MIRA INFORM REPORT

Report Date :

24.10.2008

IDENTIFICATION DETAILS

Name :	SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK
Registered Office :	No. 278 Nam Ky Khoi Nghia Str, Ward 8, Dist 3, Hochiminh City
Country :	Vietnam
Financials (as on) :	31.12.2007
Date of Incorporation :	05.12. 1991
Com. Reg. No.:	059002
Legal Form :	Commercial Joint Stock Bank
Line of Business :	Supplying Products and Services which are permitted by the State Bank of Vietnam for the operation of Commercial Joint Stock Bank.

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
English Name		SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK
Vietnamese name		NGAN HANG THUONG MAI CO PHAN SAI GON THUONG TIN
Trade Name		SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK
Abbreviated Name		SACOMBANK
Type of Business		Commercial Joint Stock Bank
Operating License		No. 0006/NHGP
Date of Issuance		December 05^th 1991
Place of Issuance		State Bank of Vietnam
Establishment Decision		No.05-GP-UB
Date of Issuance		January 03^rd 1992
Place of Issuance		People’s Committee of Hochiminh city
Business registration		No. 059002
Date of Issuance		January 13^th 1992
Current Legal Capital		5,115,830,840,000 VND
Tax code		0301103908
Stock code		STB
Total Employees		6,003 employees
The information about the subject’s legal capital is as follows:
Date	Legal capital		Accepted License of the Sate Bank
January 01^st 1993	10,000,000,000 VND		No. 11/QD-NH5
May 20^th 1994	20,000,000,000 VND		No. 107/QD-NH5
November 30^th 1995	23,560,000,000 VND		No. 338/QD-NH5
May 28^th 1996	47,484,000,000 VND		No. 150/QD-NH5
February 03^rd 1997	71,016,000,000 VND		No. 30/QD-NH5
September 29^th 2000	99,673,000,000 VND		No. 288/2000/QD-NHNN5
December 19^th 2000	137,654,000,000 VND		No. 519/2000/QD-NHNN5
December 03^rd 2001	178,000,000,000 VND		No. 1200/NHNN-TP.2001
December 27^th 2001	191,000,000,000 VND		No. 1584/2001/NHNN-CNH
January 11^th 2002	221,500,000,000 VND		No. 22/NHNN-TP.2002
July 29^th 2002	271,661,000,000 VND		No. 876/NHNN-TP.2002
November 04^th 2002	300,000,000,000 VND		No. 1300/NHNN-TP.2002
February 27^th 2003	358,174,000,000 VND		No. 218/NHNN-TP.2003
May 28^th 2003	462,147,000,000 VND		No. 586/NHNN-HCM.02
November 03^rd 2003	505,000,000,000 VND		No. 957/NHNN-HCM.02
December 02^nd 2003	740,000,000,000 VND		No. 1140/NHNN-HCM.02
September 28^th 2004	1,125,000,000,000 VND		No. 1550/NHNN-HCM.02
April 15^th 2005	1,250,000,000,000 VND		No. 658/NHNN-HCM.02
September 28^th 2005	1,899,742,990,000 VND		No. 2019/NHNN-HCM.02
March 31^st 2006	2,089,412,810,000 VND		No. 401/NHNN-HCM02
August 16^th 2007	4,448,814,170,000 VND		No. 544/NHNN-HCM02
August 20^th 2008	5,115,830,840,000 VND		N/A
ADDRESSES
Head Office:
Address		No. 278 Nam Ky Khoi Nghia Str, Ward 8, Dist 3, Hochiminh city
Country		Vietnam
Tel		(84-8) 39320420
Fax		(84-8) 39320424
Email		Sacombank@vnn.vn
Website		www.sacombank.com.vn
DIRECTORS
1. NAME		Mr. DANG VAN THANH
Position		Chairman
Qualification		Bachelor
Date of birth		April 11^th, 1960
I.D. No.		022523997
Issued on		September 04^th, 2003
Issued by		Police Station of Hochiminh city
Registered Resident		No. 56/3 Au Co Str, Ward 9, Tan Binh Dist, Hochiminh City
Current Resident		No. 1071B Khuong Viet Str, Ward 19, Tan Binh Dist, Hochiminh City
Nationality		Vietnamese
2. NAME		Mrs. HUYNH QUE HA
Position		Deputy Chairwoman No. 1
Qualification		Bachelor
Year of birth		1969
Registered Resident		No.85 Hai Thuong Lan Ong Str, Ward 10, Dist 5, Hochiminh City
Nationality		Vietnamese
3. NAME		Mr. NGUYEN CHAU
Position		Deputy Chairman
Qualification		Bachelor
Date of birth		June 18^th, 1935
Registered Resident		No. 2/5 Quang Trung Str, Ward 11, Go Vap Dist, Hochiminh City
Nationality		Vietnamese
4. NAME		Mr. NGUYEN TAN THANH
Position		Chief of Board of Controllers
Qualification		Bachelor
Date of birth		June 06^th, 1952
