Unprecedented year, unprecedented results

On 24 April 2021, Vietnam Technological and Commercial Joint-Stock Bank (Techcombank) held its 2021 Annual General Meeting of Shareholders (AGM). The shareholders approved all resolutions presented, including the 2021 business plan.

The pandemic and resulting stress on public health systems have had a spill-over effect on the operating environment for businesses, employees, customers and countless individuals and family livelihoods. While no country has escaped COVID-19, some have better managed its impact, setting them up for faster economic recovery. Against this backdrop, thanks to the Vietnamese government’s early and aggressive intervention, the country has emerged as one of the few countries to record positive economic growth (2.9%) in 2020, albeit the lowest in over a decade. Techcombank supported impacted customers, employees and the broader community during the pandemic. So far, the bank has responded with a VND 41 trillion support package, which includes debt moratoriums, interest waivers, interest reductions, and has helped over 3,200 customers. 

Techcombank delivered strong results in 2020, despite unprecedented and unpredictable economic environment. The Bank posted VND 15.8 trillion Profit before tax (PBT), +23.1% Year-on-Year (YoY) and VND 27.0 trillion Total Operating Income (TOI), +28.4% YoY. Return on Assets (ROA) improved to 3.1%, and CASA ratio (46.1%) was the highest amongst local peers. Techcombank reported a 16.1% Capital Adequacy Ratio (CAR), 0.5% Non-performing loan (NPL) ratio and 171.0% loan loss coverage ratio, indicating healthy asset quality and prudent risk management.


2021 Outlook
Shareholders approved the retention of all earnings to help the bank continue its growth trajectory. 2021 performance targets were presented during the meeting. PBT is expected to reach VND 19.8 trillion, up 25.3% from 2020. The Bank’s total credit1 is projected to increase 12.0% YoY to VND 356,199 billion, or higher, in line with any quota that may be granted by the State Bank of Vietnam. Deposits are expected to reach VND 334,291 billion, implying 14.7% YoY growth, and will be managed in accordance with actual credit growth as part of the bank’s Asset Liability Management (ALM). Techcombank plans to keep NPL below 2.0%.
The bank reported that it will increase the charter capital to VND 35,109 billion, an increase of 0.17% in conjunction with the planned issuance of 6.0 million ESOP shares.
The shareholders also ratified revisions to the Bank’s Charter and to the organisation and operation of the Board of Director (BOD), Board of Supervisory (BOS) in accordance with the new Revised Law on Securities and as a results of above mentioned ESOP issuance.
Next 5 years (2021-25)
Techcombank shared its next 5-year strategy (2021-25) and updated its Vision and Mission statement to “Change banking, change lives”, helping Vietnamese people and businesses achieve their full potential. The Bank plans to accelerate the key foundational investments to enable business models in line with its vision. It will double down on the biggest opportunities such as CASA, mortgages, real estate value chain and wealth management (e.g., bonds, funds, Bao Loc CD, Bancassurance, etc.). It will also continue to diversify into other areas towards risk-return optimisation and participating in emerging opportunities. The results at the end of 5 years are targeted to translate into USD 20 billion in market capitalization with ~20% ROE, 30% NFI/TOI, and 55% CASA ratio.
Additional details of the Bank’s 2020 performance and 2021 focus can be found on the Bank’s website at following link 2021 AGM Documents.
  1. Bank’s credit exposure according to the SBV’s regulation
  2. Including certificates of deposit to individual customers
Techcombank was established in 1993, just as Vietnam was beginning its transition from a centrally planned to more market-oriented economy.

As Vietnam’s most pioneering bank, it is committed to continuously delivering greater value to customers and stakeholders. Techcombank’s customers seek autonomy, and they own their desire for success on their own terms. The Bank’s mission is to lead the digital transformation of the financial industry, enabling individuals, businesses, and corporations to progress and thrive sustainably. It believes a society can only prosper when its people are financially empowered.

Starting with VND 20 billion in charter capital, Techcombank is now Vietnam’s 3rd largest bank by profit with highest return on assets. This success is driven by a strategy of focusing on customers and their evolving needs, especially over the past 5 years. In the next five years its focus on customers will not change but products and services will be further enhanced, being enabled by stronger than ever investments in digitalization, data and talent.
Techcombank provides a broad range of products and services to over 8.4 million retail and corporate customers in Vietnam. Its extensive network includes one (1) head office, two (2) representative offices and 309 transaction offices across 45 cities and provinces.

Techcombank is rated highest among banks in Vietnam with a Ba3, Positive Outlook by Moody’s and was the only bank that was restrained by sovereignty ratings. It is rated BB-, Positive Outlook by S&P. The Bank was named The Best Bank in Vietnam by Euromoney in 2018, The Best Bank in Vietnam by FinanceAsia in 2020. Techcombank is listed on the Ho Chi Minh Stock Exchange (HoSE) under the ticker TCB VN.