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Techcombank (TCB VN) – FY 2025 – Net Profit Up 17.5% as Retail Lending Expands
Summary of FY 2025 results and outlook of Techcombank (TCB VN)
- 2025 marked a pivotal strategic year for TCB, reaffirming its ability to anticipate and position ahead of emerging growth trends. The bank advanced its strategy of diversifying away from real-estate developer lending, shifting toward a broader retail-consumer mix across credit cards, home-equity loans, auto loans and unsecured lending, while maintaining stable asset quality. In October, TCB led Vietnam’s IPO market with the successful IPO and then listing of Techcom Securities (TCX) – its securities brokerage arm, raising USD 412mn at a USD 4.1bn valuation, further strengthening capital to reinforce its leadership in wealth-tech solutions and support expansion into new areas such as crypto and gold trading. Meanwhile, the debut of Techcom Life and the non-life insurance platform marked the bank’s next phase of growth, leveraging advanced digital platforms to establish a scalable foundation for operational efficiency and faster product deployment. The non-life business has rapidly built a diversified portfolio covering health, motor, property and home insurance, alongside business solutions including cargo, cyber and liability.
- The bank posted a solid 17.5% y/y growth in net profit. Total credit expanded by 20.7% y/y, driven primarily by accelerated lending to the retail segment, while growth in the corporate portfolio remained more measured. Net interest margin (NIM), however, contracted by 48 bps in line with sector trends as banks lower interest rate to compete for high growth. Nonetheless, pressure began to ease in H2/2025, aided by funding costs advantage from a high CASA ratio alongside a gradual pickup in lending rates amid sustained credit demand. Net fee income (NFI) grew modestly by 9.1% y/y, partly affected by the reclassification of letter-of-credit products into interest income. Despite this, investment banking (IB) fees recorded a strong 20.7% y/y increase, following robust bond underwriting and distribution volumes from (TCX). Meanwhile, bancassurance show clear momentum, jumped 91.8% y/y as the bank regained a market leading position. Operating expenses were well controlled, rising 6.9% y/y, largely reflecting continued investments in technology infrastructure. Asset quality remained resilient, with the NPL ratio stable at 1.1%, among the lowest in the sector.
- We forecast 2026F net profit to be driven by credit growth. Corporate lending is expected to be bolstered by sectors positioned favorably in the macro backdrop—infrastructure, logistics and industrial production—while continued catch-up in retail lending should further diversify the bank’s portfolio. NIM is projected to improve, as faster upward repricing of lending yields outpace rising funding cost pressure. Fee income is expected to rebound, led by robust IB fees and strong bancassurance as the bank accelerate its own products offerings.
Interested in TCB? Click here to read more of our previous analysis on TCB’s quarterly earnings.
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