15,000,000
61,125,000
18,511,137
74,970,105
18,486,233
75,331,399
By residence status:
31/12/2015
Resident
Non-resident
(c)
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
18,511,039
74,969,708
18,486,135
75,331,000
98
397
98
399
18,511,137
74,970,105
18,486,233
75,331,399
By currency:
31/12/2015
USD
58
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
18,511,137
74,970,105
18,486,233
75,331,399

(d) Interest rates

The annual interest rate of deposits from other banks was as follows:
31/12/2015
31/12/2014
0.5%
0.5%
1.3% - 2.5%
1.3% - 2.30%
Current accounts
Term deposits
13. Amount due to Head Office

31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
30,112,492
121,955,594
1,608,637
6,555,196
4,000,000
16,300,000
30,112,492
121,955,594
5,608,637
22,855,196

Demand deposits
Term deposits
Demand deposits earn interest at rates of 1% per annum (31/12/2014: nil).
14. Deposits from customers

(a)
By account types:
31/12/2015
Current accounts
Term deposits
Deposits for special purpose
Margin deposits
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
14,074,598
57,002,122
2,496,220
10,172,097
5,001,466
20,255,937
7,154,952
29,156,429
10,868,996
44,019,434
25,063
101,505
43,088
175,585
29,970,123
121,378,998
9,694,260
39,504,111
59

Supplementary
Note
to the financial
Financial
statements
Information
For the
foryear
the year
ended
ended
31 December
31 December
2015 2015
(b)
By resident status:
31/12/2015
Resident
Non-resident
(c)
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
29,769,672
120,567,171
9,587,604
39,069,486
200,451
811,827
106,656
434,625
29,970,123
121,378,998
9,694,260
39,504,111
By currency:
31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
USD
24,459,722
99,061,874
9,687,313
39,475,800
KHR
5,503,493
22,289,147
6,947
28,311
EUR
6,908
27,977
29,970,123
121,378,998
9,694,260
39,504,111

(d) Interest rates
The annual interest rate of deposits from customers was as follows:
60
31/12/2015
31/12/2014
Current accounts
0.50% - 0.75%
0.50% - 0.75%
Term deposits
2.50% - 5.25%
2.30% - 5.00%
Deposits for special purpose
0.00% - 0.00%
Not applicable
Margin deposits
0.00% - 0.00%
0.00% - 0.00%

15. Other liabilities
Tax payable
Interest payables
Payables in relation to eMoney services
Others
31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
144,376
584,723
6,183
25,195
54,081
219,028
160,949
655,867
1,730,293
6,845,686
320,123
1,458,497
355,429
1,448,375
2,248,873
9,107,934
522,561
2,129,437
16. Income tax

(a)
Deferred tax liabilities

31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
7,722
31,274
1,175
4,788
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
At 1 January
1,175
4,788
2,819
11,262
Movements during the year
6,547
26,515
(1,644)
(6,699)
(29)
225
7,722
31,274
1,175
4,788
The movement of deferred tax liabilities during the year was as follows:

At 31 December
61

Supplementary
Financial
statements
Information
For the
for year
the year
ended
ended
31 December
31 December
2015 2015
(b) Income tax expenses
31/12/2015
Current income tax expense

Deferred tax
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
229,643
930,054
131,152
534,444
6,547
26,515
(1,644)
(6,699)
236,190
956,569
129,508
527,745
In accordance with Cambodian law, the Branch has an obligation to pay corporate income tax of either the profit tax at the rate of
20% of taxable profits or the minimum tax at 1% of gross revenue, whichever is higher.
The reconciliation of income tax computed at the statutory tax rate to the income tax expense as shown in the income statement
was as follows:
31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)

Adjustments:
606,971
2,458,230
535,573
2,182,458
Non-deductible expenses
541,243
2,192,034
120,187
489,762
Estimated current taxable

profit
1,148,214
4,650,264
655,760
2,672,220
Income tax using statutory

rate at 20%
229,643
930,054
131,152
534,444
79,435
323,697
4,480
17,899
Payments during the year
(19,793)
(80,161)
(56,197)
(229,003)
(1,986)
357
289,285
1,171,604
79,435
323,697
CIT payable at the beginning of the year
CIT payable at the end of

the year
17. Paid-up capital

62
The paid-up capital of USD39,000,000 (2014: USD39,000,000) was fully contributed by Military Commercial Joint Stock Bank.

18. Interest income

customers
Deposits with other banks
31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
5,001,079
20,254,371
3,361,690
13,698,887
33,669
136,358
108,854
443,578
5,034,748
20,390,729
3,470,544
14,142,465
19. Interest expense
31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
556,955
2,248,402
320,957
1,307,900
290,647
1,184,386
267,972
1,091,985
847,602
3,432,788
588,929
2,399,885
20. Net fee and commission income

31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
86,898
351,937
62,961
256,566
197,836
801,236
102,786
418,853
65,317
264,534
26,395
107,560
5,085
20,594
3,229
13,158
355,136
1,438,301
195,371
796,137
(132,213)
(535,462)
(79,383)
(323,486)
(350)
(1,418)
(1,512)
(6,161)
(132,563)
(536,880)
(80,895)
(329,647)
222,573
901,421
114,476
466,490
Fee and commission

income
Loan processing fees
Commission received on
remittances
Letter of credit fees
Others fees and commissions
Fee and commission

expenses
Commission and fee for
remittances
Clearing house to NBC
Net fee and commission

income
63
MB
MBBank
BankPlc.
Plc.Phnom
PhnomPenh
PenhBranch,
Branch,Cambodia
Cambodia
Supplementary
Financial
statements
Information
For for
the the
year
year
ended
ended
31 December
31 December
20152015
21. Depreciation and amortisation
Depreciation of property
and equipment (Note 9)
Amortisation of intangible
assets (Note 10)
31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
68,788
278,591
56,346
229,610
1,650
6,683
7,563
30,823
70,438
285,274
63,909
260,433
22. General and administrative expenses

31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
Staff and other related

costs
731,048
2,960,744
644,783
2,627,491
Rental, repairs and maintenance
368,847
1,493,830
35,358
144,084
Other administrative
expenses
684,298
2,771,408
526,676
2,146,202
1,784,193
7,225,982
1,206,817
4,917,777
23. Allowance for losses on loans and Advances

31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
342,878
1,388,656
150,754
614,323
(68,176)
(277,817)
Specific allowance charged

during the year (Note 8)
2,046,561
8,288,572
1,410,725
5,748,704
Reversal of specific
allowance during the year
(Note 8)
(445,629)
(1,804,797)
(336,355)
(1,370,647)
1,943,810
7,872,431
1,156,948
4,714,563
General allowance charged

during the year (Note 8)
Reversal of general
allowance during the year
(Note 8)
64

