Financial
statements

Report of the independent auditors
To: The Board of Directors
Vietnam Joint-Stock Commercial Bank for Private Enterprises

Scope
We

have

We conducted our audit in accordance
audited

the

accompanying

with Vietnamese Standards on Auditing

balance sheet of Vietnam Joint-Stock

and International Standards on Auditing

Commercial Bank for Private Enterprises

accepted in Vietnam.

("the Bank") as of 31 December 2005 and


Those standards

audit

includes

supporting the amounts and disclosures in

responsibility is to express an opinion on

the financial statements.

these financial statements based on our

includes

audit. The financial statements of the Bank

principles used and significant estimates

as of 31 December 2004 were audited by

made

other auditors, whose report dated 28

evaluating the overall financial statement

February 2005 expressed an unqualified

present fairly, in all material respects, the
financial position of Vietnam Joint-Stock
Commercial Bank for Private Enterprises
as of 31 December 2005 and the results of
its operations and its cash flows for the
year then ended, in accordance with
Vietnamese Accounting Standards and
accounting principles generally accepted
in Vietnam.

KPMG Limited
Vietnam
Investment Licence No. 863/GP
Audit report No. 05-02-049

Mark E. Jerome
CPA No. 0628/KTV
Deputy General Director

Ho Viet Ha
CPA No. 0676/KTV

Annual Report 35



Financial
statements
Balance
sheet

1,778,125

666,391

Loans and advances to customers

6

3,295,408

1,864,339

Equity investments

7

13,082

11,979

Fixed assets

8

32,794

9,941

Other assets



2,011,256

Deposits from customers

12

3,209,771

1,847,711

Other liabilities

13

116,620

90,862

Provision for taxation

14

7,277

162

Share capital

15


(4,534)

-

6,090,163

4,149,288

Off-balance sheet items

Letters of credit, at sight

123,532

76,880

Letters of credit, deferred

16,422

23,878

Guarantees

57,313

41,420

597,482

Net interest income

December 31st, 2004
VND Million

432,054

264,372

(286,701)

(167,683)

145,353

96,689

Fee and commission income

10,069

9,026

Fee and commission expenses

(3,852)

(1,663)

6,217


(2,943)

(2,303)

(45,374)

(26,460)

Salaries and related expenses

General administration expenses
18
Profit before taxation

Corporate income tax

Profit after taxation

76,209

-

(20,626)

-

55,583

-

profits

VND million

VND million

VND million

Reserves

VND million

174,900

-

717

Decrease in capital

(37,803)

-

-

28,378

-


198,409

Increase in capital

110,977

Total

reserve

Balance at 1 January 2004

Increase in capital

Revaluation

VND million
-

208,743

-

-

(37,803)

-

-


225

33,126

VND million

(32,934)

-

-

Net profit for the year

-

-

55,583

-

-

55,583

Distribution of profit (see Note 17)

-


Revaluation of derivatives

-

-

-

10,723

-

-

-

(113)

-

(113)

-

(2,386)

-

(2,386)

Vu Minh Quynh

Annual Report 41



Financial
statements
Statement
of cash flows

As at 31 December
Note

December 31st, 2005

December 31st, 2004

VND Million

VND Million

-

Cash flows from operating activities
76,209

Profit before taxation
Adjustments for:
Depreciation and amortisation of fixed assets

Other assets

667,227

(966,998)

(1,438,146)

(416,193)

(117,696)

(75,085)

Increase/(decrease) in operating liabilities
Borrowings from the State Bank of Vietnam

30,000

-

386,974

1,061,195

1,362,060

581,655

21,264


Cash flows from investing activities
Purchase of fixed assets

(16,016)

Dividends received during the year
Net movement in investment securities
Increase in equity investment

409

2,545
(1,111,734)

(340)
-

(1,126,308)

459
(6,827)

(1,103)

Decrease in equity investment

Net cash outflow from investing activities

(2,650)


Decrease in share capital

15

Distribution of profits

111,202

28,378
-

(37,803)

(30,784)

Net cash inflow/(outflow) from financing activities

-

80,418

(9,425)

Net (decrease)/increase in cash and cash equivalents

(66,565)

253,343