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![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
At that time, the Branch had to set aside a provision for credit risks, which reduced the Branchs income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giangs profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project Restructuring the system of credit institutions in the period 2011-2015 approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services.
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giangs products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Ministers Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giangs treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giangs income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giangs corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giangs card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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![Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
zt2i3t4l5ee
zt2a3gsnon-credit services, joint stock commercial bank
zt2a3ge
zc2o3n4t5e6n7ts
At that time, the Branch had to set aside a provision for credit risks, which reduced the Branchs income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giangs profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project Restructuring the system of credit institutions in the period 2011-2015 approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services.
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giangs products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Ministers Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giangs treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giangs income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giangs corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giangs card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Pre-tax Profit of Bidv Tien Giang in the Period 2011-2015
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At that time, the Branch had to set aside a provision for credit risks, which reduced the Branch's income.
Chart 2.2. Pre-tax profit of BIDV Tien Giang in the period 2011-2015
Unit: Billion VND
140
120
100
80
60
40
20
0
63.3
80.34
89.29
110.08
131.99
2011 2012 2013 2014 2015
Profit before tax
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, through chart 2.2, it can be seen that BIDV Tien Giang's profit is still increasing continuously, and its operating efficiency is currently leaking. This is a contribution of non-credit services, and this service segment will be increasingly focused on growth by BIDV Tien Giang to ensure the highest profit safety because credit activities have many potential risks. At the same time, focusing on developing non-credit services is consistent with one of the contents of restructuring the financial activities of credit institutions in the project "Restructuring the system of credit institutions in the period 2011-2015" approved by the Prime Minister in Decision No. 254/QD-TTg dated March 1, 2012 [14]: "Gradually shifting the business model of commercial banks towards reducing dependence on credit activities and increasing income from non-credit services".
2.2. Current status of non-credit service development at BIDV Tien Giang.
2.2.1. BIDV Tien Giang has deployed the development of non-credit services in recent times.
Along with the development of the Head Office, BIDV Tien Giang's products and services are constantly improved and deployed in a diverse manner to ensure provision for many different customer groups in the area: individual customers, corporate customers, and financial institutions. Typical services are as follows: Payment services, treasury services, guarantee services, card services, trade finance, other services: Western Union, insurance commissions, consulting services, foreign exchange derivatives trading, e-banking services,...
2.2.1.1. Payment services:
In accordance with the Prime Minister's Project to promote non-cash payments in Vietnam [15], banks in Tien Giang province have continuously developed payment services to reduce customers' cash usage habits through card services and electronic banking services such as: salary payment through accounts, focusing on developing card acceptance points, developing multi-purpose cards, paying social insurance by transfer, paying bills through banks, etc.
Chart 2.3. Net income from payment services in the period 2011-2015
Unit: Million VND
6000
5000
4000
3000
2000
1000
0
3922 4065
4720 5084 5324
2011 2012 2013 2014 2015
Net income from payment services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Along with the technological development of the entire system, BIDV Tien Giang has a payment system with a fairly stable transaction processing speed, bringing many conveniences to customers. The results of observing chart 2.3 show that the income from payment services that the Branch has achieved has grown over the years but the speed is not high and the products are not outstanding compared to other banks. Domestic payment products such as: Online bill payment, electricity bills, water bills, insurance premiums, cable TV bills, telecommunications fees, airline tickets, etc. bring many conveniences to customers. Regarding international payment, this is an indispensable activity for foreign economic activities, BIDV Tien Giang is providing international payment methods for small enterprises producing agriculture, aquatic food and seafood that have credit relationships with banks in industrial parks in Tien Giang province such as: money transfer, collection, L/C payment.