24. Net cash used in operating activities
31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
606,971
2,458,230
535,573
2,182,458
1,943,810
7,872,431
1,156,948
4,714,563
70,438
285,274
63,909
260,433
2,621,219
10,615,935
1,756,430
7,157,454
(4,021,484)
(16,287,010)
410,674
1,673,497
2,000,000
8,150,000
Loans and advances to customers
(35,915,115)
(145,456,216)
(16,345,177)
(66,606,596)
Other assets
(2,232,624)
(9,042,127)
58,785
239,549
20,275,863
82,117,245
2,198,610
8,959,336
24,904
100,861
9,324,998
37,999,367
24,503,855
99,240,613
(2,391,363)
(9,744,804)
1,806,332
7,315,646
336,535
1,371,379
(23,756)
(96,212)
(293,330)
(1,195,320)
Accrued interest payables
(106,868)
(432,815)
(23,486)
(95,705)
Net cash used in operations
6,932,326
28,075,920
(2,967,324)
(12,091,843)
(19,793)
(80,161)
(56,197)
(229,003)
6,912,533
27,995,759
(3,023,521)
(12,320,846)
Adjustments for:
Allowance for losses on loans and
advances
Depreciation and amortisation
Changes in:
Statutory deposits
Deposits with other banks

Other liabilities
Accrued interest receivables
Income tax paid

Net cash used in operating activities
65

Supplementary
Financial
statements
Information
For the
for year
the year
ended
ended
31 December
31 December
2015 2015
25. Cash and cash equivalents

31/12/2015
Cash on hand
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
959,281
3,885,088
514,144
2,095,137
7,125,922
28,859,984
3,542,340
14,435,036
3,371,911
13,656,240
792,302
3,228,631
11,457,114
46,401,312
4,848,786
19,758,804
Balances with the National

Bank of Cambodia:
Current and term accounts
Balances with other banks:
Current and fixed deposits
(less than three month
maturity term)
26. Related party balances and transactions

The volumes of related party transactions, outstanding balances at year end and related expenses and income for the year were as
follows:
(a)
Balance with Head Office
Demand deposits
Term deposits
Accrued interest payables
(b)
31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
30,112,492
121,955,595
1,608,637
6,555,196
4,000,000
16,300,000
1,609
6,518
1,333
5,432
Transactions during the year with Head Office

31/12/2015
Interest expenses during

the year
66
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
55,613
226,623

(c)
Compensation of directors
31/12/2015
Salaries and other short

term benefits
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
254,367
1,030,186
238,897
973,505
27. Commitments and contingencies

(a)
Loan commitments, guarantees and other financial liabilities
The Branch had the contractual amounts of the Branchs off-balance sheet financial instruments that commit it to extend credit to customers, guarantees and other facilities as follows:
31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
Undrawn credit facilities
466,584
1,889,665
460,087
1,874,855
Bank guarantees
331,384
1,342,105
223,650
911,374
797,968
3,231,770
683,737
2,786,229
(b) Operating lease commitments

31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
Within 1 year
216,000
874,800
89,280
363,816
Within 2 to 5 years
702,000
2,843,100
918,000
3,717,900
89,280
363,816
(c)
Taxation contingencies
The taxation system in Cambodia is relatively new and is characterised by numerous taxes and frequently changing legislation, which
is often unclear, contradictory, and subject to interpretation among numerous taxation authorities and jurisdictions. Taxes are subject
to review and investigation by a number of authorities, who are enabled by law to impose severe fines, penalties and interest charges.
These facts create risks of additional taxes through reassessment, fines, penalties and interest charges, which are substantially more
significant in Cambodia than in other countries. Management believes that it has adequately provided for tax liabilities based on its
interpretation of current tax legislation.
67

Supplementary
Financial
statements
Information
For the
for year
the year
ended
ended
31 December
31 December
2015 2015
28.
Financial risk management
(a) Overview
The Branch has exposure to the following risks:

operational risk;

credit risk;

market risk; and

liquidity risk.
A primary objective of the Branch in risk management is to comply with NBCs regulations. In addition to minimum requirements of NBC,
the Branch also adopts relevant financial risk management policies of Military Commercial Joint Stock Bank.
(b) Operational risk
Operational risk is the risk of direct or indirect loss arising from inadequate or failed internal processes, personnel, technology and
infrastructure, and from external factors other than credit, market and liquidity risks such as those arising from legal and regulatory
requirements and generally accepted standards of corporate behaviour.
The operational risk losses is managed through established operational risk management processes, proper monitoring and reporting
of the business activities by control and support units which are independent of the business units and oversight provided by the management of the Branch.
The Branchs operational risk management entails the establishment of clear organisational structures, roles and control policies. Various internal control policies and measures have been implemented including the establishment of signing authorities, defining system
parameters controls, streamlining procedures and documentation and compliance with regulatory and other legal requirements.
(c)
Credit risk
Credit risk is the financial loss to the Branch if a borrower or counterparty fails to meet its contractual obligations, and arises principally
from the loans and advances.
(i)
Management of credit risk
The lending activities are guided by the Branchs credit policy to ensure that the overall objectives in the area of lending are achieved;
i.e., that the loan portfolio is strong and healthy and credit risks are well diversified. The credit policy documents the lending policy,
collateral policy and credit approval processes, including the Branchs own internal grading system, and procedures implemented to
ensure compliance with NBC Guidelines.
(ii)
Risk limit control and mitigation policies
The Branch operates and provides loans and advances to individuals or enterprises within the Kingdom of Cambodia. The Branch manages, limits and controls the concentration of credit risk whenever it is identified. Large exposure is defined by NBC as overall credit
exposure to any single beneficiary which exceeds 10% of the Branchs net worth.
The Branch is required, under the conditions of Prakas No. B7-06-226 of the NBC, to maintain at all times a maximum ratio of 20%
between the Branchs overall credit exposure to any single beneficiary and the Branchs net worth. The aggregation of large credit
exposure must not exceed 300% of the Branchs net worth.
68

The Branch employs a range of policies and practices to mitigate credit risk. The most traditional of these is the taking of security in
the form of collateral for loans and advances to customers, which is a common practice. The Branch implements guidelines on the
acceptability of specific classes of collateral or credit risk mitigation. The principal collateral types to secure for loans and advances to
customers are:
-
-
-
-
-
Mortgages over residential properties (land, building and other properties);

Charges over business assets such as land and buildings;
Customers fixed deposit placed with the Branch;
Cash in the form of margin deposits; and
Debenture over fixed and floating assets of borrowers.
(iii)
Impairment and allowance policies
The Branch is required to follow the mandatory credit classification and allowance in accordance with the relevant Prakas, as disclosed
in Note 3(d).
(iv)
Exposure to credit risk

