Techcombank: - Temenos

Temenos Case Study
About Techcombank
Vietnam Technological and Commercial Joint Stock Bank (Techcombank) was founded in Hanoi on 27 September 1993 with an initial
registered capital of VND20 billion. That this number now stands above VND3,200 billion (a 160-fold increase or a CAGR of 45%) gives
an indication of the rapid growth that the bank has experienced since its establishment.
Over the last five years, Techcombank has grown deposits, revenue and operating profit faster than any other bank in Vietnam. At the
end of 2008, Techombank was the 7th largest Vietnamese bank by asset size (the 3rd largest Joint Stock Bank), but was the 5th most
profitable in absolute terms, underlining its much higher return on assets .
Major Banks in Vietnam by asset size in 2008 (USDm)
VBARD
VIBD
VB
Vietin
ACB
SCB
TCB
EXIM
MHB
EAB
5000 10,000 15,000 20,000 25000
in USD m
Major banks in Vietnam by asset growth (5 year % CAGR to 2008)
Techcombank’s success has attracted attention outside of Vietnam. In 2005, HSBC took a 10% strategic shareholding in the bank,
which it increased subsequently to 15% in 2007 and then to 20% in 2008 (the maximum permitted by Vietnamese law). The
investment has brought new management expertise to the bank as well as a faster adoption of international banking practices.
At the end of 2008, Techcombank employed 4,041 full time employees across its nationwide network of 169 branches and
transaction offices.
70%
60%
50%
40%
30%
20%
10%
0%
Recent branch opening ceremony
EAB MHB EXIM TCB SCB ACB Vietin VB VIDB VBARD
Source: Company annual reports, Reuters, The Banker Database, broker notes Source: Company annual reports, Reuters, The Banker Database, broker notes
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