Consolidated financial statements - first quarter 2025

HO CHI MINH CITY DEVELOPMENT JOINT STOCK

f?OhflMERCIAL BANK

CONSOLIDATED FINANCIAL STATEMENTS FOR THE FIRST QUARTER OF 2025

For the period from 1 January 2025 to 31 March 2025

This translation is for informational purpose only, NOT" an official version

TABLE OF CONTENTS

Pages

Consolidated statement of financial position Consolidated statement of profit or loss Consolidated cash flow statement

Notes to the consolidat'ed finañcial statements

1 -4

5

6 - 7

8 - 50

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At as 31 March 2025

Form B02a/TCTD-HN (issued under Circular No.

27/2021/TT- NHNN dated 31 December 2021)

Notes

31 March 3J December

2025 2024

VND million VND million

Purchased debts Purchased debts

Provision for credit losses of purchased debts (*)

This translation is for informational Durpose only, NOT an official version

ONSOLIDATED SP-ATEMENl" OF FINANCIAL POSITION

At as 31 March 2025

Form B02a/TOTD-HN

(issued under Circular No.

2"//202'T/ I - NHNN dated 31 December 202 1)

Investment properties

Cost

Accumulated depreciation (*)

Notes

31 March

2025

/ND million

31 December

2024

VND million

This translation is for informational purpose only, NOT ar official version

CONSOLIDATE D STATEMENT OF FINANOIAI POSITION

At as II March 2025

Form B02a/TCTD-HN (issued under Circular No.

27/202 I/"FT - lNHNN dateJ 31 Desai i iUei- 2021)

TOTAL LIABILITIES, OWNERS' EQUITY AND NON-CONTROL INTERESTS

711,310,758

697,366,458

3

This translation is for informational purpose only, NOT an official version

CONSOLIDATED STATEMENT OF FINANCIAL PO?ITIGN

At as 31 March 2025

Form B02a/TCTD-HN (issued under Circulaf No

°27/2021/TT- NHNN dated 3 DeceiiiUei 2021)

OFF-BALANCE SHEET ITEMS

Credit guarantees

Foreign exchange cofcmitments

Spot foreign exchange ‹."cc,.'rnitments buy

Spot foreign exchanqe commitments - se.II

,Cross currency. swap contracts

Future. contracts

Irrevocable lefsding commitments Letters of credit

Other guarantees Other commitments

Interest income and fee receivables not yet

collected

Bad debts written-off

Other assets and documents

Total

Reviewed by

I

‹

ed h

NGANHANO

PHATTPIEM

Prepared by:

Notes

31 March

2025

VND million

809,031

298,814,637

I, 574, 013

3,009, 173

294, 231, 451

50,530,261

23,569,751

13,009,378

3,530,343

22,033,383

49,875,441

462,172,225

31 December

2024

VND million

808,743

199,138,079

8,977, 349

46,476,948

24,924,802

12,364,361

3,336,440

20,134,777

47,589,161

354,773,311

Ms. Huynh"Thi Nga" Accountant

Ho Chi Min f City, Vietnams

28 April 2025

Ms Ho Dang Moang Quyen " /P. n ham Van Dau Chief Accountant Chief Financial Officer

4

his translation is for informational purt›ose only, NOT an official version

CONSOLIDATE E1 STATEMENT OF PROFIT OR LOSS

for the period from 1 January 2025 to 3 1 Mai cf› 2025

Form B0?a/TCTD-HN (issr›ed under Circular No

27/2021/-II"- NHNN dated 31 December 2021)

Notes

Current period Previous period VND ml///on VND million

Interest and similar income Interest and similar expenses

Net interest and similar income Fee and commission income

Fee and commission expenses Net fee and commission income

Net gain from trading of foreign currencies

VI.14 VI.15

14,991,720 14,378,929

(7,583, 620) (7,218,579)

7,408,100 7,160,350

1,177,239 512,447

(443,949) (155,68?)

733,290 356,762

188,241 174,886

Net gain/(loss) from securities held for trading VI.16 Net (loss)/gain from investment securities VI.17 Other ooerating income

Other operating expenses

Net gain from other operating activities

389,280 (78,664)

(16,744) 65,351

560,161 107,688

(81,344) (34,308)

478,817 73,380

Income from investments in other entities Operating expenses

Net operating profit before provision for credit losses

Provision expenses for credit losses

Profit before tax

Current corporate income tax expense Deferred corporate income tax expense Corporate income tax expenses

Profit after tax

In which.'

VI.18 VI.19

23,569

(2,524,523) (2,454,639)

6,680,030 5,297,426

(1,824,7.9.6) (1,269,851)

5,355,235 4,027,575

(946,338) (808,137)

(51,225) (6,266)

" (997,563) (814,403)

4,357,672 3,213,172

Basis ea rning per share (VND/sh are)

890

Prepared by: Reviewed by''

P|!AT7 IEN

Ms. Huynh Thi Nga Accountant

Ho Chi Min h City, Vietnam

28 April 2025

Ms. Ho Dang Hoang Quyen Chief Accountant

akan Uau

ref Financial Officer

this translation is for' informational purpose only, NOT are official version

CONSOLIDATED CASH FLOW STATEMENT

for the period from 1 January 2025 to JI March› 2025

Form B04a/TCTD-HN (issued under Circular No

27/2021/TT NHNN dated 31 December 2021)

Note.s

Current period Previous period

VND million VND million

Cash flows from operating activities Interest income and sirrilar feceipts Interest expenses and similar payments Net fee and commission receipts

Net receipts from trading of securities, gold and foreign currencies

Other income

Recoveries from bad debts written-off previously Payments to employees and other operating

14,066,302

(5,511,782)

756,665

623,318

419,650

78,515

14,113,410

(8,137,461)

333,479

639,199

7,853

95,060

CONSOLIDATED CASH FLOW STATEMENT

for the Deriod from 1 ,January 2d2.5 to 31 March 202a

Form B04a/TCTD-HN (issued under Circular No

27/2021/TT- NHNN dated 31 December 2021)

Cash flows from investing activities

Notes

Current period Previous period

VND million VND millions

Purchase of fixed assets

Proceeds from disposal of fixed assets Payment for disposal ‹3f fixed assets Pr›rchase of investment properties

Proceeds from disposal of investment properties Payment for disposal of investment properties Payments for investments in other entities Proceeds from disposal of investments in other entities

Dividend.s received from long-term investments

Net cash from investing activities Cash flows from financing activities

Increase in charter capital from capital contribution and share issuance

Proceeds Irene issuing long term valuable papers eligible to be included in capital and other long-term borrowings

Proceeds from disposals of long-term valuable papers eligible to be included in capital and other long-term borrowings

Dividends distriblsted to shareholders Purchase of treasury shares

(41,402)

709

11,880

(28,813)

(112,206)

139

(112,067)

Proceeds from disposal of treasury shares

Net cash from financing activities

Net cash flows for the period

Cash and cash equivalents at the beginning of the period

Foreign exchange difference

Cash and cash equivalents at the end of the perioct

2,335,958 (27,752,704)

137,261,526 132,411,767

30,876 87,381

360 104,746,444

Prepared by:

Reviewed

P'€TT |EH

Ms. Huynh Thi Nga Accountant

Ho Chi Minh City, Vietnam 28 April 2025

_ •›, - .. Ms. Ho Dang Hoang Quye H a V In Diu

Chief Accountant Chief Financial Officer

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT

for the period from 1 January 202ñ to 3'I March 2025

Form B05a/TOTD-HN (issued under L*ircular No

2.7/2021/J"T- NHNN dated .31 December 2021)

1. GENERAL INFORMATION

1. Establishment and Operations, Term of operation

   Ho Chi Minh City Development Joint Stock Commercial Bank ("the Bank") is a joint stcck cofvmercial bank incorporated in the Socialist Republic of Vietnam.