Registered Resident		No. 31/6/9 Hoang Viet Str, Ward 4, Tan Binh Dist, Hochiminh City
Nationality		Vietnamese
5. NAME		Mr. TRAN XUAN HUY
Position		Current General Director
Qualification		MBA
Date of birth		August 31^st, 1972
Registered Resident		Hochiminh city
Nationality		Vietnamese
Notes: Mr. Tran Xuan Huy was appointed to be General director on July 5^th, 2007 to replace Mrs. Phan Bich Van. From February 1^st 2007 to July 4^th, 2007, he was the deputy general director.
NAME		Mrs. PHAN BICH VAN
Position		Former General Director
Qualification		Master
Date of birth		November 10^th, 1969
Registered Resident		No. 46/C2 Hoang Hoa Tham Str, Ward 13, Tan Binh Dist, Hochiminh City
Nationality		Vietnamese
BUSINESS NATURE AND ACTIVITIES
The subject focuses on supplying products and services which are permitted by the State Bank of Vietnam for the operation of commercial joint stock bank.
SHAREHOLDER(S)
The subject is a commercial joint stock bank. Following are the subject’s main shareholders (as of July 25^th 2008)
1. NAME		AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED - ANZ GROUP
Address		No. 11, Me Linh Square, Dist 1, Hochiminh city, Vietnam
Share		10 %
2. NAME		DRAGON FINANCIAL HOLDINGS (DC)
Address		No. 2 Ngo Duc Ke Str, Dist 1, Hochiminh city, Vietnam
Share		8.73 %
3. NAME		INTERNATIONAL FINANCE CORPORATION - IFC
Address		No. 21-23 Nguyen Thi Minh Khai Str, Dist 1, Hochiminh city, Vietnam
Share		6.29 %
4. NAME		REFRIGERATION ELECTRICAL ENGINEERING CORP
Address		364 Cong Hoa Str, Ward 13, Tan Binh Dist, Hochiminh City, Vietnam
Share		5.43 %
5. NAME		Mr. DANG VAN THANH
Position		Chairman
Qualification		Bachelor
Date of birth		April 11^th, 1960
I.D. No.		022523997
Issued on		September 04^th, 2003
Issued by		Police station of Hochiminh city
Registered Resident		No.56/3 Au Co Str, Ward 9, Tan Binh Dist, Hochiminh City
Current Resident		No.1071B Khuong Viet Str, Ward 19, Tan Binh Dist, Hochiminh City
Nationality		Vietnamese
Share		3.91 %
6. NAME		Mr. DANG HONG ANH
Resident		No. 56/3 Au Co Str, Ward 9, Tan Binh Dist, Hochiminh City
Nationality		Vietnamese
Share		4.07 %
Note: Mr. DANG HONG ANH is the son of the chairman - Mr. DANG VAN THANH
7. NAME		Mr. TRAN THANH SON
Resident		Hochiminh city
Nationality		Vietnamese
Share		1.99 %
8. NAME		Mrs. HUYNH QUE HA
Position		Deputy Chairwoman No. 1
Qualification		Bachelor
Year of birth		1969
Registered Resident		No. 85 Hai Thuong Lan Ong Str, Ward 10, Dist 5, Hochiminh City
Nationality		Vietnamese
Share		1.39 %
9. NAME		Ms. CHAU THI VAN
Resident		Hochiminh city
Nationality		Vietnamese
Share		1.22 %
10. NAME		VN DRAGON FUND LTD
Address		Hochiminh city, Vietnam
Share		1.14 %
FINANCIAL DATA
BALANCE SHEET
Unit: 1,000,000 VND
Balance sheet date				31/12/2007	31/12/2006
Number of weeks				52	52
ASSETS
Cash and precious metals				3,335,063	2,827,452
Balances with the State Bank of Vietnam				3,878,785	993,590
Placements with overseas banks
Placements with local credit institutions				4,656,456	2,019,529
Loans and advances to local credit institutions
Trading securities				4,155,081	263,631
- Provision for devaluation trading securities				(13,012)
Derivative financial tools and other financial assets				4,911	1,060
Loans and advances to customers				35,378,147	14,394,313
- Provision for loan risks				(177,573)	(81,418)
Investment securities for sell				7,249,397	191,555
Investment debt securities held to maturity				1,927,916	1,873,469
- Provision for devaluation investment securities				(3,512)
Investment in joint ventures				130,630	110,604
Investment in business concerns				80,652
Investments in other entities				1,284,326	669,973
Provision for devaluation long term investments				-	-
Tangible fixed assets				590,400	416,535
Finance lease assets				22,831	17,812
Intangible fixed assets				406,582	273,866
Other assets				1,665,795	804,211
TOTAL ASSETS				64,572,875	24,776,182

