SHINHAN BANK VIETNAM LTD,

FINANCIAL STATEMENTS FOR THE YEAR 2022

(Issued in accordance with Decision No 49/2014/TT-NHNN dated 31 December 2014)

STATEMENT OF FINANCIAL POSITION (31/12/2022) STATEMENT OF FINANCIAL POSITION (31/12/2022) (continue)

INDEPENDENT AUDITOR’ REPORT
31/12/2022 31/12/2021 31/12/2022 31/12/2021
Unit: Million VND Unit: Million VND Unit: Million VND Unit: Million VND To : MEMBERS’ COUNCIL OF SHINHAN BANK VIETNAM LIMITED
ASSETS
Owners’ equity 25,221,988 21,516,385 We have audited the accompanying financial statements of Shinhan Bank (Vietnam) Limited
Cash on hand 1,273,681 1,112,890 (“the Bank”) which were prepared on 31 December 2022 and approved by the Board of
Contributed capital 5,723,025 5,723,025 Management on 29 March 2023. The financial statements comprise the statement of financial
Balances with the State Bank of Vietnan 6,440,703 4,776,497 Charter capital 5,709,900 5,709,900 position as at 31 December 2022, the income statement and the cash flow statement for the year
Other capital 13,125 13,125 then ended, and explanatory notes to the financial statements including significant accounting
Deposits with and loans to credit institutions 62,776,484 45,043,146 policies, as set out on pages 6 to 65.
Reserves 2,983,388 2,427,547
Deposit 58,168,935 43,005,107
Retained earnings 16,515,575 13,365,813 The Board of Management’s Responsibility
Loans 4,607,549 2,038,039
TOTAL EQUITY 25,221,988 21,516,385 The Board of Management of the Bank is responsible for the preparation and the true and fair
Derivatives and other financial assets - 80,623 presentation of the financial statements of the Bank in accordance with Vietnamese Accounting
TOTAL LIABILITIES AND EQUITY 176,960,389 149,021,510 Standards, the Vietnamese Accounting System and regulations on the preparation and
Loans and advances to customers 86,744,169 74,026,745 presentation of financial statements applicable to credit institutions operating in Vietnam, and for
Loans and advances to customers 87,730,316 74,945,429 such internal control which the Board of Management determines is necessary to enable the
OFF STATEMENT OF FINANCIAL POSITION ITEMS preparation and presentation of financial statements that are free from material misstatement,
Allowance for loans and advances to customers (986,147) (918,684) Undrawn loan commitments 500,000 350,000 whether due to fraud or error.
Borrowing guarantees 10,649,013 7,859,651
Investment securities 17,209,470 21,577,903 Auditor’s Responsibility
Foreign exchange transactions commitments 12,701,311 14,932,629
Available-for-sale investment securities 3,421,565 3,974,653
Letter of credit commitments 1,322,378 1,065,634 Our responsibility is to express an opinion on the financial statements based on our audit. We
Held-to-maturity investment securities 13,801,105 17,618,310 conducted our audit in accordance with Vietnamese Standards on Auditing. Those standards
Other guarantees 1,958,032 2,929,447
Provision for investment securities (13,200) (15,060) require that we comply with ethical standards and requirements and plan and perform the audit
in order to obtain reasonable assurance as to whether the financial statements are free from
Fixed assets 428,201 456,378 INCOME STATEMENT (2022) material misstatement.
Tangible fixed assets 155,316 167,961 An audit involves performing procedures to obtain audit evidence about the amounts and
2022 2021
Historical cost 638,268 587,488 disclosures in the financial statements. The procedures selected depend on the auditor’s
Unit: Million VND Unit: Million VND judgement, including an assessment of the risks of material misstatement of the financial
Accumulated depreciation (482,952) (419,527)
statements, whether due to fraud or error. In making those risk assessments, the auditor considers
Intangible fixed assets 272,885 288,417 Interest and similar income 8,629,318 6,525,583 internal control relevant to the Bank’s preparation and true and fair presentation of the financial
Interest and similar expenses (2,110,612) (1,526,051) statements in order to design audit procedures that are appropriate in the circumstances, but not
Historical cost 708,332 633,233
Net interest income 6,518,706 4,999,532 for the purpose of expressing an opinion on the effectiveness of the Bank’s internal control. An
Accumulated amortisation (435,447) (344,816) audit also includes evaluating the appropriateness of accounting policies used and the
Fee and commission income 991,061 811,261 reasonableness of accounting estimates made by the Board of Management, as well as evaluating
Other assets 2,087,681 1,947,328 Fee and commission expenses (536,944) (427,375) the overall presentation of the financial statements.
Receivables 371,715 261,872 Net fee and commission income 454,117 383,886
Accrued interest receivables 1,383,526 1,151,059 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
Other assets 419,940 534,397 Net gain from dealing in foreign currencies 845,292 579,653 basis for our audit opinion.
Provisions for losses on other assets (87,500) -
Net gain/(loss) from trading investment securities 1,860 (6,375) Auditor’s Opinion
TOTAL ASSETS 176,960,389 149,021,510 Other incomes 756,040 559,098
In our opinion, the financial statements present fairly, in all material respects, the financial
Other expenses (697,002) (440,171) position of the Bank as at 31 December 2022, its financial performance and its cash flows for the
LIABILITIES AND EQUITY Net other income 59,038 118,927 year then ended in accordance with Vietnamese Accounting Standards, the Vietnamese
Borrowings from the Government and SBV 961,255 - Accounting System and regulations on preparation and presentation of financial statements
OPERATING EXPENSES (2,932,788) (2,486,504)
applicable to credit institutions operating in Vietnam.
Sale and repurchase transactions of Government bonds
with the State Treasury 961,255 - Operating profit before provisions for credit losses 4,946,225 3,589,119
Other Matter
Provisions for credit losses (283,884) (427,471)
Deposits and borrowings from other credit institutions 11,340,768 14,627,548
The independent auditor’s report is prepared in Vietnamese and English. Should there be any
Deposits 10,189,219 11,678,594 PROFIT BEFORE TAX 4,662,341 3,161,648 conflict between the Vietnamese and English versions, the Vietnamese version shall take
Borrowings 1,151,549 2,948,954 precedence.
Corporate income tax (“CIT”) - current (970,786) (648,430)
Deposits from customers 133,535,254 110,644,113 CIT - deferred 14,048 14,048

NET PROFIT AFTER TAX 3,705,603 2,527,266

Derivative financial instruments and other financial
liabilities 428 -

Valuable papers in issue 3,549,191 737,464

Other liabilities 2,351,505 1,496,000

Fee and interest expense payables 1,053,672 680,352
Deferred tax liabilities 50,032 64,080
Other liabilities 1,247,801 751,568

TOTAL LIABILITIES 151,738,401 127,505,125