notes to the consolidated financial statements - Sacombank

FInAnCIAL MAnAGEMEnt
RESOLUTIONS
1. Reasonable increase in equity capital: According to
international and Vietnamese standards, one of the
areas that needs management’s attention is equity
capital in order to improve the Capital Adequacy
Ratio (CAR). The goal is to improve the Bank’s financial
capacity to overcome market difficulties. In equity
capital management, a reasonable growth rate is always
set out in order to ensure financial capacity. The success
of the capital increase strategy in the past should be
promoted again with mobilisation of capital from
residents from all walks of life, as well as all domestic
and foreign economic sectors. The Bank’s commitment
is to increase shareholders’ value, maintain a stable
dividend distribution rate, and ensure that the price of
its shares grows at a better rate than the market.
2. Development of supplementary capital to
increase equity capital: Taking advantage of the
brand reputation and creating and strengthening
relationships with international financial institutions
to attract supplementary capital at reasonable costs
in order to diversify capital resources, making stable
use of capital and increasing operating safety indices.
This is an important funding source to increase equity
capital and is also a long-term foreign currency capital
resource at reasonable costs, with which the Bank can
meet capital needs of the economy.
3. Restructuring of Assets and Liabilities in order to
increase the percentage of profitable Assets:
n For Liabilities: Diversifying the liabilities structure in
order to stabilise capital resources for business needs,
especially focusing on medium and long-term capital
resources through the following measures: (i) Creating
a mechanism for maintaining and developing capital
resources mobilised from economic organisations
and residents, with attention paid to customers that
have large and stable operational scale; (ii) Promoting
the Bank’s network strengths, especially the system of
Transaction Offices, in order to attract stable capital
resources from the local communities; (iii) Utilising
trusted funds from foreign financial institutions; (iv)
Studying capital markets and selecting the right time
to gradually increase the percentage of issued bonds
in order to stabilise capital resources in line with the
current and future development trends of the economy.
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ANNUAL REPORT 2011
n For Assets: Developing a reasonable and targeted
structure for each Asset item: (i) Restructuring and
diversifying the loan portfolio, better managing
changeable industries; (ii) Continuing dispersed
lending and import/export financing; improving the
ATM and POS systems; (iii) Reviewing and re-allocating
Assets in a reasonable manner, and minimising inefficient
assets in order to optimise the Bank’s capital structure.
4. Increase in asset use efficiency: Managing quality and
increasing asset use efficiency through the following
ratios: loan to deposit ratio, bad debt ratio, rate of
profitable assets to total assets; Rate of Return On
Equity (ROE); Rate of Return on Assets (ROA); Earnings
Per Share Ratio (EPS), etc.
5. Reasonable allocation of resources to each
core business sector: (i) Conducting analysis and
assessment to obtain grounds for optimal allocation of
capital resources in line with the strengths and features
of each business sector; (ii) Centralising coordination
among all business sectors of Sacombank for smooth
management and for the best business performance; (iii)
Allocating costs by product lines and programs based
on the principle of accurate and adequate calculation to
obtain grounds for the assessment of the effectiveness
of resource allocation and the introduction of proper
reward policies.
6. Market-oriented NIM (net interest margin):
Interest income represents a major percentage of the
income from operating activities at Vietnamese banks
currently, so a targeted NIM should be determined for
each period in order to establish an income structure
optimisation resolution. In addition, periodic reviews
of the asset portfolio should be conducted to further
increase the percentage of profitable assets. For nonprofitable
assets (except for fixed assets), it is necessary
to determine the time of holding and conversion into
cash, consider and determine the maximum value
of such assets and prevent additional non-profitable
assets from arising.
7. Compliance with financial and operating safety indices:
n Capital Adequacy Ratio (CAR): (i) Reviewing and
restructuring the Bank’s separate and consolidated