“Our robust capital and funding positions have enabled us to support our customers and weather the difficult operating environment this year. As we look towards the end of 2020 and beyond, we are cautiously optimistic that the impact of Covid-19 has peaked and that proven preparedness of the Government, together with the collective experience of the business and broader community, will allow us to manage and mitigate risks should there be another breakout. Importantly, the long-term drivers for growth are intact, and we remain focused on the consistent execution of our strategy and investments in digitalization to improve our customer experience,” shared Techcombank CEO Jens Lottner.

INCOME STATEMENT
The Bank’s Total Operating Income (TOI) grew 33.5% to VND 19.3 trillion for the nine months ended September 30, 2020 from VND 14.4 trillion for the nine months of 2019. Net interest income (NII) for the nine months grew to VND 13.3 trillion, up 28.4% Year-overYear (YoY). Net Fee and Commission Income (NFI) was VND 3.1 trillion, increasing 65.1% YoY. NFI was 16.2% of TOI as compared to 13.1% in the nine months of 2019, with a strong contribution from bond underwriting activity during the period.

Operating expenses was VND 6.3 trillion for the nine months ended September 30, 2020, up 27.1% YoY. Cost to income ratio (CIR) was improved, being lowered to 32.8% from 34.5% a year ago on the back of stronger TOI growth. In the third quarter of 2020, the Bank continued to proactively write off selected non-performing loans. Provision expenses for the nine-month 2020 prudently increased to VND 2.2 trillion from VND 605 billion for the nine months ended September 30, 2019.

BALANCE SHEET
Total assets were VND 401.5 trillion at the end of 3Q20, an increase of 9.2% from September 30, 2019 and up 4.6% Year-To-Date (YTD). Total credit extended to customers as of September 30, 2020 was VND 279.4 trillion, an increase of 14.4% over September 30, 2019 and up 8.3% YTD. Total deposits as at September 30, 2020 were VND 252.6 trillion, an increase of 9.2% YTD. CASA deposits grew by 22% YTD to VND 97.5 trillion, while time deposits were VND 155.1 trillion, an increase of 2.4% YTD, reflecting the Bank’s success in optimizing its cost of funding. CASA ratio was 38.6% for the quarter ended September 30, 2020, up from 34.5% at the end of 2019.

LIQUIDITY AND CAPITAL
Techcombank maintained ample liquidity exceeding regulatory requirements with a loan-todeposit ratio (LDR) of 71.9% and short-term funds to medium-to-long-term loans ratio of 31.1%, improving from the 38.4% at the end of 2019. The Bank also maintained its position as the best capitalized listed bank in Vietnam1 with a Basel II Capital Adequacy Ratio (CAR) of 16.7%, more than double the Basel II Pillar I minimum requirement of 8% and up from 15.5% at the end of 2019.

ASSET QUALITY
NPL ratio was 0.6% as at September 30, 2020, against 0.9% as at June 30, 2020 and 1.8% as at September 30, 2019. NPL ratio decreased thanks to both proactive writing off bad debts and ongoing prudent risk management especially during Covid-19 in the nine months of 2020. NPL coverage ratio as at September 30, 2020 was 148% compared to 108.6% as at June 30, 2020 and 77.1% as at September 30, 2019.

CUSTOMER AND OTHER HIGHLIGHTS
During nine-month 2020, Techcombank added 760,000 net new customers to bring the total customers served by the Bank to more than 8 million. The Bank has continued to maintain high safety standards to protect our customers and employees while keeping all of our branches and ATMs operating normally during the nine months of 2020. These actions combined with our leadership position in online and mobile banking ensured that customers continued to be wellserved during the lock down measures in April and after they were lifted. Retail customers’ transaction volume and value during nine months through Techcombank’s e-banking channels increased to 256 million and VND 3.3 quadrillion (up 117.2% and up 84.4% YoY, respectively). Standard & Poor’s in its September 2020 update re-affirmed BB-/Stable/B for Techcombank despite the negative impact on economic activities and GDP growth in 2020 due to the Covid pandemic. S&P’s highlighted Techcombank’s good franchise, above industry average profitability and capitalization as key factors for its rating on the bank. It also emphasized that the bank’s deposit base will remain adequate thanks to a sizable network and brand name. Earlier Moody’s Investor Service also maintained Techcombank’s rating at Ba3 (Baseline Credit Assessment) which reflected the bank's stable asset quality, solid profitability and strong capitalization”. Among the 19 banks rated by Moody’s in Vietnam, Techcombank was the only one with a BCA that was constrained by the sovereign rating.

ABOUT TECHCOMBANK
Established in 1993, Techcombank is one of the largest joint stock banks in Vietnam, and a leading bank in Asia. Techcombank pursues a proven customer-centric strategy in providing a broad range of banking solutions and services to more than 8 million retail and corporate customers in Vietnam through an extensive network of over 300 transaction offices across the country and through its market leading digital banking services. The bank’s ecosystem approach, which is implemented across multiple key economic sectors, further differentiates Techcombank in one of the fastest growing economies in the world. Techcombank is rated highest among banks in Vietnam with a Ba32 from Moody’s and BB-3 from S&P and was named “Best Bank in Vietnam 2020” by FinanceAsia, “Best SME bank 2020” and “Best home loan product 2020” by The Asian Banker. Techcombank is listed on the Ho Chi Minh Stock Exchange (HOSE) under the ticker TCB.