I.

Intro
1.Company name:
Vietnam Technological and Commercial Joint Stock Bank (Techcombank)

2.Industry:
Techcombank is one of the leading joint stock commercial banks in Vietnam, established in 1993. With a

nationwide network of operations, Techcombank provides a wide range of financial and banking

products and services to individuals, businesses, and organisations.

3.History and development:

 Techcombank was established in 1993 under the initial name Vietnam Technological and

Commercial Joint Stock Bank.

 In the early years, Techcombank focused on developing its branch network, expanding its

business operations, and gradually establishing its position in the market.

 From 2000 onwards, Techcombank has accelerated its digital transformation strategy,

modernising its technology and improving service quality.

 In 2018, Techcombank officially listed its shares on the Ho Chi Minh Stock Exchange (HoSE),

becoming one of the first commercial banks in Vietnam to be listed.

  To date, Techcombank has developed into one of the leading commercial banks in Vietnam, with

over 300 transaction points nationwide and millions of customers.

mportant projects:
 2023 - Artificial Intelligence and Machine Learning

Deployment of AI and ML algorithms to recommend personalised products, detect fraud, analyse

credit risk, and automate processes.

Utilising these technologies to gain deeper insights into customer behaviour and optimise

decision-making.

 2022 - Distributed Ledger Technology and Blockchain

Exploring the use of blockchain for cross-border payments, trade finance, and asset tokenization

to enhance efficiency and transparency.

Participating in industry consortia and pilots to drive the adoption of blockchain-based solutions.

 2021 - Data Analytics and Intelligent Banking

Building a robust data analytics and management platform to extract valuable insights that can be

acted upon from the vast amount of transaction and customer data.

Applying advanced analytics and visualisation tools to enhance decision-making, risk

management, and product development.

 5. Business activities:

-Techcombank provides a full range of traditional banking services as well as modern products,

including:

 Retail banking services (accounts, cards, credit, investments, insurance, etc.)

 Corporate banking services (capital financing, cash management, collections, etc.)

 Digital banking and online transactions

 Investment banking and capital market services

6. Market information:
Stock code: TCB

Current share price: 24,100 VND (as of 09/06/2024)

Market capitalization: 125,320 billion VND

II. Financial statement analysis

1. 3 years financial data

 Balance sheet
 *ASSETS

Analysis of 2021 to 2022:

The total assets of Techcombank in 2021 were recorded at 568,728,950, encompassing the entirety

of the company's resource pool, comprising cash, investments, loans, and other assets utilised for

revenue generation and operational support.

Over the period from 2021 to 2022, there was a notable 22.9% increase in total assets, reaching

699,032,544. This substantial growth, close to 23%, indicates Techcombank's successful expansion

of business activities and acquisition of a significantly larger resource base.

The surge in total assets may have been instigated by factors like obtaining more loans and deposits from

clientele, facilitating the bank's loan portfolio growth, investing in new ventures such as branch
 network expansion or product development, acquiring additional financial entities or assets to

enhance market presence, and generating higher retained earnings from core banking functions.

The rapid enlargement of Techcombank's asset foundation signifies the bank's effective resource utilisation

for business expansion and leveraging emerging market prospects. This asset growth also implies an

enhanced ability to attract more funding, be it through debt or equity financing, to sustain expansion

strategies. In essence, the 22.9% surge in total assets from 2021 to 2022 showcases Techcombank's

robust financial standing and its capacity to escalate operational scale during this phase.

Analysis of 2022 to 2023:

By 2022, Techcombank's total assets had escalated to 699,032,544. Progressing from 2022 to 2023, there

was a further 21.6% rise in total assets, culminating at 849,482,012.

This ongoing augmentation in the company's asset pool, albeit at a slightly slower pace than the prior

phase, indicates Techcombank's sustained momentum in operational expansion and resource

deployment.

The drivers behind the 21.6% total assets upsurge during this period may involve continual expansion of

the bank's loan portfolio, capitalising on the expanded resource base to extend more credit to clients,

investments in fresh business endeavours like digital banking platforms or new product diversification,

potential mergers or acquisitions with other financial institutions to bolster market presence and

capabilities, and reinvestment of retained earnings for organic growth and infrastructure

enhancement.

