Techcombank leads CASA race

28-Jan-2022 Intellasia | Dau tu Chung khoan | 5:02 AM Print This Post

The increase in Current Account Savings Account (CASA) helps banks save costs and raise Net Interest Margin (NIM) in credit activities. Thus, the race for CASA continues to be promoted by banks in 2022.

Nguyen Thanh Tung, deputy general director in charge of the Board of Management of Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) said that by the end of 2021, most of the banks’ business indicators met and exceeded the plan assigned by the general Meeting of Shareholders and the Board of directors (BOD) with the growth and capital mobilisation restructuring following the right direction.

The mobilisation in market 1 reached 1,154 trillion dong, up by 9.5 percent compared to 2020. The average CASA ratio was 32.2%, up by 3.3 percentage points compared to 2020.

Meanwhile, by the end of December 31st 2021, the average outstanding credit of Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) grew by 12.3 percent over 2020, the proportion of outstanding retail loans and small and medium-sized corporate customers was 57%, a positive improvement compared to 2020. The bank’s non-interest income increased by more than 20 percent and the increase in CASA was over 20 percent over the same period of 2020.

The proportion of CASA to total capital in 2021 of VietinBank was recorded at 20%. The bank’s separate pre-tax profit met and exceeded the target of 16.8 trillion dong assigned by the general Meeting of Shareholders. The bank aims at a growth rate of 10 20 percent in 2022.

Jens Lottner, general director of Vietnam Technological and Commercial Joint Stock Bank (Techcombank) said that year 2021 was a difficult year for Vietnam, due to the heavy impact of the 4th Covid-19 outbreak. In such challenging context, Techcombank still managed to achieve a record of more than one billion US dollars in pre-tax profit. The operating income in the whole year 2021of Techcombank rose by 35.4 percent and its CASA led the industry with the rate of 50.5%.

Techcombank focuses on digital transformation and investment to meet the needs of a rapidly growing customer base, contributing to further driving the value of e-banking transactions which recorded an impressive increase of 81%.

Techcombank’s total operating income in 2021 was 37.1 trillion dong, up by 35.4 percent over the same period of 2020, thanks to the strong development from both interest income and income from service activities.

The interest income of Techcombank was 26.7 trillion dong, up by 42.4 percent over the same period of 2020, led by the NIM of 5.6 percent (compared to the 4.9 percent in 2020). This is partly thanks to the bank’s CASA ratio which is currently the highest in the market.

The service income of Techcombank also grew by 42.4 percent to 7.8 trillion dong in 2021 with the contribution of all the key fees.

Assessing year 2022, Techcombank was optimistic but still very cautious. The bank said that by maintaining prudent risk management and cost optimisation, investing in people and digitisation, we are well positioned to seize every opportunity when the economy is forecast to have stronger recovery in 2022.

In 2021, the credit of Maritime Commercial Joint Stock Bank (MSB) grew by over 20 percent according to the target granted by the SBV. Combining with an effective capital structure, the bank’s net interest income reached 6.112 trillion dong, up by nearly 30 percent over the same period of 2020, accounting for more than 58 percent in the bank’s total net income.

Notably, the non-interest income of MSB saw a growth of 92 percent compared to 2020 with strong contribution from the increase in the income from service activities, foreign exchange trading and capital contribution and share purchases. The bank’s customer deposits increased by more than eight percent to 94.616 trillion dong, in which the CASA accounted for about 36%, among the market leaders.

Nguyen Hoang Linh, general director of MSB said that the bank targets to increase its pre-tax profit by 30 percent to 6.8 trillion dong, credit growth by 20 percent depending on the SBV’s approval, and total assets of 230 trillion dong.

The strategy to focus on digital transformation and digitisation of the existing bank continues to be accelerated by MSB with the goal of being in the group of banks with the highest CASA in the market in 2022.

 

Category: Finance, Vietnam

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