2.2.1.2. Treasury services:
BIDV Tien Giang always focuses on ensuring treasury safety and currency security, always complies with legal regulations, and minimizes risks in operations such as: counting and collecting money from customers, receiving and delivering internal transactions, collecting from the State Bank (SBV) or other credit institutions, receiving ATM funds, bundling money, etc. BIDV Tien Giang's treasury service management department is always fully equipped with modern machinery and equipment such as: money transport vehicles, fire prevention tools, money counters, money detectors, magnifying glasses, etc. to ensure absolute safety in treasury operations, immediately identifying real and fake money and other risks that may affect people and assets of the bank and customers. In addition, implementing regulation 2480/QC dated October 28, 2008 between the State Bank of Tien Giang province and the Provincial Police on coordination in the fight against counterfeit money, in the 3-year review of implementation, BIDV Tien Giang discovered, seized and submitted to the State Bank of Tien Giang province 475 banknotes of various denominations and was commended by the Provincial Police and the State Bank of Tien Giang province [17].
Chart 2.4. Net income from treasury services in the period 2011-2015
Unit: Million VND
350
300
250
200
150
100
50
0
105 122
309 289 279
2011 2012 2013 2014 2015
Net income from treasury services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
However, as shown in Figure 2.4, income from treasury operations is not high and fluctuates. Specifically, in the period 2011-2013, net income increased and increased most sharply in 2013, then in the period 2013-2015, there was a downward trend. This fluctuation is due to the fact that fees collected from treasury services are often very low and can even be waived to attract customers to use other services.
2.2.1.3. Guarantee and trade finance services:
BIDV Tien Giang, thanks to the advantages of the province and the favorable location of the Branch, has continuously focused on developing income from guarantee services and trade finance.
Chart 2.5. Net income from guarantee and trade finance services in the period 2011-2015
Unit: Million VND
14000
12000
10000
8000
6000
4000
2000
0
5193 5695
2742 3420
8889
3992
11604 12206
5143 5312
2011 2012 2013 2014 2015
Net income from guarantee services Net income from Trade Finance
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.5, we can see that BIDV Tien Giang's income from guarantee services and trade finance has grown over the years. The reason is: Among BIDV Tien Giang's corporate customers, the construction industry is the industry with the highest proportion of customers after the trading industry, this is a group of customers with potential to develop guarantee services. The second group of customers is corporate customers in the fields of agricultural production, livestock and seafood processing with high import and export turnover in the area.
are the target of trade finance development. In addition, BIDV Tien Giang also focuses on continuously developing these customer groups to increase revenue for many other products and services in the future.
2.2.1.4. Card and POS services:
As a service that BIDV Tien Giang has recently developed strongly, it can be said that this is a very potential market and has the ability to develop even more strongly in the future. Card services with outstanding advantages such as fast payment time, wide payment range, quite safe, effective and suitable for the integration trend and the Project to promote non-cash payments in Vietnam. Cards have become a modern and popular payment tool. BIDV Tien Giang early identified that developing card services is to expand the market to people in society, create capital mobilized from card-opened accounts, contribute to diversifying banking activities, enhance the image of the bank, bring the BIDV Tien Giang brand to people as quickly and easily as possible. BIDV Tien Giang is currently providing card types such as: credit cards (BIDV MasterCard Platinum, BIDV Visa Gold Precious, BIDV Visa Manchester United, BIDV Visa Classic), international debit cards (BIDV Ready Card, BIDV Manu Debit Card), domestic debit cards (BIDV Harmony Card, BIDV eTrans Card, BIDV Moving Card, BIDV-Lingo Co-branded Card, BIDV-Co.opmart Co-branded Card). These cards can be paid via POS/EDC or on the ATM system. In addition, with debit cards, customers can not only withdraw money via ATMs but also perform utilities such as mobile top-up, online payment, money transfer,... through electronic banking services.
In order to attract customers with card services, BIDV Tien Giang has continuously increased the installation of ATMs. As of December 31, 2015, BIDV Tien Giang has 23 ATMs combined with 7 ATMs in the same system of BIDV My Tho, so the number of ATMs is quite large, especially in the center of My Tho City, but is not yet fully present in the districts. Basic services on ATMs such as withdrawing money, checking balances, printing short statements,... BIDV ATMs accept cards from banks in the system.
Banknetvn and Smartlink, cards branded by international card organizations Union Pay (CUP), VISA, MasterCard and cards of banks in the Asian Payment Network. From here, cardholders can make bill payments for themselves or others at ATMs, by simply entering the subscriber number or customer code, booking code that service providers notify and make bill payments.
