HSBC BANK (VIETNAM) LTD.

SUMMARISED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

SUMMARISED STATEMENT OF FINANCIAL POSITION SUMMARISED CASH FLOW STATEMENT (DIRECT METHOD)
As at 31 December For the year ended
31 December
2022 2021
million VND million VND 2022 2021
ASSETS million VND million VND
CASH FLOWS FROM OPERATING ACTIVITIES
Cash on hand 502,590 406,388 Interest and similar income received 5,048,446 2,687,999
Interest and similar expenses paid (211,826) (135,092)
Balances with the State Bank of Vietnam 14,196,449 17,255,957
Fee and commission income received 846,887 778,949
Placements with and loans to other credit institutions 110,224,228 82,443,475 Net amount received from trading of foreign currency and securities 1,278,302 1,060,873
Placements with other credit institutions 108,840,548 81,318,475 Other income 127,298 79,164
Loans to other credit institutions 1,383,680 1,125,000 Recovery of debts written-off and provided for credit risks 60,189 32,858
Derivatives and other financial assets 61,281 47,298 Payments to employees and for administrative expenses (2,575,408) (2,519,226)
Corporate income tax paid during the year (679,132) (344,511)
Loans to customers 62,515,074 54,196,467
Loans to customers 63,128,276 54,981,589 NET CASH FLOWS FROM OPERATING ACTIVITIES
Provisions for credit losses on loans to customers (613,202) (785,122) BEFORE CHANGES IN CURRENT ASSETS AND WORKING CAPITAL 3,894,756 1,641,014
Investment securities 9,495,797 8,281,131 Changes in operating assets
Available-for-sales investment securities 9,495,797 8,285,647 Increase in placements with and loans to other credit institutions (258,680) (602,000)
Provision for investment securities - (4,516) Decrease in trading securities 1,787,802 511,784
Fixed assets 112,047 119,980 Increase in derivatives and other financial assets (13,983) (32,594)
Tangible fixed assets 95,981 107,338 Increase in loans to customers (8,146,687) (6,936,705)
Historical cost 237,407 232,373 Utilisation of provision for credit losses (182,306) (110,351)
Accumulated depreciation (141,426) (125,035) Increase in other operating assets (299,582) (114,312)
Intangible fixed assets 16,066 12,642 Changes in operating liabilities
Historical cost 29,226 21,360 Increase/(decrease) in placements and borrowings from other credit institutions 17,735 (1,237,439)
Accumulated amortisation (13,160) (8,718) Increase in deposits from customers 29,411,884 34,653,598
Other assets 1,506,709 950,068 Increase in valuable papers issued 1,499,325 -
Other receivables 592,005 286,628 Increase in other operating liabilities 576,247 18,479
Accrued interests and fees receivable 734,943 489,657 NET CASH FLOWS FROM OPERATING ACTIVITIES 28,286,511 27,791,474
Deferred tax assets 21,648 20,691
Other assets 158,113 153,092 CASH FLOWS FROM INVESTING ACTIVITIES
TOTAL ASSETS 198,614,175 163,700,764 Purchase of fixed assets (36,436) (82,300)
Proceeds from the disposal of fixed asset 41 263
LIABILITIES AND EQUITY NET CASH FLOWS FROM INVESTING ACTIVITIES (36,395) (82,037)
Placements and borrowings from other credit institutions 2,198,482 2,180,747 CASH FLOWS FROM FINANCING ACTIVITIES
Placements from other credit institutions 1,998,180 1,972,345 Profit paid (693,397) -
Borrowings from other credit institutions 200,302 208,402
NET CASH FLOWS FROM FINANCING ACTIVITIES (693,397) -
Deposits from customers 175,516,105 146,104,221
NET INCREASE IN CASH AND CASH EQUIVALENTS 27,556,719 27,709,437
Valuable papers issued 2,098,581 596,605 CASH AND CASH EQUIVALENTS AT BEGINNING OF THE YEAR 98,980,820 71,271,383
Other liabilities 2,823,850 1,751,557 CASH AND CASH EQUIVALENTS AT END OF THE YEAR 126,537,539 98,980,820
Fees and interests payable 97,556 37,976
Other liabilities 2,726,294 1,713,581
TOTAL LIABILITIES
MOVEMENTS IN OWNER’S EQUITY
182,637,018 150,633,130
Charter Reserve to Financial Retained Total
OWNER’S EQUITY 15,977,157 13,067,634 capital supplement charter reserves earnings
Capital 7,528,000 7,528,000 capital
