Awards for Excellence 2021: Best bank in Vietnam
Best Bank: Techcombank
Until very recently, Vietnam was experiencing quite a benign pandemic. It was one of the few economies in the world to grow during 2020. Things have changed in recent months but in the review period, Vietnam’s banks had it about as good as any in the region.
Techcombank took the best advantage. Its first quarter 2021 results showed profit after tax up a remarkable 76.8% year on year – keep in mind that the first quarter of 2020 was itself up 19.2% year on year, so this wasn’t off an artificially low base. Credit grew 23.3% through 2020 and another 5.7% in the first quarter of 2021. NPLs are at just 0.4% of the book with a 219.4% coverage ratio. The result is a bank boasting a return on equity of 20.1% as of March 31, one of the highest figures in Asia.
Capital and liquidity metrics, such as a 44.2% CASA ratio, point to a well run bank that stands comparison to any international standards – unsurprising for a house with GIC and Warburg Pincus on the shareholder register.
Techcombank, already implementing a plan to be cloud-everything as soon as possible, upgraded its core banking system in May 2020, assisting 109% transaction volume growth in e-banking through the year. A new online FX buying and cross-border transfer service achieved 70% adoption during the review period.
For the future, the bank plans to double down on its biggest opportunities, which include mortgages, CASA and wealth management. Departing chief executive Nguyen Le Quoc Anh leaves the bank in good shape. The current CEO is Jens Lottner.