Transcript Monthly meeting_2009.. - Cathay Life Insurance

MONTHLY REPORT August, 2009
Accounting, Finance and Investment
Presenter: Daryl Chen
Investment Dept.
28th Aug 2009
1
Outline
I. Activities and Achievements for this
month and Plans for next month
II. July Financial report summary
III. Economic indicators update
and market news
2
This month activities and Achievements
Accounting
1. Conducted the presentation on the payment guideline to
all departments to ensure the company regulation on
accounting to be complied strictly
2. Kick-off the 2010 budget, a short meeting on the
departmental expenditures have been arranged and the
2010 budget template has been released out for
forecasting
3
Next month plan
Accounting
 Follow-up and support the departments on the budget 2010
 The time line for the 2010 budget:
Early of Sep
Departments to submit the first draft budget
Mid of Sep
Accounting to work with each departments on the draft budget
End of Sep
Department to submit the final budget
Mid of Oct
Accounting to consolidate and submit the master budget to BOD
End of Oct
BOD to meet individual department
Early of Nov
To submit the 2010 budget to parent company
4
This month activities and Achievements
Finance
 Monthly tax reports : VAT, PIT, Withholding tax,
invoices using
 New policy issue of cash payment of insurance payment
 Registration for MOF invoice which is used for other biz
and apply for Certificate of income tax withhold
 Update and Notice to HR and Marketing Dept about PIT
regulation and compose internal procedures for
compliance
5
Next month plan
Finance
 Cooperate with IT to upgrade Finance system – Linking
data between accounting and Finance
 Process replacing cash payment of BM fund and Regional
fund by bank payment (Visa card)
6
News
Circular 160/2009/TT-BTC issued date 12
August 2009-PIT Exemption
1- Salary , Wages :
PIT exemption from Jan to June 2009
The time of payment : Latest 31 Dec 2009
2- Quarterly bonus:
PIT exemption for Q1 and Q2
The time of payment : Latest 31 Dec 2009
3- Yearly bonus:
50% bonus is non-taxable
The time of payment : Latest 31 March 2010
4- 2008 Salary, Wages:
-
Non-taxable if payment from Jan to June 2009
7
This month activities and Achievements
Investment
1) Following up international and domestic bond market,
including economic indicators and bond trading activities.
2) Acquire list of FMC key persons from parent company
3) Transfer all the portfolio to IVB on August 12th.
8
Next month plan
Investment
1. Keep following the macro economy and bond market.
2. Prepare documents related to FMC key persons and file
the application form to SSC.
3. Allocate time deposit tenor to meet cash flow needs in
the future.
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II. Jul 2009 financial income
Trend of revenue and expense from Jan 09 to Jul 09
YTD
120000
( mil VND)
25000
100000
20000
80000
15000
10000
60000
5000
40000
0
Jan
Mar
May
Jul
20000
Premiums
Invesmtnet
Expense
0
YTD
10
II. Jul 2009 financial income
( mil VND)
Expense performance
Sale expense
Administration expense
12,000
10,000
8,000
6,000
4,000
2,000
Actual
Ju
l
Ja
n
Fe
b
M
ar
Ap
r
M
ay
Ju
n
Ju
l
Ju
n
Ja
n
Fe
b
M
ar
Ap
r
M
ay
-
Budget
11
III. Economic indicators
Domestic Demand Indicator -- Positive
• Consumption generally accounts for 64% of overall GDP.
• Domestic demand remains strong. Retail sales rose 20% yoy
in July, compared with 21.4% increase in June
• Industrial output rose 7.6% in July from 8.2% in June
2005
2006
2007
2008
GDP
839.2
974.3
1,144
1,484
Private
consumption
533.1
617.2
741.9
958.3
(% of GDP)
63.5%
63.3%
64.9%
64.6%
Government
consumption
51.7
58.7
69.4
81.9
Gross fixed
investment
275.8
324.9
424.9
629.6
YoY
12
III. Economic indicators
Trade Balance –Neutral to Negative
• The trade balance slightly improved,
where the trading deficit tighten to 1bn
in July from 1.5mn in June.
Leading markets
2008
% of
total
US
20.6
• However, exports remained weak,
falling 28% yoy as global demand (eg
US, Japan, and Australia) struggled.
Japan
13.5
Australia
8.1
China
6.8
Jan
Feb
Mar
Apr
May
Jun
Jul
Exports, % y/y
-24.2
38.6
4
-2.1
-26
-26.1
-28
Imports, % y/y
-53.8
-29
-49.5
-24.7
-24.9
-20.1
-19.2
0.4
0.9
0.3
-1.1
-1.3
-1.5
-1
Trade Balance,
USD bn
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III. Economic indicators
CPI Pressure -- Negative
• Inflation fell to a five-year low of 3.3%(yoy) in July,
reflecting declines in transportation and telecommunication
costs, mainly due to the “base period” effect.
• However, monthly inflation remains elevated at 0.5% in July,
unchanged from June, which shows four consecutive months
growth from April
CPI
Oil Price
$70 USD/ Barrel
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Ⅳ. Market News
USD/VND rate
Exchange rate:
-Commercial banks still quoted the
exchange rate at the ceiling rate set by the
SBV, commonly at 17,810 – 17,820
-Black market: softly decreased 50 – 100
VND, around: 18,300-18,400
Trading band adjustment rumor
-Recommended by National Center for Socio-economic Information
and Forecast (NCEIF) to expand the trading band to 6-7% ( vs 5%
currently ) in order to boost export volume.
=> Still show signs of weakness of VND and lack of USD in banking
system
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Ⅳ. Market News
1. Money market: Deposit rate of VND -- and USD /
 VND：Despite recent increase in VND time deposit rate, huge capital
needs by banks may slow down due to oncoming end of loan subsidy.
There is no incentive to attract more funds unless further extension
is announced by government.
 USD： USD Deposit rate was slightly up because of insufficient USD
in banking system.
The average mobilizing rate is quoted as follows (source: SBV):
The average
mobilizing rate
Currency
Demand
(% p.a.)
3 months
(% p.a.)
6 months
(% p.a.)
12 months
(% p.a.)
Group of state- owned
commercial banks
VND
2.4-3.0
7.5-8.0
7.9-8.2
8.2-8.5
USD
0.1-0.5
1.1-1.3
1.2-1.4
1.5
Group of joint-stock
commercial banks
VND
2.4-3.6
8.0-8.4
8.3-8.5
8.5-8.7
USD
0.1-0.5
1.2-1.7
1.4-2.0
1.8-2.5
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Ⅳ. Market News
 Interest rate of government bonds is set to rise in 2H of 2009
due to following reasons：
1. Heavy issuance ( Successful issuance is only 13% of auction)
2. CPI is set to rise, starting from Sep or Oct.
3.
Rising ceiling rate of primary auction
5y Bonds
Across the tenors
17
Ⅳ. Market News
Update on the 4% loan subsidy programs of 1bio USD (equals to
around VND 425 trillion of total loan size )
 Remaining amount for programs is only around 30 trillion,
which means Government needs to have another stimulus package
to support economy and enterprises.
Loan Subsidy Schedule
Loans by enterprises
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～～ The End ～～
Thanks for your attention
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