Techcombank posts double digit growth in profits
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Techcombank has reported a 20 percent year-on-year surge in 2019 consolidated pretax profits to more than VND12.8 trillion ($552.8 million).
The nation’s largest private lender by assets said in its latest financial report that the profit increased as credit risk provision halved to VND917 billion ($39.6 million) last year.
While the bank’s credit activities continued to develop, its takings from other services remained the same as in 2018 at approximately VND3.25 trillion ($140.5 million).
The bank saw a 15 percent increase in total revenues to around VND21 trillion ($909.9 million). By the end of 2019, Techcombank’s total assets were worth VND383.7 trillion ($16.5 billion), up 20 percent year-on-year.
The bank’s bad debt ratio decreased from 1.75 percent at the beginning of the year to 1.3 percent.
Questions & Answers
Q.What was the main reason for Techcombank's significant increase in pretax profits?
What was the main reason for Techcombank's significant increase in pretax profits?
The bank's pretax profits surged as its credit risk provision was cut in half, falling to VND917 billion last year. This reduction contributed significantly to the reported double-digit profit growth.
Q.How did Techcombank's income from services other than credit activities perform in 2019?
How did Techcombank's income from services other than credit activities perform in 2019?
Takings from other services remained unchanged in 2019, staying at approximately VND3.25 trillion. This indicates that their growth was not driven by an increase in non-credit service income.
Q.Did Techcombank's total assets grow in 2019, and by how much?
Did Techcombank's total assets grow in 2019, and by how much?
Yes, Techcombank's total assets increased by 20 percent year-on-year. By the end of 2019, their total assets were valued at VND383.7 trillion, equivalent to $16.5 billion.
Q.What was the trend in Techcombank's bad debt ratio during 2019?
What was the trend in Techcombank's bad debt ratio during 2019?
The bank's bad debt ratio decreased over 2019. It started the year at 1.75 percent and had fallen to 1.3 percent by the end of the year, indicating an improvement in asset quality.
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