The Vietnam Technological and Commercial Joint Stock Bank (Techcombank, HoSE: TCB) has announced its financial results for the third quarter and first nine months of 2026, delivering a record pre-tax profit of VND10.4 trillion ($416 million) in the third quarter, up 25.8 per cent year-on-year.
Cumulative pre-tax profit for the first nine months stood at VND28.9 trillion ($1.156 billion), marking a 23.7 per cent increase compared to the same period last year, driven by broad-based revenue diversification. Alongside its stellar financial performance, Techcombank also maintained its position at the top of the banking sector’s brand equity index in the third quarter.
Record quarterly profitability
For the January-September period, total operating income (TOI) rose 17.1 per cent year-on-year to VND45.2 trillion ($1.808 billion), lifting pre-tax profit to VND28.9 trillion ($1.156 billion). In the third quarter alone, pre-tax profit surged 25.8 per cent to VND10.4 trillion ($416 million), marking the highest single-quarter profit in the bank’s history. Return on equity (ROE, trailing 12 months) expanded to 16.3 per cent from 14.4 per cent in the prior-year period, while return on assets (ROA) reached 2.5 per cent.
Net interest income (NII) for the first nine months grew 16.9 per cent to VND32 trillion ($1.28 billion), with third-quarter NII climbing 17.9 per cent to VND11.7 trillion ($468 million). Quarterly net interest margin (NIM) continued its recovery trajectory, edging up to 3.5 per cent from 3.4 per cent in the second quarter. Strategic interest rate adjustments and credit portfolio optimization toward higher-yielding assets effectively offset rising funding cost pressures.
Net fee income surges
A key highlight was Techcombank’s net fee income (NFI), which jumped 40 per cent year-on-year in the first nine months to VND11.8 trillion ($472 million). Third-quarter NFI posted an impressive 44.6 per cent gain to reach VND4.2 trillion ($168 million). Consequently, the contribution of NFI to total operating income rose to 26.2 per cent from 21.9 per cent a year prior, acting as a crucial driver of income diversification amid ongoing NIM headwinds.
Letters of credit (LC), cash management, and payment services provided the largest contribution, at VND4.9 trillion ($196 million), up 136.6 per cent, propelled by the continued expansion of tailored LC solutions.
Insurance fees, covering both bancassurance and insurance subsidiary services, remained a primary pillar of non-interest income, generating VND1.7 trillion ($68 million), up 106.1 per cent year-on-year, with the third quarter of alone contributing VND705.5 billion ($28.22 million).
Card service fees expanded 29 per cent to VND1.5 trillion ($60 million). Foreign exchange and derivative fees rose 27.1 per cent to VND1.1 trillion ($44 million), with the third quarter generating VND430 billion ($17.2 million), up 37.7 per cent, buoyed by heightened corporate hedging demand.
In contrast, investment banking (IB) fee income fell 17.5 per cent to VND2.8 trillion ($112 million). Distribution activity remained robust, though margins experienced pressure from elevated market interest rates. Net fee income from other operations (excluding recoveries from written-off debts) dropped 48.2 per cent to VND872.7 billion ($34.9 million) due to unfavorable market fluctuations, despite a rebound into positive territory during the third quarter.
Operating expenses for the nine-month period reached VND13.8 trillion ($552 million), up 18.7 per cent year-on-year. Third-quarter operating expenses stood at VND5.3 trillion ($212 million), representing a 14.6 per cent quarter-on-quarter and 17.9 per cent year-on-year increase, reflecting headcount expansion, intensified marketing campaigns, and accelerated IT investments. The third-quarter cost-to-income ratio (CIR) stood at 31.9 per cent; well within management’s target threshold.
Provisioning expenses for the first nine months declined 30.5 per cent year-on-year to VND2.5 trillion ($100 million). The trailing 12-month credit cost dropped to 0.4 per cent, or 0.3 per cent when factoring in recoveries from written-off debts.