   The Bank was established and operates in accordance with Decision No. 47/QD-UB issued dy the People's Committee of Ho Chi Minh City on 11 February 1989 and initial Banking License No. 00019/NH-GP issued by the State Bank of Vietnarri ("the .SBV") on o .June 1902 and replaced by Banking License No.26/GP-NHNN issued by the State Bank of Vietnam on 12 February 2020 and Decisions amending and supplementing the Establishment and Operation License No.26/GP-NHNN on 12 February 2020. The operation term of the Bank is 99 years from the date of the first license.

   The Bank's principal activities are to provide banking services including mobilizing and receiving short, medium and I‹Jng-term deposits from organic.ations and individuals; making shcrt, medium and long-term loans to organizations and individuals based on the nature and capability of the Bank's capital resources; conducting foreign ‹currency transactions; providing international trade finance services, discounting of commercial notes, bonds and valuable papers; settlement services and other banking services as allowecl by the SBV.

2. Charter capital

   The charter capital of the Bank as at 31 March 2025 is VND35,101,423 million (as at 31 December 2024: VND35,101,423 million).

3. The Board of Directors

   The members of the Board of Directors of the Bank during the period and at the date of this report are:

   Name Fositioi›

   Date of appointee.rit/re-appcintmenI:/Resignation

   Mr. Kim› ByouisgHu

   Chairman, Independent Member

   Appointment on 20 April 2022

   Ms. Nguyen Thi Phuonq Thao Standing Vice Chairwoman Mr. Luu Duc Khanh Vice Chairman

   Mr. Nguyen Thanh De Vire Chairman Mr. Nguyen Huu Dang Vice Chairman

   Mr. Le Manh Dung Independent Member

   Mr. Pham Quoc Thanh Member

   Re-appointment on 29 April 2022

   Re-appointment on 29 April 2022 Re-appointment on ?U April 2022 Resignation on 08 January 202ñ Appointment on 29 April 2022

   Appointment on 26 April 2023

   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT

   fcr the period from 1 January 2025 to 31 March 2025

   Form B05a/TCTD-HN (issued under Circular No

   ?"//2 J21/TT- NHNN dated 31 December 202'J )

4. The Board of Management, Chief Financial Officer and Chief Accountant

   The members of the Board of Management, Chief Financial Officer and Chief Accountant of the Bank during the period and at the date of this report are:

   Name Position

   Date of appointment/re-appointment/ Resignation

   Mr. Pham Quoc Thanh F1i . fig uyen lv1inh Due Mr. Le Thanh Tung Mr. Nguyen Van Hao

   Mr. Nguyen Dang TI anh Mr. Tran Hoai Nam

   Mr. Tran Thai Hoa

   Mr. Nguyen Canh Vinh Mr. Tran Xuan Huy Mr. Pham Van Dau

   Ms. He Dang LJoang Quyen

5. Operation network

   Acting General Director Deputy General Dii ector Deputy General Director Deputy General Director Deputy General Director Deputy General Director Deputy General Director Deputy General Directo Deputy General Director Chief Financial Officer Chief Accountant

   Appointed on 3 April 2025

   Re-appointed on 1 August 2022

   Appointed on 16 September 2009

   Re-appointed on 2 October 2023

   Re-appointed on 9 July 2023

   Re-appointed on 2"/ February 2025 Re-appointed on 26 May 2024

   Re-appointed on 1 November 2023

   Resignation on 15 Jant‹ary 2025

   Appointed on 16 September 2009

   Appointed on 7 July 2011

   The Bank's Head Office is loo.ated at HD Tower, 25 Bis Nguyen Thi Minh Khai Street, Ben Nghe Ward, District 1, No Chi Minh City. As at J1 March 2025, the Bank had one (1) Head Office, one

   (1) representative office in the North; one (1) representative office in Myanmar, eighty-seven (87) branches and two hundred and eighty-eight (288) transaction offices located in cities and provinces throughout Vietnam.

6. Subsidiary

   As at 31 March 2025, the Bank had one (1) subsidiary:

   Subsidiary	Operating License No.	Nature of business	Ownership of he Bank
   ID SAISON Finance Co ,	030499013J dated 1J July 2007	Finance/	50%
   Ltd. ("HD SAISON"),	issued by Ho Chi Minh city	Banking
   previously known as Ho Chi	Department cf Planning and
   Minh City Development Joint	Investment, amended for
   Stock Cuiiii«eicial Bank	sixteenth (1G) time on 20 June
   Finance to., Ltd.	?022

7. Employees

The Bank and its subsidiary's total number of employees as at 31 March 2025 was 18,585 persons (as at 31 December 2024 was 18,533 persons)

NOTES TO THE CONSOLIDATED FINANCIAL. STATEMENT

for the period from 1 ,January 202a to 31 March 2025

Form B05a/TCTD-HN (issued under Circular No

27/ 021/TT- NHNN dated 31 December 2021)

11. ACCOUNTING PERIOD AND ACCOUNTING CURRENCY

1. Accounting period

   The Bank and its subsidiary's fiscal year starts on 1 January and ends on 31 December.

   The first quarter accounting period applicable for the presentation of consolidated financial statements of the Bank and its subsidiary's starts on 1 January and ends on 31 March.

   2

   Ill.

   
   
   

   The Bank and its subsidiary's accounting currency is Vietnam dong ("VND" or "Deng"). The consolidated financial statements are prepared and presented in VND, rounded to the nearest million ("VND million"). The Bank and its subsidiary determine its accounting currency if› accordance with Vietnamese Accounting Standards, Vietnamese Accounting System and applicable regulations.

   APPLIED ACCOUNTING STANDARDS AND SYSTEM

   1. Statement of compliance

      The Boarcl of Management of the Bank confirms that the accompanying consolidated financial statements have been prepared in accordance with Vietnamese Accounting Standards, Vietnamese Accounting System for Credit Institutions and other statutory requirements relevant to preparation and presentation of the consolidated financial statements

   2. Basis of preparation of consolidated financial statements

      The consolidated financial statements have been prepared in accordance with Vietnamese "Accounting Standards, Vietnamese Accounting System for Credit Institutions and other statutory requirements relevant to preparation and presentation of the consolidated financial statements applicable to credit institutions operating in Vietnarri The consolidated financial statements have been prepared under the historical cost convention.

      The accompanyir›g consolidated financial statements are not intended to present the consolidated financial position, consolidated results of operations and consolidated cash flows in accordance with accounting principles and practices generally accepted ii countries and jurisdictions ‹other than Vietnam. The accounting principles and practices utilised in Vietnam may differ from those generally accepted in countries and jurisdictions other than Vietnam

      10

      NOTES TO THE CONSOLIDATE£J FINANCIAL STATEMENT

      for the period from 1 January 2025 to 31 March 2025

      Form B05a/TCTD-HN (issued under Circular No.

