MIRA INFORM REPORT

Report Date :

22.01.2008

IDENTIFICATION DETAILS

Name :	DONG A COMMERCIAL JOINT STOCK BANK
Formerly Known As :	EASTERN ASIA COMMERCIAL BANK
Registered Office :	No. 130 Phan Dang Luu Str, Phu Nhuan Dist, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2006
Date of Incorporation :	1992
Legal Form :	Joint Stock Commercial Bank
Line of Business :	Providing Products and Services which are Permitted by State Bank of Vietnam

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

SUBJECT IDENTIFICATION & LEGAL FORM
Current English Name		DONG A COMMERCIAL JOINT STOCK BANK
Former English Name		EASTERN ASIA COMMERCIAL BANK
Vietnamese Name		NGAN HANG THUONG MAI CO PHAN DONG A
Current Abbreviated Name		DONGA BANK (DAB)
Former Abbreviated Name		EAB
Founded		1992
Type of Business		Joint Stock Commercial Bank
Banking Registration		No. 0009/NHGP
Date of Issuance		March 27^th 1992
Place of Issuance		State Bank of Vietnam
Original Registered Capital		20,000,000,000 VND
Registered Capital in 1994		30,000,000,000 VND
Registered Capital in 1995		49,600,000,000 VND
Registered Capital in 1996		75,000,000,000 VND
Registered Capital in 1997		85,000,000,000 VND
Registered Capital in 2000		97,400,000,000 VND
Registered Capital in 2001		120,000,000,000 VND
Registered Capital in 2002		200,000,000,000 VND
Registered Capital in 2003		253,000,000,000 VND
Registered Capital in 7/2004		257,000,000,000 VND
Registered Capital in 11/2004		300,000,000,000 VND
Registered Capital in 12/2004		350,000,000,000 VND
Registered Capital in March 2005		400,000,000,000 VND
Registered Capital in December 2005		500,000,000,000 VND
Registered capital in August 2006		725,000,000,000 VND
Registered capital in January 2007		880,000,000,000 VND
Registered capital in June 2007		1,400,000,000,000 VND
Registered capital in December 2007		1,600,000,000,000 VND
Tax Code		0301442379
Total Employees		1,158 employees
Qualification		Fairly good
Note:The subject was officially changed name from “EASTERN ASIA COMMERCIAL BANK” to “DONG A COMMERCIAL JOINT STOCK BANK” and Abbreviated name from “EAB” to “DONGA BANK (DAB)” in July2007.
ADDRESS
Head Office
Address	No. 130 Phan Dang Luu Str, Phu Nhuan Dist, Hochiminh City
Country	Vietnam
Tel	(84-8) 8443659 - 8446739
Fax	(84-8) 8443550
S.W.I.F.T	EACB VNVX
Email	eab-bank@hcm.vnn ; donga@donga.com.vn
Website	www.eab.com.vn ; www.dongabank.com.vn
Subsidiaries
1. EASTERN ASIA BANK SECURITIES LIMITED COMPANY
Address	No. 56-58 Nguyen Cong Tru Str, Dist 1, Hochiminh City, Vietnam
Tel	(84-8) 9144132 / 9144134
Fax	(84-8) 9143471
Ref	12/GPHDKD
Issued on	May 20^th, 2003
Issued by	Planning and Investment Department of Hochiminh City
2. EASTERN ASIA MONEY TRANSFER LIMITED COMPANY
Address	No. 828 Su Van Hanh Str, Ward 13, Dist 10, Hochiminh City, Vietnam
Tel	(84-8) 8634806 / 8634807
Fax	(84-8) 8634823
Ref	4104000024
Issued on	August 20^th, 2001
Issued by	Planning and Investment Department of Hochiminh City
DIRECTORS
1. NAME	Mr. TRAN PHUONG BINH
Position	General Director
Qualification	Management
Current Resident	Hochiminh City
Nationality	Vietnamese
2. NAME	Mr. PHAM VAN BU
Position	Chairman
Qualification	Management
Current Resident	No. 206 Ben Chuong Duong Str, Co Giang Ward, Dist 1, Hochiminh City
Nationality	Vietnamese
3. NAME	Mrs. NGUYEN THI NGOC VAN
Position	Vice General Director
Qualification	Management
Current Resident	Hochiminh city
Nationality	Vietnamese
4. NAME	Mrs. NGUYEN THI KIM XUYEN
Position	Vice General Director
Qualification	Management
Current Resident	Hochiminh city
Nationality	Vietnamese
5. NAME	Mr. NGUYEN HUU CHINH
Position	Vice General Director
Qualification	Management
Current Resident	Hochiminh city
Nationality	Vietnamese
