BCTN tại Ngân hàng TMCP Phát triển TP HCM HDBank Thành Công
INTERNSHIP REPORT BANKING ACADEMY I Brief introduction of the Organization Business Sector Overview of the organization 1.1 Brief history Ho Chi Minh City Development Joint Stock Commercial Bank, abbreviated as HDBank, was founded on 4th January 1990; with its present head office based at 25 Bis Nguyen Thi Minh Khai, District 1, Hochiminh City HDBank is one of the pioneering joint stock commercial banks in Vietnam Its initial chartered capital is billion VND and it is responsible for mission of “providing international standard products and financial services, satisfying the various demands of customers” After 24 years, HDBank has achieved chartered capital of 8.100 billion VND, total assets of nearly 90.000 billion VND Its typical shareholders are Viet Nga Infrastructure Investment Corporation - SOVICO Holdings, Hochiminh Finance and Investment stateowned Company – HIFU, Tan Thuan Industrial Promotion Company – IFC, Thuduc Housing Development Corporation – Thuduc House, Saigon Real Estate Corporation – RESCO, Saigon Trading Group – SATRA and so on HDBank was equipped the modern information technology system – Core Banking – with international standard It also developed a network of about 200 branches and transaction offices available in most the largest economic centers of the country such as Hochiminh City, Hanoi, Danang, Nha Trang, Binh Duong, Can Tho with a total staff of about 4.000 people HDBank built up their reputation in finance and banking market, especially in credit field, developed a solid platform and overcame the difficult and challenging periods HDBank’s business operation including, mobilizing capital (short-term, mid-term, longterm in different methods such as limited, unlimited and certificates of deposits (CD); receiving investment and development capital from national organizations, borrowing DOAN THANH LAN – ATC A-K13 Page INTERNSHIP REPORT BANKING ACADEMY from another credit institutions), lending (short-term, mid-term, long-term), discounting commercial papers, bonds, executing interbank payment service, trading foreign currencies, bullion in domestic and foreign markets according to international standard, conducting international payment transactions, mobilizing capital from foreign countries and implementing another banking services in accordance with foreign banks With the rapid and strong development of HDBank during recent years, HDBank has achieved outstanding results, completed organization restructuring and accumulated financial resources, products, services, human resource, technology and so on to be ready to start a stronger developing stage of HDBank During its operation, HD bank has won a range of titles and awards from prestigious organizations nationally and internationally, including, “The best savings bank” (by Vietnam Economic Times), “Chief Security Officer (CSO) ASEAN Awards 2012” (by International Data Group - IDG), The Gold Award in “Annual Report Competition Vision Awards 2012,2011” (by League of American Communications ProfessionalsLACP), “High Straight-Through Rate for Payment Processing” (by Wells Fargo Bank), “Global Payments Excellence Award (by Citi Group), “Prestigious Southeast ASEAN Brand Award” (by Vietnam Intellectual Scientific Forum), "The best local Cash Management Bank" (by Asiamoney Magazine) and so on HD Bank sets out the strategy for 2014 of continuing effective and multi-functional operation target, providing the best service for corporations, investment and retail banking, international network development Therefore, HD Bank will focus on four specific action programs, which are, credit effectiveness; safe operation; service quality promotion and cost control HD Bank will endeavor to fulfill these criteria, including, total assets of 104.607 billion VND, mobilization of 76.000 billion VND; 53.700 billion VND in lending; pre-tax profit is 1.028 billion VND; ROA: 0.81%; ROE: 9.52% DOAN THANH LAN – ATC A-K13 Page INTERNSHIP REPORT BANKING ACADEMY 1.2 Nature of the organization As can be seen from the name “Ho Chi Minh City Development Joint Stock Commercial Bank”, its operation is the same as normal commercial banks Besides developing the general operation, HDBank orients to build a business culture which is energetic, transparent, humanistic and professional as well as promote social activities, contribute to protect national security In the market, HDBank possesses a lot of strengths, of which outstanding products are enterprise finance and individual customer products and services