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Strong momentum and poised for highly profitable growth

1Q2022 HIGHLIGHTS:
  • VND 6.8 trillion PBT – up 23.0% YoY
  • TOI up 13.2% YoY to VND 10.1 trillion
  • Maintained sector-leading 50.4% CASA ratio and 3.6% ROA
  • Robust Basel II CAR of 15.1%
“Techcombank again delivered strong results for the first quarter of 2022. The bank is operating at a very high level of profitability and is seeing strong demand across all customer segments. Yet, the environment remains complex to navigate. During the first quarter, the Omicron outbreak caused disruptions in a number of organisations, including ours. And more recently, the rightful move by regulatory authorities to sanction certain unhealthy practices in the bond and real estate sectors has created some nervousness in financial markets.
 
However, challenges create opportunities for organisations, like Techombank with a strong customer focus, build for the long-term and have a responsible approach to risk-management. Exiting the quarter, Vietnam’s international borders have completely reopened, restrictions on domestic economic activities have been lifted and the economy is gaining pace. There are therefore reasons to be optimistic. The bank is stronger than it has ever been and is well-positioned to serve the dreams and aspirations of Vietnam’s people, as we work together to change banking and change lives.”

 
Jens Lottner, CEO Techcombank
1Q22 income statement
  • Strong NII and NFI growth drove a 13.2% YoY uplift in TOI to VND 10.1 trillion
  • NII expanded 32.5% YoY to VND 8.1 trillion, primarily driven by growth of credit book with NIM stable at 5.6%
  • NFI1 grew 24.1% YoY to VND 2.0 trillion with strong growth from IB services (+35.3% YoY) and Letters of credit, cash & settlement (+55.1% YoY)
  • Strong IB fees (VND 1.1 trillion) were driven by 132.5% growth in bond underwriting and 41.0% growth in other IB services, thanks to broadened product range and more than doubled customer base
  • Operating expenses increased 21.3% YoY to VND 3.1 trillion with CIR at 30.7%, in line with the Bank’s strategic plan to invest into Digital, Data and Talent
  • Provision expenses decreased sharply by 74.3% YoY, as customer financial health continued to improve, allowing reversal of some provisions made in prior reporting quarters
1Q22 balance sheet

Total assets grew 32.9% YoY to VND 615.3 trillion at 31 March 2022: 
  • At the bank level, customer credit  grew 7.9% YTD to VND 418.9 trillion, reflecting healthy demand across all segments
  • On a consolidated basis, retail loans grew 49.1% YoY to VND 171.6 trillion and credit to large corporates and SMEs (loans and bonds) grew 18.1% to VND 270.9 trillion
  • Customer deposits were up 14.4% YoY to VND 328.9 trillion while CASA balances increased further to VND 165.7 trillion, allowing the CASA ratio to be maintained at the high level of 50.4%, unchanged from 4Q21
  • Continued progress was made in the diversification of the Bank’s funding sources with syndicated loans up nearly 3-fold YoY to VND 34.3 trillion and valuable papers up 25.7% YoY to VND 32.7 trillion
  • Term deposits saw moderate growth of 1.8% YoY to VND 163.2 trillion, as the Bank continues to optimize its cost of funding
1Q22 liquidity and capital
  • At 31 March 2022, the loan to deposit ratio (LDR) stood at 71.9% and the short-term funding to medium and long-term loan ratio stood at 32.2%, both comfortably below the regulatory limits
  • At 15.1%, the capital adequacy ratio (CAR) was well above the Basel II Pillar I minimum requirement of 8.0% and slightly above its level of 31 December 2021
1Q22 asset quality
  • 1Q22’s NPL ratio was 0.7%, with a healthy coverage ratio of 160.8%, reflecting the Bank’s asset quality and stability during and post COVID
  • Rescheduled loans under COVID-19 customer support program were VND 1.6 trillion (0.4% of outstanding loans), down from VND 1.9 trillion at 31 December 2021
1Q22 subsidiaries
  • Solid performance by TCBS contributed to strong consolidated results, with revenue in 1Q22 up 65.0% YoY to VND 1.7 trillion and PBT up 39.5% YoY to VND 1.2 trillion
  • In 1Q22, TCBS captured 5.6% of stock brokerage market share on the HOSE and ranked No.3 in margin lending
  • TCBF, an open-ended bond fund managed by TCBS, remained the largest domestic bond fund with VND 20.6 trillion assets under management at 31 March 2022
CUSTOMER AND OTHER HIGHLIGHTS

New customers

The Bank ended 1Q22 with more than 9.8 million customers, adding over 200,000 in the last quarter. The number of retail customer transactions through e-banking channels grew to 194.6 million during 1Q22, up 42.2% YoY. Transaction value grew 38.9% YoY to VND 2.7 quadrillion.

Successful 2022 AGM

On 23 April 2022, the shareholders of Techcombank held the Annual General Meeting and approved all the resolutions presented by the management, including the 2022 business plan. Shareholders approved in particular the retention of all earnings to fund the investments in Digital, Data and Talent to support the Bank’s growth trajectory, as set out in the 2021-2025 strategy. The 2022 performance targets were also presented during the meeting, confirming that the Bank is well positioned to capitalise on economic recovery as Vietnam emerges from the pandemic.
For 2022, PBT is guided to reach VND 27.0 trillion, up 16.2% from 2021. The Bank’s total credit is projected to increase 15.0% YoY to VND 446.6 trillion, or higher, depending on the final quota granted by the State Bank of Vietnam. Deposits growth will be managed in accordance with actual credit growth as the Bank pursues the optimisation of its asset and liability management (ALM). Techcombank plans to keep NPL below 1.5%.
 
Awards and Recognition:

Techcombank was awarded the “Most Recommended Retail Bank in Vietnam” by The Asian Banker. The ranking is based on the BankQuality Consumer Survey and Ranking (BQS), with the participation of 11,000 customers in 11 markets across the Asia Pacific region.

In addition to the external recognition for the effort of improving services provided to retail customers, Techcombank was also honored by The Asian Banker as the “Best Corporate Payment Implementation in Vietnam”, in recognition for the outstanding achievements of digitizing payment solutions to meet customers' needs. In particular, The Asian Banker highlighted the 100% automatic payment and reconciliation system for corporate customers, which helps to save costs as well as solve “congestion” problems in processing a large volume of transactions.
 
Learn more about Techcombank’s results:

Techcombank will present 1Q22 financial results via two conference calls (please log in 15 minutes prior):
 
1. Institutional investors and analysts can join us at 2:45 pm on 27 April 2022 2. Retail investors (in Vietnamese only) can join us at 2:45 pm on 28 April 2022 View the webcast and presentation slides any time at https://www.techcombank.com.vn/investors/financials/documents/ (Tab “ Documents”).
 
Your public relations contact:
 
Nguyen Thi Bich Thuy
PR – Marketing Division
Tel: +84 24 3944 6368 – Ext: 8494
Email: [email protected]
 
Your investor relations contact:


Investor Relations Department
Email: [email protected]
 

About Techcombank
 
Techcombank is listed on the HOSE as TCB VN. It was established in 1993 as Vietnam was transitioning from a centrally planned to a more market-oriented economy.
  • Techcombank is now one of Vietnam’s largest joint stock banks and a leading Asian bank. The Bank pursues a proven customer centric strategy, with a broad range of banking solutions and services to more than 9.8 million customers, through an extensive network of over 300 transaction offices. The Bank’s ecosystem approach, which is implemented across multiple key economic sectors, further differentiates Techcombank in one of the world’s fastest growing economies.
Moody’s rates Techcombank the highest among Vietnamese banks with a Ba3, Positive Outlook – the only bank constrained by the sovereign rating. S&P rates the Bank with BB – (Stable Outlook).
Techcombank awards include:
  • Best Bank in Vietnam – Euromoney in 2018 and 2021
  • Best Bank in Vietnam – FinanceAsia in 2020 and 2021
  • Leading Partner Bank in Vietnam 3Q21 – Asia Development Bank
  • One of the best Asian companies to work for – HR Asia, two consecutive years
  • ‘Best Payments Bank’, ‘Most Recommended Transaction Bank’, ‘Most Recommended Retail Bank’ and ‘Best Corporate Payment Implementation’ in Vietnam in 2021  – The Asian Banker
  • 2021 Best Treasurer, Asia Pacific (Marquee Award) – Corporate Treasurer.
 
Acronyms:
APE – Annual premium equivalent
LC – Letter of Credit
CAR – Capital adequacy ratio
CASA – Current account savings account
CIR – Cost-to-income ratio
FY2021 – Financial year 2021 
HOSE – Ho Chi Minh Stock Exchange
IB – Investment banking
LDR – Loan-to-deposit ratio
NFI – Net fee and commission income
NII – Net interest income
NIM – Net interest margin (LTM)
NPL – Non-performing loan 
PBT – Profit before tax
Q1, Q2, Q3, Q4  – Quarter 1,2,3,4
ROA Return on assets
SME – Small and medium-sized enterprise
ST – Short-term
TCBS – Techcom Securities
TOI – Total operating income
VND – Vietnamese dong
YoY – Year-on-year
 
Balance sheet (VND billion) 1Q21 2Q21 3Q21 4Q21 1Q22 QoQ YoY
Total assets 462,823 504,304 541,635 568,729 615,270 8.2% +32.9%
Deposits from customers 287,446 289,335 316,376 314,753 328,914 4.5% +14.4%
Credit growth2 (YTD) 5.7% 11.2% 14.1% 22.1% 7.9%  n/a5  +218 bps
CASA ratio 44.2% 46.1% 49.0% 50.5% 50.4% -8 bps +615 bps
NPL ratio 0.4% 0.4% 0.6% 0.7% 0.7%  +1 bps  +28 bps
Credit cost (LTM) 0.8% 0.9% 0.7% 0.7% 0.6%  -8 bps  -18 bps
Coverage ratio 219.4% 258.9% 184.4% 162.9% 160.8%  -201 bps  -5,855 bps
Capital and liquidity              
Basel II CAR 15.8% 15.2% 15.2% 15.0% 15.1% +9 bps -70 bps
Basel II Tier 1 ratio 15.4% 14.8% 14.7% 14.6% 14.7% +9 bps -72 bps
ST funding to MLT loans3 34.4% 39.1% 32.6% 28.8% 32.2% +340 bps -227 bps
SBV LDR4 79.2% 76.6% 76.7% 75.0% 71.9% -314 bps -736 bps
 
Profitability (VND billion) 1Q21 1Q22 YoY        
Net interest income 6,124 8,111 +32.5%        
Non-interest income 2,808 2,001 -28.8%        
Total operating income 8,932 10,112 +13.2%        
Operating expenses (2,563) (3,108) +21.3%        
Profit before tax 5,518 6,785 +23.0%        
NFI/TOI6 19.0% 20.5% +144 bps        
CIR 28.7% 30.7% +204 bps        
ROA (LTM) 3.5% 3.6% +15 bps        
ROE (LTM) 20.1% 21.8% +167 bps        
NIM (LTM) 5.2% 5.6% +40 bps        
Cost of funds 2.4% 2.2% -17 bps