Techcombank reports extraordinary first nine months of 2019

Techcombank recorded a new record in pre-tax profit in the first nine months of the year

Techcombank (TCB) continues to march towards its 2019 target, reporting a revenue of VND14.4 trillion ($626.1 million) and pre-tax profit of VND8.9 trillion ($386.96 million) for the first nine months of 2019, up 29 and 19 per cent, respectively, over the same period last year.

Deposits reached VND218.7 trillion ($9.5 billion), helping the bank maintain ample liquidity and translating into a loan-to-deposit ratio of 70.9 per cent, much below the State Bank of Vietnam's (SBV) limit of 80 per cent. The ratio of short-term funds to medium-to-long-term loans stood at 36.1 per cent, exceeding regulators’ liquidity requirement. The non-performing loan (NPL) ratio remained at 1.8 per cent thanks to prudent risk management.

Net interest income reached VND10.1 trillion ($439.13 million), up 24 per cent on-year as a result of robust credit growth from 2018, and lower funding costs since the beginning of the year. Techcombank expanded its credit balance by 12.5 per cent, outpacing the industry’s average. Non-interest income increased by 9 per cent on-year to VND4.3 trillion ($186.96 million) and represented 30 per cent of the total revenue.

Provision expenses declined by 66 per cent as the bank continues to benefit from healthy asset quality. The cost-to-income ratio remained stable at 34.5 per cent, well within the bank’s initial target.

Total assets grew by 15 per cent from year-end 2018 to reach VND367.5 trillion ($15.98 billion), primarily driven by robust loan growth of 28.4 per cent. CASA balance grew by 13 per cent since the beginning of the year, significantly faster than the deposit growth of 8.6 per cent, and helped the Bank achieve a CASA balance to total deposits ratio of 30 per cent. Altogether, return on assets of 2.8 per cent ranks highest among peers.

Basel II CAR at the end of the period was 16.5 per cent, more than twice the Basell II Pillar I minimum requirement.

Given the impressive growth over the years, Techcombank was also included in the Top 3 of the 500 most profitable private enterprises in 2019 (the Vietnam Profit500), selected by VNReport. Also in September, Techcombank was honoured the “Vietnam House of the Year” by Asia Risk.