31/12/2015
Deposits and placements

with other banks
customers gross
Other financial assets
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
3,371,911
13,656,240
792,302
3,228,631
101,025,020
409,151,330
65,109,905
265,322,863
1,771,684
7,175,320
574,749
2,342,102
106,168,615
429,982,890
66,476,956
270,893,596
The above table represents the maximum credit risk exposure to the Branch at 31 December 2015 and 31 December 2014, without taking account of any collateral held or other credit enhancement attached.
As shown above, 95% of total maximum exposure is derived from loans and advances to customers (31 December 2014: 98%).
(v)
Loans and advance to customers

31/12/2015
31/12/2014
USD
KHR000
(Note 4)
USD
KHR000
(Note 4)
90,090,725
364,867,437
55,802,949
227,397,017
Loan and advances past

due but not impaired
4,178,083
16,921,234
5,490,344
22,373,152
Loan and advances individually impaired
6,756,212
27,362,659
3,816,612
15,552,694
101,025,020
409,151,330
65,109,905
265,322,863
Loan and advances neither

past due nor impaired
69

Note
Supplementary
to the financial
Financial
statements
Information
For the
foryear
the year
ended
ended
31 December
31 December
2015 2015
Loans to customers neither past due nor impaired

Loans to customers neither past due nor impaired are good quality loans to customers for which no experience of default. These loans
are supported by collaterals and management views that likelihood of default is relatively low.
Impaired loans and advances

Individually impaired loans and advances are loans and advances for which the Branch determines that there is objective evidence of
impairment and it does not expect to collect all principal and interest due according to the contractual terms of the loans and advances.
In compliance with NBC Guidelines, an allowance for doubtful loans and advances is made for loans and advances with payment overdue more than 90 days. A minimum level of specific allowance for impairment is made depending on the classification concerned,
unless other information is available to substantiate the repayment capacity of the counterparty. Refer to the accounting policy stated
in Note 3(d).
Past due but not impaired loans and advances

Past due but not impaired loans and advances are those for which contractual interest or principal payments are past due more than 30
days but less than 90 days, unless other information is available to indicate otherwise. In compliance with NBC Guidelines such loans
are classified as special mentioned with a specific allowance of 3%.
Loans with renegotiated terms/restructured loans

Loans with renegotiated terms are loans that have been rescheduled or refinanced in accordance with an agreement setting forth a
new repayment schedule on a periodic basis occasioned by weaknesses in the borrowers financial condition and/or inability to repay
the loan as originally agreed. Loans to be restructured are analysed on the basis of the business prospects and repayment capacity of
the borrower according to new cash flow projections supported by updated business perspectives and overall market conditions being
based on realistic and prudent assumptions.
Once the loan is restructured it remains in the same category independent of satisfactory performance after restructuring. The classification is not improved unless there are no arrears in repayment of principal and interest within 3 instalment periods and within a
period of not less than 3 months.
Write-off policy
In compliance with NBC Guidelines, the Branch shall remove a loan/advance or a portion of a loan from its balance sheet when the
Branch loses control of the contractual rights over the loan or when all or part of a loan is deemed uncollectible; or there is no realistic
prospect of recovery.
Collateral
The Branch holds collateral against loans and advances in the form of mortgage interests over property and/or guarantees. The value
of collateral is based on the valuation performed internally by the Branch.
There are non-financial assets obtained by the Branch during the year by taking possession of collateral held as security against loans
and advances.
Concentration of credit risk

The analysis of concentrations of credit risk from loans and advances at the balance date is shown in Note 9 to the financial statements.
70

(d)
Market risk
Market risk is the risk of loss arising from adverse movement in the level of market prices or rates, the two key components being foreign
currency exchange risk and interest rate risk.
Market risk arising from the trading activities is controlled by marking to market the trading positions against their predetermined market
risk limits
(i)
Foreign currency exchange risk
Foreign currency exchange risk refers to the adverse exchange rate movements on foreign currency exchange positions taken from time
to time. The Branch maintains a policy of not exposing itself to large foreign exchange positions. Any foreign currency exchange open
positions are monitored against the operating requirements, predetermined position limits and cut-loss limits.
As of 31 December 2014, balances in monetary assets and liabilities denominated in currencies other than USD are not significant. Therefore, foreign currency exchange risk was assessed as low.
(ii)
Interest rate risk
Interest rate risk refers to the volatility in net interest income as a result of changes in the levels of interest rate and shifts in the composition of the assets and liabilities. Interest rate risk is managed through close monitoring of returns on investment, market pricing, cost of
funds and through interest rate sensitivity gap analysis. The potential reduction in net interest income from an unfavourable interest rate
movement is monitored against the risk tolerance limits set.
An analysis of the interest rate risk pertaining to the Branchs financial assets and financial liabilities was disclosed below.
71

Supplementary
Note
to the financial
Financial
statements
Information
For the
foryear
the year
ended
ended
31 December
31 December
2015 2015
28.
Financial risk management (continued)
Market risk ( continues)

Overdue
Up to 1 month
From 1 to
3 months
From 3 to
6 months
Cash on hand
959,281
Balance with NBC
12,790,778
Deposits and placements with other

banks
1,371,911
2,000,000
10,934,295
412,827
4,019,901
264,705
10,934,295
15,534,797
6,019,901
264,705
18,511,137
30,112,492
25,566,853
738,744
124,189
Other financial liabilities
74,190,482
738,744
124,189
Interest sensitivity gap
10,934,295
(58,655,685)
5,281,157
140,516
Interest sensitivity gap-KHR000

(Note 4)
44,283,893
(237,555,523)
21,388,687
569,090
As at 31 December 2015 (USD)

Assets
Loans and advances to customersgross

Liabilities
72

From 6 to 12 months
From 1 to 5 years
Over 5 years
Non-interest sensitive
959,281
3,900,000
16,690,778
3,371,911
21,403,237
61,908,209
2,081,846
101,025,020
1,771,684
1,771,684
25,303,237
61,908,209
2,081,846
1,771,684
123,818,674
18,511,137
30,112,492
2,984,137
556,200
29,970,123
2,104,497
2,104,497
2,984,137
556,200
2,104,497
80,698,249
22,319,101
61,352,009
2,081,845
(332,813)
43,120,425
90,392,359
248,475,636
8,431,472
(1,347,893)
174,637,721
Total
73

Supplementary
Financial
statements
Information
For the
foryear
the year
ended
ended
31 December
31 December
2015 2015

28.
Market risk ( continues)

(USD)
Overdue
Up to
1 month
From 1 to
3 months
From 3 to
6 months
Cash on hand
514,144
Balance with NBC
5,185,712
Deposits and placements with other

banks
792,302
9,306,956
2,895,279
455,704
269,702
9,306,956
9,387,437
455,704
269,702
15,486,233
3,000,000
5,608,637
2,812,088
2,277,549
280,688
18,298,321
10,886,186
280,688
9,306,956
(8,910,884)
(10,430,482)
(10,986)
37,925,846
(36,311,852)
(42,504,214)
(44,768)
Assets

Liabilities
Interest sensitivity gap

Interest sensitivity gap-KHR000
(Note 4)

