Techcombank to sustain strong loan growth

It is also expected to maintain a risk-adjusted capital (RAC) ratio of 5.0 to 5.5%. 

Vietnamese bank, Techcombank, is pegged to have a stable outlook, based on the bank's robust profitability and moderate risk-adjusted capital (RAC) ratio. It is also expected to remain a moderate risk-adjusted capital (RAC) ratio of 5.0 to 5.5% over the next 12 to 18 months, S&P Global Ratings said.

The bank is projected to sustain strong loan growth of 18%-20% annually, though the net interest margin (NIM) could compress to 4.5%-4.6% due to heightened deposit competition.

Techcombank’s focus on expanding into the retail and small-to-midsize enterprise (SME) segments is anticipated to boost yields, alongside rising fee income from investment banking and trade finance as market conditions improve. 

Asset quality pressure is expected to ease as Vietnam’s economy strengthens, potentially reducing Techcombank's nonperforming loan (NPL) ratio to 1.1% to 1.3% from 1.35% by late 2025. 

The bank’s substantial exposure to the real estate sector, which comprises 58% of its corporate loan and bond portfolio, remains resilient, with real estate NPLs below the headline rate.

Techcombank’s ability to attract low-cost deposits, including 40% in demand deposits—higher than the industry average of 18%—supports its funding stability. 

However, reliance on wholesale funding, with a core deposits-to-funding ratio of 75.5% compared to the sector average of 80% to 90%, could increase exposure to funding volatility.