Since establishment date, HDBank always grew well at the activities of credit, capital mobilization as well as the other service activities such as guarantee, investment, international payment, etc For many years, HDBank has been on the top of the group of Joint-stock Commercial Banks and classified A level by the Bank of State In addition, HDBank has received high appreciation from experts about reputation, profession and product quality It becomes motivation for HDBank to reach the international market DOAN THANH LAN – ATC A-K13 Page INTERNSHIP REPORT BANKING ACADEMY 1.3 Business volume Figure 1: Some financial indicators in the period of 2009-2013 (Source: HDBank Annual Report) Unit: billion VND Items Total Assets 2009 19.127,427 2010 34.389,227 2011 45.107,227 2012 52.782,831 2013 86.226,641 Equity 1.796,164 2.357,637 3.547,632 5.393,746 8.599,548 1.550 2.000 3.000 5.000 8.100 17.131,668 30.494,410 39.686,417 46.368 76.304 Total operational income Total operational cost Profit before provision Cost of risk provision Profits after tax ROA ROE 492.643,740 710.598,660 1.246,686 1.522,408 - 200,459 337,907 594,603 796,522 1.010,000 292,185 372,692 652,083 725,886 396 37,280 21,960 86,107 298,736 - 194,205 269,409 426,496 326,431 217,000 1,02 % 12,12 % 0,78 % 12,99 % 0,95 % 14,2 % 0,9 % 9,12 % 0,57 % 5,66 % EPS 1.252,93 VND/share 70 points 1.347,04 VND/share 96 points 1.421,65 VND/share 120 points 653 VND/share 123 points - Chartered capital Deposit Number of transaction points DOAN THANH LAN – ATC A-K13 Page 190 points INTERNSHIP REPORT BANKING ACADEMY 1.4 Product lines HDBank services the product lines which were classified into types of customer: Retail Banking and Corporate Banking 1.4.1 Retail Banking: Accounts and deposits Current account • Current account • Progress account Fixed deposit • Prepaid interest deposit • Term deposit • Short-term Gold Certificate of Deposit Services Periodical payment Inward remittance Outward remittance Bill settlement Electric bill settlement Make a payment for VietJet Air tickets Loans: Personal installment loan Home construction/ repair loan Car loan Loan on mortgage/ Savings – book discount loan Study abroad loan Personal consumer loan Overdraft Home loan Securities loan Business financing Private enterprise loan Capitalization loan Cash advance of sale - stock Supporting Business capital loan DOAN THANH LAN – ATC A-K13 Page INTERNSHIP REPORT BANKING ACADEMY Business Installment loan Cards and other services: Card products • The identified domestic Debit Card • Prepaid card – HDBank gift card • Co-branded card Securities Card • HDBank Master Card international credit card • Smart card – HD Card E-banking • mBanking • eBanking • SMS Banking • Online payment • VnTopup • Inter-bank transfer via card 1.4.2 Corporate Banking: Mobilization and Financial Service: Current account • Current Account • Flexible Account • Progress Account • Deposit Account Term deposit • Term deposit • Term deposit with prepaid interest • Term deposit with flexible capital withdrawal • Short-term certificate of deposit • Automatic accumulation deposit account Financial Service • Cash collection • Cash payment • Bill collection • Bill payment • Payroll/ Commission services • Centralized deposit account Other services • Fax transactions • Electric Bill DOAN THANH LAN – ATC A-K13 Page INTERNSHIP REPORT BANKING ACADEMY Credit and Guarantee Working capital finance • Business production loan • Overdraft • Cashew nut loan • Rice loan Export finance • Export finance prior delivery • B/E and export documents discount • Loan guaranteed by export receivables Import finance • Import finance Medium – Long-term loan • Term loan for fixed asset/ project • Car loan • Special loan for small and medium enterprise (JBIC, JICA3) Banking guarantee • Domestic banking guarantee International settlement: Telegraphic Transfer (T/T) Cash against Documents (CAD) Documentary Collection Letter of Credit (L/C) Foreign currency trade: FX Spot Transaction FX Forward Transaction FX Swap Transaction E-banking: eBanking mBanking SMS – Banking Internet Banking DOAN THANH LAN – ATC A-K13 Page INTERNSHIP REPORT BANKING ACADEMY 1.5 Competitors: Competitors of HDBank are the joint-stock commercial banks in Vietnam, for example: Asian Commercial Bank, Sacombank, Techcombank, Eximbank, Dong A bank, Ocean bank, Military Bank, etc Organizational structure 2.1 Organizational chart: Figure 2: Organizational Structure of HDBank (Source: HDBank Annual Report 2012) DOAN THANH LAN – ATC A-K13 Page INTERNSHIP REPORT BANKING ACADEMY 2.2 Number of