GTJASVN_TCB-Equity-Report_Q3.2024 Earnings Update_Oct2024

Research Center

29/10/2024

Techcombank saw strong credit and profit growth in the first 9 months of 2024, with credit growth at 17.4% ytd and pre-tax profit reaching VND 22.8 trillion (up 33.5%). Net interest income grew on increased personal lending, particularly mortgages, though non-interest income declined by 10.2% due to lower revenue from letters of credit and foreign exchange. The end of its partnership with Manulife will add a compensation cost in Q4. Although NPL rose to 1.35%, Techcombank strengthened its bad debt provisions. Despite some short-term credit risks, TCB remains promising for long-term investors with its robust financial base and diversified revenue strategy.

ASSESSMENT
Hold: For long-term investors, TCB remains a potential stock thanks to its strong financial foundation, high CASA ratio, and revenue diversification strategy. However, short-term credit risks, particularly the increase in NPL and provision costs, along with the lack of improvement in NIM, may temporarily weigh on profits.

Contact

Stock index

Trade now

EN

VI

CN

Research Center