Techcombank posts strongest quarter on record

Techcombank posts strongest quarter on record

Techcombank's pre-tax profit rose 23.7 per cent to VND28.9 trillion ($1.1 billion) in the first nine months of 2026, driven by growth across diversified income streams.

Photo: Techcombank

Announced on October 20, Techcombank's total operating income (TOI) reached VND45.2 trillion ($1.72 billion) in the period, up 17.1 per cent on-year. In the third quarter alone, pre-tax profit climbed 25.8 per cent to VND10.4 trillion ($392.5 million), the highest quarterly profit in the bank's history

Return on equity over the trailing 12 months increased to 16.3 per cent, from 14.4 per cent in the same period last year, while return on assets stood at 2.5 per cent.

Net interest income rose 16.9 per cent in the first nine months to VND32 trillion ($1.21 billion), including a 17.9 per cent increase to VND11.7 trillion ($441.5 million) in Q3. The quarterly net interest margin (NIM) continued to recover, improving to 3.5 per cent from 3.4 per cent in Q2 2026. Interest rate adjustments and optimisation of the loan portfolio towards higher-yielding assets helped offset pressure from funding costs.

Photo: Techcombank

Notably, Techcombank’s net fee and commission income (NFI) reached VND11.8 trillion ($445.3 million) in the first nine months, up 40 per cent on-year. In Q3 alone, the figure rose 44.6 per cent to VND4.2 trillion ($158.5 million).

NFI accounted for 26.2 per cent of TOI in the first nine months, compared with 21.9 per cent a year earlier. This growing contribution has helped diversify the bank’s income structure amid continued pressure on NIM.

Letters of credit (LCs), cash management, and payment services made the largest contribution, generating VND4.9 trillion ($184.9 million) in fees, up 136.6 per cent, supported by the continued expansion of LC solutions.

Insurance-related fees, including bancassurance and insurance services provided by the bank’s subsidiary, remained a key pillar of non-interest income, reaching VND1.7 trillion ($64.2 million), up 106.1 per cent. Revenue from these services amounted to VND705.5 billion ($26.6 million) in Q3.

Card service fees rose 29 per cent to VND1.5 trillion ($56.6 million). Fees from foreign exchange and derivatives services increased 27.1 per cent to VND1.1 trillion ($41.5 million) over the nine-month period, including a 37.7 per cent on-year increase to VND430 billion ($16.2 million) in Q3, reflecting stronger demand for foreign exchange risk hedging.

By contrast, investment banking (IB) service fees declined 17.5 per cent to VND2.8 trillion ($105.7 million). Distribution activity remained positive, although margins were affected by higher prevailing interest rates.

Net income from other activities, excluding recoveries of previously written-off debts, fell 48.2 per cent to VND872.7 billion ($32.9 million) amid less favourable market conditions, although the bank returned to profit from these activities in Q3.

Techcombank’s operating expenses totalled VND13.8 trillion ($520.8 million) in the first nine months, up 18.7 per cent on-year. In Q3, expenses reached VND5.3 trillion ($200 million), up 14.6 per cent on-quarter, and 17.9 per cent on-year, as the bank expanded its workforce, stepped up marketing activities, and increased technology investment.

The cost-to-income ratio stood at 31.9 per cent in Q3, remaining within management’s target range.

Meanwhile, provisioning expenses declined 30.5 per cent on-year to VND2.5 trillion ($94.3 million) in the first nine months. The trailing 12-month cost of credit fell to 0.4 per cent, or 0.3 per cent when recoveries of previously written-off debts were included.

As of September 30, Techcombank’s total assets reached VND1.3 quadrillion ($49.1 billion), up 16.7 per cent on-year.

Credit growth accelerated in Q3, supported by financing for key national projects. Including loans to projects excluded from the State Bank of Vietnam’s credit growth quota, the bank-only loan book expanded 16.3 per cent from the end of 2025. Growth within the quota set by the State Bank of Vietnam stood at 10.7 per cent.

Corporate lending reached VND542.4 trillion ($20.47 billion), up 20 per cent from the end of 2025, and 17.1 per cent on-year, primarily driven by disbursements for large-scale national infrastructure projects. The share of real estate loans declined to 29.9 per cent of total outstanding loans, following a temporary increase in Q2.

Lending to individual customers and small and medium-sized enterprises (SMEs) totalled VND419 trillion ($15.81 billion), up 12.7 per cent from the end of 2025, and 22.6 per cent on-year.

Unsecured lending continued to expand, mainly in the household business segment through the ShopCash product. SME lending recorded positive growth, while the outstanding mortgage portfolio remained stable.

Customer deposits reached VND692.1 trillion ($26.12 billion), up 8.4 per cent on-year, and 4 per cent from the end of 2025. Current account and savings account balances, including the bank’s automatic interest-earning feature, stood at VND245.9 trillion ($9.28 billion), accounting for 35.5 per cent of total customer deposits.

In Q3, Techcombank continued to diversify its funding structure, securing significant funding from international financial institutions.

As a result, its loan-to-deposit ratio improved to 77.7 per cent from 80.1 per cent, while the ratio of short-term funding used for medium- and long-term lending stood at 27.9 per cent.

The Tier 1 capital ratio under Basel II increased to 14.1 per cent, while the capital adequacy ratio remained at 15 per cent, placing the bank among the industry's best-capitalised lenders.

Regarding asset quality, the non-performing loan (NPL) ratio, including the impact associated with the National Credit Information Centre (CIC), stood at 1.36 per cent, compared with 1.15 per cent in the previous quarter. The increase was mainly attributable to several individual loans outside the bank’s core lending segments.

Excluding the CIC-related impact, the NPL ratio was 1.26 per cent. The loan loss reserve coverage ratio remained above 100 per cent, at 107 per cent.

Techcom Securities JSC (TCBS) recorded pre-tax profit of VND2.15 trillion ($81.1 million) in Q3, its highest quarterly result to date. Nine-month pre-tax profit reached VND5.71 trillion ($215.5 million), up 13 per cent on-year, and equivalent to 76 per cent of its full-year target.

TCBS maintained its leading position in corporate bond issuance advisory, with approximately 46 per cent market share.

Meanwhile, Techcom Life Insurance JSC generated approximately VND652 billion ($24.6 million) in new business premiums in Q3 and increased its charter capital to VND4.3 trillion ($162.3 million).

At the end of the first nine months, Techcombank served 19.1 million customers. Of the 1.8 million new individual customers acquired during the period, 65.3 per cent came through digital channels.

VIR