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Techcombank official listing on the Ho Chi Minh City Stock Exchange on June 4th 2018

Mr. Nguyen Le Quoc Anh, CEO of Techombank said: “2018 marks an exciting year for the Vietnamese stock market as the country’s economy sustains its strong growth momentum. We believe this is the suitable time for Techcombank to be listed - after a long period of careful preparation, ensuring the listing brings the best profit to its shareholders and complies with all the legal regulatory requirements.”
 
In its 25 year journey of strong growth and impressive business results, Techcombank has been recognised as a trusted credit institution, being awarded “Best Bank in Vietnam”, with an ability to strengthen its market position in the banking and services-related industry.
 
At the end of 2017, Techcombank’s total assets reached VND269,392 billion. Amongst other listed or registered-for-trading banks, Techcombank is one of the commercial banks with a large amount assets. Techcombank also achieved breakthrough bussiness results with a consolidated PBT of VND8,306 billion, doubling that of 2016. ROAE increased significantly and reached 27.7%, which was the highest amongst all banks operating in Vietnam.


CEO Nguyen Le Quoc Anh believe Techcombank is following its growth path as planned, in order to achieve its strategic short term and long term goals
 
Business results in the past few years prove the Techcombank’s success in its strategy and direction as well as the strong capability to execute its plans. While it is not the largest bank by size, in 2017, Techcombank was a leading bank in efficiency and sutainability in operation as demonstrated in metrics such as labour productivity, non-interest income ratio, cost to income ratio, ROAA and ROAE. Even in the regional context, the above metrics place Techcombank amongst the market leaders. This is in line with surveys conducted by leading advisory firms, such as McKinsey and Korn Ferry Hay Group, which found that Techcombanks’ corporate strength and human resources efficiency was one of the highest in the banking sector globally.
 
Mr. Nguyen Xuan Minh, who oversees Techcombank’s investment banking business and is the Chairman of Techcom Securities, adds that “the Vietnamese market is at a critical inflexion point.  Techcombank, with a modern technological infrastructure, taking significant measures towards customer centricity, and committed to investing in developing our people and risk and operations excellence platform, has established a leading position in Vietnam.  We believe that this position will be reinforced over time along with the development of the economy.”
 
At the same event, Techcombank also announced plans to organize an extraordinary meeting of shareholders on June 14, 2018, in order to seek approval from shareholders for a plan to supplement its charter capital from the banks’ owners’ equity.  The purpose of this capital increase is to offer dividends to shareholders through retained earnings from the latest three years as well as the profit from the sale of treasury shares and the reserves that supplement charter capital, with a resultant charter capital level of VND34,970 billion. Shareholders will receive a stock dividend in a ratio of 1:2 (i.e. for each share held by a shareholder, they will receive two additional shares).
The CEO says “This charter capital increase plan is for the purposes of converting owners’ equity to capital that can be used to support business operation and growth, meeting all prudence and adequacy requirements, boosting risk management while facilitating the Bank’s stable and sustainable development. The share price will be adjusted in accordance with the stock dividend ratio. However, the valuation of the bank will not change. We believe Techcombank is following its growth path as planned, in order to achieve its strategic short term and long term goals”.

Techcombank's Board of Management members answered to questions from media
 
In the future, Techcombank will continue to invest significantly in the core areas selected to implement the Bank’s 2016-2020 strategy. One of such investment of note is the IT transformation project worth more than VND7,000 billion, which is expected to solidify Techcombank’s position as a leading bank in technology – its long-term vision since the early days.
 
About Techcombank
Established in 1993, Techcombank is one of the largest JSBs in Vietnam, and one of the leading banks in Asia. It provides a broad range of banking products and services to more than 5.4 million customers in Vietnam with an extensive network of 315 branches/transaction offices across Vietnam. In 2017, Techcombank achieved a total operating income of VND16.3 trillion and profit before tax of more than VND8 trillion (US$720 million and US$354 million, respectively using VND/US$ exchange rate of 22,698 as at December 31, 2017). The Bank had industry leading profitability in 2017 with return on average equity of 23.84%[1] and return on average assets of 2.09%[2]..
 
Techcombank has implemented a “customer-centric” business model in parallel with deploying their ecosystem approach through partnering with anchor corporate clients that are industry leaders in real estate, airlines, tourism, energy and telecommunications,etc.. Its tailored products and market-leading quality of service allows Techcombank to capture a high-quality retail customer base of affluent and mass-affluent Vietnamese which delivers the highest risk-adjusted returns. Additionally, Techcombank places emphasis on developing cooperative partnership to diversify its income stream, allowing the Bank to achieve the highest non-interest income ratio among all JSBs in Vietnam in 2017 of 45%. The Bank is also at the forefront of leveraging technology as a key enabler to deliver industry-leading services to its customers, and the ratio of customers using the Bank’s e-banking service increased by 5.3 times in the last two years.
 
Contact:
Pham Viet Cuong (Mr.)
Techcombank’s Marketing and External Affair
Email: cuongpv3@techcombank.com.vn
 
These materials are not an offer for sale of the securities in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Neither the issuer nor any seller of the securities intends to register any portion of the offering in the United States or to conduct a public offering of securities in the United States.
 

[1] Calculated on a monthly basis and excluding one-offs
[2] Calculated on a monthly basis and excluding one-offs