According to the documents for the 2020 Annual general Meeting (AGM), Vietnam Technological and Commercial Joint Stock Bank (Techcombank) aims to have a end of the year outstanding credit of 291.586 trillion dong, up by 13 percent or higher, in line with the State Bank of Vietnam (SBV)’s requirement. The bank also targets to control bad debt ratio below three percent, expand capital mobilisation by 13 percent (reaching 268.820 trillion dong), and develop total assets by 12 percent (reaching 431.483 trillion dong).
The bank sets to achieve a consolidated pre-tax profit of 13 trillion dong in 2020, up by 1.3%.
Techcombank’s leader board said that in 2020, the bank will expand its ecosystem-based approach for the Fast-moving consumer goods (FMCG) value chain and reduce dependence on real estate, construction & material (ReCoM) value chain.
In the ReCoM value chain, Techcombank will continue to focus on less-risky segments such as lending to residential housing buyers, projects in sales and handover stages, or lending to contractors at construction stage in order to disperse risks.
Regarding sales and services, Techcombank’s leader said that the bank will further promote digital banking model, at the same time specialise and improve the capacity of personnel to provide in-depth advice on financial solutions through the development of Priority centers, or enhance life insurance consulting capability.
In terms of organisational structure and personnel. Techcombank will restructure the iPMO into a Transformation Office under Agile method to take a new step in the journey to transform itself into a digital bank.
In addition, Techcombank will set up a division which specialises in data and analysis to improve the bank’s analysing and decision-making ability. Moreover, the bank will review its organisational structure to eliminate duplicated functions, and review regulations and processes to optimise its operations.
Concerning risk management and operation, Techcombank will continue to apply and carry out activities to change the structure of outstanding loans when shifting the focus of growth from wholesale banking to retail banking in order to diversify the balance sheet, increase the Net Interest Margin (NIM) of the whole bank, and raise the Capital Adequacy Ratio (CAR) under Basel II standards. The bank will also actively handle operational risk issues to ensure operational efficiency.
