Techcombank's CASA (Current Account Savings Account) has increased again.

According to the newly released financial report of Vietnam Technological and Commercial Bank ( Techcombank , HoSE: TCB), the bank achieved a pre-tax profit of VND 11,300 billion and total operating income of VND 18,600 billion.

Specifically, the bank's interest income and similar revenue showed a 32% increase, while interest expenses and similar costs also surged, nearly tripling compared to the same period last year.

As of the end of June, Techcombank's net interest income reached over VND 12,800 billion, a decrease of 19.4% compared to the same period last year. Income from banking services, however, increased slightly by VND 381 billion to VND 3,963 billion, mainly due to the increase in payments and cash transactions, which accounted for 80% of the total. However, income from insurance partnerships, securities underwriting, and securities brokerage services declined.

Income from service activities increased by 4.7% year-on-year, reaching VND 4,400 billion, with contributions from card service fees reaching VND 995 billion (a 53.4% year-on-year increase). The bank recorded VND 1,061 billion in income from other activities, excluding reversal of provisions, compared to VND 43 billion in net expenses in the same period last year, mainly due to interest income from foreign exchange trading, reduced foreign exchange swap fees, and VND 731 billion in profit from the liquidation of its old headquarters in Hanoi in Q1/2023.

Operating expenses decreased by 10%, while provisions for credit risk doubled, causing Techcombank's after-tax profit for the first six months of the year to fall by 21% compared to the same period last year, reaching VND 9,040 billion.

In the second quarter alone, the bank used VND 807 billion to provision for credit risk, a 93% increase compared to the same period last year, resulting in a 23% decrease in after-tax profit to VND 4,503 billion.

In 2023, Techcombank set a target of achieving 22,000 billion VND in pre-tax profit, a 14% decrease compared to 2022. Thus, after half a year, the bank has already completed more than 51% of its full-year profit target.

As of June 30, 2023, Techcombank's total assets increased slightly by 4.7% to VND 732,470 billion. The majority of this was real estate business activities (accounting for nearly 32% of total outstanding loans). The outstanding balance of real estate business loans increased by more than 41% compared to the beginning of the year, reaching over VND 153,692 billion.

With this figure, Techcombank continues to lead the entire system in terms of real estate lending to date. Next is the outstanding loan balance to individual customers, which increased by more than 10% to VND 460,753 billion. However, deposits and credit extended to other credit institutions decreased by 14% to VND 71,193 billion.

Regarding the debt structure, Techcombank's total liabilities increased slightly compared to the same period last year to VND 732,470 billion, customer deposits increased by only 6.4% to VND 381,936 billion, and the remaining VND 153,625 billion consists of deposits and loans to economic organizations.

Regarding funding sources, customer deposits increased by 7% year-on-year, reaching nearly VND 381,947 billion. Of this, the proportion of demand deposits (CASA) in total deposits increased from 32% at the end of Q1 to 34.9% at the end of Q2 – reversing the downward trend after four quarters of decline. Time deposits reached VND 248,600 billion, an increase of 47.1% year-on-year .

Source