Charter capital 7,528,000 7,528,000 million VND million VND million VND million VND million VND
Reserves 3,514,460 2,959,388
As at 1 January 2021 7,528,000 954,673 1,807,964 2,158,723 12,449,360
Retained earnings 4,934,697 2,580,246
Net profits for the year 3,145,408 1,114,920 Profit for the year - - - 1,311,671 1,311,671
Retained profits of prior years 1,789,289 1,465,326 Profit distribution (*) - - - (693,397) (693,397)
Appropriation to reserves - 65,584 131,167 (196,751) -
TOTAL LIABILITIES AND EQUITY 198,614,175 163,700,764
As at 31 December 2021 7,528,000 1,020,257 1,939,131 2,580,246 13,067,634
Profit for the year - - - 3,700,480 3,700,480
Profit distribution (**) - - - (790,957) (790,957)
OFF STATEMENT OF FINANCIAL POSITION ITEMS Appropriation to reserves - 185,024 370,048 (555,072) -
As at 31 December 2022 7,528,000 1,205,281 2,309,179 4,934,697 15,977,157
Foreign exchange transactions commitments 42,763,347 52,756,092
Foreign currency purchase commitments (*) The Members’ Council of the Bank approved the 2020 profit distribution plan on 18 August 2021.
6,314,554 8,411,655
Foreign currency sales commitments Accordingly, the dividend amount of VND693,397 million was remitted to the Parent Bank on 8 February 2022.
6,283,251 8,335,636
Swap transactions commitments (**) The Members’ Council of the Bank approved the 2021 profit distribution plan on 27 July 2022.
30,165,542 36,008,801
Irrevocable loan commitments Accordingly, the dividend amount of VND790,957 million was remitted to the Parent Bank on 21 February 2023.
2,460,218 2,327,532
Letters of credit commitments 11,139,038 9,451,940
Other guarantees 9,584,994 8,946,037 EMPLOYEE'S REMUNERATION
Other commitments 8,975,003 19,951,848
Interest and fee receivables not yet collected 137,787 227,424 2022 2021
Bad debts written-off 527,389 471,625 million VND million VND
Total number of employees 1,284 1,302
Employee’s remuneration
Total salary fund 768,841 746,745
Variable salaries 175,540 161,983
SUMMARISED INCOME STATEMENT Other remuneration 63,021 63,523
1,007,402 972,251
For the year ended
31 December Average salary per employee per year 599 574
Average income per employee per year 785 747
2022 2021
million VND million VND
FINANCIAL RATIOS
Interest and similar income 5,290,420 2,645,013 31.12.2022 31.12.2021
Interest and similar expenses (274,057) (139,647) million VND, % million VND, %
Net interest income 5,016,363 2,505,366 Charter capital 7,528,000 7,528,000
Fees and commission income 1,238,410 1,062,781 Total assets 198,614,175 163,700,764
Fees and commission expenses (390,358) (280,015) Overdue loans 526,351 563,408
Non-performing loans 216,730 339,004
Net fee and commission income 848,052 782,766 Capital adequacy ratio 15.22% 15.45%
Net gain from dealing in foreign currencies 1,278,367 1,058,804 Loans to deposit ratio 35.01% 34.04%
Overdue loan balance/Total loan balance 0.31% 0.41%
Net gain from trading of held-for-trading securities - 2,134
Non-performing loan balance/Total loan balance 0.13% 0.25%
Net gain/(loss) from trading of investment securities 4,516 (2,159) The liquidity reserve ratio 61.78% 63.74%
Other income 199,262 128,836 Short-term funding used for medium and long-term loans ratio -1.27% -0.97%
Other expenses (8,177) (15,896) Solvency ratio – 30 days
- In VND 256.88% -421.39%
Net other income 191,085 112,940 - In foreign currencies 562.32% 474.89%
Operating expenses (2,695,645) (2,534,112)
Net operating profit before provisions for credit losses 4,642,738 1,925,739 2022 2021
million VND million VND
Provisions for credit losses (10,386) (278,967)
Total deposits received 6,217,690,637 4,238,696,717
Profit before tax 4,632,352 1,646,772
Total loans disbursed 202,116,707 160,405,188
Corporate income tax – current (932,829) (326,528) Total loans collected 192,287,829 153,445,725
Corporate income tax – deferred 957 (8,573)
Corporate income tax (931,872) (335,101) The Summarised Financial Statements were approved by the Bank’s Legal Representative on 21 March 2023.

