Techcombank reports after-tax profit of over VND 18,000 billion in 2023.

Techcombank (HoSE: TCB), a Vietnamese commercial bank, has just announced its business results for the fourth quarter and the entire year of 2023.

Accordingly, at the end of the fourth quarter of 2023, Techcombank recorded net interest income of VND 7,597 billion, an increase of 11.4% compared to the same period last year. Other business activities also brought the bank favorable profits.

During the period, net profit from service activities reached VND 2,496 billion, a slight increase of 1.5% compared to the same period last year. Notably, net profit from foreign exchange trading, securities trading, and securities investment all recorded a sharp increase, reversing from negative to positive.

Specifically, Techcombank's net profit from foreign exchange trading reached nearly VND 313 billion, securities trading generated a profit of VND 32 billion, and investment securities trading yielded a profit of VND 247.5 billion. In contrast, during the same period last year, these activities resulted in a loss of VND 421 billion for Techcombank.

Only other business activities recorded a decrease in net profit of 37.6% compared to the same period last year, down to nearly 309 billion VND.

Thanks to strong net interest income and non-interest income, Techcombank's total operating income in Q4 2023 reached over VND 11,000 billion, an increase of 17.8% compared to the same period last year.

Amidst a trend of rising non-performing loans at many banks towards the end of the third quarter, Techcombank strengthened its risk provision buffer in the fourth quarter of 2023 to VND 1,634 billion, a 136.5% increase compared to the same period last year. As a result, at the end of the year, Techcombank's non-performing loan coverage ratio increased to 102%.

After deducting provisions, Techcombank's pre-tax profit in the fourth quarter reached VND 5,773 billion, an increase of 21.6%; the corresponding after- tax profit reached VND 4,482 billion, an increase of 25.5% compared to the same period last year.

For the full year, Techcombank's net interest income reached VND 27,691 billion, down 8.6% compared to 2022. The bank reported pre-tax profit of VND 22,888 billion, down 10.5%; after- tax profit was approximately VND 18,191 billion, down 11% compared to the previous year due to increased provisions from VND 1,936 billion last year to VND 3,921 billion.

In 2023, Techcombank set a pre-tax profit target of VND 22,000 billion. By the end of the year, the bank had already achieved 104% of its profit target.

As of December 31, 2023, Techcombank's total assets were recorded at nearly VND 849,500 billion, an increase of 21.5% compared to the end of last year. Customer deposits stood at VND 454,700 billion, an increase of 26.9% compared to the beginning of the year.

Techcombank's demand deposit balance reached VND 181,500 billion, an increase of 37% compared to the same period last year, equivalent to a growth rate of 39.9%.

On this date, the bank's customer loans increased by 23.3% to VND 518,642 billion. The bank's total non-performing loans amounted to VND 5,999 billion, of which substandard loans (Group 3 loans) increased by 105.8% to VND 1,857 billion.

Doubtful loans (Group 4 loans) increased by 144% to VND 2,762 billion. Loans with a high risk of default (Group 5 loans) of the bank also increased by 38% to VND 1,380 billion.

By the end of 2023, Techcombank's workforce had decreased by 770 people compared to the beginning of the year, down to 11,614. Despite this, the average cost per employee improved to 46 million VND/person/month .

Source