Techcombank achieves 238.1 million USD before-tax profit in Q1

Hanoi (VNS/VNA) - Techcombank has reported before-tax profit of 5.5 trillion VND (238.1 million USD) in the first quarter of the year, increasing 76.8 percent from the same period last year.

The bank continues to lead the market with a healthy 3.5 percent return on assets (ROA) for the twelve months ending March 31, 2021. Capital position remains robust with Basel II CAR of 15.8 percent at quarter end.

“Our robust first quarter performance built on the strong momentum from the fourth quarter of 2020. We continue to focus on consistent execution of our strategy and invest in digitalisation to scale our business to meet the needs of our growing customer base. For 2021 our priority will be on building foundational capabilities in data, digital, and talent to deliver the 2021-25 plan. While the benefits of these investments will become more evident over time we can see already some of the upside potential in parts of our business like bancassurance where improvements in digital, data and people have led to an 80.5 percent year-on-year growth in the first quarter,” said Techcombank CEO Jens Lottner.

The bank’s Total Operating Income (TOI) grew 46.2 percent to 8.9 trillion VND in 2020, outpacing the 15.7 percent increase in operating expenses.

Its total assets were 462.8 trillion VND at the end of the first quarter, an increase of 18.1 percent from a year ago. Total credit provided to customers as of March 31, 2021 was 336.2 trillion VND, 26.7 percent higher than the corresponding period last year.

The bank remains one of the best capitalised banks in Vietnam with a Basel II Capital Adequacy Ratio (CAR) of 15.8 percent, nearly two times higher than the Basel II Pillar I minimum requirement of 8 percent.

NPL ratio was 0.4 percent as at March 31, 2021, against 1.1 percent last year and 0.5 percent at the end of 2020.

Consolidated results also benefited from the robust performance of Techcom Securities (TCBS) which recorded revenues of VNĐ1 trillion up 60.9 percent year-on-year and before-tax profit of 843 billion VND. TCBS captured 68 percent of the corporate bond brokerage market share and more than 30 profit market share of new securities account openings in the first quarter of 2021.

TCBF, an open-ended bond fund managed by TCBS, continued to be the largest bond fund in the market with 28.6 trillion VND, up 91 percent year-on-year.

Techcombank added 245,000 net new customers in the three month period to bring total customers served to 8.6 million. Retail customer transaction volume during the period through Techcombank’s e-banking channels increased to 136.9 million and value of transactions were nearly 2 quadrillion VND, up 88.6 percent and 101.8 percent year-on-year, respectively./.