Techcombank, one of Vietnam’s leading private banks, recorded a 20.3% increase in profit before tax in 2024, reaching VND 27.5 trillion ($1.15 billion). This performance was driven by a combination of strong credit expansion, an industry-leading CASA (current account savings account) ratio of 40.9%, and continued investment in digital and artificial intelligence (AI)-driven banking solutions. The bank’s total operating income grew by 17.3%, while its credit book expanded by 21%—outpacing the broader market.

Despite its success, Techcombank operates in an increasingly competitive landscape. Vietnam’s largest state-owned banks—Vietcombank, BIDV, VietinBank and Agribank—also reported record profits, collectively surpassing VND 126 trillion ($4.97 billion) in 2024. Vietcombank alone posted pre-tax earnings of VND 40.4 trillion ($1.69 billion), highlighting the intense rivalry within the sector.

Against this backdrop, Techcombank is differentiating itself through technology-driven innovation, a diversified revenue model and a focus on customer engagement. The bank’s investment in AI and machine learning (ML) has enabled personalised financial services, while its fee-based income from investment banking, wealth management and payments has provided an alternative growth engine beyond traditional lending.  Alexandre Macaire, chief financial officer (CFO) of Techcombank explained how these strategies are shaping the bank’s performance and future outlook.

Strong financial growth amid industry competition

Techcombank’s financial performance in 2024 was driven by an expanding credit portfolio, improved net interest margins and a strong CASA ratio, which collectively contributed to higher profitability. According to Macaire, revenue from lending activities increased by 28% year-on-year, supported by a 21% growth in the bank’s credit book. This outpaced the broader market and reflected Techcombank’s ability to secure a higher share of the State Bank of Vietnam’s (SBV) credit quota allocations.

“Our net interest margin improved by 20 basis points, benefitting from higher liquidity in the market and lower term deposit interest rates,” Macaire said. The bank’s industry-leading CASA ratio—standing at 40.9%—played a crucial role in maintaining its low cost of funding. “With a strong CASA base, we have the flexibility to choose our lending customers, sectors and pricing, giving us a strategic advantage,” he added.

While Techcombank capitalised on favourable liquidity conditions, it also faced headwinds. The termination of a bancassurance distribution agreement impacted the bank’s fourth-quarter revenue. However, Macaire viewed this as a short-term setback that would provide strategic flexibility for future opportunities. Despite this, Techcombank maintained its position as the leading fee income generator among Vietnam’s banks. “We continue to drive more service fees than any other bank in Vietnam, which reflects the intensity and quality of our customer coverage,” he said.

Vietnam’s banking sector remains highly competitive, particularly in deposit mobilisation. Many banks rely heavily on short-term, high-interest term deposits to attract funding, whereas Techcombank’s strategy has focused on increasing CASA balances through customer engagement and loyalty. “Ultimately, CASA is about having a strong customer base and ensuring its loyalty. We have one of the best customer bases in Vietnam, particularly among affluent clients, with over 50% of this segment banking with us,” Macaire said.

The bank’s efforts to deepen customer relationships extended to the merchant segment. In 2024, Techcombank added 1.9 million new customers, including over one million merchant customers. These businesses tend to maintain higher CASA balances, further strengthening the bank’s funding base.

As competition intensifies, Techcombank is leveraging its reputation for professionalism and service quality. “Last year, we became the number one banking brand in Vietnam, according to the NielsenIQ Brand Equity Index. Being recognised as the most valuable established banking brand is a significant achievement for a bank that is only 31 years old,” Macaire noted. This brand strength, combined with continuous product innovation such as Auto-earning, has helped Techcombank sustain its leadership position in CASA and maintain its competitive edge.

Technology and AI as growth enablers

Techcombank has positioned itself at the forefront of Vietnam’s digital banking transformation by investing heavily in AI and data-driven innovation. The bank allocates more than $100 million annually to technology and transformation, a strategy that has given it a competitive edge in customer engagement, payments and wealth management.

