Techcombank eyes market cap of $20 bln by end-2025: chairman

Techcombank, one of Vietnam’s major private lenders, aims to expand its market capitalization to $20 billion by the end of 2025, said chairman Ho Hung Anh.

When Techcombank made the initial public offering (IPO) in 2018, the market valued the bank at 4.5 times its equity. Currently, its total equity stands at nearly VND170 trillion ($6.53 billion), Anh told the bank's 2025 AGM on Saturday.

This year, Techcombank enjoys several favorable conditions, including a recovery in the bond market, renewed investor confidence, and signs of revival in the real estate sector - areas where the bank holds significant strength.

Additionally, the creditor is expanding services to meet the comprehensive needs of users, further solidifying its market position, according to Anh. However, he noted that building investor trust in the bank’s sustainable growth takes time.

The chairman highlighted that external factors such as U.S. tariffs also impact the bank’s strategy, but it remains confident in gradually achieving its goals. "We firmly believe that when the right time comes, our value will explode," he stated.

Anh reminded shareholders that the bank’s stock, TCB, traded on the Ho Chi Minh Stock Exchange (HoSE) at only VND10,000-15,000 ($0.58) per share in 2017. Yet after the successful IPO, the stock price surged to VND127,000 ($4.88) within just over a year.

"Of course, we do not mean such a feat will repeat, but with Techcombank’s current foundation, we fully believe we can reach similar milestones (like $20 billion in market capitalization). Naturally, this depends on market conditions and macroeconomic factors. Our stock price growth over the past six months confirms this potential," he added.

Regarding investor benefits, the billionaire emphasized that Techcombank organizes quarterly meetings with domestic and international investors, featuring independent expert evaluations and insights from global institutions. There have been many extensive discussions around how to sustainably increase both shareholder value and stock price.

At the AGM, the chairman revealed that Techcombank plans an IPO of its securities arm, Techcom Securities (TCBS), by the end of this year. However, the timing will largely depend on financial market conditions, overall market trends, and Vietnam’s progress toward stock market status upgrade.

Regarding Techcombank’s involvement in blockchain, digital assets, or the national switching system, Anh stated that these are not entirely new issues. Many financial institutions have already included such initiatives in their strategies to proactively develop technology platforms for digital transformation.

With legal frameworks expected to allow the development of a digital asset market, Techcombank is also planning to participate in and potentially own blockchain platforms. However, this plan is subject to regulatory approval, and once approved, it will be officially announced to shareholders, he noted.

Commenting on the outlook for the real estate market and consumer purchasing power, the chairman noted that some experts believe a potential trade war could impact economic growth and consumers' affordability. However, in the short term, such tensions are unlikely to directly affect the real estate market, especially given the sustained demand for housing.

He also highlighted that with the government pushing ahead on infrastructure commitments, the real estate sector, though unlikely to return to its pre-Covid boom, has gradually passed its lowest point, with signs of recovery in consumer demand.

Sharing about the plans for both life and non-life insurance segments, CEO Jens Lottner stated Techcombank has stopped its partnership with Manulife and established a non-life insurance company to offer products such as car and motorcycle insurance.

It has also submitted an application to the Ministry of Finance to establish a life insurance company. Once approved, the bank will launch products to serve customers by the end of this year.

10% cash dividend for 2024

At this year’s AGM, Techcombank proposed a cash dividend of 10% for 2024 (equivalent to VND1,000 or $0.038 per share). With nearly 7.065 billion floating shares, the total payout is expected to be VND7.065 trillion ($271.5 million).

In 2025, the bank aims for a pre-tax profit of VND31.5 trillion ($1.21 billion), up 14.4% year-over-year.

As approved by the State Bank of Vietnam (SBV), its current credit quota stands at VND745.74 trillion ($28.66 billion), up 16.4% from 2024. The non-performing loan (NPL) ratio is expected to remain below 1.5%.

In 2024, the bank achieved a pre-tax profit of VND27.5 trillion ($1.06 billion), up 20.3% year-over-year. CASA (current account savings account) balances hit a new record of VND231 trillion ($8.88 billion).

In the stock market, TCB closed Friday at VND25,950 ($1) per share.