Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (136)

GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT BUILDING BUSINESS STRATEGY FOR BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM (BIDV), NGHE AN BRANCH FROM 2010 TO 2015 Group: 1.Vo Thi Minh Sinh Hoang Viet Hung Nguyen Văn Do Nguyen Van Hai Nguyen Khac Diep - Leader - Member - Member - Member - Member HA NOI, 2010 TABLE OF CONTENTS LIST OF ABBREVIATION Acronyms NHTMVN VCB ACB NN&PTNT BIDV Nghe An BIDV English Vietnamese Vietnam Commercial Bank Ngân hàng thương mại Việt Nam Joint Stock Commercial Bank Ngân hàng thương mại cỏ phần ngoại for Foreign Trade of Vietnam thương Việt Nam Asia Commercial Bank - Chi nhánh Ngân hàng Á châu Nghệ An Nghe An Branh Vietnam Bank for Agriculture Ngân hàng Nông nghiệp phát triển and Rural Development Nông thôn Bank for Investment and Chi nhánh Ngân hàng Đầu tư Phát Development of Vietnam - triển Nghệ An Nghe An Branch Bank for Investment and Ngân hàng Đầu tư Phát triển Việt Development of Vietnam Nam LIST OF TABLES Table 2.1 The number of credit institutions at the time of 31/12/2009 43 Table 2.2 Network activities of credit institutions at the time of 31/12/2009 44 Table 2.3 The factors affecting the choice of bank customers 44 Table 2.4 Assessing the competitiveness of Nghe An BIDV compared with other banks 45 Table 2.5 The number of customers in Nghe An BIDV 2007-2009 .49 Table 2.6 Matrix EFE of BIDV Nghe An .54 Table 2.7: Number of staff in BIDV Nghe An, 2007-2008 56 Table 2.8 capital mobilization and Capital mobilization market share of Nghe An BIDV from 2007 to 30/6/2010 62 Table 2.9 Outstanding of Nghe An BIDV and banks in the rgion of Nghe An from 2007 to 30/6/2010 65 Table 2.10 income of service activities of Nghe An BIDV from 2007 to the end of the first half of 2010 68 Table 2.11 Total assets and capital mobilization in 2007-2009 70 Table 2.12 Pre-tax profit of the branch 2007-2009 71 Table 2.13 Pre-tax profit of the branch 2007-2009 72 Table 2.14 IFE Matrix of BIDV Nghe An 74 Table 3.1 SWOT matrix 79 Table 3.2: QSPM Matrix 83 Table 3.3: Selected strategy is in prior order 85 Table 3.4 : Estimated financial criteria from 2011 to 2015 107 Table 3.5 Income statement from 2011 to 2015 107 LIST OF FIGURES Figure 1.1 Tasks of strategic management .11 Figure 1.2 Business strategy building procedure .15 Figure 1.3 External environment 18 Figure 1.4 SWOT analysis 22 Figure 1.5: Importance Mark in IE Matrix 23 Figure 2.2 Market share of capital mobilization of BIDV Nghe An comparing with other banks in Nghe An province in 2009 47 47 Figure 2.3 Market share of services of Nghe An BIDV and other banks (2009) .48 Figure 2.4 Customer structure of BIDV Nghe An in 2009 50 Figure 2.5 Human resource structure of BIDV Nghe An, 2009 .57 Figure 2.6 Human resource structure of BIDV Nghe An towards experiences 2009 .57 Figure 2.7: Capital mobilization structure of Nghe An BIDV compared with other banks in the same area 63 Figure 2.8: outstanding credit structure of Nghe An BIDV and banks in the region of Nghe An Province 65 Figure 2.9: structure of outstanding loan of groups 66 Figure 3.1 IE matrix of BIDV Nghe An 82 Figure 3.2 IFE matrix - EFE matrix of BIDV Nghe An 83 Figure 2.1 Organizational structure of BIDV Nghe An 106 PREFACE The necessity of selecting the research topic Today, International economic integration is an inevitable trend for economically developing countries wanting rapid access to advanced economies For Vietnam, international economic integration is important and is the proper direction to position Vietnam in the International business arena by offering many opportunities for sustainable and rapid development of the economy Confronted with the requirements of development and economic integration of Vietnam and the world, the Vietnamese government has made commitments to international financial institutions to open financial markets and banks in Vietnam Competition and international economic integration requires commercial banks to change traditional business practices to meet the requirements of new international business climate In the context, the commercial banks have to modernize, play a key role in the monetary financial market, create competitive capacity, and quickly adapt the process of integration and development To achieve the initiative in the integration process, overcome challenges, and take advantage of good opportunities requires NHTMVN to analyze their strengths and weaknesses This will dictate appropriate strategy for each stage of development to be consistent with the trend on the principle of ensuring national interests and enterprises In the general context, to survive and grow, BIDV Nghe An belongs to BIDV, also needs to build and implement updated business strategy BIDV Nghe An focuses on scale expansion, technological modernization, diversification and improvement of modern banking products and services based on advanced technologies; market- based management reform; building, standardizing the entire business operation process and risk management; renewal management, gradually building prestigious bank in area and over the world; competitive capacity, efficiency, safety, availability of capital, investment expansion