According to its financial report, Techcombank's total operating income reached VND 13,700 billion, an increase of 17.8% compared to the same period last year. This growth was significantly boosted by strong contributions from core income streams. Net interest income (NII) specifically rose to VND 9,500 billion, marking a 14.6% year-on-year increase. Despite rising capital costs and intense competition for deposits, the net interest margin (NIM) for Q1 decreased to 3.1%, though the 12-month average NIM remained stable at 3.7%.

Income from service activities (NFI) reached VND 3,600 billion, a nearly 47% surge and an all-time high for the bank. Revenue from payment and trade finance activities accounted for VND 1,600 billion of this, growing by 158.6%. This reflects a recovery in trade activities and the effectiveness of new trade finance products.

Other segments also posted positive growth. Card service fee income increased by 15.4% year-on-year to VND 442.5 billion. Foreign exchange service income rose by 25.4% year-on-year to VND 349.3 billion, marking its seventh consecutive quarter of growth. Notably, income from insurance service fees, including bancassurance products and subsidiary insurance services, reached VND 429.2 billion, an increase of 103.4% year-on-year. This figure highlights the acceleration of the insurance segment as the bank ramped up the implementation of life insurance products from early 2026.

Techcombank recorded positive growth results in Q1. Photo: Techcombank

In the credit segment, outstanding loans expanded by 2.89% compared to the beginning of the year. The credit structure continued to shift, with the proportion of real estate loans decreasing to 28.9%, falling below the 30% threshold for the first time. Conversely, the retail and small and medium-sized enterprise (SME) segments grew by 33% year-on-year and 6% from the start of the year, reaching VND 395,300 billion.

Outstanding loans in the construction sector saw a robust 72% increase, primarily focused on infrastructure projects. Other sectors such as fast-moving consumer goods, logistics, and telecommunications also showed positive signs. Notably, unsecured consumer loans surged by 159.1% year-on-year and 14.4% from the beginning of the year. Additionally, home loans and margin loans increased by 6.4% and 2% respectively compared to the start of the year.

Regarding funding, customer deposits reached VND 651,000 billion, up 14.2% from the beginning of the year. In an environment of persistently high interest rates, some cash flows shifted towards term deposits. Despite this, the current account savings account (CASA) ratio, which includes automatic interest-bearing accounts, remained strong at 37.9%, helping to manage the bank's cost of capital.

Alongside its growth trajectory, Techcombank maintained operational efficiency and rigorous risk management. Operating expenses stood at VND 3,870 billion, an increase of 17.8% year-on-year but a nearly 20% reduction from the previous quarter, demonstrating effective cost control aligned with strategic objectives. As a result, the cost-to-income ratio (CIR) improved to 28.3%.

Meanwhile, credit risk provisioning costs decreased by 14.2% year-on-year to VND 935.3 billion. The 12-month trailing cost of credit remained stable at 0.6% and a low 0.4% after recoveries from provisioned loans, reflecting tightly controlled asset quality.

Safety indicators continued to stay within regulatory limits. The loan-to-deposit ratio (LDR) was 80.5%, and the ratio of short-term funds used for medium- and long-term loans was 26.9%. The capital adequacy ratio (CAR) under Basel II reached 15.2%, an increase from the end of last year. The non-performing loan (NPL) ratio was 1.16%, while the NPL coverage ratio stood at 129.3%.

The bank notably attracted over 63% of its new retail customers through online channels. The number of electronic transactions reached 1.4 billion, a 27.3% increase year-on-year.

By the end of the first three months of the year, Techcombank's total assets amounted to VND 1.19 quadrillion.

Jens Lottner, Techcombank's Chief Executive Officer, stated that the Q1 results reflect the bank's adaptability in a dynamic economic landscape. According to Lottner, the bank is focusing on diversifying its funding sources to strengthen its liquidity foundation and support long-term growth. Techcombank also signed a EUR 200 million financing agreement with the European Investment Bank (EIB) to expand funding for green projects.

In the upcoming period, Techcombank will continue to enhance collaboration within its ecosystem, accelerate digital transformation, and move towards an artificial intelligence (AI)-driven operating model, while maintaining its role as a financial partner for sustainable development.

Minh Ngoc