Techcombank achieved US$288.4 million before-tax profit in H1
Viet Nam Technological and Commercial Joint-Stock Bank (Techcombank) recorded before-tax profit of VND6.7 trillion (US$288.4 million) in the first half of this year, representing 19 per cent year-on-year increase and extended to 19 consecutive quarters of year-on-year revenue growth, despite continuing challenges due to COVID-19.
Its after-tax profit of VND5.4 trillion increased 19 per cent over VND4.5 trillion for the first half of 2019. The bank continued to lead the market with a healthy 2.9 per cent return on assets (ROA) for the last twelve months ended June 30, 2020. Capital position is strong with Basel II CAR at 16.9 per cent.
Techcombank’s Total Operating Income (TOI) grew 30 per cent to VND11.8 trillion for the six months ended June 30, 2020 from VND9.1 trillion in the first half of 2019.
Net interest income (NII) for the first half grew to VND8.1 trillion, up 23 per cent from the same period last year. Net Fee and Commission Income (NFI) was VND2 trillion, posting 57 per cent year-on-year increase. NFI was 16.8 per cent of TOI as compared to 13.8 per cent in the first half of 2019, with a strong contribution from bond underwriting activity during the period.
In the second quarter of 2020, Techcombank continued to proactively write off selected non-performing loans. Provision expenses for the first half 2020 prudently increased to VND1.2 trillion from VND239 billion against the same period last year.
Its total assets were VND395.9 trillion, an increase of 9.8 per cent. Total credit extended to customers as of June 30 was VND265 trillion, an increase of 7.4 per cent over the corresponding period last year.
Techcombank maintained ample liquidity exceeding regulatory requirements with a loan-to-deposit ratio of 72.5 per cent and short-term funds to medium-to-long-term loans ratio of 25.5 per cent, improving from the 38.4 per cent at the end of 2019.
In the second quarter of 2020, Techcombank successfully raised $500 million in its Inaugural Syndicated Offshore Loan Facility – a 3-year senior unsecured loan which offers an interest margin of 1.5 per cent per annum over London Inter-Bank Offered Rate (LIBOR). Loan proceeds are for general corporate and working capital purposes and will serve as an additional liquidity cushion for the bank.
“The overwhelming success of this transaction and pricing achieved affirms the international lenders’ solid confidence in Techcombank’s robust credit profile and customer-centric business strategy,” said Phung Quang Hung, Managing Director and Standing Deputy CEO of Techcombank.
NPL ratio was 0.9 per cent as of June 30, 2020, against 1.8 per cent in the same period last year. NPL ratio decreased due to the bank’s proactive writing off of bad debts in the first half of 2020.