Jens Lottner, Techcombank’s General Director at Techcombank's 2021 Annual General Meeting of Shareholders. (Photo courtesy of the bank) Accordingly, its return on equity (ROE) would be at 20 percent, total operating income (TOI) at 30 percent and current account savings account (CASA) ratio at 55 percent.
The information was released at its 2021 Annual General Meeting of Shareholders (AGM) held in Hanoi on April 24. The shareholders approved all resolutions presented, including the 2021 business plan.
Techcombank’s Chairman Ho Hung Anh said the bank expected before-tax profit of 19.8 trillion VND in 2021, up 25.3 percent from last year. Its total credit is projected to increase 12 percent year-on-year to 356.1 trillion VND, or higher, in line with any quota that may be granted by the State Bank of Vietnam. Deposits are expected to reach 334.2 trillion VND, increasing 14.7 percent from the previous year. It will be managed in accordance with actual credit growth as part of the bank’s Asset Liability Management (ALM). Techcombank plans to keep non-performing loans (NPL) below two percent.
Techcombank reported that it will increase charter capital to 35.1 trillion VND, an increase of 0.17 percent in conjunction with the planned issuance of six million ESOP shares.
Techcombank delivered strong results in 2020, despite an unprecedented and unpredictable economic environment. The bank posted VNĐ15.8 trillion before-tax profit, representing a 23.1 percent year-on-year increase and 27 trillion VND of TOI, up 28.4 percent from last year. Return on Assets (ROA) improved to 3.1 percent, and CASA ratio (46.1 percent) was the highest amongst local peers. Techcombank reported a 16.1 percent Capital Adequacy Ratio (CAR), 0.5 percent NPL ratio and 171 percent loan loss coverage ratio, indicating healthy asset quality and prudent risk management.
Techcombank shared its next 5-year strategy (2021-2025) and updated its Vision and Mission statement to “Change banking, change lives”, helping Vietnamese people and businesses achieve their full potential.
Jens Lottner, Techcombank’s General Director, said the bank plans to accelerate the key foundational investments to enable business models in line with its vision. It will double down on the biggest opportunities such as CASA, mortgages, real estate value chain and wealth management (bonds, funds, bancassurance). It will also continue to diversify into other areas towards risk-return optimisation and participating in emerging opportunities.
In 2020, Techcombank's market capitalisation reached 5 billion USD and is currently at 6 billion USD. These are the numbers that show a sustainable move for Techcombank, he added.
He affirmed that Techcombank could reach a market capitalisation of 20 billion USD in the next five years as it is continuing to maintain the pre-tax profit growth rate of 23-25 percent a year. The bank has a very clear plan to achieve this goal.
Techcombank has supported impacted customers, employees and the broader community during the pandemic. So far, the bank has responded with a 41 trillion VND support package, which includes debt moratoriums, interest waivers, interest reductions, and has helped over 3,200 customers./.
VNA
