Techcombank continues to lead the market with a healthy 3.1 per cent return on assets (ROA) for the last twelve months ended December 31, 2020. — VNS Photo

Techcombank has reinforced the strength of its customer centric strategy in delivering strong 2020 financial results.

The bank recorded before-tax profit for 2020 of VND15.8 trillion (US$688 million), up 23.1 per cent versus 2019 and 21.5 per cent higher than the full-year before-tax profit target approved at the Annual General Meeting of Shareholders (AGM).

The bank continues to lead the market with a healthy 3.1 per cent return on assets (ROA) for the last twelve months ending December 31, 2020. Capital position remains robust with Basel II CAR of 16.1 per cent at year end. These financial results complete the successful execution of the 2016-20 strategic plan and were achieved against the most challenging economic environment in Viet Nam in over a decade due to the COVID-19 pandemic. Together with the Government and broader banking sector, Techcombank took measures during the year to support the economy and share hardships with individual and corporate customers including introducing a comprehensive support package worth VND41.2 trillion for over 3,200 customers covering interest waiver, reduction and debt rescheduling.

“Against a challenging and uncertain operating environment in 2020, we took a number of measures throughout the year to support our customers and strengthen Techcombank’s balance sheet to weather the crisis. This included rescheduling loans for customers impacted by COVID-19, offering preferential interest rates, increasing liquidity to ensure we had ample credit for customers while accelerating write-offs to maintain healthy asset quality. Our 2020 financial results reinforce that the long-term growth drivers and business fundamentals for Viet Nam and Techcombank are intact. Going forward, we will continue to focus on the consistent execution of our strategy and invest in digitalisation to scale our business to meet the needs of our growing customer base. With our expanded leadership team and the capabilities and capital built over the last 5 years, coupled with the success of the Government in containing the impacts of COVID-19, we remain well positioned to deliver our 2021-25 strategy and vision of becoming the leading bank in Viet Nam,” said Techcombank CEO Jens Lottner.

The bank’s Total Operating Income (TOI) grew 28.4 per cent to VND27 trillion in 2020, outpacing an 18 per cent increase in operating expenses. Net Interest Income (NII) grew to VND18.8 trillion, up 31.5 per cent year-over-year (YoY). Total assets were VND439.6 trillion at the end of 2020, an increase of 14.6 per cent from 2019.

Techcombank maintained ample liquidity, exceeding regulatory requirements with a loan-to-deposit ratio (LDR) of 78.1 per cent and short-term funding to medium-to-long-term loans ratio of 33.9 per cent, improving from the 38.4 per cent at the end of 2019.

NPL ratio was 0.5 per cent as at December 31, 2020, against 0.6 per cent as at September 30, 2020 as the bank took proactive measures to write-off non-performing loans to strengthen its balance sheet against the potential economic impacts of COVID-19.

During 2020, Techcombank added 1.1 million net new customers to bring total customers served to 8.4 million. — VNS