S&P Global Ratings, one of the world's three largest and most reputable credit rating agencies, stated that Techcombank is expected to maintain its strong capital position over the next 24 months, following a more than 20% increase in 2024. The bank's capital adequacy ratio and profitability are assessed as among the highest in the system, according to S&P's stringent standards. The bank's risk profile is considered stable, despite macroeconomic fluctuations, with non-performing loans below the industry average.

Notably, Techcombank achieved this low level of non-performing and potentially risky loans while maintaining stable provisioning costs, about half that of many competitors. Excluding the qualitative factors in the provisioning policy, Techcombank's non-performing loan coverage ratio and stand-alone credit profile are among the highest in the industry.

A Techcombank representative said the upgrade by one of the world's three largest credit rating agencies reflects recognition of the bank's financial strength and risk management capabilities.

"The new rating enhances Techcombank's reputation in the international market, facilitating access to long-term capital at more competitive costs," the representative said.

In the first 6 months of the year, Techcombank's pre-tax profit reached 15,135 billion dong. *Image: Techcombank*

During its interactions with S&P, Techcombank not only shared its operational data but also recommended that the agency re-evaluate the entire Vietnamese banking sector. The bank arranged meetings between S&P experts and the Deputy Prime Minister and leaders of the State Bank of Vietnam to share more about the direction and actual management of the economy and the banking industry. This aimed to strengthen S&P experts' confidence not only in Vietnam's achieved results but, more importantly, in its future prospects.

Analysts believe that S&P's upgrade of Techcombank not only reflects the bank's individual results but also indicates the improvement of the entire Vietnamese banking sector, especially from 2020-2024, when the system overcame many challenges thanks to an improved legal framework and enhanced management capacity.

Regarding tariff concerns, S&P assesses the impact on Techcombank as negligible, due to the very low proportion of export-oriented customers in its credit portfolio. While most other countries and credit institutions have only maintained or had their ratings downgraded since the beginning of this year, S&P directly upgraded Techcombank's credit rating by one notch, instead of just adjusting the outlook. According to a bank representative, this demonstrates S&P's confidence in Techcombank's internal strength and the prospects of the Vietnamese banking system.

Techcombank is currently one of the institutions in Vietnam that has successfully diversified its capital sources from global financial institutions for 3-5 year long-term loans. In July, the bank also marked two consecutive years (2024-2025) of simultaneously receiving three "Best Bank in Vietnam" awards from Euromoney, Global Finance, and FinanceAsia.

Minh Ngoc