      27/2021/"FT- NHNN dated 3 1 December 2021)

   3. Assumptions and uses of estimates

      The preparation of the consolidated financial statements is in accordance with Vietnamese Accounting Standards, Vietnamese Accounting System and applicable regulations on preparation and presentation of consolidated financial statements applicable to credit institutions operating in Vietnam require the Board of Management make estimates and assumptions that affect the the reported amount of assets and liabilities and disclosure of contingent liabilities and contingent assets at the end of period, such as income and expense amount during the accounting oeriod.

      Estimates and assumptions that have a material effect on the consolidated financial statements include:

      • Classification and provision for credit losses of loans to customers;

        Estimates and assumptions are reqularly evaluated based on past experience and other factors, including future assumptions that have a material effect on the Bank and its subsidiary's consoldiated financial statements and considered by the Board of Management to be fair.

   4. Basis of consolidation

   The consolidated financial statements include the financial statements of HDBank and the financial statements of its subsidiary (HDSaison Finance Company Limited).

   The financial statements of the subsidiar y used for consolidation are prepared for the same reporting period as the parent bank, using consistent accounting policies.

   1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

      1 Foreign currency transactions

      All transactions are recorded in original currencies. "Transactions arising in foreign currencies are translated at exchange rates prevailing at the transaction dates. Monetary assets and liabilities denominated in foreign currencies at month end are translated at the exchange rate prevailing at the month end date Foreign exchange differences arising from these translations are recognised in the foreign exchange differences item in the consolidated statement of financial position at fconth end and transferred to the consolidated income statement at year end

2. Basis of consolidation

   Subsidiaries

   Subsidiaries are entities controlled by the Bank. The control exits when the Bank has the power to govern the financial and operating policies of an entity so as to ubtain benefits from its activities. In assessing the control, potential voting rights that presently are exercisable are taken into account. The financial statements of subsidiaries are included in the consolidated financial statements from the date that the control comrriences until the date that the control ceases.

   Inter-company balances, transactions and profit/loss on transactions between those subsidiaries and the Bank are eliminated in full in the consolidated financial statements The accounting policies of subsidiaries have been chanqed if necessary to ensure the consistency with the policies adopted by the Bank.

   l1

   NOTES TO THE CONSOLIDATE D FINANCIAL STATEMENT

   for the period from 1 January 2025 to 31 March 2025

   Form B05a/TCTD-HN (issued under ircular No

   27/2021/TT- NHNN dated 31 December 2021)

   Non-controlling transactions and interests

   The Bank and its subsidiary apply a policy for transactions with non-controlling interests as transactions with external parties to the Group. Non-controlling interests ("NCI") are measured at their proportionate share of the acquiree's identifiable net assets at date of acquisition.

   A divestment of the Bank's interest in a subsidiary that does not result in a loss of control is accounted for as a transaction with owners. The difference between the change in the Bank's share of net assets of the subsidiary and any consideration paid or received from divestment of the Bank's interest in the subsidiary is recorded directly in the undistributed earnings under equity.

   In a divestment of the Rank's interest in a subsidiary that result in a loss of control, the difference between the Bal k's share in the net assets of the subsidiary and the net proceeds from divestment is recognised in the consolidated income statement. The retained interest in the entity will be accounted for as either an investment in another entity or an investment to be accounted for as equity since the divestment date.

   Associate

   Associate company is a company in which the Bank has significant influence but does not control, typically represented by holding 20% to 50% of the voting rights in that company. Investments in associate companies are accounted for using the equity method and initially recognized at cost

   The Bank's share of the results of open-ations of the associate company is recognized in the Bank's consolidated income statement Cumulative changes after the investment in the associate company are adjusted to the carrying amount of the investment. When the Bank's share of the losses of the associate company equals or exceeds the carrying amount of the investment, the Bank does not continue to recognize further losses in the consolidated financial statements unless the Bank has an obligation to make payments of behalf of the associate company for debts that the Bank has guaranteed or committed to pay In such cases, the value of the investment presented in the financial statements is zero (0). If the associate company subsequently becomes profitable, the Bank recognizes its share of the profits only after offsetting the previously unrecoqnized net losses.

   The accounting policies of the associate company are adjusted when necessary to ensure consistency with the accounting policies adopted by the Bank and its subsidiaries.

   1. Derivatives ar›d hedging accounting

      Derivatives are recognised in the consolidated statement of financial pusitioi at coiJtiact valuu on the contract clate anal s«haeqisently are revalued at the rate of exchange prevailinq at the month end. Realised gains or losses are recognised in the consolidated income statement Unrealised gains or losses are recognised in the foreign exchange differences item it› the consolidated statement of fit ancial position at the month end and are transferred to the income statement at the year end

   2. Income and expenses recognition

      
      
      

      Interest income is recognised in the consolidated income statement on an accrual basis, over time and at effective interest rate fci each period when two conditions are simultaneously satisfied: (i) it is probable that the economic benefits associatecl with the transaction will fl‹›w to the Bank; and (ii) the amount cf interest income can be measured reliably. Accrued interest income is derecognised and recognised into off-statement of financial position when a loan is not classified as Current loan or is subject to the application cf Circular 03/2021, Circular 14/2021 or the application cI CiF(:uior 02/2023 and Cir cular 06/2024, interest inrome frnm these lnans is recognised in the consolidated income statement riporJ rereu ts

      12

      NOTES TO THE CONSOLIDA"TED F"INANCIAL STATEMENI"

      for the t›eriod from 1 January 2025 to II March 2025

      Form B05a/fCTD-HN

      (issued under Circular No

      27/2021/IT- NHNN dated 31 December 2021)

      Other income. from credit activities

      Other income from credit activities primarily comprises fees such as loan withdrawal commitment fees, standby credit limit fees, early repayment fees, and other fees associated witf credit activities, which is recognised when the completion of the work as per the agreed-upon work under the contract/agreement cars be reliably determined at the date of preparation of the consolidated financial statements

      Fee and commission income

      Fee and commission income comprises fee income from insurance agency services, bonds services, settlement services, treasury services and other services that are recognised on an accrual basis in the consolidated income statement when the services rendered, by reference to completion cf the specific transaction assessed on the basis of the actual service provided as a proponion of the total services to be provided Fee ancl commission income is only recognised when all four (4) of the following conditions are satisfied:

      The amount of incofce can be measured reliably;

      It is probable that the economic benefits associated with the transaction will flow to the Bank;

      The percentage of completion of the transaction at the statement of financial position date can be measured reliably; and

      The costs incurred for the transaction ancl the costs to complete the tram saction can be measured reliably.

      
      
      

      Gain and loss fiom investment securities is determined based on the difference between the selling price and the cost of such securities.

      Dividend iucos›e

      Cash dividend income is recognised when the Bank establishes the right to receive dividend from investees and when it is probable that economic benefits associated with the transaction will flow to the Bank and income can be measured reliably. Stock dividends and bonus shares received are not recognised as inccme of the Bank, hut only the number of shares is updated

      Other inccme

      Other ii come is recognised on an accrual basis, by reference to completion level cf services

      According to Circular 16/20 8/TT-BTC dalad 7 Febi-uai/ 2018 issued by the Ministry of Financc, receivahles which have been accounted as income but then are assessed au ur ocllectible or can not be collected by due date, the Rank and its subsidiary shall revert such income if it is in the same financial year, of recognise as an expense if it is not in the same financial year and monitor these receivables in off-statement cf financial position items for subsequent collection The Bank and its subsidiary shall recognise these receivables as inccme ir› the consolidated income statement upon receipt.

      lntere.st expenses

      Interest expenses are recognised in the consolidated incor ›e statement on an accrual basis.

