HO CHI MINH CITY DEVELOPMENTCOMMERCIAL BANK

Ho Chi Minh City DevelopmentCommercial Bank

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Ho Chi Minh City DevelopmentCommercial Bank : Separate financial statements - second quarter 2025

Published on 07/30/2025 at 11:34 am BST

Publicnow

Ho Chi Minh City DevelopmentCommercial Bank

-3.72%

HDBank'

Com bit la› ich coo nhdt

HO CHI MINH CITY DEVELOPMENT JOINT STOCK CO3JiMERClAL BANK

SEPARATE FINANCIAL STATEMENTS FOR THE SECOND QUARTER OF 2025

For the period from 1 January 2025 to 30 June 2025

TABLE OP CONTENTS

Pages

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

Notes to the separate financial statements

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

1 - 3

5 - 6

7 - 50

SEPARATE STATEMENT OF FINANCIAL POSITION

as at 30 June 2025

Form B02a/TCTD (issued under Circular No.

27/2021/TT- NHNN dated 31/12/2021)

31 December

	Notes	30 June 2025 VND million	2024 /ND million
ASSETS
Cash and gold		3,944,641	3,105,342
Balances with the State Bank of Vietnam		9,501,085	26,502,360
Due from and loans to other credit institutions		134,754,740	106,673,177
Due from other credit institutions		124,308,374	94,198,824
Loans to other credit institutions		10,446,366	12,474,353
Provision for loans to other credit institutions {")
Securities held for trading	V.01	2,411,264	21,955,775
Securities held for trading		2,411,264	21,955,775
Provision for securities held for trading (*)
Derivatives and other financia! assets	V.02	105,173	36,973
Loans to customers Loans to customers	V.03	484,597,838 489,942,667	419,084,918 424,272,721
Provision for credit losses of loans to customers (*)	V.04	(5,344,829)	(5,187,803)

Purchased debts Purchased debts

Provision for credit losses of purchased debts (')

Investment securities	V.05	71,362,330	48,751,284
Available-for-sale securities		67,243,887	31,407,524
Held-to-maturity securities		4,231,266	17,436,610
Provision for investment securities (*)		(112,823)	(92,850)
Long-term investments	V.06	1,990,887	2,000,807
investments in subsidiaries		1,214,688	1,214,688
Investments in joint ventures
Investments in associates		658,075	658,075
Other long-term investments		125,666	146,546
Provision for long-term investments (*)		(7,542)	(18,502)
Fixed assets		1,731,679	1,736,698
Tangible fixed assets		866,325	861,092
Cost		1,955,251	1,881,349
Accumulated depreciation {")		(1,088,926)	(1,020,257)
Finance leases
Cost
Accumulated depreciation (*)
Intangible fixed assets		8dJ,354	875,606
Cost		1,28:2,701	1,250,474
Accumulated amortisation (')		(417,347)	(374,868)
Investment properties
Cost
Accumulated depreciation (")
Other assets		58,170,433	55,128,234
Receivables		49,951,750	48,166,441
interest and fees receivable Deferred corporate income tax assets	V122	6,610,980 83,309	5,270,744 155,916
Other assets		1,571,493	1,582,059
In which. Goodwill
Provision for other assets (*)		47 099)	{46,926)
TOTAL ASSETS		768,570,	684,975,568

SEPARATE STATEMENT OF FINANCIAL POSITION

as at 30 June 2025

Form B02a/TCTD (issued under Circular No.

27/2021/TT- NHHN dated 31/12/2021)

LIABILITIES

Notes

30 June 31 December

202J 2024

VND million VND million

Debts to the Government and State Bank

Due to and borrowings from the Government and the State Bank of Vietnam

V.07

9,952

15,434

Transactions for the sale and repurchase of Government bonds with the State Treasury
Due to and borrowings from other credit
institutions	V.08	95,749,721	97,367,831
Due to other credit institutions		75,720,793	75,610,753
Borrowings from other credit institutions		20,028,928	21,757,078
Due to customers	V.09	478,700,229	437,505,165
Derivatives and other financial liabiiities	V.02
Grants, entrusted funds and loans exposed to
risks		2,787,202	2,788,443
Valuabie papers issued	V.10. 13.2	77,041,176	75,559,744
Other liabilities	V.11	53,504,276	18,270,981
interests and fees payable		11,270,247	7,868,597
Deferred corporate income tax liabilities	V.12.2
Other payables		42,234,029	10,402.384
Other provision {for contingent liabilities and off-
balance sheet commitments)
TOTAL LIABILITIES		707,792,556	631,507,598
OWNERS' EQUITY
Capital		35,224,020	35,224,020
Charter capital		35,101,423	35,101,423
Fund for capital expenditure		89	89
Share premium		535,956	535,956
Treasury shares (*)		(413,448)	(413,448)
Preference shares
Other owners' capital
Reserves		8,326,949	5,828,283
Foreign exchange differences		(26,977)
Asset revaluation differences
Retained earnings		17,253,522	2,415,667
Non-controlling interest
YOTAL OWNERS' EQUITY	V.13.1	60,777,S44	53,467,970
TOTAL LIABILITIES, OWNERS' EQUITY AND HON-COXTROL INTERESTS	768,570,070 684,975,568

SEPARATE STATEMENT OF FTNANCTAL POStTlON

as at 30 June 2025

Form B02a/TCTD (issued under Circular No.

27/2021/TT- NHNN dated 31/12/2021)

OFF-BALANCE SHEET ITEMS
			30 June 2025	31 December 2024
		Notes	VND million	V/VD million
Credit guarantees			9,045	808,743
Foreign exchange commitments			296,888,865	196,023,792
Spot foreign exchange commitments - buy			4,284,979	6,816,84 7
Spot foreign exchange commitments - sell			4,395,882	8,977,349
- Cross currency swap contracts Fulure co /rac/s irrevocable lending commitments Letters of credit			288, 208,004 49,598,763	J80, 229,596 46,476,948
Other guarantees			27,266,669	24,924.802
Other commitments Interest income and fee receivables not collected	yet		12,289,542 956,332	10,891,982 969,215
Bad debts written-off			9.547,360	5,079,344
Other assets and documents			48,647,830	47 589,161
Totat			445,204,406	332,763,987

Prepared by: Reviewed by

"Ms. Huynh Thi Nga Ms. Ho Dang Hoang Q u'/en " Mr. Pham Van Accountant Chief Accountant -^ '_ Chief Financial

Ho Chi Minh City, Vietnam 30 July 2025

SEPARATE STATEMENT OF PROFIT OR LOSS

for the period from 1 January 2025 to 30 June 2025

Form B04a/TCTD (issued under Circular No.

