The Vietnam Technological and Commercial Joint Stock Bank (Techcombank, TCB) has released its financial statement for the second quarter (Q2) of 2020.
In the quarter, the bank’s net interest income increased by 23 percent to 3.935 trillion dong. Many other businesses also showed positive results. In particular, the bank’s profit from service activities rose by 47 percent to 1.112 trillion dong, profit from securities trading grew by 34 percent to 92 billion dong compared to the same period of last year, and profit from trading of investment securities increased by 172 percent to 235 billion dong.
Meanwhile, the bank’s foreign exchange trading was not satisfactory with a loss of 30 billion dong in Q2. The profit from other business activities was 408 billion dong, down by 13 percent over the same period of last year.
Techcombank’s operating expenses in Q2 increased by eight percent to 1.697 trillion dong, and the provision expenses for credit risks rose up by six times to 439 billion dong compared to the same period of 2019.
In the first half of the year (H1), Techcombank’s operating expenses went up by 21 percent to 3.835 trillion dong, a fairly high growth compared to the general level of major banks such as Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcomnank) and Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) which have begun to tighten operating expenses. The provision expenses of Techcombank in H1 were 1.221 trillion dong, up by fivefold compared to the same period of 2019.
Techcombank’s Q2 pre-tax profit was 3.616 trillion dong, up by 19 percent over the same period of last year. In H1, the pre-tax profit of the bank was 6.737 trillion dong, up by 19 percent over the same period of last year.
Notably, Techcombank’s outstanding loans by the end of June were only 231.666 trillion dong, up by 0.4 percent compared to the beginning of the year, lower than the end of Q1 of 2020 (232.021 trillion dong).
Compared to the outstanding loans, corporate bond investment increased more strongly in Techcombank. By the end of June, in the bank’s available-for-sale investment securities, the value of bonds issued by economic organisations was 38.170 trillion dong, up by 25.6 percent compared to the beginning of the year. Similarly, in the held-to-maturity investment securities, bonds issued by domestic economic organisations reached 700 billion dong, up by more than threefold compared to the beginning of the year.
As of June 30th, the total assets of Techcombank reached 395.961 trillion dong, up by 3.2 percent compared to the beginning of the year. The bank’s customer deposits grew by eight percent to 249.857 trillion dong.
Techcombank continued to attract cheap mobilised capital when demand deposits increased by seven percent compared to the beginning of the year, reaching 81.424 trillion dong. Deposits also increased sharply by 25 percent to 4.571 trillion dong. Accordingly, the estimated Current Account Savings Account (CASA) rate of Techcombank by the end of June was about 34.4%.
The bad debts of Techcombank were 2.1 trillion dong by the end of June, significantly down by 32 percent compared to the beginning of the year. Accordingly, the bank’s ratio of bad debts on total outstanding loans fell from 1.33 percent to 0.91%.
