"HDBank has always strived for a dynamic, transparent, compassionate and professional corporate culture. In aiming that, we would like to increase our community support and our social contribution."

Dear Valued Customers, Esteemed Shareholders and Beloved HDBank Staff,

The year 2012 has passed and witnessed the ebb and flow of the global economy: stagnating growth and increasing struggles around the world, especially in economic powerhouses; adverse effects of the sovereign-debt crisis and restructuring in Eurozone; and shrinking international trade. In response to these challenges, 2012 marked the lowest economic and trade growth in 3 years.

As a direct result of this prolonged global financial crisis, Vietnamese economy has encountered many complications that forced a policy shift from aiming for economic growth to stabilising the economy as a whole. Following this change, the implementation of monetary tightening policies, in hope of restraining inflation, caused the decrease in the domestic needs which, in turn, induced stagnant goods and real estate. In addition, such policies exacerbated both private and public debts while created more hindrance to businesses in accessing capital.

In the face of such uncertain market, HDBank, led by the Board of Directors (BoD) and the Board of Management (BoM), has always maintained its position within the State Bank's directives and the legislative framework. In conformance with these principles, the bank successfully minimised and mitigated management risks while capitalised on limited market opportunities to produce remarkable results. In brief, HDBank has managed to achieve its target during this fiscal year 2012.
According to the financial statement, in comparison to the fiscal year 2011, our total assets and deposits both increased by 17%, standing respectively at VND 52,783 billion and VND 46,368 billion. In addition, our total loans rose to VND 21,148 billion with the NPL ratio at 2.35%. In term of performance, we achieved the profit before tax of VND 427 billion. This result was also supported by other financial metrics such as ROA at 0.9%, ROE at 9.12% and CAR at 14.01%.

Understanding the policy shift from the Government, HDBank actively pursued its own restructuring scheme. The bank investigated and re-evaluated thoroughly every aspects of its operation, ranging from assets, capital, customers, partners to its domestic network. From the rebrand to the increase in charter capital, these events highlighted the transformation of HDBank to adapt to the new challenging economy, to continue its sustainable developments and to strengthen its competitive position in the market.

Against the global financial crisis, the bank has employed a more rigorous approach in risk management by applying international standards in mitigating credit risks, market risks and operation risks. Besides, HDBank invested heavily on infrastructure to ensure that its customers would enjoy sophisticated services such as iBanking, SMS Banking and Mobile Banking.

By trying to excel itself in business and realise its responsibilities to community, HDBank has always strived for a dynamic, transparent, compassionate and professional corporate culture. In aiming that, we would like to increase our community support and our social contribution.

Throughout its history, HDBank has continuously worked on creating better products and services, supporting and financing various industries and enterprises. In response to these incessant efforts, the bank has been acknowledged and trusted by not only its customers and partners but also experts and officials, both domestically and internationally, for its merit, its professionalism and its products and services. In 2012, the bank was honourably commended with awards such as 'Best Cash Management in Vietnam', 'Top 500 Enterprises in Vietnam' and 'Best Savings Bank in 2012'. Furthermore, HDBank proudly received the Labour Order of the Government of Vietnam, praising its contribution to the development of banking and economy in Vietnam.

Continuing the trend from 2012, 2013 is shadowed with forecasts about the slow recovery of the global economy, hindered by various hidden obstacles. According to World Bank (WB), global economic growth will stagnate at 2.4%, just a fraction higher than last year figure of 2.3%. More importantly, the idle state of the traditional economic powerhouses i.e. the US, Japan and Europe will extend and affect exporting economies in Asia, including Vietnam.

Taking this into account, the BoD and BoM will devise and accommodate flexibly various strategies against this ever-changing market. We are confident that the current situation, despite its unforeseen obstacles, only encourages us to maximise and exhibit our strengths in order to improve our performance and bring the best results to our investors, shareholders, partners, customers and community.

To realise this commitment, justify our vision and become a top bank in Vietnam operating in Business, Investments and Retail Banking, in 2013, HDBank will focus its resources in the following objectives:
- Completing our business strategy and operating model: we will continue to improve our matrix management while maintain a harmonious, coherent and efficient link between different divisions, down from the Headquarter to each branch.
- Strengthening the Boards' competencies and accountability: we will identify the role and responsibility of each member of the BoD so that they can perform better while being more accountable to the Board and the Shareholders General Assembly.
- Employing a sustainable and efficient approach in development: the BoM will focus on a sustainable assets growth and observe tightly non-performing loans. The bank will also increase its awareness in credit and risk controls.
- Promoting the bank image and establishing better and broader connections with both domestic and international investors, partners and customers.
- Further upgrading our current banking technology with the aim of integrating ICT in the bank management and introduction of better products and services.
- Improving our communication and public relations in order to promote our slogan 'Committed to the best interests' in the bank management and operations.

On behalf of the BoD, I would like to thank all of you, our Shareholders, Partners, Customers, State Regulatory Offices, HDBank staff, for your trust and support in building a better HDBank. I sincerely hope that you will always accompany us in our next developing stages.

I wish you all good health, happiness and success!

Sincerely,

LE THI BANG TAM
Chairwoman of the Board of Directors, HDBank