Reaching for new heights
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Chapter 3 - The achievement of Tech

Wholesale Banking (WB)

“In 2023, we achieved great milestones in our diversification strategy and sustainability commitment, significantly enhancing service quality while Reaching for new heights.”

Phan Thi Thanh Binh

Chief Wholesale Banking Officer
Phan Thi Thanh Binh
Overview

Despite unusual challenges in 2023, Wholesale Banking (WB) met our annual objectives and continued marching towards our 2021-2025 strategic goals. Our ability to maintain non-performing loans (NPL) at nearly 0% is the fruit of our robust risk management framework and market-leading approach to project financing.

The year also saw us shift gears as we diversified our revenue streams beyond real estate. This strategic move yielded substantial 60% year-on-year (YoY) growth in lending to non-real estate business customers. Similarly, fee income grew a notable 61% YoY. These achievements underscore the Bank's ongoing commitment to achieving balanced, prudent expansion across different customer segments and markets.

2023 Highlights
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In 2023, WB played a vital role in the Bank’s long-term ESG journey, not only ensuring Techcombank's compliance with advanced ESG practices but also enabling sustainable business for our clients.
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Our ongoing revenue diversification strategy produced strong growth in 2023. Specifically, this included:

Total operating income (TOI) Growth (YoY)
Utilities 84%
Travel and leisure 28%
FMCG 15%
Automotive 255%
Financial services 23%

Such strong revenue growth and contribution came from the significantly higher credit provided to customers outside the real estate space:

Credit growth1 (YoY)
Utilities 57%
Travel and leisure 311%
FMCG 14%
Automotive 227%
Financial services 35%

1 Quarterly average credit balance during 2022 and 2023.

Our focus on RM capability, investment in state-of-the-art payment, collection and treasury management solutions and leading FX and derivative capability drove strong sector-wide growth in CASA and fee income.

NFI growth (YoY) 61%
Utilities 79%
Travel and leisure 232%
FMCG 12%
Automotive 287%
Financial services 71%
CASA balance growth2 (YoY) 128%
Utilities 26%
Travel and leisure 334%
FMCG 3%
Automotive 258%
Financial services 183%

2 CASA balance at end of 2023 vs. end of 2022.

2024 Focus

Merging WB with Business Banking to create CIBG has been important to our strategic transformation. Not only will our value chain strategy become a real differentiator, across different sectors, for all our institutional clients but it will also allow us to better serve customers and deepen relationships with them.


Other areas of focus in 2024 include:


  • Enhancing RM capabilities, deepening industry expertise such as supplier led and distributor led value chain financing
  • Continuing to offer advanced, helpful tools at scale, e.g., global leading treasury and cash management via the Kyriba platform
  • Increase commitment to sustainable lending and best practices, leading with innovative solutions in targeted sectors like agriculture and textiles, energy, electric vehicles, and green construction.