(Luận văn HV chính sách và phát triển) solutions to improve the quality of capital mobilization at techcombank phuc yen branch

Especially with capital mobilization activities, the bank will mobilize and focus idle capital sources, thereby providing capital to ensure that all production, business and transactions

THANK YOU

After my internship at a teller office of Vietnam Technological and Commercial

Joint Stock Bank (Techcombank Phuc Phuc branch), with the enthusiastic help and

advice from the staff in Techcombank, I finished my paper Graduate internship

report

During the time of studying and studying at the bank, there was only 2 months but

I learned from practical experiences which are very different from the theory of

books on the school chair I would like to express my sincere thanks to the Board

of Directors of Vietnam Technological and Commercial Joint Stock Bank

(Techcombank Phuc Phuc branch), the staff and employees of the bank for creating

favorable conditions for me throughout the practice

I would also like to send a special thank you to Ms Dang Thuy Nhung who

accompanied and took care of the province during the process of completing this

report

During the internship in the bank as well as in the process of completing the report,

because of the limited time and limited experience, it is difficult for me to avoid

mistakes, I hope teachers in the International Training Department give up Pass

and teach me more I look forward to receiving the sincere contributions from the

teachers to improve knowledge and supplement experience to serve the practical

work in the future

Thank you sincerely !

Students practice

TABLE OF CONTENTS

LIST OF ABBREVIATIONS

LIST OF TABLES

FOREWORD

1 The urgency of the topic

In the current trend of globalization and modernization, integration into the region

or the world is an indispensable trend for any country, Vietnam is no exception

The goal of the Party and the State is to fulfill the task of industrialization -

modernization, bringing Vietnam from an agricultural country to an advanced

industrialized country In particular, to perform this important task, which is one of

the prerequisites to contribute to economic growth, the level of economic growth

will depend on the size and efficiency of investment capital

In particular, the system of commercial banks is always the largest financial

intermediary and also the financial intermediary that economic entities transact

most often in any country Important functions such as intermediary payment,

credit intermediaries, banks have made positive contributions to promoting goods

circulation, speeding up payment, capital flow, saving much cost Especially with

capital mobilization activities, the bank will mobilize and focus idle capital

sources, thereby providing capital to ensure that all production, business and

transactions processes are carried out continuously and according to regulations

Production scale has been expanded, promoting import and export activities,

contributing to creating jobs for workers

In order to attract the most efficient capital, the banks must set up a plan to attract

capital efficiently and reasonably However, this work is always affected by many

complex and constantly changing factors, especially in the context that the

economy of the country is facing difficulties in curbing inflation and stability The

economy, in addition to the fierce competition between banks, so the

implementation of the bank's plan to attract capital is facing many difficulties and

obstacles

Therefore, capital mobilization is one of the most important activities of a

commercial bank, not only affecting the bank's business activities but also

affecting the country's economic growth, requiring a large amount of capital

investment to meet current economic needs Thus, raising capital for business will

be put first with commercial banks and Techcombank Phuc Yen is no exception

During my internship at the bank, I realized the importance of raising capital, along

with the knowledge of school training, I learned about the actual situation at

Techcombank Phuc Yen and chose the topic: " Solutions to improve the quality of

capital mobilization at Techcombank Phuc Yen branch ”as the topic of her

graduation thesis report and research

2 Research purpose

- Research the theoretical basis for capital mobilization and efficiency of

commercial banks' capital mobilization in the market economy

- Analyze and assess the status of capital mobilization at Techcombank Phuc Yen

branch

- Proposing solutions to improve capital mobilization efficiency at Techcombank

Phuc Yen branch

3 Research subject and scope

- Subject of the study is the capital mobilization work at Techcombank, Phuc Yen

branch

- Research scope is Techcombank's Phuc Yen branch's activities in 2017, 2018 and

2019

4 Research Methodology

Research methods are mainly used:

- Methods of collecting information

- Statistical and analytical methods

- Information collected through many channels such as financial statements (2017,

