According to the newly released financial report of Vietnam Technological and Commercial Joint Stock Bank ( Techcombank , HoSE: TCB), the bank had pre-tax profit of VND 11,300 billion, total operating income of VND 18,600 billion.
Of which, interest income and similar income of the bank showed signs of growth of 32%, interest expenses and similar expenses also increased dramatically, nearly 3 times higher than the same period last year.
As of the end of June, Techcombank's net interest income reached over VND12,800 billion, down 19.4% year-on-year. Profit from banking services increased slightly by VND381 billion to VND3,963 billion, mainly due to the increase in payments and cash, accounting for 80% of the proportion, but insurance cooperation services, securities underwriting and securities brokerage decreased.
Service income increased by 4.7% year-on-year to VND4,400 billion, with the contribution from card service fees reaching VND995 billion (up 53.4% year-on-year). The bank recorded VND1,061 billion in income from other activities, excluding provision reversals, compared to VND43 billion in net expenses in the same period last year, mainly due to interest income from foreign exchange trading, reduced foreign exchange swap costs as well as VND731 billion in profit from the liquidation of the old headquarters in Hanoi in the first quarter of 2023.
The bank's operating costs decreased by 10%, while the credit risk provision doubled, causing Techcombank's after-tax profit in the first 6 months of the year to decrease by 21% compared to the same period last year, reaching VND9,040 billion.
In the second quarter alone, the bank used VND807 billion to reserve for credit risks, an increase of 93% over the same period, so the bank's after-tax profit also decreased by 23% to VND4,503 billion.
In 2023, Techcombank aims to earn VND22,000 billion in pre-tax profit, down 14% compared to 2022. Thus, after half a year, this bank has completed more than 51% of the annual profit target.
As of June 30, 2023, Techcombank's total assets increased slightly by 4.7% to VND 732,470 billion. Of which, the majority is for real estate business activities (accounting for nearly 32% of total outstanding loans). The outstanding real estate business loans have increased by more than 41% compared to the beginning of the year, recording more than VND 153,692 billion.
With this figure, Techcombank continues to lead the entire system in real estate lending to date. Next is outstanding loans to individual customers, which increased by more than 10% to VND460,753 billion. However, deposits and credit to other credit institutions decreased by 14% to VND71,193 billion.
Regarding debt structure, Techcombank's total liabilities increased slightly compared to the same period to VND 732,470 billion, customer deposits increased only 6.4% to VND 381,936 billion, the remaining VND 153,625 billion was deposits and loans to economic organizations.
In terms of capital, customer deposits increased by 7% compared to the beginning of the year, reaching nearly VND381,947 billion. Of which, the ratio of non-term deposits in total deposits (CASA) increased from 32% at the end of the first quarter to 34.9% at the end of the second quarter - reversing the increase after 4 quarters of decline. Term deposits reached VND248,600 billion, up 47.1% over the same period last year .
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