The consistent high growth rate in total assets signifies Techcombank's adeptness in identifying and

leveraging opportunities to further extend business operations. This asset base expansion also hints
 at the bank's ability to sustain access to diverse funding sources encompassing deposits, loans, and

potentially additional capital injections to underpin its growth strategy. On the whole, the 21.6%

increase in total assets from 2022 to 2023 underscores Techcombank's continual prowess in

expanding its resource base and positioning itself for long-term prosperity in the banking sector.

*LIABILITIES

Analysis of 2021 to 2022:

During the fiscal year 2021, Techcombank recorded total liabilities amounting to 475,687,478, representing

obligations to external entities including depositors, lenders, and other creditors against the

company's assets.

In the span of one year, from 2021 to 2022, there was a substantial uptick of 23.1% in total liabilities,

totaling 585,607,578. This surge in liabilities outpacing the 22.9% growth in total assets indicates a

heightened reliance on debt financing by Techcombank to support its expansion endeavours.

The escalation in total liabilities could be attributed to various factors such as securing additional loans or

credit lines from financial institutions, issuing new debt instruments for capital ventures, and

accumulating a larger volume of customer deposits classified as liabilities on the balance sheet.

Moreover, augmenting other payables like accounts payable and accrued expenses contributed to

financing operational expenses and investments.

The disproportionate rise in liabilities relative to assets signifies an increasing leverage for Techcombank,

emphasising a shift towards more debt financing compared to equity for expansion efforts, potentially

exposing the bank to elevated financial risks including heightened interest rate sensitivity, challenges

in refinancing, and solvency concerns if debt levels are not prudently managed.

Analysis of 2022 to 2023:

By the end of 2022, Techcombank's total liabilities had expanded to 585,607,578, and this figure further

surged by 22.5% by the conclusion of 2023, reaching 717,865,947.

The persistent rapid growth in liabilities, slightly decelerating from the previous period, indicates a

continued heavy reliance on debt financing by Techcombank to sustain its expansion activities. The

factors contributing to this 22.5% upsurge in total liabilities from 2022 to 2023 may include securing

additional loans or credit facilities, issuing new debt instruments for capital investments, and

increasing customer deposits to support lending functions.

Furthermore, the escalation in other payables aimed at funding operating costs and investments also

played a role. The consistent growth in liabilities surpassing the growth in assets implies an

escalating dependence on debt financing, potentially exposing the bank to heightened financial risks

like increased interest rate sensitivity, refinancing difficulties, and solvency risks if debt levels are not

managed judiciously.

*Equity

2021 to 2022 Analysis:

In 2021, the total equity of Techcombank amounted to 93,041,472. Total equity embodies the interests of

the shareholders of the company, encompassing both contributed capital and accumulated profits.

During the transition from 2021 to 2022, there was a notable 21.8% escalation in total equity,

reaching 113,424,966.

The consistent augmentation in equity signifies Techcombank's ability to consistently generate profits and

set aside a portion of those earnings to fortify its capital base over this period.

The factors that may have contributed to the 21.8% upsurge in total equity from 2021 to 2022 could

encompass:
  Earnings generated from the fundamental banking activities of the institution, such as net interest

revenue, as well as fees and commissions

 Retention of a significant proportion of the institution's net income to bolster its capital reserves

 Potential issuance of fresh equity, whether through a public offering or private allocation, to

acquire supplementary capital and support the bank's expansion endeavours

 Reassessment of the institution's assets or other alterations in the valuation of its equity

instruments

The expansion in total equity implies that Techcombank succeeded in enhancing its financial stance and

fortifying its capacity to back its business operations and future expansion strategies. The surge in

equity also indicates that the bank managed to uphold a sound equilibrium between debt and equity

financing, a critical element for enduring financial strength and resilience.

2022 to 2023 Analysis:

In 2022, the total equity of Techcombank had surged to 113,424,966. Progressing from 2022 to 2023, the

total equity experienced a further 16.1% advancement, culminating at 131,616,065.

Techcombank has grown 16.1% in equity in the period 2022-2023 albeit at a slightly slower pace

compared to the previous phase, indicating that Techcombank was still able to generate sufficient

profits and retained earnings to build up its capital base.

Sustained profitability stemming from the core banking activities of the bank, such as net interest income,

fees, and commissions Retention of a significant portion of the bank's net profits to further fortify its

capital reserves Potential issuance of new equity, whether through a public offering or private

placement, to secure additional capital for expansion or other strategic ventures.

 Income statement
2021 to 2022:

 Total operating income increased from 37,076,291 in 2021 to 40,527,191 in 2022, a 9.3%

increase.

