Net interest income and investment banking fees grow impressively
According to Techcombank's 2024 business results report, the bank recorded net interest income (NII) in 2024 reaching over VND35.5 trillion, a positive growth of 28.2% year-on-year with a 12-month NIM of 4.2%, up 20 basis points year-on-year. On the other hand, with strong CASA growth, Techcombank maintained its Q4 funding cost at 3.4%, down 76 basis points year-on-year.
Service income (NFI) recorded a 4.4% increase year-on-year to over VND10.6 trillion. The single-digit growth mainly came from the high base level of the previous year. Notably, investment banking service fees reached VND3,461 billion, up 88.2% year-on-year, with nearly VND914.6 billion recorded in the fourth quarter alone, the second highest level achieved in a quarter in the bank's history.
Mr. Jens Lottner - General Director of Techcombank said that up to now, Techcombank has served nearly 15.4 million customers with outstanding credit increasing by 20.85%, while the bad debt ratio (NPL) has been significantly improved to 1.17%. Breakthrough data-based solutions such as: Automatic profit generation, Loyalty program along with many new features for retailers (merchant) have contributed to boosting the balance of non-term deposits (CASA) to increase by 27% in 2024, raising the CASA ratio to 40.9% at the end of the fourth quarter.
“Entering 2025, despite the uncertain global economic landscape, Vietnam’s economy is expected to maintain strong growth momentum, giving us confidence in our strategy. Techcombank will accelerate the expansion of its ecosystem with insurance solutions and other comprehensive financial solutions, while making a stronger commitment to sustainable development and risk diversification. With advanced technological capabilities and a customer-centric philosophy, we are ready to embrace opportunities, lead the banking and finance industry in a new era, and create outstanding value for shareholders in the years to come,” Mr. Jens Lottner affirmed.
Maintain asset quality and strong balance sheet
Techcombank's 2024 business results report also stated that as of December 31, 2024, Techcombank's total assets reached VND978.8 trillion, up 15.2% compared to the beginning of the year. Credit grew by 20.85% to VND640.7 trillion within the limit approved by the State Bank. Overall, credit on a consolidated basis increased by 21.7%, of which personal loans increased by 28.4%, significantly higher than the 17.3% increase in corporate credit.
Techcombank's asset quality in the fourth quarter of 2024 recorded positive improvements. Outstanding loans requiring attention (B2) decreased sharply by 14.0% Q/Q to VND 4,441 billion, equivalent to a B2 ratio of 0.73% (compared to 0.86% in the previous quarter). The B2 ratio before CIC was only 0.56%. The bank's bad debt ratio (NPL) also improved to 1.17%, from 1.35% at the end of the third quarter, including bonds & loans, the bad credit ratio (B3-B5) was only 1.09%. The NPL ratio before CIC was low at 1.0%.
Provision expenses were recorded at VND4,082 billion, up slightly by 4.1% YoY, despite credit growth of 21.7% in 2024, thanks to efforts in risk management, bad debt recovery, and continued improvement in the business environment. Overall, the Bank's credit costs for the whole of 2024 were only 0.8%, flat compared to the previous year and in line with the Board of Directors' forecast. In addition, Techcombank's bad debt coverage ratio increased to 113.8%.
Techcombank’s capital position remains strong at the end of 2024, with a loan-to-deposit ratio (LDR) of 77.1% as of December 31, 2024, an improvement from the previous quarter and remaining below the ceiling of 85% as prescribed by the State Bank of Vietnam (SBV). The ratio of short-term funds used for medium- and long-term loans stood at 26.5%, compared to 24.2% at the end of the third quarter.
The Bank's Basel II capital adequacy ratio (CAR) continued to increase to 15.3% as of December 31, 2024, much higher than the requirement of Basel II Pillar I (8.0%).
Notably, the CASA ratio of Techcombank's customer deposits reached VND565.1 trillion, up 24.3% compared to the beginning of the year. Thanks to the outstanding results from the Automatic Profit feature, the Bank's CASA balance continued to set a new record, recording nearly VND231 trillion, bringing Techcombank's CASA ratio to 40.9%.
TCBS continues to maintain its leading position with impressive market share growth
TCBS had an impressive business year with a 130% increase in plan. In the fourth quarter of 2024, TCBS recorded VND933 billion in pre-tax profit, bringing accumulated profit in 2024 to VND4,802 billion, an impressive growth of 58.6% YoY. TCBS maintained market share #3 on HOSE and #2 on HNX with a significant increase in market share (up to 7.7% from 7.1% on HOSE, up to 8.3% from 7.9% on HNX in the third quarter).
Regarding the bond segment, according to data from Techcombank, the volume of bonds advised by TCBS to be issued will reach about VND75 trillion in 2024, accounting for nearly 50% of the market share of bonds issued, excluding bank bonds. TCBS's bond distribution volume also recorded strong growth momentum, reaching VND87.3 trillion in the year, 44.4% higher than the previous year.
TCBS also continues to strongly apply Artificial Intelligence (AI) and especially Generative AI (GenAI) to core business activities, bringing outstanding benefits to customers and organizations. The company applies AI to the programming and automated testing process by using tools such as Co-pilot and AWS, shortening the programming team's time by 40-50%, bringing breakthroughs in performance and cost optimization. In particular, TCBS has developed an Automated Machine Learning (AutoML) platform to search for potential customers, recommend suitable products, forecast business indicators, and detect unusual transactions.
Continued customer growth and positive highlights
Techcombank closed 2024 with approximately 15.4 million customers, attracting more than 1.9 million customers during the year. Of these, 55.1% joined through digital platforms and 43.6% from branch channels, thanks to the Bank's expansion of its retail customer base (merchant) through solutions such as Automatic Profit, Soft POS, and many other attractive programs and products.
According to NAPAS, Techcombank is the number one transaction bank in Vietnam in terms of both incoming and outgoing transaction value in all consecutive months since July 2024, and the number one market share for the whole year of 2024. In 2024, the volume and value of individual customers' transactions via digital channels will reach 3.3 billion transactions and VND 11.3 million billion, respectively recording growth of 51.1% and 20.0% over the same period of the year.
For the first time, Techcombank ranked No. 1 in the Brand Health Index (BEI) and is one of only two banks in Vietnam in the "Growing Brand" group according to Nielsen IQ, demonstrating remarkable growth thanks to the right vision, superior technology platform and the bank's "Customer-centric" business philosophy. In addition, the bank's NPS score reached 91 in Q4/2024, ranking 2nd in the industry.
In the fourth quarter of 2024, Techcombank will launch the "Automatic Profit - Version 2.0" feature: A breakthrough solution for customers' idle cash flow and be the first private commercial joint stock bank in Vietnam to issue a Green Bond Framework.
Techcombank has also become the bank to receive the Innovation Excellence Award for its AML anti-money laundering system from Oracle. The system has helped Techcombank further improve the effectiveness of its anti-money laundering control and prevention work according to international standards.
(Source: Techcombank)
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