In the context of the global economy facing many difficulties, fluctuations from the international market are creating many challenges for the domestic economic recovery. Accordingly, the domestic banking system is also facing a lot of pressure from the trend of increasing operating interest rates and tightening liquidity of central banks around the world.
In 2022, commercial banks have been significantly affected by the above trend, especially lending activities when the cost of capital is higher, causing the NIM (net interest income) of the whole system to decrease.
In the context of a global high interest rate environment, less abundant systemic liquidity and negative sentiment in the real estate and bond markets were the factors driving the decline in CASA balances across the industry. Customers tend to reduce cash holdings for investment or spending, and increase opening savings accounts.
However, in the context of general difficulties, banks that are flexible with the market will have business advantages, especially in finding new growth drivers.
In the face of market fluctuations, Techcombank has drastically shaped and found the right direction to not only support growth in 2022, but also create a buffer to be ready to overcome challenges that may come in the future. .
In 2022, in the context that the growth rate of capital mobilization in the whole industry decreased for the 4th year in a row, reaching only ~6% (estimated by the bank’s analysis department), Techcombank still recorded high growth in this target. Specifically, as of December 31, 2022, the total deposit balance at Techcombank reached about VND358,400 billion, up 13.9% over the same period last year. In which, term deposits reached VND 225,900 billion, up 44.9% over the same period and the balance of demand deposits (CASA) reached VND 132,500 billion.
In this context, the strong growth of the term deposit balance at Techcombank, especially in the fourth quarter, which increased by 32.3% compared to the previous quarter, showed the decisiveness of the Bank’s action plan. ensure domestic capital when borrowing costs from the international market are affected by double effects (due to the influence of interest rates and exchange rates). Along with that, the deposit balance also shows the high trust of customers in the brand and safety of the system, as well as the operation of Techcombank.
The record of positive deposit growth last year also laid the foundation for credit growth in 2023, when capital mobilization by banks is forecast to face many difficulties.
With the sharp increase in term deposit balance last year, as of December 31, 2022, Techcombank’s short-term capital ratio for medium-long-term loans was only 28.8%, much lower than that of Techcombank. new limit of 34% according to regulations of the State Bank (effective from October 1, 2022).
Total assets of the bank reached 699.0 trillion dong as of December 31. 2022, up 22.9% over the same period last year. The credit portfolio continued to be shifted from large corporate loans to personal loans, minimizing portfolio risk and increasing the Bank’s capital efficiency.
According to the credit rating announced by international organization Moody’s in September 2022, Techcombank is the bank with the highest reputation among banks in Vietnam, with outstanding strengths in capital and profitability. The analyst firm said that Techcombank’s asset quality has been maintained stably even during the most difficult period, which is the covid 2020-2022 pandemic.