Techcombank targets $938 mln profit in 2023

Techcombank, one of Vietnam’s leading private lenders, expects consolidated pre-tax profit of VND22 trillion ($937.6 million) in 2023, down 14% year-on-year.

The bank's credit balance by the end of this year is estimated at VND511.3 trillion ($21.78 billion), which is a growth rate of around 15%, according to documents for its annual general meeting scheduled to take place on April 22. The on-balance sheet bad debt ratio is estimated at less than 1.5%.

Techcombank proposed not to pay dividends in 2022 to supplement capital for its business activities.

This is the 12th year that Techcombank has not paid cash dividends. The last time the bank distributed profits to shareholders was in 2018.

In addition, Techcombank will present to shareholders a plan to issue shares under the Employee Stock Ownership Plan (ESOP). The bank will issue more than 6.3 million shares at the price of VND10,000 ($0.43) per unit. The proceeds will be used to supplement the bank's working capital.

If approved, this is the fifth consecutive year that Techcombank has issued millions of ESOP shares to employees.

Techcombank recorded an after-tax profit of VND25,600 billion ($1.09 billion) in 2022, up 10% year-on-year.

The bank's operating revenue reached VND40.9 trillion ($1.74 billion) during the period, up 10.3%, according to its consolidated financial statement. Operating revenues are those generated from primary business activities.

Its interest income came in at VND30.3 trillion ($1.29 billion), up 13.5% year-on-year, mainly driven by credit portfolio growth with a net profit margin (in 12 months) managed at 5.1%.

As of December 31, 2022, Techcombank's assets reached VND699 trillion ($29.8 billion), up nearly 23% compared to 2021. Total credit balance was 14.5%, in line with the target set by the SBV, with the credit portfolio continuing to be transformed from large corporate to personal loans.

On the Ho Chi Minh City Stock Exchange, the TCB shares price hit VND28,350 ($1.21) a piece at the closing session on Friday.