Treasury Management Report

HANOI UNIVERSITY
FACULTY OF MANAGEMENT AND TOURISM

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Treasury management
activity in Agribank
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Tutor: Đào Thanh Bình
Group members:
Ngô Thùy Linh - 1404040066
Khuất Quỳnh Mai - 1404040133
Phan Thu Trang - 1404040123
Nguyễn Hải Yến - 1404040129

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Class: Tut 4 - FB14

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Ha Noi, May 19, 2017

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ABSTRACT
In Vietnam, Vietnam Bank For Agriculture and Rural Development has

always been the largest bank in terms of total assets, operating network and
customer base.. This report aims to analyze the bank’s position and the risks
that Agribank have to face based on the data collected from annual reports in
five years (2010-2014). Also with this purpose, the hedging tools available
are included in order to provide some solutions to reduce the risks. Although
this report surely cannot avoid mistakes and other limitations due to the
inadequacy of time and human resources, it is believed to bring to readers the
evaluation of Agribank’s performance and some useful information.

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TABLE OF CONTENT
ABSTRACT..........................................................................................................................................ii
I. INTRODUCTION............................................................................................................................1
II. OVERVIEW ABOUT VIETNAM BANK FOR AGRICULTURE AND RURAL
DEVELOPMENT................................................................................................................................1
III. DATA ANALYSIS..........................................................................................................................2

1. Current credit .......................................................................................................................................2
2. Liquidity ...............................................................................................................................................5
IV. SCENARIO ANALYSIS ...............................................................................................................6
V. HEDGING PROPOSAL.................................................................................................................8

1. Credit risk...............................................................................................................................8
2. Interest rate risk......................................................................................................................8
3. Liquidity risk..........................................................................................................................9
VI. CONCLUSION..............................................................................................................................10
REFERENCE.......................................................................................................................................11

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I. INTRODUCTION

Vietnam’s banking industry is the lifeline of the economy and the biggest driver of the country’s
growth. It plays a crucial role in the financial intermediaries system and is relied upon heavily
by the economy, largely as a result of an under-developed capital market. In recent years,
Vietnam’s financial sector has undergone a series of significant changes, which have led to
marked improvements.
In Vietnam, Agribank is the largest bank by most measures: capital, total assets, staff, operating
networks and clients. For deeper understanding, this report is dedicated to provide information
about bank position, and analysis of bank risks and loans based on the data collected from
Agribank’s annual report in the period of 5 years (2009-2014). We had analyzed some
components of the bank including current credit, liquidity and IRR. In the next step, scenario
analysis was applied for interest rate risk which strongly affected the bank’s performance.
Lastly, based on the information and figures collected, we stated some hedging proposal which
may support the bank in managing the risks. Conclusion and some recommendation are made in
last part of the report.
However, due to the fact that our report was accomplished in a limited time, possible errors
cannot be avoided. For this reason, we highly appreciate your comments and suggestions so as
to improve the quality of this and further projects.
II.

OVERVIEW

ABOUT

VIETNAM

BANK

FOR

AGRICULTURE

AND

RURAL

DEVELOPMENT

Name: Vietnam Bank For Agriculture and Rural Development
Headquarter address: No. 2 Lang Ha street, Ba Dinh district, Hanoi, Vietnam
Foundation date: March 26th, 1988
Vietnam Bank for Agriculture and Rural Development (Agribank) is the only 100% stateowned commercial bank in Vietnam. Since its establishment in 1988, Vietnam’s Agribank has
continuously played a key role in contributing to the development and significant achievements
of the country’s valuable agricultural industry.

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