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

Accumulate form 1st Second quarter January to end of period Current Previous Current Previous

period period period period Notes VND million AND million /ND million VND million

Interest and similar income	VI.14	16,404,003	12,745,248	29,860,387	25,638,302
interest and similar expenses	VT,15	8 008 629	(6,365,826)	874	13 396 58
Net interest and similar income		8,395,374	6,379,422	14,401,513	12,241,544
See and commission income		1,635,638	641,939	2,587,240	933,219
Fee and commission expenses		(541,406)	650554	984 432	805 419
Net fee and commission income		1,094,232	(8,615)	1,602,808	127,800
Net gain from trading of foreign
currencies		428,663	303,995	638,334	481,091
Net gain/(loss) from securities
hetd for trading	VI.16	241,355	{279)	630,635	(78,943)
Net (loss)/gain from investment
securities	VI.17	19,526	(49,917)	2,782	15,434
Other operating income		(270,247)	40,775	212,205	79,004
Other operating expenses		(59,971)	(51,503)	(140,462)	(85,470)
Net gain from other operating
activities		(330,218)	(10,728)	71,743	(6,466)
Income from investments in
other entities	VI.18	4,896		4,896
Operating expenses	VI.19	2 5 695	(2,445,152)	(4,072,759)	3 8 3 3
Net operating profit before
provision for credit losses		7,678,133	4,168,726	13,279,952	8,452,157
Provision expenses for credit
losses		(3,436,092)	(374,003)	4 012 3 3	888 250)
Profit before tax		4,242,041	3,794,723'	9,267,649	7,563,907
Current corporate	income tax
expense		(934,752)	{811,107)	(1,820,868)	(1,567,652)
Deferred corporate	income tax
expense		(21,582)	(5,687)	{72,607)	(11,953)
Corporate income tax
expenses	(956,134)		(816,794)	(1,893,475)	(1,579,605)
Profit after tax	3,285,907 2,977,92			7,374,174	5,984,302

Prepared by; Reviewed by. /

Ms. Huynh Thi Nga Ms. Ho Dang Hoang Quyen Mr. Pham Van Accountant Chief Accountant Chief Financial

Ho Chi Minh City, Vietnam 30 July 2025

SEPARATE GASH FLOW STATEMENT

for the period from January 2025 to 30 June 2025

Form B04a/TCTD

{issued under Circular No. 27/2021/TT-NHNN dated 31 December 2021)

	Notes	Current period VND million	Previous period VND million
Cash flows from operating activities Interest income and similar receipts		28,515,175	24,883,587
Interest expenses and similar payments		(12,128,462)	(16,134,891)
Net fee and commission receipts Net receipts from trading of securities, gold and foreign currencies		1,479,163 1,342,411	350,789 910,209
Other income		30,367	(16,231)
Recoveries from bad debts written-off previously Payments to employees and other operating expenses		94,568 (4,560,409)	74,915 (3,916,344)
Corporate income tax paid during the period	V.12.1	(1,749,616)	(2,526,237)
Net cash flows from operating profit before
changes in operating assets and liabilities		13,023,197	3,625,797
Changes in operating assets (increase)/decrease in due from and loans to other credit institutions		2,027,987	(1,421,379)
(Increase)/decrease in trading securities (Increase)/decrease in derivatives and other financial assets		(16,326,016) (68,200)	9,996,806 (340,778)
(Increase)/decrease in loans to customers Utilization of prOVision to write-off loans to customers, securities and long-term investments		(65,669,946) (3,864,277)	(41,929,996) (236,740)
(increase)/decrease in other assets		(1,660,766)	{3,862,296)
Changes in operating /ia6i//r/es increase/(decrease) in due to Government and the State Bank of Vietnam		(5,482)	(5,612)
Increase/(decrease) in due to and borrowings
from other credit institutions		{1,618,110)	7,957,071
Increase/(decrease) in due to customers		41,195,064	15,795,455
Increase/(decrease)in valuable papers issued Increase/(decrease) in grants, entrusted funds and loans exposed to risks		1,481,432 (1,241)	{6,485,492) 45,349
increase/(decrease) in derivatives and other financial liabilities increase/(decrease) in other liabilities		32,313,459	2,893,936
Utilization of funds		(17.652)	('.,493;
Net cash used in operating activities 809,449			{13,969,372)

SEPARATE CASH FLOW STATEMENT

for the period from 1 January 2025 to 30 June 2025

Form B04a/TCTD (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 million

Purchase ol fixed assets

Proceeds from disposal of fixed assets Payment for disposal of fixed assets Purchase of investment properties

Proceeds from disposal of investments in other entities Dividends received from long-term investments		20,880 4,896	14,375
Net cash from investing activities		(84.898)	(841,519)
Cash flows from financing activities
Increase in charter capital from capital contribution
and share issuance
Proceeds from 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 distributed to shareholders
Purchase of treasury shares
Proceeds from disposal of treasury shares
Net cash from financing activities
Net cash flows for the period		724,551	(14,810,891)
Cash and cash equivalents at the beginning of
the period	137,056,526		132,186,715
Foreign exchange difference	(26,977)		(28,143)
Cash and cash equivalents at the end of the

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

(1'I0,674)

(199,050)

795

(657,639)

period Prepared by:

137,754,100 117,347,681

Reviewed by.

HDBani

Ms Huynh Thi Vga Ms. Ho Dang Hoang 0 u'/en Mr. Pham Van U'

Accountant Chief .Pccountar-l " :' Chief Financial Oilier . . y

Ho Chi Minh City, Vietnam 30 July 2025

NOTES TO THE SEPARATE FINANCIAL STATEMENT

for the period from 1 January 2025 to 30 June 2025

Form B05a/TCTD

{issued under Circular No.

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

GENERAL INFORMATION

Establishment and Operations, Term of operation

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

The Bank was established and operates in accordance with Decision No. 47/QD-UB issued by 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 Vietnam {"the SBV") on 6 June 1992 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 long-term deposits from organizations and individuals; making short, 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; settiement services and other banking services as allowed by the SBV.

Gharter capital
The charter capital of the Bank as at 30 June 2025 is VND35,101,423 million (as at 31 December 2024: VND35,101,423 million).
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;

/lame Position

Oate of appointment/

re-appointment/Resignation

Mr. Kim ByoungHo

Chairman, independent Member

Appointment on 29 April 2022

Ms. Nguyen Thi Phuong Thao Standing Vice

Chairwoman

Re-appointment on 29 April 2022

Mr. Luu Duc Khanh Mr. Nguyen Thanh Do Mr. Nguyen Huu Dang Mr Pham Q‹›oc Thanh Mr. Le Manh Dung

Vice Chairman Re-appointment on 29 April 2022 Vice Chairman Re-appointment on 29 April 2022 Vice Chairman Resignation on 08 January 2025 Vice Chairman Appointment on 13 May 2025 independent Member Appointment on 29 April 2022

NOTES TO THE SEPARATE FINANCIAL STATEMENT

for the period from 1 January 2025 to 30 June 2025

Form B05a/TCTD (issued under Circular No.