Profit after tax 3,700,480 1,311,671

Ha Le Thao Vy Nguyen Thi Thanh Truc Timothy Mark Redvers Evans

Financial Controller Chief Financial Officer and Chief Accountant Legal Representative

INDEPENDENT AUDITOR’S REPORT ON SUMMARISED FINANCIAL STATEMENTS

TO THE OWNER, THE MEMBERS’ COUNCIL AND THE CHIEF EXECUTIVE OFFICER OF HSBC BANK (VIETNAM) LTD.
The accompanying Summarised Financial Statements have been prepared on 31 December 2022 and approved by the Bank’s Chief Executive Officer on 21 March 2023, from pages 3 to 11 which comprise the Summarised Statement of Financial Position as at 31 December 2022, the Summarised
Income Statement and the Summarised Cash Flow Statement for the year then ended, Movements in Owner’s Equity, Employee's Remuneration and Key Financial Ratios, which were derived from the Financial Statements of HSBC Bank (Vietnam) Ltd. (“the Bank”) for the financial year ended 31
December 2022, on which we have audited and issued an unqualified auditor’s report dated 21 March 2023. The audited Financial Statements and the Summarised Financial Statements do not include the impact of subsequent events that occurred after the date of our above mentioned auditor’s
report.
The Summarised Financial Statements did not include all disclosures of the Financial Statements which are required by Vietnamese Accounting Standards, the Vietnamese Accounting System and applicable regulations on preparation and presentation of financial statements for credit institutions
operating in Socialist Republic of Vietnam. Therefore, the reading of the Summarised Financial Statements cannot substitute for the reading of the audited financial statements of the Bank.
The Chief Executive Officer’s Responsibility to the Summarised Financial Statements
The Chief Executive Officer is responsible for the preparation and the true and fair presentation of the Summarised Financial Statements in accordance with the relevant regulations on preparation and presentation of Summarised Financial Statements.
Auditor’s Responsibility
Our responsibility is to express an opinion on the Summarised Financial Statements based on our procedures which were performed in accordance with the Vietnamese Auditing Standard No. 810 - Services on the summarised financial statements.
Auditor’s Opinion
In our opinion, the accompanying Summarised Financial Statements which were derived from the audited Financial Statements for the year ended 31 December 2022 of the Bank, are consistent, in all material respects, with audited Financial Statements, in accordance with the relevant regulations
on preparation and presentation of Summarised Financial Statements.
Other matters
The Summarised Financial Statements of the Bank for the year ended 31 December 2021 were derived from the Financial Statements of the Bank for the year ended 31 December 2021 which were audited by another auditor whose audit report dated 23 March 2022 expressed an unqualified opinion.
The independent auditor’s report on Summarised Financial Statements is prepared in Vietnamese and English. Should there be any conflict between the Vietnamese and English versions, the Vietnamese version shall take precedence.
For and on behalf of PwC (Vietnam) Limited

Nguyen Hoang Nam Mai Tran Bao Anh

Audit Practising Licence No. 0849-2023-006-1 Audit Practising Licence No. 4166-2022-006-1
Authorised signatory
Report reference number: HCM13087
Ho Chi Minh City, 21 March 2023

HSBC BANK (VIETNAM) LTD.

Floors 1, 2, 6 Metropolitan Building, No. 235 Dong Khoi Street, Ben Nghe Ward, District 1, Ho Chi Minh City

Public - Issued by HSBC bank (Vietnam) Ltd.