Techcombank – Interest income vs. expense vs. NIM
2017 and 2016 first quarter profit break-down
With 7.3 per cent credit growth while provision expenses jumped 324.4 per cent year-on-year and accounted for 59 per cent of pre-provisioning profits, Techcombank’s pre-tax profit fell by more than three-quarters from a high of VND4.22 trillion ($185.7 million) in 2011 to just over VND1 trillion ($44 million) in 2012. Both return on assets and equity also slipped, from 1.83 per cent and 28.87 per cent a year earlier to a disappointing 0.42 per cent and 5.58 per cent by the end of 2012.
Its 2016, net profit climbed 105.92 per cent year-on-year, supported by loans growth, a higher NIM, and solid non-interest income.
Then, in mid-June, the announcement came that the bank was seeking shareholder approval for HSBC to sell its entire stake of 172.32 million shares. Techcombank officials declined to comment when asked by VET.
To some extent, this can either be understood as “we [HSBC] are fine with the break-up because the strategic partnership has never been more than just an initial platform” or “there will be little or no impact on HSBC’s vision in Vietnam post-parting.”
Having cut more than half of its stake in Techcombank to the current 15 per cent to meet the limits on owning no more than 20 per cent of charter capital in a credit institution, the “quasi-private” conglomerate still owns a 30.4 per cent interest in the bank through bond acquisitions in 2010.
As the Board and its related parties hold a total stake of 5.82 per cent, senior leadership roles at Techcombank are still in the hands of Masan personnel, including Chairman Mr. Ho Hung Quang, First Vice Chairman Mr. Nguyen Dang Quang, and Vice Chairman Mr. Nguyen Thieu Quang.