employees: Figure 3: The amount of staff (Source: HDBank Annual Report) Year 2009 DOAN THANH LAN – ATC A-K13 2010 Page 2011 2012 2013 INTERNSHIP REPORT Total employees (including its subsidiaries) BANKING ACADEMY 1.288 1.752 2.162 2.227 3.600 2.3 Main offices: Address: 25 Bis Nguyen Thi Minh Khai, District 1, Hochiminh City, Vietnam Tel: (08) 62 915 916 Fax: (08) 62 915 900 Website: www.hdbank.com.vn 2.4 Introduction of all departments: There are numerous departments of each division in HDBank Corporate Customer Division It includes departments: Policy and Product Development Department (Dept), International Payment Dept and Sales Management Dept This division provides banking services for corporations, acts as an intermediary for enterprises It includes ODA credit operations, large trading on the inter-bank market, co-financing activities and other activities Consumer Banking Division It includes departments: Product Dept, Sales Support Dept, Card Dept and Sales and Service Centre The customers are individuals, households and who have stable income at middle level and above, household business customers in production, sales, services, etc This division provides customers a product portfolio of standard service, diversification, multi-utility, applying international standard, at high quality, based on modern technology and appropriate for each type of customer in which focuses on developing strategic products DOAN THANH LAN – ATC A-K13 Page 10 INTERNSHIP REPORT BANKING ACADEMY Treasury Division Treasury Department Investment Department Risk Management and Control Division It includes departments: Risk Management and Control Division, Asset Evaluation Section, Legal Dept, Internal Control Dept and Non-performing loan Collection Dept This division plays an important role in monitoring the risks associated with all activities of the bank and acts as a strategy partner to the business units, give them advice on risk issues of their projects DOAN THANH LAN – ATC A-K13 Page 11 INTERNSHIP REPORT BANKING ACADEMY 2.5 Comments on the organizational structure: HDBank has an obvious organizational structure Each department of the bank has one heading person These departments also have been further departmentalized based on need to serve the customer with the best-quality services The departments in HDBank’s system are operated independently but have strong relationships, mutual support through regular meetings to implement the common targets of this bank II Internship activities A brief introduction of HDBank Thanh Cong With the promise of providing best benefits for customers, HDBank always concentrates on developing network as well as operation results On 26 th February 2011, HDBank opened two new offices in Hanoi HDBank Thanh Cong was one of them With modern and customer-friendly transaction office system, HDBank has been promoted service quality and become the destination satisfying all the demand of finance and banking of people 1.1 The organizational structure of HDBank Thanh Cong DOAN THANH LAN – ATC A-K13 Page 12 INTERNSHIP REPORT BANKING ACADEMY Figure 4: The organizational structure of HDBank Thanh Cong Head of Office Deputy-Head of Office Credit Accounting Treasury Sales Department Department Department Department 1.2 Some activities results of HDBank Thanh Cong Figure 5: The situation of capital mobilization at HDBank Thanh Cong (Source: Annual Report) Unit: billion VND 2012 Amount Total deposits 116.28 2013 Rate (%) 100.00 Amount 131.40 2012/2013 Rate (%) 100.00 Term Amount +/- times 15.12 1.13 - Non-term deposit 32.42 27.88 46.74 35.57 14.32 1.42 Term deposit 34.58 29.74 42.85 32.61 8.27 1.23 Escrow deposit 1.24 1.07 2.73 2.08 1.49 1.81 48.04 41.31 39.08 29.74 (8.96) -0.81 Source - Residents 25.48 21.91 31.98 24.34 6.51 1.25 Businesses 90.81 78.09 99.42 75.66 8.61 1.09 DOAN THANH LAN – ATC A-K13 Page 13 INTERNSHIP REPORT BANKING ACADEMY Figure 6: Outstanding loan on term Unit: billion VND Total outstanding loan Outstanding loan on term +Short-term +Mid and long-term 2012 41.92 2013 70 Margin (+/-) 28.08 0.00 9.26 32.66 21.40 48.60 12.14 15.94 Starting and ending dates of internship: Starting date: 20/02/2014 Ending date: 18/05/2014 DOAN THANH LAN – ATC A-K13 Page 14 INTERNSHIP REPORT BANKING ACADEMY Detailed description of the department student worked in during internship HDBank Thanh Cong was established and officially went into operation on 26 February 2011 and had registered office location in 101 & 201 – C18 Nguyen Hong, Lang Ha Street, Dong Da District, Hanoi, Vietnam HDBank Thanh Cong is one of