      NOTES TO THE CONSOLI DATED FINANCIAL STATEMENT

      f‹Jr the period froeJ 1 .January 2025 to II March 2025

      Form B05a/TCTD-HN (issued under Circular No

      27/20?.1/TT- NHNN dated ?1 December 202 l )

   3. Acccounting for loans to customers and purchased debts

      1. Accounting for loans to customers

         Measurement "and recognition of loans to customers

         Short-term loans are loans with term of less than one year from the date of disbursement. Medium-terrr loans have term of one to five years from the date of disbursement. Long-term loans are Irans with term of over 5 years from the date of disbursement.

         Loans tc customers are stated at amount of principal outstanding less provision for credit losses.

         According to the Law on Credit Institutions No. 32/2024/QH15 issuecl by the National Assembly on 19 January 2024 an4 Circular 21/2024/TT-NHNN issued by SBV on 28 June 2024 regulating letted's of credit ("L/C") operations and other dusiness activities relating to L/C, from 1 July 2024, L/C operation is defined as a form of credit granting through the issuance, confirmation, payment negotiatiofJ and repayment of L/C The Bank has made appropriate accounting recognition in accordance with these regulations

         Cla,ssificaticn of loans to customers

         Before 1 July 2024, loans classification and provisions for credit losses were made in accordance with Circular 11.

         From 1 July 2024, debt classification, including customer loans, debts arising from the issuance of L/C, payment negotiation of L/C, and repayment of L/C (collectively referred to as "debts"), was made in accordance with Circular :31; and provisioning for credit risks was made in accordance with Decree 86.

         
         
         

         According to Circular 31, loans to customers are classified into five debt groups based on the repayment status and quantitative factors as follows:

         fiicup 1: Current loans

         1. Current loans are assessed as fully and timely recoverable for both principals and interests;

         2. Loans are overdue for a pericd of less than 10 days and assessed as fully recoverable for both overdue principals and interests, and fully and timely recoverable for both› fefcaining [›rinripaIs and interests; or

         3. Loans classified into group 1 os meeting criteria to be classified into groups with lower level of risk

            Group 2: Special mentioned loans

            1. Loans are overdue up to 90 days; except those specified in point (ii) of Current loans and those classified into a group with higher level of risk as prescribed; oi

            2. Loans rescheduled for the first time and repaid on schedule, except those meeting criteria to be classified into a group with lower of risk and those classified intu a gioup with higher level of risk as prescribed

            3. Loans classified into group 2 as meeting riteriatc be classified into a group with fewer level of risk or loans classified into group with higher level of risk as prescribed

            Group 3 Sub-standard loans

            1. Loans overd ue between 91 days and 1TO days, except those classified intc a grow p with higher level of risk as pi es‹:ribed by regulations, or

               NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT

               for the period from 1 Januai y 2025 lo ?1 March 2025

               Form B05a/TCTD-HN (issued under I?ircular No

               27/f?021/TT NHNN dated 31 December 202 1)

            2. Loans are extended for the first time and repaid on schedule, except those meeting criteria to be classified into a group with lowei- level of risk and or loans classified into a group with higher level of risk as prescribed by regulations; cr

            3. Loans are exempted or reduced interests because customers are not able to pay the interests according to credit contracts, except those classified into a group with higher level; or

            4. I.oans falling if› one of these following cases that have not yet f›een collected within less than 30 days from the issuance date of debt collection decision:

               • Loans violating reg elations specified in clauses 1, 3, 4, 5, 6 of Article 134 of Law on Crectit Institutions No. 32/2024/QH15 (from 1 July 202.4) or according to clauses 1, 3, 4, 5, 6 of Article 126 of Law on Credit Institutions No. 4"//2010/QH12 (before 1 July

                 2024); or

               • Loans violating regulations specified in clauses 1, 2, 3, 4 of Article 135 of Law on credit institution s No. 32/2024/QH15 (from 1 July 2024) cr according to clauses 1, 2, 3, 4 of Article 127 of Law on credit institutions No. 47/2010/QH 12 (before 1 July 2024); or

                 
                 
                 

                 Loans violating regulations specified in clauses 1, 2, 5, 9 of Article 1 6 of I aw on credit

                 institutions No. 32/2024/Qf-115 (from 1 July 2024) or according to clauses 1, 2, 5 of Article 128 of Law on credit institutions No. 47/2010/QH12 (before 1 July 2024).

            5. Loans in the collection process under inspection conclusions; or

               
               
               

            6. Loans collected under premature debt collection decisions by the Bank and its subsidiary due to customers' breach of agreements without being collected within less than 30 days from the issuance date of debt collection decision; or

            7. Loans are classified into group 3 as meeting criteria to be classified into a group with lower level of risk oi loans classified into a group with hiqher level of risk as prescribed by regulations; or

            8. Loans must be classified into group 3 according to requir'ements of SBV due to risk level of the loan based on the results of inspection, supervision, and relevant credit information.

            Group 4: Doubtful Irans

            1. I nuns overclue between 181 clays to 360 days, except those classified into a group with higher level of risk as prescribed by regulations; or

            2. Loans are restructured for the first time and overdue less than 90 days according to the first restructurecl payment term, except those classified into a group with higher level cf risk as prescribed by regulations; or

            3. Loans are restructured for the second time and undue, except those meeting criteria to be classified into a group with lower level of risk or classified into a group with higher level of risk as prescribed by regulations; or

            4. Loans are specified in point (iv) of Sub-standard loans remair uncollected for a pericd of 30 to 60 days from the issuance date of debt collection decision; or

            5. Loans in the collection process under inspection conclusions but oeing overdue up to 60 days according tc inspection conclusions, of.

            6. Loans recovered under premature debt ‹collection decisions of the Bank and its subsidiary due to customers violating the agreement which iemain uricollected for a period of 31) to b0 days trom the issuance date cf debt collection decisiotis, ui

               15

               NOTES TO THE CONSOLIDATED I-"INANCIAL STATEMENT

               for the period from 1 January 2025 to ?1 March 202a

               Form B0ña/J"CTD-HN

               (issued under Circulat Nc

               "7/2021/TT NHNN dated 31 December 20a 1)

            7. Loans that ale classified into group 4 as meeting criteria to be classified into a group with lower level of risk or classifiecl into a group with higher level of risk as prescribed by regulations; or

            8. Loans that are classified into group 4 according to requirements of SBV due to risk level of the loan based on the results cf inspection, supervision, and relevant credit information.

            Group 5: Loss loans

            1. Loans overdue more than .Jb0 oays, or

            2. Loans are restructured fcf the first time and overclue from 91 days according tu the first restructured terms of repayments; or

            3. Loans are restructured for the second time and overdue according to the second restructured terms of repayments; or

            4. Loans are restructured for the third time or more, except those meeting criteria to be classified into a qroup with lower level of risk; or

            5. Loans specified in point (iv) of Sub-standard loans which remain uncollected for more than 60 days from the issuance date of collection decision; or

            6. moans in the collection process under inspection conclusions but being overdue for more than 60 days according to inspection conclusions; or

            7. Loans recovered under premature debt collection decisions of the Bank and its Slsbsidiary due to cfsstomers violating the agreement which remain lsncollected for more than 60 days from the issuance date of debt o°oIIection decision; or

            8. Loans to other credit institutions announced under special control status, cr tu foreign bank's branches of which capital and assets are blockaded; or

            9. Loans that are classified into group 5 as meeting criteria to be classified into a group with higher level of risk as prescribed by regulations; or

            10. Loans that are classified into qi-oup 5 according to requirements of SBV due to risk level of the load› based on the results of inspection, supervision, and relevant credit information

                Loans sh'all be classified in a group with lower level of risk (including Group 1) in these following cases.

