39 slides from Vietnam Technological & Commercial Joint Stock Bank's earnings presentation, Apr 22, 2025
Slide 1: Techcombank 3M25 Analyst Presentation
Techcombank 3M25 Analyst Presentation Hanoi, Apr 22 2025
Slide 2: Agenda
Section Section Section 01 Highlights 02 Economic Update 03 Financial Results Section Section 04 2025 Outlook 05 TCB Share price Performance 2
Slide 3: Highlights
3M25 Analyst Presentation Section 01 Highlights 3
Slide 4: Intact results that support long-term structural growth
Intact results that support long-term structural growth Improved Declined 01 Highlights ▪ Single digit decline in TOI was largely driven by non-repeat of 1Q24 trading income gains while VND 11.6 Tn TOI 1 NII was almost stable (-2% YoY), reflecting interest rate competition and flexible pricing polic
Slide 5: Economic Update
3M25 Analyst Presentation Section 02 Economic Update 5
Slide 6: The economic prospect of Vietnam could face significant impact amid escalating uncertainties
02 Economic Update The economic prospect of Vietnam could face significant impact amid escalating uncertainties Better than last year 2025F 2025F Indicators 1Q24 2Q24 3Q24 4Q24 1Q25 (Optimistic) (Pessimistic) GDP growth 4.0 5.9 7.1 7.4 7.6 6.9 6.5 YoY, % Inflation 3.8 4.4 3.5 2.9 3.2 3.5 3.0 avg., %
Slide 7: Improved credit demand thanks to supportive interest rate environment
02 Economic Update Improved credit demand thanks to supportive interest rate environment and pressure on FX rate following economic turbulences Banking system's deposit & credit growth at Q1 CASA ratio of G27 Weighted deposit interest rates of G18 %, YTD % % Deposit growth Credit growth 6M 12M 7.9 2
Slide 8: Financial Results
3M25 Analyst Presentation Section 03 Financial Results 8
Slide 9: Financial Highlights
03 Financial Results Financial Highlights 1Q24 1Q25 3M24 3M25 1Q24 1Q25 TOI1 growth (YoY) 32.0% -6.5% Credit growth3 (YTD) 6.4% 3.8% NII growth (YoY) 30.2% -2.3% NIM (LTM) 4.1% 4.0% NFI2 growth (YoY) 28.3% -4.9% Loans & Asset NPL (loans) 1.17% 1.23% P&L NFI2/TOI1 23.0% 23.4% Quality NPL (bonds + loa
Slide 10: Normalization of core revenue streams
03 Financial Results Normalization of core revenue streams ▪ Despite 16.6% interest earning asset expansion, NII was broadly stable YoY as NIM continued to be under pressure ▪ NFI decline YoY was mostly due to a high base in 1Q24 as it expanded 15.3% QoQ thanks to banca, investment banking and FX-re
Slide 11: Wealth bank: increasing contribution thanks to unique propositions across ecosystem
Financial Results Wealth bank: increasing contribution thanks to unique propositions across ecosystem ▪ Growth in all products vs 1Q24 ▪ Rebound on the back of banca assurance under new non-exclusive distribution agreements since late 4Q24 ▪ Strong AuM momentum, driven by compelling diverse proposit
Slide 12: Stabilization of CoF whilst asset yields are still under pressure
Stabilization of CoF whilst asset yields are still under pressure 03 Financial Results ▪ Both interest earning assets and funding mix showing healthy expansion, with an increased share of Mobilizing from customers ▪ Slight NIM contraction from intense asset rate competition, despite stable cost of f
Slide 13: Balanced credit expansion to protect NIM and asset quality
03 Financial Results Balanced credit expansion to protect NIM and asset quality ▪ Growth of real estate and mortgage books reflected the continued recovery of the sector, especially with more visible pick-ups in HCMC market ▪ Overall credit pipeline remaining healthy, despite some customers adopting
Slide 14: Real estate value-chain: 1Q25 mortgage disbursement remained high
Real estate value-chain: 1Q25 mortgage disbursement remained high 03 Financial Results Mortgage Prepayment & Disbursement (VND Bn) ▪ New mortgage disbursements amounted to VND 20 trillion, mainly Pre-payment driven by new project financing while secondary landed property 26,570 24,109 transactions w
Slide 15: Strong customer franchise to support credit expansion
Strong customer franchise to support credit expansion 03 Financial Results ▪ The roll-out of Techcombank Auto-earning 2.0 helped expand AE balance to VND 38 trillion, 23% higher than 4Q24 ▪ Corporate CASA recorded adverse impact due to year-end seasonality while retail CASA including Auto-earning gr
Slide 16: NFI showed encouraging pick-up
NFI showed encouraging pick-up 03 Financial Results ▪ Investment banking fees, as the largest NFI contributor, reached a new record in excess of VND 1 trillion ▪ Banca recovered from the termination of the Bank's exclusive distribution agreement in 4Q24, and was up 27% YoY ▪ FX-related fees showed i
Slide 17: Sub 30% Cost-Income Ratio driven by tight expense discipline
Sub 30% Cost-Income Ratio driven by tight expense discipline 03 Financial Results ▪ OPEX was maintained flat YoY, driven by adjustments to bonus accruals and the reversal of provisions on certain categories of staff benefit expenses ▪ Marketing expenses were back to a normalized level after the sign
