Top private lender posts 20 pct profit growth

By Quynh Trang   October 26, 2020 | 02:36 am PT
Top private lender posts 20 pct profit growth
The logo of Techcombank is displayed in front of a building in Hanoi. Photo by Shutterstock/TK Kurikawa.
Vietnam’s top private lender, Techcombank, saw pre-tax profits in the first nine months rise by over 20 percent year-on-year to VND10.7 trillion ($461.61 million).

Revenues surged nearly 34 percent to VND19.3 trillion, with double-digit growth in income from net interest and services, the bank said.

Techcombank, which has been the most profitable private lender in the country in recent years, increased its provision for bad debts by 3.6 times to VND2.2 trillion.

Other banks have also increased their bad debt provisions as the risk of non-repayment rises as the Covid-19 pandemic hurts businesses and affects their ability to repay debts.

Techcombank’s provisions helped its bad debt ratio fall from 1.3 percent earlier this year to 0.6 percent by the end of September.

The bank posted a credit growth of 8 percent in the first nine months. The State Bank of Vietnam has targeted an 11-14 percent credit growth for the industry this year against 12-18 percent in the last three years.


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