“We have probably invested earlier and more resolutely in digital technologies, AI and data than most of our peers,” said Macaire. He estimated that Techcombank remains two to three years ahead of competitors in deploying advanced data technology platforms. This head start has enabled the bank to launch AI-powered personalisation tools that optimise customer engagement and financial decision-making.

A key pillar of Techcombank’s AI strategy is its centralised data architecture, which supports real-time decision-making. “We have a single data brain that consolidates all customer information across the bank. This allows us to deliver highly personalised financial services at scale,” Macaire explained. The system processes around eight billion data points daily and classifies customers based on 8,000 unique attributes—levels of sophistication typically seen in hedge funds that apply ML.

This AI-driven approach has significantly enhanced customer interactions. In 2024 alone, Techcombank delivered one billion pieces of personalised money management advice to its customers. “We are able to determine the best next action for each customer and communicate it through the most appropriate channel, ensuring a seamless and compelling experience,” Macaire said.

Beyond personalisation, Techcombank has integrated AI into various operational areas, including relationship management and customer support. The bank’s AI-powered lead generation tool analyses data to provide relationship managers with actionable insights, improving sales effectiveness. Meanwhile, its AI-driven customer sentiment analysis helps detect potential service issues, allowing the bank to intervene proactively.

Techcombank is also leveraging AI for business expansion. One of its innovative applications involves using image recognition to assess merchant viability. “Our AI models can analyse photos of a shopfront and instantly estimate turnover, business sector and financial needs. This allows us to scale prospecting efforts far more efficiently,” Macaire said.

Recent advancements in generative AI, such as DeepSeek and cost-efficient large language models, are creating new opportunities for Techcombank. “These developments suggest that AI, which was once confined to large data centres, could soon operate on individual devices, including mobile phones. This will empower our employees and customers in unprecedented ways,” Macaire noted.

To ensure it remains at the forefront of AI innovation, Techcombank has prioritised workforce upskilling. “Currently, 16% of our workforce—more than 2,000 employees—are data engineers, data scientists or IT specialists. Last year alone, we trained an additional 1,000 employees in AI and data technologies,” Macaire said.

As Techcombank continues to invest in digital transformation, it is not only enhancing customer experience but also setting new industry standards in Vietnam’s fast-evolving financial landscape.

Diversification beyond lending

While many Vietnamese banks remain heavily reliant on lending as their primary source of income, Techcombank has actively diversified its revenue streams by expanding fee-based services in investment banking, payments and wealth management. In 2024, 25% to 30% of the bank’s income came from fees rather than traditional credit activities.

“Compared to other banks that derive most of their revenue from lending, we have built a strong fee-income foundation,” said Macaire. “This reduces our reliance on credit growth and gives us greater flexibility in navigating market cycles.”

One of Techcombank’s strongest non-lending segments is investment banking, where it has established itself as the dominant player in bond origination. “We are by far the number one in the market, with more than 50% market share in bond origination,” Macaire stated. The bank has also strengthened its position in equity brokerage, where it leads among Vietnamese banks.

Payments and digital transactions have been another key growth area. “Whether it’s digital payments or card transactions, we hold a 15% market share, making us the number one bank in Vietnam for payments,” Macaire noted. Techcombank also claimed to be the first bank in the country to eliminate fees on all banking transactions, a move that disrupted the market and forced competitors to follow suit.

Wealth management is an increasingly important part of Techcombank’s strategy, particularly given its affluent customer base. “We are the largest wealth bank in Vietnam in terms of assets under management,” Macaire said. The bank’s AI-driven hyper-personalisation strategies have played a crucial role in deepening customer relationships and increasing engagement.

Techcombank’s diversification efforts have also extended to insurance. The bank is in the process of raising its stake in its general insurance business to be a subsidiary of the group and is exploring the creation of a life insurance company. “Currently, Vietnam has only one fully domestic life insurer, with most other players operating as foreign joint ventures. Establishing our own insurance  subsidiary will therefore be a significant milestone for us,” Macaire explained.