                Overdue loans

                Customers fully paicl werdrie principal ancl interest (including interest on nverr!i e principals) and principals, interest of following payment schedules (if any) for at least 3 (three) months in respect ol medium and long-terrr‹ loans and 1 (one) month in respect of short-term loans since the date overdue principals ancl interest are fully repaid; and

                The Bank and its subsidiary have sufficient basis of information and documents to assess and conclude that customers are capable of f‹Jlly repaying principals and interest in a timely manner.

                Restructured loans

                Customers fully paid principal and interest under restructuring (if atsy), for at least 3 (three) months in respect. of mediurri and long term loans and 1 (one) month iti rest›ect of short term loans, since the date principal and interest under restructuring are fully paid; of from the co Jmence date of full repayment of such principal and interest in cases where the repayment schedules for principal and interest are congruent;

                1. he Bank and its subsidiary have sufficient basis of information and documents to assess and conclude that customers are capable ct fully repaying principals and interest in a timely manner

                   NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT

                   for the period from 1 Januai y 2025 to 31 March 2025

                   Form B05a/TCTD-HN

                   (issued rJndet Circular No

                   "7/2021/TT- NHN N dated II December 2021)

                   Loans shall be. classified in a group with higher level of risk these following case.s.'

                   Norms on profitability, solvency, ratio of debts to capital, cash flcws leading to capability of customers to repay debts deteriorating continuously for 3 consecutive times of assessment or loan classification; or

                   Customers fail to supply fully, timely and truly financial information at the request of the Bank and its subsidiary to assess debt repayment capability of customers; or

                   Loans which are classified in Group 2, Group ?, Group 4 for 1 (one) year or longer but not qualified to classify in a group wilh lower level of risk; or

                   Loans whose credit extension is administratively sanctioned Nor -performing loans are loans classified into Group 3, 4 and 5

                   The Bank ance its sJbSidiary are required to use the results of loan classification as provided by the Credit Information Center of the SBV ("CIC") to classify its loans to customers into a group with higher level of risk between the group assessed by the Bank ancl its subsidiary and the group provided by the CIC.

                   When a customer owes more than one loan to the Bank, and has any loar› classified into a group with higher level of risk, the Bank classifies the remaining loans of such customer into the loan proup with highest level of risk.

                   When the Bank and its subsidiary participate in a syndicated loan, the Bafzk and its subsidiary rec!assify all loans (if cluding the outstanding syridicated loan) of the customer intc the group with the highest level of risk as determined by the lenders.

                   Classification of payments for off-balance shee.I commitments

                   Payments under off-balance sheet commitments are amounts that the Bank and its subsidiary settled on behalf of customers when customers who are guaranteed by the Bank and its subsidiary are net able to settle the amount when it falls due.

                   According to Circular 31, off-balance sheet co mitments are ‹classified as follows: Group 3: Sub-standard - If overdue for less than 30 days

                   Group 4: Doubtful - If overdue from 30 days and less than 90 days;

                   Group 5: Loss - If overdue for 90 days or more.

                   It the payment under off-buluiioe sheet conJnsitnaent is classified iii u gi oup with lower level of risk than a group in which the off-balance sheet commitment is classified, the Bank and its subsidiary must reclassify the payment into the same group of the off-balance sheet commitment.

                   Provision for losses on lo"ans to customer,s

                   Provision for losses on loans to customers includes specific provisions and general provisions

                   Specific provisions

                   Specific provisions for losses on loans to customers are calculated using set tates applied t‹› each loan group as follows:

                   
                   
                   

                   No Chi Minh City Development Joint Stock Commercial Bank

                   NOTES TO THE CONSOLE DATED FINANCIAL STATEMENT

                   for the per ion from 1 January 2025 to II March 2025

                   Form B05a/TCTD-HN

                   (iss ued under ircular No.

                   27/2021/-FT NHN N dated 31 December 2021)

                   Provision rate

                   Group 1 - Current loans	0%
                   Group 2 - Special-mentioned loans	5%
                   Group 3 - Sub-standarcl loans	20%
                   Group 4 - Doubtful loans	50%
                   Croup 5 -- Loss loans	10†%

                   Specific provisions are calculated based on customer's loan balaf ces on the last working day of each month less the discounted value of" collateral assets.

                   According to Decree 8b, the maximum discount rate for each type of collateral asset is determined as follows:

                   Type of collateral assets	Maximum discounted ratio
                   Deposit, certificates of deposit in VND at the Bank.	400%
                   Government box ds, gold billets in accordance with luw oil golcl ti-ading activities; depmit, ‹certificate of deposit in foreign currencies at the Bank.	9	nd
                   (iii) Municipal bonds, Government-guaranteed bonds; transferable instruments,
                   bonds issued by the Bank; deposit, certificate of deposit issued by other
                   credit institutions, foreign bank blanches:
                   	95%
                   	850/
                   	80%
                   (IV) Securities issued by other credit institutions and listed on a stock exchange.	70%
                   (V) Securities issued by enterprises (except credit institutions) and listed on a stock exchange.	65%
                   (vi) Unlisted securities and valuable papers, except for types of securities
                   specified in (iii), issued by other credit institutions registered for listing on a
                   stock exchange;	50%
                   Unlisted securities and valuable papers, except for the types of .securities
                   specified in (iii), issued by other credit institutions net registered for listing on
                   a stock exchange	30%
                   (VM) Unlisted securities and valuable papers issued by enterprises registered for listing on a stock exchange; Unlisted securities and valuable papers issued by enterprises not registered for listing on a stock exchange	10%
                   (VI II) Real estates	50%
                   (I	) Others	30%

                   • With a remaining term of less than 1 year

                   • With a remaining term of between 1 year to 5 years

                   • With a remaining term of over 5 years

                   16

                   NOTES TO THE ONSOLI DATED FINANCIAL STATEMENT

                   for the period from 1 January 2fJ25 to 31 March 2025

                   Form B05a/TCJ"D-HN

                   (issued under Circulai No.

                   27/2021/T"T"- NI INN dated 31 December 2021)

                   Collateral assets are movable properties, real estates and collaterals other than gold billets, Government bonds listed on Stock Exchanges, securities issued by enterpi-ises or other credit institutions with a value above VND50 billion foi loans to customers who are related parties of the Bank and othei entities as prescribed in Article 135of the Law on Credit Institutions 2024 and collateral assets with a value for deduction above VND200 billion must be valued by external valuers. For other cases, collateral assets are valued according to the Bank's iriternal regulations and procedures.

                   Any collateral asset that does not fully satisfy the conditions specified in Article 4, 1°iause 4, Clause 5 of Decree 86 (before 11 July 2024: apply Article 12, Clause J of Circular 11) shall have its value considered as zero.

                   General provisions

                   Acc‹arding to Decree 86, the amcunt of general provision is determined by 0.75% of the total outstanding balance of debts classifiecl from group 1 to group 4.