Slide 18: Asset quality was broadly stable
03 Financial Results Asset quality was broadly stable ▪ NPL broadly stable around the 1.2% mark, as some upticks in retail mortgages were partially offset by improvements in the corporate book (NPL down to 0.25% only) ▪ Credit costs (LTM) reduced further to 0.7%, and 0.5% net of recoveries Provision
Slide 19: Credit cost deep-dive
04 Financial Results Credit cost deep-dive ▪ Lower specific provisions in 1Q25 (vs. same period last year) was B2 CIC impacts largely due to smaller amount of additional provisions on WO 84 Own book contracts 3,500 4 (639) ▪ New NPL formation came mostly from retail mortgage books (vs. 950 80 (407)
Slide 20: Capital and liquidity positions remained robust
03 Financial Results Capital and liquidity positions remained robust ▪ Capital, liquidity and funding positions continue to reflect the Bank's industry-leading balance sheet strength Capital Adequacy Ratio1 (CAR) Funding mix (VND Tn) Mobilizing from customers Non-customer funding 15.1% 15.3% 15.3% 8
Slide 21: 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% 37% 38% 38% 38% 46.5% 35% 35% 37.0% 39.9% 41.7% 39.2% 38.9% 40.8% 39.4% 34% 34% 34% 34% 34% 34% 35% 32.0% 34.9% 33.6% 35% 33% 34% 33% 33% 33% 18.4% 18.7% 17.7% 17.5% 1
Slide 22: #1 transaction banking & Brand Equity, key in driving CASA and MOA
#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 maintain #1 position in the market Engagement & Usage Retail E-banking transaction NAPAS market share 3M25 Strong
Slide 23: 2025 Outlook
3M25 Analyst Presentation Section 04 2025 Outlook 23
Slide 24: GDP growth forecast for FY25
04 FY25 Outlook GDP growth forecast for FY25 Real Vietnam & World GDP FY25 GDP growth may range 5-8%, supported by the government’s pro-growth agenda. However, under very pessimistic scenario GDP (Real GDP growth indexed to 100% in 2019, YoY growth each year) growth may even dip below 5%. Vietnam ▪
Slide 25: FY25 Outlook: broadly positive supported by more accommodative environment
04 FY25 Outlook FY25 Outlook: broadly positive supported by more accommodative environment FY23 FY24 3M25 FY25 Improved Unchanged Declined Indicators Actual Actual Actual Outlook3 Commentary Credit growth1 19.2 20.8 3.8 Quota Possibility of a higher quota from SBV, reflecting the Bank’s financial st
Slide 26: FY25 Guidance for shareholders' approval
04 FY25 Outlook FY25 Guidance for shareholders’ approval 26 Notes: 1. Subject to the SBV’s approval. Bank’s credit balance and growth are reported in accordance with the SBV’s regulations
Slide 27: TCB Share price performance
3M25 Analyst Presentation Section 05 TCB Share price performance 27
Slide 28: TCB share price performance in 1Q25
TCB share price performance in 1Q25 05 TCB share price performance ▪ TCB showed upbeat share price momentum and outperformed VN-Index in 1Q25, up 19.5% LTM and 11.6% YTD to 31 Mar 2025 ▪ TCB showed strong liquidity and trading volume growth in 1Q25, indicating strong investor interest in the stock.
Slide 29: Thank you.
3M25 Analyst Presentation Thank you. C o n ta cts Techcombank Hanoi Head Office 06 Quang Trung str., Hoan Kiem Dist., Hanoi ir@techcombank.com.vn 29
Slide 30: Appendix
1Q25 Analyst Presentation Appendix 30
Slide 31: 3M25 Financial Highlights (1/3)
00 Appendix 3M25 Financial Highlights (1/3) 3M25 vs 1Q25 1Q25 Balance Sheet Unit: 1Q24 2Q24 3Q24 4Q24 1Q25 3M24 3M25 3M24 vs 4Q24 vs 1Q24 Total assets VND bn 885,653 908,307 927,053 978,799 989,216 885,653 989,216 11.7% 1.1% 11.7% Deposits from customers VND bn 467,589 495,977 514,467 564,536 569,85
Slide 32: 3M25 Financial Highlights (2/3)
00 Appendix 3M25 Financial Highlights (2/3) 3M25 vs 1Q25 1Q25 Balance Sheet - Segmentation Unit: 1Q24 2Q24 3Q24 4Q24 1Q25 3M24 3M25 3M24 vs 4Q24 vs 1Q24 Loans to customers VND bn 559,277 592,083 626,291 631,725 663,693 559,277 663,693 18.7% 5.1% 18.7% Retail VND bn 213,435 224,827 239,024 258,534 26
Slide 33: 3M25 Financial Highlights (3/3)
00 Appendix 3M25 Financial Highlights (3/3) 3M25 vs 1Q25 1Q25 NFI - Segmentation Unit: 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 1Q25 3M24 vs 4Q24 vs 1Q24 Bond business Bond issuance volume VND bn 14,871 9,579 14,990 35,126 7,000 14,871 7,000 -52.9% -80.1% -52.9% Bond distribution volume VND bn 26,373 15,539 12
Slide 34: 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 ▪ 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 customers1 (Mn,
Slide 35: 1Q25 – Asset book health
00 Appendix 1Q25 – Asset book health1 ▪ Broadly stable asset book structure QoQ Average LTV (%) Credit structure2 by customer interest (CI) rate (%) 59% 17% 19% 55% 23% 21% 53% 54% 31% 28% 51% CI rate >10% 44% 18% 17% 22% 19% 25% 31% CI rate 8->10% 20% 59% 66% 64% 55% 47% CI rate <8% 36% 38% 1Q24 2Q
Slide 36: 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 37: 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 38: 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 39: 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