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

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:

Date of appointment/re-

Name Position

Mr. Nguyen Huu Dang General Director

Mr. Pham Quoc Thanh Acting General Director Mr Nguyen Minh Due Deputy General Director Mr. Le Thanh Tung Deputy General Director Mr. Nguyen Van Hao Deputy General Director Mr. Nguyen Dang Thanh Deputy General Director Mr. Tran Hoai Nam Standing Deputy General

Director

Mr. Tran Thai Hoa Deputy General Director Mr. Nguyen Canh Vinh Deputy General Director

Mr. Tran Xuan Huy Deputy General Director Mr. Pham Van Dau Chief Financial Officer Ms. No Dang Hoang Chief Accountant Quyen

Operation network
appointment/ Resignation
Appointed on 13 May 2025
Resignation on 13 May 2025
Re-appointed on 1 August 2022
Resignation on 01 June 2025
Re-appointed on 2 October 2023
Resignation on 01 June 2025
Re-appointed on 27 February 2025
Re-appointed on 26 May 2024
Resignation on 06 June 2025
Resignation on 15 January 2025
Appointed on 16 September 2009
Appointed on 7 Juty 2011
The Bank's Head Office is located at HD Tower, 25 Bis Nguyen The Minh Khai Street, Ben Nghe Ward, District 1, Ho Chi Minh City. As at 30 June 2025, the Bank had one (1) Head Office, one (1) representative office in the North; one (1) representative office in Myanmaf, eighty-seven {87) branches and two hundred and eighty-eight (288) transaction offices located in cities and provinces throughout Vietnam.
Subsidiary
As at 30 June 2025, the Bank had two {2) subsidiary;
Subsidiary
HD SAISON Finance Co. , Ltd. ("HD SAISON"),
previously known as Ho Chi Minh City Development Joint Stock Commercial Bank Finance Co., Ltd.
Vikki Digital Bank Limited (Vikki Bank) (*)
Operating License //o.

0304990133 dated 13 July 200a issued by Ho Ghi Minh city Department of Planning and Investment, amended for sixteenth (16) time on 20 June
2022.
Decision No. 0009/NH-CP dated
27 March 1992 issued by the State Bank of Vietnam ("the SBV"). Enterprise code: 0301442379, first registered on 8 April 1992, issued by Ho Chi Minh city Department of Planning and Investment.
Nature of Ownership business of the Bank
Finance/ 50% Banking
I
i
Finance/ 100% Banking
I
NOTES TO THE SEPARATE FINANCIAL STATEMENT
for the period from 1 January 2025 to 30 June 2025
Form B05aJCTD (issued under Circular No.
27/2021/TT-NHNN dated 31 December 2021)
{*) On 17 January 2025, the State Bank of Vietnam ("the SBV") announced Decision No. 116/QO-NHNN of Governor of SBV regarding the mandatory transfer of Dong A Commercial Joint Stock Bank to the Bank. After the mandatory transfer, Dong A Commercial Joint Stock Bank operates as a single-member limited liability company owned by the Bank, under the name Dong A One-Member Limited Liability Bank and was renamed to Vikki Digital Bank Limited according to Decision No. 42/QD-TTGSNH2 dated 14 February 2025.
In addition, according to Point C, Clause 1, Article 185 of the Law on Credit Institutions No. 32/2024/QH15 dated 18 January 2024, the Bank is not required to consolidate the financial statements of the mandatory transferred commercial bank. Accordingly, the Bank's consolidated financial statements for the period ended 30 June 2025 include the Bank and its subsidiaries, excluding Vikki Bank.

Emp/oyees

The Bank's total number of employees as at 30 June 2025 was 10,577 persons (as at 31 December 2024 was 10,592 persons).

11 AGC0UNT1NG PERIOD AND AGC0UNT)NGCURRENCY

Accounting period
The Bank's fiscal year starts on 1 January and ends on 31 December.
The first quarter accounting period applicable for the presentation of separate financial statements of the Bank starts on 1 April and ends on 30 June.
Accounting currency

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

Ill.

APPLIED ACCOUXTING STANDARDS AND SYSTEM

Statement of compliance

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

Basis of'preparation separate financial statement

The separate financial statements have been prepared i › accurdai›ce with Vietnamese Accounting Standards, Vietnamese Accounting System for Credit institutions and other statutory requirements relevant to preparation and presentation of the separate financial statements applicable to credit institutions operating in Vietnam. The separate financial statements have been prepared under the historical cost convention.

The accompanying separate financial statements are not intended to present the separate financial position and separate results of operations and separate cash flows in accordance with accounting principles and practices generally accepted in 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.

Separately, the Bank lfas also prepared consolidated financial statements of the Bank and its subsidiary, in accordance with Vietnamese Accounting Standards, Vietnamese Accounting System and applicable regulations on preparation and presentation of consolidated financial

NOTES TO THE SEPARATE FINANCIAL STATEMENT

for the period from 1 January 2025 to 30 June 2025

Form B05a/TCTD (issued under Circular No.

27/2021/TT-NHNN dated 31 December 2021) statements. In the consolidated financial statements, subsidiary undertakings, which are those companies over which the Bank has the power to govern the financial and operating policies, have been fully consolidated.

Users of these separate financial statements of the Bank should read them together with the consolidated financial statements of the Bank and its subsidiary for the period ended 30 June 2025 in order to obtain full information of the consolidated financial position, consolidated results of operations and consolidated cash flows of the Bank and its subsidiary.

Assumptions and uses of esf/mafes

The preparation of the separate financial statements is in accordance with Vietnamese Accounting Standards, Vietnamese Accounting System and applicable regulations on preparation and presentation of separate 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 period.

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

Classification and provision for credit losses of loans to customers,

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

IV. SUMMARY OF SIGNIFfCAHY ACCOUNTING POLICIES

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 separate statement of financial position at month end and transferred to the separate income statement at year end.

2. Derivatives and hedging accounting

Derivatives are recognised in the separate statement of financial position at contract value on the contract date and subsequently are revalued at the rate of exchange prevailing at the month end. Realised gains or losses are recognised in the separate income statement. Unrealised gains or losses are recognised in the foreign exchange differences item in the separate statement of financial position at the month end and are transferred to the income statement at the year end.

income and expenses recognition Interest income

Interest income is recognised in the separate income statement on an accrual basis, over time and at effective interest rate for each period when two conditions are simultaneously satisfied: (i) it is probable that the economic benefits associated with the transaction will flow to the Bank; and (ii) the amount of 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 of Circular 03/2021, Circular 14/2021 or the application of Circular 02/2023 and Circular 06/2024, interest income from these loans is recognised in the separate income statement upon receipts.

NOTES TO THE SEPARATE FINANCIAL STATEMENT

for the period from 1 January 2025 to 30 June 2025

Form B05a/TCTD (issued under C›rcutar No.

