Techcombank targets 504.3 million USD in pre-tax profit

The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has targeted a pre-tax profit of more than 11.7 trillion VND (504.3 million USD) in 2019, representing a 10 percent year-on-year increase.
Techcombank targets 504.3 million USD in pre-tax profit ảnh 1A transaction office of Techcombank (Photo: Techcombank)

Hanoi (VNS/VNA) – The VietnamTechnological and Commercial Joint Stock Bank (Techcombank) has targeted apre-tax profit of more than 11.7 trillion VND (504.3 million USD) in 2019,representing a 10 percent year-on-year increase.

The target was approved atits annual shareholders’ meeting held in Hanoi last week.

It also planned to increaseits total assets by 17 percent to 375.8 trillion VND (16.2 billion USD) thisyear while holding outstanding loans at 245.4 trillion VND (10.57 billionUSD), up 32 percent from last year. Its bad debts would be limited to lessthan 2.5 percent in 2019.

In 2018, Techcombank achievedhigh business results. Its pre-tax profit was up 32.7 percent fromthe previous year at more than 10.6 trillion VND (456.9 million USD).

These helped the bank achievereturn on average assets (ROAA) of 2.9 percent and return on averageequity (RAE) of 21.5 percent.

Techcombank CEO Nguyen Le QuocAnh said the two criteria had not only been among the highest amongbanks in Vietnam but also surpassed big scale banks in India and Thailand.

In addition, Techcombanksuccessfully mobilised capital to raise its capital adequacy ratio (CAR) to14.3 percent, much higher than the level stipulated by the State Bank of Vietnamas well as the minimum level according to Basel II.

Techcombank was amongthe few commercial banks last year which were assigned higher creditgrowth limits of 18 percent with priority given to those who met Basel II’scapital safety and risk management standards ahead of schedule.

“The bank plans to grow revenueby 20-30 percent a year and retain 20 percent of profit. In order to increaserevenue, instead of growing debt balance, the bank would focus on raising fees(expected to account for 50 percent of the total revenue),” Anh said.

He added that Techcombank alwaysfocused on controlling credit growth from the central bank to ensuresustainable growth of the economy.

Anh said Techcombankwas among the banks to have successfully resolved bad debt. All of itsdebts were sold to VAMC and totally resolved two years ago. It had alsowell controlled credit quality by its strict risk warning and management system.

With its profits listed in thetop three banks in the country’s banking system in 2018, Techcombank’sshareholders agreed to continue to retain earnings to invest in creating growthmomentum in the future.

Techcombank Chairman Ho Hung Anh said the bank wanted to retain profit tostrengthen its equity and ensure the requirements of the central bank andBasel II are met.

At the meeting, shareholders alsoapproved a plan to issue 10 million shares under the Employee Stock OwnershipPlan (ESOP) programme at a price of 10,000 VND to increase itscharter capital to more than 35 trillion VND (1.5 billion USD).

The bank said it would focus on growth contributed by service fees thank toimplementing a modern banking transaction system for corporate customers andimproving their experiences through online payments and life insurance products.

In addition, it would develop newsolutions in house lending, car lending, credit and payments to meet increasingdemands of customers.

Anh added the bank would startconstruction of two new buildings on Ly Thuong Kiet street (Hanoi)and Le Duan street (HCM City) this year. The two buildings are expected tobecome operational in 2021.

Ho Hung Anh was re-electedto the position of chairman of Techcombank's board of directors for the thirdconsecutive term.

Other members include Nguyen DangQuang, Nguyen Thieu Quang Nguyen Canh Son, Do Tuan Anh, Lee Boon Huat, SaurabhNarayan Agarwal and Nguyen Nhan Nghia.

The new management board wouldcontinue to implement its customer-centric strategy, invest intechnology to develop a digital foundation and big data while improving riskmanagement to reach high ratings with prestigious ratings organisations.-VNS/VNA
VNA

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