Techcombank announced third quarter profit of VND22,800 billion

Techcombank's pre-tax profit reached VND22,800 billion and total operating income (TOI) reached VND37,400 billion in the first 9 months of the year, up 33.5% and 28.9% year-on-year, respectively. The bank continued to be in the leading group in terms of demand deposit ratio (CASA) at 40.5%, thanks to a record high CASA balance of VND200 trillion. Capital adequacy ratio (CAR) according to Basel II continued to increase to 15.1% and return on assets (ROA) continued to maintain its leading position in the industry, reaching 2.6%. In addition to prestigious awards in the field of human resources, Techcombank's credit rating was upgraded by FiinRatings to AA-, "Stable" outlook based on positive results in capital mobilization and liquidity. Positive business results Techcombank's business results in the first 9 months of the year were recorded positively thanks to growth in interest income and cost management. In the first 9 months of 2024, Techcombank's net interest income (NII) reached VND 26.9 trillion, a positive growth of 33.9% over the same period last year. NIM (12-month trailing) remained at 4.3%, flat compared to the previous quarter and up from 4.1% in the same period last year. Notably, Techcombank's service income (NFI) recorded an increase of 17.1% to VND 8.3 trillion, of which the positive increase from Investment Banking Service Fees reached VND 2,541 billion, up 110.6%.

Some other fee-based activities of the bank also increased significantly, such as insurance service fees reaching VND594.1 billion, up 29.8%. This growth rate reflects the difference in tailor-made products for Techcombank's customer needs as the market witnessed the gradual return of consumer confidence, although still at a relatively low level.

At the end of September 2024, Techcombank's total assets reached VND927.1 trillion, up 9.1% year-on-year and 18.7% year-on-year. For the Bank alone, credit grew 17.4% year-on-year to VND622.1 trillion. On a consolidated basis, personal credit was the driving force behind growth in the third quarter. Personal customer loans increased by 6.0% quarter-on-quarter, double the growth rate of corporate customer loans (including loans & corporate bonds). Specifically, personal credit growth was driven by home loans, up 6.6% quarter-on-quarter and 13.2% year-on-year to a record high of VND193.6 trillion. Notably, the balance of prepayments for home loans fell to its lowest level in a year, while the disbursement volume in the quarter continued to reach a high level of more than VND28 trillion. Corporate credit recorded an increase of 2.9% compared to the previous quarter and 16.3% compared to the beginning of the year to VND 395.1 trillion. The credit diversification strategy recorded positive developments when real estate credit remained flat compared to the previous quarter. Techcombank also recorded positive growth in customer deposits. Since its announcement in January 2024, Techcombank accounts opening the "era of automatic profit" have attracted attention and generated the best profits for customers. The third quarter results showed that the bank received specific "sweet fruits" with Techcombank's CASA balance (including "Automatic Profit" balance) reaching a record high of VND 200.3 trillion, contributing to raising the CASA ratio to 40.5%. In total, customer deposits reached VND 495.0 trillion, up 8.9% compared to the beginning of the year and 21.0% compared to the same period last year. Techcombank's operating expenses increased slightly by 10.2% to VND10.6 trillion. In the third quarter alone, these expenses decreased by 5.5% compared to the previous quarter and by 13.1% compared to the same period last year to VND3.4 trillion. As a result, the cost/income ratio (CIR) for the first 9 months of 2024 remained stable at 28.4%. Provision expenses were recorded at VND3,964 billion, up 73.4% YoY. Techcombank's bad debt coverage ratio grew positively to 103.4% at the end of September 2024, from 101.0% at the end of June 2024. Leading in capital adequacy and digital banking Techcombank's capital position remains strong, with a loan-to-deposit ratio (LDR) of 82.2% as of September 30, 2024, below the ceiling of 85% prescribed by the State Bank of Vietnam (SBV). The ratio of short-term capital used for medium- and long-term lending stood at 24.2%, unchanged from the same period last quarter. The Bank's Basel II capital adequacy ratio (CAR) improved to 15.1% as of September 30, 2024, much higher than the requirement of Pillar I, Basel II (8.0%) and in line with the target threshold of 14-15%. The NPL ratio in the third quarter increased slightly to 1.35%, from 1.28% at the end of the previous quarter. Of which, the NPL ratio before the impact of CIC was only 1.16%. Techcombank ended the first 9 months of 2024 with more than 14.8 million customers, attracting nearly 500,000 new customers in the quarter. 57.4% of individual customers joined through digital platforms and 42.1% from branch channels, especially thanks to the program to expand the retail customer group (merchant). Continuing to lead as one of the best digital banks in Vietnam, Techcombank recorded the number of individual customer transactions via electronic banking channels reaching 850.5 million in the third quarter of 2024, up 8.9% compared to the previous quarter and up 47.2% compared to the same period last year. The total transaction value via electronic banking channels in the third quarter reached VND 2.7 million billion, up 10.7%. In the first 9 months, the volume and value of individual customer transactions via digital channels reached 2.3 billion transactions and VND 8.2 million billion, respectively recording growth of 53.5% and 20.3% over the same period last year.

