Business
Warbug-backed Techcombank posts record profit of US$223.4 million in H1
The Vietnamese lender saw its after-tax profit increase to an all-time high of VND4.15 trillion (US$178.3 million) during the first half of 2018, according to the bank`s quarterly consolidated financial statement.
Techcombank - backed by global private equity fund manager Warburg Pincus, saw its pre-tax revenue climb 90% year-on-year to VND5.2 trillion (US$223.4 million) in the first half of 2018, according to the statement.
This resulted in the bank's all-time high after-tax profit of VND4.15 trillion (US$178.3 million), according to the report.
Techcombank's loans to customers reached VND166.7 trillion (US$7.16 billion) up 26% year-on-year. Of the total, loans to individual customers, large corporations and small and medium enterprises (SMEs) accounted for 50%, 35% and 25%, respectively, which saw a significant changes compared to the same period of last year (45%, 40% and 14%, respectively).
Notably, individual customers and SMEs are subject to high-interest loans, contributing to the lender's high net interest and similar income of VND5.05 trillion (US$216.9 million) and the net interest margin (NIM) of nearly 3.5%, one of the highest in the banking system.
Contributing to the bank's high profit was the net fee and commission income of VND1.18 trillion (US$50.69 million), up 8% year-on-year, while irregular income from debt settlement reached VND1.36 trillion (US$58.46 million).
Additionally, income from early settlement of Vietnam Asset Management Company (VAMC)'s bonds and recovery of loans previously written-off also attributed to Techcombank's high growth rate in profit, according to the report.
In early March, Warburg announced a US$370 million-investment in Techcombank, marking the largest-ever private equity investment in Vietnam to date. The transaction, which was made through two separate legal entities managed by Warburg Pincus, brings Warburg's total commitment in the country to over US$1 billion.
Techcombank is 14.99% owned by Masan Group, while foreign investors own 22.5% of the bank's chartered capital, albeit each owns less than 5%. Dragon Capital, Capital Group, Clermont Group, Singaporean wealth fund GIC and Fidelity are among shareholders of the bank.
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Techcombank's loans to customers reached VND166.7 trillion (US$7.16 billion) up 26% year-on-year. Of the total, loans to individual customers, large corporations and small and medium enterprises (SMEs) accounted for 50%, 35% and 25%, respectively, which saw a significant changes compared to the same period of last year (45%, 40% and 14%, respectively).
Notably, individual customers and SMEs are subject to high-interest loans, contributing to the lender's high net interest and similar income of VND5.05 trillion (US$216.9 million) and the net interest margin (NIM) of nearly 3.5%, one of the highest in the banking system.
Contributing to the bank's high profit was the net fee and commission income of VND1.18 trillion (US$50.69 million), up 8% year-on-year, while irregular income from debt settlement reached VND1.36 trillion (US$58.46 million).
Additionally, income from early settlement of Vietnam Asset Management Company (VAMC)'s bonds and recovery of loans previously written-off also attributed to Techcombank's high growth rate in profit, according to the report.
In early March, Warburg announced a US$370 million-investment in Techcombank, marking the largest-ever private equity investment in Vietnam to date. The transaction, which was made through two separate legal entities managed by Warburg Pincus, brings Warburg's total commitment in the country to over US$1 billion.
Techcombank is 14.99% owned by Masan Group, while foreign investors own 22.5% of the bank's chartered capital, albeit each owns less than 5%. Dragon Capital, Capital Group, Clermont Group, Singaporean wealth fund GIC and Fidelity are among shareholders of the bank.
