Transactions at Techcombank. Techcombank’s total assets ended in the first half of the year was up 27.4 percent to 504.3 trillion VND. (Photo courtesy of Techcombank)Hanoi (VNS/VNA) - Techcombank has recorded positive results in the first halfof this year maintaining the leading CASA ratio of 46.1 percent.
In a report released on July 21, Techcombank said its before-tax profit in thefirst six months of the year reached 11.5 trillion VND (498.8 million USD).This was an increase of 71.2 percent over the same period last year. Its totaloperating income (TOI) in the period grew 52.1 percent year-on-year to 18.1trillion VND as net interest income (NII) and non-fee income (NF) both sawdouble-digit growth.
The bank’s securities-related fees, the largest component of NFI, grew 18.4 percentin H1 from the same period last year, comprising 420 billion VND in bondunderwriting fees and 865 billion VND in other services – including trustee,consulting, agency, brokerage and fund management fees.
Its bancassurance grew 60.1 percent in annualised premium equivalent (APE) andnet bancassurance fees grew 48.1 percent year-on-year despite the impact ofsocial distancing on in-person consultations.
Operating expenses were up 29.6 percent year-on-year to 5.2 trillion VND andcost income ratio (CIR) was 28.4 percent as a result of COVID-19 related delaysin IT and marketing investments.
Its provision expenses were 1.4 trillion VND, 19.6 percent more than in thesame period last year.
Techcombank’s total assets ended in the first half of the year up 27.4 percentto 504.3 trillion VND while credit provided to customers as at 30 June was up11.2 percent to 353.7 trillion VND. Retail loan pick-up in the second quarterof the year kept credit demand healthy.
Its outstanding credit to large corporates and small-medium enterprises (SMEs)grew 11 percent from the end of 2020. Total deposits in H1 were also up 15.8 percentyear-on-year to 289.3 trillion VND.
Techcombank maintained ample liquidity with a loan-to-deposit ratio (LDR) of76.6 percent. It remains one of Vietnam’s best capitalised banks with a BaselII CAR of 15.2 percent, higher than the Basel II Pillar I minimum requirementof 8 percent.
Non-performing loan (NPL) ratio was 0.4 percent as at 30 June 2021, against 0.9percent last year. Restructured loans under Techcombank’s support programme forCOVID-19 impacted customers fell to 2.7 trillion VND, or 0.8 percent ofoutstanding loans, with 67 percent of these customers having recovered by theend of first quarter of the year.
“An expanding customer base and higher level of banking engagement in bothretail and corporate sectors helped grow fee income. While we remain confidentabout medium and long-term economic prospects, COVID-19 continues to challengesome of our customers. This was exacerbated towards the end of the secondquarter when the government mandated stricter social distancing to controlrecent outbreaks while ramping up its vaccination programme. As we have sincethe pandemic started, Techcombank remains focused on protecting our employeesand providing customers with increasingly digital, branchless solutions,” saidJens Lottner, CEO of Techcombank./.
In a report released on July 21, Techcombank said its before-tax profit in thefirst six months of the year reached 11.5 trillion VND (498.8 million USD).This was an increase of 71.2 percent over the same period last year. Its totaloperating income (TOI) in the period grew 52.1 percent year-on-year to 18.1trillion VND as net interest income (NII) and non-fee income (NF) both sawdouble-digit growth.
The bank’s securities-related fees, the largest component of NFI, grew 18.4 percentin H1 from the same period last year, comprising 420 billion VND in bondunderwriting fees and 865 billion VND in other services – including trustee,consulting, agency, brokerage and fund management fees.
Its bancassurance grew 60.1 percent in annualised premium equivalent (APE) andnet bancassurance fees grew 48.1 percent year-on-year despite the impact ofsocial distancing on in-person consultations.
Operating expenses were up 29.6 percent year-on-year to 5.2 trillion VND andcost income ratio (CIR) was 28.4 percent as a result of COVID-19 related delaysin IT and marketing investments.
Its provision expenses were 1.4 trillion VND, 19.6 percent more than in thesame period last year.
Techcombank’s total assets ended in the first half of the year up 27.4 percentto 504.3 trillion VND while credit provided to customers as at 30 June was up11.2 percent to 353.7 trillion VND. Retail loan pick-up in the second quarterof the year kept credit demand healthy.
Its outstanding credit to large corporates and small-medium enterprises (SMEs)grew 11 percent from the end of 2020. Total deposits in H1 were also up 15.8 percentyear-on-year to 289.3 trillion VND.
Techcombank maintained ample liquidity with a loan-to-deposit ratio (LDR) of76.6 percent. It remains one of Vietnam’s best capitalised banks with a BaselII CAR of 15.2 percent, higher than the Basel II Pillar I minimum requirementof 8 percent.
Non-performing loan (NPL) ratio was 0.4 percent as at 30 June 2021, against 0.9percent last year. Restructured loans under Techcombank’s support programme forCOVID-19 impacted customers fell to 2.7 trillion VND, or 0.8 percent ofoutstanding loans, with 67 percent of these customers having recovered by theend of first quarter of the year.
“An expanding customer base and higher level of banking engagement in bothretail and corporate sectors helped grow fee income. While we remain confidentabout medium and long-term economic prospects, COVID-19 continues to challengesome of our customers. This was exacerbated towards the end of the secondquarter when the government mandated stricter social distancing to controlrecent outbreaks while ramping up its vaccination programme. As we have sincethe pandemic started, Techcombank remains focused on protecting our employeesand providing customers with increasingly digital, branchless solutions,” saidJens Lottner, CEO of Techcombank./.
VNA