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Borrowing from the state bank of Vietnam		750,177	107,000
Deposits and borrowing from local credit institutions		4,508,977	815,473
Deposits from customers		44,231,944	17,511,580
Certificates of deposit		5,197,380	2,529,299
Funds received from Government, international and other institutions		1,003,293	374,668
Other liabilities		1,531,445	567,816
Business income tax payable		-	-
TOTAL LIABILITIES		57,223,216	21,905,836
SHAREHOLDERS’ EQUITY AND RESERVES
Share capital		5,662,485	2,248,726
Retained earnings		1,234,529	436,146
Reserves		452,645	185,474
TOTAL SHAREHOLDERS’ EQUITY		7,349,659	2,870,346
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		64,572,875	24,776,182
CONTINGENCIES AND COMMITMENTS		8,751,437	3,434,170
INCOME STATEMENT
Description		FY 2007	FY 2006
Interests and similar income		3,383,002	1,669,505
Interest expense and similar charges		(2,231,130)	(989,139)
Net interest income		1,151,872	680,366
Fee and commission income		291,083	146,212
Fee and income expense		(97,685)	(26,547)
Net fee and commission income		193,398	119,665
Net gain from dealing in foreign currencies		100,815	4,178
Net gain from security trading		599,873	7,471
Net gain from securities investment		208,599	135,954
Other operating income		6,050	11,453
Other operating expenses		(2,514)	(863)
Net gain from other operating		3,536	10,590
Income from contributed, buying shares and dividend		183,490	104,271
Administration expense		(741,225)	(408,264)
Net gain from business operating before provision for credit risks		1,700,358	654,230
Provision for credit risks expense		(118,387)	(42,902)
Profit before tax		1,581,971	611,328
Income tax		(184,074)	(141,200)
Profit after tax		1,397,897	407,128
PAYMENT HISTORY AND EXPERIENCES
Trade Morality	Fairly Good
Liquidity	Fair
Payment status	Prompt
Financial Situation	Fairly Good
Development trend	Fairly Good
Litigation data	No Recorded
Bankruptcy	No Recorded
INTERPRETATION ON THE SCORES
SAIGON THUONG TIN COMMERCIAL JOINT STOCK BANK (SACOMBANK) was established in 1991 with the establishment decision No. 05-GP-UB of People’s Committee of Hochiminh city. On October 20^th 2005, the Sate Bank of Vietnam has decision No. 1170/NHNN-CNH to permit Sacombank’s stocks are listed on Vietnam Stock market with stock code STB. Currently, Sacombank has the largest transaction network in Vietnam. Sacombank has total 240 branches and transaction points through the country and a system of over 5,000 correspondent agents of 170 banks in 76 countries in the world. The move is the further step in Sacombank’s plan to expand business activities abroad, following the success of a representative office in Guangxi, China in January 8^th 2008. Its branch in Laos will be expected to start operation in December 2008. Asset Management Co., Ltd, Sacomrex Co., Ltd, Sacomreal and Vietfund Management are the subject’s subsidiaries. Sacombank has invested in many other entities such as La Nga Sugar Joint Stock Company, Thang Loi Tourist Joint Stock Company, SJC Cho Lon Joint Stock company, Binh Dinh Tourist Joint Stock Company, Domesco, Sai Gon Food Technology Joint Stock Company, Hoa Binh Rubber, Phan Rang Sugar, Song Da 10, Binh Minh Plastic, Tan Tien plastic, Noi Bai Ariline service, Sai Gon General Services, An Giang Vegetable Protection, Ca Mau Seafood, Pha Lai Electricity, Southern Rubber, Dong Nai Tourist, Ha Giang Tea, Vinabico Candy, Vinamilk, Thanh Ngoc Joint Stock Company, Thanh Thanh Ceramics, S.W.I.F.T Organization, Southern Seed Company, Vietnam National Financial Switching, Ben Tre Tourist, Tan Dinh Import Export, Chuong Duong Beverages, Libery Hotel, Lam son Sugar Cane, Cafe Bien Hoa, Gia Dinh Commercial Joint Stock Bank, Housing Development commercial, Nam Do Commercial Joint Stock Bank, Habubank, Military Commercial Joint Stock Bank and so on. In recent years, Sacombank has continuously increased its registered capital in order to improve its financial capacity and to ensure sustainable development. By the end of 2005, the legal capital of Sacombank was 1,250 billion VND. By the end of 2006, legal capital of Sacombank was 2,089 billion VND. In August 2007, legal capital of the subject is over 4,448 billion VND. So from 2005 to 2007, legal capital reached a growth rate of 68 percent per year on average. At this time, legal capital of the subject is 5,115 billion VND. By December 31^st 2007, the total mobilized capital of Sacombank was 54,041 billion VND, up 151% in compared with 2006. After second quarter 2008, total mobilized capital of the subject is 4,012 million USD. Over the years, Sacombank has strong development. It was awarded “Vietnam Retail Bank of the Year 2007” by Asian Banking and Finance and “Best Bank Vietnam 2007” by Euromoney. In June 2008, the subject won the prize in “Best Annual Report 2007” contest jointly organized by the Hochiminh City Stock Exchange (HOSE). Sacombank’s mission is to be a regional bank of first customer choice. In general, the subject is a big commercial bank in Vietnam. Its financial and operational bases are healthy. The subject has capacity to meet financial commitments. No caution needed for business transactions with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.95
UK Pound	1	Rs.79.56
Euro	1	Rs.63.65

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions