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Techcombank exceeds 2018 target, delivers 10,661 bn vnd in profit before taxes

  • The first JSB to exceed PBT 10,000 BN milestone
  • ROAE of 21.5% and ROAA of 2.9% reflect continued execution of business strategy
Vietnam continues to enjoy an economic resurgence that began in 2014, with 2018 growing at the fastest rate since the global economic crisis 10 years ago.  GDP growth for the fourth quarter was 7.3% versus last year, pushing the full-year growth to 7.08%.  Despite concerns over trade wars and rising interest rates, prudent monetary policy from the State Bank of Vietnam (“SBV”) helped Vietnam achieve high economic growth while maintaining low inflation (with the CPI up by only 3.54% in 2018).

Along with Vietnam’s economic growth, Techcombank achieved new records with PBT of 10,661 Bn VND (31% higher YoY) and Total Operating Income of 16,927 Bn VND (10% higher YoY). These achievements were driven by growth across all business divisions, including bank-wide credit growth of 20% in 2018 while asset quality remained healthy with NPLs ending the year at 1.8%.  Lower credit costs and disciplined expense management also contributed to record profits. 
 
Retail and SME continue to be the drivers of growth

In 2018, retail banking’s record performance built upon the foundations from previous years.  Mortgage lending grew by 20%, leading to retail loans contributing 45% of the total lending portfolio.  Additionally, retail deposits grew by 17% YoY, with a record high CASA ratio of 28.7% of total bank deposits. Also in 2018, Techcombank became the #1 franchise for Visa credit and debit cards and maintained its #1 position in bancassurance.

Being the backbone of the economy, solid growth among Small and Medium Enterprises (SME) reflects the strength of the broader economy. Techcombank achieved strong growth from corporate SME banking customers, with loan balances and revenues growing by 49% and 33% respectively. The strong business banking financial performance results from a series of transformation initiatives aiming to improve customer satisfaction, employee training & development, credit risk, and operations process improvements.
 
Addressing large corporate capital investment needs

In line with the SBV’s direction of growing corporate bonds to 20% of Vietnam’s GDP by 2030, Techcombank issued more than 60 trillion VND in corporate bonds (~USD2.6Bn) to support  funding needs of large corporates, representing 82% YoY growth.  “Supporting corporate funding needs through capital markets is a key part of our Balance Sheet re-alignment strategy,” said CEO NguyenLe QuocAnh. 

Through its 314 branches, Techcombank services the financial needs of more than 5MM retail and corporate customers by offering convenient credit card services, zero-fee online banking transactions, and a range of mortgage products to help customers achieve lifelong dreams of homeownership. The Q4/2018 financial performance continues the record of 13 consecutive quarters of YoY revenue growth. This steady performance is a key in building a solid and stable bank to serve the Vietnamese people and business communities. “We are very proud of our contribution to the continued growth of Vietnam’s economy” said CEO NguyenLe QuocAnh.