to meet the needs of industrialization and modernization of the country Successful building and implementation of business strategy is an urgent need, and is a mission for the existence and development of banks in general and BIDV Nghe An in particular From such a practical situation, the team has chosen the topic: "Building a business strategy for the Bank for Investment and Development in Nghe An 2011 to 2015 and implementing solutions” We hope that the research will contribute to improve business efficiency and put BIDV Nghe An on a new position in BIDV system in detail and the system of commercial banks in Vietnam in general Research Purposes Based on the research methodology, the authors give further analysis, generalize the basic theory of business strategy, along with analysis and assess the actual operation of BIDV Nghe An in order to build business strategy for the BIDV Nghe An from 2011 to 2015 and propose some implementation solutions which bring the BIDV Nghe An to be one of the strong branches among system of BIDV and Nghe An province Research objectives - To clarify the methodology of business strategy and business strategy building - procedure of banks To assess the status of business operations and the factors affecting the business - strategy of BIDV Nghe An To build business strategy for BIDV Nghe An from 2011to 2015 and solutions to implement the strategy Objects and scope of research - Objects of the research includes BIDV Nghe An staffs, customers, products, - business operations, and factors affecting the business strategy of BIDV Nghe An The research scope of the project is limited in building business strategy for BIDV Nghe An 2011-2015 Research methodology - The approaches: The topic uses integrated approaches such as the particular approach, historical approach, quantitative and qualitative approach - Method of processing and data analysis: Topic uses statistical methods of description, analysis and synthesis to evaluate business performance of BIDV Nghe An; Using EFE , IFE, SWOT, IE matrix - Sources of information: Topic is used secondary information from newspapers, the Internet and reports from BIDV Nghe An, State Bank of Nghe An Province The theoretical meaning and practice Topic is based on the theories relating to strategic management and applies the theories to analysis strength - weakness, opportunity - threat of BIDV Nghe An, then to develop business strategies and to propose solutions for these strategies, especially in the context of Vietnam's accession to WTO and fully implement commitments on the banking sector in 2015 Structure: The research paper includes the following three chapters: • Chapter 1: Methodology of rationale of the business strategy of business • Chapter 2: Analyzing business environment fact BIDV Nghe An in the recent past • Chapter 3: Business strategy of BIDV Nghe An from 2011 to 2015 and implementing solutions CHAPTER I BUILDING BUSINESS STRATEGY FOR BUSINESS UNIT 1.1 Business strategy 1.1.1 Definition In the market economy, every business will start its business operation process by establishing goals to be achieved in the long term And to be able to achieve these objectives, the leaders need to set out the different means and the ways to achieve that goal; it also means that managers must build a specific business strategy for their enterprises There are many different opinions on business strategy, Fred R David said: "Strategy is the means to achieve long-term goals." Meanwhile, Bruce Henderson, strategist at the same time as founder of Boston Consulting Group has linked the concept of strategy with competitive advantage Henderson wrote, "The strategy is a prudent plan of action to combine and develop competitive advantage of the organization The difference between you and competitor is the basis for your advantage " According to Chandler – who is one of the first to initiate strategic management theory- said "business strategy of a business is determining the long term and basic objectives and purposes and apply a sequence of actions as well as the allocation of necessary resources to implement this goal Therefore, it is obvious that there are many different views on the strategy Each concept included different aspects and is according to level In Our opinion, to understand and the most common, strategy may be understood as the means or a written explanation on the operation orientation to achieve business objectives set out in the long term There are three levels of business strategy needed identified include: - Corporate level strategy: Toward the purpose and scope of the organization - overall Business level strategy: Related to how to compete successfully in the specific - market Functional level strategy: Help the corporate level strategy and the Business level strategy effectively implement due to all components such as resources, processes, people, and the necessary skills 1.1.2 Roles of business strategy Business strategy is especially important for the formation, existence, and development of the business Business strategy is seen as a guideline for the operation of enterprises, is an important element to create success for enterprises The role of business strategy is reflected in the