Vietnam Technological and Commercial Joint Stock Bank (Techcombank) posted record third-quarter profit of VND 8.3 trillion ($315 million), up 14.4% year-on-year, as strong revenue growth drove sustained business momentum through the first nine months of 2025.

“Techcombank’s third quarter, 2025 (3Q25) profit before tax (PBT) reached VND 8.3 trillion ($315 million), marking the highest quarterly performance in our history and bringing our nine-month PBT to VND 23.4 trillion ($888 million), up 2.4% YoY. The strength of our performance was driven by robust consumer credit demand and underpinned by our customer-centric strategy and the momentum of Vietnam’s economy.

The oversubscribed initial public offering (IPO) of Techcom Securities was a historic milestone for Techcombank and Vietnam’s capital markets. It demonstrates the strength of investor confidence in our financial ecosystem and its ability to unlock new growth avenues, while advancing the depth and sophistication of the market.

Our ecosystem was further strengthened with the official launch of Techcom Life in September, paving the way for new life and health insurance products that meet the protection needs of customers.

The success of our transformation strategy and our position as the leading financial ecosystem in Vietnam was recognised by The Asian Banker, which named Techcombank the Best Managed Bank in Vietnam between 2022 and 2025,” said Jens Lottner, Techcombank CEO.

Income Statement

• Net interest income (NII) amounted to VND 27.4 trillion ($1.04 billion) in 9M25, up 1.7% YoY. Encouragingly, quarterly NIM continued a slow upward trend at 3.8%, in line with the slight improvement in cost of fund.

• Net fee income (NFI) reached VND 8.4 trillion ($318 million) in 9M25, up 1.3% YoY. Individual performance by product type for 9M25 was as follows:

✓ IB fees [VND 3.4 trillion ($129 million), up 32.8% YoY]: IB activities continued to show strong momentum, building on the robust bond issuance volumes in the precedent quarters. For 3Q25, IB fees amounted to over VND 1.0 trillion ($37.9 million), up 39.1% YoY. This performance was driven by all key business lines, namely brokerage and agency management, margin lending, bond advisory and distribution and other IB services.

✓ Letters of credit (LC), remittance and other cash and settlement [VND 2.1 trillion ($79.7 million), down 30.7% YoY]: the YoY decline reflected the impact of a change in accounting treatment for a specific category of UPAS LC product. However, 3Q25 results saw a commendable 9.0% quarter-on-quarter (QoQ) growth, attributable to the growth of other alternative LC products to cater for the various demands from customers.

✓ Cards [VND 1.2 trillion ($45.5 million], down 21.7% YoY): the YoY decline in card fees is also partly a result from a change in accounting treatment, on top of the wider industry trend which sees customers moving away from debit cards to other payments like QR code.

✓ FX sales (VND 896.2 billion ($34 million), up 46.8% YoY): FX sales were a bright spot in recent quarters, with 3Q25 results reaching VND 312.3 billion ($11.8 million), up 30.2% YoY. This performance is attributable to a compelling range of FX products, particularly new offerings tailored for the needs of retail customers.

✓ Banca fees [VND 800.6 billion ($30.4 million), up 34.8% YoY]: Banca fees continued to expand in 3Q25, gaining 66.2% YoY to VND 348.3 billion ($13.2 million). In 3Q25, Techcombank maintained strong APE generation, ranking #1 in the industry.

• Net income from other activities excluding recoveries totalled VND 1.7 trillion ($64.5 million) in 9M25, up 23.7% YoY. Contribution in 3Q25 alone was VND 844.1 billion ($32 million), up 174.5% QoQ, driven by strong FX trading income.

• Recoveries totalled VND 1.1 trillion ($41.7 million) in 9M25, up 32.7% YoY, which is attributable to robust collection from customers.

• Operating expenses amounted to VND 11.6 trillion ($440 million) in 9M25, up 9.2% YoY, translating to a healthy cost-income ratio of 30.1% and reflecting strong operating expense (OPEX) discipline within the bank’s guidance.

• Provision expenses posted a significant reduction of 9.1% YoY to VND 3.6 trillion ($136 million) in 9M25, reflecting an improvement in the quality of the mortgage and credit cards portfolios. Credit cost (LTM) stayed stable at 0.6%, and 0.4% after recoveries.

Balance Sheet

By the end of 9M25, Techcombank’s total assets reached VND 1,130 trillion ($42 billion). At the bank-only level, customer credit posted healthy growth of 16.8% YTD.