28.
Fair value sensitivity analysis for fixed rate instruments
The Branch does not account for any fixed rate liabilities at fair value through profit or loss, and the Branch does not have
derivatives as at year end.
Therefore, a change in interest rates at the reporting date would not affect income statement significantly.
Cash flow sensitivity analysis for variable-rate instruments
The Branch does not have significant variable-rate instruments. Therefore, no cash flow sensitivity analysis for variable-rate
instruments was presented
(e)
Liquidity risk relates to the ability to maintain sufficient liquid assets to meet its financial commitments and obligations when
they fall due at a reasonable cost.
In addition to full compliance of all liquidity requirements, the management of the Branch closely monitors all inflows and
outflows and the maturity gaps through periodical reporting. Movements in loans and customers deposits are monitored
and liquidity requirements adjusted to ensure sufficient liquid assets to meet its financial commitments and obligations as
and when they fall due.
74
Liquidity risk

From 6 to
12 months
From 1 to
5 years
Over 5 years
Non-interest
sensitive
Total
514,144
3,900,000
9,085,712
792,302
26,460,151
24,593,780
1,128,333
65,109,905
574,749
574,749
30,360,151
24,593,780
1,128,333
574,749
76,076,812
18,486,233
5,608,637
4,280,847
43,088
9,694,260
516,378
516,378
4,280,847
559,466
34,305,508
26,079,304
24,593,780
1,128,333
15,283
41,771,304
106,273,164
100,219,654
4,597,957
62,278
170,218,065
75
MB
MB Bank
Bank Plc.
Plc. Phnom
Phnom Penh
Penh Branch,
Branch, Cambodia
Cambodia
Note
Supplementary
to the financial
Financial
statements
Information
For the
foryear
the year
ended
ended
31 December
31 December
2015 2015
The following table provides an analysis of the financial assets and financial liabilities of the Branch into relevant maturity groupings
based on the remaining periods to repayment.
Above 3
months
Up to 3
month
Less than 1
months
Cash on hand
959,281
Balances with NBC
12,790,778
Balances with other banks
1,371,911
6,756,212
4,178,083
412,827
952,639
6,756,212
4,178,083
16,487,436
18,511,137
30,112,492
25,566,853
54,081
74,244,563
6,756,212
4,178,083
(57,757,127)
27,362,659
16,921,236
(233,916,364)
As at 31 December 2015 (USD)

Assets

Liabilities
Net liquidity gap

Net liquidity gap-KHR000 (Note 4)
76

From 1 to 3
months
From 3 to 12
months
From 1
to 5 years
Over
5 years
Total
959,281
3,900,000
16,690,778
2,000,000
3,371,911
4,019,901
21,667,943
61,908,209
2,081,845
101,025,020
489,043
330,002
1,771,684
6,508,944
25,897,945
61,908,209
2,081,845
123,818,674
18,511,137
30,112,492
738,744
3,108,326
556,200
29,970,123
360,123
1,690,293
2,104,497
1,098,867
4,798,619
556,200
80,698,249
5,410,077
21,099,326
61,352,009
2,081,845
43,120,425
21,910,812
85,452,270
248,475,636
8,431,472
174,637,721
77

Note
Supplementary
to the financial
Financial
statements
Information
For the
foryear
the year
ended
ended
31 December
31 December
2015 2015
(USD)
Above 3
months
Up to 3
month
Less than 1
months
Cash on hand
514,144
Balances with NBC
5,185,712
Balances with other banks
792,302
3,816,612
5,490,344
2,895,279
3,816,612
5,490,344
9,387,437
47,328
1,172,289
15,075,039
15,486,233
2,855,176
160,949
18,502,358
3,816,612
5,490,344
(9,114,921)
15,552,694
22,373,152
(37,143,302)
Assets
Amount due from Head Office

Liabilities
Net liquidity gap

Net liquidity gap-KHR000 (Note 4)
78

From 1 to 3
months
From 3 to 12
months
From 1
to 5 years
Over
5 years
Total
514,144
3,900,000
9,085,712
792,302
455,704
26,729,853
24,593,780
1,128,333
65,109,905
465,287
109,462
574,749
920,991
26,839,315
24,593,780
5,028,333
76,076,812
2,456,917
35,138,654
5,205,834
5,825,513
64,921,574
3,000,000
18,486,233
5,608,637
5,608,637
2,277,549
280,688
4,280,847
9,694,260
355,429
516,378
11,241,615
280,688
4,280,847
34,305,508
(10,320,624)
26,558,627
20,312,933
5,028,333
41,771,304
(42,056,543)
108,226,405
82,775,202
20,490,457
170,218,065
79
MB
MB Bank
Bank Plc.
Plc. Phnom
Phnom Penh
Penh Branch,
Branch, Cambodia
Cambodia
Note
Supplementary
to the financial
Financial
statements
Information
For the
foryear
the year
ended
ended
31 December
31 December
2015 2015
(f) Fair value of financial assets and liabilities

The Branch has not determined fair values of these financial instruments for disclosure in the 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 Cambodian Accounting Standards. There fair values of these financial instruments may differ from their carrying amounts.
(g)
Capital management
(i)
Regulatory capital
The Branchs lead regulator, the National Bank of Cambodia (NBC), sets and monitors capital requirements for the Branch as a whole.
The Branchs policy is to maintain a strong capital base so as to maintain market confidence and to sustain further development of the
business. The impact of the level of capital on shareholders return is also recognised and the Branch recognised the need to maintain
a balance between the higher returns that might be possible with greater gearing and advantages and security afforded by a sound
capital position.
(ii)
Capital allocation
The allocation of capital between specific operations and activities is, to a large extent, driven by optimisation of the return achieved
on the capital allocated. The amount of capital allocated to each operation or activity is based primarily upon the regulatory capital.
80


Supplementary Financial Information
for the year ended 31 December 2015
81

Note
Supplementary
to the financial
Financial
statements
Information
For the
foryear
the year
ended
ended
31 December
31 December
2015 2015
The National Bank of Cambodia

22 - 24 Norodom Boulevard
Phnom Penh
Cambodia
Date: 31 March 2016
Statement by the management on the Supplementary Financial Information
We, being the Directors of MB Bank Plc. Phnom Penh Branch, Cambodia (the Branch), do hereby state that in our
opinion, the accompanying Supplementary Financial Information of the Bank as set out on pages 2 to 14, the preparation of which is the sole responsibility of the management, is properly drawn up so as to reflect fairly the Financial
Information of the Bank for the year ended 31 December 2015 as required by the National Bank of Cambodia in their
Prakas and applicable notices.

