Vietnam Technological and Commercial Joint Stock Bank (TCB) Q1 2025 earnings summary

Executive summary

• 1Q25 profit before tax (PBT) reached VND 7.2Tn, down 7.2% year-over-year, marking the second-highest 1Q PBT in history, with total operating income at VND 11.6Tn, down 5.3% year-over-year.

• Underlying business momentum remained robust, with flat operating expenses and a 10% decrease in risk provision expenses.

• CASA ratio stood at 39.4%, among the highest in the industry, with retail CASA up 28.2% year-over-year and total deposits growing 21.9% year-over-year.

• Maintained #1 market share in transaction banking for both outbound (17.6%) and inbound (16.4%) transactions.

• Industry-leading capital adequacy (CAR at 15.3%) and profitability (ROA LTM at 2.3%).

Financial highlights

• Net interest income declined 2.3% year-over-year to VND 8.3Tn; NFI fell 4.9% year-over-year to VND 2.6Tn, but up 13.1% QoQ.

• CIR increased to 28.3% from 26.5% a year ago, with flat OPEX at VND 3.3Tn.

• Provision expenses declined 10% YoY to VND 1,090B; credit cost improved to 0.7%.

• Total assets reached VND 989.2Tn, up 11.7% YoY; customer deposits at VND 569.9Tn, up 21.9% YoY.

• Coverage ratio rose to 111.4% from 105.9% YoY.

Outlook and guidance

• FY25 PBT guidance is VND 31.5Tn (+14.4% YoY), with credit growth target of 16.4% and NPL ratio to be managed below 1.5%.

• NIM expected to be preserved around 4.0%, with CIR targeted in the 30-35% range and credit cost below 1%.

• Double-digit growth targeted for both credit and fee income, leveraging robust credit book and ecosystem plays.

• Bank expects to benefit from Vietnam's pro-growth agenda and investments in AI, ecosystem platforms, and ESG solutions.

• Vietnam GDP growth for 2025 forecasted at 6.5% (optimistic) or 4.0% (pessimistic), with public investment remaining positive.