Techcombank extends revenue growth streak to 18 quarters

By Pham Van    May 6, 2020 | 10:45 pm PT
Techcombank's Q1 revenue rose 37.3 percent year-on-year, marking 18 consecutive quarters of growth, despite the adverse impacts of the coronavirus pandemic.

The bank said in a statement that its total operating income reached VND6.03 trillion ($263 million) in the first quarter, up 37.3 percent against the same period last year.

The bank acquired over 250,000 new customers in Q1, taking the total to nearly 8 million. E-banking was used by 79.9 percent of its active customers, up 60.4 percent year-on-year.

Transaction volume and value through Techcombank’s e-banking channels increased to 78 million and VND1,136 trillion ($49.48 billion), up 149 percent and 113 percent year-over-year, respectively.

Despite the pandemic, all Techcombank's branches and ATMs have functioned normally, and the bank has implemented safety measures to protect customers and employees. It also announced a comprehensive support package for qualified individuals and corporate customers affected by the Covid-19 outbreak.

The bank's return on assets (ROA) continued to be at healthy rate of 3 percent. Its capital adequacy ratio (CAR) under Basel II standards was 16.6 percent, more than twice the minimum requirement.

Provision expenses increased from VND167 billion ($7.27 million) for the quarter ended March 31, 2019 to VND772 billion ($33.62 million) in Q1.

A Techcombanks transaction office.

A Techcombank's transaction office.

Techcombank recorded profit before tax of VND3.12 trillion ($136 million) in Q1, up 19.2 year-over-year. Profit after tax reached VND2.51 trillion ($109 million), up 19.8 percent versus a year ago.

Net interest income for the quarter grew to VND4.21 trillion ($183 million), up 22.8 percent over the same period last year. Net fees and commission income (NFI) was VND862 billion ($37.54 million), up 73.1 percent, with strong contributions from bond underwriting activity.

Total assets were valued at VND391.8 trillion ($17.06 billion), a year-on-year increase of 20.1 percent. Total credit extended to customers as of March 31, 2020 was VND265.4 trillion ($11.56 billion), up 22.5 percent year-on-year. The ratio of non-performing loans was 1.1 percent as at March 31, the bank said.

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