Vietnam Technological and Commercial Joint Stock Bank (TCB) Q3 2024 earnings summary

Executive summary

• Profit before tax for 9M24 reached VND 22.8 trillion, up 33.5% year-over-year, driven by robust credit growth, higher net interest and fee income, and disciplined cost control.

• Return on assets (LTM) improved to 2.6%, and CASA ratio remained above 40%, reflecting strong profitability and funding structure.

• Asset quality remained healthy with NPL at 1.35% and loan loss coverage above 100%.

• Charter capital doubled to VND 70,450 billion as of September 2024, supporting business expansion.

• Total assets reached VND 927,053 billion, up from VND 849,482 billion at year-end 2023.

Financial highlights

• Net interest income for 9M24 rose 33.9% year-over-year; non-interest income grew 17.1% year-over-year.

• NIM (LTM) increased to 4.3%; cost-income ratio improved to 28.4% for 9M24.

• PBT for Q3 was VND 7.2 trillion; cumulative PBT for nine months reached VND 22.8 trillion.

• CASA balances grew 46% year-over-year, with a CASA ratio of 40.5%.

• Fee income for Q3 was VND 2.5 trillion, with 17% year-over-year growth for the first nine months.

Outlook and guidance

• Full-year PBT target of VND 27.1 trillion reaffirmed, with NIM expected to remain above 4% for 2024 and 2025.

• 2024 GDP growth forecast revised to 6.8%; credit growth quota expected at 18.6%.

• NPL ratio guided at 1.2%-1.4%, credit costs below 1%.

• CASA ratio targeted for further growth, leveraging Auto-Earning and other initiatives.

• Implementation of new credit risk and provisioning regulations (Circular 31, Decree 86) from July 2024.