 Net interest income increased significantly from 26,698,613 in 2021 to 30,289,775 in 2022, a

13.4% increase. This was a major driver of the improvement in total operating income.

 Net profit from service activities also increased from 6,382,240 in 2021 to 8,152,605 in 2022, a

27.7% jump.

However, there were some declines in the trading and investment-related revenue lines:

 Loss/net gain from foreign exchange trading decreased from a gain of 231,416 in 2021 to a

loss of 275,063 in 2022.

 Loss/net gain from trading of trading securities decreased from a gain of 152,305 in 2021

to a loss of 241,845 in 2022.

  Net profit from trading of investment securities decreased from 1,804,408 in 2021 to

425,553 in 2022, a 76.4% drop.

 Operating costs increased from 11,173,395 in 2021 to 13,023,129 in 2022, a 16.5% rise.

spite the declines in trading/investment income, the overall increase in net interest and service fee income

drove total profit before tax up from 23,238,293 in 2021 to 25,567,768 in 2022, an increase of 10.0%.

The outcomes for the fiscal year 2021-2022 reveal encouraging indications for the company's

future potential:

 The robust expansion in net interest income and service fee revenue signifies the effective

performance of the fundamental banking operations, leading to substantial organic growth. This

establishes a sturdy groundwork for the overall profitability of the company.

 The capability to enhance the top-line by more than 9% notwithstanding the hurdles in the

trading/investment sectors implies that the company possesses varied revenue sources and is not

excessively dependent on any single business segment.

 The notable surge in net profit derived from service activities (increasing by 27.7%) suggests the

potential of the company to further broaden its fee-based ventures, known for their stability and

scalability.

vertheless, there exist certain areas of potential concern:

 The reductions in revenues associated with trading and investments, if persistent, may exert

pressure on the overall profitability, given the high-margin nature of these activities.

 The escalation of operating costs by 16.5% surpassed the growth in revenue, potentially

impacting profit margins if not effectively managed.

  Dependence on the growth of net interest income - a shift in interest rates to unfavourable levels

could adversely affect this crucial revenue driver.

 We can see that 2022 will be a difficult year for Techcombank, because of nỏ just (Loss/net gain

from foreign exchange trading) and(Loss/net gain from trading of trading securities) decrease from

gain to loss but the operating costs also higher (higher ís Bad signal coming), ….. but in

overall,Techcombank still have a little growth during this period

 On the whole, the results of 2021-2022 illustrate the company's capacity to expand its core

banking functions, while underscoring the importance of monitoring the more volatile

trading/investment operations and prudently controlling operating expenses. By taking on a fitting

strategic method, the business seems well-prepared to preserve a high level of profitability in the

times ahead. Nonetheless, proactive measures will be essential to mitigate certain risks.

2022 to 2023:

 Total operating income decreased from 40,527,191 in 2022 to 40,061,092 in 2023, a 1.1%

decline.

 Net interest income declined from 30,289,775 in 2022 to 27,691,120 in 2023, an 8.6% drop.
  Net profit from service activities increased from 8,152,605 in 2022 to 8,714,897 in 2023, a 6.9%

improvement.

 The trading and investment-related revenue lines showed mixed performance:

o Loss/net gain from foreign exchange trading improved from a loss of 275,063 in 2022 to a gain of

195,750 in 2023.

o Loss/net gain from trading of trading securities improved from a loss of 241,845 in 2022 to a gain

of 64,620 in 2023.

o Net profit from trading of investment securities increased from 425,553 in 2022 to 925,833 in

2023, a 117.5% surge.

 Operating costs increased from 13,023,129 in 2022 to 13,251,796 in 2023, a 1.8% rise.

 Despite the decline in net interest income, the improvements in service fees and investment-

related income helped mitigate the overall drop in total operating income. Total profit before tax

decreased from 25,567,768 in 2022 to 22,888,228 in 2023, a 10.5% decline.

e outcomes for the fiscal year 2021-2022 reveal encouraging indications for the company's future

potential:

Positives:

The corporation managed to expand its service fee revenue and income from investments, showcasing the

potential for diversification of revenue streams beyond the primary net interest income. The

enhancements in the trading and investment sectors, if maintained, could offer an upside potential

and counterbalance the decreases in net interest income. The somewhat modest 1.8% rise in

operational expenditures implies that the corporation might possess the capacity to handle costs and

safeguard profitability.

