Techcombank has recorded positive results in the first half of this year maintaining the leading CASA ratio of 46.1 per cent.

In a report released on Wednesday, Techcombank said its before-tax profit in the first six months of the year reached VND11.5 trillion (US$498.8 million). This was an increase of 71.2 per cent over the same period last year. Its total operating income (TOI) in the period grew 52.1 per cent year-on-year to VND18.1 trillion as net interest income (NII) and non-fee income (NF) both saw double-digit growth.

The bank’s securities-related fees, the largest component of NFI, grew 18.4 per cent in H1 from the same period last year, comprising VND420 billion in bond underwriting fees and VND865 billion in other services – including trustee, consulting, agency, brokerage and fund management fees.

Its bancassurance grew 60.1 per cent in annualised premium equivalent (APE) and net bancassurance fees grew 48.1 per cent year-on-year despite the impact of social distancing on in-person consultations.

Operating expenses were up 29.6 per cent year-on-year to VND5.2 trillion and cost income ratio (CIR) was 28.4 per cent as a result of COVID-19 related delays in IT and marketing investments.

Its provision expenses were VND1.4 trillion, 19.6 per cent more than in the same period last year.

Techcombank’s total assets ended in the first half of the year up 27.4 per cent to VND504.3 trillion while credit provided to customers as at 30 June was up 11.2 per cent to VND353.7 trillion. Retail loan pick-up in the second quarter of the year kept credit demand healthy.

Its outstanding credit to large corporates and small-medium enterprises (SMEs) grew 11 per cent from the end of 2020. Total deposits in H1 were also up 15.8 per cent year-on-year to VND289.3 trillion.

Techcombank maintained ample liquidity with a loan-to-deposit ratio (LDR) of 76.6 per cent. It remains one of Viet Nam’s best capitalised banks with a Basel II CAR of 15.2 per cent, higher than the Basel II Pillar I minimum requirement of 8 per cent.

Non performing loan (NPL) ratio was 0.4 per cent as at 30 June 2021, against 0.9 per cent last year. Restructured loans under Techcombank’s support programme for COVID-19 impacted customers fell to VND2.7 trillion, or 0.8 per cent of outstanding loans, with 67 per cent of these customers having recovered by the end of first quarter of the year.

“An expanding customer base and higher level of banking engagement in both retail and corporate sectors helped grow fee income. While we remain confident about medium and long-term economic prospects, COVID-19 continues to challenge some of our customers. This was exacerbated towards the end of the second quarter when the government mandated stricter social distancing to control recent outbreaks while ramping up its vaccination programme. As we have since the pandemic started, Techcombank remains focused on protecting our employees and providing customers with increasingly digital, branchless solutions,” said Jens Lottner, CEO of Techcombank. — VNS