Techcombank revenues grow for 19th consecutive quarter

By Van Pham   August 20, 2020 | 05:30 pm GMT+7
Techcombank’s revenues for the first half of 2020 grew 30 percent year-on-year to VND11.8 trillion ($512 million), extending its growth streak to 19 quarters despite Covid-19 impacts.
A Techcombanks transaction office.

A Techcombank transaction office.

The private bank posted profit before tax of VND6.7 trillion ($291 million) in the first half of 2020 (H1), up 19 percent year-on-year. Its after tax profits rose 19 percent in the same period to VND5.4 trillion ($234 million).

The return on assets (ROA) continued to remain at a healthy rate of 2.9 percent. Its capital adequacy ratio (CAR) under Basel II standard was 16.9 percent, more than twice the minimum requirement of 8 percent.

The lender recorded an H1 net interest income of VND 8.1 trillion ($351 million), up 23 percent against the same period last year. Net fee and commission income was VND2 trillion ($86.8 million), up 57 percent year-on-year, accounting for 16.8 percent of total of income, with strong contribution from bond underwriting.

The bank’s operating expenses went up 21 percent year-on-year to VND3.8 trillion ($165 million) and its cost to income ratio (CIR) improved from 35 percent for H1 of last year to 32.5 percent this year.

The bank increased its provisions from VND239 billion ($10.4 million) for the six months ending June 30, 2019 to VND1.2 trillion ($52 million) in H1 this year.

In the second quarter, Techcombank raised $500 million in its inaugural syndicated offshore loan facility. The bank said this loan will be added to its general corporate and working capital and will serve as an additional liquidity cushion.

Techcombank acquired more than 330,000 new customers, bringing the total to nearly 8 million.

The bank said it has implemented rigorous safety measures to protect customers and employees while keeping all of its branches and ATMs operating normally during the Covid-19 pandemic.

Transaction volume and value during H1 through the bank’s retail e-banking channels increased respectively to 153 million and VND2 quadrillion ($86.8 billion), marking respective year-on-year increases of 130 percent and 91 percent.

Moody’s credit rating (Baseline Credit Assessment) for Techcombank was confỉrmed at ba3 in the second quarter of 2020, reflecting the bank's stable asset quality, solid profitability and strong capitalization.

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