Vietnam Technological and Commercial Joint Stock Bank (TCB) Q4 2024 earnings summary

Executive summary

• Achieved strong FY24 growth with PBT of VND 27.5 trillion (+20.3% YoY), exceeding AGM guidance despite a VND 1.8 trillion one-off expense from Manulife bancassurance termination.

• CASA ratio improved to 40.9%, driven by product innovation like auto-earning, supporting funding and NIM stability.

• Asset quality strengthened with NPL ratio at 1.17% and capital adequacy ratio at 15.3%, among the highest in the industry.

• Credit growth reached 20.8% YoY, outpacing the industry, with retail loans up 28% YoY.

• ROA remained at 2.4%, maintaining market-leading profitability.

Financial highlights

• Net interest income grew 28.2% YoY; NIM (LTM) was 4.2%, among the highest in the market.

• Non-interest income declined 7.2% YoY due to banca termination and regulatory changes, but investment banking fees rose 88%.

• Cost-income ratio was 32.7%, and ROA reached 2.4%.

• Customer funding rose 28% YoY, with deposits up 24.3% YoY and interest-earning assets up 22%.

• Coverage ratio rose to 114%, and credit cost (LTM) decreased to 0.6-0.8%.

Outlook and guidance

• 2025 GDP growth forecast at 7%, with credit growth quota expected at 20-25%.

• NII growth targeted above 20%, NFI expected to return to double-digit growth, and cost-income ratio to remain around 32-33%.

• NPL ratio to be managed below 1.5%, and credit costs below 1%.

• Priorities for 2025 include AI leadership, ecosystem expansion, and ESG initiatives, with plans to issue up to VND 3 trillion in green bonds.