Vietnam Technological & Commercial Joint Stock Bank · HOSE:TCB
Vietnam Technological & Commercial Joint Stock Bank — Techcombank — FY2024 Earnings Presentation
37 slides from Vietnam Technological & Commercial Joint Stock Bank's earnings presentation, Jan 21, 2025
Slide 1: Techcombank FY24 Analyst Presentation
Techcombank FY24 Analyst Presentation Hanoi, Jan 21 2025
Slide 2: Highlights, Economic Update, Financial Results, 2025 Outlook
Section Section Section 01 Highlights 02 Economic Update 03 Financial Results Section 04 2025 Outlook 2
Slide 3: Highlights
FY24 Analyst Presentation Section 01 Highlights 3
Slide 4: Another quarter of strong results
Another quarter of strong results Improved Declined 01 Highlights ▪ TOI lowered YoY in 4Q24 largely due to one-off expense as the Bank terminated banca partnership. VND 47.0 Tn FY24 TOI still expanded 17% YoY, or 22% YoY excl. this one-off expense TOI 1 + 17.3% YoY ▪ NII grew 28% in FY24, thanks to
Slide 5: Economic Update
FY24 Analyst Presentation Section 02 Economic Update 5
Slide 6: Extended GDP growth momentum with controlled inflation
02 Economic Update Extended GDP growth momentum with controlled inflation providing support for economic activities Better than last year Indicators 4Q23 1Q24 2Q24 3Q24 4Q24 2024 2025F GDP growth 7.0 6.7 5.9 7.1 7.4 7.6 7.1 YoY, % Inflation 3.6 3.5 3.8 4.4 3.5 2.9 3.6 avg., % Retail sales growth1 7.
Slide 7: Resilient market in 2024, credit growth at multi-year high
02 Economic Update Broadly resilient market in 2024 despite DXY strengthening, credit growth increased to multi-year high Banking system's deposit & credit growth CASA ratio of G27 Weighted deposit interest rates of G18 %, YoY Deposit growth Credit growth % % 6M 12M 7.9 24 8 14.9 15.1 13.6 14.2 13.8
Slide 8: Financial Results
FY24 Analyst Presentation Section 03 Financial Results 8
Slide 9: Financial highlights
03 Financial Results Financial highlights 4Q23 4Q24 FY23 FY24 4Q23 4Q24 TOI1 growth (YoY) 17.1% -13.6% 0.0% 16.9% Credit growth3 (YTD) 19.2% 20.8% NII growth (YoY) 11.4% 13.2% -8.6% 28.2% NIM (LTM) 4.0% 4.2% NFI2 growth (YoY) 14.2% -25.2% 9.5% 4.4% Loans & Asset NPL (loans) 1.19% 1.17% P&L NFI2/TOI1
Slide 10: PBT exceeded AGM guidance despite one-off effects
03 Financial Results PBT exceeded AGM guidance despite one-off effects ▪ Decreases in 4Q24 TOI and PBT were driven by one-off impact from banca termination (-VND 1.8tn, recorded in Other income). Excluding this one-off, TOI and PBT grew 3% and 13% YoY3 respectively in 4Q24 ▪ Provision expense lowere
Slide 11: Stabilization of CoF whilst asset yields under pressure
Stabilization of CoF whilst asset yields still under pressure 03 Financial Results ▪ On a consolidated basis, total interest earning assets expanded by 22% YoY and customer funding by 24% YoY ▪ Cost of funds was maintained at 3.4%, thanks to robust CASA momentum, offseting increases in TD rates in t
Slide 12: Strong continued momentum in Retail loans
03 Financial Results Strong continued momentum in Retail loans ▪ Credit growth continued to outpace industry at +22% on a consolidated basis, driven by continued expansion in retail book, +28% YoY (+24% if we restate for the change of perimeter of CIBG and RBG divisions at the beginning of 2024) ▪ S
Slide 13: Further progress in credit diversification
03 Financial Results Further progress in credit diversification ▪ Retail book grew 8% QoQ or 28% YoY, on the back of positive momentum from mortgages, margin lending and retail business loans ▪ Visible diversification in corporate book, with real estate contribution declining for 4 consecutive quart
Slide 14: Real estate value-chain: record mortgage disbursement
Real estate value-chain: 2024 mortgage disbursement reached record-high 03 Financial Results Mortgage Prepayment & Disbursement (VND Bn) ▪ Mortgage disbursements in FY24 reached a record-high level of VND118 tn, with 4Q24 the second-strongest quarter in 3 years 26,570 Pre-payment 24,109 21,980 ▪ Wit
Slide 15: Customer funding continued its strong momentum
Customer funding continued its strong momentum 03 Financial Results ▪ Deposit growth of 24% reflecting strength of customer franchise and success of new Auto-earning proposition launched in 2Q24 ▪ CASA momentum reflected in strong progression of average CASA per customer and expected to accelerate f
Slide 16: Resilient NFI amidst challenges
Resilient NFI amidst challenges in the operating environment 03 Financial Results ▪ Lower NFI QoQ was driven by i) temporary impact from termination of banca partnership with Manulife; and ii) slower LC-related business in a context of regulatory changes affecting also income recognition (VND 156 bn
Slide 17: Cost-Income Ratio ended the year at mid-thirty
Cost-Income Ratio ended the year at mid-thirty for FY24, in line with guidance 03 Financial Results ▪ 4Q24 OPEX increased over 30% YoY, due to year-end effects and accelerated marketing initiatives ▪ CIR increase in 4Q24 was also driven by less robust top line. Overall, 2024 CIR improved YoY and was
Slide 18: Asset quality further improved with NPL down to 1.17%
03 Financial Results Asset quality further improved with NPL down to 1.17% ▪ Credit cost net of recoveries (LTM) decreased to 0.6% in 4Q24, reflecting improved credit health. More details on slide 19 ▪ New formation of both SM and NPL decelerated in 4Q24, with NPL ratio reducing to 1.17% Provision e
Slide 19: Credit cost deep-dive
04 Financial Results Credit cost deep-dive B2 CIC impacts ▪ Negative general provision in 4Q24 was due to changes in credit instruments other than loans and bonds (primarily UPAS LC) Own book 57 ▪ Substantially lower specific provision in 4Q24 was driven by: 2,375 8 684 49 (1,040) (i) lower SM+NPL 1
Slide 20: 4Q24 – Asset book health
03 Financial Results 4Q24 – Asset book health1 ▪ Asset structure reflected changes to interest rate environment and flexible pricing policy, and remained in line with expectations Average LTV (%) Credit structure2 by customer interest (CI) rate (%) 55% 53% 55% 54% 17% 51% 28% 23% 21% 31% CI rate >10
Slide 21: Capital and liquidity positions remained robust
03 Financial Results Capital and liquidity positions remained robust ▪ CAR improved to 15.3% thanks to robust retained earnings and benefit from asset diversification on risk-weighted assets ▪ Funding from customers further increased to over 78% at year-end Capital Adequacy Ratio1 (CAR) Funding mix
Slide 22: Differentiated operating metrics relative to sector peers
TCB 03 Financial Results Differentiated operating metrics relative to sector peers Industry median1 CASA CIR (LTM) 50.5%50.4% 47.5% 46.5% 37% 38% 38% 38% 37.0% 39.9% 41.7% 39.2% 38.9% 40.9% 35% 34% 34% 35% 34% 34% 34% 34% 32.0% 34.9% 33.6% 35% 18.4% 18.7% 17.7% 17.5% 16.0% 17.8% 17.1% 34% 13.6% 13.9
Slide 23: #1 transaction banking & Brand Equity
#1 transaction banking & Brand Equity, key in driving CASA and MOA 03 Financial Results ▪ Strong increases in both inbound and outbound NAPAS247 transaction volume and value, helping to reclaim #1 position in the market Engagement & Usage Retail E-banking transaction NAPAS market share FY24 Strong c
Slide 24: 2025 Outlook
FY24 Analyst Presentation Section 04 2025 Outlook 24
Slide 25: GDP growth forecast of 7.0% for FY25
04 FY25 Outlook GDP growth forecast of 7.0% for FY25 Real Vietnam & World GDP (Real GDP growth indexed to 100% in 2019, YoY growth each year) Key drivers for FY25 GDP growth of 7.0%: Vietnam ▪ Strong export activities supported by external 7.0% demand ▪ Strong and resilient inward FDI thanks to: 7.1
Slide 26: FY25 Outlook: broadly positive
04 FY25 Outlook FY25 Outlook: broadly positive supported by more accommodative environment FY22 FY23 FY24 FY25 Improved Unchanged Declined Indicators Actual Actual Actual Outlook3 Commentary Credit growth1 14.5 19.2 20.8 Quota Possibility of a higher quota from SBV, reflecting the Bank’s strength %
Slide 27: Key directions for 2025 and beyond
KEY DIRECTIONS FOR 2025 AND BEYOND 04 FY25 Outlook Unparalleled shareholder value creation over the long-term TODAY GOING FORWARD 1 ▪ Enablement of unique customer value propositions (e.g., 247 ▪ AI-ready data architecture service availability, hyper-personalized services, shorter time-to- market...
