Healthy credit growth
In the first 6 months of 2024, net interest income (NII) increased to VND18.0 trillion, recording a growth rate of 40.2% compared to the same period last year. In the second quarter alone, NII reached VND9.5 trillion, up 11.5% compared to the previous quarter (equivalent to an increase of 50.6% compared to the second quarter of 2023). This result was driven by healthy credit growth and continued reduction in funding costs to 3.2%. As a result, net interest margin (NIM) improved to 4.6% on a quarterly basis.
Investment banking service fees reached VND1,792 billion, up 199.0% year-on-year. In the second quarter, Techcombank recorded a record investment banking service fee of VND1,000 billion, higher than the income of the period 2021-1H2022, before the corporate bond market faced many challenges.
Revenue from card services reached VND 1,022 billion, up 2.7% year-on-year. Revenue from insurance services reached VND 384.5 billion, up 32.5% year-on-year, bringing Techcombank to the Top 2 position in annualized premium (APE) in Q2/2024, and the Top 3 position in the first 6 months of 2024. The Bank also recorded VND 1,420 billion in income from other activities, with a high growth rate of 33.8% YoY, mainly from interest from bond trading activities. Positive income growth creates the premise for the Bank to maintain the Cost/Income ratio at 28.0% in the first half of 2024, a sharp decrease compared to 32.3% in the same period last year.
Provision expenses were recorded at VND2,855 billion, up 112.8% year-on-year. Coverage ratio was at a healthy 101% at the end of Q2/2024. NPL ratio was controlled below 1.3%, and capital adequacy ratio increased to 14.5%.
The Bank's capital position remains strong, with a loan-to-deposit ratio (LDR) of 79.6% as at 30 June 2024, in compliance with the ceiling of 80% as prescribed by the State Bank of Vietnam. The ratio of short-term funds used for medium and long-term loans was 24.2%, lower than 25.1% as at 31 March 2024. The Bank's Basel II capital adequacy ratio (CAR) increased to 14.5% as at 30 June 2024, after the Bank completed the payment of cash dividends, totaling VND5 trillion. The capital adequacy ratio continues to be within the target range of 14-15%, demonstrating the Bank's outstanding profitability on equity.
Total outstanding loans requiring special attention (SM) and non-performing loans (NPL) decreased slightly to VND12.1 trillion, from VND12.4 trillion at the end of the first quarter, thanks to the reduction in the rate of formation of special attention loans and success in debt collection. The NPL ratio was controlled at below 1.3%, of which the bank's own NPL ratio was only 1.08%.
CASA ratio reaches 37.4%, CASA balance continues at record high for the Bank
At the end of the second quarter of 2024, Techcombank's total assets increased by 6.9% compared to the beginning of the year, and 24% compared to the same period last year, to VND908.3 trillion. For the Bank alone, credit grew by 11.6% compared to the beginning of the year to VND591.6 trillion, in line with the credit limit granted by the State Bank of Vietnam (SBV).
On a consolidated basis, credit demand in the first half of 2024 was uniform across both corporate and individual customer groups, with individual customer credit recording more positive growth in the second quarter. Specifically, outstanding corporate customer credit increased by 4.3% over the same period in the second quarter, lower than the 7.0% increase in outstanding individual customer credit.
Outstanding home loans recovered to VND181.7 trillion, up 6.3% year-on-year and 9.1% year-on-year. Home loan disbursements continued to grow well, reaching VND31.2 trillion in Q2/2024, returning to the average level per quarter before the real estate market encountered difficulties in the second half of 2022-Q3/2023.
Customer deposits reached VND481.9 trillion, up 6% compared to the beginning of the year and 26.2% compared to the same period last year. The CASA ratio reached 37.4%, while the CASA balance remained at its highest level in history, at over VND180 trillion. The total balance in “Automatic Profit” accounts reached approximately over VND14 trillion, as of June 30, 2024.
Techcombank ended the first half of 2024 with about 14.4 million customers, adding nearly 1 million new customers during the period. Up to 55% of individual customers joined through digital platforms and 44% from branch channels, especially thanks to the program to expand the retail customer group (merchant).
The number of individual customer transactions via electronic banking channels reached 780.8 million in the second quarter of 2024, up 14.6% over the same quarter and 56.3% over the same period last year. In the first 6 months of the year, the total number of transactions reached 1.5 billion, up 57.4% over the same period last year. The total transaction value via electronic banking channels in the second quarter reached VND 2.9 million billion, and in the first 6 months it reached more than VND 5.5 million billion, up 25.5% over the same period last year.
After 12 months of implementing personalized value propositions for retailers, Techcombank has received exceptionally positive feedback from over 600,000 retailers nationwide, with many high results [LS.LH1] in the first half of 2024. CASA balance/customer improved by ~20% (compared to before the solution was deployed). The number of transactions via QR of retail customers reached an average of 17.5 million/month, 80% higher than at the beginning of the year.
Hat-trick of “Best Bank” awards from Euromoney, FinanceAsia and Global Finance
According to CEO Jens Lottner, Techcombank's outstanding strategy has been recognized by leading prestigious international organizations, marking Techcombank as the first Vietnamese bank to be honored as "Best Bank in Vietnam" by all three prestigious organizations, Euromoney, FinanceAsia and Global Finance, and especially in the same year 2024.
Techcombank has been named “Best Bank in Vietnam” by Euromoney for the fifth time since 2010. With this award, presented in the second quarter of 2024, Techcombank has become the only Vietnamese bank to receive a hat-trick of awards from the world’s leading prestigious organizations, namely Euromoney, Global Finance and FinanceAsia. This event recognizes positive business results, profitability, as well as affirms asset quality, superior risk management model and balance sheet strength.
The above award also affirms the “Customer-centric” strategy and the leading role in the digital transformation journey, creating digital-based solutions for individual, corporate and institutional customers. The quality of liquidity management, treasury and foreign exchange services for corporate customers is the premise for the Bank to be honored by Euromoney with the “Best Bank for Corporates” award.
Source: https://laodong.vn/kinh-doanh/techcombank-cong-bo-ket-qua-kinh-doanh-6-thang-dau-nam-2024-loi-nhuan-truoc-thue-tang-30-so-voi-cung-ky-nam-ngoai-1369867.ldo
Comment (0)