following: Business strategy helps businesses identify the purpose and orientation of the enterprise, is a basis, a guideline for all business activities of enterprises Without strategy, enterprises will not identify the target, its orientation during the operation, which will not mobilize human and material resources to promote the strengths of business Business strategy helps businesses understand and take advantage of business opportunities, while there are proactive solutions to overcome the risks and threats in the process of business competition Thanks to business strategy, enterprises can provide plans to succeed in the competitive process, particularly in market economy and integration Through business strategy, enabling businesses to apply limited resources to generate superior results to achieve goals set out, to help businesses identify the path and direction to create competition advantages against rivals Business strategy contributes to improving the efficient utilization of resources, enhancing the competitive position of enterprises, and ensuring the sustainable development of enterprises Through business strategy, helping businesses make the best use of financial resources, human resources, infrastructure, information 10 but strategic communication must also spend a fair portion for the traditional customers of the Sub- subsidiary companies which have a large scale of operations The study determines the cost for each product, and on that basis determining the income of each client to a precondition for the formulation of customer policies based on customer revenue contribution to the bank Making a healthy financial situation is to create financial resources for market entry strategies in the later stage During this period, the branch will restrict lending and financing of major projects of State enterprises also plan to make the recovery of bad debts, off balance sheet debt is handled The objective of this action is to decrease is likely to affect the group's traditional customers for BIDV Nghe An also create momentum for the development of the retail segment in a later stage b Network development strategy Researching and building a project is to set up more rooms and trading transaction, in late 2012, establishing 01 more transaction office in Cua Lo Town, and a transaction at Le Hong Phong Installing 04 extra points accept payment cards and two ATM POS Setting projects to the Bank for Investment and Development of Vietnam is to get approval of constructing office in Lenin Street, the late start work in 2011 In accordance with the network development plan is to arrange and organize personnel to ensure the ability to promote creativity and initiative in work for each individual, the individual benefits associated with efficiency their own business 3.4.2 Phase (2013 – 2014) a Focus strategy: Strong conversion from wholesale banking to retail banking is done by gradually reducing the debt balance and mobilization from traditional customers; actively promoting activities towards promoting the individual customers and small and medium size enterprises 94 Applying policies based on customer revenue contribution for each customer, in which customers bring more profit to the bank will apply preferential policies on charges and services policies and serving policies Concentrating on investment in the modern trade channel as Mobile banking, Auto bank, Internet banking b Product development strategy - Consolidating and forming marketing division under the Department of Planning - Capital The function of this department is to define the policy-mix in which marketing, research and product development are considered in important priority - Perfecting, improving existing products and services towards application of information technology is to increase accuracy, safety, speed, and maximum utility to users Upgrading of electronic banking services as Mobile banking, Home banking, Phone banking - Developing and applying information technology in banking activities in particular in paying strong attention to the application of advanced technology to design products and services - In addition to products and services through links with insurance companies, finance companies, etc aims to raise the proportion of service revenue in total revenue up 30% of branches in late 2015 c Network development strategy Research and set up project is to build more rooms and trading transaction, in late 2014 established 02 more transaction offices in Nghi Loc district, Nam Dan, and a transaction in the Tran Hung Dao Street Installation of 04 extra points for accepting payment cards and three ATM Actively completing Headquarter in Lenin Street, in late in 2014 will begin to open new office 3.4.3 Phase (2015) 95 a Focus strategy: Step up advertising and propaganda aims at confirming brand name in the retail market Forming and segmenting the group of customers, including small and medium size enterprises which are major customer groups and the largest proportion of the branch Confirming clear differences in the quality of the service branches compared to other commercial banks operating in the province Automating processes in the banking business by deploying the same range of