What did Techcombank leaders say about TCB’s liquidity spike?

4 min read

According to Techcombank’s Standing Deputy General Director, the recent performance of banking stocks could be a good sign. This shows that TCB has high liquidity and is interested by many investors.

In the past few days, TCB shares of Techcombank appeared many notable developments in price and liquidity.

Accordingly, in October alone, a total of nearly 554.3 million TCB shares were traded among investors with a trading value of nearly 12,725 billion dong (equivalent to nearly 25.2 million shares / day). . At the peak, on October 14, nearly 75 million TCB shares were traded with a value of nearly 1,704 billion dong, the highest level since being listed on HOSE.

Along with the record liquidity, the market price of TCB also fluctuated continuously. Specifically, after rising to the highest level since January 2020, TCB’s market price has dropped deeply in the past 5 trading days with a total decrease of 11%.

Closing on October 30, TCB’s market price stopped at 21,350 dong / share, down 9% compared to the end of 2019 but still up nearly 18% compared to the end of July.

Lãnh đạo Techcombank nó gì về đột biến thanh khoản của cổ phiếu ngân hàng - Ảnh 1.

TCB stock movements from the beginning of the year to the present. (Source: VnDirect).

Sharing about bank share developments over the past time, at the investor meeting and business results update for the first 9 months of the year, Mr. Phung Quang Hung, Standing Deputy General Director of Techcombank, said that there are Probably a good sign.

“We always want TCB shares to be highly liquid and interested by many investors. Therefore, this is probably a good sign”, Mr. Hung said.

Answering questions to shareholders about the reason why the bank has the leading financial indicators in the industry but its stock valuation is still low, Techcombank’s leaders believe that stock prices are decided by the market.

According to Mr. Hung, shares of a bank will be highly valued by the market when owning a stable growth in the long term, not just 1-2 years. Therefore, the management board will focus on developing the bank towards sustainable growth. At that time, the market will be recognized and the true value of Techcombank will be more fully and properly reflected.

Talking about the plan to list shares on international markets, Mr. Hung said that it is definitely an option and Techcombank will consider this option at an appropriate time.

“When the international listing of shares is good for both banks and shareholders, the bank leaders will consult with them”, Mr. Hung said.

Lãnh đạo Techcombank nó gì về đột biến thanh khoản của cổ phiếu ngân hàng - Ảnh 2.

Mr. Phung Quang Hung, Standing Deputy General Director of Techcombank.

Regarding Techcombank’s business results, the first 9 months, pre-tax profit of banks reached nearly 10,700 billion dong, up 20.9% over the same period in 2019, equivalent to 82.4% of the plan that the AGM. East passed. Profit after tax reached VND8,600 billion, up 20.6%. The rate of return on total assets in the last 12 months was 3.0%.

By the end of the third quarter, the total bank assets were at nearly VND 401,500 billion, up 9.2% compared to September 30, 2019 and up 4.6% from the end of 2019 goods is 279,400 billion dong, up 14.4% over the same period last year and 8.3% compared to the end of 2019.

Customer deposits as of September 30, 2020 reached VND 252,600 billion, an increase of 9.2% compared to September 30, 2019. Demand deposits (CASA) increased by 22.2% compared to the end of 2019, at 97,500 billion VND. Meanwhile, term deposits reached 155,100 billion, up 2.4%. As a result, the CASA rate at the end of the third quarter of 2020 will reach 38.6%, higher than the 34.5% at the end of 2019.

According to Techcombank leaders, bank profits are still growing well despite the impact of the COVID-19 translation thanks to a foundation built many years ago such as free digital banking services, moving assets to customer segments High quality and profitable.

“In the context that Vietnam controls COVID-19 well, Techcombank fully believes it will exceed the 2020 profit plan and continue to grow revenue and profit in the coming year,” said the bank’s leader.

For the capital adequacy ratios, the ratio of loans to total deposits and the ratio of short-term capital to medium-long-term loans of the bank reached 71.9% and 31.1%, respectively, significantly better than with the end of 2019.

As of September 30, 2020, the NPL ratio was kept at 0.6%, lower than the rate of 0.9% on June 30, 2020 and 1.8% on September 30, 2019. NPL coverage is 148% compared to 108.6% on June 30, 2020 and 77.1 percent on September 30, 2019.

The capital adequacy ratio (CAR) at the end of the third quarter under Basel II reached 16.7%, more than double the minimum requirement of Pillar I Basel II (8%) and 15.5% higher at at the end of 2019.

“This represents Techcombank’s capital, allowing the bank to grow highly when the economy changes smoothly and ensure the safety of shareholders’ assets,” said Phung Quang Hung, Standing Deputy General Director. Techcombank shares.

Source: vietnambiz.vn – Translated by fintel.vn