This broad-based approach to financial services, spanning capital markets, payments, wealth management and insurance, reflects Techcombank’s ambition to evolve beyond traditional banking. By reducing dependency on credit growth and diversifying its income sources, the bank is positioning itself for long-term resilience in an increasingly dynamic financial environment.

Balancing growth with risk management

Techcombank’s strong financial growth has been accompanied by a disciplined approach to risk management, ensuring that expansion does not come at the expense of financial stability. The bank maintains one of the strongest balance sheets in Vietnam, with a Basel II capital adequacy ratio (CAR) of 15.3% and a non-performing loan (NPL) ratio of 1.17%, demonstrating prudent credit risk oversight.

“Our balance sheet strength has always been a fundamental pillar of our business model,” said Macaire. “If you look at all banks in Vietnam through the lens of capital adequacy, funding, liquidity and credit quality, Techcombank arguably has one of the strongest balance sheets in the market.”

Vietnam’s banking sector operates under a regulatory framework that imposes credit growth caps on individual banks. However, Techcombank has consistently received a higher-than-proportional share of the SBV’s credit quota, allowing it to expand lending beyond its 4% market share of total banking assets. “Because of our strong capital position and prudent risk management, we are able to secure a larger credit quota allocation than our asset size would suggest,” Macaire noted. In 2024, this enabled the bank’s credit book to grow by 21%, significantly above the industry average.

While lending remains a core business, Techcombank’s diversified income model helps mitigate risks associated with credit exposure. “Unlike some of our competitors, we are not overly reliant on lending. Around 25% to 30% of our income comes from fees, which means we are less affected by fluctuations in credit demand,” Macaire explained. He also highlighted the bank’s ecosystem strategy, which aims to drive even greater non-lending revenue by integrating beyond-banking services into its offerings.

The macroeconomic environment remains uncertain, with global interest rate trends, inflationary pressures and geopolitical factors creating potential volatility. However, Macaire expressed confidence in Techcombank’s ability to navigate these risks. “Irrespective of what happens with trade disputes, inflation or currency fluctuations, our priority is to provide customers with the certainty that they are banking with one of the safest institutions in Vietnam,” he said.

By maintaining a conservative risk posture while continuing to invest in growth, Techcombank is positioning itself to withstand external shocks and sustain its trajectory as one of Vietnam’s leading private banks.

Sustainability and ESG initiatives

Techcombank has increasingly integrated environmental, social and governance (ESG) principles into its business strategy, recognising the growing importance of sustainability in Vietnam’s financial sector. While the bank accounts for only 4% of the market in terms of assets, it has focused on leading through innovation rather than sheer scale.

“We want to drive changes in behaviour by introducing new products that encourage sustainable practices,” said Macaire. One such initiative was the launch of Vietnam’s first Visa Eco Card, which allows customers to track carbon emissions associated with their spending. “The response exceeded expectations, with more than 200,000 cards issued in just a few weeks,” Macaire noted.

In green financing, Techcombank has been expanding its sustainable credit portfolio. By the end of 2024, the bank’s green loan balances reached VND 15 trillion ($628 million), with a focus on renewable energy and green mobility. “We were also the first private bank in Vietnam to adopt a green bond framework in line with ICMA (International Capital Market Association) international standards and successfully issued green bonds during the year,” Macaire said.

Beyond financial products, Techcombank has made broader social contributions through community engagement initiatives. The bank operates two city marathons in Hanoi and Ho Chi Minh City as part of its commitment to promoting healthier lifestyles. “We are working with authorities to make these the official city marathons,” Macaire revealed. Additionally, the bank launched the Techcombank Community Forest project, planting thousands of trees in one of Vietnam’s most important nature reserves.

Techcombank has also increased its direct financial support to underprivileged communities. “In 2024, we donated around $8 million, marking a 30% increase from the previous year,” Macaire said. This reflects the bank’s efforts to balance commercial success with social responsibility.

