Techcombank's 2026 annual general meeting held in Hà Nội on Saturday. —Photo courtesy of the bank

HÀ NỘI — Techcombank plans to raise its charter capital to more than VNĐ113.7 trillion (US$4.5 billion) - the largest increase announced in the banking sector this year - while paying a 7 per cent cash dividend and issuing bonus shares of up to 60 per cent, following shareholder approval at its annual general meeting on Saturday.

The lender will distribute a cash dividend equivalent to nearly VNĐ5 trillion, sourced from retained earnings after reserves, with payment expected in the second or third quarter of 2026. At the same time, it will issue more than 4.28 billion shares to existing shareholders and additional shares under an employee stock ownership plan (ESOP), lifting its charter capital from VNĐ70.9 trillion.

Speaking at the meeting, Chief Executive Officer Jens Lottner said the bank delivered a strong performance in 2025, exceeding targets set at the previous AGM. Consolidated pre-tax profit reached a record VNĐ32.5 trillion, up 18.16 per cent year-on-year and above the planned VNĐ31.5 trillion. Growth was driven largely by credit expansion of 18.36 per cent, despite pressure on net interest margins and well-controlled provisioning costs.

The bank continued to strengthen its leading market position across several core segments. Its CASA ratio stood at 40.4 per cent at the end of 2025 - among the highest in the system - supported by robust growth in low-cost deposits. Wealth management also saw strong momentum, with assets under management reaching VNĐ645 trillion, up 86 per cent year-on-year.

In payments, Techcombank accounted for around 27 per cent of total Visa card transaction value nationwide and held a 16 per cent share of digital banking transactions, ranking first in transaction banking, according to NAPAS data. The bank also maintained a 38 per cent share in corporate bond issuance and a 9 per cent brokerage market share on HOSE among banks.

Lottner said the lender is evolving beyond a traditional bank into a broader financial ecosystem spanning wealth management, capital markets and insurance. Investments in technology, data and artificial intelligence have enabled faster decision-making, improved customer insights and more targeted marketing.

As part of its diversification strategy, the bank has reduced its exposure to real estate to below 30 per cent of its loan portfolio, from around 40 per cent previously, while expanding into other high-growth sectors.

Techcombank expects to play a more active role in supporting Việt Nam’s long-term growth ambitions, particularly as the country targets high-income status by 2045. The bank aims to strengthen its position as a capital arranger, not only leveraging its balance sheet but also expanding partnerships with domestic and international investors.

Two profit scenarios for 2026

Given global uncertainties, Techcombank has developed two business scenarios for 2026.

Under a more favourable scenario, where geopolitical tensions ease quickly, the bank targets a 15 per cent increase in pre-tax profit to VNĐ37.5 trillion, while keeping the non-performing loan (NPL) ratio below 1.5 per cent.

In a more cautious scenario, assuming prolonged external disruptions, pre-tax profit is projected to rise 7.6 per cent to VNĐ35 trillion, with NPLs controlled below 2 per cent.

The bank has been granted a credit growth limit of VNĐ849 trillion for 2026, up 12 per cent from the previous year.

While Việt Nam is entering what executives describe as a “new growth era”, driven by strong government commitment to high GDP expansion, Techcombank noted that risks remain. External demand fluctuations, supply chain disruptions, rising oil prices and inflationary pressures could all affect domestic growth and credit demand.

Chairman Hồ Hùng Anh reiterated the bank’s long-standing strategy of “low risk, high return”, emphasising prudent risk management, particularly in real estate lending. He noted that while the sector remains a key growth driver for Việt Nam, the bank focuses only on projects with strong legal foundations and liquidity.

Techcombank is also exploring new growth areas such as infrastructure investment, in line with the Government’s push for public investment to support double-digit economic expansion.

The AGM concluded with all proposals approved. — VNS