Credit growth accelerates via infrastructure financing
As of September 30, 2026, Techcombank’s total assets had expanded 16.7 per cent year-on-year to VND1,300 trillion ($52 billion). Credit growth accelerated during the third quarter, driven primarily by project financing for key national infrastructure developments. Including credit granted to national priority projects excluded from standard quota limits, total outstanding credit at the parent bank increased 16.3 per cent year-to-date, while credit growth under the State Bank of Vietnam’s assigned quota stood at 10.7 per cent.
Corporate credit reached VND542.4 trillion ($21.696 billion), up 20 per cent year-to-date and 17.1 per cent year-on-year, driven mainly by disbursements for large-scale national infrastructure projects. The proportion of real estate credit exposure normalized to 29.9 per cent of total credit following a temporary spike in the second quarter.
Retail and small and medium-sized enterprise (SME) credit reached VND419 trillion ($16.76 billion), up 12.7 per cent year-to-date and 22.6 per cent year-on-year. Unsecured lending expanded steadily, led by merchant financing solutions like ShopCash, while SME lending registered positive growth and mortgage balances remained stable.
Customer deposits totaled VND692.1 trillion ($27.684 billion), up 8.4 per cent year-on-year and 4 per cent year-to-date. Current Account Savings Account (CASA) balances, including the Auto-Earning feature, reached VND245.9 trillion ($9.836 billion), accounting for 35.5 per cent of total customer deposits.
Top-tier liquidity, capital adequacy, and asset quality
Techcombank further diversified its capital structure during the third quarter, through substantial long-term fundraising from international financial institutions. Its loan-to-deposit ratio (LDR) improved from 80.1 per cent to 77.7 per cent, while the short-term fund ratio used for medium and long-term loans stood at 27.9 per cent. The Tier 1 capital ratio under Basel II rose to 14.1 per cent, and the overall capital adequacy ratio (CAR) was maintained at 15 per cent; remaining among the highest in the industry.
Regarding asset quality, including the impact of CIC credit bureau data adjustments, the non-performing loan (NPL) ratio stood at 1.36 per cent compared to 1.15 per cent in the previous quarter, largely driven by isolated individual loans outside core lending segments. Excluding the CIC impact, the NPL ratio was 1.26 per cent. The NPL coverage ratio reached 107 per cent, remaining comfortably above the 100 per cent threshold.
Strong momentum across ecosystem subsidiaries
At Techcom Securities (TCBS, HoSE: TCX), third-quarter pre-tax profit reached VND2.152 trillion ($86.08 million), setting a new quarterly record. Nine-month cumulative pre-tax profit reached VND5.708 trillion ($228.32 million), up 13 per cent year-on-year and fulfilling 76 per cent of its annual target. TCBS maintained its lead in corporate bond underwriting, capturing approximately 46 per cent of market share.
Techcom Life, meanwhile, recorded new business premiums of approximately VND652 billion ($26.08 million) in the third quarter and raised its charter capital to VND4.3 trillion ($172 million).
Techcombank ended the nine-month period with 19.1 million customers. Among the 1.8 million new retail customers acquired, 65.3 per cent were onboarded via digital channels. During the quarter, the bank launched the Techcombank OneU loyalty platform and co-hosted the Vietnam Financial Forum (VFF) 2026.
Commenting on the financial results, Mr. Jens Lottner, CEO of Techcombank, said: “Earnings momentum was driven by broad-based revenue streams in the third quarter of 2026, with net interest income rising 17.9 per cent year-on-year to VND11.7 trillion ($468 million) and net fee income surging 44.6 per cent to VND4.2 trillion ($168 million), reflecting disciplined execution and robust risk management. These results demonstrate the increasing strength and diversity of the group’s profit drivers.”
“Insurance operations maintained strong momentum, while the launch of Techcom Wealth further strengthens our financial ecosystem,” he continued. “This comprehensive wealth management solution will support our Private Banking clients across generations to build, preserve, and transfer wealth.
On September 19, Techcombank hosted its second Techcombank Investment Conference, convening international investors, business leaders, and policymakers to explore emerging investment opportunities in Vietnam. The conference highlighted Techcombank’s pivotal role in arranging capital for major national infrastructure projects and serving as a trusted wealth management partner committed to driving sustainable prosperity.”
Google translate