2018, 2019), departments of Techcombank Phuc Yen branch, \

- The analytical method uses the collected information, combined with the methods

of comparison, comparison, aggregation of information, thereby making comments

on the capital mobilization picture at Techcombank Phuc Phuc branch

5 Topic structure

The thesis is presented in 3 chapters with the following basic contents

CHAPTER I: THEORETICAL BASIS ON CAPITAL EFFICIENCY

EFFICIENCY OF COMMERCIAL BANKS

1.1 OVERVIEW OF COMMERCIAL BANK

1.1.1 Definition of commercial banks

According to Assoc.Prof Dr Phan Thi Thu Ha: Banking is a type of credit

institution that performs all banking activities and other related business activities

According to the nature and operational objectives, the types of banks include

commercial banks, investment banks, policy banks, cooperative banks and other

types of banks ”

According to Assoc.Prof Dr Le Van Tien “Banking activities are money

trading and banking services with regular content of receiving deposits and using

this money to provide credit and provide payment services maths"

According to Assoc.Prof Dr Phan Thi Cuc “Banks are financial institutions

that provide a list of the most diverse financial services - especially credit, savings,

payment services and performing a variety of financial functions the most

important of any business organization in the economy ”

Within the scope of the essay, the author uses the definition of Assoc Prof Phan

Thi Thu Ha and this definition is used throughout the essay

1.1.2 Roles of commercial banks

1.1.2.1 For commercial banks

Commercial banks have full discretion over the risk This only happens when

banks offer loans to businesses or individuals For example, when individuals want

to borrow money from a bank, the bank will check the borrower's finances,

including income, credit scores, debt levels and other factors The results of this

analysis help the bank assess customers' solvency By eliminating risky customers,

commercial banks reduce the risk of financial losses As a result, loans grow

without any problems, thereby creating a larger source of capital for banks to

continue lending, supporting economic development

1.1.2.2 For customers

Commercial banks are places of deposit - deposits of customers, and use of deposits for profit-making purposes, and interest for customers In addition,

commercial banks ensure loans to reach trusted customers Customers often use

their loans to make big deals, such as buying a home, investing in education and

making expenditures

1.1.2.3 For economy

• Banks are the source of capital for the economy

Commercial banks were born as a key to help those who need capital to get capital

and people with temporary idle capital can earn interest from capital Banks can

also balance capital in the economy to help all economic sectors develop together

Banks will mobilize idle temporary capital from businesses, individuals will then

re-supply to those in need of capital to conduct reproduction with more modern

equipment, create better products have a higher profit The more society

develops, the more capital it needs for the economy No organization can meet it

• Banking is a bridge between businesses and markets

In a market economy, enterprises do not have to produce anything but always have

to answer three questions: what to produce? how to produce ? and for whom?

Means production according to market signals The market requires businesses to

produce products with better quality, better designs, in accordance with the tastes

of consumers In order to do so, businesses must be invested with modern

technology lines, the qualifications of officials and workers must be improved

These activities require businesses to have a large amount of investment capital

big and to meet only the banks The bank will help businesses to implement their

innovations, get quality products, cheap prices, improve competitiveness

• Commercial banks are macroeconomic regulating tools of the State

Commercial banks as the currency center of the whole economy, ensuring the

harmonious development for all economic sectors when participating in production

and business activities, can be said every assignment The Bank's actions have

affected more or less other economic sectors Therefore, the effective operation of

commercial banks through its business operations is really a good tool for the State

to conduct macro-economic regulation

Commercial banks directly contribute to expanding the amount of money supplied

in circulation On the other hand, with the lending of components in the economy,

commercial banks have conducted the direction of cash flows, gathering and

distributing capital of the market, controlling them effectively, ensuring adequate

supply timely enough capital needs for the reproduction process as well as

implementing the role of indirect regulation macro economy

• Commercial banks are the bridge between national finance and international

finance

Commercial banks are intermediaries and bridges to integrate Today, offshore

investment is an important and profitable investment At the same time, countries

need to export goods that they have a comparative advantage and import those they

lack Commercial banks with business operations such as receiving deposits, loans,