Concerns:
The notable 8.6% decrease in net interest income poses a significant challenge that must be tackled, given

its crucial role in driving the fundamental banking operations. Excessive reliance on fluctuating trading

and investment activities to counterbalance the decline in net interest income could introduce greater

earnings volatility. Persistent inflationary forces and the escalating interest rate environment might

exert continuous pressure on both interest income and operational expenses. The worrisome 10.5%

reduction in total pre-tax earnings indicates a troubling pattern that requires reversal to uphold

investor trust.

Potential Outlook:

In the immediate future, the corporation could encounter hurdles in sustaining profit growth unless it can

devise methods to stabilise and enhance its net interest income. Over the long term, the company's

potential hinges on its capacity to further broaden its revenue sources, optimise its cost framework,

and strike an appropriate equilibrium between core banking functions and more high-risk trading and

investment ventures. Effective implementation of strategic endeavours to cultivate stable, fee-

dependent businesses could help counteract challenges from interest rate developments and position

the company for enduring growth. Nonetheless, negligence in addressing the decline in net interest

income and excessive dependence on volatile trading revenue could ruin the overall financial well-

being of the company.

 The net cash flow from operating activities jumped from 12,828,221 in 2021 to 55,468,501 in

2022, a over 330% increase.

 Based on the financial statements, we can see that the year 2022 has seen a sudden increase in

cash flow.

 The dramatic increase in operating cash flow is a very positive sign, as it demonstrates the

company's ability to generate substantial liquidity from its core business activities but it still

decreases in 2023 again showing it not being sustainable in future periods.

 Financial ratio analysis

Phase 1 (2021 to 2022):

Liquidity Ratios:

 Current Ratio: Decreased from 1.23 in 2021 to 1.173 in 2022. This indicates a slight decline in the

bank's ability to meet its short-term obligations, but the ratio is still within a healthy range.

Efficiency Ratios:

 Net Interest Margin (NIM): Decreased from 5.1% in 2021 to 4.9% in 2022. This suggests a slight

compression in the bank's net interest income, which could be due to factors like increased

competition, changes in interest rates, or a shift in the bank's loan portfolio.

 Cost-to-Income Ratio: Increased from 30.2% in 2021 to 32.1% in 2022. This indicates that the

bank's operating expenses grew at a faster pace than its revenue, reducing its operational

efficiency.
  Asset Utilisation Ratio: Declined from 6.5% in 2021 to 5.8% in 2022. This implies that the bank

was less efficient in using its assets to generate revenue compared to the previous year.

 Loan-to-Deposit Ratio: Increased from 101.2% in 2021 to 103.1% in 2022. This shift towards more

loan-based funding could increase the bank's exposure to liquidity and interest rate risks.

verage Ratios:

 Total Debt Ratio: Remained relatively stable, increasing slightly from 83.6% in 2021 to 83.8% in

2022.

 Debt-to-Equity Ratio: Increased from 5.11 in 2021 to 5.16 in 2022, indicating a higher level of

financial leverage.

 Equity Multiplier: Increased from 6.11 in 2021 to 6.16 in 2022, in line with the rise in debt-to-equity

ratio.

 Times Interest Earned Ratio: Decreased from 2.57 in 2021 to 2.10 in 2022, suggesting a decline

in the bank's ability to cover its interest expenses.

 Cash Coverage Ratio: Decreased from 2.86 in 2021 to 2.26 in 2022, indicating a reduction in the

bank's short-term liquidity.

fit Ratios:

 Net Profit Margin: Decreased from 51.86% in 2021 to 45.66% in 2022, reflecting a decline in

profitability.

 Return on Assets (ROA): Decreased from 3.13% in 2021 to 2.92% in 2022, indicating a lower

efficiency in generating profits from the bank's assets.

 Return on Equity (ROE): Decreased from 19.79% in 2021 to 18.01% in 2022, suggesting a

reduction in the bank's profitability relative to its equity.

rket Value Ratios:

 Earnings per Share (EPS): Increased from VND 5,246.22 in 2021 to VND 5,820.83 in 2022,

despite the decline in profitability.

 Book Value per Share: Increased from VND 26,413.39 in 2021 to VND 32,200.03 in 2022,

indicating growth in the bank's net assets per share.

