On May 28th, Vietnam Technological and Commercial Joint Stock Bank (Techcombank, TCB) had a meeting with analysts to announce the results of the first months of 2019 and the strategy of the coming time.
The bank’s leader said that closing the first quarter (Q1) of 2019, Techcombank recorded the 14th consecutive quarter of revenue growth. The bank’s revenue and pre-tax profit reached respectively 4.2 trillion dong and 2.6 trillion dong record high levels.
“If the growth is seen in one or two or three quarters, it can be considered a luck, but we have been growing for consecutive 14 quarters since Q4 2015, showing that Techcombank has a very good strategy”, said the bank’s general director Nguyen Le Quoc Anh.
Regarding the results of corporate credit segment, leader of the segment said that credit growth for small and medium-sized enterprises in Q1 increased by 52.5 percent compared to the same period of 2018.
Concerning retail segment, Techcombank’s Personal Banking and Financial Services Division Le Thi Bich Phuong said that with the goal of customers being the focus, the bank always targets to provide the best experience to customers. In Q1 2019, the bank’s retail segment grew by 31 percent over the same period of 2018.
The highlight of Techcombank’s retail activities in Q1 is that the bank managed to significantly increase the Current Account Savings Account (CASA) through the policy of encouraging the switch to choosing non-cash products. Data of Visa Vietnam showed that by the end of Q1 2019, Techcombank ranked the first in the market for total payment via Visa credit and debit cards. The market share in card numbers is currently 11 percent but the market share in transaction volume account for up to 20%. Thanks to that, the bank’s CASA reached up to 58.6 trillion dong, helping the mobilisation cost to be low.
Another field also recording notable results is insurance. According to Phuong, by the end of Q1 2019, the bank held 19 percent of the market share in terms of insurance revenue.
In addition, the bank’s outstanding home loans increased by 33 percent compared to the same period of 2018 and became a major driving force for retail lending growth.
Meanwhile, according to Trinh Bang, the financial director of the group, Techcombank is leading the group of private banks in profit, and also has a position in terms of capital and the best growth capacity in Vietnam. The bank’s Capital Adequacy Ratio (CAR) is 14.3 percent and the bad debt ratio by the end of Q1 2019 was 1.8%. The bank expects to be approved by the SBV for early application of the Basel II this year.
