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Techcom Securities (TCX VN) – Q2 2026 – Net Profit Rises 16.8% on Strong IB Growth
Summary of H1 2026 results and outlook of Techcom Securities (TCX VN)
- Total operating income (TOI) increased by 15.8% y/y, led by investment banking (IB) and margin lending, which together make up around 76% of TOI. Margin lending (41% of TOI) rose 68.2% y/y, supported by a larger average lending balance following last year’s IPO and a wider net interest margin, while IB (35% of TOI) grew 30.9% y/y as higher issuance volume more than offset lower fees. In contrast, distribution and treasury (20% of TOI) fell 35.6% y/y as higher deposit rates made corporate bonds less attractive to retail investors, and brokerage (4% of TOI) eased 4.0% y/y on rising promotional costs. Even so, TCX’s strong operating efficiency contained the impact, lifting net profit to VND 2,839 billion, up 16.8% y/y.
- Strong corporate bond underwriting has increased balance sheet utilization. With Vietnam’s bank credit-to-GDP ratio near 146%, corporates are increasingly turning to the bond market to fund growth, and non-bank issuance more than doubled (2.2x y/y) in H1/2026. Holding a 58% underwriting market share, TCX grew its own issuance volume by 174% y/y — pushing corporate bond exposure from 53% of equity at end-2025 up to the 70% regulatory cap. With more equity now tied to bond investments, the company has leaned further on leverage to support margin lending. Therefore, accelerating bond distribution is essential to maintaining balance sheet health. However, execution speed may face near-term headwinds from high deposit rates and constrained institutional demand, as strict regulatory frameworks continue to limit participation from major market players like commercial banks and State pension funds.
- For H2/2026, IB income should hold steady, underpinned by robust corporate bond issuance and solid demand for long-term capital. Brokerage income should improve on higher trading value following Vietnam’s FTSE emerging-market inclusion in September, while margin lending continues to expand alongside market activity and a growing client base. Distribution and treasury income may face headwinds from a slight expected rise in deposit rates. For FY2026, we retain our net profit estimate as strength in investment banking and margin lending offsets softer contributions from other segments.
- Looking further ahead to 2027–2028, we raise our investment banking estimates on stronger bond issuance but expect narrower spreads in the distribution segment as the yield must be compelling enough for investors amid high bank deposit rate
Interested in TCX? Click here to read more of our previous analysis on TCX’s quarterly earnings.
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