chevrons

Back to Previous Page

Company Quarterly Earnings Update – TCB VN – 2020

Summary of the 2020 results of Techcombank (TCB VN)

2020 results highlights:
  • TCB’s credit and deposit growth in 2020 was 24.0% y/y and 20.0% y/y, respectively, one of the strongest in the banking sector. Notably, the Current Account & Savings Account (CASA) continued to grow strongly to 46.1%, thanks to good customer service and diversified products offering. Asset quality remained healthy with 0.5% non-performing loan (NPL) by year-end. Loans to clients impacted by COVID-19 are still allowed to retain in the current loan group (called restructured loans, not NPL). This group made up 2.8% of TCB’s loan book.
  • Pre-provisioning profit increased by 34.4% y/y, driven by robust net interest income and net fee income. However, net profit only increased by 22.3% y/y as TCB took advantage of the good earnings to improve its loan loss provision ratio to 163.9% from 148.0% in Q3/2020. Capital Adequacy Ratio (CAR) stayed high at 16.1%.
Outlook
  • In the last five years, TCB has built itself as a one-for-all bank, where it provides all essential financial services (banking, investment, insurance, corporate finance) coupled with an attractive offering and good customer service. As a result, the bank has grown rapidly, and its customer base has extended from 4.5mn by 2016 to 8.4mn customers by 2020. For the next five years, TCB’s two main strategies are: (1) maintain a leading position in existing segments; and (2) digitalization to extend business. TCB has been strongly investing in human, IT, and data to pursue this ambitious plan. Although the investment will be costly, building up customer base and increasing cross selling products will benefit TCB in the long-term.
  • For 2021, we expect TCB’s total operating income to grow by 14.0% y/y driven by: (1) strong credit growth coupled with slight extension in NIM; and (2) rebound of major fee income streams. Operating expenses are expected to keep growing to serve its digitalization plan, and provision expense is likely to increase to utilize good income growth. Overall, we project 2021F net profit to increase by 11.8% y/y.
  • For 2022, we forecast net profit to increase by 15.9% y/y thanks to less provisioning pressure while total operating income maintains solid growth.

Company ratings and target prices are accessible for clients only.

If you are interested in getting full access to our paid Primary Research Materials feel free to get in touch with us at your convenience.

Our team is actively covering 50 companies in the listed Vietnamese equity space for our clients.


Featured image credit: ndh.vn

Related News & Insights
Find out more navigation_button
news

Summary of Q1 2025 results and outlook of IDICO Corporation JSC (IDC VN) Despite higher energy revenue and stable toll fee revenue, total revenue declined 3% y/y to VND1,793 bn, mainly due to lower contributions from the industrial park (IP) and real estate segments. Energy and toll fee accounted for 51.7% of total revenue, while […]

Read Newsarrow
news

Summary of Q1 2025 results and outlook of Binh Minh Plastic JSC (BMP VN) BMP reported net revenue of VND1,383bn in Q1/2025, up 37.9% y/y, driven primarily by a 39.6% y/y increase in sales volume. This strong growth was largely due to a shift in the timing of promotional campaigns (held in Q1 this year […]

Read Newsarrow
news

Summary of Q1 2025 results and outlook of Dat Xanh Group JSC (DXG VN) Vietnam real estate market recorded moderate new supply, as many projects approved in late 2024 and early this year needed more time to complete launch sales procedures. Hanoi continued to lead new supply, while HCMC remained constrained by legal hurdles. Most […]

Read Newsarrow
Find out more navigation_button