Vietnam Technological and Commercial Joint Stock Bank (TCB) Q2 2025 earnings summary

Executive summary

• Achieved record-high quarterly profit before tax (PBT) of VND 7,899bn in Q2 2025, up 9% QoQ, positioning the bank to meet full-year guidance of VND 31.5 trillion.

• Return on assets (ROA) at 2.2% (LTM), with strong fee income and CASA ratio above 40%.

• Asset quality remains robust with NPLs among the lowest in the industry, organic NPL at 1.05%, and coverage ratio at 106.4%.

• Interim consolidated financials for H1 2025 were reviewed by Ernst & Young Vietnam with no material misstatements.

• The bank expanded its network to 300 branches, four subsidiaries, and 12,355 employees.

Financial highlights

• Total operating income (TOI) growth was slightly lower YoY, mainly due to NIM compression and regulatory impacts on fee income.

• Fee income contributed a stable 34% to TOI, with investment banking, bancassurance, and FX showing strong momentum.

• Cost-income ratio held at 29.2%-30%, reflecting strong cost management.

• Credit costs declined to 0.6%, with net recoveries at 0.4%.

• Total assets rose to VND 1,037,645 billion as of 30 June 2025, with loans to customers at VND 710,313 billion.

Outlook and guidance

• Full-year GDP forecast for Vietnam is 7.7%, supported by strong exports, FDI, and government infrastructure spending.

• FY25 guidance unchanged: targeting low double-digit credit growth, NPL managed below 1.5%, and CIR to remain in the 30-35% range.

• NIM expected to remain under pressure, likely ending 2025 slightly below 4%.

• The bank will comply with new profit distribution regulations under Decree 135/2025/ND-CP effective 1 August 2025.

• No significant post-reporting period events affecting operations were identified.