According to the Voting Qualification Verification Board, at 9:00 AM on April 20, 264 shareholders and shareholder representatives attended the meeting, representing over 77.7% of the voting shares. Therefore, the quorum was met in order to proceed.
Shareholders registering to attend the meeting
Mr. Jens Lottner – CEO of Techcombank: Vietnamese people are becoming increasingly affluent so we will take the lead in the wealth management segment
As the first to report to shareholders on the 2023 business situation and the 2024 plan, Mr. Jens Lottner, General Director of Techcombank, said that 2023 was not an easy year for Techcombank. He said:
“Last year at the meeting, I also shared that 2023 was a challenging year for the banking sector in general, starting the year with challenges, but ending the year with better results.
Techcombank maintained a good condition, with the strongest factors being CASA, net fee income, and other indicators such as ROA and ROE remaining healthy. Techcombank not only generates income from interest but also from fees. Many analysts have also maintained an optimistic view of Techcombank.
Techcombank is a leading bank in real estate lending, bonds, and these segments have all recovered in the past year. The insurance sector is still under pressure, but there are no major concerns. In fact, in the second half of 2023, Techcombank’s insurance sales also increased significantly compared to the beginning of the year.
Techcombank’s credit growth is also much higher than that of rival banks. NIM is also leading the industry. Funding costs have increased slightly but are still much lower than most Vietnamese banks.
Mr. Jens Lottner, General Director of Techcombank, reporting on 2023 results and the 2024 plan
At last year’s Annual Shareholders Meeting, shareholders asked whether CASA would return. In 2023, Techcombank’s non-term deposits increased by more than 30%, especially in the second half of 2023, and the current CASA ratio is close to 40% – making it one of the leading banks. Abundant CASA allows Techcombank to raise capital at preferential rates, facilitating favorable lending.
Techcombank’s NPL is only 1.2%, credit costs are 0.8%, and the provision coverage ratio for NPLs is always above 100%. Techcombank has a large real estate loan portfolio, but we have made the right choices in terms of customers, segments, and how much to lend, which has helped us manage effectively. Safety ratios are all in line with State Bank requirements, including CAR, LDR, and short-term lending for medium and long-term purposes, etc.
Techcombank continues to pursue its established strategies. The four main pillars of Techcombank’s strategy are CASA 55%, $20 billion in market capitalization, fee income accounting for 30% of total income, and ROE at 20%.
We believe that Vietnam can absolutely achieve a GDP growth rate of 6%. Vietnam has a young population, uses a lot of technology, and is becoming increasingly affluent. As the country gets richer, people will use banks more. We can easily see the changes in big cities like Hanoi and Ho Chi Minh City. By 2030, the living standards of the Vietnamese people will be higher than those of Malaysia, Indonesia, and so on, and they will need better wealth management services. That is why Techcombank is taking the lead in the affluent segment, and will strengthen the wealth management segment together with TCBS.
Following Mr. Jens Lottner’s report, Mr. Nguyen Xuan Minh, Chairman of the Board of Directors of Techcom Securities Company (TCBS), reported to shareholders on TCBS’s operations and the wealth management segment.
Mr. Minh said that TCBS sets a target for 2025: 5 million customers, 5,000 billion VND in profit, 5 billion USD in market capitalization.
He said: As Mr. Jens Lottner analyzed, as Vietnamese people become increasingly affluent, the inevitable trend is that they will diversify their assets, invest, and accumulate wealth, not only in gold, real estate, and savings but also in investment funds, bonds, stocks and many other assets. We started focusing on the middle class and the wealthy, who represent only 20% of the population but account for 80% of the wealth in Vietnam. We will then expand to a broader segment. TCBS is ready to seize the opportunities in Vietnam’s growth in the years to come.
Mr. Ho Hung Anh – Chairman of Techcombank’s Board of Directors: 2024 still poses many challenges, Techcombank sets forth a prudent plan
General Director Jens Lottner said that based on the foundation of 2023 and predictions for 2024, Techcombank’s Executive Board proposes a profit target of 27,100 billion VND for 2024 and is confident that this target can be achieved. The NPL ratio will be controlled below 1.5%, currently this ratio is 1.2%, and Techcombank is also completely confident in achieving this target, which is also a very healthy level compared to its competitors.
Speaking to shareholders at the meeting, Mr. Ho Hung Anh, Chairman of Techcombank, said that 2022-2023 has been a difficult two years for the world and for Vietnam. Techcombank has also faced many difficulties, especially in the areas where TCB is very strong, such as real estate and financial investment. However, TCB has also demonstrated its risk management capabilities. In the bond market, TCB did not allow any bonds to become overdue for interest or principal, ensuring safety for customers. At the same time, investment in technology and data has helped TCB continuously reduce operating costs, creating conditions for TCB to strongly develop in segments that were not previously its strengths, such as SMEs, mass market customers, unsecured lending, and consumer lending. With the support of technology, TCB will develop very rapidly while simultaneously managing risks and costs.
In 2023, we achieved our plan. 2024 still poses challenges, so TCB has put forward a prudent plan. Strengthening and leveraging our strengths and applying data technology will help us enter other segments, other economic sectors effectively, while controlling risks well.
Mr. Ho Hung Anh, Chairman of Techcombank
The profit
