Techcombank achieves before-tax profit of 685.3 million USD in 2020 hinh anh 1Techcombank continues to lead the market with a healthy 3.1 percent return on assets for the last twelve months ended on December 31, 2020 (Photo: VNA)
Hanoi (VNS/VNA) – The Technological and Commercial Joint Stock Bank (Techcombank) has reinforced the strength of its customer centric strategy in delivering strong 2020 financial results.

The bank recorded before-tax profit for 2020 of 15.8 trillion VND (some 685.3 million USD), up 23.1 percent from 2019 and 21.5 percent higher than the full-year before-tax profit target approved at the Annual General Meeting of Shareholders (AGM).

The bank continues to lead the market with a healthy 3.1 percent return on assets (ROA) for the last twelve months ending December 31, 2020. Capital position remains robust with Basel II CAR of 16.1 percent at year end. These financial results complete the successful execution of the 2016-2020 strategic plan and were achieved against the most challenging economic environment in Vietnam in over a decade due to the COVID-19 pandemic. Together with the Government and broader banking sector, Techcombank took measures during the year to support the economy and share hardships with individual and corporate customers including introducing a comprehensive support package worth 41.2 trillion VND for over 3,200 customers covering interest waiver, reduction and debt rescheduling.

“Against a challenging and uncertain operating environment in 2020, we took a number of measures throughout the year to support our customers and strengthen Techcombank’s balance sheet to weather the crisis. This included rescheduling loans for customers impacted by COVID-19, offering preferential interest rates, increasing liquidity to ensure we had ample credit for customers while accelerating write-offs to maintain healthy asset quality. Our 2020 financial results reinforce that the long-term growth drivers and business fundamentals for Vietnam and Techcombank are intact. Going forward, we will continue to focus on the consistent execution of our strategy and invest in digitalisation to scale our business to meet the needs of our growing customer base. With our expanded leadership team and the capabilities and capital built over the last 5 years, coupled with the success of the Government in containing the impacts of COVID-19, we remain well positioned to deliver our 2021-25 strategy and vision of becoming the leading bank in Vietnam,” said Techcombank CEO Jens Lottner.

The bank’s Total Operating Income (TOI) grew 28.4 percent to 27 trillion VND in 2020, outpacing an 18 percent increase in operating expenses. Net Interest Income (NII) grew to 18.8 trillion VND, up 31.5 percent year-over-year (YoY). Total assets were 439.6 trillion VND at the end of 2020, an increase of 14.6 percent from 2019.

Techcombank maintained ample liquidity, exceeding regulatory requirements with a loan-to-deposit ratio (LDR) of 78.1 percent and short-term funding to medium-to-long-term loans ratio of 33.9 percent, improving from the 38.4 percent at the end of 2019.

NPL ratio was 0.5 percent as at December 31, 2020, against 0.6 percent as at September 30, 2020 as the bank took proactive measures to write-off non-performing loans to strengthen its balance sheet against the potential economic impacts of COVID-19.

During 2020, Techcombank added 1.1 million net new customers to bring total customers served to 8.4 million./.