Techcombank records 19.5% higher net profit of $851.96m for 2024

Fees and commission income fell, but interest income rose.

The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) reported a net profit of nearly $851.96m VND21.52t for the whole year of 2024, up 19.56% from the $712.6m (VND18t) it reported in 2023.

In its latest financial results, the Vietnam-headquartered bank reported a profit before tax (PBT) of $1.09b (VND27.54t), 20.3% year-on-year (YoY) higher compared to 2023.

Techcombank CEO Jens Lottner attributed the bank’s performance to its “various successful data-led offerings” as well as its expanded credit book.

“Today, Techcombank serves over 15 million customers, and our credit book has grown by 20.85%, with our NPL ratio improving to 1.17%,” Lottner said.

“Various successful data-led offerings, such as Auto-earning, Techcombank Rewards, and new solutions for merchants have positively driven our CASA balance by 27% in 2024 and resulted in a CASA ratio of 40.9% by the end of the year,” he added.

Net fees and commission income for 2024 was over $318.29m (VND8.04t), lower by 7.69% from the $323.44m (VND8.71)t earned a year ago.

Net interest and similar income was nearly $1.4b (VND35.51t), 22.02% higher than the $1.1b (VND27.69t) income it earned in 2023.

Operating expenses totalled $608.09m (VND15.36t) for 2024, rising 15.92% from the $524.56m (VND13.25t) a year ago.

Techcombank set aside $161.52m (VND4.08t) for credit losses in 2024.

Lower net profit in the fourth quarter
For the fourth quarter, Techcombank reported a lower net profit on the back of lower net fees and commission income and higher operating expenses.

Net profit contributed to the bank’s shareholders was over $133.41m (VND3.37t) in Q4 2024, 24.1% lower than the almost $175.7m (VND4.44t) a year earlier.

This was offset by net interest and similar income rising to $340.47m (VND8.6t) in Q4 2024, from $300.88m (VND7.6t) in 2023.

Provision expenses were also lower at $4.66b (VND117.84b), compared to VND1.63t a year earlier.

Net fees and commission income fell to $57.8m (VND1.46t) in Q4 2024. In contrast, Techcombank logged $98.57m (VND2.49t) of such income in Q4 2023.

Operating expenses for the quarter are also higher at $188.04m (VND4.75t), compared to just VND3.61t in Q4 2023.

Looking ahead, Lottner said that Techcombank will continue to expand its ecosystem, banking on a revamped insurance proposition.

“Whilst the global economic landscape looks uncertain, Vietnam’s growth is robust, and our forecast is upbeat,” Lottner said.

The bank will also increase their commitment to sustainability and risk diversification.

“This strategy, enabled by our advanced technology capabilities and unparalleled customer centricity, means we are ready to seize new opportunities and deliver superior value to shareholders in the years ahead,” he said.