Slide 28: Thank you.
FY24 Analyst Presentation Thank you. C o n t acts Techcombank Hanoi Head Office 06 Quang Trung str., Hoan Kiem Dist., Hanoi ir@techcombank.com.vn 28
Slide 29: Appendix
FY24 Analyst Presentation Appendix 29
Slide 30: 4Q24 Financial Highlights (1/3)
00 Appendix 4Q24 Financial Highlights (1/3) FY24 vs 4Q24 vs 4Q24 vs Balance Sheet Unit: 4Q23 1Q24 2Q24 3Q24 4Q24 FY23 FY24 FY23 3Q24 4Q23 Total assets VND bn 849,482 885,653 908,307 927,053 978,799 849,482 978,799 15.2% 5.6% 15.2% Deposits from customers VND bn 454,661 467,372 496,021 514,417 565,05
Slide 31: 4Q24 Financial Highlights (2/3)
00 Appendix 4Q24 Financial Highlights (2/3) FY24 vs 4Q24 vs 4Q24 vs Balance Sheet - Segmentation Unit: 4Q23 1Q24 2Q24 3Q24 4Q24 FY23 FY24 FY23 3Q24 4Q23 Loans to customers VND bn 518,642 559,277 592,083 626,291 631,725 518,642 631,725 21.8% 0.9% 21.8% Retail VND bn 204,861 213,435 224,827 239,024 25
Slide 32: 4Q24 Financial Highlights (3/3)
00 Appendix 4Q24 Financial Highlights (3/3) FY24 vs 4Q24 vs 4Q24 vs NFI - Segmentation Unit: 4Q23 1Q24 2Q24 3Q24 4Q24 FY23 FY24 FY23 3Q24 4Q23 Bond business Bond issuance volume VND bn 12,000 14,871 10,090 14,990 35,126 70,235 75,077 6.9% 134.3% 192.7% Bond distribution volume VND bn 22,764 26,373 1
Slide 33: Digital platform continues to be dominant channel
00 Appendix Digital platform continues to be dominant channel ▪ Share of e-banking transaction continued to be at high level (>90%) ▪ Strong increases in both inbound and outbound Napas247 transaction volume and value, helping to reclaim #1 position in the market Number of Retail E-banking customers
Slide 34: Financial metrics formula
00 Appendix Financial metrics formula Indicators Formula 𝑃𝑟𝑜𝑣𝑖𝑠𝑖𝑜𝑛 𝑟𝑒𝑠𝑒𝑟𝑣𝑒𝑠 𝑓𝑜𝑟 𝑙𝑜𝑎𝑛𝑠 𝑡𝑜 𝑐𝑢𝑠𝑡𝑜𝑚𝑒𝑟𝑠 ▪ Excluding provision reserves for margin lending NPL coverage ratio 𝑁𝑃𝐿 𝑏𝑎𝑙𝑎𝑛𝑐𝑒 ▪ NPL balance excludes margin lending 𝐷𝑒𝑚𝑎𝑛𝑑 𝑑𝑒𝑝𝑜𝑠𝑖𝑡𝑠 +…
Slide 35: Financial metrics formula
00 Appendix Financial metrics formula Indicators Formula 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑞𝑢𝑎𝑟𝑡𝑒𝑟 ∗ 4 ▪ Interest earning assets comprise: Balance Asset yields with SBV, Balance at credit institutions, loans 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑑𝑎𝑖𝑙𝑦 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑎𝑟𝑛𝑖𝑛𝑔 𝑎𝑠𝑠𝑒𝑡𝑠 to…
Slide 36: Glossary
00 Appendix Glossary AUM : Assets under management OTT : Overseas telegraphic transfer CAGR : Compounded Annual Growth Rate PAT : Profit after tax CAR : Capital Adequacy Ratio PBT : Profit before tax CASA : Current Accounts and Saving Accounts PMI : Purchasing Managers' Index CIs : Credit institutio
Slide 37: Disclaimer
Disclaimer The information in this presentation is being provided as a historical, reference source only and is not being used for, and nothing in this presentation constitutes an offer, invitation or recommendation to sell or issue, or any solicitation of any offer to purchase or subscribe for, sec