Chart 2.6. Net income from card services in the period 2011-2015
Unit: Million VND
3500
3000
2500
2000
1500
1000
500
0
687
1023
1547
2267
3104
2011 2012 2013 2014 2015
Net income from card services
(Source: Report on the implementation of the annual business plan of the General Planning Department of BIDV Tien Giang [24])
Through chart 2.6, it can be seen that BIDV Tien Giang's card service income is constantly growing because the Branch focuses on developing businesses operating in industrial parks, which are the source of customers for salary payment products, ATMs, BSMS. Specifically, there are companies such as Freeview, Quang Viet, Dai Thanh, which are businesses with a large number of card openings at the Branch, contributing to the increase in card service fees [25].
Table 2.6. Number of ATMs and POS machines in 2015 of some banks in Tien Giang area.
Unit: Machine
STT
Bank name
Number of ATMs
Cumulative number of ATM cards
POS machine
1
BIDV Tien Giang
23
97,095
22
2
BIDV My Tho
7
21,325
0
3
Agribank Tien Giang
29
115,743
77
4
Vietinbank Tien Giang
16
100,052
54
5
Dong A Tien Giang
26
97,536
11
6
Sacombank Tien Giang
24
88,513
27
7
Vietcombank Tien Giang
15
61,607
96
8
Vietinbank - Tay Tien Giang Branch
6
46,042
38
(Source: 2015 Banking Activity Data Report of the General and Internal Control Department of the Provincial State Bank [21])
Through table 2.6, the author finds that the number of ATMs of BIDV Tien Giang is not much, ranking fourth after Agribank Tien Giang, Dong A Tien Giang, Sacombank Tien Giang. The number of POS machines of BIDV Tien Giang is very small, only higher than Dong A Tien Giang and BIDV My Tho in the initial stages of merging the BIDV system. Besides, BIDV Tien Giang has a high number of cards increasing over the years (table 2.7) but the cumulative number of cards issued up to December 31, 2015 is still relatively low compared to Agribank, Vietcombank, Dong A (table 2.6).
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Sales and Service Revenue (Code 01) -
Accounting for Sales and Service Revenue Deductions -
Completing the organization of accounting for revenue, sales costs and determining business results at Hai Phong Paint Joint Stock Company - 1 -
Ranking the Level of Impact of Factors on Financial Statements
Total
VND VND VND
Saigon Ha Long Hotel Tourism Joint Stock Company 49,051,000,000 7,112,388,160 56,163,388,160
Saigon Ninh Chu Tourism Joint Stock Company 41,693,915,922 (7,614,252,462) 34,079,663,460
Saigon Exhibition and Convention Joint Venture Company 126,882,536,820 12,802,212,982 139,684,749,802
Thang Long Hotel Joint Venture Company 66,262,000,000 (3,493,694,442) 62,768,305,558
Dak Lak Tourism Joint Stock Company 45,780,140,000 1,655,567,740 47,435,707,740
Saigon Phu Yen Tourism Joint Stock Company 27,300,000,000 (613,098,876) 26,686,901,124
Saigon Song Cau Joint Stock Company 600,000,000 499,922,582 1,099,922,582
357,569,592,742 10,349,045,684 367,918,638,426
33. SALES AND SERVICE REVENUE
Year 2010 VND | Year 2009 VND | ||
Total sales and service revenue | 3,520,007,506,925 | 2,910,825,729,165 | |
In there: | |||
+ Revenue from inbound tour services (*) | 540.124.669.797 | 446.767.570.345 | |
+ Outbound tour service revenue (**) | 368.624.062.988 | 257.325.970.140 | |
+ Revenue from domestic tour services | 346,652,645,771 | 247.231.660.734 | |
+ Airline ticket agency revenue | 55,163,759,178 | - | |
+ Transportation service revenue | 24,360,678,520 | 15,364,218,616 | |
+ Internal transportation revenue | 13,158,409,412 | 15,114,079,822 | |
+ Revenue from rental services | 100,042,029,178 | 110,927,812,969 | |
+ Revenue from renting out the cake | 1,856,943,716 | 1,895,910,785 | |
