CFA Institute Research Challenge 2022-2023 In Vietnam – Subject Company – Techcombank

Following the success of previous years, Research Challenge 2022-2023 welcomes the twelfth year to be officially held in Vietnam.This year, the subject company for the CFA Institute Research Challenge 2022 is Techcombank (HSX: TCB).



Vietnam Technological and Commercial Joint-stock Bank, more commonly known as Techcombank, is one of the leading commercial banks in Vietnam. Techcombank was established in 1993, during the Doi Moi period of economic reform. In 2018, Techcombank achieved a very important milestone, as the bank completed the largest banking IPO in the history of Vietnam and began listing its shares on the Ho Chi Minh City Stock Exchange.

In 2021, Techcombank had an outstanding performance with profit before tax was at USD 1 billion (VND 23,238 billion) for the first time. The bank not only exceeded the 2021 plan but also performed well, continuing to lead the industry with a current and savings accounts (CASA) ratio of 50.5%, return on assets of 3.7%, and net interest margin (NIM) of 5.6%. Techcombank attracted over 1.2 million new customers, bringing their total to more than 9.6 million. Customers made 652 million electronic transactions, up 70.0% from 2020, with a total value of VND 9.1 quadrillion, up 80.5%.

In the first half of 2022, Techcombank had a strong performance from core revenue engines. TOI growth of +16.6% YoY was driven by both NII (+25.1% YoY) and NFI1 (+29.5% YoY). ROE remained strong at 21.8%. Loan-loss coverage ratio was 171.6%.

In terms of credit rating, in March 2021, Moody’s Investor Service reaffirmed Techcombank’s rating at Ba3 (BCA), reflecting the Bank’s stable asset quality, solid profitability, and strong capitalization. Also in September 2020, Standard & Poor’s (S&P) maintained Techcombank’s rating at BB-/B with a “Stable” outlook. According to S&P, the rating reflects “Techcombank’s good franchise, particularly in the retail and SME segments in Vietnam”, and the Bank “will maintain its entrenched retail franchise and above industry average profitability”.