 Phase 2 (2022 to 2023):

uidity Ratios:

 Current Ratio: Increased from 1.173 in 2022 to 1.245 in 2023, indicating an improvement in the

bank's short-term liquidity.

ciency Ratios:

 Net Interest Margin (NIM): Decreased further from 4.9% in 2022 to 3.7% in 2023, suggesting a

more significant compression in net interest income.

 Cost-to-Income Ratio: Increased from 32.1% in 2022 to 33.1% in 2023, indicating continued

growth in operating expenses.

 Asset Utilisation Ratio: Declined from 5.8% in 2022 to 4.7% in 2023, implying a further decrease in

the bank's efficiency in using its assets to generate revenue.

 Loan-to-Deposit Ratio: Decreased from 103.1% in 2022 to 94.4% in 2023, reflecting a shift

towards more deposit-based funding.

verage Ratios:

 Total Debt Ratio: Increased slightly from 83.8% in 2022 to 84.5% in 2023.

 Debt-to-Equity Ratio: Increased from 5.16 in 2022 to 5.45 in 2023, indicating a higher level of

financial leverage.

 Equity Multiplier: Increased from 6.16 in 2022 to 6.45 in 2023, in line with the rise in debt-to-equity

ratio.

 Times Interest Earned Ratio: Decreased significantly from 2.10 in 2022 to 1.11 in 2023,

suggesting a substantial decline in the bank's ability to cover its interest expenses.

 Cash Coverage Ratio: Decreased drastically from 2.26 in 2022 to 0.24 in 2023, indicating a

severe reduction in the bank's short-term liquidity.

fit Ratios:
  Net Profit Margin: Decreased from 45.66% in 2022 to 32.07% in 2023, reflecting a significant

decline in profitability.

 Return on Assets (ROA): Decreased from 2.92% in 2022 to 2.14% in 2023, indicating a lower

efficiency in generating profits from the bank's assets.

 Return on Equity (ROE): Decreased from 18.01% in 2022 to 13.82% in 2023, suggesting a

substantial reduction in the bank's profitability relative to its equity.

rket Value Ratios:

 Earnings per Share (EPS): Decreased from VND 5,820.83 in 2022 to VND 5,181.23 in 2023,

reflecting the overall decline in profitability.

 Book Value per Share: Increased from VND 32,200.03 in 2022 to VND 37,364.27 in 2023,

indicating continued growth in the bank's net assets per share.

III. CONCLUSION

Overall, Techcombank's financial performance exhibited a varied trajectory during the period spanning

from 2021 to 2023. In the initial interval from 2021 to 2022, the institution witnessed a minor decrease

in liquidity, efficiency, and profitability indicators, while sustaining a relatively consistent leverage

status. Conversely, the subsequent stage from 2022 to 2023 displayed a noteworthy decline across

various aspects.

The institution's net interest margin underwent a substantial contraction, the cost-to-income ratio rose, and

asset employment diminished, signalling a deterioration in operational effectiveness. Furthermore, its

leverage metrics, including debt-to-equity ratio and equity multiplier, experienced significant growth,

prompting apprehensions regarding financial jeopardy.

Key profitability measures such as net profit margin, return on assets, and return on equity registered a

notable decrease, indicating a substantial downturn in the overall profitability of the bank.

Notwithstanding the continuous expansion of book value per share, earnings per share dwindled,

illustrating an adverse impact on shareholder value.

It can be seen that the company in the 2021-2022 period seems to decline in all aspects, but by the 2022-

2023 period, everything will become balanced and continue to grow again, so "buying" Techcombank

shares is still a good idea. Sound advice

In summary, the financial performance of Techcombank displayed a distinct downward trajectory in the

2022-2023 period, characterised by declining liquidity, efficiency, leverage, and profitability,

necessitating immediate attention from management to rectify the fundamental issues and rejuvenate

the financial well-being of the institution.

https://docs.google.com/spreadsheets/d/1G_puDgdIOQ417i-WBxz3-YsYFy56t6p7_It2gxXXAuw/edit?gid=0#gid=0

( Link excel balance sheet, income statement,....)

IV. Reference

https://techcombank.com/nha-dau-tu/thong-tin-tai-chinh/bao-cao-tai-chinh-vas

https://www.hsx.vn/Modules/Listed/Web/SymbolView/721

https://banggia.vietstock.vn/bang-gia/hose

https://cafef.vn/

https://s.cafef.vn/hose/tcb-ngan-hang-tmcp-ky-thuong-viet-nam-techcombank.chn