According to Mr. Jens Lottner - General Director of Techcombank: In the third quarter of 2024, Techcombank continued to record outstanding business growth results with indicators maintained in the group of top-performing banks in the market. At the same time, this quarter also recorded new steps of the Bank, especially in the insurance business segment, with two important events in October: Techcombank reached an agreement to terminate the exclusive partnership with Manulife, and at the same time announced its capital contribution to establish Techcom Non-Life Insurance Joint Stock Company (TCGIns). These are important steps for Techcombank in its strategy to expand the ecosystem, serving more customers with more comprehensive financial and insurance products. TCBS completed 105% of the plan, attracting more than 86,400 new customers. In particular, in the third quarter of 2024, TCBS recorded VND 1,097 billion in pre-tax profit (flat compared to the same period last year and down 31.9% compared to the previous quarter), bringing the cumulative profit in the first 9 months of 2024 to VND 3,869 billion, completing 105% of the yearly plan. TCBS continues to consolidate its position in securities brokerage with this being the 4th consecutive quarter that TCBS has maintained its position in the top 3 securities companies with the largest brokerage market share on the HOSE floor (7.09%). At the same time, TCBS also maintained its 2nd position on the HNX floor (7.89% market share) for the 3rd consecutive quarter. This shows that TCBS is the top choice of investors thanks to its service quality and Zero fee strategy. In the first 9 months of 2024, the volume of bonds issued by TCBS reached about 40 trillion VND, equivalent to 44% of the market share (excluding bonds issued by banks). Also during this period, the volume of bonds distributed by TCBS reached more than 57 trillion VND, an impressive growth of 52.1% YoY, reflecting the high demand of customers for this type of bond asset. Strong investment in technology infrastructure has helped TCBS bring outstanding experiences to customers. In the first 9 months of 2024, the TCInvest system recorded impressive performance with more than 86,400 new customers, an average of 166 million visits per month. User satisfaction with the TCInvest application on Appstore and CHPlay maintained a high score of over 4/5. TCBS continues to affirm its pioneering position in the Fintech field by applying Generative AI (Gen AI) technology to many breakthrough solutions, bringing outstanding experiences to customers. In the third quarter, the bank continued to spread the spirit of sportsmanship, humanitarian meaning, and connect with the community through the 3rd Techcombank Hanoi International Marathon attracting more than 10,000 athletes from 42 countries. Not only that, facing Typhoon Yagi and its post-typhoon variations, Techcombank quickly donated 3 billion VND to support compatriots through the Vietnam Fatherland Front and committed to contributing an additional amount of money from employees to double this support. Constantly aiming for a “superior version”, on the occasion of its 31st anniversary, Techcombank has actively spread the brand story of “moving towards a more superior version of you” to the community and implemented many meaningful programs, affirming its strong commitment to building an organizational culture that facilitates the development of human resources - one of the three strategic pillars of the bank. Accordingly, Techcombank has been recognized by international organizations for its achievements in human resources activities: Stevie Awards for Great Employers 2024; Silver Award - Employer of the Year in the Banking industry; Bronze Award - Achievements in applying technology in the field of human resources, “Best Workplaces in Asia” Award - awarded by the prestigious organization Great Place to Work - for the second consecutive year. Source: https://vov.vn/doanh-nghiep/doanh-nghiep-24h/techcombank-cong-bo-loi-nhuan-quy-3-dat-22800-ty-dong-post1130046.vov