guarantees and especially international payment operations, have contributed to

facilitating and promoting foreign trade be expanded and developed

1.1.3 Basic operations of commercial banks

Modern commercial banks operate with three main operations: capital raising operations, capital operations and other intermediaries These three

operations have a close relationship, supporting and promoting each other to

develop, creating a reputation and competitive strength for commercial banks,

which intertwine each other in the process of operation of the Bank , creating a

unified whole in the business operation process of commercial banks

1.1.3.1 Capital raising operations

Chart 1: Capital raising operation

• Deposit receiving operation

This is a business that reflects the activities that the Bank receives deposits from businesses for payment or for the purpose of preserving assets from which

commercial banks can mobilize In addition, commercial banks can also mobilize

idle money of individuals or households deposited in banks with the purpose of

preserving or earning interest on the deposits

• Valuable paper issuance profession

Commercial banks mostly use this service to attract relatively stable and long-term capital, to ensure the ability to invest, to fully provide medium and long-

term credits economy Moreover, this service also helps commercial banks reduce

risks and enhance stability in business operations

Credit institutio

reserve Invest Guarantee

Provide insurance

Invest

• Transactions from other credit institutions

Borrowing service is used frequently by commercial banks to create business

capital for themselves by borrowing credit institutions in the money market and

borrowing from the State Bank in the form of rediscount or secured loans The

loans from the State Bank are mainly aimed at creating a balance in the

management of capital of the commercial bank itself when it cannot balance the

capital on the basis of on-site exploitation

1.1.3.2 Capital-using operations

• Lending operations:

Lending is the most important business of commercial banks Commercial banks borrow to lend, so whether or not to lend is a problem that all commercial

banks have to find ways to solve Normally, profit from lending activities accounts

for 65-70% of total bank profits Lending operations can be classified in several

ways: by short-term, medium-term, long-term loans, by the form of secured loans,

unsecured loans, by the purpose of having loans Loans for real estate, commercial

loans, personal loans, agricultural loans, leasing loans,

• Financial investment operations

In addition to credit operations, commercial banks also use capital mobilized from the population, from economic and social organizations to invest in the

economy in the forms of capital contribution, capital contribution, business

securities and directly earn a return on those investments

1.1.3.3 Other intermediaries

• Payment service: It can be said that the bank is the cashier of the economy

Businesses and economic organizations will not have to waste time when buying

or selling goods and services because the payment will be made quickly and

accurately by banks

• Consulting and brokerage services: Banks act as intermediaries for buying and

selling securities, advising on investors buying and selling securities and real

early stages of banking operations, this operation was simply storing valuable

assets for safety purposes and at this time the sender had to pay, not the bank

Those amounts are only deposits and do not completely play a role as a source of

capital for commercial banks Money at this time is not considered a currency in its

own right because it is not capable of circulating and generating profits

Assoc.Prof Dr Le Van Tien, capital mobilization is a business of the bank where

the bank uses a variety of tools and measures to create capital sources to ensure

that capital mobilization activities are continuously conducted

1.2.2 Characteristics of capital mobilization

• First: Capital mobilization has a direct impact on the size of operations of the

Banks

Capital mobilization has a direct impact on the expansion or contraction of credit, guarantee activities or in payment activities of the Bank Normally,

compared with small banks, large banks have more diversified investment, lending

items, and also the scope and credit volume While small banks limit the scope of

activities mainly in a small area or in a country If the bank's capital capacity is

large, the bank can expand the size of the credit volume, can finance large projects

(on credit scale, on credit terms ) and be ready to meet customers' needs for Bank

services

• Second: The mobilized capital helps the Bank take the initiative in business

In the Bank's capital structure, besides its own capital, there is also mobilized capital, borrowed capital and other capital sources A bank cannot only

operate with own capital and borrowed capital because its own capital accounts for

only a small percentage of the Bank's total capital structure and the borrowed

capital, the Bank must depend on lenders on term, quantity and other costs

Therefore the Bank may miss out on business opportunities Conversely, if the

Bank has a large amount of capital, it will be completely active in its operations

