A Techcombank office. — Photo courtesy of the company

HÀ NỘI — Việt Nam Technological and Commercial Joint Stock Bank (Techcombank) has reported big earning gains in January-September to keep performing well amid the challenges caused by the COVID-19 pandemic.

Techcombank reported a total pre-tax profit of VNĐ10.7 trillion (US$462.6 million) and a total revenue of VNĐ19.3 trillion in the past nine months, up 20.9 per cent and 33.5 per cent year on year.

The post-tax profit in the nine-month period was up 20.6 per cent to VNĐ8.6 trillion. At the end of September, return on assets (ROA) ratio was 3.0 per cent and the capital adequacy ratio (CAR) was 16.7 per cent.

“Our robust capital and funding positions have enabled us to support our customers and weather the difficult operating environment this year,” Techcombank CEO Jens Lottner said in a statement.

“As we look towards the end of 2020 and beyond, we are cautiously optimistic that the impact of COVID-19 has peaked and that proven preparedness of the Government, together with the collective experience of the business and broader community, will allow us to manage and mitigate risks should there be another breakout,” he said.

“Importantly, the long-term drivers for growth are intact, and we remain focused on the consistent execution of our strategy and investments in digitalisation to improve our customer experience,” he said.

Techcombank announced its total operating income grew 33.5 per cent on-year to VNĐ19.3 trillion in nine months and net interest income rose 28.4 per cent on-year to VNĐ13.3 trillion.

In addition, nine-month net fee and commission income jumped 65 per cent on-year to VNĐ3.1 trillion. The bank said that the figure accounted for 16.2 per cent of the total revenue, boosted by bond underwriting activity during nine months.

Operating expenses totalled VNĐ6.3 trillion ending September 30, up 27.1 per cent on-year while the cost to income ratio was cut by 1.7 percentage points to 32.8 per cent.

In the third quarter of 2020, Techcombank continued to write off its non-performing loans. Risk provision in the first nine months jumped 3.6 times to VNĐ2.2 trillion from last year’s number.

At the end of the third quarter, total assets were VNĐ401.5 trillion, up 9.2 per cent on-year and 4.6 per cent year-to-date. Total credit extended to customers as of September 30 increased by 14.4 per cent on-year and 8.3 per cent year-to-date to VNĐ279.4 trillion.

The non-performing loan ratio (NPL) was 0.6 per cent on September 30, down 0.3 percentage points from the previous quarter and down 1.2 percentage points from last year.

The bank explained bad debt write-off and ongoing prudent risk management were the important factors towards lower bad debt ratio.

Total deposits were VNĐ252.6 trillion at the end of September while non-term deposits totalled VNĐ97.5 trillion and time deposits were worth VNĐ155.1 trillion.

The three figures were up 9.2 per cent, 22.2 per cent and 2.4 per cent year-to-date, respectively, reflecting the “success in optimising its cost of funding.” — VNS