Techcombank achieved before-tax profit of VND14.1 trillion (US$601.5 million) in the first half of the year, posting a 22.3 per cent year-on-year increase.
The bank on Thursday announced a strong set of financial results for the six months of the year. Strong net interest income (NII) and net fee and commission income (NFI) growth drove a 16.6 per cent year-on-year uplift in total operating income (TOI) to VND21.1 trillion.
NII expanded 25.1 per cent year-on-year to VND15.9 trillion, primarily driven by the growth of credit book with net interest margin (NIM) stable at 5.6 per cent.
Techcombank’s total assets grew 23.7 per cent to VND623.7 trillion by 30 June 2022. At the bank-only level, customer credit grew 8.5 per cent in the first half of the year to VND421.2 trillion, reflecting healthy demand across all segments.
Customer deposits were VND321.6 trillion in the six-month period, up 11.2 per cent year-on-year, of which term deposits were VND169.0 trillion. The bank’s current account savings account (CASA) was VND152.7 trillion in the first six months of the year, increasing 14.4 per cent from the same period last year. CASA ratio lowered to 47.5 per cent as customers increasingly sought to redeploy their CASA into investments, notably real estate and securities trading.
At 15.7 per cent, the bank’s capital adequacy ratio (CAR) was well above the Basel II Pillar I minimum requirement of 8 per cent and had increased from 15.1 per cent by 31 March 2022.
In the second quarter of the year, the bank’s non-performing loan (NPL) ratio was 0.6 per cent, with a healthy coverage ratio of 171.6 per cent, reflecting its asset quality and stability during and post-COVID-19 pandemic.
Jens Lottner, CEO of Techcombank, said: “Techcombank extended its strong momentum during the second quarter of the year, navigating a significantly more volatile environment. Our core revenue engines continued to perform well, with credit demand and margins remaining high and strong double-digit growth from key fee drivers. Notably, we were able to accelerate credit exposure diversification toward retail customers, who at the end of June accounted for 46.6 per cent of our credit balances, up from 38.8 per cent at the end of March.”
“During the second quarter of the year, we advanced several digital initiatives to bring simple and intuitive “Banking at your fingertips” solutions to our customers. We launched a new mobile app for business customers and migrated over 70 per cent of our active retail customers to our new retail banking app,” he added.
The bank ended the second quarter of the year with 10.1 million customers, adding over 0.2 million in the last quarter. The number of retail customer transactions through e-banking channels grew to 206.1 million during the period, up 28.8 per cent year-on-year.
Last month, Techcombank successfully concluded a landmark $1 billion syndicated loan facility, setting another milestone in its offshore fund-raising activity. This is to date the largest-ever medium and long-term syndicated loan for a Vietnamese financial institution.
In 2022, Techcombank plans to achieve pre-tax profit of VND7 trillion, up 16.2 per cent compared to 2021. Credit is expected to increase by 15 per cent to VND446.6 trillion or higher, within the level prescribed by the State Bank of Viet Nam. Customer deposits will grow in line with actual credit. Techcombank plans to maintain the bad debt ratio below 1.5 per cent. — VNS