+ Merchandise revenue | 17,322,029,647 | 5,491,909,834 | |
+ Cake revenue (Dong Khanh Hotel) | 13,559,829,076 | 10,606,592,974 | |
+ Revenue from bedroom services | 499.007.381.128 | 391.015.879.518 | |
+ Food service revenue | 940.688.038.609 | 775.594.075.918 | |
+ Construction revenue | 4,254,193,031 | 3,948,992,726 | |
+ Electronic game services with prizes | 40,547,388,185 | 93.847.607.898 | |
+ Tuition collection | 38,309,573,750 | 25,428,946,649 | |
+ Exam fee | - | 794,834,000 | |
+ Student boarding fee | - | 316,695,437 | |
+ Other service revenue | 435.745.126.829 | 424,677,599,408 | |
+ Service fee revenue | 80.590.748.109 | 84,475,371,392 | |
Revenue deductions | 31,883,156,277 | 31,242,524,630 | |
+ Discount on sales | 11,463,195,563 | 33,637,868 | |
+ Returned goods | - | 7,677,077,523 | |
+ Special consumption tax | 20,419,960,714 | 23,531,809,239 | |
Net revenue from sales and supplies | 3,488,124,350,647 | 2,879,583,204,535 | |
service |
(*) Is a service to guide international tourists to visit Vietnam. (**) Is a service to guide Vietnamese tourists to visit foreign countries.
COST OF GOODS SOLD | Year 2010 | Year 2009 | ||
VND | VND | |||
Cost of goods sold | 9,966,038,225 | 3,139,851,756 | ||
Cost of services provided | 2,623,826,331,245 | 2,141,887,937,542 | ||
2,633,792,369,470 | 2,145,027,789,298 | |||
35. | FINANCIAL ACTIVITIES REVENUE | |||
Year 2010 VND | Year 2009 VND | |||
Interest on deposits and loans | 89,049,782,751 | 82.405.080.167 | ||
Interest on investments in bonds, promissory notes, and treasury bills | 440,372,223 | 4,589,784,645 | ||
Dividends, profits shared | 103,518,817,757 | 51.154.020.522 | ||
Realized and unrealized exchange rate gains | 27,717,600,237 | 16,423,523,907 | ||
Capital gains | 42,969,444,375 | 516.847.808 | ||
Provision reversal | 7,781,091,240 | - | ||
Post-investment interest support | 340,047,790 | - | ||
Other financial revenue | 332,901,232 | 426,751,641 | ||
272.150.057.605 | 155.516.008.689 | |||
36. | FINANCIAL COSTS | |||
Year 2010 VND | Year 2009 VND | |||
Interest expense | 1,795,298,349 | 1,746,943,903 |
Reversal of provision for diminution in value of long-term investments
Provision for investment depreciation
- (21,971,508,016)
long term Realized and unrealized exchange rate losses | 682,817,643 | 4,926,638,832 | |
Other financial costs | 472,991,102 | 24,727,632 | |
12,114,040,334 | (15,273,197,649) |
9,162,933,240 -
OTHER INCOME | ||||
Year 2010 | Year 2009 | |||
VND | VND | |||
Liquidation and sale of fixed assets | 2,077,576,117 | 5,028,343,320 | ||
Liquidation of tools and equipment | 603,977,272 | 171,363,619 | ||
Collect money for purchasing bidding documents | 47,500,000 | 21,500,000 | ||
Penalties for breach of contract | 616.256.919 | 541,794,366 | ||
Income from business cooperation | 974,022,669 | 1,451,920,174 | ||
Income from gifts, donations, support | 590,076,648 | 783,085,000 | ||
Income from supplier support | 376,391,599 | 799.061.201 | ||
New Land Investment Company Limited - Bingo loss compensation | 4,757,619,476 | 5,095,604,754 | ||
Revenue from compensation for fixed assets and construction works | 2,969,053,236 | 2,386,097,733 | ||
Difference in revaluation of joint venture assets | 2,511,922,400 | - | ||
Other income | 9,700,100,051 | 2,546,951,214 | ||
25,224,496,387 | 18,825,721,381 | |||
38. | OTHER EXPENSES | |||
Year 2010 | Year 2009 | |||
VND | VND | |||
Fixed asset liquidation costs | 153,835,433 | 95,826,407 | ||
Remaining value of liquidated assets | 81,742,005 | - | ||
Fines for breach of economic contracts | - | 74,051,117 | ||
Other costs | 5,530,793,087 | 1,231,839,835 | ||
5,766,370,525 | 1,401,717,359 | |||
