TCB's TCBS Reports Q1 Revenue Up 37% on Strong Margin Lending Growth

Overview

Techcombank Securities (TCBS), the securities subsidiary of Techcombank (TCB), reported strong first-quarter 2024 results, with revenue surging 37% year-on-year to VND 2,783 billion and pre-tax profit rising 11% to VND 1,458 billion. The growth was primarily driven by a 68% increase in margin lending revenue, which accounted for over half of total revenue. TCBS also maintained its leadership in corporate bond underwriting and set a full-year pre-tax profit target of VND 7,535 billion, up 18% from 2023.

Key Facts

• Q1 2024 revenue reached VND 2,783 billion, up 37% year-on-year.
• Pre-tax profit was VND 1,458 billion, up 11% year-on-year, though this is the lowest in the last four quarters.
• Margin lending revenue contributed VND 1,228 billion, up 68% year-on-year, representing over half of total revenue.
• Total margin loan outstanding as of March 31 was over VND 44,700 billion, up about VND 1,000 billion from end-2023.
• TCBS led the corporate bond underwriting segment with VND 28,000 billion raised, capturing an 86% market share.
• The company targets full-year 2024 pre-tax profit of VND 7,535 billion, up 18% from 2023, with 19% of the plan achieved in Q1.
• Total assets stood at VND 88,665 billion at quarter-end, up nearly 10% from the start of the year.

What Happened

According to its Q1 2024 financial report, TCBS recorded revenue of VND 2,783 billion, a 37% increase compared to the same period last year. The margin lending business was a key driver, contributing VND 1,228 billion in revenue, which improved by 68% year-on-year and accounted for more than half of total revenue. As of March 31, total margin loan outstanding exceeded VND 44,700 billion, up approximately VND 1,000 billion from the end of last year. The company’s margin-to-equity ratio was about 98%, below the State Securities Commission’s cap of 200%.

TCBS continued to dominate the corporate bond underwriting advisory segment, raising about VND 28,000 billion and holding an 86% market share. In the stock brokerage segment, it ranked third in market share on the Ho Chi Minh City Stock Exchange (HOSE), behind VPS and SSI. After deducting expenses, pre-tax profit reached VND 1,458 billion, up 11% year-on-year, though this marked the lowest profit in the last four quarters. Documents prepared for the annual meeting on April 25 show TCBS targeting full-year pre-tax profit of VND 7,535 billion, an 18% increase from 2023, meaning 19% of the annual plan was completed in Q1.

Market Context

TCB, the parent bank of TCBS, trades on the Ho Chi Minh City Stock Exchange (HOSE) under the ticker TCB. As of April 15, 2026, TCB closed at VND 32, down 0.16%, with a trading volume of 11,497,500 shares. The securities sector in Vietnam has shown resilience, with margin lending activity picking up amid improved market sentiment. TCBS’s results reflect this trend, though the modest profit growth compared to revenue suggests margin compression or higher operational costs. The company’s strong market position in bond underwriting provides a stable revenue stream alongside the more volatile margin lending business.

Strategic Significance

The Q1 results underscore TCBS’s strategic reliance on margin lending as a core revenue driver, leveraging its parent bank Techcombank’s customer base and capital strength. With a margin-to-equity ratio of 98%, the company has room to expand lending further within regulatory limits, potentially boosting future earnings. Its dominance in corporate bond underwriting (86% market share) diversifies revenue and reduces dependence on equity market cycles. For long-term investors, TCBS’s performance is a proxy for retail investor activity and capital market development in Vietnam, with its growth tied to broader economic recovery and regulatory support for securities firms.

What to Watch

• Full-year 2024 earnings results to assess progress toward the VND 7,535 billion pre-tax profit target.
• Quarterly margin loan outstanding figures to monitor growth trends and potential regulatory impacts.
• Market share data in stock brokerage and bond underwriting to evaluate competitive positioning.
• Regulatory updates from the State Securities Commission on margin lending caps or sector policies.
• Techcombank’s (TCB) strategic initiatives that could influence TCBS’s operations or capital allocation.