No overdue advisory bank bonds
Responding to shareholders’ concerns about Techcombank’s low-risk, high-return model at the AGM on the morning of April 22, Chairman of the Board of Directors Ho Hung Anh said that in terms of real estate, the bank will focus on good customers, good projects, and areas that Techcombank truly understands. Then, in difficult times, we can still withstand it.
“We will not spread out, but diversify. The bank will expand into other areas such as retail and SME, which are segments that have invested heavily in digitalization, helping Techcombank diversify its segments,” Mr. Hung Anh affirmed.
Techcombank has a high volume of real estate loans, but most of them are for individuals who want to buy a house. As for projects, the bank chooses good customers, with projects that have full legal documents and are still developing during difficult times.
Regarding Masterise - a company within the Techcombank ecosystem, Mr. Hung Anh said that in reality, Masterise's role is not as a real estate investment company but only as a developer, working with investors to implement projects and collect fees.
"There is no credit financing activity for Masterise to invest in real estate projects," the Chairman emphasized.
Techcombank's 2023 Annual General Meeting of Shareholders in Hanoi.
The projects that Masterise is implementing are all operating normally and are on schedule, one of the few projects that have delivered houses to customers on time despite the difficult period.
Regarding bonds, Techcombank always manages them as a loan and has collateral. Bank bonds are always managed from the perspective of health, collateral, and debt repayment ability.
The amount of advice to the retail market is very large, there has not been any bond that the consulting bank has overdue in terms of interest and principal, showing the results of bond risk management.
With Decree 08 and other Government policies, the Chairman of Techcombank believes that the bond market will return.
The stock market will recover quickly
At the meeting, Techcombank shareholders also expressed concerns about the purchase of privately offered shares of Techcom Securities Corporation (TCBS), to increase their ownership ratio in this company to over 94%.
According to Techcombank's leadership, TCBS has operated effectively over the past 5 years and has become a leading securities company with profitability ratios (ROA and ROE) always maintained at a high level.
However, the company's ability to expand its business is limited by equity (specifically, the bond investment limit is 70% of equity and the margin lending limit is limited to 200% of equity).
Securities companies in 2022-2023 will have fluctuations, but the market will quickly recover.
Therefore, TCBS will offer 105 million shares to Techcombank at an expected offering price of VND95,600/share. The total amount collected at the expected price is VND10,038 billion. After the offering, TCBS's charter capital will increase by VND1,050 billion to more than VND2,176 billion.
Mr. Ho Hung Anh believes that securities companies will have fluctuations in 2022-2023, but the market will quickly recover. TCBS is a leading unit in bond consulting as well as issuance consulting, so focusing on its strengths is appropriate.
The implementation of the issuance plan will be carried out in accordance with the provisions of law and with the approval of competent authorities such as the State Bank and the State Securities Commission .
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