Large capital sources increase the Bank's operational capability, such as

proactively diversifying forms and modes of operation in order to distribute risks

and increase profits, serving the Bank's ultimate goal of safety and profit

• Third: Capital mobilization helps the Bank to improve its position in the market

To ensure the attraction of customers to their transaction relations, the Bank must create trust with customers This is reflected in the willingness to pay

customers The solvency of the Bank is high only when the Bank has a large

available capital On the other hand, the Bank's reputation is reflected in its ability

to lend and invest The Bank can only lend to large, long-term projects if it has a

large and stable capital source - this depends on the Bank's ability to raise capital

• Fourth: The mobilized capital determines the Bank's competitiveness

To be able to win in competition, in addition to having a reasonable competitive strategy, the factor of financial ability always plays the final decisive

role If the Bank has a large available capital source, it is possible to proactively

expand credit relations with economic sectors in terms of size, credit volume,

initiative in lending time and term, even in adjust loan interest rates to attract

customers In addition, the Bank can develop more types New services,

participating in many other activities such as joint ventures and associates

investing in the capital market, in the money market By doing these activities, it

will contribute to dispersing risks, attract more customers, expand market share,

improve the Bank's competitiveness From That will enhance the Bank's business

efficiency

1.2.3 Roles

1.2.3.1 For the whole economy

To promote economic development, it is necessary to gather sufficient capital to focus on a certain purpose In the economy, savings are often small,

small, and the most efficient aggregator is the commercial banks Through capital

mobilization channels, savings transformed into investments contribute to

increasing the efficiency of the economy

For those who need capital: They will have the opportunity to expand investment,

develop production and business from the capital raised by the bank

For those with idle capital The bank's capital mobilization helps them earn

interest, while helping the money always move and turn around

The bank's capital mobilization helps the economy to have a balance of capital,

improve the efficiency of capital use, and have effective investment opportunities

Currently in Vietnam, capital mobilization through commercial banks is still the

main and most important form

1.2.3.2 For business activities of commercial banks

- Capital is the basis for the bank to organize all business activities: in addition to

the required capital, the bank must mobilize from many other sources In other

words, banks borrow to lend, through which capital reflects the potential and

strength of the bank, without capital, the bank can not carry out business

operations

- Capital determines the size of credit operations and other activities of the bank:

- Capital determines the solvency and ensures the bank's reputation on the market

- Capital determines the bank's competitiveness

1.2.4 Classification of actual types of capital mobilization

The overall objective of commercial banks is safety and profitability in business Therefore, the creation of a solid capital source, ensuring the sustainable

development of the bank is essential Each Bank operates in an environment and

specific conditions that will have different fundraising operations Basically,

capital mobilization has three basic operations (i) receiving deposits, (ii) issuing

valuable papers (iii) raising capital via loans

Savings deposit is a form that individuals choose to deposit a certain amount of

money into any bank within a certain period of time Thereby, this individual will

enjoy a savings interest rate corresponding to the term of the deposit The bank will

issue savings books with basic information such as deposit amount, term, interest

rate

Savings deposits have two main forms: term savings and demand savings

1.2.4.2 Valuable papers issued

Valuable papers issued are debt instruments issued by banks to raise capital

in the market This capital is relatively stable to use for a certain purpose The

interest rate of this type depends on the urgency of the capital mobilization, so it is

usually higher than the normal term deposit interest rate Valuable papers include:

promissory notes, bonds, certificates of deposit with face value

1.2.5 Concept of effective capital mobilization

Stemming from the concept of capital mobilization, the author proposes the concept of capital mobilization efficiency as follows: Capital raising efficiency is

the bank's mobilization of capital through effective financial tools and justification

In other words, the bank's capital mobilization activities have been effective,

guaranteed or not

1.3.2 The role of capital mobilization

One of the important roles of commercial banks is to improve the efficiency of

capital mobilization Because capital mobilization is effective, only capital is

available to ensure business activities

1.3.3 Set of criteria for evaluating the efficiency of capital mobilization of

commercial banks

To evaluate the efficiency of capital mobilization, we can divide it into two groups