39. CURRENT CORPORATE INCOME TAX EXPENSES
- Corporate income tax expense calculated on current year taxable income
- Adjust corporate income tax expenses of previous years into current income tax expenses
2010 2009
VND VND
163,952,164,762 146,979,571,070
- -
this year
Total current corporate income tax expense 163,952,164,762 146,979,571,070
onion
40. DEFERRED CORPORATE INCOME TAX EXPENSE
- Deferred corporate income tax expense arising from the reversal of deferred income tax assets
- Deferred corporate income tax arising from deductible temporary differences
2010 2009
VND VND
22,391,518,431 16,531,020,660
(1,396,095,827) (22,391,518,431)
Total deferred corporate income tax expense 20,995,422,604 (5,860,497,771)
41. PROFIT AFTER TAX OF MINORITY SHAREHOLDERS
2010 2009
VND VND
Phu Tho Tourism - Service - Trading Joint Stock Company - (108,810,233)
Saigon Ha Long Hotel Tourism Joint Stock Company 6,834,741,972 5,265,330,382
Saigon Ninh Chu Tourism Joint Stock Company (1,168,676,373) (1,194,267,946) Can Gio Urban Tourism Joint Stock Company - 6,319,456,330
Saigon Exhibition and Convention Joint Venture Company 13,916,085,186 14,570,989,306
Thang Long Hotel Joint Venture Company 711,758,978 (351,309,610)
Dak Lak Tourism Joint Stock Company 875,267,909 -
Saigon Phu Yen Tourism Joint Stock Company (303,186,566) -
Saigon Song Cau Joint Stock Company 179,554,694 -
21,045,545,800 24,501,388,229
42. PRODUCTION AND BUSINESS COSTS BY FACTOR
Year 2010 VND | Year 2009 VND | ||
Cost of raw materials | 560.148.299.895 | 314.228.198.330 | |
Labor costs | 464,089,961,979 | 475.677.411.034 | |
Fixed asset depreciation costs | 131.902.121.413 | 122,903,722,524 | |
Outsourcing service costs | 213.352.134.386 | 129.164.378.278 | |
Other expenses in cash | 1,584,779,652,008 | 1,374,585,894,721 | |
2,954,272,169,681 | 2,416,559,604,887 |
43. OTHER INFORMATION
43.1 TRANSACTIONS AND BALANCES WITH RELATED PARTIES
Related parties: Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial and operating decisions.
Accordingly, the related parties of Saigon Tourist Corporation presented in this Consolidated Financial Statement are the Joint Ventures and Associates of the Corporation. During the year, the transactions and balances of Saigon Tourist Corporation with related parties are as follows:
Related Party Transactions
2010 2009 VND VND | |
Revenue with related parties - Phu Tho Tourism Service Trading Joint Stock Company | 276,105,999 - |
- Saigon Inn Hotel Joint Venture Company | 841,090,398 - |
- Yasaka Saigon Nha Trang Joint Stock Company | 419,141,709 - |
- Saigontourist Cable Television Company | 4,986,205,096 - |
- Thang Long Hotel Joint Venture Company | - 9,168,500 |
- Chains Caravelle Hotel Limited Liability Company | - 41,453,455 |
- Saigon Can Tho Hotel Company Limited | - 103,977,400 |
- Saigon Phu Quoc Tourism Joint Stock Company | 6,318,182 54,140,920 |
- Saigon Kim Lien Joint Stock Company | - 27,450,000 |
- Saigon Mui Ne Hotel Joint Stock Company | - 2,022,674 |
- Saigon Bong Sen Trading and Service Joint Stock Company | - 3,683,658,898 |
- Saigon Quang Binh Tourism Joint Stock Company | - 45,450,000 |
- Lotus Joint Stock Company | - 1,304,284,801 |
- Saigontourist Transport Joint Stock Company | 949,753,509 987,100,799 |
- Saigontourist Import Export Joint Stock Company | 1,499,026,687 3,923,099,128 |
- Cho Lon Tourism Service Joint Stock Company | 42,252,500 56,492,887 |
- Saigon Dong Ha Tourism Joint Stock Company | - 7,522,857 |
- Saigon Sovico-Phu Quoc Joint Stock Company | - 72,558,761 |
- Tan Dinh Tourism Service Joint Stock Company | - 273,058,485 |
- Saigon M&C Real Estate Joint Stock Company | 2,585,648,199 2,605,090,909 |