Than The Hanh
Director
82
MB
MBBank
BankPlc.
Plc.Phnom
PhnomPenh
PenhBranch,
Branch,Cambodia
Cambodia
Supplementary
Financial statements
InformationFor
forthe
theyear
yearended
ended3131December
December2015
2015
1. Limitation
This Supplementary Financial Information is prepared by the management of the Branch, solely for the use of the National
Bank of Cambodia (NBC). It is not to be used for any other purpose without the written consent of the Directors or management of the Branch.
The computations of the Supplementary Financial Information according to the definitions of the relevant Prakas and applicable notices set out in the respective schedules as indicated below form an integral part of and should be read in conjunction
with the summary.
83

2.
Significant financial information
The following summarises the Significant Financial Information of the Branch as required by NBC on their applicable Prakas.
31/12/2015
Sche-dule
Refe-rence
31/12/2014
Financial
Information
USD
(if not in %)
KHR000
(if applicable)
USD
(if not in %)
KHR000
(if applicable)
Liquidity ratio
61.42%
61.42%
52.07%
52.07%
II
Minimum capital
39,000,000
157,950,000
39,000,000
158,925,000
III
Solvency ratio
38.92%
38.92%
61.45%
61.45%
IV
Net worth
40,323,725
163,287,369
39,599,981
161,369,922
Foreign currency net open

position
USD
10.27%
10.27%
-0.42%
-0.42%
KHR
-10.25%
-10.25%
0.42%
0.42%
EUR
-0.02%
-0.02%
Normal/Standard
90,090,725
364,867,436
55,802,949
227,397,017
Special mention
4,178,083
16,921,235
5,490,344
22,373,152
Sub-standard
2,124,072
8,602,492
2,621,709
10,683,464
Doubtful
4,237,237
17,160,810
800,000
3,260,000
Loss
394,903
1,599,357
394,903
1,609,230
101,025,020
409,151,330
65,109,905
265,322,863
NBCs benchmark
3,964,585
16,056,569
2,041,985
8,321,087
Banks provision
4,321,432
17,501,799
2,377,622
9,688,809
VII
Large exposures (total)
205.3%
205.3%
121.48%
121.48%
VIII
Loans to related parties
195.37%
195.37%
IX
0.89%
0.89%
0.31%
0.31%
VI
Loan classification
Allowance for bad and doubtful debts
3. Translation
For the purpose of this Supplementary Financial Information, unless otherwise stated, the United States Dollars (USD) is the
reporting currency. The translations of United States Dollars amounts into Khmer Riel are included solely for compliance with the
guidelines issued by the NBC regarding the preparation and presentation of financial statements and have been made using the
prescribed official exchange rate of USD1 to KHR 4.075 published by the NBC on 31 December 2015. These translations should not
be construed as representations that the United States Dollars amounts have been, could have been, or could in the future be,
converted into Khmer Riel at this or any other rate of exchange.
84
MB
MBBank
BankPlc.
Plc.Phnom
PhnomPenh
PenhBranch,
Branch,Cambodia
Cambodia
Supplementary
statementsfor
Forthe
theyear
yearended
ended3131December
December2015
2015
4. Other ratios
The ratios set out below are based on the audited financial statements of the Bank as at 31 December 2015 and are presented as
required by NBCs Prakas No. B7-04-204 dated 29 December 2004.
Capital
2015
2014
(1)
Equity to total assets
32.9%
53.4%
(2)
Capital tier I to total assets
32.6%
52.9%
(3)
Capital tier I to risk weighted assets
38.0%
60.7%
(4)
Capital tier 1 + tier 2 to risk weighted assets
38.9%
61.5%
(5)
Net worth to assets
33.3%
53.6%
(6)
Solvency ratio
38.9%
61.5%
(7)
Debts to total assets
67.1%
46.6%
(8)
Debts to equity
203.8%
87.1%
(9)
Dividend to net profit
0.0%
0.0%
(10)
Banking reserve to total loans
0.0%
0.0%
(11)
Banking reserves to total assets
0.0%
0.0%
(12)
Non-performing loans to total loans
6.7%
5.9%
(13)
Non-performing loans to total assets
5.6%
5.2%
(14)
Classified assets to total loans
10.8%
0.0%
(15)
Classified assets to total assets
9.0%
0.0%
(16)
Classified assets to equity
27.5%
0.0%
(17)
Loans to related parties to total loans
0.0%
0.0%
(18)
Large exposures to total loans
77.9%
73.8%
(19)
Loans to related parties to net worth
0.0%
0.0%
(20)
Large exposures to net worth
195.37%
121.48%
(21)
General provision to total loans
0.9%
0.9%
(22)
Specific provision to total loans
3.4%
2.8%
(23)
Specific provision to non-performing loans
50.6%
47.7%
(24)
All allowances to total assets
3.6%
3.2%
Asset Quality
85

(25)
Loans to deposits
337.1%
671.6%
(26)
Return on assets
0.3%
0.5%
(27)
Return on equity
0.9%
1.0%
(28)
Gross yield
4.2%
4.7%
(29)
Net interest margin to total assets
3.5%
3.9%
(30)
Other income to total assets
0.1%
0.0%
(31)
Provisions to total assets
1.6%
1.6%
(32)
Overhead to total assets
0.1%
0.1%
(33)
Net income before tax to total assets
0.5%
0.7%
(34)
Taxes to total assets
0.2%
0.2%
(35)
Interest margin to gross income
76.6%
78.3%
(36)
Non-interest income to gross income
1.4%
0.4%
(37)
Non-interest expenses to gross income
1.5%
1.3%
(38)
Times interest earned
171.6%
190.9%
9.5%
6.6%
67.1%
46.5%
Liquidity
(39)
Liquid assets
(40)
Short-term liabilities
(41)
Net liquid assets
-85.9%
-85.7%
(42)
Quick ratio
124.3%
160.1%
(43)
Deposits to total loans
29.7%
14.9%
The above calculation of the other ratios is presented in Annex A.
86

Supplementary
statements for
Schedule I - Liquidity ratio

The liquidity ratio of the Bank was calculated based on Prakas B7-00-38 and B7-04-207 as follows:
2015
USD
2014
KHR000
USD
KHR000
Debit items
Cash and gold
959,281
3,885,088
514,144
2,095,137
Deposits with NBC (excluding statutory

deposits)
7,125,922
28,859,984
3,542,340
14,435,036
Deposits with banks
3,371,911
13,656,240
792,302
3,228,631
11,457,114
46,401,312
4,848,786
19,758,804
Sight accounts with NBC, banks and

financial institutions
Borrowings from NBC and banks less

than one month
11,457,114
46,401,312
4,848,786
19,758,804
554,793
2,246,911
6,391,480
26,045,280
10,868,996
44,019,435
22,880,903
90,667,659
11,240,265
45,804,082
Fixed deposits less than one month at

80%
16,801,173
68,044,750
13,052,694
53,189,730
Fixed deposits more than one month at

