Techcombank posts robust earnings gains in 9 months

 

Hanoi (VNS/VNA) - Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has reported big earning gains in January-September to keep performing well amid the challenges caused by the COVID-19 pandemic.

Techcombank reported a total pre-tax profit of 10.7 trillion VND (462.6 million USD) and a total revenue of 19.3 trillion VND in the past nine months, up 20.9 percent and 33.5 percent year on year.

The post-tax profit in the nine-month period was up 20.6 percent to 8.6 trillion VND. At the end of September, return on assets (ROA) ratio was 3.0 percent and the capital adequacy ratio (CAR) was 16.7 percent.

“Our robust capital and funding positions have enabled us to support our customers and weather the difficult operating environment this year,” Techcombank CEO Jens Lottner said in a statement.

“As we look towards the end of 2020 and beyond, we are cautiously optimistic that the impact of COVID-19 has peaked and that proven preparedness of the Government, together with the collective experience of the business and broader community, will allow us to manage and mitigate risks should there be another breakout,” he said.

“Importantly, the long-term drivers for growth are intact, and we remain focused on the consistent execution of our strategy and investments in digitalisation to improve our customer experience,” he said.

Techcombank announced its total operating income grew 33.5 percent on-year to 19.3 trillion VND in nine months and net interest income rose 28.4 percent on-year to 13.3 trillion VND.

In addition, nine-month net fee and commission income jumped 65 percent on-year to 3.1 trillion VND. The bank said that the figure accounted for 16.2 percent of the total revenue, boosted by bond underwriting activity during nine months.

Operating expenses totalled 6.3 trillion VND ending September 30, up 27.1 percent on-year while the cost to income ratio was cut by 1.7 percentage points to 32.8 percent.

In the third quarter of 2020, Techcombank continued to write off its non-performing loans. Risk provision in the first nine months jumped 3.6 times to 2.2 trillion VND from last year’s number.

At the end of the third quarter, total assets were 401.5 trillion VND, up 9.2 percent on-year and 4.6 percent year-to-date. Total credit extended to customers as of September 30 increased by 14.4 percent on-year and 8.3 percent year-to-date to 279.4 trillion VND.

The non-performing loan ratio (NPL) was 0.6 percent on September 30, down 0.3 percentage points from the previous quarter and down 1.2 percentage points from last year.

The bank explained bad debt write-off and ongoing prudent risk management were the important factors towards lower bad debt ratio.

Total deposits were 252.6 trillion VND at the end of September while non-term deposits totalled 97.5 trillion VND and time deposits were worth 155.1 trillion VND.

The three figures were up 9.2 percent, 22.2 percent and 2.4 percent year-to-date, respectively, reflecting the “success in optimising its cost of funding.”/.