Vietnam Technological and Commercial Joint-Stock Bank (Techcombank) delivered a record profit before tax (PBT) of VND3.1 trillion (US$132.09 million) in the first quarter of 2020, up 19.2 percent year-on-year, on total operating income (TOI) of VND6 trillion ($255.53 million), up 37.3 percent year-on-year, extending the streak to 18 quarters of year-on-year revenue growth amid a difficult backdrop due to the global novel coronavirus disease (COVID-19) pandemic.

Techcombank recorded PBT for the quarter ended March 31, 2020 of VND3.121 trillion ($132.09 million), up 19.2 percent versus a year ago.

Profit after tax (PAT) of VND2.506 trillion ($106.77 million) increased 19.8 percent over VND2.092 trillion ($89.13 million) for the quarter ended March 31, 2019.

The bank continued to lead its peers with a healthy three percent return on assets (ROA) for the last twelve months ended March 31, 2020.

Capital position is strong with Basel II CAR at 16.6 percent, more than twice the minimum requirement.

During the quarter, government measures to contain the disease outbreak affected certain business and economic activities throughout the country.

In response to COVID-19, Techcombank implemented rigorous safety measures to protect customers and employees and was able to keep all branches and ATMs operating normally.

These actions combined with market leadership in online and mobile banking ensured that customers continued to be well-served during this difficult period.

Techcombank also announced a comprehensive support package for qualified individuals and corporate customers affected by the COVID-19 outbreak.

Income statement

The bank’s total operating income (TOI) grew 37.3 percent to VND6.030 trillion ($256.87 million) for the quarter ended March 31, 2020 from VND4.392 trillion ($187.1 million) in the first quarter of 2019.

Net interest income for the quarter grew to VND4.212 trillion ($179.43 million), up 22.8 percent from the quarter ended March 31, 2019.

Net fee and commission income (NFI) was VND862 billion ($36.72 million) for the quarter ended March 31, 2020, up 73.1 percent year-on-year.

NFI was 14.3 percent of TOI as compared to 11.3 percent in the year-ago quarter, with strong contribution from bond underwriting activity during the quarter.

Operating expenses of VND2.138 trillion (US$91.07 million) for the quarter ended March 31, 2020 resulted in a cost to income ratio (CIR) of 35.4 percent compared to 36.6 percent a year ago and 35.3 percent in the December quarter.

Provision expenses prudently increased for the quarter ended March 31, 2020 to VND772 billion ($32.88 million) from VND167 billion ($7.11 million) for the quarter ended March 31, 2019, as the bank chose to proactively write off selected non-performing loans.

Balance sheet

Total assets were VND391.8 trillion ($16.69 billion), an increase of 20.1 percent compared to the quarter ended March 31, 2019 and up 2.1 percent versus the end of 2019.

Total credit extended to customers as of March 31, 2020 was VND265.4 trillion ($11.31 billion), an increase of 22.5 percent over March 31, 2019 and up 2.9 percent from the end of 2019.

Total deposits as at March 31, 2020 were VND235.1 trillion ($10.02 billion), an increase of 13 percent over March 31, 2019.

CASA deposits grew by 29.3 percent year-over-year to VND75.7 trillion ($3.23 billion), while time deposits were at VND159.4 trillion ($6.79 billion), an increase of 6.7 percent over the previous year as the bank continued to focus on CASA growth.

CASA ratio of 32.2 percent for the quarter ended March 31, 2020 was up from the 28.2 percent in 1Q19.

Liquidity and capital

Techcombank maintained ample liquidity exceeding regulatory requirements with a loan-to-deposit ratio of 76.8 percent and short-term funds to medium-to-long-term loans ratio of 30.7 percent, improving from the 38.4 percent at the end of 2019.

The bank also maintained its position as the best capitalized bank in Vietnam with a Basel II Capital Adequacy Ratio (CAR) of 16.6 percent, more than double the Basel II Pillar I minimum requirement of eight percent and up from 15.5 percent at the end of 2019.

Asset quality

NPL ratio was 1.1 percent as at March 31, 2020, against 1.3 percent as at December 31, 2019 and 1.8 percent as at March 31, 2019.

NPL coverage ratio as at March 31, 2020 was 117.9 percent.

Customer and other highlights

In 1Q20, Techcombank added over 250,000 net new customers to bring the total customers served by the bank to nearly eight million.

Customers using e-banking2 services reached 79.9 percent, an increase from 60.4 percent in the first quarter of 2019.

Transaction volume and value during the quarter through Techcombank’s e-banking channels increased to 78 million, up 149 percent year-over-year, and VND1.136 quadrillion ($48.41 billion), up 113 percent year-over-year, respectively, and reflect the ongoing preference for the convenience of the bank’s digital solutions.

About Techcombank

Established in 1993, Techcombank is one of the largest joint stock banks in Vietnam, and a leading bank in Asia.

Techcombank pursues a proven customer-centric strategy in providing a broad range of banking solutions and services to almost eight million retail and corporate customers in Vietnam through an extensive network of over 300 transaction offices across the country and through its market leading digital banking services.

The bank’s ecosystem approach implemented across multiple key economic sectors further differentiates Techcombank in one of the fastest growing economies in the world.

Techcombank is rated highest among banks in Vietnam with a Ba33 from Moody’s and BB-4 from S&P and was named Best Bank in Vietnam 2018 by Euromoney.

Techcombank is listed on the Ho Chi Minh Stock Exchange (HOSE) under the ticker TCB.