Techcombank may seek strategic investors

Khanh Minh Tuesday | 11/14/2023 13:53

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Techcombank, Vietnam’s 2nd-largest private bank backed by Warburg Pincus, might be “open” to more foreign investors as it looks for long-term strategic partners.

"We know there is a lot of interest," CEO Jens Lottner stated in an interview with Bloomberg TV. Foreign investors own roughly 22% of the Hanoi-based bank and can buy another 8% before reaching the government's 30% restriction for foreign investors, he said.

Techcombank, on the other hand, is not actively seeking strategic investors, according to Lottner.

"I think we have a lot of earnings power," he added, adding that raising more cash isn't necessary just now. According to Lottner, the bank may raise the float of shares held by foreign investors.

Lottner stated that the bank will consider "very good long-term strategic investors or just long-term investors" when reviewing capital plans in the coming years.

Techcombank reported a third-quarter pretax profit of 5.8 trillion dong ($238 million), a 13% decrease from the same period previous year.

According to last month's announcement, the lender had 13 million members as of September 30, gaining almost 2.2 million new customers in the first nine months. 44.4% were obtained digitally, while 42.9% were obtained through ecosystem partners.

The bank's net interest income decreased by 3.8% year on year to VND7,272 billion in 2022. Furthermore, Techcombank's income from service activities climbed by 9.2% in the first nine months of 2023 compared to the same period last year. Income from service activities climbed by 11% year on year in the third quarter of 2023, to VND3,008 billion.

The bank's net profit from service activities was VND2,256 billion, up 11.7% from the same time in 2022. Profit from foreign exchange trading was VND123,8 billion, and profit from trading investment securities was VND635 billion.

In addition, the bank lost VND5.6 billion on business securities purchases and sales. As a result, pre-tax profit in the third quarter of 2023 is VND5,843 billion, while after-tax profit is VND4,669 billion.

Techcombank's net interest income totaled VND20,100 billion in the first nine months of the year, a 14.4% decrease from the same period the previous year. The bank's pre-tax profit was VND17,115 billion, 17.8% lower than the same period last year, resulting in a VND3,155 billion fall in profit after tax to VND13,709 billion.

Techcombank's total assets increased 11.8% year on year to VND781.3 trillion as of September 30, according to the bank.

Source: Bloomberg