50%
10,500,733
42,527,969
4,919,542
20,047,135
9,951,441
40,303,336
3,615,325
14,732,450
37,253,347
150,876,055
21,587,562
87,969,315
61.42%
61.42%
52.07%
52.07%
Loans to banks and financial institutions

less than one month
Credit items
Lender position
Numerator
Treasury balance - lender position
Loans less than one month excluding
those without maturity date
Treasury bills less than one month
Denominator
Saving deposits at 50%

Demand deposits at 60%
Liquidity ratio - Numerator/Denominator
87

Schedule II - Minimum capital

The paid-up share capital of the Bank as at 31 December 2015 was USD 39 million equivalent to KHR.
2014 - USD 39 million).
157,950 million (31 December
Schedule III - Solvency ratio

The solvency ratio of the Bank was calculated based on Prakas B7-00-38 and B7-04-207 as follows:
2015
Weighting
Numerator
Banks net worth (Schedule IV)
2014
USD
KHR000
USD
KHR000
40,323,725
163,311,086
39,542,600
161,136,095
Denominator
Total aggregate assets
Cash, gold and claims on NBC
0%
Assets collateralized by deposits
0%
Claims on sovereign rated AAA

to AA
0%
Claims on sovereign rated A+

to A-
20%
Claims on banks rated AAA to

AA-
20%
Claims on sovereign rated BBB+

to BBB-
50%
Claims on banks rated A+ to A-
50%
Other assets
100%
103,283,172
418,296,847
64,240,462
261,779,883
Full risk
100%
Medium risk
50%
331,384
1,342,105
111,825
455,687
Moderate risk
20%
Low risk
0%
103,614,556
419,638,952
64,352,287
262,235,570
38.92%
38.92%
61.45%
61.45%
Off-balance sheet items
Solvency ratio - Numerator/

Denominator
88
MB
MBBank
BankPlc.
Plc.Phnom
PhnomPenh
PenhBranch,
Branch,Cambodia
Cambodia
Supplementary
statementsfor
Forthe
theyear
yearended
ended3131December
December2015
2015
Schedule IV - Net worth

The Banks net worth calculated based on the NBCs Prakas No. B7-010-182 dated 15 October 2010 was as follows:
2015
USD
2014
KHR000
USD
KHR000
Tier 1 (Core Capital)

Sub-total A:
Capital
Reserves other than revaluation
Premiums related to capital
Retained earnings
Audited net profit for the last financial
year
39,000,000
157,950,000
39,000,000
158,925,000
(26,849)
(108,738)
57,381
232,393
(22,012)
(89,699)
406,065
1,644,563
79,393
323,526
Other items approved by NBC

Sub-total A
39,436,597
159,718,218
39,057,381
159,158,827
0.15%
0.15%
0.00%
0.00%
13,779
55,805
15,429
62,873
Shareholders, Directors, and Related

parties:
Unpaid portion(s) of capital
Loans, overdrafts and other advances
Debt instruments held bearing signature of shareholders, directors and

related parties
Other loss(es)
13,779
55,805
15,429
62,873
39,422,818
159,669,398
39,041,952
159,095,954
Limit check on retained earning (maximum 20% of Sub-total A)

Sub-total B:
Own shares held (at book value)
Accumulated losses
Intangible assets
Sub-total B
Total Tier 1 Capital (A - B)
89

Tier 2 (Complementary Capital)

Sub-total C:
Revaluation reserves approved by
NBC
Provisions for general banking risks

approved by NBC
900,907
3,648,673
558,029
2,273,968
900,907
3,648,673
558,029
2,273,968
2.23%
2.23%
1.43%
1.43%
Equity participation in banking or

financial institution
Other items
Sub-total D
900,907
3,648,673
558,029
2,273,968
2.23%
2.23%
1.43%
1.43%
40,323,725
163,311,086
39,599,981
161,369,922
General provision of 1% foreseen

in Prakas on asset classification and
provisioning in banking and financial
institution
Subordinated debts approved by NBC
Other items approved by NBC
Sub-total C
Limit check on subordinated debts
(maximum 50% of Tier 1 Capital)
Sub-total D:
Total Tier 2 Capital (C - D)

Limit check on Tier 2 Capital(maximum
100% of
Tier 1 Capital)
Banks net worth (Capital Tier 1 + Tier
2)
90
MB
MBBank
BankPlc.
Plc.Phnom
PhnomPenh
PenhBranch,
Branch,Cambodia
Cambodia
Supplementary
statementsfor
Forthe
theyear
yearended
ended3131December
December2015
2015
Schedule VI - Foreign currency net open position

The foreign currency net open position of the Bank calculated based on Prakas B7-00-38 is as followed:
Element after deduction of affected provision
1
Currency
Currency
receivables
Liabilities and
Assets
Off-balance
capital
sheet
Currencies
payables
Off-balance
sheet
US Dollars
120,576,609
116,435,386
Khmer Riel
1,369,282
5,503,597
EUR
6,908
SGD
THB
Others
Total
Net open
position
5
Net open
+(long) or
position/Net
-(short)
worth
Limit
Excess
(1-2+3-4)
4,141,223
10.27%
(4,134,315)
-10.25%
(6,908)
-0.02%
121,945,891
121,945,891
Schedule VII - Loan classification and provision for bad and doubtful debts
The following loan classification and provision for bad and doubtful debts is summarised according to NBCs Prakas No. B7-00-51,
B7-02-145, B7-04-01, B7-05-01, B7-08-193 and B7-09-074.
Total
USD
NBCs Benchmark
USD
Bank's Provision
USD
Variance
USD
Normal/standard
90,090,725
1%
900,907
900,907
Special mention
4,178,083
3%
125,342
125,342
Substandard
2,124,072
20%
424,814
434,059
(9,245)
Doubtful
4,237,237
50%
2,118,619
2,387,612
(268,993)
394,903
100%
394,903
473,512
(78,609)
3,964,586
4,321,432
(356,847)
Loss
Allowance for bad and doubtful
loans
91

Equivalent in
KHR000
KHR000
KHR000
KHR000
Normal/standard
364,867,437
1%
3,648,674
3,648,674
Special mention
16,921,234
3%
507,637
507,637
Substandard
8,602,492
20%
1,720,498
1,757,937
(37,439)
Doubtful
17,160,810
50%
8,580,405
9,669,827
(1,089,422)
Loss
1,599,357
100%
1,599,357
1,917,724
(318,367)
16,056,571
17,501,799
(1,445,228)

loans
Total
USD
NBCs Benchmark
USD
Bank's Provision
USD
Variance
USD
Normal/standard
55,802,949
1%
558,029
558,029
Special mention
5,490,344
3%
164,710
164,710
Substandard
2,621,709
20%
524,342
834,793
(310,451)
Doubtful
800,000
50%
400,000
401,133
(1,133)
Loss
394,903
100%
394,903
418,956
(24,053)
2,041,985
2,377,622

loans
Equivalent in
KHR000
KHR000
KHR000
KHR000
Normal/standard
227,397,017
1%
2,273,970
2,273,970
Special mention
22,373,152
3%
671,195
671,195
Substandard
10,683,464
20%
2,136,693
3,401,781
(1,265,089)
Doubtful
3,260,000
50%
1,630,000
1,634,617
(4,617)
Loss
1,609,230
100%
1,609,230
1,707,246
(98,016)
8,321,088
9,688,809
(1,367,722)

loans
92
MB
MBBank
BankPlc.
Plc.Phnom
PhnomPenh
PenhBranch,
Branch,Cambodia
Cambodia
Supplementary
statementsfor
Forthe
theyear
yearended
ended3131December
December2015
2015
Schedule VIII - Large Exposures