• The first group reflects the nature of the efficiency of capital mobilization, also

known as the qualitative indicator group

The variety of forms of capital mobilization

The more diverse forms of capital mobilization, the more capital is mobilized, so the form of capital mobilization is one of the criteria to evaluate the

effectiveness of capital mobilization in commercial banks

The diversity is reflected in the number of mobilization tools used by the bank, depending on the characteristics and strategic business goals that each bank

offers its own types of mobilization tools In addition, the diversity of the number

of tools is not enough, but the bank must be more diverse in terms of deposits,

types of money used

Stability and increase of capital

With a stable source of capital, the bank will be proactive in planning and using capital, thereby bringing business efficiency to the bank However, the

bank's mobilized capital will not be highly stable due to the constantly fluctuating

amount of money in and out of the bank Therefore, the bank needs to study the

stability of the capital source so as not to change too much affecting business

performance

In addition to stabilizing capital sources, banks need to continuously increase the

mobilized capital to expand their business Strong and stable growth of capital is a

key factor in deciding whether to lend or invest in the market

Ability to administer deposit interest rates

Interest rates are the top concern of economic entities Depositors want high interest rates; borrowers want low interest rates; As an intermediary, as a bridge for

borrowers and lenders, the bank must have a balanced interest rate to both benefit

the parties and not affect the interests of the bank

The level of convenience of customers

Is assessed through the procedures of depositing, withdrawing money, bank's attached services, whether it saves time and costs of the bank or not

Time to raise capital

It is necessary to be fast and ensure the objectives and plans of the bank so

as to make the capital mobilization activities highly effective and prestige of the

bank

• The second group assesses the ways of raising capital or the group of quantitative

indicators

The size of the capital

Where scale includes stability in terms of volume, growth rate, capital structure and capital management capacity The amount of capital raised reflects

the scale Large scale will create favorable conditions for the bank to expand its

business After mobilizing a large amount of capital, the next thing to consider is

the steady growth The capital of commercial banks is considered to be stable

when capital from the population accounts for a large proportion and takes

advantage of the transaction deposits of economic organizations Growth in scale

of mobilized capital is shown:

Mobilized capital growth rate = Mobilized capital of the previous reporting

period / Mobilized capital of the previous period

on of mobilized capital size and also reflects the fluctuation of capital sources

Increasing capital is a condition for the bank to expand its operation scale, improve

the liquidity and stability of capital

Growth

Demonstrate the ability to grow capital mobilized bank Proportion of>

100% => Large scale, the amount of capital mobilized by the bank this year is

larger than the previous year The continuous expansion of the scale plus the

growth rate will prove the banking activity scale

Capital mobilization structure

In order to evaluate the structure of mobilized capital, it is necessary to evaluate

the proportion of mobilized capital in the total capital:

- Capital structure by term:

Short-term mobilized capital ratio = Short-term mobilized capital / Total mobilized

These three ratios tell us how much of the short-term, medium-term, and long-term

capital is in the total mobilized capital Each type of capital has different

requirements on terms and cost of animation

Capital raising cost

- Deposit interest rates: always a top concern of economic entities, as an

intermediary acting as a bridge between the two subjects, the bank must find a way

to adjust interest rates in the most reasonable way with the parties Deposit costs

are assessed through a system of average deposit interest rates

- Other costs

The cost of capital mobilization is shown by the average mobilizing interest rate,

the average interest rate difference, the profitability of mobilized capital and the

ratio of mobilized cost

Deposit cost = Accrued interest for mobilized capital + Other mobilization

costs

Average mobilizing interest rate = Total interest payable / Total deposits and

borrowings

- Profitability of mobilized capital

Profitability of mobilized capital = Profit after tax/Capital raised

The profitability of capital helps us know how much profit a dollar raised This

indicator is a measure to evaluate the efficiency of capital use

- Rate of capital mobilization cost

Capital mobilization cost ratio = Cost of capital mobilization/Revenue

With this indicator, in order to produce a dollar of revenue, the bank needs to

spend how much money it costs

Some other indicators

In addition to the above main criteria, the quality of capital mobilization is also

assessed through a number of criteria:

- Some other criteria such as: the amount of capital withdrawn ahead of schedule,

the actual term of the capital,

1.4 Factors affecting capital mobilization activities of commercial banks

1.4.1 Objective factor

- Laws and policies of the State

The law is in place to regulate all social relations Specifically, the laws of credit institutions (2010), the Ordinance on Banks, Credit Cooperatives and

Financial Companies (1990), the Law on the State Bank of Vietnam (2010),

The Government has set a national monetary policy and the banking system is an

effective tool for implementation For example, when the economy increased

inflation, the government had a policy of tightening monetary policy by increasing

deposit interest rates to attract money from society, then commercial banks could

mobilize capital more easily

- Domestic political - economic - social situation

This is an objective factor for all economic sectors, not just banking The economy in a state of growth or recession has affected the mobilization of bank

capital in the state of growth, people need a lot of capital to invest in expanding the

scale and equipment

- Psychology, consumption habits of depositors

1.4.2 Subjective factors

- Business strategy of the bank

This is the direction and direction of operations for a bank Each bank has a different business strategy This depends on the strengths, weaknesses, capabilities

and limitations of the bank Business strategies related to raising capital include:

Price policy, deposit interest rates, commission rates and service fees

- Capacity and qualifications of bank officials

- Reputation of the bank

- Banking technology competition

Modern banking technology is far different from before The adoption of computers was a revolution in banking operations Non-cash payment methods will

make banks increasingly associated with social activities Extensive mobilization

network, facilitating depositors Narrow surfing network will make it difficult for

customers with idle money to deposit into the bank, large transaction costs, and

take a long time

CHAPTER 2: CURRENT SITUATION OF EFFICIENCY OF CAPITAL MOBILIZATION AT TECHCOMBANK AT PHUC YEN BRANCH IN THE

2017-2019 PERIOD 2.1 Overview of Techcombank Phuc Yen branch

2.1.1 The process of formation and development

Phuc Yen Branch of Technological and Commercial Bank (NHKT) from a sub-branch of Vinh Phuc Technological and Commercial Bank Branch, upgraded

under Vietnam Technological and Commercial Bank since July 18, 2006, in

accordance with Decree No 479 / NHKT - TCCB dated May 17, 2006 Phuc Yen

Branch of NHKT is headquartered at 256 Hung Vuong street, Phuc Yen town,

Vinh Phuc province with 52 officials and employees arranged according to the

Bank modernization model including: Board of Directors, 6 bureaus potentials and

savings funds are arranged in the town

2.1.2 The functions that Branch performs are:

Mobilizing capital from socio-economic organizations, businesses in the locality through savings accounts, current accounts

Investing and lending short, medium and long term, entrusted financing, guarantee

for businesses and residents

Advice on financial and monetary field

Implementing other banking services

2.1.3 Organizational structure

After many years of establishment and development, Vietnam Technological and Commercial Joint Stock Bank - Phuc Yen branch has only grown from a small

transaction office to a branch with 6 departments

Figure 1.1: Organizational structure of Vietnam Technological and Commercial

Joint Stock Bank - Phuc Yen Branch including

(Source: Administration Department, Techcombank - Phuc Yen Branch)

Personal and corporate transaction offices

Credit administration department Risk management room

Treasury management and services department

Personal customer service department

Corporate customer service

department Fincancial planning division

MANAGER

Customer room: is a room with the task of dealing directly with customers, taking care of customers, developing banking products and services such as

exploiting capital in VND and foreign currencies to perform lending operations,

discount, guarantee NH To advise the Executive Board to manage capital, and

directly coordinate with other professional departments

Accounting Department: is a professional department that conducts direct or indirect transactions with customers, provides banking services related to payment

operations, and processes and records transactions in accordance with state

regulations and of Vietnam Bank for Finance Manage and maintain the

transaction system, computer information at the branch, maintain and maintain the

machine to ensure smooth operation of the network, computers at the branch,

manage cash funds to each teller , performing the task of advising customers on

the use of bank products

Risk and debt management team has problems: It is the advisory and supervision group for the Board of Directors on the risk management work of the

