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Techcombank (TCB VN) – Q2 2026 – Net Profit Rises 18.7% as Fee Income Surges
Summary of H1 2026 results and outlook of Techcombank (TCB VN)
- Net profit increased 18.7% y/y, supported by solid credit expansion and a stronger contribution from fee income. Total credit grew 25.1% y/y, partly reflecting a temporary build-up in corporate bond holdings from bonds underwritten by securities subsidiary TCX that had yet to be distributed to investors. Corporate lending also benefited from infrastructure-related financing demand and resilient industrial activity. In retail banking, TCB continued shifting toward higher-yielding products, including smaller-ticket unsecured loans, to broaden its credit mix and improve risk diversification. Although NIM narrowed by 15 bps y/y H1/2026, it improved notably by 30bps in Q2 compared to Q1 low, as lending yields repriced faster, deposit costs began to stabilize, and a rebound of CASA. NFI surged 73.1% y/y, led by a ~2.5x increase in payment and treasury-service following the rollout of new trade-finance solutions, alongside insurance income growth of 121.6% y/y. Operating expenses rose 19.3% y/y as the bank continued investing in technology and infrastructure, while the CIR remained highly efficient at 29.7%. Asset quality remained resilient despite the higher-rate environment, with the NPL ratio at 1.1%, among the lowest in the sector.
- TCB is stepping up efforts to develop insurance into a major growth engine and a key pillar of its income-diversification strategy. Techcom Life sustained strong growth, with APE reaching VND968bn (+119.2% y/y), securing a 21% bancassurance market share and ranking among the top 5 life insurers by new insurance premium. TCB has also approved an additional capital contribution which nearly double Techcom Life’s charter capital to VND4.3tn and strengthens its capacity to rapidly scale up the business. Traction from the revamped insurance and bancassurance model, together with the contribution from TCX—a leading securities brokerage and capital-markets services provider—has lifted fee income to 23.8% of TCB’s total income, the highest in the sector, supporting stronger earnings quality and resilience against credit-cycle volatility.
- For H2/2026, we expect credit growth to moderate while NIM continues to improve, supported by the upward repricing of loans that were previously offered at initial fixed preferential rates, a continued shift toward higher-yielding retail products, and a stabilization in deposit rates toward year-end as funding-cost pressure eases relative to asset-yield repricing. Credit is projected to expand by only a further 3.4% in H2/2026, reflecting limited remaining room and the normalization of the corporate bond balance. Fee income, meanwhile, should remain strong, supported by sustained growth in payment and insurance services, together with solid contributions from investment banking activities.
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