11,605,542,279 13,196,530,474 |
Related Party Transactions (continued)
2010 2009 VND VND | |
Cost of goods sold | |
- Saigon Binh Chau Tourism Joint Stock Company | 809.113.215 - |
- Saigon Mui Ne Hotel Tourism Joint Stock Company | 1,175,544,403 - |
- Saigon Quy Nhon Tourism Joint Stock Company | 149,731,586 - |
- Saigon Dalat Joint Stock Company | 220,418,735 - |
- Saigon Quang Binh Tourism Joint Stock Company | 276,452,115 - |
- Cho Lon Tourism Service Joint Stock Company | 152,805,000 - |
- Saigon Inn Hotel Joint Venture Company | 2,096,008,151 - |
- Chains Caravel Hotel Joint Venture Company Limited | 2,941,588,217 - |
- Yasaka Saigon-Nha Trang Company | 5,369,199,951 1,172,158,142 |
- Morrin Saigon Hue Company Limited | 141,714,284 166,344,398 |
- Saigontourist Cable Television Company | 28,154,000 80,360,280 |
- Saigon Phu Quoc Tourism Joint Stock Company | 8,147,832,827 493,552,070 |
- Saigon Bong Sen Trading and Service Joint Stock Company | - 850,000 |
- Saigontourist Transport Joint Stock Company | 347,641,227 76,475,395 |
- Saigontourist Import Export Joint Stock Company | 8,137,158,783 2,675,026,241 |
- Tan Son Joint Stock Company | - 379,504,662 |
- Saigon Grival Joint Stock Company | - 663,974,815 |
- Saigontourist Design & Construction Joint Stock Company | - 316,543,008 |
29,993,362,494 6,024,789,011 | |
Balance with related parties | |
12/31/2010 01/01/2010 | |
VND VND | |
Accounts Receivable | |
- Yasaka Saigon Nha Trang Joint Stock Company | - 55,282,122 |
- Saigon Phu Quoc Tourism Joint Stock Company | 55,703,500 2,000,000 |
- Saigontourist Transport Joint Stock Company | 62,868,002 359,756,311 |
- Saigon Dong Ha Tourism Joint Stock Company | 14,069,000 - |
- Saigon Inn Hotel Joint Venture Company | 107,418,750 - |
- Cho Lon Tourism Service Joint Stock Company | - 2,775,000 |
- Tan Dinh Tourism Joint Stock Company | - 4,162,500 |
- Thu Duc Tourism Service Joint Stock Company | - 236,723,341 |
- Saigon Ha Long Hotel Joint Stock Company | - 12,793,550 |
- Saigon - Ninh Chu Tourism Joint Stock Company | - 12,862,500 |
- Can Gio Urban Tourism Joint Stock Company | - 3,932,500 |
- Sai Gon Morin Hue Company Limited | - 18,259,593 |
- Saigon Phu Quoc Tourism Joint Stock Company | - 2,000,000 |
- Saigon Import Export Joint Stock Company | - 142,650,545 |
- Saigon M&C Real Estate Joint Stock Company | 72,130,920,000 68,358,812,500 |
72,370,979,252 69,212,010,462
(These notes are an integral part of and should be read in conjunction with the accompanying Consolidated Financial Statements)
OTHER INFORMATION (CONTINUED) | ||
43.1 | TRANSACTIONS AND BALANCES WITH RELATED PARTIES (CONTINUED) | |
Balance with related parties (continued) | ||
12/31/2010 01/01/2010 VND VND | ||
Accounts Payable - Yasaka Saigon Nha Trang Joint Stock Company | 362.365.683 - | |
- Saigon Tourist Television Company | - 57,234,794 | |
- Saigon Hotel Joint Stock Company | - 1,109,300 | |
- Saigon Tourist Transport Joint Stock Company | - 728,000 | |
- Saigontourist Import Export Joint Stock Company | 711,159,902 491,141,736 | |
- Saigontourist Design & Construction Joint Stock Company | - 316,543,008 | |
- Tan Son Joint Stock Company | - 42,308,565 | |
- Sai Gon Grival Joint Stock Company | - 84,231,000 | |
- Saigon Inn Hotel Company | - 335,617,610 | |
- Saigon Hotel Joint Stock Company | - 666,563,736 | |
- Lotus Joint Stock Company | - 1,117,380,104 | |
- Phu My Hung Joint Venture Company | 78.368.125.134 64.001.438.618 |
79,460,856,804 67,127,618,317
43.2 COMPARATIVE DATA
Comparative figures are figures on the audited 2009 Consolidated Financial Statements of the Corporation, reclassified to suit comparison purposes.
