Transactions at a Techcombank office (Photo: Techcombank)Hanoi (VNA) - The Vietnam Technological and Commercial Joint Stock Bank(Techcombank) posted a record pre-tax profit of 5.19 trillion VND (223.5million USD) in the first half of the year – approximately double that of the sameperiod in 2017.
Techcombank, at a press conference held in Hanoi on July 24, said that thebank’s return on equity (ROE) and return on assets (ROA) in the six monthperiod were 24.32 percent and 3.16 percent, respectively, higher than the sameperiod last year.
The positive results were thanks to Vietnam’s economic growth in 2018, whichwas forecast to be the second fastest in the Asia-Pacific region. As GDP in thefirst six months grew by 7.08 percent, Vietnam is well on track to achieve thisforecast. The growth rate of 7.08 percent would be also the highest growth raterecorded since 2011.
In addition to the positive economic signals, Techcombank’s performance in thefirst six months of 2018 reinforced its position as the leading bank. Its totaloperating income (TOI) represented a 20 percent year-on-year increase, saidNguyen Le Quoc Anh, Techcombank’s CEO.
Anh said the bank had seen improvements in all of its businesses in the firsthalf of the year.
Furthermore, the bank’s focus on strengthening and deepening relationships withbusiness partners to diversify its income brought non-interest income to 41.7per cent of TOI. Income from business activities showed impressive growth incomparison to 2017, especially fee income (up 8 per cent from last year).
Strictly following its strategy, Techcombank continues transition fromproviding medium- and long-term loans to short-term loans. Its loan balanceincreased by 4 percent from 2017 year end, reaching 166.7 trillion VND as ofJune 30.
Its deposits grew by 9 percent from 2017 year end to 186.3 trillion VND, ofwhich current account and saving account balance (CASA) made up 25 percent.Capital adequacy ratio (CAR) was 15.9 percent, well above the State Bank ofVietnam’s regulatory requirement of 9 percent.
By continuing to make strong investments in human resources, technologicalplatforms and infrastructure, as well as by managing costs, the cost per incomeratio (CIR) was reduced to 27.94 percent in the first six months of 2018 (downfrom 29.09 percent as of the same period in 2017).
Riding on the back of the positive economic and market outlook in the remainingsix months of 2018, Techcombank said it would continue to attract morecustomers from its targeted affluent and mass affluent segments.-VNA
