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Techcombank (TCB VN) – Q1 2026 – Net Profit Rises 15.6% as Bancassurance and Retail Lending Accelerate
Summary of Q1 2026 results and outlook of Techcombank (TCB VN)
- Net profit grew 15.6% y/y, bolstered by solid credit growth and a notable acceleration in contributions from fee income. Total credit expanded 20.0% y/y driven by a continued shift toward the retail segment, focusing on higher-yield products and smaller ticket sizes to enhance diversification. Meanwhile, corporate lending remained more selective, benefiting from infrastructure-related demand while actively scaling down its exposure to real estate. Net interest margin (NIM) continued to face pressure, contracting by 17 bps in line with sector trends, as tight VND liquidity conditions pushed funding costs higher. In contrast, net fee income (NFI) rose sharply by 72.2% y/y, primarily driven by a 158.6% y/y rebound in payment and treasury services following the rollout of new trade finance solutions, alongside a rapidly expanding contribution from insurance services, which rose by 103.4% y/y. Operating expenses grew by 17.8% y/y, reflecting continued investment in technology infrastructure, while the cost-to-income ratio (CIR) remained well controlled at 28.3%. Asset quality stayed resilient despite the higher interest rate environment, with the NPL ratio stable at 1.1%, among the lowest in the sector.
- The full-scale rollout of Techcom Life marks a strategic step forward to further diversify the bank’s income base. The subsidiary delivered a strong set of initial results, with Annual Premium Equivalent (APE) reaching VND400bn (2.2x y/y), securing the top 1 position in bancassurance with a 21% market share. This performance reaffirms the bank’s consistent execution capabilities, ongoing product innovation, and effective leveraging of its technological and business ecosystem. Early traction from the revamped insurance and bancassurance model, together with the contribution from Techcom Securities—a top-tier securities brokerage and capital markets services provider—has continued to push fee income to 23.0% of total income, the highest in the sector. This supports earnings quality and resilience against credit cycle volatility.
- For the remaining 9M of 2026, we anticipate a gradual recovery in NIM, supported by (1) a continued shift toward higher-yielding retail products (2) a gradual moderation in deposit rates since early Q2 following the SBV’s intervention to stabilize the interest rate environment. Nevertheless, our 2026 net profit forecast is lowered by 5.2% to VND30.5tn (+17.5% y/y), mainly reflecting more conservative assumptions for full-year credit growth and NIM, as the regulatory stance on credit expansion is likely to remain cautious amid a more uncertain macro backdrop. Fees income, however, is expected to remain strong, supported by sustained momentum in payment and insurance services, alongside solid contributions from investment banking activities.
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