Vietnam Technological and Commercial Joint-Stock Bank (Techcombank) recorded Profit before tax (PBT) for the quarter ended March 31, 2020 of VND 3.121 trillion, up 19.2% versus a year ago. Profit after tax (PAT) of VND2.506 trillion increased 19.8% over VND2.092 trillion for the quarter ended March 31, 2019. The Bank continued to lead its peers with a healthy 3.0% return on assets (ROA) for the last twelve months ended March 31, 2020. Capital position is strong with Basel II CAR at 16.6%, more than twice the minimum requirement.
During the quarter, government measures to contain the outbreak affected certain business and economic activities throughout the country. In response to COVID-19, the Bank 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.
The Bank’s Total Operating Income (TOI) grew 37.3% to VND6.030 trillion for the quarter ended March 31, 2020 from VND4.392 trillion in the first quarter of 2019.
Net interest income for the quarter grew to VND4.212 trillion, up 22.8% from the quarter ended March 31, 2019. Net Fee and Commission Income (NFI) was VND862 billion for the quarter ended March 31, 2020 up 73.1% YoY. NFI was 14.3% of TOI as compared to 11.3% in the year-ago-quarter, with strong contribution from bond underwriting activity during the quarter.
Operating expenses of VND2.138 trillion for the quarter ended March 31, 2020 resulted in a cost to income ratio (CIR) of 35.4% compared to 36.6% a year ago and 35.3% in the December quarter.
Provision expenses prudently increased for quarter ended March 31, 2020 to VND772 billion from VND167 billion for the quarter ended March 31, 2019, as the Bank chose to proactively write off selected non-performing loans.
Total deposits as at March 31, 2020 were VND235.1 trillion, an increase of 13.0% over March 31, 2019. CASA deposits grew by 29.3% year-over-year to VND75.7 trillion, while time deposits were at VND159.4 trillion, an increase of 6.7% over the previous year as the Bank continued to focus on CASA growth. CASA ratio of 32.2% for the quarter ended March 31, 2020 up from the 28.2% in 1Q19.
LIQUIDITY AND CAPITAL
Techcombank maintained ample liquidity exceeding regulatory requirements with a loan-to-deposit ratio of 76.8% and short-term funds to medium-to-long-term loans ratio of 30.7%, improving from the 38.4% at the end of 2019. The Bank also maintained its position as the best capitalized bank in Vietnam1 with a Basel II Capital Adequacy Ratio (CAR) of 16.6%, more than double the Basel II Pillar I minimum requirement of 8% and up from 15.5% at the end of 2019.
NPL ratio was 1.1% as at March 31, 2020, against 1.3% as at December 31, 2019 and 1.8% as at March 31, 2019. NPL coverage ratio as at March 31, 2020 was 117.9%.
CUSTOMER AND OTHER HIGHLIGHTS
Techcombank’s e-banking channels increased to 78 million (up 149% year-over-year) and VND1.136 quadrillion (up 113% year-over-year), respectively, and reflect the ongoing preference for the convenience of the Bank’s digital solutions.
1. Latest data available up to 28th April 2020
2. Active e-banking customers per total active customers
3. Baseline credit assessment
4. Long-term credit rating