Third Biggest JS Bank Plans 10 More Branches in 2005

Third Biggest JS Bank Plans 10 More Branches in 2005

The Technological and Commercial Bank (Techcombank), Vietnam’s third largest joint stock commercial bank, plans to open an additional 10 branches nationwide this year to ensure its foothold in the local market as many others have expanded their networks, according to General Director Nguyen Duc Vinh.

The bank plans new branches in Ho Chi Minh City, Vietnam’s economic hub, and some northern provinces such as Bac Ninh, Hung Yen, Vinh Phuc and Lang Son and some other southern provinces.

Techcombank will also provide more value-added services. It is now building a solution for assessing creditworthy of clients basing some criteria such as income, career and knowledge.

Techcombank earned a pre-tax profit of VND104 billion (US$6.62 million) in 2004, a whopping increase of 193 per cent on-year.

Vietnam's healthy economic performance last year (GDP up 7.69 per cent) was a crucial factor in helping the bank attract more deposits and increase loans to businesses and individuals. The local stock market is still underdeveloped after debuting for more than four years.

In 2004 many commercial joint stock banks rushed to raise registered capital and expand networks for benefiting from the local lucrative credit market. Many joint stock banks reported ROE of over 30 per cent last year.
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