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

Offer 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 with credit activities. which is recognised when the completion of the work as per the agreed-upon work under the contract/agreement can be reliably determined at the date of preparation of the separate 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 separate income statement when the services rendered, by reference to completion of the specific transaction assessed on the basis of the actual service provided as a proportion of the total services to be provided. Fee and commission income is only recognised when all four (4) of the following conditions are satisfied:

The amount of income 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 financtal position date can be measured reliably, and

The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

Income from investing activities

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

Dividend income

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 reltabty. Stock dividends and bonus shares received are not recognised as income of the Bank, but only the number of shares is updated.

Other income

Other income is recognised on an accrual basis, by reference to completion level of services.

According to Circular 16/2018/TT-BTC dated 7 February 2018 issued by the Ministry of Finance, receivables which have been accounted as income but then are assessed as uncollectible or can not be collected by due date, the Bank shall revert such income if it is tn the same financial year, or recognise as an expense if it is not in the same financial year and monitor these receivables in off-statement of financial position items for subsequent collection. The Bank shall recognise these receivables as income in the separate income statement upon receipt.

lnleresl expen:ses

interest expenses are recognised in the separate income statement on an accrual basis.

NOTES TO THE SEPARATE FtMANClAL STATEMENT

for the period from 1 January 2025 to 30 June 2025

form B05a/TCTD (issued under Circular No.

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

Acccounting for loans to customers and purchased r/e6rs

Accounting /'or 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-tefm loans have term of one to five years from the date of disbursement. Long-term loans are loans with term of over 5 years from the date of disbursement.

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

According to the Law on Credit Institutions No. 32/2024/QH15 issued by the National Assembly on 18 January 2024 and Circular 21/2024/TT-NHNN issued by SBV on 28 June 2024 regulating letters of credit ("L/C") operations and other business 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 negotiation and repayment of L/C. The Bank has made appropriate accounting recognition in accordance with these regulations.

Classification of loans to customers

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

-rom 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:

Classification of loans using the quantitative method
Group 1: Current loans
1. Current loans are assessed as fully and timely recoverable for both principals and interests; or
2. Loans are overdue for a period of less than 10 days and assessed as fully recoverable for both overdue principals and interests, and fully and timely recoverable for both remaining principals and interests; or
3. Loans classified into group 1 as meeting criteria to be classified into groups with lower level of risk.
  Group 2. Special mentioned loans
  1. Luans a‹e uveidue up to 90 days; except those specified in point (ii) of Current loans and those classified into a 9roup with higher level of risk as prescribed; or
  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 into a group with higher level of risk as prescribed.
  3. Loans classified into group 2 as meeting criteria to be classified into a group with lower level of risk or loans classified into group with higher level of risk as prescribed.
  Group 3: Sub-standard loans
  1. Loans overdue between 91 days and 180 days, except those classified into a group with higher level of risk as prescribed by regulations; or
  (it) Loans are extended for the first time and repaid on schedule, except those meeting criteria to be classified into a group with lower level of risk and or loans classified into a group with higher level of risk as prescribed by regulations, or
  
  NOTES TO THE SEPARATE FINANCIAL STATEMENT
  for the period from 1 January 2025 to 30 June 2025
  Form B05a/TCTD (issued under Circular No.
  27/2021/TT-NHNN dated 31 December 2021)
  1. 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
  2. Loans falling in one of these following cases that have not yet been collected within less than 30 days from the issuance date of debt collection decision:
    - Loans violating regulations specified in clauses 1, 3, 4, 5, 6 of Article 134 of Law on Credit institutions No. 32/2024/QH 15 (from 1 July 2024) or according to clauses 1, 3, 4, 5, 6 of Article 126 of Law on Credit institutions No. 47/2010/QH12 (before 1 July 20Z4); or
    - Loans vioToting regulations specified in clauses 1, 2, 3, 4 of Article 135 of Law on credit institutions No. 32/2024/QH1S (from 1 July 2024) or according to clauses 1, 2, 3, 4 of Article 127 of Law on credit institutions No, 47/2010/QH12 (before 1 July
      2024); or
      Loans violating regulations specified in clauses 1, 2, 5, 9 of Article 136 of Law on credit institutions No. 32/2024/QH15 (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)
  3. Loans in the collection process under inspection conclusions, or
  4. Loans collected under premature debt collection decisions by the Bank due to customers' breach of agreements without being collected within less than 30 days from the issuance date of debt collection decision; or
  5. Loans are classified into group 3 as meeting criteria to be classified into a group with lower level of risk or loans classified into a group with higher level of risk as prescribed by regulations; or
  (vii ) Loans must be classified into group 3 according to requirements of SBV due to risk level of the loan based on the results of inspection, supervision, and relevant credit information.
  Group 4. Doubtful toaiss
  1. Loans overdue between 181 days to 360 days, except those classified into a group with h 9her 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 restructured payment term, except those classified into a 9roup with higher level of 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 tower 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 remain uncollected for a period of 30 to 60 days from the issuance date of debt collection decision, or
  5. Loans in the collection process under inspection conclusions but being overdue up to 60 days according to inspection conclusions; or
  6. Loans recovered under pfemature debt collection decisions of the Bank due to customers violating the agreement which remain uncollected for a period of 30 to 60 days from the issuance date of debt collection decisions; or
  7. Loans that are classified into group 4 as 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
  8. Loans that are classified into group 4 according to requirements of SBV due to risk level of the loan based on the results of inspection, supervision, and relevant credit information.
  NOTES TO THE SEPARATE FINANCIAL STATEMENT
  for the period from 1 January 2025 to 30 June 2025
  Form B05a/TCTD (issued under Circular No.
  Group 5: Loss loans
  1. Loans overdue more than 360 days, or
    27/2021/TT-NHNN dated 31 December 2021)
  2. Loans are restructured for the first time and overdue from 91 days according to 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 group 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. Loans 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 due to customers violating the agreement which remain uncollected for more than 60 days from the issuance date of debt collection decis on; or
  8. Loans to other credit institutions announced under special control status, or to 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 group 5 according to requirements of SBV due to risk level of the loan based on the results of inspection, supervision, and relevant credit information.
Classification of loans using the qualitative method
1. Group 1 (Curient loans), including: Loans of which both principal and interest are rated by the bank or non-bank credit institution to be recoverable in full by due dates.
2. Group 2 {Special mentioned loans), including. Loans with the principal and interest that are likely to be recovered in full, but customers showing signs of decrease in ability to pay according to the evaluation of the bank or non-bank credit institution.
  Group 3 (Sub-standard loans), including: Loans with the principal and interest that are unlikely to be recovered by due dates according to the evaluation of the bank or non-bank credit institution. These loans are rated by the bank or non-bank credit Institution as those likely to cause loss.
  1. Group 4 (Doubtful loans), including: Loans which are rated by the bank or non-bank credit institution as those posing high risk of causing loss.
  2. Group S (Loss loans), including: Loans which are rated by the bank or non-bank credit institution as those unlikely to be recovered and posing risk of causing loss.