Branch Appraise or re-appraise customers, projects, plans for credit extension,

management and handling of debts

Treasury Treasury Room: is a professional room for safe management of treasury, cash fund management in accordance with the regulations of the State

Bank and Vietnam Bank of Finance; advance and collect money for savings funds,

over-the-counter transaction points, and cash collection and payment for large cash

collection businesses

Administration Department: is a professional department that performs the administration, organization and training of staff, advises the Director about the

organization of the business apparatus and appropriate personnel arrangement

Advise the Director on the legal work

Making reports within the scope of the responsibility of the room

Transaction office: a transaction office is a professional division of the organizational structure of the Branch; have its own seal; implement the

accounting regime and has a balance sheet; performing capital mobilization

operations, lending to all economic sectors; carry out the delivery, preservation and

transportation of cash, precious assets and valuable papers according to the

prescribed regime

Mobilizing deposits and lending of all economic sectors and people in the area in accordance with the current regimes, rules and regulations

2.1.4 Overview of the business situation of the branch period 2017-2019

2.1.4.1 Results of capital mobilization activities of Agribank Bank Luc Ngan

branch in the period of 2017-2019

Table 2: Capital mobilization results of Techcombank - Phuc Yen branch in the

Compared 2019/2018

(+), (-) Percent

Percen atage

1.I Total mobilized

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cm, Numbered + Level: 1 + Numbering Style: I, II, III, … + Start at: 1 + Alignment: Left + Aligned at: 0.63 cm + Indent at: 1.9

cm, Tab stops: Not at 1.27 cm

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Formatted: Right Formatted: Right Formatted: Right Formatted: Right

Source: Techcombank Phuc Yen branch

Through the data table, we can see that the mobilized capital of Techcombank - Phuc Yen Branch increased continuously over the years

Specifically:

In 2017, the total mobilized capital was VND 225,975 million, of which savings deposits always accounted for the largest proportion with 85.34%, besides,

payment deposits also accounted for a high proportion with 11.06% remaining

3.19 % entrusted investment and 0.38% with valuable papers

Figure 3: Techcombank Phuc Yen's capital mobilization activities

Figure 3: Techcombank Phuc Yen's capital mobilization activities

In 2018, the total capital mobilized from banks increased to VND 453,968

million, equivalent to an increase of 43.06% compared to 2017 This mainly came

from an increase in savings deposits With a proportion of 73.91% in 2018, this is

still the main source of capital mobilized by the Bank and has increased by 58.94%

173,704

275,910

335,556

0 50,000 100,000

Formatted: Font: (Default) Times New

Roman, 14 pt

compared to 2017 In addition, capital mobilization from entrusted investment

increased slightly by 6.64% compared to 2017 And deposit mobilization for

payment and issuance of valuable papers decreased compared to 2017

The mobilized capital of the branch in 2018 increased by 43.06% compared

to 2017 due to the increase mainly from customers' savings deposits This is true of

the development of the branch as well as most banks now Because the source of

capital deposited in the population is the largest source of money in the idle money

market, because it is the population that is the subject of savings and investment in

the economy However, overall, the mobilized capital still accounts for a small

proportion compared to equity Therefore, strengthening the solution to mobilize

capital from customer deposits is still an issue that the Bank should consider

In 2019, the total mobilized capital increased to VND 453,968 million, of

which deposit of savings kept the highest position, an increase of 21.62%

compared to 2018 In addition, deposits from payments tended to decrease

compared to 2018, down 19.30% In contrast, investment trust and issuance of

valuable papers tended to increase in percentage of capital mobilization as

compared to 2018, up 551% and 1674.2%

The continuous mobilization of capital raised over the years showed that the

Bank's branch increasingly trusted customers However, when the capital is

mobilized, the Bank needs to calculate more carefully and reasonably in the use of