The Bank has large exposure individually exceeding 10% of the Banks net worth as at 31 December 2014. The exposure is the higher of the outstanding loans or commitments and the authorised loans or commitments.
No
Name of borrower%
Date of NBCs
approval
Maturity Date
Approved
Limit
USD
Outstanding
Balance
USD
Total
Exposure
USD
Weighting
Following
Prakas
(%)
Total
weighted
exposure
USD
Total
weighted Maximum
Exexposure/
(%)
cess
net worth
(%)
(%)
Binh Phuoc Kratie

Rubber 2 Company 20/12/2013
20170829
19,800,000
6,287,000
6,287,000
100%
6,287,000
15.59%
20%
Binh Phuoc Kratie

20170911
19,800,000
380,000
380,000
100%
380,000
0.94%
20%
Binh Phuoc Kratie

20170912
19,800,000
1,070,000
1,070,000
100%
1,070,000
2.65%
20%
Eastern Rubber
(Cambodia) CO., Ltd 20/12/2013
20170912
19,800,000
6,570,000
6,570,000
100%
6,570,000
16.30%
20%
Binh Phuoc Kratie

20170929
19,800,000
300,000
300,000
100%
300,000
0.74%
20%
Sovann Vuthy Co.,

Ltd
20/12/2013
20171002
19,800,000
1,580,000
1,580,000
100%
1,580,000
3.92%
20%
Sovann Vuthy Co.,

Ltd
20/12/2013
20171113
19,800,000
450,000
450,000
100%
450,000
1.12%
20%
Ana Water & Smiler

Beverage Co., Ltd
N/A
20191119
4,000,000
2,500,000
2,500,000
100%
2,500,000
6.20%
20%
Sovann Vuthy Co.,

Ltd
20/12/2013
20171218
19,800,000
1,520,000
1,520,000
100%
1,520,000
3.77%
20%
10
Sovann Vuthy Co.,

Ltd
20/12/2013
20171226
19,800,000
537,000
537,000
100%
537,000
1.33%
20%
11
Sovann Vuthy Co.,

Ltd
20/12/2013
20180122
19,800,000
380,000
380,000
100%
380,000
0.94%
20%
12
Sovann Vuthy Co.,

Ltd
20/12/2013
20180205
19,800,000
625,000
625,000
100%
625,000
1.55%
20%
13
Viettel (Cambodia)
Pte. Ltd
05/11/2015
20170403
35,000,000 23,000,000 23,000,000 100%
23,000,000
57.05%
20%
14
Viettel (Cambodia)
Pte. Ltd
05/11/2015
20160822
35,000,000
3,000,000
7.44%
20%
3,000,000
3,000,000
100%
93

Schedule VIII - Large Exposures ( Continued)

The Bank has large exposure individually exceeding 10% of the Banks net worth as at 31 December 2014. The exposure is the
higher of the outstanding loans or commitments and the authorised loans or commitments.
No
Name of borrower%
Date of NBCs
approval
Maturity Date
Approved
Limit
USD
Outstanding
Balance
USD
Total
Exposure
USD
Weighting
Following
Prakas
(%)
Total
weighted
exposure
USD
Total
weighted Maximum
Exexposure/
(%)
cess
net worth
(%)
(%)
15
Viettel (Cambodia)
Pte. Ltd
05/11/2015
20160829
35,000,000
2,000,000
2,000,000
100%
2,000,000
4.96%
20%
16
Viettel (Cambodia)
Pte. Ltd
05/11/2015
20160909
35,000,000
5,000,000
5,000,000
100%
5,000,000
12.40%
20%
17
Viettel (Cambodia)
Pte. Ltd
23/12/2013
20170401
20,000,000 12,000,000 12,000,000 100%
12,000,000
29.76%
20%
18
Viettel (Cambodia)
Pte. Ltd
23/12/2013
20160930
20,000,000 4,000,000
4,000,000
100%
4,000,000
9.92%
20%
19
Viettel (Cambodia)
Pte. Ltd
23/12/2013
20161205
20,000,000 6,000,000
6,000,000
100%
6,000,000
14.88%
20%
20
Ana Water & Smiler

Beverage Co., Ltd
N/A
20191119
4,000,000
1,584,748
1,582,268
100%
1,582,268
3.92%
20%
22
American Lubes
Co., Ltd
N/A
20160131
4,000,000
3,986,286
3,986,286
100%
3,986,286
9.89%
20%
82,770,034
205.3%
Total Large Exposure
94
82,770,034 82,770,034

Supplementary
statements for
Schedule IX - Loans to related party

As at 31 December 2015, the Bank has no loan which is disclosed as related party loan.
Schedule X - Property and equipment
The ratio of the Banks property and equipment used for the operations of the Bank to net worth was as follows:
2015
2014
USD
KHR000
USD
KHR000
357,289
1,447,020
121,872
496,628
357,289
1,447,020
121,872
496,628
Banks net worth (Schedule IV)
40,323,725
163,311,086
39,599,981
161,369,922
Property and equipment ratio
A/B
0.89%
0.89%
0.31%
0.31%
As per audited financial statements:

95

The following calculations of other ratios are based on the audited financial statements of the Bank and are presented as required by
NBC in their Prakas No. B7-04-204 dated 29 December 2004.
Formula by NBC
No
Ratios
Numerator
A
Numerator
B
CAPITAL
96
Equity to total assets
Equity
Total assets
Capital tier 1 to total assets
Capital tier 1
Total assets
Capital tier 1 to risk weighted assets Capital tier 1
Risk weighted assets
Capital tier 1 + tier 2 to risk weighted

Capital tier 1 + tier 2
assets
Net worth to total assets
Net worth
Total assets
Solvency ratio
Net worth
Debts to total assets
Total liabilities
Total assets
Debts to equity
Total liabilities
Equity
Dividend to net profit
Dividend
Net profit
10
Banking reserve to total loans
Banking reserves
Total loans (gross)
11
Banking reserve to total assets
Banking reserves
Total assets
12
NPL to total loans
NPL
Total loan (gross)
13
NPL to total assets
NPL
Total assets
14
Classified assets to total loan
Classified assets
Total loans (gross)
15
Classified assets to total asset
Classified assets
Total assets
16
Classified assets to equity
Classified assets
Equity
17
Loan to related parties to total loans Loan to related parties
Total loans (gross)
18
Large exposure to total loans
Total loans (gross)
19
Loan to related parties to net worth Loan to related parties
Net worth
20
Large exposure to net worth
Large exposure
Net worth
21
General provision to total loans
General provision
Total loans (gross)
22
Specific provision to total loans
Specific provision
Total loans (gross)
23
Specific provision to NPL
Specific provision
NPL
Large exposure

