Techcombank announced its Q1 2026 financial results, revealing a pre-tax profit of nearly 8,900 billion VND, a 23% increase year-on-year. This marks the bank's highest Q1 profit to date. The strong performance builds on the completion of its 5-year strategic transformation (2021-2025) in 2025, which saw pre-tax profit exceed 32,500 billion VND, laying a solid foundation for 2026 operations.

A notable aspect of Techcombank's first three months of business was the substantial growth in fees. Income from service activities (NFI) reached approximately 3,600 billion VND, representing a 47% increase compared to the same period last year. Notably, life insurance fee income saw an increase of over 100% after three months of nationwide implementation.

Customers conducting transactions at the bank. Photo: Techcombank

Growth was recorded across several key operational segments. Card service fees exceeded 440 billion VND, increasing by approximately 15% year-on-year, driven by expanded utilities and diversified spending channels. In the payment and trade finance sector, revenue from letters of credit (LCs), cash, and payments reached about 1,600 billion VND, a strong increase compared to both the prior year and previous quarter. This outcome is linked to the bank's ongoing product enhancements and new solution implementations for corporate clients.

Insurance operations also significantly contributed to this growth. With the establishment of both life and non-life insurance companies, Techcombank has completed its financial services and protection ecosystem, embodying a "One stop shop" model that offers a single point of contact and a complete customer experience.

Following just three months of nationwide implementation, revenue from insurance service fees, encompassing bancassurance products and subsidiary insurance services, reached 429,2 billion VND, a 103,4% increase year-on-year. This result stems from the strong growth in insurance service fee revenue at its subsidiaries, built upon the comprehensive rollout of life insurance products starting in Q1 2026.

Additionally, the foreign exchange business recorded revenue of approximately 349 billion VND, an increase of over 25% year-on-year, maintaining a stable contribution to total service income. These results highlight the diversity of non-interest income sources and the development of the bank's service ecosystem.

A bank representative stated that this trend signifies a shift in the bank's income structure, with service revenue playing an increasingly vital role. In 2025, Techcombank led the industry in fee market share, capturing approximately 16%, demonstrating a long-established and stable service foundation.

Alongside revenue growth, safety indicators remain high. The capital adequacy ratio (CAR) under Basel II standards reached approximately 15,2%. These figures demonstrate the effectiveness of the comprehensive ecosystem Techcombank is building.

With net interest income subject to credit cycle fluctuations, fee income is crucial for stable growth. This outcome results from long-term investments in digital platforms, data, asset management, insurance, and transaction banking services.

Maintaining a high proportion of service income, coupled with positive indicators such as return on assets (ROA) and current account savings account (CASA) ratios, indicates a business model focused on income diversification. This approach helps the bank reduce its reliance on credit and align with practices of regional financial institutions.

As the economy aims for high growth and capital markets expand, banks capable of developing non-interest income are positioned for long-term advantage. Techcombank will continue to implement strategies to expand its service ecosystem and enhance operational efficiency.

At its recent 2026 Annual General Meeting of Shareholders, Techcombank approved key resolutions aimed at leveraging its strengths to evolve from a domestic leader to an international, comprehensive financial ecosystem. Through increased investment in comprehensive AI and sustainable development, alongside expanding its service ecosystem beyond traditional banking, Techcombank aims to develop new customer services and continue driving positive change across the industry.

Hoang Dan