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.
Theinformation was released at its 2021 Annual General Meeting of Shareholders(AGM) held in Hanoi on April 24. The shareholders approved all resolutionspresented, including the 2021 business plan.
Techcombank’sChairman Ho Hung Anh said the bank expected before-tax profit of 19.8 trillionVND in 2021, up 25.3 percent from last year. Its total credit is projected toincrease 12 percent year-on-year to 356.1 trillion VND, or higher, in line withany quota that may be granted by the State Bank of Vietnam. Deposits areexpected to reach 334.2 trillion VND, increasing 14.7 percent from the previousyear. It will be managed in accordance with actual credit growth as part of thebank’s Asset Liability Management (ALM). Techcombank plans to keepnon-performing loans (NPL) below two percent.
Techcombankreported that it will increase charter capital to 35.1 trillion VND, anincrease of 0.17 percent in conjunction with the planned issuance of sixmillion ESOP shares.
Techcombankdelivered strong results in 2020, despite an unprecedented and unpredictableeconomic 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. Techcombankreported a 16.1 percent Capital Adequacy Ratio (CAR), 0.5 percent NPL ratio and171 percent loan loss coverage ratio, indicating healthy asset quality andprudent risk management.
Techcombankshared its next 5-year strategy (2021-2025) and updated its Vision and Missionstatement to “Change banking, change lives”, helping Vietnamese people andbusinesses achieve their full potential.
JensLottner, Techcombank’s General Director, said the bank plans to accelerate thekey foundational investments to enable business models in line with its vision.It will double down on the biggest opportunities such as CASA, mortgages, realestate value chain and wealth management (bonds, funds, bancassurance). It willalso continue to diversify into other areas towards risk-return optimisationand participating in emerging opportunities.
In2020, Techcombank's market capitalisation reached 5 billion USD and iscurrently at 6 billion USD. These are the numbers that show a sustainable movefor Techcombank, he added.
Heaffirmed that Techcombank could reach a market capitalisation of 20 billion USDin the next five years as it is continuing to maintain the pre-tax profitgrowth rate of 23-25 percent a year. The bank has a very clear plan to achievethis goal.
Techcombankhas supported impacted customers, employees and the broader community duringthe pandemic. So far, the bank has responded with a 41 trillion VND supportpackage, which includes debt moratoriums, interest waivers, interestreductions, and has helped over 3,200 customers./.
VNA
