Transactions at Techcombank. Techcombank’s total assets ended in the first half of the year was up 27.4 percent to 504.3 trillion VND. (Photo courtesy of Techcombank) Hanoi (VNS/VNA) - Techcombank has recorded positive results in the first half of this year maintaining the leading CASA ratio of 46.1 percent.
In a report released on July 21, Techcombank said its before-tax profit in the first six months of the year reached 11.5 trillion VND (498.8 million USD). This was an increase of 71.2 percent over the same period last year. Its total operating income (TOI) in the period grew 52.1 percent year-on-year to 18.1 trillion VND as net interest income (NII) and non-fee income (NF) both saw double-digit growth.
The bank’s securities-related fees, the largest component of NFI, grew 18.4 percent in H1 from the same period last year, comprising 420 billion VND in bond underwriting fees and 865 billion VND in other services – including trustee, consulting, agency, brokerage and fund management fees.
Its bancassurance grew 60.1 percent in annualised premium equivalent (APE) and net bancassurance fees grew 48.1 percent year-on-year despite the impact of social distancing on in-person consultations.
Operating expenses were up 29.6 percent year-on-year to 5.2 trillion VND and cost income ratio (CIR) was 28.4 percent as a result of COVID-19 related delays in IT and marketing investments.
Its provision expenses were 1.4 trillion VND, 19.6 percent more than in the same period last year.
Techcombank’s total assets ended in the first half of the year up 27.4 percent to 504.3 trillion VND while credit provided to customers as at 30 June was up 11.2 percent to 353.7 trillion VND. Retail loan pick-up in the second quarter of the year kept credit demand healthy.
Its outstanding credit to large corporates and small-medium enterprises (SMEs) grew 11 percent from the end of 2020. Total deposits in H1 were also up 15.8 percent year-on-year to 289.3 trillion VND.
Techcombank maintained ample liquidity with a loan-to-deposit ratio (LDR) of 76.6 percent. It remains one of Vietnam’s best capitalised banks with a Basel II CAR of 15.2 percent, higher than the Basel II Pillar I minimum requirement of 8 percent.
Non-performing loan (NPL) ratio was 0.4 percent as at 30 June 2021, against 0.9 percent last year. Restructured loans under Techcombank’s support programme for COVID-19 impacted customers fell to 2.7 trillion VND, or 0.8 percent of outstanding loans, with 67 percent of these customers having recovered by the end of first quarter of the year.
“An expanding customer base and higher level of banking engagement in both retail and corporate sectors helped grow fee income. While we remain confident about medium and long-term economic prospects, COVID-19 continues to challenge some of our customers. This was exacerbated towards the end of the second quarter when the government mandated stricter social distancing to control recent outbreaks while ramping up its vaccination programme. As we have since the pandemic started, Techcombank remains focused on protecting our employees and providing customers with increasingly digital, branchless solutions,” said Jens Lottner, CEO of Techcombank./.
In a report released on July 21, Techcombank said its before-tax profit in the first six months of the year reached 11.5 trillion VND (498.8 million USD). This was an increase of 71.2 percent over the same period last year. Its total operating income (TOI) in the period grew 52.1 percent year-on-year to 18.1 trillion VND as net interest income (NII) and non-fee income (NF) both saw double-digit growth.
The bank’s securities-related fees, the largest component of NFI, grew 18.4 percent in H1 from the same period last year, comprising 420 billion VND in bond underwriting fees and 865 billion VND in other services – including trustee, consulting, agency, brokerage and fund management fees.
Its bancassurance grew 60.1 percent in annualised premium equivalent (APE) and net bancassurance fees grew 48.1 percent year-on-year despite the impact of social distancing on in-person consultations.
Operating expenses were up 29.6 percent year-on-year to 5.2 trillion VND and cost income ratio (CIR) was 28.4 percent as a result of COVID-19 related delays in IT and marketing investments.
Its provision expenses were 1.4 trillion VND, 19.6 percent more than in the same period last year.
Techcombank’s total assets ended in the first half of the year up 27.4 percent to 504.3 trillion VND while credit provided to customers as at 30 June was up 11.2 percent to 353.7 trillion VND. Retail loan pick-up in the second quarter of the year kept credit demand healthy.
Its outstanding credit to large corporates and small-medium enterprises (SMEs) grew 11 percent from the end of 2020. Total deposits in H1 were also up 15.8 percent year-on-year to 289.3 trillion VND.
Techcombank maintained ample liquidity with a loan-to-deposit ratio (LDR) of 76.6 percent. It remains one of Vietnam’s best capitalised banks with a Basel II CAR of 15.2 percent, higher than the Basel II Pillar I minimum requirement of 8 percent.
Non-performing loan (NPL) ratio was 0.4 percent as at 30 June 2021, against 0.9 percent last year. Restructured loans under Techcombank’s support programme for COVID-19 impacted customers fell to 2.7 trillion VND, or 0.8 percent of outstanding loans, with 67 percent of these customers having recovered by the end of first quarter of the year.
“An expanding customer base and higher level of banking engagement in both retail and corporate sectors helped grow fee income. While we remain confident about medium and long-term economic prospects, COVID-19 continues to challenge some of our customers. This was exacerbated towards the end of the second quarter when the government mandated stricter social distancing to control recent outbreaks while ramping up its vaccination programme. As we have since the pandemic started, Techcombank remains focused on protecting our employees and providing customers with increasingly digital, branchless solutions,” said Jens Lottner, CEO of Techcombank./.
VNA