Loans shall be classified in a group with lower level of risk (incIudi'ng Group 1) in these

/o//owi'ng cases:

Overdue loans,

Customers fully paid overdue principal and interest (including interest on overdue principals) and principals, interest of following payment schedules (if any) for at least 3 (three) months in respect of medium and long-term loans and 1 (one) month in respect of short-term loans since the date overdue principals and interest are fully repaid: and

The Bank has sufficient basis of information and documents to assess and conclude that customers are capable of fully repaying principals and interest in a timely manner.

Restructured loans

Customers fully paid principal and interest under restructuring (if any), for at least 3 (three) months in respect of medium and long-term loans and 1 (one) month in respect

NOTES TO THE SEPARATE FINANCIAL STATEMENT

for the period from 1 January 2025 to 30 June 2025

Form B05a/TCTD (issued under Circular No.

27/2021/TT-NHNN dated 31 December 2021) of short-term loans, since the date principal and interest under restructuring are fully paid; or from the commence date of full repayment of such principal and interest in cases where the repayment schedules for principal and interest are congruent

The Bank has sufficient basis of information and documents to assess and conclude that customers are capable of fully repaying principals and interest in a timely manner.

Loans shall be classified in a group with higher /eve/ of risk these following cases.

Norms on profitability, solvency, ratio of debts to capital, cash flows 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 to assess debt repayment capability of customers; or

Loans which are classified in Group 2, Group 3, Group 4 for 1 (one) year or longer but not qualified to classify in a group with lower level of risk; or

Loans whose credit extension is administratively sanctioned. Non-performing loans are loans classified into Group 3, 4 and 5.

The Bank is 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

*'9her level of risk between the group assessed by the Bank and the group provided by the CIC.

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

When the Bank participates in a syndicated loan, the Bank reclassifies all loans (including the outstanding syndicated loan) of the customer into the group with the highest level of risk as determined by the lenders.

Classification of payments for off-balance sheet commitments

Payments under off-balance sheet commitments are amounts that the Bank settled on behalf of customers when customers who are guaranteed by the Bank are not able to settle the amount when it falls due.

According to Circular 31, off-balance sheet commitments are classified as follows: Group 3. Sub-standard - if overdue for Tess than 30 days.

Group 4: Doubtful - If overdue from 30 days and Tess than 90 days,

Group S. Loss - If overdue for 90 days or more

if the payment under off-balance sheet commitment is classified in a group with lower level of risk than a group in which the off-balance sheet commitment is classified, the Bank must rectassify the payment into the same group of the off-balance sheet commitment

Provisi'on for losses on loans Io customers

Provisions for losses on loans to customers include specific provisions and genera! provisions.

NOTES TO THE SEPARATE FINANCIAL STATEMENT

for the period from 1 January 2025 to 30 June 2025

Form B05a/TCTD (issued under Circular No.

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

Specific provisions for losses on loans to customers are calculated using set rates applied to each loan group as follows:

Provision rate

Group 1 - Current loans 0%

Group 2 - Special-mentioned loans 5%

Group 3 - Sub-standard loans 20%

Group 4 Doubtful loans 50%

Group 5 - Loss loans 100%

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

According to Decree 86, the maximum discount rate for each type of collateral asset is determined as follows:

Type of coilateral assets

Maximum discounted

ratio

Deposit, certificates of deposit in VND at the Bank

100%

Government bonds, gold billets in accordance with law on gold trading activities, deposit, certificate of deposit in foreign currencies at the Bank,

95%

Municipal bonds, Government-guaranteed bonds; transferable instruments,

bonds issued by the Bank; deposit, certificate of deposit issued by other

credit institutions, foreign bank branches:

95%

85%

80%

(iv) Securities issued by other credit institutions and listed on a stock exchange

70%

(v) Securities issued by enterprises (except credit ‹nstitutions) and listed on a stock exchange.

65%

(vi) Unlisted securities and valuable papers, except for types of securities

specified in (Ni), issued by other credit institutions registered for listing on a

stock exchange;

500/,

Unlisted securities and valuable papers, except for the types of securities

specified in ( i), issued by other credit institutions not registered for listing on

a stock exchange

30%

CVII) Unlisted securities and valuable papers issued by enterprises registered for

listing on a stock exchange;

30%

Unlisted securities and valuable papers issued by enterprises not registered

for listing on a stock exchange

10%

(viii) Real estates

50%

{ix) Others

30%

With a remaining term of tess than 1 year

With a remaining term of between 1 year to 5 years

With a remaining term of over 5 years

Ho Chi Minh City Development 4oint Stock Commercial Bank

NOTES TO THE SEPARATE FINANCIAL STATEMENT

for the period from 1 January 2025 to 30 June 2025

Form B05a/TCTD

(issued under Circular No.

27/2021/TT-NHNN 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 enterprises or other credit institutions with a value above VND50 billion for loans to customers who are related parties of the Bank and other entities as prescribed in Article 135 of 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 internal regulations and procedures.

Any collateral asset that does not fully satisfy the conditions specified in Article 4, Clause 4, Clause 5 of Decree 86 (before 11 July 2024. apply Article 12, Clause 3 of Circular 11) shall have its value considered as zero.

According to Decree 86, the amount of general provision is determined by 0.75% of the total outstanding balance of debts classified from group 1 to group 4.

mile-off bad debts

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

Customer is an o.ganization, which is dissolved, goes bankrupt as prescribed by law or an individual who dies or is missing, or

Debts which are classified in group 5.

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

Loan restructuring, exemption or reduction of interest, fees and retention of loan group to assist customers affected by the Covid-19 pandemic
From 17 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/TO-NHNN ("Circular 03/2021") effective from 17 May 2021 and Circular 14/2021/TT-NHNN ("Circular 14/2021") effective from 7 September 2021
The Bank made 100% of additional specific provisions required to be made for customers whose outstanding loan balances were restructured in accordance with Circular 03/2021
Restructuring loan repayment terms and retention of loan grot/p to assist customers facing difficulties in doing 6t/s/ness and customers facing c/iff/ctz/ries in repaying their consumer loans.
from 24 April 2023, restructuring loan repayment terms, including the pr"incipal and/or interest, to assist customers facing difficulties in doing 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's financial capabilities.
On 18 June 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 02/2023 until 31 December 2024.
NOTES TO THE SEPARATE FINANCIAL STATEMENT
for the period from 1 January 2025 to 30 June 2025
Form B05a/TCTD (issued under Circular No.
27/2021/TT-NHNN dated 31 December 2021)
According to Circular 02/2023 and Circular 06/2024, the Bank restructure repayment terms of outstanding principals and/or interest of loans to customers satisfying all of these following conditions.
Being a loan with principal ar sen before 24 April 2023 from lending and finance leases;
The obligation of principal repayment and/or interest repayment arises during the period from 24 April 2023 to 31 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 to contract or agreement,
The Bank determines that customers are unable to repay principal 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/or interest plan under contract or agreement.
Customers apply for loan restructuring and the Bank determines 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:
The restructured term (including loan extension) is decided in conformity with the degree of difficulty of each customer and is not permitted to exceed 12 months from the original maturity date of the respective rescheduled amount;

Loan restructuring under Circular 02/2023 and Circular 06/2024 is carried out from 24 April 2023 to 31 December 2024.
Detail of loan classification and loan group retention.
The Bank retains loan group for the loan whose principal and/or interest are restructured ("restructured loan") at the latest ctassiftcation before the loan was restructured.

