At the end of the first 9 months of the year, VIETNAM TECHNOLOGICAL AND COMMERCIAL JOINT STOCK BANK (Techcombank) recorded a streak of 20 consecutive quarters of revenue growth with total operating income reaching nearly 19,300 billion VND, increased by 33.5% year over year. This is also the leading revenue growth rate among large banks (including state-owned banks, Techcombank, VPBank, MB, and ACB).
According to the bank's leaders, this success is due to Techcombank diversifying income sources, focusing on non-interest income, from main fees such as cards, insurance, or bond issuance and other banking services for businesses.
The financial report shows that non-interest income for the first 9 months of 2020 reached nearly VND 6,000 billion, up 46.4% year over year. This income source accounted for more than 31% of the revenue, higher than the level of 28.3% of the same period in 2019. In which, net profit from service activities increased by 65.1% to over VND 3,100 billion, accounting for 16.2%.
Regarding the causes of the bank's great profits from the service segment despite the impact of the COVID-19 pandemic, Mr. Ngo Hoang Ha, Deputy Director of Techcombank Finance and Planning Division, said that during the COVID-19 pandemic, the revenue and the number of customers using cards for shopping increased sharply. Accordingly, the value of transactions via credit and debit cards of VISA increased by 65% and 36%, respectively, supporting Techcombank's card fees collection and contributing to the growth of the bank.
Also, Techcombank has deployed an electronic platform for small and medium enterprises. Besides free charges for domestic payment transactions, foreign currency trading and international money transfer on electronic platforms have been implemented with preferential fees.
Explaining more about Techcombank's services, Mr. Phung Quang Hung, Standing Deputy CEO of Techcombank, said that the bank focuses on service quality and basic daily transactions of customers to create convenience and engage with customers. As a result, the CASA (Current Account Savings Account) ratio increases, leading to optimal NIM (Net Interest Margin) and capital mobilization costs.
In the first 9 months of the year, the total number of customers increased by 760,000 to more than 8 million. The volume and value of electronic transactions of individual customers reached 256 million transactions (up 117.2% year over year) and VND 3.3 million billion (up 84.4% year over year).
According to the credit rating report published by Standard & Poor's (S&P) in September 2020, Techcombank would continue to stabilize its business in the next 12 - 18 months despite the impact of the COVID-19 pandemic. This is due to the bank's focus on the high-yielding retail segment targeting high-income customers, while the fee revenue growth would keep the margins above the industry average.
According to Mr. Phung Quang Hung, this achievement comes from a deep understanding of customers and characteristics of each segment, and re-design of the business model. Thereby, the bank can offer suitable solutions and services for each segment.
Also, Techcombank has been the only bank to be honored in the "Responsive Human Capital Initiative" category at the Vietnam HR Awards 2020. The recognition from the voting council further affirms that human resources are always the bank's top concern and priority in the development of service quality.
In the challenging context of the COVID-19 pandemic, Techcombank has been committed to ensuring stable employment and income for more than 11,000 employees. The Bank has also continued to implement plans of training and developing a strong workforce, attract talents, and support the growth of each individual and the whole bank.
Compiled by VietnamCredit