Supplementary
statements for
31-Dec-15 Calculation (in figure)

Numerator (A)
USD
Denominator (B)
USD
Ratio
2014
Ratio
A/B
%
A/B
%
39,807,378
120,947,010
32.9%
53.4%
39,422,818
120,947,010
32.6%
52.9%
39,422,818
103,614,556
38.0%
60.7%
40,323,725
103,614,556
38.9%
61.5%
40,323,725
120,947,010
33.3%
53.6%
40,323,725
103,614,556
38.9%
61.5%
81,139,632
120,947,010
67.1%
46.6%
81,139,632
39,807,378
203.8%
87.1%
370,781
0.0%
0.0%
101,025,020
0.0%
0.0%
120,947,010
0.0%
0.0%
6,756,212
101,025,020
6.7%
5.9%
6,756,212
120,947,010
5.6%
5.2%
10,934,295
101,025,020
10.8%
0.0%
10,934,295
120,947,010
9.0%
0.0%
10,934,295
39,807,373
27.5%
0.0%
101,025,020
0.0%
0.0%
82,770,034
101,025,020
81.9%
73.8%
40,323,725
0.0%
0.0%
82,770,034
40,323,725
205.3%
121.48%
900,907
101,025,020
0.9%
0.9%
3,420,525
101,025,020
3.4%
2.8%
3,420,525
6,756,212
50.6%
47.7%
97

98
24
All allowances to total assets
Total all allowances
Total assets
25
Loans to deposits
Total loans to non-bank customers

(gross)
Customers deposits
26
Return on assets
Net profit
Total assets
27
Return on equity
Net profit
Equity
28
Gross yield
Interest income
Total assets
29
Net interest margin (NIM) to total

assets
Interest income-interest expense
Total assets
30
Other income to total assets
Other income
Total assets
31
Provision to total assets
Provision
Total assets
32
Overhead to total assets
Non-interest expense
Total assets
33
Net income before tax to total assetsNet income before tax
Total assets
34
Tax to total assets
Tax expense
Total assets
35
Interest margin to gross income
Interest income-Interest expense
Gross income
36
Non-interest income to gross

income
Non-interest income
Gross income
37
Non-interest expense to gross

income
Non-interest expense
Gross income
38
Times interest earned
Income before tax +interest expense
Interest expense
39
Liquid assets
Liquid assets
Total assets
40
Short-term liabilities
Short-term liabilities (less than one

year)
Total assets
41
Net liquid assets
Liquid assets - short-term liabilities
Total liabilities
42
Quick ratio
Quick assets
Current liabilities
43
Deposits to total loans
Total customers deposit
Total loans to non-bank customers

(gross)
MB
MBBank
BankPlc.
Plc.Phnom
PhnomPenh
PenhBranch,
Branch,Cambodia
Cambodia
Supplementary
statementsfor
Forthe
theyear
yearended
ended3131December
December2015
2015
4,321,432
120,947,010
3.6%
3.2%
101,025,020
29,970,123
337.1%
671.6%
370,781
120,947,010
0.3%
0.5%
370,781
39,807,373
0.9%
1.0%
5,034,748
120,947,010
4.2%
4.7%
4,187,146
120,947,010
3.5%
3.9%
76,199
120,947,010
0.1%
0.0%
1,943,810
120,947,010
1.6%
1.6%
80,506
120,947,010
0.1%
0.1%
606,971
120,947,010
0.5%
0.7%
236,190
120,947,010
0.2%
0.2%
4,187,146
5,466,083
76.6%
78.3%
76,199
5,466,083
1.4%
0.4%
80,506
5,466,083
1.5%
1.3%
1,454,573
847,602
171.6%
190.9%
11,457,114
120,947,010
9.5%
6.6%
81,139,632
120,947,010
67.1%
46.5%
(69,682,518)
81,139,632
-85.9%
-85.7%
21,021,970
16,907,805
124.3%
157.9%
29,970,123
101,025,020
29.7%
14.9%
99

100

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ANNUAL REPORT

06. Message from the Chair

man of Board of Directors

ANNUAL REPORT 2015

18. REPORT OF MB PHNOMPENHS

22 ACTION PLAN FOR 2015

26. Organizational structure 2011-

26. Human resource STATISTICS

ANNUAL REPORT 2015

Message from the Chairman of Board

ANNUAL REPORT 2015

(MIC) into a subsidiary of MB by the State Bank of

Ladies and gentlemen!

directions and policies of the Government and those of the

Ladies and gentlemen!

ANNUAL REPORT 2015

ANNUAL REPORT 2015

Establishment & Development process

Thng ip Ch tch HQT

ANNUAL REPORT 2015

ANNUAL REPORT 2015

To be approved by the National Bank of Cambodia

MBs first branch in Cambodia with

MB Bank moved to new

MB Phnom Penh has total staff of

ANNUAL REPORT 2015

Create and maximize the added value for customer, shareholder,

Fast, Distinctive, Subtainable and Efficient

ANNUAL REPORT 2015

MARKET OVERVIEW & MB

in tourism activities in neighboring

becoming a tax-paying enterprise

ANNUAL REPORT 2015

MEMBERS OF THE BOARD OF MANAGEMENT

Mr. Than The Hanh

ANNUAL REPORT 2015

Mr. Do Nam Hung

Mr. Tran Trung Hieu

ANNUAL REPORT 2015

ANNUAL REPORT 2015

REPORT OF BOARD OF MANAGEMENT

ANNUAL REPORT 2015

REPORT OF MB PHNOMPENHS BOARD OF MANAGEMENT

MB Bank is one of the leading Banks in Viet Nam. MB Bank

at the core, the MB leaders made timely assessment of

Table of key indicators

Total assets (USD)

Capital mobilization (USD)

Total loans (USD)

Pre-tax profit (USD)

Number of transaction office

Unit: billion dong

ANNUAL REPORT 2015

CAPITAL MOBILIZATION ACTIVITIES

ANNUAL REPORT 2015

REPORT OF MB PHNOMPENHS BOARD OF MANAGEMENT

Cambodian market with great pool of high potential import

INVESTMENT IN TECHNOLOGY ENHANCEMENTS

ANNUAL REPORT 2015

ANNUAL REPORT 2015

REPORT OF MB PHNOMPENHS BOARD OF MANAGEMENT

ANNUAL REPORT 2015

SOME KEY PERFORMANCE INDICATORS FOR THE 2015 PLAN:

% compare with 2015