For restructured loans that are undue during the restructured period, the Bank does not apply to adjust, reclassify into a group with higher level of risk as prescribed in Circular 31 (frnm 1 July 2024) and Circular 11 (before 1 July 2024):
For restructured loans that are overdue during the restructured period and the Bank does not continue to apply loan restructuring as prescribed in Circular 02/2023 and Circular 06/2024, the Bank shall classify those restructured loans in accordance with Circular 31 (from 1 July 2024) and Circular 11 (before 1 July 2024);
For the interest receivables on loans that are being restructured according to Circular 02/2023 and Circular 06/2024, the Bank does not record income (accrued interest) and recognises them as off-statement of financial position to for following up and urge collection. Interest income is recorded in the separate income statement upon receipts.
Restructuring loan repayment terms and retention of loan group to assist customers
facing d/ff/ct//I/es due to I/Ie impact and damage of storm No.3.
From 4 December 2024, restructuring loan repayment terms, including the principal and/or interest, to assist customers facing difficulties due to the impact and damage of storm number 3 is carried out in accordance with Circular 53/2024/TT-NHNN ("Circular 53/2024") dated 4 December 2024 issued by the SBV, upon the customers' request and the Bank's financial capacity.
According to Circular 53/2024, the Bank restructures repayment term of outstanding principals and/or interest of loans to customers satisfying all of these following conditions
NOTES TO THE SEPARATE FINANCIAL STATEMENT
for the period from 1 January 2025 to 30 June 2025
Form B05a/TCTD (issued under Circular No.
27/2021/TT-NHNN dated 31 December 2021)
1. Customer in the following central-affiliated cities and provinces, including: Ha Giang, Cao Ban9, Lang Son, Bac Giang, Phu Tho, Thai Nguyen, Bac Xan, Tuyen Quang, Lao Cai, Yen Bai Lai Ghau, Son La Dien 8ien, Hoa Binh, Ha Noi. Hai Phong, Hai Duong, Hung Yen, Vinh Phuc, Bac Ninh, That Binh, Nam Dinh, Ha Nam, Ninh Btnh, Quang Ninh, Thanh Hoa ("26 provinces and cities"), are facing difficulties due to impact and damage of Storm number 3, including:
  Customers are individuals who are currently residing1 or working or locating their business establishments or carrying out investment, construction or business activities in the abovementioned 26 provinces and cities,
  Customers are organizations (except borrowers that are credit institutions or foreign bank branches} that are headquartered or locate their branches, representative offices or business establishments or carry out investment, construction or business activities in the abovementioned 26 provinces and cities.
2. Outstanding debt -rising from lending activities and fully meeting the following conditions: Outstanding principal amounts arise before 7 September 2024
  Obligations to repay outstanding principal and/or interest arise within the period starting from 7 September 2024 to 31 December 2025 inclusive.
  The outstandin9 ‹ebt to be rescheduled is undue or up to 10 {ten) days past the agreed-upon due date and/or the outstanding debt which is more than 10 (ten) days overdue and considered overdue within the period starting from 7 September 2024 to 16 December 2024 inclusive if these debt rescheduling procedures are carried out for the first time as prescribed Gircular 53/2024
3. Loans classification and monitoring of interest receivables:
  The loan is retained the debt group as the debt group classified according to regulations at the most recent time before 7 September 2024 when restructuring the debt repayment period according to Circular 53/2024.
  - For restructured loans that are undue during the restructure period, without having to apply adjustment principal, reclassify into a group with higher level of risk as prescribed in Circular 31.
  For restructured loans that are overdue during the restructured period and the Bank does not continue to apply loan restructuring no longer have outstanding loans with restructured debt repayment period, loans classification is performed according to Circular 31;
  For the interest receivables on loans which are restructured repayment terms and are retained the loan group as current loans (group 1), the Bank derecognizes their accrued interest and recognizes thsm as off-balance sheet Items for following tip and collection front the restructured date, interest income for these loans is recognized in the income statement upon receipt accordance with regulations of law on financial regimes applicable to credit institutions and foreign bank branches.
  ' According to Clause 10, Article 2 of Residence law No.68/2020/QH 14 dated 13 Novembcr 2020, current place of residence means the place of permanent or temporary residence whcre a citizen lives on a regular basis; if the citizen has no place of pcrmanern or tciriptirary residence, the place wiierc t)iey are living shall be thcii current place of residence
  This translation is for informat:onal purpose only, NOT an official version 19
  NOTES TO THE SEPARATE FINANCIAL STATEMENT
  for the period from 1 January 2025 to 30 June 2025
  Form B05a/TCTD (issued under Circular No.
  27/2021/TT-NHNN dated 31 December 2021)
  1. Provision f'or losses on loans to customers
    1. Provision for losses on loans to customers whose principal and/or interest are restructured in accordance with Circular 02/2P23 and Circular 06/2024
      From 24 April 2023, the Bank makes provisions for losses on loans to customers whose loans are restructured as prescribed by Circular 02/2023 and Circular 06/2024 as follows:
      Additional specific provision shall be determined as follows:
      Additional specific provision - A - B
      Whereas:
      A. Specific provisions made for all outstanding loans of customers according to loan classifications regulated by Circular 31 (prior to 1 July 2024, according to Circular 11).
      B: Specific pro'/isions made for alt outstanding loans of customers according to loan classifications regulated by Circular 02/2023 and Circular 06/2024.
      If the aforementioned additional specific provision is positive, the Bank makes additional specific provisions for credit losses as follows:
      By 31.12.2023. At least 50% of additional specific provisions; By 31.12.2024: 100% of additional specific provisions.
      The Bank makes general provisioning for the entire outstanding balance of customers based on the loan classification results determined according to Circular 31 (prior to 1 July 2024: according to Circular 11),
    2. Prov/sion f'or losses on loans to customers whose principal andyor interest are
      restructured in accordance with Circular 53/2024
      The specific provision is made for the entire outstanding loans of the customer according to the loan classification results for the portion of the outstanding loans that is retained in the same loan group and according to the loan classification results for the remaining outstanding loans of the customer as per the loan classification regulations of Circular 31
      Determine the specific provision amount to be made for the entire outstanding loans of the customer according to the loan classification results as per the loan classification regulations of Circular 31 (not applying the regulation of retaining the loan group).
      Additional spec'f.c gmvision shall be determined as follows:
      Additional specific provision = A - B
      In which:
      A. Additional specific provision must be set aside as prescribed in point b, Clause 4.5.2. B: Additional specific provision must be set aside as prescribed in point a, Clause 4.5.2.
      if the aforementioned additional specific provisions at point c is positive, additional specific provision for credit tosses is made as follows:
  - By 31 December 2024: At least 50% of additional specific provision:
  By 31 December 2025: additional provisions to reach at least 70% of the specific provision amount that needs to be supplemented.
  For loans that have been restructured according to Circular 53/2024 before 1 January 2025, provisions in 2025 should be made at least according to the rate specified in point a of this clause.
  By 31 December 2026: Make additional provisions for the remaining amount to reach 100% of the specific provision amount that needs to be supplemented.
  This translation is for informational purpose only, NOT an official version 20
  NOTES TO THE SEPARATE FlNANCtAL STATEMENT
  for the period from 1 January 2025 to 30 June 2025
  Form B05a/TCTD (issued under Circular No.
  27/2021/TT-NHNN dated 31 December 2021)
  For loans that have been restructured according to Circular 53/2024 before 1 January 2026, provisions in 2026 should be made at least according to the rate specified in point b of this clause.
  The general provision is made for the entire outstanding debt of the customer according to the loans classification results determined in point b, clause 4.5.2
Purchased cfeDts

