Vietnam Technological and Commercial Joint Stock Bank (Techcombank) achieved 20.3% profit growth in fiscal year (FY) 2024, driven by credit expansion, improved asset quality, and data-led offerings that boosted CASA growth and market position. Techcombank CEO Jens Lottner said, “Techcombank achieved TOI (total operating income) and PBT (profit before tax) growth of 17.3% and 20.3% YoY respectively in 2024, delivering on our full-year guidance. Today, Techcombank serves over 15 million customers, our credit book has grown by 20.85%, with our NPL (non-performing loan) ratio improving to 1.17%." He added, "Various successful data-led offerings, such as Auto-earning, Techcombank Rewards, and new solutions for merchants have positively driven our CASA (current account saving account) balance by 27% in 2024 and resulted in CASA ratio of 40.9% by the end of the year." While the global economic landscape looks uncertain, Vietnam’s growth is robust, and our forecast is upbeat. In 2025 we will continue to expand our ecosystem with a revamped insurance proposition and increase our commitment to sustainability and risk diversification. This strategy, enabled by our advanced technology capabilities and unparalleled customer centricity, means we are ready to seize new opportunities and deliver superior value to shareholders in the years ahead.” Income statement In 2024, net interest income (NII) reached VND 35.5 trillion ($1.40 billion), recording a robust growth of 28.2% YoY. NIM (LTM) slightly decreased QoQ to 4.2% in 4Q24, while improving about 20bps YoY. Quarterly NIM (two-point average) lowered to 3.7%, from 4.0% in 4Q23 and 4.1% in 3Q24 mostly due to continuing pressure on asset yields as well as the impact of the rapid credit growth in the last weeks of the year. When calculated more accurately on the basis of average daily asset balances, then the actual quarterly NIM for 4Q24 stood at 3.9%. On the funding side, the Bank was able to keep Cost of Funds (CoF) flat QoQ at 3.4% and down 76 bps YoY, largely thanks to robust CASA growth. Net fee income (NFI) grew 4.4% YoY to VND 10.6 trillion ($419 million). The very strong performance in investment banking activities was partly offset by the one-off impact of the termination of the banca distribution agreement and by lower fees from the LC business in a context of regulatory changes. Individual performance by product type for FY24 was as follows: Letters of Credit (LC), remittance and other cash and settlement (VND 3,526 billion ($139 million), down 21.8% YoY): lower fee collection were mostly due to headwinds in Letters of Credit (LC) business, which in turn was driven by regulatory changes and adverse interest rate conditions affecting a specific category of credit-linked LCs (UPAS LC), mostly in the second half of 2024. IB fees (VND 3,461 billion ($136 million), up 88.2%YoY): 4Q24 IB fees amounted to VND 914.6 billion ($36 million), up 44.6% YoY, reflecting the bank’s leadership in wealth activities. This fee generation was close to the 2Q24 record of VND 1,042 billion ($41.2 million), as the bank increased margin lending balances and accelerated other wealth offerings. Cards (VND 1,970 billion ($77.9 million), down 8.3%YoY): the decrease was mainly due to the high level achieved last year, as well as the adjustments made to the bank’s card propositions in 2024, to make them more attractive to customers and drive future growth. For the record, Techcombank’s net card fees had jumped 34% in FY23, after an impressive expansion of 172% in FY22. Banca fees (VND 605.7 billion ($23.9 million), down 9.2% YoY): after the bank and Manulife mutually agreed to terminate the bancassurance distribution agreement with Manulife in October, banca sales were channelled through TC Advisors (TCA) and AIA. Whilst this change of distribution model had a temporary impact on the amount of fees recorded, which were down to VND 11.6 billion ($458,996 ) only in 4Q24, the profitability of the banca business is now back to normal and has the potential to improve further in the future, as the bank looks for a new long-term strategic partner. Techcombank remained #3 in market share in terms of 2024 overall annual premium equivalent (APE). FX sales (VND 884.8 billion ($35.02 million), down 11.1%YoY): The decline was driven by lower FX derivative demand as well as tighter margins, in a context where the VND/USD exchange rate remained close to the SBV’s ceiling rate during most of the reporting period. Net expenses from other activities excluding recoveries totaled VND 291.7 billion ($11.5 million). The bank incurred a one-off expense of VND 1.8 trillion ($71.2 million) in 4Q24 from the termination of the bancassurance distribution agreement with Manulife, which was partially offset by gains on selling a part of Le Duan head office. Recoveries extended robust collection, resulting VND 1,138 billion ($45.04 million) in FY24, up 36.8% YoY, of which VND 309.1 billion ($12.2 million) incurred in 4Q24, flat YoY. Operating expenses increased by 16.0% YoY to VND 15.4 trillion ($12.2 million). In 4Q24, OPEX increased by 31.3% YoY and 38.2% QoQ to VND 4.7 trillion ($186 million), driven by the usual seasonality and acceleration of marketing initiatives (e.g., sponsorship of the highly successful Anh Trai Vuot Ngan Chong Gai concerts, exclusive activities for Private and Priority customers, etc.). FY24 cost-to-income ratio (CIR) stood at 32.7%, compared to 33.1% in FY23. Provision expenses amounted to VND 4,082 billion ($161.5 million), a modest increase of 4.1% from FY23 compared to a credit growth of 21.7% during the period. As a result, the bank’s credit cost (LTM) ended 2024 at 0.8%, broadly flat YoY and in line with management guidance. Net of recoveries, the bank’s credit cost in FY24 stood at 0.6%. In addition, loan loss coverage ratio improved to 113.8 % at the end of 2024. Re-disseminated by The Asian Banker