Transactions at Techcombank. — Photos courtesy of the bank

HÀ NỘI — Techcombank (HOSE: TCB) reported record quarterly pre-tax profit of VNĐ10.4 trillion (US$402 million) in the third quarter, up 25.8 per cent year-on-year.

Nine-month total operating income (TOI) increased 17.1 per cent to VNĐ45.2 trillion, while pre-tax profit rose 23.7 per cent to VNĐ28.9 trillion. Return on equity (ROE) stood at 16.3 per cent in the past 12 months, up from 14.4 per cent a year earlier, while return on assets (ROA) reached 2.5 per cent.

Net interest income (NII) rose 16.9 per cent year-on-year to VNĐ32 trillion in the first nine months and 17.9 per cent  to VNĐ11.7 trillion in the third quarter. The quarterly net interest margin (NIM) improved to 3.5 from 3.4 per cent in the second quarter, as interest rate adjustments and a shift towards higher-yielding assets helped offset higher funding costs.

Net fee and commission income (NFI) increased 40 per cent to VNĐ11.8 trillion in the first nine months, including a 44.6 per cent rise to VNĐ4.2 trillion in the third quarter. Fee income accounted for 26.2 per cent of TOI, up from 21.9 per cent a year earlier.

Fees from letters of credit, cash and payment services rose 136.6 per cent to VNĐ4.9 trillion, supported by the expansion of LC solutions. Insurance-related fees, including bancassurance and services from its insurance subsidiary, increased 106.1 per cent to VNĐ1.7 trillion. Card service fees rose 29 per cent to VNĐ1.5 trillion, while foreign exchange and derivatives income climbed 27.1 per cent to VNĐ1.1 trillion.

Investment banking service fees, however, fell 17.5 per cent to VNĐ2.8 trillion as higher interest rates weighed on margins. Net income from other activities, excluding recoveries of previously written-off debts, dropped 48.2 per cent to VNĐ872.7 billion amid less favourable market conditions.

Operating expenses rose 18.7 per cent year-on-year to VNĐ13.8 trillion in the first nine months. Third-quarter expenses totalled VNĐ5.3 trillion, up 17.9 per cent year-on-year, reflecting staff expansion, marketing and technology investment. The cost-to-income ratio stood at 31.9 per cent.

Provision expenses fell 30.5 per cent to VNĐ2.5 trillion. The trailing 12-month cost of credit was 0.4 per cent, or 0.3 per cent including recoveries of previously written-off debts.

Credit growth accelerates

A view of Techcombank's new headquarters at 23 Lê Duẩn, HCM City.

 As of September 30, Techcombank’s total assets reached VNĐ1.3 quadrillion, up 16.7 per cent year-on-year.

Including loans to projects excluded from credit growth limits, the bank’s standalone loan book grew 16.3 per cent from the beginning of the year. Growth within the State Bank of Vietnam’s credit limit was 10.7 per cent.

Corporate loans increased 20 per cent from the beginning of the year to VNĐ542.4 trillion, driven mainly by financing for large-scale national infrastructure projects. Real estate loans accounted for 29.9 per cent of total outstanding credit, down after a temporary increase in the second quarter.

Loans to individual customers and small- and medium-sized enterprises (SMEs) reached VNĐ419 trillion, up 12.7 per cent from the beginning of the year. Unsecured lending continued to expand, particularly among household businesses through the ShopCash product, while SME lending grew and home loans remained stable.

Customer deposits rose 8.4 per cent year-on-year to VNĐ692.1 trillion. Current account and savings account (CASA) balances, including the bank’s automatic interest-earning service, totalled VNĐ245.9 trillion, accounting for 35.5 per cent of deposits.

Techcombank continued diversifying its funding sources, including through borrowing from international financial institutions. Its loan-to-deposit ratio improved to 77.7 per cent from 80.1 per cent, while the ratio of short-term funds used for medium- and long-term lending stood at 27.9 per cent.

The Basel II Tier 1 capital ratio rose to 14.1 per cent, while the capital adequacy ratio remained at 15 per cent.

The non-performing loan (NPL) ratio, including the impact of information related to the National Credit Information Centre (CIC), increased to 1.36 per cent from 1.15 per cent in the previous quarter. The bank attributed the rise mainly to several individual loans outside its core sectors. Excluding the CIC-related impact, the ratio was 1.26 per cent.

The NPL coverage ratio stood at 107 per cent.

Subsidiaries report growth

Techcom Securities Joint Stock Company (TCBS) recorded third-quarter pre-tax profit of VNĐ2.15 trillion, its highest quarterly result to date. Nine-month profit rose 13 per cent year-on-year to nearly VNĐ5.71 trillion, equivalent to 76 per cent of its full-year target. TCBS held an estimated 46 per cent share of the corporate bond issuance advisory market.

Techcom Life Insurance Joint Stock Company reported new business revenue of approximately VNĐ652 billion in the third quarter and raised its charter capital to VNĐ4.3 trillion.

Techcombank had more than 19 million customers at the end of September. Of the 1.8 million new individual customers acquired during the first nine months, 65.3 per cent came through digital channels. The bank also launched its Techcombank OneU loyalty platform and co-hosted the 2026 Vietnam Future Forum.

CEO Jens Lottner said diversified revenue streams, effective strategy execution and risk management had supported the bank’s performance.

He said insurance business continued to grow, while the launch of Techcom Wealth expanded the bank’s wealth management services for private banking customers.

On September 19, Techcombank held its second investment conference, bringing together international investors, business leaders and policymakers to discuss investment opportunities in Việt Nam. The event highlighted the bank’s role in financing major national infrastructure projects and providing wealth management services, Lottner said. —VNS