transaction points of Hanoi branch At the beginning, I felt a little bit nervous when joining the internship program But after my first day at work, my nervousness disappeared The staffs at the bank were very friendly and kindly The working environment is very healthy and energetic I worked in Accounting Department which deals with the steps relating to all activities of accounting and direct transactions such as opening cards, savings book, introducing products, etc for both corporations and individuals I was guided to work and be responsible for the position of a teller My duty is checking the profile of customers who want to open cards or saving books If the documentary is efficient and legal, the other staff in this department will help me record and submit for approval to implement the next steps In addition, I also supported to check the accuracy of books and the conciliation at the end of day I gained the knowledge of accounting, how to use the banking software as well as how to avoid common mistakes I also understand more about the lessons that I learnt in the class DOAN THANH LAN – ATC A-K13 Page 15 INTERNSHIP REPORT BANKING ACADEMY III Critical analysis: Internship program helped me transform my academic knowledge learnt from various subjects into practical knowledge in HBank Thanh Cong This position requires the employees to be very good at communication skills, carefulness, proper understanding of the process implementing transactions In internship period, I was instructed about these skills I applied the theoretical concept of financial ratios which was taught in class to analyzing the financial statements in practical experience in HDBank Thanh Cong Achievements Thanks to advantages such as stable, steady business environment and attractive policies; moreover, DaiABank merger and SGVF acquisition, HDBank has many advantageous opportunities to approach customers in recent years There are some results below: The increase in total assets, chartered capital and transaction offices The expansion in customer categories The improvement of bank staff’s qualification In summary, HDBank has an impressive speed of development In comparison with other larger banks in Vietnam, HDBank is still a new bank However, HDBank has achieved great successes “The best savings bank” (by Vietnam Economic Times), “Prestigious Southeast ASEAN Brand Award” (by Vietnam Intellectual Scientific Forum), "The best local Cash Management Bank" (by Asiamoney Magazine) are the best proofs for HDBank’s efforts In this, HDBank Thanh Cong contributed by awards such as “Excellence Savings Office 2013" and “Excellence Mission Complete 2013” DOAN THANH LAN – ATC A-K13 Page 16 INTERNSHIP REPORT BANKING ACADEMY Limitations and causes 2.1 Limitations: Besides the great success that HDBank Thanh Cong has achieved in recent years, there still remain a lot of shortcomings that have negative impact on the development of HDBank Thanh Cong Lack of high-technology facilities The undiversified customer categories: HDBank provides services for both individuals and corporations; however, its main customers are still individuals 2.2 Causes: a Objective causes: HDBank Thanh Cong is a savings fund, mainly provides saving products, which is less attractive to businesses The competitiveness of banking system: the fast growth of domestic commercial banks and the appearance of foreign banks caused big challenges for HDBank The changes in economic situation in Vietnam and the world b Subjective causes: Lack of investment Some weaknesses of Sales Department SWOT Analysis of the organization: Strengths: Ability to limit the difficulties Board of Directors’ instruction, Board of Management’s dynamics Well-known and professional HDBank brand Stable and new organizational structure Effective operation High technology system Weaknesses: Lack of scientific organizational scale DOAN THANH LAN – ATC A-K13 Page 17 INTERNSHIP REPORT BANKING ACADEMY Less attractive reputation compared to large banks High margin fee Opportunities: Increasing demand of consumer banking: Trust and reliability creates chances to enhance deposit, lending and other services Increasing profitability: The vast network of domestic and overseas branches linking to transaction office can help to expand business DOAN THANH LAN – ATC A-K13 Page 18 INTERNSHIP REPORT BANKING ACADEMY Threats: Economic difficulties: Economic difficulties also affect the commercial banks, as incomes from services declined sharply Many customers tend to restrict the use of commercial bank services in order to cut their input