Techcombank ranks third in top 500 most profitable companies

10:42 | 04/10/2019
Passing over other banks, Techcombank ranks third among the top 500 most profitable companies in 2019 published by the Vietnam Report.
techcombank ranks third in top 500 most profitable companies
Techcombank confidently overtook the banking sector on the Profit500

Techcombank is also a newcomer among the top 10 domestic companies with the highest profit, carving a place among names like PVN, Viettel, Vingroup, and others. According to Vietnam Report (VnReport), the list (Profit500) is based on independent and objective evaluations of return on equity (ROE), return on assets (ROA), pre-tax profit, and revenue.

Profit500 aims to honour the most profitable companies that can become important drivers for Vietnam’s economic growth, and to introduce Vietnamese brands to the local and international business community.

The list has recognised Techcombank as the top bank in terms of operational efficiency with 15 consecutive quarters of continuous growth. In the first half of 2019, the bank hit VND5.7 trillion ($247.83 million) in the pre-tax profit and VND9.1 trillion ($395.65 million) in revenue – a record high in the semi-annual performance of Techcombank and ranking second in the banking sector. NPL ratio as of the end of the second quarter was as low as 1.8 per cent, reflecting the bank’s conservative approach to risk management and strategic approach to sustainable growth. Of particular note is the bank’s healthy CAR ratio of 15.6 per cent at the end of the second quarter, nearly double the requirement of 8 per cent set by Basel II principles.

As Techcombank’s CEO Nguyen Le Quoc Anh put it, “Techcombank prides itself on its operational efficiency. At the moment, we rank seventh in terms of total assets, sixth in revenue, but only second in pre-tax profit, and first in ROA in the banking sector. That means we hit our efficiency target two years earlier than set out in our 2016-2020 transformation plan. In terms of efficiency, the bank is second to none in the local market and is on par with regional peers. This is crucial to creating value for Techcombank."

Techcombank is proud to bring great experience and unprecedented values to our customers. After the launch of various customer-support programmes, the number of retail transactions at Techcombank has shot up 20 times over the last three years, implying a fundamental shift in the way people use and spend money. It is the success of Techcombank’s E-Banking zero fee programme that induced other banks to follow suit, creating a wave of banking cost reductions for both individual and corporate clients.

2019 marks the beginning of Techcombank’s second wave of transformation. The bank is building strongly on its achievements by digitising all banking services. All customer-facing and back-end activities will be digitalised and automated to ensure a greater, faster, smoother, more convenient customer experience, and this is perfectly in line with the government’s directions.

Incorporated in 1993, Techcombank is now one of the biggest joint-stock banks in Vietnam and also one of the leading banks in Asia. Techcombank offers a full suite of personal financial services to more than six million individual customers, SMEs and large corporate customers in Vietnam via its 313 branches across the country as well as via internet banking and mobile banking.

The bank’s differentiating factor lies in its ecosystem business approach, applied for six focus economic sectors like housing, automobile, travel and entertainment, financial services, FMCG, utilities, and telecommunication. This is the choice we make against the backdrop of Vietnam’s fast-growing economy.

By Van Anh

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