channels of modern electronic transactions as Auto bank, Internet banking, in addition to further strengthening the activities of traditional distribution channels are the trading room b Products development strategy - Forming main group of banking products, in which promoting products and services, striving to collect service income accounted for 70% of the branch - Developing derivative commodities, currency trading, insurance products c Network development strategy Researching and setting up project is to build more rooms and trading transaction, in late 2015, establishing 01 more transaction offices in Ben Thuy Installation of additional 02 points accepts a payment card POS and ATM 96 3.4.4 Strategic solutions implementation (Action plan): Solution Responsible Source person costs Stage (2011 - 2012) 1.1 Focus Department of - Stepping up promotional activities, advertising, general plan in information, and communication, designing and combination launching attractive promotional programs with Board of intended to target customers market - The study is to determine the cost for each research product of Completi Evaluation criteria period Advertising Target customers are identified as costs are individual customers and small and annually medium size enterprises, but the approved by communication strategy should also set BIDV aside a reasonable portion for the - 10/2011 - 12/2011 traditional customers of the branch 1.2 Network development strategy Human Investment which is business with large-scale + Follow procedure and implementation + Setting up project to the Bank for Investment resources and of construction projects correctly and Development of Vietnam is to get approval department, development of constructing office in Lenin Street Department of funds of the Follow the signed contract + Follow regulations on procurement, + Founding 01 more transaction office in Cua Lo General plan, on industry installation, and equipment Follow the Quarter IV, 2011 Quarter IV, 2012 signed contract Town, one transaction point at Le Hong Phong, Party A in installing 04 points of accepting payment cards construction POS and two ATMs 1.3 Arrangement, personnel works together Human - For individuals: To ensure the ability to Quarter resources promote creativity and initiative 97 IV, 2012 department - Add personal interests with business efficiency of their own Stage (2013 - 2014) 2.1 Focus strategy: - Gradually reducing the debt balance and mobilization from traditional customers; actively promoting marketing activities directed to the individual customers and small and medium size enterprises - Applying policies based on customer revenue Department of Advertising Risk costs - Customers who bring many benefits to are banks will apply preferential policies on management , annually Customers approved relations BIDV charges and service policies and service by policies and serving policies department contribution for each customer, - Concentrating on investment in the modern trade channel as Mobile banking, Auto bank, Internet banking 2.2 Product development strategy - Consolidating and forming marketing division under the Department of Planning - Capital Department of BIDV Vietnam general plan and define advertising - Perfecting, improving existing products and costs services towards application of information branch technology - Upgrading electronic banking services as - The function of this department is to of the marketing, the policy-mix research in and which product development are considered important priority - Increasing accuracy, safety, speed and 98 Quarter IV, 2013 Mobile banking, Home banking, Phone banking maximum utility to users - Concentrating on the development of new - The proportion of service revenue products and services through links with accounts for 30% in total revenue up of insurance companies, finance companies, 2.3 Network development strategy branch in late 2015 - Research and set up project is to build more rooms and trading transaction, in late 2014 established 02 more transaction offices in Nghi Loc district, Nam Dan, and a transaction in the Tran Hung Dao Street Installation of 04 extra points for accepting payment cards and three Human Investment - Following procedure formulation and Quarter resources and implementation of construction projects IV, 2014 - Following regulations on procurement, Quarter department in development combination funds of the installation and equipment and the IV, 2014 signed contract with Party A of industry construction ATM Actively completing Headquarter in Lenin Street Stage (2015) 3.1 Focus strategy: Department of Advertising - Step up advertising and propaganda - Automating processes in the banking business by deploying the same range of channels of modern electronic transactions as Auto bank, Internet banking, in addition to further strengthening the activities of - Confirming clear differences in the traditional general plan, expenses trading the branch department in combination quality of the service branches compared of to other commercial banks operating in the province - Forming and segmenting the group of customers, including small and medium with size computing 99 enterprises which are major Quarter IV, 