In a financial landscape marked by challenges, Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has unveiled a profit after tax of $472.75 million (VND12.36 trillion) for the first half of 2025. This figure represents a modest decline of 1.48% compared to the approximately $480 million (VND12.55 trillion) reported during the same timeframe last year.
Techcombank’s total operating income took a downturn in H1 2025, amounting to $931.34 million (VND24.35 trillion), down from VND25.68 trillion in H1 2024. Despite the overall income decline, the bank observed a small silver lining as net interest margin (NIM) edged upward to 3.8% by the end of Q2 2025, compared to 3.7% in Q1, even as net interest income (NII) fell to $665.51 million (VND17.4 trillion), a 3% year-on-year decrease.
Net fee income also slipped, totaling $210.37 million (VND5.5 trillion), a 5.4% decline from last year, primarily due to lower earnings from letters of credit, remittances, and card fees. However, a standout performer was the investment banking sector, where fees surged by 30.2% year-on-year to reach $89.11 million (VND2.33 trillion), bolstered by a strong issuance in previous quarters.
The second quarter of 2025 painted a more vibrant picture for Techcombank. Investment banking fees alone rose to $53.93 million (VND1.41 trillion), marking a remarkable 35.5% year-on-year increase and a 53.3% surge compared to Q1. This uptick was spurred by robust activity across multiple business lines, including brokerage and agency management, margin lending, and bond underwriting.
In contrast, earnings from letters of credit, remittances, and cash settlements plummeted by 40.6% year-on-year to $49.72 million (VND1.3 trillion), attributed to changes in accounting treatment and subdued customer demand. Nonetheless, these figures saw an 11.4% improvement from Q1, thanks to a newly adopted trade financing solution known as ‘LC purchase without recourse.’
Card-related income fell sharply by 24.7% year-on-year to $29.43 million (VND769.4 billion). Techcombank noted this decline aligns with a broader industry trend toward alternative payment methods like QR codes. Indeed, the bank proudly claims the top market position for QR code transactions in H1 2025, as reported by VietQR.
On a brighter note, foreign exchange sales skyrocketed by 57.7% year-on-year, reaching $22.34 million (VND584 billion). This growth indicates a notable shift in consumer and business behavior towards FX trading.
What contributed to Techcombank’s profit decline in H1 2025?
The bank reported a 1.48% decrease in profit mainly due to lower total operating income and a decline in net fee income, particularly from letters of credit and card fees.
How did investment banking perform for Techcombank in this period?
Investment banking fees saw significant growth, rising by 30.2% year-on-year to $89.11 million, driven by increased activity in several business lines.
What payment trend is Techcombank capitalizing on?
The bank is leading the market in QR code transactions, reflecting a broader industry shift away from traditional debit cards towards modern payment methods.
