Techcombank’s profit is 6,800 billion dong in the first quarter of 2022, up 23%
According to information from Vietnam Technological and Commercial Joint Stock Bank (Techcombank), total operating income in the first quarter of 2022 increased by 13.2% year-on-year to 10.1 trillion dong, thanks to growth in both interest income and non-interest income.
Interest income came in at VND8.1 trillion, up 32.5% y/y, thanks to an expanded credit portfolio and stable net profit margin (NIM).
Service income1 increased 24.1% to VND2.0 trillion, with the contribution of fees from investment banking (IB) and letters of credit (LC), money & payments increased 35.3% and 55.1% respectively over the same period last year.
Fees from investment banking (IB) services reached 1.1 trillion dong thanks to a 132.5% increase in fees from bond issuance consulting and a 41.0% increase in fees from other IB services.
The cost-to-income ratio (CIR) stood at 30.7% with operating expenses up 21.3% y/y. The increase in operating expenses was mainly due to investments in technology and new headquarters (D’Capitale) to expand the business, which increased depreciation expenses. Consulting costs (among other costs) increased to support the Bank’s strategic decision making.
Provision expenses dropped significantly, 74.3% y/y, as many customers continued to recover once the COVID-19 pandemic was under control, resulting in lower provisioning, or some the previous provision is reversed.
Total assets reached VND 615.3 trillion as of March 31, 2022, up 32.9% over the same period in 2021.
Total credit balance of customers on the individual report at the end of the first quarter of 2022 reached VND 418.9 trillion, up 7.9% compared to the end of 2020.
In the consolidated report, outstanding loans to individual customers increased by 49.1% over the same period last year, reaching VND 171.6 trillion. Outstanding credit outstanding to large corporate customers (including loans and corporate bonds) and SME customers was 18.1% compared to the end of the first quarter of 2021, reaching VND 270.9 trillion.
Total deposits as of March 31, 2022 were 328.9 trillion dong, up 14.4% over the same period last year.
Other sources of capital mobilization continued to be strongly exploited. Syndicated loans increased nearly 3 times to VND 34.3 trillion and valuable papers reached VND 32.7 trillion, up 25.7% compared to the first quarter of 2021.
CASA balance reached VND 165.7 trillion, maintaining the high CASA ratio at 50.4% as of March 31, 2022, unchanged from the fourth quarter of 2021. CASA of individual customers contributed 107.8 trillion dong, up 24.8%. At the same time, efforts to expand the offering of product packages also helped increase CASA of corporate customers by 42.2%.
Term deposits reached VND163.2 trillion, up 1.8% compared to the end of 1Q2021, due to the Bank’s optimization of capital structure and balance sheet.
Capital adequacy ratio (CAR) according to Basel II reached 15.1% at the end of the first quarter of 2022, much higher than the minimum requirement of 8.0% of pillar I, Basel II, and inched slightly compared to the end of the year. 2021.
The bad debt ratio at the end of the first quarter of 2022 was at 0.7% with a bad debt coverage ratio of 160.8%.
Debt restructuring under the customer support program affected by COVID-19 is 1.6 trillion dong, equivalent to 0.4% of total outstanding loans, lower than 1.9 trillion dong at the end of 2021.
In the first quarter of 2022, Techcombank attracted more than 0.2 million new customers, bringing the total number of customers to more than 9.8 million. The volume and value of electronic transactions of individual customers in the first quarter of 2022 reached 194.6 million transactions, respectively (up 42.2% over the same period last year) and 2.7 million billion VND respectively. (up 38.9% over the same period last year).
In 2022, the Bank targets EBT of 27.0 trillion VND, up 16.2% compared to 2021. Credit 1 of the Bank is expected to increase 15.0% to 446.6 trillion VND or higher, within the limits set by the State Bank (SBV). Customer deposits will grow in line with actual credit as the Bank continues to leverage its strengths from optimizing asset-liability management (ALM). Techcombank plans to maintain the bad debt ratio below 1.5%.
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