According to the recently released financial report, Techcombank's business performance indicators all grew impressively in the fourth quarter, helping total operating income grow by 17.8% over the same period. In addition to the CASA ratio increasing sharply from 33.6% at the end of the third quarter to 39.9% at the end of the fourth quarter, Techcombank also continued to maintain its leading position in the industry in terms of capital adequacy ratio (CAR), at 14.4%.
Service revenue for the whole year of 2023 increased by 9.5% to VND 10.2 trillion. In particular, service revenue in the fourth quarter increased by 14.2% to VND 3.1 trillion, the best quarter in the bank's history. The driving force for strong growth in service revenue came from card service revenue, which increased by 33.7% to VND 2,148 billion last year; revenue from letters of credit (LC), cash and payments increased by 81.5% over the same period to VND 4,509 billion; Revenue from foreign exchange services increased by 9.2% to nearly VND 996 billion.
In addition, net interest income in the fourth quarter increased by 11.4% year-on-year after decreasing in the previous three quarters, helping net profit for the whole year reach VND27.7 trillion, narrowing the decrease rate for the whole year of 2023 to only 8.6% compared to the previous year.
While business efficiency improved, Techcombank still maintained good operating cost reduction, with the cost/income ratio (CIR) for the whole year at 33.1%.
Overall, Techcombank recorded pre-tax profit in the fourth quarter of VND5.8 trillion, up 21.6% over the same period last year. Accumulated for the whole year of 2023, pre-tax profit reached VND22.9 trillion, exceeding the plan set at VND22 trillion approved by the General Meeting of Shareholders in April 2023. Techcombank's 2023 business results demonstrated the bank's ability to grasp the situation and closely forecast market developments, along with its ability to properly implement the plan.
CASA ratio recovers spectacularly to nearly 40%
In 2023, Techcombank's total assets increased by 21.5% to VND849.5 trillion at the end of the year. For the bank alone, credit grew by 19.2% compared to the beginning of the year to VND530.1 trillion, in line with the credit limit granted by the State Bank.
Customer deposits reached VND454.7 trillion, up 26.9% year-on-year and 11.2% year-on-year. CASA balance increased for 3 consecutive quarters, reaching a record level for the Bank, VND181.5 trillion at the end of the year, up sharply by 37.0% year-on-year and 31.9% year-on-year. As a result, the CASA ratio improved to 39.9%. The growth demonstrates Techcombank's leading transaction banking capabilities, demonstrated by the growth rate of transaction volume on digital channels (up 41% year-on-year, to 2.2 billion transactions, equivalent to 13% of NAPAS transaction market share) and the number of monthly application accesses leading the world - more than 50 times/active customer. On the other hand, term deposits (TD) reached VND273.2 trillion, up 20.9% compared to the beginning of the year and relatively stable quarter-on-quarter, as yields started to become less attractive compared to investment rates and the potential of the real estate, bond and stock markets.
The Bank's Basel II capital adequacy ratio (CAR) reached 14.4% as of December 31, 2023, continuing to maintain its leading position in the banking industry and much higher than the minimum requirement of 8.0%. Provision expenses increased by 102.5% year-on-year, reflecting the bank's proactive provisioning. Credit costs remained well controlled at 0.8%. The NPL ratio at the end of 2023 was only 1.19%, from 1.4% at the end of the third quarter. The NPL ratio of both the loan and bond portfolios was 1.12%.
Annual cash dividend of at least 20%/total profit after tax
Techcombank closed the fourth quarter of 2023 with over 13.4 million customers, recording 2.6 million new customers in the whole of 2023, more than double the number in 2022. Of these, 46.8% joined through digital channels and 36.2% through ecosystem partners.
After a decade of maintaining a profit growth rate of nearly 40%/year, Techcombank has now become the leading private bank in Vietnam, with total pre-tax profit in the last 3 years reaching over 3 billion USD.
Based on sustainable business growth and profit growth, the Bank has proposed a long-term dividend policy to submit to the General Meeting of Shareholders in April 2024. The Bank plans to propose a cash dividend payment of at least 20% of total annual after-tax profit - or 4-5% of the Bank's equity at the beginning of the year, equivalent to about VND1,500 per share. With positive business results even in a volatile economic situation, the Bank believes that maintaining the above-mentioned cash dividend payment policy, while continuing to grow business above the industry average, and ensuring a Tier 1 capital adequacy ratio of 14-15%, is completely feasible.
"I believe that the transformation strategy and positive business results in a challenging 2023 once again affirm the bank's intrinsic strength, while creating a solid foundation for growth in the coming years. This will allow the bank to plan a long-term cash dividend strategy for shareholders," said Mr. Jens Lottner - General Director of Techcombank.
Source link
Comment (0)