Techcombank posted a record pre-tax profit of more than VND10.6 trillion (around US$457 million) in 2018, representing a 31 per cent year-on-year increase.

Techcombank is the first private bank in Viet Nam to achieve profit of over VND10 trillion.

Its total operating income (TOI) rose by 10 per cent from the previous year to VND16.9 trillion.

These achievements were driven by growth across all business divisions, including bank-wide credit growth of 20 per cent in 2018 while asset quality remained healthy with non-performing loans (NPLs) ending the year at 1.8 per cent. Lower credit costs and disciplined expense management also contributed to the record profits.

In 2018, Techcombank’s retail banking division delivered record results, growing on the foundations set from previous years. Mortgage lending climbed by 20 per cent, leading to retail loans contributing 45 per cent of the total lending portfolio. In addition, retail deposits rose by 17 per cent year-on-year, with a record high current account saving account (CASA) ratio of 28.7 per cent of total bank deposits. Also in 2018, Techcombank became the number one franchise for Visa credit and debit cards and maintained its leading position in bancassurance.

Techcombank achieved strong growth from corporate small-and-medium sized enterprise (SME) customers, with loan balances and revenues growing by 49 per cent and 33 per cent, respectively. The strong business banking financial performance resulted from a series of transformation initiatives aimed at improving customer satisfaction, employee training and development, credit risk, and operations process improvements.

Its return on average equity (ROAE) and return on average assets (ROAA) reached 21.5 per cent and 2.9 per cent, respectively.

In line with the State Bank of Viet Nam (SBV)’s direction of growing corporate bonds to 20 per cent of GDP by 2030, Techcombank issued more than VND60 trillion in corporate bonds ($2.6 billion) to support the funding needs of large corporations, representing 82 per cent year-on-year growth.

“Supporting corporate funding needs through capital markets is a key part of our balance sheet re-alignment strategy,” said Techcombank’s CEO Nguyen Le Quoc Anh.

“In the past year, we have focused on services for customers, especially individual customers. We have also developed online and mobile services for SME customers to help them access cheaper and more convenient services. This is why one of the bank’s great successes that the amount of non-term deposits, equal to 29 per cent of total deposits. This reduces the cost of funding for the bank,” he added.

Trinh Bang, Techcombank’s CFO, said the bank closely followed its business plans approved at its shareholder meeting in 2018 to create growth in all of its business sectors.

“The TOI increase of 10 per cent is a positive figure showing the effectiveness of our strategic steps,” Bang said.

He added that while the bank’s interest income has been growing well in recent years, revenue from non-interest payments has been making great contributions to its results, and remains a strategic priority.

Tran Thi Minh Lan, head of the Strategy and Development Division, said the bank had focused its services on six economic sectors including housing, auto, financial services, travel and leisure, food and beverage, utilities and telco.

Through its 314 branches, Techcombank services the financial needs of more than five million retail and corporate customers by offering convenient credit card services, zero-fee online banking transactions, and a range of mortgage products to help customers achieve lifelong dreams of homeownership.

The Q4 financial performance continued the record of 13 consecutive quarters of year-on-year revenue growth. This steady performance is a key to building a solid and stable bank to serve the Vietnamese people and business communities.

“We are very proud of our contribution to the continued growth of Viet Nam’s economy,” Anh said.

Last year, in addition to marking its 25th anniversary, Techcombank also completed a very successful capital raising campaign. This helped Techcombank to improve its capital position and increase its capital adequacy ratio to meet the first pillar of Basel II standards. Current equity levels will enable the bank grow for years to come, ensuring better services for customers.— VNS