Techcombank champions 15 consecutive quarters of revenue growth

Financial highlights

The Asian Banker recently recognised Techcombank as the Best Payments Bank in Vietnam in recognition of the bank’s leadership in payment solutions

The bank's (TCB) net interest income reached VND6.5 trillion ($282.61 million) for the first half of 2019, up 28 per cent on-year. Net fee income was up 19 per cent on-year which was underpinned by the robust growth in bancassurance and bond advisory, which grew by 34 and 82 per cent on-year, respectively.

A 77 per cent decrease in provision expenses combined with a cost-to-income ratio of 35 per cent helped contribute to record first-half results and return on assets of 2.7 per cent.

Total assets grew by 12 per cent over the past six months to reach VND360.7 trillion ($15.68 billion) with credit growth also expanding by 12 per cent. Customer deposits increased by 9.4 per cent and CASA as a percentage of total deposits stood at 30.4 per cent at the end of the second quarter.

This came as a result of the bank’s consistent efforts to increase customer engagement via fast, convenient digital solutions. The Asian Banker recently recognised TCB as the Best Payments Bank in Vietnam in recognition of the bank’s leadership in payment solutions in both retail and corporate banking in Vietnam.

Liquidity and credit quality remains healthy

Deposits rose to VND220.3 trillion ($9.58 billion), helping the bank maintain ample liquidity and translating to a loan-to-deposit ratio of 65.9 per cent, well below the SBV's limit of 70 per cent. Short-term funds to medium-to-long-term loans ratio stood at just over 37.6 per cent, again below the SBV limit of 40 per cent.

At the end of the second quarter, the NPL ratio stood at 1.8 per cent, which remains within the target and reflects the ongoing focus on prudent risk management and balanced growth.

Basel II implementation

The strong financial results were achieved as the bank received approval from the State Bank of Vietnam (SBV) to implement Basel II capital standards. TCB’s CAR ratio of 15.6 per cent for the most recent quarter is nearly double the minimum requirement from the SBV on CAR Basel II ratio, which is regulated at 8 per cent.

“Our recent business results match our five-year strategic plan. We continue to focus on our business strategy of putting customers at the centre of everything we do,” shares Nguyen Le Quoc Anh, CEO of Techcombank.

“In line with this strategy, we are making good progress in managing our balance sheet, diversifying our revenue streams, and building our capability in people, systems, and processes. We are thrilled by the growth we see through our digital solutions and will continue to invest further as we help the Vietnamese people change the way they use money. Our recent approval from the SBV for early adoption of Basel II reflects our proactive implementation of prudent risk and balance sheet management to support our long-term low risk, high return business model.”