Techcombank targets market capitalisation of US$20 billion in 5 years

Sunday, Apr 25, 2021 15:16

Jens Lottner, Techcombank’s general director at Techcombank's 2021 Annual General Meeting of Shareholders. — Photo courtesy of the bank

Techcombank (TCB) aims to become the leading bank not only in Viet Nam but also in the Top 10 in ASEAN, with a market capitalisation of US$20 billion in the next five years.

Accordingly, its return on equity (ROE) would be at 20 per cent, Total Operating Income (TOI) at 30 per cent and current account savings account (CASA) ratio at 55 per cent.

The information was released at its 2021 Annual General Meeting of Shareholders (AGM) held in Ha Noi on Saturday. The shareholders approved all resolutions presented, including the 2021 business plan.

Ho Hung Anh, Techcombank’s chairman, said the bank expected before-tax profit of VND19.8 trillion in 2021, up 25.3 per cent from last year. Its total credit is projected to increase 12 per cent year-on-year to VND356.1 trillion, or higher, in line with any quota that may be granted by the State Bank of Vietnam. Deposits are expected to reach VND334.2 trillion, increasing 14.7 per cent from the previous year. It will be managed in accordance with actual credit growth as part of the bank’s Asset Liability Management (ALM). Techcombank plans to keep non-performing loans (NPL) below two per cent.

Techcombank reported that it will increase charter capital to VND35.1 trillion, an increase of 0.17 per cent in conjunction with the planned issuance of six million ESOP shares.

Techcombank delivered strong results in 2020, despite an unprecedented and unpredictable economic environment. The bank posted VND15.8 trillion before-tax profit, representing a 23.1 per cent year-on-year increase and VND27 trillion of TOI, up 28.4 per cent from last year. Return on Assets (ROA) improved to 3.1 per cent, and CASA ratio (46.1 per cent) was the highest amongst local peers. Techcombank reported a 16.1 per cent Capital Adequacy Ratio (CAR), 0.5 per cent NPL ratio and 171 per cent loan loss coverage ratio, indicating healthy asset quality and prudent risk management.

Techcombank shared its next 5-year strategy (2021-25) and updated its Vision and Mission statement to “Change banking, change lives”, helping Vietnamese people and businesses achieve their full potential.

Jens Lottner, Techcombank’s general director, said the bank plans to accelerate the key foundational investments to enable business models in line with its vision. It will double down on the biggest opportunities such as CASA, mortgages, real estate value chain and wealth management (bonds, funds, bancassurance). It will also continue to diversify into other areas towards risk-return optimisation and participating in emerging opportunities.

In 2020, Techcombank's market capitalisation reached $5 billion and is currently at $6 billion. These are the numbers that show a sustainable move for Techcombank, he added.

He affirmed that Techcombank could reach a market capitalisation of $20 billion in the next five years as it is continuing to maintain the pre-tax profit growth rate of 23-25 per cent a year. The bank has a very clear plan to achieve this goal.

Techcombank has supported impacted customers, employees and the broader community during the pandemic. So far, the bank has responded with a VND41 trillion support package, which includes debt moratoriums, interest waivers, interest reductions, and has helped over 3,200 customers. — VNS

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