                   Wrile-off bad debts

                   Bad debts could be written-off using provisions in the following cases:

                   
                   
                   

                   Customer is an organization, which is dissolved, goes bankrupt as prescribed by law or an individual who dies or is missing; or

                   Debts which are classified in group ñ

                   For at least 5 (five) years, after using provisions against credit risks and after all measures for debt recovery of the Bank and its subsidiary's Credit Committee have been implemented but debts are still irrevocable, the Bank and its subsidiary shall be entitled to release the unsettled debts from the off-balance sheet in accordance with the approval of the Bank and its subsidiary's Credit Committee.

      2. Loan restructuring, exemption or reduction of interest, fees and retention of loan group to assist customers affected by the Covid-19 pandemic

         From 1"/ May 2021, loan restructuring, exemption or reduction of interest, fees and retention of loan group to assist customers affected by the Covid-19 pandemic were carried out in accordance with Circular 03/2021/TT-NHNN ("Circular 03/2021") effective frcrr 17 May 2021 and Circular 14/2021/TT-NHNN ("Circular 14/2021") effective from 7 September 2021

         As at ñ1 December ?0°2?, the Bank made 100"% of additiuiial specific pi-ovisions required to be mach fnr customers whnse niJtstancling loan balances were restructured in accordance with Circular 03/2021.

         NOTES TO THE CONSOLIDATE D FINANCIAL STA"FEMENT

         for the period front 1 January 2025 tt› 3 I March 2025

         Form B05a/TCTD-HN (issued under Circular No

         1. // .021/J"T- NHNN dated 31 December 2021)

      3. Restructuring loan repayment terms and retention of loan group to assist customers facing difficulties in doing business and customers facing difficulties in repaying theii consumer loans.

         From 24 April 2023, restructuring loan repayment terms, including the principal and/or interest, to assist customers facing difficulties in doinp business and customers facing difficulties in repaying their consumer loans is carried out in accordance with Circular 02/2023/TT-NHNN ("Circular 02/2023") issued by the SBV on 23 April 2023, upon the customers' requests and the Bank and its subsidiary's financial capabilities.

         On 16 Julie 2024, SBV issued Circular 06/2024/TT-NHNN ("Circular 06/2024") on amending and supplementing Circular 02/2023, extending the implementation time of policies at Circular 02/202? until ?1 December 2024.

         According to Circular 02/202.3 and Circular 06/2024, Ihe Bai›k and its subsidiary restructure repayc›ent terms of outstandiiig principals and/or interest of loans to customers satisfying all of these following conditions".

         Being a loan with principal arisen before 24 April 2023 from lending and finance leases;

         "the obligation of principal repayment and/or interest repayment arises during the periccl from 24 April 2023 to JI December 2024;

         "the loan to be rescheduled is undue or has been overdue up to 10 days from the due date of payment schedule according tu cur li acl or agi eensent;

         
         
         

         The Bank and its subsidiary determine that customers are unable to iepay prit›cipal and/or interest on schedule under loan agreement due to decreasing revenue or income compared to revenue or income as specified in the repayment of principal and/oi interest plan under contract or agreement.

         Customers apply for loan restructuring and the Bank and its subsidiary determine that customers are able to fully repay principal and/or pay interest under the restructured schedules;

         Loan violates laws and regulations shall not be restructured by the Bank and its subsidiary;

         The restructured term (including lean extension) is decided in conformity with thru degree of difficulty of each customer and is not permitted to exceed 12 months from the criqinal maturity date of the res 3e tive rescheduled amount;

         Loan restructuring under Circular 02/2023 aiid Cii‹sulai 06/2024 is carried out from 24 April 202? tn ?1 December 2024.

         Cefai/ of loan classification and loan group reten/ior?.

         The Bank and its subsidiary retain loan group for the loan whose principal and/or interest are restructured ("restructured loan") at the latest classification before the loan was restructured

         For restructured loans that are undue during the restructured period, the Bank and its subsidiary do not apply to adjust, reclassify into a group with higher level of risk as prescribed in Circular 31 (from 1 July 2024) and Circular 11 (before 1 July 2024);

         For restructured loans that are overdue during the restructured period and the Bank and its subsidiary do net continue to apply loan restructuring as prescribecl in Circula› 02/2023 and Circular 06/2024, the Bank and its subsidiary shall classify those restructured loans in accordance with Circular 31 (frcm 1 July 2024) and Circular 1 I (before '1 July 2024);

         For the interest receivables on loans that are being restructured accordinq to Circular 02/2023 ancl Circular 06/2024, the Bank and its subsidiary do not record income (a(:crued interest) and recognises them as off-staterr ent of financial position to for following up and urge collection Interest income is recorded in the consolidated income statement upon receipts

         NOTES TO THE CONSOLIDATED FINANCIAL STATEMENT

         for the period from 1 January 2tJ25 tc II March 2025

         Form B05a/TCTD-H N

         (issuec! under Circulai No

         27/2021/TT- NI INN dated ° 1 Decerribcr 2021)

      4. Provision for losses on loans to customers whose principal and/or interest are restructured ir› accordance with Circular 02/2023 and Circular 06/2024

         From 24 April 2023, the Bank and its subsidiary make provisions for losses on loans to customers whose loans are restructured as prescribed by Circular 02/2023 and Circular 0b/2024 as follows:

         Additional specific provisions shall be determined as follows:

         ArJdition'al specific provision = A - B

         Whereas:

         A: Specific provisions made for all outstanding loans of customers according to loan classifications regulatecl by Circular 31 (prior to 1 ,July 2024, according to Circular 11).

         B: Specific provisions made for all outstat ding loans of customers according to loan classifications regulated by Circular 02/2023 and Circular 06/2024.

         If the aforef mentioned additional specific provision is positive, the Bank and its subsidiary make additional specific provisions for credit. losses as follows.

         By ?1 12 202J: At least 50% of additional specific provisions; By 31 12 2024: 100% of additional specific provisions

         The Bank and its subsidiary make general provisioning for the entire outstanding balance of customers based en the loan classification results determined arrnrrling fo Circular 31 (prior to 1 July 2024: according to Circular 11).

      5. Purchased debts

         
         
         
         
         
         
         
         
         

         Purchased debts are recorded at the purchasing price on the contract and classified to the group with risk level is not lower than its original group classified before purchase. If the interest receipt thereafter includes the accrued interest before purchase date, the interest recognition is made as follows: (i) reduce the value of purchased debts by the interest incurred before the purchase date; (ii) record the interest income in the period by the amount incurred after the purchase date.

         The Bank classify and make provisi‹Jn for purchased debts in accordance with regulations on loan classification and provision for credit loss

         1. 6 Debt selling activities

            Accordance to the guidance of Circular 09/2015/TT-NHNN, the treatment of the difference between the selling price and the book price for the debts is as follows:

            For debts currently recorded on the on-statement of financial position.

            If the selling price exceeds the book value ‹af the debt, the difference is recognised as other income within the fiscal year;

            If the selling price is lower thaws the value of the debt, the difference is recorded as an exDense of the Bank in the fiscal year, after being offset by compensation from parties, insurance from the designated insurance organisation, ated if applicable, the financial risk reserve found

            For debts that have been removed frown the consolidated financial statements and are being monitored off-statement of financial position, the proceeds from debt sales are recorded as other income of the Bank.

            21

            NOTES TO THE CONSOLI DATED FINANCIAL STATEMENT

            for the period from 1 January 2025 t‹› 31 March 202a

            Form B05a/TCTD-HN

            (issued under Circular No

            27/2021/TT- NHNN dated 31 December ?021)

         2. Trading and investment securities

            1. Trading securities

         Classification and recognition

         Trading securities include debt securities or equity securities which are acquired and are held for trading primarily for the purpose of selling in short-term, not exceeding one year to earn shcrt-term profits.

