Customer transactions at Techcombank.
Techcombank's baseline credit assessment (BCA) continues to be among the top banks in terms of credit asset quality, at Ba3. Techcombank is the first bank to be upgraded by Moody's Outlook in 2024, in the context of many challenging market developments. This result from Moody's reflects the recognition of the bank's positive business results over the past year. Specifically, Techcombank's capital adequacy ratio and operating efficiency continue to be higher than the industry average, supported by diversified funding sources. Techcombank's funding structure and liquidity are expected to remain stable. Customer funding is expected to increase in 2023, with the CASA ratio improving to 40%, almost the highest among Vietnamese banks rated by Moody's. Moody's assesses that Techcombank will benefit from the recovery of the real estate market, as home transactions increase, contributing to an increase in both absolute and proportionate growth of personal home loans compared to real estate loans. This assessment is particularly based on the Bank's focus on lending to investors and real estate developers with better quality than the general market level. Moody's believes that Techcombank's credit risks related to real estate loans will stabilize in the coming period (12-18 months). According to Moody's, real estate transactions in Vietnam have shown many signs of improvement, with supply to the market expected to increase, in an environment where interest rates have fallen sharply by 200-300 points recently. The recovery of the economy , combined with the Government's positive and timely policies and directions, will contribute to a stronger recovery of the real estate market in the near future. High capital adequacy ratio and efficient operations (including profitability) are also important factors in Moody's assessment. Techcombank's capital adequacy ratio (CAR) (Tier 1 capital) will reach 14% by the end of 2023, maintaining its position among the leading banks in Vietnam. Techcombank's return on total assets in 2023 will be 2.4%, much higher than the industry average of about 1.4%. According to data released by S&P Capital IQ at the end of February 2024 on the ROA index of Southeast Asian and Indian banks with a book value of over 3 billion USD in the period 2019-2023, Bank Central Asia (BCA) of Indonesia and Techcombank (Vietnam) are leading with ROA indexes of 3.1% and 3%, respectively. Moody's expects Techcombank's outstanding loans to increase by about 20%, and net interest margin (NIM) to improve over the next 12-15 months thanks to a sharp decline in funding costs. However, Moody's also notes credit risks, and with them, the bank's profitability (profit) could be affected if the real estate market struggles. Techcombank's outstanding real estate loans currently account for 34% of its outstanding loans to corporate customers at the end of 2023. Techcombank will accelerate its performance in the last quarter of 2023 and meet or exceed all targets set out in the plan. Specifically, the bank will attract more than 2.6 million new customers in 2023, bringing the number of customers to more than 13.4 million nationwide.People
Source: https://nhandan.vn/moodys-nang-hang-trien-vong-cua-techcombank-len-muc-on-dinh-post801062.html
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