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 provision for purchased debts in accordance with regulations on loan classification and provision for credit loss

4.7

5.'/

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 e›:ceeds the book value of the debt, the difference is recognised as other income within the fiscal year;

- lf the selling price is lower than the value of the debt, the difference is recorded as an expense of the Bank in the fiscal year, after being offset by compensation from parties, insurance from the designated insurance organisation, and, if applicable, the financial risk reserve fund.

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

Trading and investment securities

Trading securities

Classification and recognition

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

Trading securities are recognised 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 reco9nised at the time when official ownership is established in accordance with regulations

Measurement

Trading securities which are certificates of deposits or unlisted bonds are recognised at costs less provisions for credit losses. The classification of debts and provisioning for these securities are similar to those for "Loans to customers" as presented in Note 4.1 According to Decree 86 (from 11 July 2024) and Circular 11 (before 1 July 2024), the Bank does not make general provisions for certificates of deposits and bonds issued by focal credit institutions.

NOTES TO THE SEPARATE FINANCIAL STATEMENT

for the period from 1 January 2025 to 30 June 2025

Form B05a/TCTD (issued under Circular No.

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

Other trading securities are initially recognised at their carrying value less provisions for 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 for Government bonds, municipal bonds and Government-guaranteed bonds.

The difference between the provision made at the end of the current financial year and the provision made at the end of the previous financial year is recognised in the separate income statement during the year. Provisions for trading securities as mentioned above 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 only to the extent original costs of trading securities.

Gains or losses from sales of trading securities are recognised in the separate income statement as "Nel gain from tradinQ of trading securities". Cost is determined by the specific identification method.

interests received from trading securities during holding periods are recognised in the separate income statement upon receipts.

Derecognition

Trading 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 from ownerships of these securities.

Availa6le•for-sale inv'estment sect/r/t/es
Classification and recognition
Available-for-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-safe investment securities are recognised when the Bank becomes a party to the purchase contracts of these securities.
Measurement
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 diminution in value. Provisions for dtminution in value of available-for-safe investment securities are made when the carrying value is higher than the market price.
The provision for credit losses and provision for diminution in value of available-for-sale investment securities are made similar to the principles applied to trading securities as presented in Note 5.1
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
This translation is for informational purpose onty, NOT an official version 22
NOTES TO THE SEPARATE FINANCIAL STATEMENT
for the period from 1 January 2025 to 30 June 2025
Form B05a/TCTD
{issued under Circular No.
27/2021/TT-NHNN dated 31 December 2021) interest receivables before 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 separate income statement on a straight-line 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 incurfed after purchased date is recognised as income of the Bank based on an accrual basis. interest received in advance is amortised into interest income from investment securities based on a straight-line basis over the terms of investment securities.
Gains or losses from sales of available-for-sale investment securities are recognised in the separate income statement as "Net gain from trading of investment securities". Cost is determined by the specific identification method.
Derecognition
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.
Held-to-maturity investment securities

Held-to-maturity investment securities are debt securities that the Bank purchases with investing purpose to earn interests and the Bank has capabilities and intentions to hold these investment securities until maturities. According to Official Letter No. 2601/NHNN-TCKT issued by SBV on 14 April 2009, the Bank is allowed to reclassify maximum onetime after purchasing for held-to-maturity investment securities.

Held-to-maturity debt investment securities are recognised and measured similarly as available-for-sale debt investment securities as presented in Note 5.2.

6. Cash and cash equivalents

For the purpose of the separate 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 3 months or Tess, and securities which have collection periods or ofiginaT maturities within 3 months or less from purchase dates.

T. Provision, contingent liabf//t/es 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, which could be fully settled when due.

Group 2: Undue commitments, as assessed by the Bank, which could not be fully 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 and remains uncollected for a period less than 30 days from the issuance date of the Bank's collection decision:

NOTES TO THE SEPARATE FINANCIAL STATEMENT

for the period from 1 January 2025 to 30 June 2025

Form BOSa/TCTD (issued under Circular No.

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

Commitments violating the provisions in Clauses 1, 3. 4, 5. 6, Article 134 of the Law on Credit Institutions No. 32/2024/QH15 (before 1 July 2024: applied according to Clauses 1, 3, 4, 5, 6 Article 126 of the Law on Credit Institutions No. 47/2010/QH12 and according to Circular 11); or

Commitments violating the provisions in Clauses 1, 2, 3, 4, Article 135 of the Law on Credit institutions No. 32/2024/QH15 {before 1 July 2024: applied according to Glauses 1, 2. 3, 4, Article 127 Law on Credit Institutions No. 47/2010/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, Article 128 of the Law on Credit institutions No. 47/2010/QH12 and according to Circular 11).

Provisions tor off-balance sheet commitments

According to Decree 86 (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 quality supervision. Therefore, provisions are not made for off-balance sheet commitments.

Corporate income tax

income tax include all income tax which is based on taxable profits. Income tax expense comprises of current t-ax expense and deferred tax expense.

Curfent income tax is the amount of income tax payable or recoverable in respect of the current period taxable profits at the current period tax rates. Current and deferred income tax are recognised as an income or an expense and included in the separate 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 income tax is provided in full, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the interim separate financial statements. Deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a tfansact‹on 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 settled, based on tax rates that have been enacted or substantively enacted by the interim separate statement of financial position date.

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

Borrowings, issued de6t securities and equity insfrz/menrs

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 separate financial statements. At initial recognition, issuance 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.