• On a consolidated basis, robust credit demand was attributable to both retail and corporate customers:

o Retail credit grew 20.2% YTD and 29.3% YoY to VND 341.9 trillion ($12.9 billion), primarily driven by margin lending (+61.0% YTD), and mortgage (+14.4% YTD) with the former being led by Vietnam’s stock market uptrend. Unsecured lending showed accelerated growth by 180% YTD and 450% YoY on the back of the bank’s strategic expansion towards higher-yield products.

o Corporate credit grew 16.2% YTD and 17.2% YoY to VND 463.0 trillion ($17.5 billion). Our diversification efforts translated into strong expansion in the utilities and telecommunications sector (65.3% YTD and 76.0% YoY), followed by FMCG, retail, and logistics (17.7% YTD and 19.8% YoY).

• Customer deposits reached VND 638.5 trillion ($24.2 billion), up 24.1% YoY and 13.1% YTD. CASA ratio reached 42.5%, with CASA balance posting a 12.1% expansion QoQ.

Retail CASA balance including Auto-earning 2.0, grew 29.5% YoY while corporate CASA grew 46.0% YoY. This performance was driven by attractive customer value propositions (CVPs) to enhance customer relationships, including Auto-earning 2.0, merchant offerings and payment solutions.

Liquidity and capital

• The bank’s funding position remained robust, with a regulatory loan-to-deposit ratio (LDR) of 81.2% as of 30 September 2025. Short-term funding to medium and long-term loan ratio stood at 24.1%, vs. 26.4% in the previous quarter.

• The bank increased its market-leading capital adequacy ratio (CAR) to 15.8% as of 30 September 2025. The improvement was driven by the capital injection from TCBS’ IPO as well as the progress made on the bank’s capital efficiency.

Asset quality

• The bank maintained a stellar asset quality, aligned to its prudent risk appetite. The amount of problem loans (Group 2 – Group 5) increased by 1.6% YoY, a much slower pace than the 22.0% YoY growth in total credit assets.

• Non-performing loans (NPL) improved to 1.23%, from 1.32% in the previous quarter. Organic NPL, i.e. before credit bureau impacts, narrowed down to just 0.96% from 1.05% at 2Q25-end. Including bonds, NPL ratio was 1.18% vs. 1.23% at 2Q25-end.

• Loan loss coverage ratio also saw a commendable improvement, reaching 119.1% by 3Q25-end – the 8th consecutive quarter above 100%.

Subsidiaries

• Techcom Securities achieved a record pre-tax profit of VND 2,074 billion ($78.7 million) in 3Q25 alone, an increase of 85% YoY. For the first nine months of 2025, the cumulative profit reached VND 5,067 billion ($192 million), up 31% YoY, and achieving 90% of the full-year target.

• All core business segments delivered robust YoY growth in 3Q25, reinforcing TCX’s position among the most profitable securities firms in Vietnam. TCX’s brokerage market share ranked #3 on the Ho Chi Minh Stock Exchange (HOSE) and #2 on the Hanoi Stock Exchange (HNX), with stable market shares of 7.75% on the HOSE, and 8.8% on the HNX.

• In September, TCX successfully completed its initial public offering, raising over VND 10.8 trillion ($410 million) in capital. The offering was 2.5 times oversubscribed, reflecting strong investor demand from domestic and foreign investors. As a result, TCX increased its charter capital and equity to VND 23,113 billion ($877 million) and VND 42,478 billion ($1.6 billion), respectively, solidifying its position as the largest securities company in Vietnam by both metrics.

The company’s shares commence trading on the Ho Chi Minh City Stock Exchange on October 21, 2025, with a reference price of VND 46,800 ($1.78 ) per share, making it one of the most anticipated listings of the year.

New customers and E-banking transactions

Techcombank ended 9M25 with ~17.0 million customers, adding nearly 1.7 million new customers year-to-date. 62.4% of new-to-bank retail customers were acquired digitally, 30.1% via branches, and 7.5% through ecosystem partners.

The number of retail customer transactions through e-banking channels reached 1.1 billion during 3Q25, up 24.9% YoY. For 9M25, retail e-banking transactions totalled 2.9 billion, up 26.9% YoY. Total transaction value in 3Q25 reached VND 2.9 quadrillion ($110 billion), up 7.9% YoY. For 9M25, total transaction value grew 9.0% YoY to reach VND 8.9 quadrillion ($337 billion). This performance meant Techcombank maintained its #1 position in terms of market share for both outbound (17.3%) and inbound (15.8%) transactions in 9M25.

Re-disseminated by The Asian Banker