The report noted positive changes from Techcombank with stable profit growth, capitalization and asset quality, diversified deposit base and low-cost management thanks to technology and product innovations.

In this review, S&P emphasized that it believes Techcombank will be able to maintain above-industry average profitability, along with stable capitalization and asset quality. The rating agency also expressed the view that Techcombank's large, low-cost, and stable deposit base will help mitigate risks associated with wholesale funding sources in volatile markets.

According to S&P, the “Stable” outlook reflects the view that Techcombank will maintain “its deposit base strength and above-industry average profitability over the next 12-18 months.” Furthermore, S&P affirms its confidence in the Bank’s continued superior profitability, contributing to supporting a credit growth rate higher than the industry average.

Techcombank is noted as a bank that generates outstanding returns with a core return on total assets of up to 3% over the past 4 years, significantly higher than the industry average of 1-1.5%. The drivers of this outstanding performance, as S&P sees it, are “a high-margin loan portfolio, a large proportion of low-cost funding, and strong non-interest income.”

In addition, an important part of S&P's latest assessment is Techcombank's capital structure. The rating agency has highly appreciated the Bank's unique ability to diversify its capital sources. Thanks to that, Techcombank can receive diverse sources of capital, longer maturities and lower mobilization costs.

S&P also believes that Techcombank will “continue to attract diversified, low-cost deposits through innovative savings products and an enhanced digital banking experience. This will help the Bank maintain one of the highest current and savings account (CASA) ratios in the industry and very competitive funding costs.”

Finally, in its latest announcement, S&P revised its assessment in Techcombank's upgrade scenario, in which the agency said that it could "upgrade the rating" if the Bank's risk-adjusted capital ratio (RAC) improves in the next 12-18 months.

This is a significant change from the last assessment, which stated that “an upgrade is unlikely”. This assessment by S&P is completely consistent with Techcombank’s announced and implemented strategy to further diversify its credit portfolio. This will significantly change the asset structure with an increased proportion of lower risk-weighted assets, thereby optimizing the return on total risk-weighted assets and increasing the likelihood of being upgraded by various credit rating agencies in the near future.