The top 500 businesses with the best profit in Vietnam (Profit500 ranking) of VnReport has recognised Vietnam Technological and commercial Joint Stock Bank (Techcombank) as the leading banks in terms of performance. According to VnReport, the businesses honoured at the Profit500 ceremony are those that achieve impressive business results, have good profitability and are potential to become pillars for the future development of Vietnam’s economy.
At the ceremony, vice Chair of Techcombank Do Tuan Anh shared that “Techcombank is very proud to be the only representative of the banking industry being in the Top 3 most profitable private businesses in 2019, and acknowledged to have big contributions to the economic development. Over the years, Techcombank has always set a target of conquering the top position in terms of efficiency and the bank’s Return on Assets (ROA) is currently the highest in the system, and on par with regional banks. Thus, the target has been completed two years early than the plan set for the 2016 2020 transition period.”
According to Do Tuan Anh, this achievement is a testament to the confidence of shareholders when consistently agreeing with the bank’s strategy to retain profits during the past eight years to invest in excellent human resources and upgrading modern technology system, helping create a momentum for Techcombank’s strong growth in the future.
Techcombank is currently the only domestic bank that has committed to invest 300 million US dollars to upgrade technology infrastructure from 2016 to 2020. Digitising and fully automating every customer experience to make them be faster, better and more convenient is the main goal that Techcombank is aiming at along with the goal of technologising many activities that the government is implementing.
Thanks to the above strong investments, Techcombank is proud to bring the greatest values and experience to customers through programmes such as completely free E-banking services for individual and business customers, unlimited cashback for spending on Techcombank payment cards (Debit Cashback).
The number of transactions at Techcombank, for individual customers alone, increased by up to 20 times over the past three years, with 600 billion dong cashback given to customers through the free E-banking policy.
The success of Techcombank’s zero dong E-Banking in facilitating customers to change the way money is used has attracted and led many other banks to follow, creating cost-reduction effects for people and businesses.
In accordance to the latest announcement on the revenue results in the first nine months of 2019, Techcombank attained a record high pre-tax profit of 8,900 trillion dong, recording revenue growth for 16-consecutive quarters. The bank’s capital adequacy ratio according to Basel II in the end of the period was 16.5%, more than double the minimum requirement of Basel II Pillar 1. The bank’s ROA was 2.8%, the highest in the banking industry.
At the same time, the world prestigious organisation JP Morgan released a financial analysis report, acknowledging Techcombank as having the highest ROA in the Vietnam’s banking system. According to JP Morgan, Techcombank is one of the very few banks in the region that is making profits on both sides of the balance sheet, and having fee income added to all of the allocated expenses.
This shows a long-term vision of profit. JP Morgan also expects Techcombank to maintain the profit growth and TCB shares to continue excel in the next 12 months (valued at 40,000 dong per share).