capital to optimize profits to be higher than reality In addition, Phuc Yen

Techcombank branch also needs more solutions to develop capital mobilization

activities more effectively

2.1.4.2 Lending results of Techcombank branch of Phuc Yen in the period of

2017-2019

Table 3: Lending results of Techcombank branch of Phuc Yen in the period of

2017-2019

Unit: million dong

In 2017, total outstanding loans reached VND5068 million, accounting for 85.95% of total loan sales However, the total debt collection amount accounted for

only 84.51% By term, overdue debt accounted for only 1.44% of total lending

By 2018, the explosion of real estate and business activities made the

difference: total loan sales reached 138,186 million dong In this year, overdue

debt only accounted for very low, only 0.27%

In 2019, total outstanding loans continued to increase, increasing from 52.36% to 84.59% Of which, total revenue still accounted for a high percentage

(84.31%) and only 0.27% was the percentage of overdue debt this year Compared

to 2018, this percentage of overdue debt is equal

2.1.4.3 Business results of Techcombamk Bank, Phuc Yen Branch in the

period of 2017-2019

In the period of 2017 - 2019, Techcombank had many important milestones, first of all, the IPO that Techcombank completed has become the largest IPO in the

history of Vietnam's stock market, thereby bringing Techcombank back to into a

bank with market cap in the Top 3 in the market Second, Techcombank is one of

the first two banks of Vietnam to officially join the “10,000 billion Club” when

recording a profit before tax of VND 10,661 billion (2018)

Along with the development of Techcombank, Phuc Yen Techcombank has also

contributed a part of profit Here are some results of the operation of Techcombank

Phuc Yen branch in the period of 2017 - 2019

Table 1: Business results of Techcombank Phuc Yen

2017-2019 period

Unit: million dong

5.312 59.9 4.768 70.6 44.365 89.37

Income from 1.759 19.83 1.136 16.8 2.365 4.76

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service activities Other income 1.796 20.27 849 12.6 2.909 5.87

2 Total

expendit ure

6.983 100 5.863 100 42.086 100

Operating cost 4.593 65.77 4.103 69.98 36.312 86.28 Lending

cost 1.968 28.18 1.236 21.08 3.684 8.75 Other

cost 422 6.05 524 8.94 2090 4.97 Profit

before tax

Fluctuations in total income:

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Figure 1: Total income of Techcombank, Phuc Yen branch

In 2017, the total income was 8867 million In which: interest and similar income account for the largest proportion of 59.9% because this is the main

income in banks, from service activities such as selling insurance through banks

(bancassurance), digital banking, investment banking and asset management,

accounting for 19.83% of the remaining 20.27% from other income In 2018, the

total income is 6753 million VND In particular, interest income and similar

income accounted for 70.6% of total income, up 10.7% compared to 2017 Income

from service activities accounted for 16.8% of total income, down3.03% compared

to 2017 2017 Finally, other income accounted for 12.6% of total income, down

7.67% compared to 2017

In 2019, the total income of VND 49,639 million is quite high compared to two

years ago In particular, loan interest accounted for 89.37%, up 18.77% compared

to 2018 Revenue from payment services accounted for 4.76%, down 12.04%

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compared to 2018 Finally, other income accounted for 5.87% , decreased by

6.73% compared to 2018

The increase in total income in 2019 compared to 2018 and increase in 2017

This increasingly proves that the Bank has used its capital reasonably mainly from

its lending and other payment services

Figure 2: Total cost of Techcombank, Phuc Yen branch

In 2017, the total cost was VND 6,983 million, focusing mainly on operating

expenses and loan costs, accounting for 65.77% and 28.18% Other expenses

accounted for 6.05% of the total cost

In 2018, the total cost decreased to VND 5,863 million, while maintaining a

high level of operating costs and loan costs, accounting for 69.98% and 21.08%, an

increase of 4.21 compared to 2017 with operating costs and declines 7.1% with

loan costs Other expenses accounted for 8.94%, an increase of 2.89% compared to

2017 Total expenses in 2018 decreased compared to 2017

Operating costs Loan costs Other costs 0.00%

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