Vietnam Technological and Commercial Joint Stock Bank (Techcombank - HoSE: TCB) has just announced its business results for the fourth quarter and the whole year of 2023.
Accordingly, at the end of the fourth quarter of 2023, Techcombank recorded net interest income of VND 7,597 billion, an increase of 11.4% over the same period last year. Other business activities also brought this bank a positive profit.
During the period, net profit from service activities reached VND2,496 billion, up slightly by 1.5% compared to the same period last year. Notably, net profit from foreign exchange trading, trading of business securities and trading of private securities all recorded a sharp increase, reversing from negative to positive.
Specifically, Techcombank's net profit from foreign exchange trading activities reached nearly VND313 billion, securities trading activities also brought in a profit of VND32 billion and investment securities trading activities brought in a profit of VND247.5 billion. Meanwhile, in the same period last year, these activities caused Techcombank to lose VND421 billion.
Only other business activities recorded a net profit decrease of 37.6% compared to the same period last year to nearly 309 billion VND.
Thanks to improved net interest income and non-interest income, Techcombank's total operating income in the fourth quarter of 2023 reached more than VND 11,000 billion, up 17.8% over the same period last year.
In the context of bad debt at many banks tending to increase at the end of the third quarter, Techcombank has strengthened the bank's risk provisioning buffer in the fourth quarter of 2023 to VND 1,634 billion, an increase of 136.5% over the same period. Thanks to that, at the end of the year, Techcombank's bad debt coverage ratio increased to 102%.
After deducting provision expenses, Techcombank's pre-tax profit in the fourth quarter reached VND5,773 billion, up 21.6%; corresponding after-tax profit reached VND4,482 billion, up 25.5% over the same period last year.
Accumulated for the whole year, Techcombank's net interest income reached VND27,691 billion, down 8.6% compared to 2022. The bank reported pre-tax profit of VND22,888 billion, down 10.5%; corresponding after-tax profit was nearly VND18,191 billion, down 11% compared to the previous year due to provision expenses increasing from VND1,936 billion last year to VND3,921 billion.
In 2023, Techcombank set a pre-tax profit target of VND22,000 billion. Thus, by the end of the year, the bank had achieved 104% of its profit target.
As of December 31, 2023, Techcombank's total assets were recorded at nearly VND849,500 billion, up 21.5% compared to the end of last year. Customer deposits were at VND454,700 billion, up 26.9% compared to the beginning of the year.
Techcombank's demand deposit balance reached VND181,500 billion, up 37% over the same period and corresponding to a rate of 39.9%.
On this day, the bank's customer loans increased by 23.3% to VND518,642 billion. The bank's total bad debt was VND5,999 billion, of which substandard debt (group 3 debt) increased by 105.8% to VND1,857 billion.
Doubtful debt (group 4 debt) increased by 144% to VND2,762 billion. The bank's debt with the possibility of losing capital (group 5 debt) also increased by 38% to VND1,380 billion.
By the end of 2023, Techcombank's number of employees had decreased by 770 compared to the beginning of the year to 11,614. However, the average cost for employees has improved to VND 46 million/person/month .
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