Techcombank reported a continued growth streak by delivering its 14th consecutive quarter of YoY growth in revenue. The Bank reported a record first-quarter revenue & profit before tax (PBT) of VND4.2 Tn and VND2.6 Tn during its first quarterly analyst presentation of 2019. Excluding recoveries and one-time events, total revenues increased 17.6% YoY with growth in lending and non-lending income.  Provision expenses, meanwhile, dropped significantly as a result of healthy asset quality from VND0.8 Tn to VND0.2 Tn (down 80% YoY), contributing to an increase in PBT of 2% and a return on assets (ROA) of 2.84%.

CFO Trinh Bang takes the stage to present Q1 financial result
Interest income grew to VND3.4 Tn for the quarter, while non-interest income was VND1.0 Tn, led by a 15.7% increase in fees. Fee income growth was driven by contributions from the bank’s market-leading bond advisory and bancassurance businesses.
“On the heels of a very successful 2018, the first quarter of 2019 is off to a strong start as revenues and profits continued their record run of year-over-year growth,” shared Mr. NguyenLe QuocAnh, CEO, Techcombank. “We are proud of our consistent financial performance which is a direct result of putting our customers at the center of everything we do.”  
Strong & robust balance sheet growth while reducing deposit costs
Lending to small- and medium-sized enterprises (SMEs) continued to see strong results, growing 52.5% YoY. Mortgage balances grew 33% YoY and were the largest contributor to retail loan growth. According to Mr.NguyenLe, this reflects the company’s “commitment to enabling Vietnamese people to realize their dreams of home ownership”.   
Techcombank also continued to address the long-term credit needs of its large corporate customers by arranging corporate bonds with VND4.8 Tn of issuance in the first quarter, thereby reducing its large corporate loan book by VND 4.4 Tn (down 8%). This helped the Bank maintain a robust liquidity position with the ratio of short-term funds being used for medium- and long-term loans at 30.5%, well below the State Bank of Vietnam’s (SBV) ceiling of 40%.

Ms.Le Thị Bich Phuong (Head of Personal Financial Services Banking)
shares about quarter growth in  CASA balances 

In the meantime, the bank continues to drive to reduce cash transaction in the economy. As of the end of Q1 2019, Techcombank became entrenched as the market leader in total payment volume in both VISA Debit and Credit Card, growing 18.0% and 6.2% annually. As a result, CASA balances for the quarter grew to VND58.6 Tn and contribute to lower funding costs.
Strong capital adequacy and healthy asset quality

Techcombank’s Capital Adequacy Ratio (CAR) ended the quarter at 13.8%, enables Techcombank to adopt Basel II before 2020 as requirement from the SBV.

Non-performing loan ratio, on the other hand, was at 1.8%. The continued focus on strong risk management led to an 80% reduction in provision expenses compared to the first quarter of 2018, and contributed to the Bank’s exceptional performance.
“We continue to enhance our credit portfolio to allow us to serve our customers through market cycles and deliver long-term shareholder value,” noted Mr. NguyenLe.

Established in 1993, Techcombank is one of the largest and most profitable joint stock banks in Vietnam, and one of the leading banks in Asia. Through its nationwide network of 314 branches, Techcombank delivers a broad range of financial products and services to meet the daily and long-term needs of more than six million retail and corporate customers.
Techcombank is recognized for its differentiated, customer-centric strategy, and for leveraging technology to deliver industry-leading services. Techcombank has received numerous industry awards and accolades, and was named the Best Bank in Vietnam 2018 by EuroMoney, a leading international magazine covering global financial markets.
Techcombank is listed on the Ho Chi Minh Stock Exchange (HOSE) under the ticker TCB. More information about Techcombank is available