Nguyen Huu Tho General Director
Ho Chi Minh City, April 15, 2011
Vo Ngoc Xuan Chief Accountant |
AUDITED AND UNAUDITED
TT
Company | Auditing firm | |
A | Subsidiaries | |
1 | Phu Tho Tourism Service Company Limited | UHY Auditing and Consulting Services Co., Ltd. |
2 | Thu Duc Tourism Services Company Limited | UHY Auditing and Consulting Services Co., Ltd. |
3 | Saigon - Ha Long Hotel Tourism Joint Stock Company | Vietnam Auditing and Valuation Company Limited |
4 | Saigon - Ninh Chu Hotel Joint Stock Company | Not audited |
5 | Saigon Exhibition and Convention Joint Venture Company | UHY Auditing and Consulting Services Co., Ltd. |
6 | Thang Long Hotel Joint Venture Company | Auditing and Consulting Services Company Limited |
UHY | ||
7 | Dak Lak Tourism Joint Stock Company | BDO Vietnam Company Limited |
8 | Saigon Phu Yen Tourism Joint Stock Company | Phan Dung Auditing & Consulting Company Limited |
9 | Saigon Song Cau Joint Stock Company | Not audited |
B | Joint ventures and associates | |
1 | Saigon Inn Hotel Joint Stock Company | Not audited |
2 | Chains Caravelle Hotel Limited Liability Company | Ernst & Young LLC |
3 | Hoa Viet Joint Venture Company Limited | A&C Auditing & Consulting Company Limited |
4 | Dai An Housing Development Company Limited - Saigontourist | Not audited |
5 | Saigon Hotel Company Limited | Not audited |
6 | Saigon Morin Hue Company Limited | AISC Auditing & Informatics Services Company Limited |
7 | Saigon Can Tho Tourism and Trade Company Limited | Not audited |
8 | Saigon Tourist Cable Television Company Limited | Sai Gon Auditing & IT Services Company Limited |
(AIFC) | ||
9 | Saigon Binh Chau Tourism Joint Stock Company | Tam Viet Auditing Company Limited |
10 | Saigon Phu Quoc Joint Stock Company | UHY Auditing and Consulting Services Co., Ltd. |
11 | Saigon Tourane Hotel Joint Stock Company | PKF Vietnam Auditing Company Limited |
12 | Saigon Kim Lien Joint Stock Company | UHY Auditing and Consulting Services Co., Ltd. |
13 | Saigon Mui Ne Hotel Tourism Joint Stock Company | Tam Viet Auditing Company Limited |
14 | Sai Gon Bong Sen Trading and Service Joint Stock Company | AISC Auditing & Informatics Services Company Limited |
15 | Saigon Quy Nhon Tourism Joint Stock Company | UHY Auditing and Consulting Services Co., Ltd. |
16 | Saigon - Dalat Joint Stock Company | DTL Auditing Company Limited |
17 | Saigon Vinh Long Tourism Joint Stock Company | Not audited |