Techcombank continues to lead the market with a healthy 3.1 percent return on assets for the last twelve months ended on December 31, 2020 (Photo: VNA)Thebank recorded before-tax profit for 2020 of 15.8 trillion VND (some 685.3million USD), up 23.1 percent from 2019 and 21.5 percent higher than thefull-year before-tax profit target approved at the Annual General Meeting ofShareholders (AGM).
Thebank continues to lead the market with a healthy 3.1 percent return on assets(ROA) for the last twelve months ending December 31, 2020. Capitalposition remains robust with Basel II CAR of 16.1 percent at year end. Thesefinancial results complete the successful execution of the 2016-2020 strategicplan and were achieved against the most challenging economic environment in Vietnamin over a decade due to the COVID-19 pandemic. Together with the Government andbroader banking sector, Techcombank took measures during the year to supportthe economy and share hardships with individual and corporate customersincluding introducing a comprehensive support package worth 41.2 trillion VNDfor over 3,200 customers covering interest waiver, reduction and debtrescheduling.
“Againsta challenging and uncertain operating environment in 2020, we took a number ofmeasures throughout the year to support our customers and strengthenTechcombank’s balance sheet to weather the crisis. This included reschedulingloans for customers impacted by COVID-19, offering preferential interest rates,increasing liquidity to ensure we had ample credit for customers whileaccelerating write-offs to maintain healthy asset quality. Our 2020 financialresults reinforce that the long-term growth drivers and business fundamentalsfor Vietnam and Techcombank are intact. Going forward, we will continue tofocus on the consistent execution of our strategy and invest in digitalisationto scale our business to meet the needs of our growing customer base. With ourexpanded leadership team and the capabilities and capital built over the last 5years, coupled with the success of the Government in containing the impacts ofCOVID-19, we remain well positioned to deliver our 2021-25 strategy and visionof becoming the leading bank in Vietnam,” said Techcombank CEO Jens Lottner.
Thebank’s Total Operating Income (TOI) grew 28.4 percent to 27 trillion VND in2020, outpacing an 18 percent increase in operating expenses. Net InterestIncome (NII) grew to 18.8 trillion VND, up 31.5 percent year-over-year (YoY).Total assets were 439.6 trillion VND at the end of 2020, an increase of 14.6 percentfrom 2019.
Techcombankmaintained ample liquidity, exceeding regulatory requirements with aloan-to-deposit ratio (LDR) of 78.1 percent and short-term funding tomedium-to-long-term loans ratio of 33.9 percent, improving from the 38.4 percentat the end of 2019.
NPLratio was 0.5 percent as at December 31, 2020, against 0.6 percent as atSeptember 30, 2020 as the bank took proactive measures to write-offnon-performing loans to strengthen its balance sheet against the potentialeconomic impacts of COVID-19.
During2020, Techcombank added 1.1 million net new customers to bring total customersserved to 8.4 million./.
VNA
