Techcombank Posts Strong 2024 Growth with Sharp Stock Increase, Eyes Expansion Amid Economic Uncertainty

Vietnam Technological and Commercial Joint Stock Bank (Techcombank) reported a net profit of nearly $851.96 million for the full year of 2024, marking a 19.56% increase from the $712.6 million recorded in 2023. According to its latest financial report, the bank achieved a pre-tax profit (PBT) of $1.09 billion, reflecting a 20.3% year-on-year (YoY) growth compared to the previous year.

Techcombank’s CEO, Jens Lottner, credited the bank’s impressive performance to its successful data-driven offerings and an expanded credit book. He highlighted that the bank currently serves over 15 million customers, with credit growth reaching 20.85%, while its non-performing loan (NPL) ratio improved to 1.17%.

Lottner further explained that various data-led initiatives, such as Auto-earning, Techcombank Rewards, and new merchant solutions, had significantly contributed to a 27% increase in the bank’s current account savings account (CASA) balance in 2024, resulting in a CASA ratio of 40.9% by year-end.

Despite strong overall performance, Techcombank’s net fees and commission income declined by 7.69% to $318.29 million in 2024, compared to $323.44 million in the prior year. On the other hand, net interest and similar income grew by 22.02%, reaching nearly $1.4 billion, up from $1.1 billion in 2023.

The bank’s operating expenses for 2024 totaled $608.09 million, representing a 15.92% rise from the $524.56 million reported a year earlier. Additionally, Techcombank allocated $161.52 million for credit losses during the year.

In the fourth quarter of 2024, Techcombank reported a decline in net profit, primarily due to lower net fees and commission income, along with higher operating expenses. The net profit attributable to shareholders stood at $133.41 million, down 24.1% from $175.7 million in the same period of 2023. However, this was partially offset by an increase in net interest and similar income, which rose to $340.47 million from $300.88 million in Q4 2023. Provision expenses were also lower at $4.66 billion.

Net fees and commission income fell to $57.8 million in the fourth quarter, compared to the $98.57 million recorded in Q4 2023. Meanwhile, operating expenses rose to $188.04 million for the quarter.

Looking ahead, Lottner indicated that the bank plans to further expand its ecosystem, with a particular focus on enhancing its insurance offerings. He expressed confidence in Vietnam’s economic resilience despite global uncertainties and remained optimistic about the bank’s future growth.

Techcombank also intends to strengthen its commitment to sustainability and risk diversification. Lottner noted that the bank’s strategy, driven by advanced technology and a strong customer-centric approach, positions it well to capitalize on emerging opportunities and deliver long-term value to shareholders.

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