2015 distribution channels are the trading room chamber customer groups and the largest proportion of the branch 3.2 Product development strategy - Forming main group of banking products, in which promoting products and Department of general plan BIDV Quarter and II, 2015 Vietnam branch services, striving to collect service income accounted for 70% of the branch - Developing derivative commodities, currency trading, insurance products 3.3 Network development strategy Human - Establishing 01 more transaction offices in Ben resources Thuy Investment - Following procedure formulation and Quarter and implementation of construction projects IV, 2015 - Following regulations on procurement, department in development - Installing additional 02 points to accept a combination funds of the payment card POS and ATM industry with Department of general plan 100 installation and equipment and the signed contract 3.5 Recommendations 3.5.1 For Congress, Government In order to implement the strategies as mentioned above, in particular, BIDV Nghe An and other banks in general need the active support from the National Assembly and Government, in which focuses on the completion of legal documents regulation of banking activities, create common legal framework, unity and equality for all bank activities Government must separate management functions for state banks, policy implementation functions for the cooperative banks and policy banks, and just focus on the business functions for commercial banks Government should build the roadmap to remove incentives for policy banks carefully, avoid causing unnecessary disturbance 3.5.2 For State Bank Of Vietnam Intensifying inspection and supervision activities, consolidation, reorganization and retraining the organizational structure of the State Bank of Vietnam should be done, including the banking system in the direction of Inspector streamlining, streamlined, effective result, effective and meet international practices Creating conditions for commercial banks is to develop business relations services as international settlement, foreign guarantees, factoring in foreign trade, foreign exchange business (especially business derivative instruments) to increase the proportion of service revenue in the bank's total revenues Providing information is related to the development situation, the products and services of commercial banks in the region and the world to the commercial banks in the country, trying to catch the trend of development as determined is its position in the process of international economic integration Research is done to submit to the Government for implementing the regulation of non-cash payments, introduction to open and use account in all activities required 101 payment, defining the maximum allowed level of cash payments, regulating the economic organizations that have to pay via bank 3.5.3 For Bank of Investment and Development of Vietnam BIDV Nghe An is a branch of the Bank for Investment and Development of Vietnam, all activities of the branch base on common goals of the system In order to be able to accomplish its strategy, we propose as follows: Perfecting the mechanism of financial quota system for member units towards accurately reflecting the environmental conditions of business, labor productivity, profit contribution per each branch to business performance of the whole system The allocation of the business plan for the branch should be based on actual needs of each unit, based on the economic growth of each area, the average balance of loans and deposit calculated on each worker, the average interest rate difference input output Expanding the scope of the assignment and authorizing for directors of the member units to be more active in their business activities In accordance with that, the Bank for Investment and Development of Vietnam should complete the inspection, internal control aiming at promoting the role of post-inspection departments to detect and prevent in time the risks which may play caused by abuse assignment and authorization Organizing and coordinating the member units in the same location is to avoid competition, enticing customers unhealthily 102 CONCLUSION Today, in the open economy, banks are always facing with the trend of globalization competition Foreign banks with strong financial resources, modern technology, qualified personnel, and technical excellence will be huge obstacles for local banks to overcome Therefore, it requires Vietnamese banks to renew quickly the technology, financial capacity, additional training of human resources quality, network development to expand the market share of capacity competition Therefore, banks need to build their own suitable business strategies to survive and grow Orientation of strategic objectives has been difficult, but identifying and selecting appropriate solutions to successfully implement the strategic goals is more difficult With this topic, the authors have identified the Bank for Investment and Development Nghe An branch a business strategy of key focus, product development, and network development The strategy can completely ensure the highest success for a commercial bank to become a professional mixed bank Authors also wish to affirm