         Trading securities are teccgnised at the time the Bank becomes a party to the purchase contracts of these trading securities, details are as follows:

         Listed securities are recorded at the time of orders matching;

         Unlisted securities are recognised at the time when official ownership is established in accordance with regulations

         Me.asuremei›t

         Trading securities which are certificates of deposits or enlisted bonds are recognised at costs less provisions for credit losses. The classification of debts and provisioning for these securities are similar to those for "I.oans to customers" as presented in Note 5.1 According to Decree 86 (from 11 July 2024) and Circular 11 (before 1 July 2024), the Bank do not make general provisions for certificates of deposits and bonds issued by local credit institutions.

         Other trading securities are initially recognised at their carrying value less provisions foi diminution in value. Provisions for diminution in value are made when the market value of these trading securities is lower than their book value.

         For listed equity securities. the market price of equity securities is the closing price on the most recent trading day up to the end of the fiscal year.

         - For listed debt securities: the market price of debt securities is the most recent trading price at the Stock Exchange within 10 days up to the end of the fiscal year.

         The Bank does not make provisions fo Government bonds, municipal bonds and Government-guaranteed bonds.

         The difference between the provision made at the end of the curref›t financial year and the provision made at the end of the previous financial year is recognised in the consolidated income statement during the year Provisions for trading securities as mentioned abcve are reverted when the recoverable amount of trading securities increases after the provisions are made as results of objective events. A reversal of provisions, if any, is made cnly tu lliu extent Original costs of trading securities

         Gains or losses from sales of trading securities ale i ecognised in the consolidated involve statement as "Net gain from trading of trading securities" Cost. is determined by the specific identification method.

         Interests received from trading securities during holding periods are recognised ir› the consolidated income statement upon receipts.

         Dec.cognition

         Trading securities are derecognised when the rights to receive cash flows from these securities are terminated or the Bank transfer substantially all the risks and rewards from ownerships of these securities

         NOTES TO THF SONSOLl DATED FINAN1IAL STATEMENI-

         for (he period from 1 January 2025 fc 31 March 2025

         Form B05a/TCTD-FJN

         (issued under Cir cuIar No.

         27/2021/T1- NI NN dated 31 December ?*021)

   4. 2 Available-for-sale investment securities Classification alid recognition

      Available-tor-sale investment securities include debt and equity securities, which are intended to be held for investing purposes and may be sold at any time if deemed advantageous.

      Available-for-sale investment securities are recognised when the Bank becomes a party to the purchase contracts of these securities

      Me'asuremenl

      Available-for-sale investment securities which are certificates of deposits or unlisted bonds are recorded at costs less provisions for credit losses

      Other available-for-sale investment securities are stated at their carrying value less provisions for difniPlJtion in value. Provisions for diminutions in value of available-for-sale investmefst securities is made when the carrying value is higher than the market price

      1 he picvision for credit losses and provision for diminution in value of available-for sale investment securities are trade similar to the principles applied to trading securities as presented in Note 6.1

      Available-for-sale debt securities are recognised at par value at purchased date. Accrued interest receivables before purchased date (for debt securities with interest payments in arrears) or deferred interest awaiting for allocation (for debt securities with interest payments in advance) is recognised in a separate account Discount/premium, which is the negative/positive difference between the cost and the amount of par value plus (+) accrued interest receivables hefore the purchased date (if any) or minus (-) deferred interest awaiting for allocation (if any) is also recognised in a separate account.

      In subsequent holding periods, these debt securities are recognised at par value, and the discounVpremium (if any) are amortised to the consolidated income statement on a straight-lix e basis over the remaining terms of these debt securities

      Cumulative interest before purchased date is recognised as a decrease in the accrued interest receivables account upon receipt. Accrued interest incurred after purchased date is recognised as income of the Bank based on an accrual basis. Interest received ill advance is amortised into interest income from investment secut ilie buyed on a straight-line basis over the tern s of investment .ear:i Jrifiee.

      Gains oi losses frcm sales of available for-sale investrrient securities are recogni.reel in the consolidated income statement as "Net gain from trading of investment securities" Cost is determined by the specific identification method

      
      
      

      Available-for-sale investment securities are derecognised when the rights to receive cash flows from these securities are terminated or the Bank transfers substantially all the risks and rewards of ownerships of these securities.

      6.3 Held-to-maturity invesfrr›enf securities

      Held-to-rr aturity investment securities are debt securities that the Bank purchases with investing purpose to earn interests and the Bank has capabilities and intentions t‹s hold these investment securities until maturities. According to Officia! Letter No 2G01/NHNN-TCKT issued by SBV on 14 April 2009, the Bank is allowed to reclassify maximum onetime after /Jurchasing lot held-to-maturity ir1vestrner I su‹ uiitiuu

      NOTES TO THE CONSOLE DATED FINANCIAL STATEMENT

      for the period from 1 January 202a to 3 March 202a

      Form B05a/TCTD-HN

      (issued under ircular No.

      27/?021/TT NHNN dated II December 2021)

      Held-to-maturity debt investment securities are recognised and measured similarly as available-for-sale debt investment securities as presented in Ncte 6 2

   5. Cash and cash equivalents

      For the purpose of the consolidated cash flow statement, cash and cash equivalents comprise cash on hand, gold, balances with SBV, demand and term deposits at other credit institutions which have original terms within J months ot less, and securities which have collection periods or origin al maturities within 3 months or less from purchase dates

   6. Provision, contingent liabilities and assets

      Off-balance sheet commitments comprise guarantees, settlement acceptances and irrevocable credit commitments

      From 1 July 2024, the classifications of off-balance sheet commitments are made in accordance with Circular 31 as follows:

      Group 1: Undue commitments, as assessed by the Bank and its subsidiary, which could be fully settled when due.

      Group 2: Undue commitments, as assessed by the Bank and its subsidiary, which could not be fuI)y settled when they fall due

      A commitment is classified into Group 3 or a group of higher risk: Commitments meet any of the specified conditions af cl remains uncoI!ected for a period less than 30 days from the issuance date of the Bank and its subsidiary's collection decision:

      Commitments violating the provisions in Clauses 1, 3, 4, 5, 6, Article 134 of the Law on Credit i

      Institutions No. 32/2024/QH15 (before 1 July 2024 applied according to Clauses 1, 3, 4, 5, 6 Anicle 'I 26 of the Law on Credit Institutions No. 47/2010/QH12 and according to Circular

      11); cr

      Commitments violating the provisions in Clauses 1, 2, J, 4, Article 135 uf the Law or Credit Institutions No. 32/2024/QH15 (before 1 July 2024: applied according to Clauses 1, 2, 3, 4, Article 127 Law on Credit Institutions No. 47/201U/QH12 and according to Circular 11); or Commitments that violate the provisions of Clauses 1, 2, 5, 9, Article 136 of the Law on Credit Institutions No 32/2024/QH15 (before 1 July 2024: applied according to Clauses 1, 2, 5, Anicle 128 of the Law on Crecit Institutions No. 47/2010/QH12 and according to Circular 11)

      F'rovi ion for ‹off-b'al'ancc hcot comrriitme.nts

      According to Decree R6 (from 11 July 2024) and Circular 11 (before 1 July 2024), the classification of off-balance sheet commitments is conducted solely for risk management, ‹credit qr ality supervision. therefore, provisions are not made for off-balance sheet commitments

      NOTES TO TFT E CONS OLIDATED FINANE? IAL STATEMENT

      for the period from I January 2025 t‹ 31 March 2025

      Form B05a/TCTD-UN

      (issued under Circular Nc

      27/202.1/TJ"- NHNN datr:d 31 December ?021)

   7. Corporate income tax

      Income tax include all income tax which is based on taxable profits. Income tax expense comprises of currefst tax expense and cleferred tax expense.

