Techcombank reports substantial profit in H1 2024, record high CASA balance

Techcombank’s headquarter in Hà Nội City. The bank’s CASA deposits remained at a record high of over VNĐ180 trillion (US$7 billion). — Photo courtesy of Techcombank.

HÀ NỘI — In Q2 2024, Techcombank achieved significant positive business results, with total operating income and pre-tax profit both increasing by over 30 per cent compared to the same period last year.

The CASA (Current Account Savings Account) balance remained at a record high of over VNĐ180 trillion (US$7 billion), while the non-performing loan (NPL) ratio was controlled below 1.3 per cent and the Capital Adequacy Ratio (CAR) increased to 14.5 per cent, leading the banking sector.

Techcombank (HoSE:TCB) had a pre-tax profit for Q2 of VNĐ7.8 trillion, up 38.5 per cent year-on-year, bringing the cumulative six-month pre-tax profit to VNĐ15.6 trillion, a 38.6 per cent increase compared to the first half of 2023.

Customer credit and deposits grew strongly, with the CASA balance remaining at a record high of over VNĐ180 trillion. By the end of Q2 2024, Techcombank’s total assets increased by 6.9 per cent from the beginning of the year and 24.0 per cent year-on-year to VNĐ908.3 trillion. Stand alone bank credit grew by 11.6 per cent from the beginning of the year to VNĐ591.6 trillion, in line with the credit limits set by the State Bank of Vietnam (SBV).

Techcombank’s CAR under Basel II improved to 14.5 per cent as of 30 June 2024, after completing a cash dividend payout of VNĐ5 trillion in June. The CAR continues to stay within the target range of 14-15 per cent, demonstrating the bank’s superior return on equity.

Techcombank’s Non Performing Loan ratio at the end of Q2 was controlled at 1.28 per cent, with the bank’s standalone NPL ratio at 1.08 per cent. The pace of bad debt formation remained within the bank’s forecasted range. Concurrently, the handling of bad debts and recovery of debts resolved through risk provision funds are progressing as planned.

Techcombank also provided updates on customer numbers and digital banking activities. As of the end of H1 2024, Techcombank had approximately 14.4 million customers, adding nearly a million new customers during the period. Fifty-five per cent of new individual customers joined through the digital platform and 44 per cent through branch channels, particularly through the merchant customer expansion programme.

The number of transactions by individual customers through electronic banking channels reached 780.8 million in Q2 2024, up 14.6 per cent from the previous quarter and 56.3 per cent year-on-year. In the first half of the year, the total transaction value through electronic banking channels exceeded VNĐ5.5 quadrillion, up 25.5 per cent year-on-year.

Q2 2024 marked a significant milestone in Techcombank’s commitment to delivering exceptional value to shareholders, as the bank completed a cash dividend payout, at VNĐ1,500 per share was the highest in the sector in 2024. Additionally, the bank’s capital raising process saw positive progress, with Techcombank expected to record a new charter capital of VNĐ70.5 trillion in Q3, the highest among private commercial joint-stock banks.

In June 2024, Techcombank made a notable impact on the market by hosting its inaugural large-scale technology event, ‘Techcombank Keynote – Pioneering Innovation, Exceptional Breakthroughs’, which marked the beginning of its AI-based banking era and is expected to become an annual event, showcasing the most groundbreaking financial technology solutions in the Vietnamese banking sector. — VNS