Techcombank earnings reached a record quarterly profit before tax of more than VND10 trillion in the third quarter of 2026, up 25.8% from a year earlier. The bank’s October 21 earnings discussion highlighted strong interest and fee income growth, but also rising funding costs, a lower share of current and savings deposits, and subdued mortgage demand.
Key Takeaways
- Nine-month profit before tax reached VND28.9 trillion, up 23.7% year over year.
- The current and savings account ratio fell to 35.5%, while funding costs rose to 5.2%.
- Credit grew 16.3% year to date without an additional lending-quota allocation.
Table of Contents
- Techcombank earnings grow across interest and fee income
- Deposit competition limits margin improvement
- Infrastructure lending expands within funding constraints
- Wealth strategy targets broader customer relationships
- Conclusion
Techcombank earnings grow across interest and fee income
Total operating income increased 18% year over year, supported by a 16.9% rise in net interest income and 40% growth in net fee income. The results showed contributions from both lending-related revenue and fee-generating activities, rather than dependence on a single income line.
Digital customers reached 14.8 million, up 19%, and digital channels accounted for 99% of retail transactions. The affluent customer base expanded 30% to 307,000, while equity brokerage market share reached 10%.
Those businesses are important to management’s response to margin pressure. Chief Financial Officer Alexander Macaire said lending-rate concessions could be paired with deeper customer relationships and additional foreign-exchange, letter-of-credit, guarantee and other fee services.
| Item | Details |
|---|---|
| Capital adequacy ratio | 15% |
| Tier 1 capital ratio | 14.1% |
| Loan-to-deposit ratio | 77.7% |
| Short-term funding used for medium- and long-term loans | 27.9% |
Deposit competition limits margin improvement
Net interest margin improved to 3.5%, but funding costs rose to 5.2% from 4.9%. Higher term-deposit rates encouraged customers to move money out of current and savings accounts, reducing the CASA ratio to 35.5% from 40% at the end of 2025.
That shift matters because current and savings deposits generally provide cheaper funding than term deposits. Management said a return to a 40% CASA ratio was unlikely for the full year, leaving deposit composition an important constraint even as income grows.
Credit-quality measures also showed some pressure. The organic nonperforming-loan ratio stood at 1.26%, or 1.36% including Credit Information Center-related effects, while loan-loss coverage declined to 107%. Management attributed the increase in problem loans to migration in non-target sectors and individual cases.
Infrastructure lending expands within funding constraints
General Director Jens Lottner said Techcombank had received no additional credit-quota allocation for 2026. Some sectors, customers and projects fall outside the normal quota, however, allowing the loan book to expand. Priorities for the remainder of the year include infrastructure projects with bankable cash flows, small and medium-sized businesses linked to key clients, and unsecured lending to high-quality retail borrowers.
Infrastructure represented around 7% of total credit balances and was expected by management to increase. Lottner described an originate-to-distribute approach: initial financing serves as bridge funding over two to three years, with plans to syndicate, distribute or refinance projects through bond issuance once they become operational.
Real estate exposure fell to 30% from 34% a year earlier. Mortgage demand remained subdued, although monthly disbursements ranged from VND5 trillion to VND8 trillion, with September reaching the upper end—the highest level in six months. Macaire said the mortgage portfolio showed no broad-based deterioration.
The bank reported the following capital and liquidity measures alongside its lending expansion.
Wealth strategy targets broader customer relationships
Lottner said Techcom Wealth aims to move beyond banking privileges toward portfolio management, wealth preservation and intergenerational transfer. The bank is assembling external specialists and building a chief investment officer office with overseas talent. He said the unit already represented roughly 10% to 15% of retail bank assets under management.
The strategy builds on an existing focus described in the bank’s private banking and succession-planning approach, published in February 2026. That earlier explanation outlines integrated advice for clients’ personal and business wealth and preparation of the next generation; it provides background to the strategy rather than verification of the third-quarter results.
Management sees wealth services and its securities and insurance businesses as ways to broaden income beyond lending margins. Their future contribution remains a strategic expectation, distinct from the fee-income growth already reported.
Conclusion
For the remainder of 2026, Techcombank’s stated priorities are selective infrastructure, business and retail lending alongside broader fee-generating relationships. The next results will show whether that mix can sustain profit growth while funding costs remain elevated and low-cost deposits remain below their end-2025 share.
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