the role of strategic management for the formation, survival, and development of an organization The cause of stagnation in the process of operation organization and the declining competitiveness of the Bank for Investment and Development - Nghe An Branch compared to other commercial banks in the area is the weakness in governance strategy in general and orientation of business strategy The whole problem lies in cognitive abilities Correct perception of the role of strategic management is the key to enhance the competitiveness of an organization Assignment is the result of efforts of the whole groups, but hard to avoid certain shortcomings The team looks forward to receiving more feedback, teacher’s guidance, scientists, colleagues, and those who are interested to post more complete and meaningful in the real practice 103 REFERENCES Bank data about invesment environment in Nghe An - Source: Department of Planning and Investment in 2010 Le Van Hinh The participation of foreign partners in the domestic banking sector (quoting Proceedings of scientific conferences and scientific research institute of the bank) Statistics Publishing house, 2003 David A Aaker Implementing business strategy, Youth Publishing house, 2003 Fred R David Present essay on strategic management Statistics Publishing House, 2003 Michael E Porter Competitive strategy General City Publishing, 2006 Nguyen Hai San (2006), Introduction to management, Statistical Publishing house Nguyen Khoa Khoi Đong Thi Thanh Phuong (2007), Strategic manangement , Statistics Publishing house Paul H Allen Re-established banks Youth Publishing House, 2003 PGS.TS Le The Gioi, TS Nguyen Thanh Liem, ThS Tran Huu Hai (2007), Strategic manangement, Statistics Publishing house 10 Prof Ngo Kim Thanh, strategic management textbooks, the University of National Economy, Hanoi 2009 11 Prof Dr Dong Thi Thanh Phuong, MA, Nguyen Dinh Hoa, Tran Thi Y Nhi MA (2005), Strategic management textbook, Statistical Publishing house 12 Report on implementation roadmap of targeted programs - the evolution of banking services in the province in the period 2007-2010 in Hochiminh City of the State Bank of Nghe An 13 Report on business operation in 2007, 2008, 2009 and six months in 2010 the Bank for Investment and Development of Nghe An Branch 104 14 Report of the Executive Committee of Nghe An Provincial Party lock XVI Congress of the Provincial Party XVII 15 Report on monitoring and evaluating the overall investment to 06/30/2010 Nghe An province (05/8/2010 Report 536/BC-SKH on the Department of Planning and Investment and Nghe An) 16 Report on business registration in the province of Nghe An to 31/08/2010, forecast to end 2010 (Source: Department of Planning and Investment and Nghe An) 17 Report on the implementation of tasks by commercial banks located in the site in 2006, 2007, 2008 of the State Bank in Nghe An province 18 State Bank of Vietnam (2005), Materials of workshop builds strategy development services to banking in 2010 with a vision to 2020 19 State Bank of Vietnam (2005), document counseling on business strategy 20 Vietnam Banking Association (12/2006), the commitments of Vietnam and the Vietnam Bank joining WTO 21 WTO commitments of Vietnam Synthesized by the WTO and Ministry of Trade 22 Website: www.BIDV.vn;www.sbv.gov.vn;www.mof.gov.vn; www.moit.gov.vn; www.vneconomy.com.vn 105 APPENDIX Figure 2.1 Organizational structure of BIDV Nghe An BOARD OF DIRECTORS Professiona l competen ce BUSINESS CUSTOME R DEPAR TMENT INTERNATI ONAL PAYMENTS BOARD PERSONAL TRANSAC TION DEPAR TMENT RISK MANAGEMENT BOARD QLRR DEPARTME NT CUSTOMER RELATIONS BOARD SUBSIDIARY CUSTOME R RELATION S1 CUSTOME R RELATION DEPAR TMENT PERSONAL CUSTOME R RELATI ONS BUSINESS ADMINIST RATION INTERNAL CONTROL BOARD HUMAN RESOURCE DEPARTMENT TRANSACTION OFFICE OFFICES VINH MARKET TRANSACTION DEPARTMENT VINH STATION TRANSACTION DEPARTMENT DIEN CHAU TRANSACTION DEPARTMENT DEPAR TMENT NUMBER 1SAVINGS DESK SAVINGS DESK NUMBER 106 DEPARTMENT OF GENERAL PLANNING DEPARTMENT OF INSPECTION & TESTING Table 3.4 : Estimated financial criteria from 2011 to 2015 Unit : Billion VND No Criteria Total Assets 2011 2012 2013 2014 2015 2,840 3,200 3,616 4,133 4,753 Growth rate of total assets 11.4% 12.7% 13.5% 14.3% 15.0% Credit outstanding balance Growth rate of Credit outstanding balance Capital mobilization Growth rate of Capital mobilization Net income 2,700 3,000 3,375 3,814 4,329 13.0% 11.0% 12.5% 13.0% 13.5% 2,800 3,100 3,519 4,064 4,755 14.3% 10.7% 13.5% 15.5% 17.0% 54.6 60.7 67.7 76.0 85.4 Table 3.5 Income statement from 2011 to 2015 Unit : Billion VND No 2011 Items 2012 2013 2014 2015 Income from business activities Deposits 523.5 571.8 649.0 746.3 865.7 Interest expense 454.6 496.6 563.7 648.2 751.9 Gross profit from business activities 68.9 75.2 85.3 98.1 113.8 Services fee(net) 26.9 33.6 40.3 48.4 58.1 Other income 1.6 1.4 1.4 1.4 1.4 Expense from business activities 36.8 41.5 48.6 57.3 68.2 Risk provision 11 15 20 Net profit before tax 54.6 60.7 67.7 76.0 85.4 107 108 ... competitor Some banks, such as Asia Commercial Bank (ACB), Commercial Bank, Saigon Thuong Tin (Sacombank) has the capital contribution of foreign banks, corporate governance is improved, a number