As ESG considerations become more central to Vietnam’s economic agenda, Techcombank aims to play a larger role in national sustainability efforts. “We want to be a trusted partner to policymakers in helping Vietnam meet its Net Zero targets,” Macaire said. By combining financial innovation with corporate social responsibility, Techcombank is positioning itself as a leader in sustainable banking.

Future outlook and strategic direction

Techcombank’s growth strategy for 2025 and beyond is centred on three key pillars: AI, sustainability and ecosystem expansion. The bank is looking to deepen its technological capabilities, strengthen its ESG commitments and broaden its financial offerings beyond traditional banking services.

“We want to be Vietnam’s first fully AI-powered bank,” said Macaire. Techcombank has already made significant strides in AI integration, leveraging ML for customer engagement, credit assessment and operational efficiency. “With the rapid advancements in AI, we see opportunities to enhance personalisation, optimise risk management and drive productivity,” Macaire noted. The bank has also been investing heavily in workforce upskilling, with 16% of its employees now specialising in data science and AI technologies.

In addition to AI, sustainability remains a major focus. “We aim to play a bigger role in supporting Vietnam’s transition to a greener economy,” Macaire said. The bank is seeking to expand its portfolio of sustainable finance solutions while working with policymakers to advance the country’s Net Zero targets.

Techcombank is also positioning itself as an ecosystem-driven financial institution by integrating beyond-banking services into its business model. A key component of this strategy is the bank’s planned expansion into the insurance sector. “We are seeking regulatory approval to establish our own general insurance subsidiary and are also exploring the creation of a life insurance business,” Macaire revealed. If approved, Techcombank would become one of the few fully domestic insurance providers in Vietnam, a market currently dominated by foreign companies or foreign-backed joint ventures.

At the macroeconomic level, Vietnam’s financial sector continues to navigate a mix of risks and opportunities. While geopolitical uncertainties and inflationary pressures remain concerns, Macaire expressed confidence in the country’s growth prospects. “The government is targeting 8% gross domestic product growth in 2025, with ambitions for double-digit growth after 2026,” he said. A recovering real estate market, strong domestic consumption and continued foreign investment are expected to support this momentum.

By strengthening its digital capabilities, diversifying its services and maintaining a strong financial position, Techcombank aims to sustain its upward trajectory in an evolving economic landscape.

Opportunities and challenges ahead

Techcombank’s strong financial performance in 2024 reflects its ability to navigate a competitive banking landscape through a combination of credit growth, fee-based income and digital innovation. With a 20.3% rise in profit before tax and an industry-leading CASA ratio of 40.9%, the bank has leveraged its technological investments and customer engagement strategies to maintain a competitive edge.

Beyond financial performance, Techcombank has taken a proactive approach to diversification, reducing its reliance on lending by strengthening investment banking, payments and wealth management. At the same time, it has maintained a disciplined focus on risk management, ensuring strong capital adequacy and asset quality.

However, sustaining this momentum will require careful navigation of multiple challenges. Vietnam’s economic landscape remains subject to external pressures, including inflation, currency volatility and fluctuating global interest rates. Techcombank must also contend with increasing competition from both domestic and foreign banks, particularly in the affluent and small and medium-sized enterprise (SME) banking segments. The recent termination of a bancassurance agreement presents an additional challenge, requiring the bank to build new partnerships or develop its own insurance offerings.

Regulatory constraints, such as credit growth limits imposed by the SBV, could also impact Techcombank’s ability to scale its lending business. While the bank has secured favourable credit quota allocations in recent years, future approvals will depend on broader economic conditions and government policy.

Techcombank’s ambitious expansion into AI-powered banking, sustainability initiatives and beyond-banking services presents both opportunities and risks. Execution will be critical, particularly in ensuring that AI and data-driven services deliver tangible benefits while maintaining customer trust and regulatory compliance.

Looking ahead, Techcombank’s ability to balance growth with prudence, innovation with regulation, and expansion with financial discipline will be key to sustaining its trajectory as one of Vietnam’s most innovative private banks.