costs In addition, the world’s economic problems also affect the enterprise in Vietnam due to high input costs Many companies go under and cannot adapt the high lending interest rates As a result, it is not easy for banks to find the proper borrowers in 2014 Risk of Defaults: The failure of projects can make the bank get into difficulties to recover their funds from these defaulters Trend of banks merging: There is a trend of mergers among the banks to become prominent in the market and to get the maximum market share This trend can result into the union of some leading banks which can give tough time to the bank and it will become difficult for the bank to compete with them Trust of customers: Recently, there were many scandals in banking field that make the belief of people in banking system go down Banks have to face with customer’s worries DOAN THANH LAN – ATC A-K13 Page 19 INTERNSHIP REPORT BANKING ACADEMY IV Conclusion The integration into the World Trade Organization (WTO) has had active impacts on Vietnam economy such as high foreign direct investment, expanded export and import market Besides opportunities, Vietnam is still facing a lot of challenges Taking advantages of chances, dealing with all difficulties are two top duties of our country With a view to supporting nation development, establishing a solid position in domestic and foreign financial market, HDBank in general and HDBank Thanh Cong in particular must be well aware of developing capital mobilization On the basis of various study method, theoretical knowledge, the internship report has already completed three main tasks First of all, the report has collected and analyzed theoretical problems about capital mobilization systematically then delved into researching this method After that, some financial and nonfinancial norms are introduced to show the real situation Moreover, the report has also mentioned subjective and objective factors influencing the quality of services Due to the limit of conditions and research time, graduation thesis still has a lot of insufficiencies It is my honor to give support and advice from all teachers and my school- fellows Hope that my report and petitions will make a small contribution to develop capital mobilization at HDBank Thanh Cong so that this bank can be improved much better in the near future As a consequence, Vietnam economy integrates more widely and deeply to the world economy in upcoming years DOAN THANH LAN – ATC A-K13 Page 20 INTERNSHIP REPORT BANKING ACADEMY V Recommendations for improving Completing organizational structure After M&A, HDBank needs to focus more on organizational structure Completing management system is necessary at this time Renovating technology and information network HDBank should attend to equip high technology and modern information network system in order to provide safest and effective products to various customer categories Improving the ability of managers and broadening professional knowledge for staff Training courses are available in almost organizations Nevertheless, with the demand of high quality staff, banks like HDBank need to hold training program frequently for staff as well as managers to get the best results in banking market Promoting reputation HDBank has many achievements in recent years To increase its competitiveness, this bank should build professional and energetic culture to boost HDBank reputation DOAN THANH LAN – ATC A-K13 Page 21 INTERNSHIP REPORT BANKING ACADEMY REFERENCES Ho Chi Minh City Development Joint Stock Commercial Bank (2009) Annual Report Ho Chi Minh City Development Joint Stock Commercial Bank (2010) Annual Report Ho Chi Minh City Development Joint Stock Commercial Bank (2011) Annual Report Ho Chi Minh City Development Joint Stock Commercial Bank (2012) Annual Report Ho Chi Minh City Development Joint Stock Commercial Bank (2013) Annual Report Website: http://wiki.answers.com Website: http://www.hdbank.com.vn DOAN THANH LAN – ATC A-K13 Page 22 ... of HDBank (Source: HDBank Annual Report 2012) DOAN THANH LAN – ATC A-K13 Page INTERNSHIP REPORT BANKING ACADEMY 2.2 Number of employees: Figure 3: The amount of staff (Source: HDBank Annual Report) ... E-banking: eBanking mBanking SMS – Banking Internet Banking DOAN THANH LAN – ATC A-K13 Page INTERNSHIP REPORT BANKING ACADEMY 1.5 Competitors: Competitors of HDBank are the joint-stock... structure of HDBank Thanh Cong DOAN THANH LAN – ATC A-K13 Page 12 INTERNSHIP REPORT BANKING ACADEMY Figure 4: The organizational structure of HDBank Thanh Cong Head of Office Deputy-Head of Office