      Current income tax is the amount of income tax payable or recoverable in respect of the current period taxable profits at the curler I period tax rates. Current and deferred income tax are recognised as an income oi an expense and included in the consolidated income statement of the period, except to the extent that the income tax arises from a transaction or event which is recognised, in the same or a different period, directly in equity.

      Deferred incorrie tax is provided in full, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the interim consolidated financial statements Deferred income tax is not accounted for if it arises from initial recognition cf an asset or liability in a transaction other than a business combination that at the time of occurrence affects neither the accounting nor the taxable profit or loss. Deferred income tax is determined at the tax rates that are expected to apply to the period when the asset is realised or the liability is settlecl, based on tax rates that have been enacted or substaistively enacted by the interim cof›soIidated statement of financial position date.

      Deferred income tax assets are recoqnised to the extent that it is probable that future taxable profit will be available against which the temporary differences can be r tilised.

   8. Borrowings, issued debt securities and equity instruments

      Due to State Bank of Vietnam, due to and borrowings from other credit institutions, valuable papers

      issued are disclosed at the principal amounts outstanding at the date of the consolidated financial , statements. At initial recognition, issr ance costs are deducted from the cost of the valuable papers.

      These costs are allocated on a straight-line method during the lifetime of the valuable papers to "Interest and similar expenses"

   9. Owners' capital

   Owners' capital is recorded according to the actual amounts ccr tributecl by shareholders at the par value of the shares

   Share premium is the difference between the par value and the issue price of shares and the difference between the repurchase price and re-issuing price of treasury shares

   Other owners' capital represents ether capital held by the owners at the reporting date.

   Treasury sh"ares

   Treasury shares bcught before the effective date ‹sf the Law on Securities (1 January 2021) ale shares issued by the Bank and bought back by the Bank itself, but these securities are not cancelled yet and may be re-issued in the future in accordance with securities laws and regulations. The amount received will be recorded as an increase in equity, and any surplus or deficit from these transactions will be recorded in the share premium account.

   -Treasury sf aies, which ale repurchased after the effective date of the Law on Securities (1 January 202.1), are cancelled and adjustecl to rechsce in the Bank's charter capital

   NOTF.S TO THE CONSOLE DATED FINANCIAL STATEMENT

   f‹Jr the period from January 2025 to J1 March 2025

   Form B05a/TCTD-HN (issued under Ciicular No

   27/2021/TT- NHNN dated ?1 Deccfcbcr 2021)

   Retained earnings

   Retained earnings record the Bank and its subsidiary's results (profits) after CIT at the reporting date.

   Sfafufo Reserves

   Supplement charter capital reserve

   Since 1 July 2024, according to the l.aw on Credit Institutions No. 32/2024/QH14 issued by the National Assembly on 18 January 2024, the Bank and its subsidiary make appropriation of 10% of prcfit after tax to supplement charter capital reserve until it reaches the maximum balance of the Bank and its subsidiary's charter capital.

   J2.

   Financial reserve

   According to Law on Creclit Institutions No. 47/2010/OH 12 issued by the National Assembly or 16 June 2610 and r ecree No. 93/2017/N D-CP, the Bank and its subsidiary make appropriation of 10'/ of profit after tax to financial reserve

   The purpose of financial reserve is to offset residual asset losses and damage occurring in the course of business after such losses have been offset with compensation paid by organisations, individuals who caused them, indemnity paid by insurers and with the allowance set up and accounted for in expenses, and shall be used for ether purposes in accordance with the laws.

   These statutory reserves are not allowed to be distrif utecl and are recognised as part of eqLiity.

   Appropriation of profit

   The Bank and its subsidiary's dividends are recognised as a liability in the Bank's consolidated

   financial statements during the year in which the dividends are approvecl by the General Meeting , of Shareholders.

   Profit aftei CIT could be distributed to shareholders after approval at the C3eneral Meeting ‹of Shareholders, and after appropriation to other funds in accordance with the Bank and its subsidiary's charter and Vietnamese regulations.

   Other reserves includinq in equity are appropriated from profit after tax. The appropriation from profit after tax and the utilisations of other reserves must be approvecl by the resolution of the Genei al Meeting of chaioholders. These reserves are nut regulated by laws and are allowed to be fully distributed.

   The bonus and welfare fund is appropriated mom the Bank and its subsidiary's profit after tax after approval by the General Meeting of Shareholders and is presented as a liability on the consolidated statement of financial position, The Bank and its subsidiary uses the fund in accordance with purposes as specified in accordance with Decree 93

   Earnings per share

   The Bank presents basic and diluted earnings per share (EPS) for its ordinary shares Basic EPS is calculated by dividing the net profit attribtJtable to the ordinary shareholders of the Bank, after deducting the bonus and welfare fund made during the year, by the weighted average number of ordinary shares outstanding d‹Jring the year Diluted EPS is determined by adjusting the profit attributable to the ordinary shareholdei's and the weiqhterl average number of ordinary shares outstanding for the effect of all dilutive potential ordinary shares

   Restatement c orresponding figures. None

   26

   No Chi Minh City Development Joint Stock Commercial Bank

   NOTF.S TO THE CONSOLI DATED FINANCIAL S1"ATEM ENT

   lot the period from January 2 J25 to 31 March 2025

   Form B05a/TCTD-I-IN

   (issued under Circular No

   27/20 1/TT NHNN dated 3 1 December 2021)

   1. SUPPLEMENT FOR ITEMS PRESENTED ON STATEMENT OF FINANCIAL POSITION

      1. Securities held for trading

3. J March 20'25 31 Dece.mber 2024

VND millions VND million

1.6. Listing status of securities held for trading

Debt securities:

+ Listed

+ Unlisted Equity securities.

+ Listed

+ Unlisted Other securities:

+ I.isted

+ Unlisted

6,519,456

8,006,800

21,176,948

2"i

Ho Chi Minh City Development Joint Stock Commercial Bank

NGTF1 O THE CONSOLI DATED FINANCIAL. STATEMENT Form P05a/TU-D -LJN

(issued under Circular No 27/2021/1-1" NHNN dated 31 Dcccfriber 20?1)

Derivatives and other financial assets/liabilities

Tot'al contract value (at foreign exchange rate

Total book value

(at foreign e.xchange rate

at reportings d'ate)

3.

31 March 2025 "31 Decembe.r 2024

Loans tc local eccr›cmic organisations and individuals

Overdrafts and credil aids

Loans frorri funds, trusted if vestments

Discounting commercial notes af d valuable papers

Payments on behalf of customers

Loans to oversea economic organisations and

'?,"CC, 010

2.,656,705

163,045

25,8?5

423,085,075

.

5233,030

2,712,908

248,07

25, 835

individuals

1 0

150

Total

The business of issuing deferred payment letters of credit with terms of siqht payment or advanced payment arising before 1 July 2024 (•)

441,794,586

4,311,466

446,106,052

431,306,069

11,178,772

442,484,841