6. NAME	Mrs. NGUYEN THI BICH HA
Position	Vice General Director
Qualification	Management
Current Resident	Hochiminh city
Nationality	Vietnamese
7. NAME	Ms. VO THI KIM ANH
Position	Chief Accountant
Qualification	Bachelor
Resident	Hochiminh City
Nationality	Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject specializes in providing products and services which are permitted by State bank of Vietnam such as: Consumer banking: + Saving in VND, Gold, USD, Euro. + Current accounts: VND, foreign currency + Loans: consumer loans, housing loans, installment loans to small merchant at markets, credits for overseas student, farming loans, commercial loans + Services: payment card - dong a card, payment order, domestic express money transfer, buying and selling bank notes, overseas remittance, guarantee, collection, confirmation saving account balance, collect traveling sec, … Corporate banking: + Current accounts + Loans (short, medium & long term): trade finance, working capital, construction finance, fixed assets, loans for developing rural area, project finance, project co-finance, syndicated loans, + Services: trade services (letter of credit, collection, telegraphic transfer remittance), foreign exchange (spot, forward, swap), issuing license for carrying foreign currency to abroad, bank guarantees, warehouse service, payroll service, collection service, investment and joint venture,
IMPORT & EXPORT ACTIVITIES
IMPORT / EXPORT: The Subject has international payment relations with many banks in the world
BANKERS
N/A
SHAREHOLDERS
The subject is a joint stock commercial bank. Followings is the biggest shareholders:
1. NAME	PHU NHUAN JEWELRY JOINT STOCK COMPANY- PNJ
Address	No. 170E Phan Dang Luu Str, Ward 3, Phu Nhuan Dist, Hochiminh City, Vietnam
Tel	(84-8) 9951706/ 9951705
Fax	(84-8) 9951702
Email	pnj@hcm.vnn.vn
Website	www.pnjvn.com
2. NAME	PHU NHUAN CONSTRUCTION & HOUSE TRADING COMPANY
Address	No. 99 Nguyen Van Troi Str, Ward 12, Phu Nhuan Dist, Hochiminh City, Vietnam
Tel	(84-8) 8447959
Fax	(84-8) 8445410
Email	nhapnco@hcm.vnn.vn
3. NAME	FINANCIAL ADMINISTRATION DEPARTMENT OF HOCHIMINH CITY COMMUNIST PARTY COMMITTEE
Address	No. 137 Truong Dinh Str, Ward 7, Dist 3, Hochiminh City, Vietnam
Tel	(84-8) 8249445
Fax	(84-8) 9326974
4. Name	SOUTHERN AIRPORTS SERVICES COMPANY- SASCO
Address	45 Truong Son, Ward 2, Tan Binh District, Hochiminh City
Country	Vietnam
Tel	8448358-8446405
Fax	(84)-8-8487165
Email	sasco.tn@saigonairport.com
Website	www.saigonairport.com
5. Name	VIETNAM INSURANCE CORPORATION- BAOVIET
Address	35 Hai Ba Trung Str, Hoan Kiem Dist., Hanoi City
Country	Vietnam
Tel	(84-4) 826 2632 / 826 2642
Fax	(84-4) 824 5473 / 825 7188
Telex	411283 BV VT
Email	service@baoviet.com.vn
Website	www.baoviet.com.vn
6. Name	VIET TIEN GARMENT EXPORT & IMPORT CORPORATION
Address	No. 7 Le Minh Xuan Str, Tan Binh Dist, Hochiminh city
Country	Vietnam
Tel	(84-8) 8640800
Email	vtec@hcm.vnn.vn
Website	www.viettien.com.vn
7. Name	SAI GON BEER – ALCOHOL – BEVERAGE CORPORATION (SABECO)
Address	No. 6 Hai Ba Trung Str, Ben Nghe ward, Dist 1, Hochiminh city
Country	Vietnam
Tel	(84-8) 8294081 – 8294083
Fax	(84-8) 8296856
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Good
Liquidity	Good
Previous Payments	Good
Payment status	Good
Past Financial Situation	Good
Current Financial Situation	Strong
Litigation Data	No recorded
Bankruptcy	No recorded
Public opinion	Good
Payment Methods	Direct payment or through its corresponding bank Foreign remittance by letter of credit (L/C), by telegraphic transfer (T/T)
FINANCIAL DATA
DATA FOR 2006
BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date				31/12/2006
Number of weeks				52
ASSETS
Cash and precious metals				1,116,941
Balances with the State Bank of Vietnam				486,526
Placements with overseas banks				462,332
Placements with local credit institutions				595,829
Loans and advances to local credit institutions				154,970
Loans and advances to customers				7,985,615
Provisions for credit risk				(13,669)
Investments				412,028
Tangible fixed assets				233,338
Construction in progress and purchase of fixed assets				108,337
Other assets				534,544
TOTAL ASSETS				12,076,791
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Borrowing from the state bank of Vietnam				-
Deposits and borrowing from local credit institutions				621,086
Deposits from customers				9,488,274
Funds received from Government, international and other institutions				204,989
Other liabilities				241,408
Total liabilities				10,555,757
SHAREHOLDERS’ EQUITY AND RESERVES
Share capital				880,480
Retained earnings				200,311
Reserves				440,243
Total shareholders’ equity				1,521,034
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY				12,076,791
INCOME STATEMENT
Items				2006
Interests and similar income				1,269,652
Interest expense and similar charges				(978,454)
Net interest income				291,198
Fee and commission income				104,902
Fee and income expense				(21,666)
Net gain from dealing in foreign currencies				28,977
Other operating income				-
Total operating income				112,213
Salaries and related expenses				(58,829)
Depreciation and amortization				(27,529)
Other operating expenses				(93,745)
Total operating expenditure				(180,103)
Provision for losses on contingencies and commitment				(24,618)
Other income				1,481
Profit before tax				200,171
Business income tax				48,173
Profit from subsidiaries
NET PROFIT FOR THE YEAR				151,998
DATA FOR 2005, 2004
BALANCE SHEET
Unit: 1 VND
Balance sheet date			31/12/2005		31/12/2004
Number of weeks			52		52
ASSETS
Cash and precious metals			531,010,415,960		387,403,241,255
Balances with the State Bank of Vietnam			408,185,903,934		188,633,096,872
Placements with overseas banks			487,915,830,692		564,202,085,286
Placements with local credit institutions			124,682,438,343		149,077,102,248
Loans and advances to local credit institutions			140,366,775,344		108,390,000,000
Loans and advances to customers			5,960,047,757,821		4,562,382,289,327
Provisions for credit risk			(12,279,958,198)		(7,704,717,128)
Investments			178,992,804,623		131,654405,553
Tangible fixed assets			151,353,665,797		115,780,090,270
Construction in progress and purchase of fixed assets			58,789,514,978		39,189,389,867
Other assets			486,847,545,702		205,656,016,089
TOTAL ASSETS			8,515,912,694,996		6,444,662,999,639
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Borrowing from the state bank of Vietnam			-		21,121,883,300
Deposits and borrowing from local credit institutions			622,900,255,296		620,812,844,040
Deposits from customers			6,513,795,334,524		4,679,909,083,297
Funds received from Government, international and other institutions			183,812,385,000		207,190,755,000
Other liabilities			483,647,433,520		382,724,514,421
Total liabilities			7,804,155,408,340		5,911,759,080,059
SHAREHOLDERS’ EQUITY AND RESERVES
Share capital			500,475,842,623		350,471,953,553
Retained earnings			140,628,904,528		100,697,656,786
Reserves			70,652,539,505		81,734,309,241
Total shareholders’ equity			711,757,286,656		532,903,919,580
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY			8,515,912,694,996		6,444,662,999,639
INCOME STATEMENT
Items			2005			2004
Interests and similar income			852,910,217,299			554,864,349,061
Interest expense and similar charges			(645,025,205,903)			(431,136,708,338)
Net interest income			207,885,011,396			123,727,640,723
Fee and commission income			82,322,736,681			73,139,200,756
Fee and income expense			(6,059,195,416)			(5,252,694,214)
Net gain from dealing in foreign currencies			6,563,160,627			(10,520,483,228)
Other operating income			425,000,000			1,902,211,403
Total operating income			83,251,701,892			59,268,234,717
Salaries and related expenses			(50,010,534,107)			(30,181,628,087)
Depreciation and amortization			(15,757,915,146)			(9,499,677,939)
Other operating expenses			(75,011,514,352)			(44,705,236,747)
Total operating expenditure			(140,779,963,605)			(84,386,542,773)
Provision for losses on contingencies and commitment			(17,001,288,155)			(2,317,717,128)
Other income			942,804,927			1,736,891,365
Profit before tax			134,298,266,455			98,028,506,904
Business income tax			37,603,514,607			27,447,981,933
Profit from subsidiaries			4,147,595,991			-
NET PROFIT FOR THE YEAR			100,842,347,839			70,580,524,971
INTERPRETATION ON THE SCORES
The subject is a joint stock commercial bank. It was established in 1992 with original registered capital of 20 billion VND. In the year of 2001, the subject bought Long Xuyen Quadrilateral Joint Stock Commercial Bank. In 2003, the Tan Hiep Rural Joint-Stock Bank was allowed to merge with the Eastern Asia Commercial Bank under a decision by The State Bank of Viet Nam (SVB). From July 2007, the subject officially changed English name from “Eastern Asia Commercial Bank” to “DongA Commercial Joint Stock Bank” and abbreviated name from “EAB” to “DongA Bank (DAB)”. Up to December 2007, the subject’s registered capital is 1,600,000,000,000 VND. Dong A Bank (DAB) is one of the top biggest commercial joint stock banks in Vietnam. At the present, the subject has 85 transaction points located nationwide. It is also the first bank in the country to establish an automatic banking system that operates 24 hours, offering the services of any ordinary DAB branch, serving customers with or without cards. The subject is considered the bank that had large number of customer using ATM card and large amount of overseas national currency exchange. In 2005, it launched the FLEXCUBE core banking network to facilitate online banking and interconnection with other regional banks, including financial institutions in China, Laos, and Thailand. DongA Bank (DAB) has 23 bank accounts in foreign countries. This subject also established agent relation with more than 2,889 banks in the world. DAB has a staff of more than 1,000 people. It is estimated that the registered capital will reach VND 2,000 billion by the end of 2007. Business result of the subject is fairly good. Its image is also known widely. The fund mobilized and profit was increased year after year. In 2006, before tax profit was over VND 200 billion. The management board plans to achieve before tax profit of VND 400 billion in this financial year. Year 2007 will still the successful year of the bankers in general and the subject in particularly. The estimated profit of 2007 will increase up to 430 Billions VND. The prospect seems bright, stocks of subject is one of blue chip on OTC market after the news about Citi Group will buy 10% shares of DAB. In general, the subject is operating effectively but it position is still low in the banking industry. Its number of employees and branch system are small. The subject is capable to meet small and normal commitments. Caution needed for big business transactions.
The company has STRONG capacity to meet its financial commitments.
CREDIT INQUIRY: 2,500,000 USD (Against DA terms)
Reliable.

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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