From record profits to cash dividends

On April 26, 2025, in Hanoi, Vietnam Technological and Commercial Joint Stock Bank (Techcombank - HOSE: TCB) held its 2025 Annual General Meeting of Shareholders, in the context that the bank is on the threshold of a new development stage, with many great ambitions: ROE exceeding 20%, capitalization of 20 billion USD and becoming the leading financial services group in Vietnam. Speaking at the meeting, Chairman of the Board of Directors - Mr. Ho Hung Anh emphasized: "When the time is ripe, the value of Techcombank will explode".

At the meeting, Techcombank presented to shareholders a pre-tax profit plan of VND31,500 billion in 2025, an increase of 14.4% compared to 2024 and the highest level ever if successfully implemented. The credit growth target was also set at 16.4%, equivalent to outstanding loans of more than VND745,000 billion, a figure showing resilience in a context where the financial market still faces many challenges.

Notably, Techcombank continues to maintain the cash dividend payment at a rate of 10% of par value, equivalent to more than VND 7,060 billion, taken from undistributed profits after setting aside funds. This is the second consecutive year that the bank has chosen to share profits directly with shareholders, while still ensuring the Tier 1 capital adequacy ratio of 14-15%.

Along with that, the bank plans to issue nearly 21.4 million ESOP shares at VND10,000/share to strengthen capital capacity and serve growth.

In response to shareholders’ questions about the return on equity (ROE) target, CEO Jens Lottner affirmed that Techcombank is fully aiming for an ROE of over 20%, but he also noted that the bank is holding a significantly higher level of equity than the industry average. Techcombank’s capital adequacy ratio (CAR) is at 15%, while many other banks only maintain around 12%. In a relative comparison, Techcombank’s ROE is actually approaching the 20% mark if a more common capital ratio is applied.

However, the bank did not choose to reduce capital to optimize the index, but chose a safe, long-term path. This cautious strategy allows Techcombank to flexibly respond to fluctuations such as epidemics, interest rate crises or international trade risks. In addition, a solid capital foundation also gives the bank the capacity to participate in financing large-scale infrastructure projects.

Repositioning the Inclusive Financial Ecosystem

One of the highlights emphasized by Techcombank's Board of Directors at the congress was the digital transformation strategy. Over the past 5 years, the bank has invested more than 500 million USD in technology and this number will continue to increase in the coming period. In addition to digitizing all internal processes, Techcombank is currently deploying 19 branches in a paperless format, operating completely digitally.

With its completed technology infrastructure, the bank began integrating artificial intelligence (AI) into the entire customer experience, from the TCB Mobile application to the consulting system. Personalizing services based on deep data analysis helped the bank return to the retail and SME credit segment, which had been neglected due to high operating costs. Thanks to this model, lending in the merchant segment grew by 700% in just one year.

Along with internal transformation, Techcombank is also promoting strategic cooperation with large technology corporations such as Visa, Amazon Web Services (AWS) and a number of blockchain-related partners. The bank is proactively approaching new technology trends such as digital assets, data conversion systems, etc. and is ready to participate more deeply when the legal corridor is completed.

Auto-earning products are becoming one of Techcombank's strategic weapons, especially when this model is starting to be imitated by many other banks. However, according to CEO Jens Lottner, Techcombank's Auto-earning is not just a feature, it is an experience. Unlike products that require manual operations when withdrawing money, Auto-earning only requires one activation button, helping customers optimize interest rates while maintaining the same liquidity as a regular payment account.

As of the most recent quarter, there were 800,000 customers registered to use Auto-earning, a clear demonstration of the market acceptance of this new product model.

Although credit growth in 2024 reached 27%, nearly double the industry average, Techcombank still controlled risks well with the non-performing loan (NPL) ratio maintained at below 1.5%. According to Mr. Jens Lottner, fluctuations in the credit portfolio were only slight and not worrisome. Net interest margin (NIM) was affected by the downward trend in operating interest rates, but compared to the general level, the bank's NIM remained high.

Techcombank is also gradually reducing the proportion of real estate credit, shifting to diversifying its portfolio, expanding into production, trade, consumption, etc., while strengthening credit risk provisions and investing in risk assessment technology. This is a strategy of "running far" rather than running fast.

Not hiding his ambition, CEO Jens Lottner shared: “No one wakes up every morning just thinking about financial services, they think about housing, what their children study, what they eat, how their health is. Finance must be a tool to solve those things.” From that philosophy, Techcombank is building an integrated financial ecosystem, not only serving core financial needs but also connecting with non-financial areas such as education, healthcare, consumption, and real estate.

The bank is expanding strongly into the insurance sector with plans to establish a life insurance company and increase capital for its existing non-life insurance company. This is considered a complete piece for Techcombank to “package” the entire chain of financial services for customers.

With TCBS Securities Company, one of the leading units in bond issuance and investment services, Chairman Ho Hung Anh confirmed that the bank plans to list TCBS in 2025, possibly at the end of the year. Preparations have been carefully carried out, including working with strategic investors in the pre-IPO stage and hiring international consulting firms.

However, Mr. Ho Hung Anh also emphasized that the IPO is only the first step. More important is how to use the capital raised to improve investment efficiency, maintain high ROE and ensure long-term sustainable development.

Responding to shareholders about the plan to increase the value of shares, Chairman Ho Hung Anh shared the target of reaching a capitalization of 20 billion USD by the end of 2025, the valuation is based on growth expectations and the ability to improve the P/B ratio from 2 to 2.5 times. Although he acknowledged that macro factors such as tariffs, interest rates or the real estate market still have an impact, he believes that Techcombank possesses all the internal factors to "explode" when the time comes.

Meanwhile, the transparent reporting system, regular dialogue with shareholders, and periodic meetings with domestic and foreign investors continue to be maintained, which is an important basis for building trust, something that Mr. Ho Hung Anh affirmed "cannot be achieved after just one congress".

Thuy Linh

Source: https://congthuong.vn/co-tuc-nghin-ty-loi-nhuan-ky-luc-nhung-techcombank-chua-dung-lai-384968.html