notes to the consolidated financial statements - Sacombank

In addition, to ensure the highest level of efficiency and
the best use of the network scale of a retail bank, in 2011,
the Bank opened two new branches in Thai Nguyen and
Phu Tho Provinces, upgraded the Sacombank Phnom
Penh Branch into a Subsidiary Bank wholly owned by
Sacombank in Cambodia, and opened 42 more Transaction
Offices, increasing the total number of Transaction Offices
in the three countries of Vietnam, Laos and Cambodia to
408 by late 2011.
During the past 20 years, especially in 2011, with the
function of managing the Bank in accordance with the
Law on Credit Institutions, and with the four major tasks
of Planning, Organisation, Leadership and Monitoring, the
Board of Directors has spent a great deal of time and effort
on improving the Banking Architecture, including the
Superstructure and the Infrastructure; Legal Frameworks
and Support Tools, and developing quality Human
Resources and a firm operational platform on the basis of
the proper business model of a modern multi-functional
retail bank in a lean and cost-saving manner. The Bank has
also boosted to the highest level the passion, proactiveness
and creativity of employees through open transparent
incentive policies of the Bank and the inspirational and
change management ability of managerial officers at
various levels through which to increase the adaptability of
all staff members and improve the Bank’s competitiveness.
Therefore, despite slower growth in all aspects last year
compared with previous years, with a fairly complete
banking architecture and complete legal frameworks; a
fairly firm operational platform; fairly modern support tools
and fairly advanced risk management methods; along with
strong and professional sales forces, the Bank is well placed
to be able to achieve its objectives of SAFETY, EFFICIENCY
and SUSTAINABILITY in the near future, as defined in its
strategic plan for the period of 2011 – 2015.
Sacombank started to implement its 2012 plan in the
context of many difficulties and challenges still facing
the world economy and the domestic economy, while
its inherent weaknesses and shortcomings, although
overcome and corrected synchronously in 2011, still need
time to be eventually eliminated. Therefore, the strategic
REPORTS
policy of simultaneous defense and attack must be
maintained in order to deal with the impacts of the global
financial crisis of 2008-2009. Accordingly, EFFICIENCY is
still considered an important objective, but SAFETY is
the leading strategic task. On that basis, it is necessary
to continue improving fundamental elements, and to
focus on innovation, particularly in respect of the WAY
OF THINKING and METHODS for corporate governance
in general, especially risk management, and for financial
management in particular. Furthermore, the individual
role and responsibility, proactiveness and creativity of
members of the Board of Management must be promoted
to the highest level, with great promotion opportunities
and satisfactory incentives provided.
On the other hand, Sacombank’s Asset Portfolio and
Financial Structure will be restructured according to an
optimal financial model, with resources focused on core
capabilities; rapid and complete divestment from non-core
businesses; slowdown and minimisation of investment in
capital construction; rapid disposal of unused assets and
assets received for offsetting against loan debts; increase
in available funds; elimination of waste and performance
of strict saving; increase in incomes and decrease in
expenses; more added value created for customers;
increase in incomes for the Bank; increase in dividends for
Shareholders and improvement of the living standards of
employees across the entire network of the Bank.
So, in the context of the current economic challenges,
we only expect 2012 to be a year of focused stabilisation
in all aspects to ensure safety and efficiency. In addition,
it is necessary to add more resources, consolidate the
foundation, and continue innovating the operational
mechanism, corporate governance methods, and
incentive policies within the framework of the State Bank
of Vietnam Governor’s policy on restructuring commercial
banks of Vietnam in order to create the momentum
for breakthroughs in growth in subsequent years and
successfully fulfill the development objectives set forth for
the whole period of 2011 – 2020 in line with the Resolution
of the 2010 General Meeting of Shareholders at its annual
meeting on 2 April 2011.
THE BOARD OF DIRECTORS
ANNUAL REPORT 2011 34