Owners' capital
Owners' capital is recorded according to the actual amounts contributed 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.
This translation is for informational purpose only, NOT an official version 24
NOTES TO THE SEPARATE FINANCIAL STATEMENT
for the period from 1 January 2025 to 30 June 2025
Form B05a/TCTD (issued under Circular No.
27/2021/TT-NHNN dated 31 December 2021) Other owners' capital represents other capital held by the owners at the reporting date.
Treasury shares
Treasury shares bought before the effective date of the Law on Securities (1 January 2021) are 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 shares, which are repurchased after the effective date of the Law on Securities (1 January 2021), are cancelled and adjusted to reduce in the Bank's charter capital.
Retained earnings
Retained earnings record the Bank's results {profits) after CIT at the reporting date.
Statutory Reserves
Supplement charter cap/la/ reserve
Since 1 July 2024, according to the Law on Credit institutions No. 32/2024/QH1S issued by the National Assembly on 18 January 2024, the Bank makes appropriation of 10% of profit after tax to supplement charter capital reserve until it reaches the maximum balance of the Bank's charter capital
Fi'nancial reserve
According to Law on Credit Institutions No 47/2010/QH12 issued by the National Assembly on 16 June 2010 and Decree No. 93/2017/ND-CP, the Bank makes 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 other purposes in accordance with the laws.
These statutory reserves are not allowed to be distributed and are recognised as part of
equity.
Appropriati'on of profit
The Bank's dividends are recognisedas a liability in the Bank's separate financial statements during the year in which the dividends are approved by the General Meeting of Shareholders.
Profit after CIT could be distributed to shareholders after approval at the General Meeting of Shareholders, and after appropriation to other funds in accordance with the Bank's charter and Vietnamese regulations.
Other reserves including in equity are appropriated from profit after tax. The appropriation from profit after tax and the utilisations of other reserves must be approved by the resolution of the General Meeting of Shareholders. These reserves are not regulated by laws and are allowed to be fully distributed.
The bonus and welfare fund is appropriated from the Bank's profit after tax after approval by the Genera! Meeting of Shareholders and is presented as a liability on the separate statement of financial position. The Bank uses the fund in accordance with purposes as specified in accordance with Decree 93,
Restatement corresponding I/gures. /Vorte

NOTES TO THE SEPARATE FlNANCtAL STATEMENT

for the period from 1 January 2025 to 30 June 2025

Form B05a/TCTD (issued under Circular No.

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

V SUPPLEMENT FOR ITEMS PRESENTED ON STATEMENT OF FINANCIAL POSITION

Securities held for trading

Debt securities
30 June 31 December
2025 2024
VND million VND million
Government and municipal bonds
Debt securities issued by other domestic credit institutions
- Debt securities issued by domestic economic
  entities
- Debt securities issued by foreign entities
Total
Equity securities
- Equity securities issued by domestic credit institutions
Equity securities issued by domestic economic
entities
Equity securities issued by foreign entities
Other securities held for trading

Analysis of securities held for trading ciassified as credit risk assets by quality

24 4 ,304

2,199,960

2,411,264

778,827

21,176,948

21,955,775

Current	2,199,960	21,176,948
- Special mention
Substandard

Total	2,199,960	21,176,948
1.5. Provision for securities held for trading

Doubtful
Loss

In which: - Provision for impairment

General provision
Specific provision

1.6 Listing status of securities held for trading

Debt securities:

+ Listed

+ Unlisted

Equity securities:

+ Listed

+ Unlisted Other securities:

Listed

+ Unlisted

211,304

2,199,960

778,827

21,176,948

This translation is for informational purpose only, NOT an official version 26

NOTES TO THE SEPARATE FINANCIAL STATEMENT

for the period from 1 January 2025 to 30 June 2025

Form B05a/TGTD (issued under Circular No.

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

2. Derivatives and other financial assets/liabilities

Total contract value (at foreign exchange rate

at the contract date)

VND mi/lion

Total book value

(at foreign eKchange rafe a/ .•c'JM date)

Assets Liabi'lities

VND million VND millions

As at 30 June 2025 Foreign currency derivatives
- Currency forward contracts	2,196,050		31,213
- Currency swap contracts	136,991,880	160, 586
Other derivatives - Cross currency interest swap contracts	998,200		24,200
Total	140,186,130	160,586	55,413
Net amount		105,173
As at 31 December 2024
Foreign currency derivatives - Currency forward contracts	3,420,583		3,182
- Currency swap conta acts	89.510,371	43,950
Other derivatives - Cross currency interest swap contracts	_ 977,800		3,800
Total	93,908,754	43,955	6,982
Net amount		36,973

3. Loans to customers
	30 June 2025 VND million	31 December 2024 VND mi// on
Loans to local economic organisations and individuals	481,592,310	405,304,286
Overdrafts and credit cards	4,955,278	4,801,699
Loans from funds, trusted investments	2,717,429	2,713,908
DisCOuDting commercial notes and valuable
papers	182,019	248,071
Payments on behalf of customers		25,835
Loans to oversea economic organisations
and individuals	240,000		150
	489,687,036		41_3,093,949
The business of issuing deferred payment letters of credit with terms of sight payment or
advanced payment arising before 1 July 2024 (•)	255,631		11,178,772
Total	489,942,667		424,272,721

NOTES TO THE SEPARATE FlNANCiAL STATEMENT

for the period from 1 January 2025 to 30 June 2025

Form B05a/TCTD (issued under Circular No.

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

(")This is the balance related to the business of issuing deferred payment letters of credit with terms of sight payment or advance payment before the better of credit due date of the Law on Credit Institutions No. 32/2024/QH15 and Circular 21/2024/TT-NHNN and is not included in the credit growth rate.

			30 June 2025 VND million	31 December 2024 VND million
Current			459,407,038	386,327,454
Special mention			18,724,596	19,556,661
Substandard			6,214,765	3,406,410
Doubtful			4,230,270	1,589,477
Loss			1,110,367	2,213,947
			489,687,036	413,093,949
Current - The	business of issuing	deferred
payment letters	of credtt with terms	of sight
payment or advanced payment arising before 1
July 2024	255,631 11,178,772
TOtal		489,942,667			424,272,721
Analysis of'loans 6y original terms
		30 June			31 December
		2025			2024
		VND million			VND million
Short-term		240,767,697			219,624,383
Medium-term		167,122,129			127,569,967
Long-term		81,797,210			65,899,599
Total			489,687,036	413,093,949
Short-term The business of issuing deferred
payment letters of credit with terms of sight payment or advanced payment arising before 1 July 2024 255,631 11,178,772
	489,942,667 424,272,721

This translation is for informational purpose only, NOT an official version 28

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HDBank - Ho Chi Minh City Development Joint Stock Commercial Bank published this content on July 30, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on July 30, 2025 at 10:33 UTC.

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Company Profile

Ho Chi Minh City Development Joint Stock Commercial Bank is a Vietnam-based financial intermediary. The Company is primarily involved in commercial banking activities, including accepting deposits; granting personal and business loans; issuing debit and credit cards, and providing remittance, letter of credit and debt collection services. The Company's other undertakings consist of foreign exchange dealing, stock trading and equity investing.

Employees

18,045

Sector

Banks

Calendar

02-02 - Q4 2025 Earnings Release (Projected)

More about the company