Solutions to improve the quality of capital mobilization at techcombank phuc yen branch

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

THANK YOU

After my internship at a teller office of Vietnam Technological and CommercialJoint Stock Bank (Techcombank Phuc Phuc branch), with the enthusiastic helpand advice from the staff in Techcombank, I finished my paper Graduateinternship 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 ofbooks 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 forcreating favorable conditions for me throughout the practice

I would also like to send a special thank you to Ms Dang Thuy Nhung whoaccompanied and took care of the province during the process of completing thisreport

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 avoidmistakes, I hope teachers in the International Training Department give up Passand teach me more I look forward to receiving the sincere contributions from theteachers to improve knowledge and supplement experience to serve the practicalwork 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 advancedindustrialized country In particular, to perform this important task, which is one

of the prerequisites to contribute to economic growth, the level of economicgrowth will depend on the size and efficiency of investment capital

In particular, the system of commercial banks is always the largest financialintermediary and also the financial intermediary that economic entities transactmost often in any country Important functions such as intermediary payment,credit intermediaries, banks have made positive contributions to promoting goodscirculation, speeding up payment, capital flow, saving much cost Especially withcapital mobilization activities, the bank will mobilize and focus idle capitalsources, thereby providing capital to ensure that all production, business andtransactions 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 attractcapital efficiently and reasonably However, this work is always affected by manycomplex and constantly changing factors, especially in the context that theeconomy 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 creditinstitution that performs all banking activities and other related business activities.According to the nature and operational objectives, the types of banks includecommercial banks, investment banks, policy banks, cooperative banks and othertypes of banks ”

According to Assoc.Prof Dr Le Van Tien “Banking activities are moneytrading and banking services with regular content of receiving deposits and usingthis money to provide credit and provide payment services maths"

According to Assoc.Prof Dr Phan Thi Cuc “Banks are financial institutionsthat provide a list of the most diverse financial services - especially credit,savings, payment services and performing a variety of financial functions themost important of any business organization in the economy ”

Within the scope of the essay, the author uses the definition of Assoc Prof PhanThi 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 banksoffer loans to businesses or individuals For example, when individuals want toborrow money from a bank, the bank will check the borrower's finances, includingincome, credit scores, debt levels and other factors The results of this analysis helpthe bank assess customers' solvency By eliminating risky customers, commercialbanks reduce the risk of financial losses As a result, loans grow

without any problems, thereby creating a larger source of capital for banks tocontinue lending, supporting economic development.

1.1.2.2 For customers

Commercial banks are places of deposit - deposits of customers, and use ofdeposits for profit-making purposes, and interest for customers In addition,commercial banks ensure loans to reach trusted customers Customers often usetheir loans to make big deals, such as buying a home, investing in education andmaking 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 capitaland people with temporary idle capital can earn interest from capital Banks can alsobalance capital in the economy to help all economic sectors develop together Bankswill 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 morecapital 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 toanswer three questions: what to produce? how to produce ? and for whom? Meansproduction according to market signals The market requires businesses to produceproducts with better quality, better designs, in accordance with the tastes ofconsumers In order to do so, businesses must be invested with modern technologylines, 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 theirinnovations, 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 theharmonious development for all economic sectors when participating inproduction and business activities, can be said every assignment The Bank'sactions have affected more or less other economic sectors Therefore, the effectiveoperation of commercial banks through its business operations is really a goodtool for the State to conduct macro-economic regulation

Commercial banks directly contribute to expanding the amount of moneysupplied in circulation On the other hand, with the lending of components in theeconomy, 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 reproductionprocess 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, offshoreinvestment is an important and profitable investment At the same time, countriesneed to export goods that they have a comparative advantage and import those theylack Commercial banks with business operations such as receiving deposits, loans,guarantees and especially international payment operations, have contributed tofacilitating and promoting foreign trade be expanded and developed

1.1.3 Basic operations of commercial banks

Modern commercial banks operate with three main operations: capitalraising operations, capital operations and other intermediaries These threeoperations have a close relationship, supporting and promoting each other todevelop, 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

n Loan Invest Capital

reserve Invest Guarantee

Provide insurance

• Deposit receiving operation

This is a business that reflects the activities that the Bank receives depositsfrom businesses for payment or for the purpose of preserving assets from whichcommercial banks can mobilize In addition, commercial banks can also mobilizeidle money of individuals or households deposited in banks with the purpose ofpreserving or earning interest on the deposits

• Valuable paper issuance profession

Commercial banks mostly use this service to attract relatively stable andlong-term capital, to ensure the ability to invest, to fully provide medium andlong-term credits economy Moreover, this service also helps commercial banksreduce risks and enhance stability in business operations

• Transactions from other credit institutions

Borrowing service is used frequently by commercial banks to create businesscapital for themselves by borrowing credit institutions in the money market andborrowing from the State Bank in the form of rediscount or secured loans Theloans from the State Bank are mainly aimed at creating a balance in themanagement of capital of the commercial bank itself when it cannot balance thecapital 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 Commercialbanks borrow to lend, so whether or not to lend is a problem that all commercialbanks have to find ways to solve Normally, profit from lending activitiesaccounts for 65-70% of total bank profits Lending operations can be classified inseveral ways: by short-term, medium-term, long-term loans, by the form ofsecured loans, unsecured loans, by the purpose of having loans Loans for realestate, commercial loans, personal loans, agricultural loans, leasing loans,

• Financial investment operations

In addition to credit operations, commercial banks also use capitalmobilized 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

• Consulting and brokerage services: Banks act as intermediaries for buying andselling securities, advising on investors buying and selling securities and real

Assoc.Prof Dr Le Van Tien, capital mobilization is a business of the bank wherethe bank uses a variety of tools and measures to create capital sources to ensurethat 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 ofcredit, guarantee activities or in payment activities of the Bank Normally, comparedwith small banks, large banks have more diversified investment, lending items, andalso the scope and credit volume While small banks limit the scope of activitiesmainly in a small area or in a country If the bank's capital capacity is large, the bankcan 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 alsomobilized capital, borrowed capital and other capital sources A bank cannot onlyoperate with own capital and borrowed capital because its own capital accountsfor only a small percentage of the Bank's total capital structure and the borrowedcapital, the Bank must depend on lenders on term, quantity and other costs.Therefore the Bank may miss out on business opportunities Conversely, if theBank has a large amount of capital, it will be completely active in its operations.Large capital sources increase the Bank's operational capability, such asproactively diversifying forms and modes of operation in order to distribute risksand 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 Bankmust create trust with customers This is reflected in the willingness to paycustomers The solvency of the Bank is high only when the Bank has a largeavailable 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 alarge 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 reasonablecompetitive strategy, the factor of financial ability always plays the final decisiverole If the Bank has a large available capital source, it is possible to proactivelyexpand credit relations with economic sectors in terms of size, credit volume,initiative in lending time and term, even in adjust loan interest rates to attractcustomers 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 whichcapital reflects the potential and strength of the bank, without capital, the bank can not carry outbusiness 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 inbusiness Therefore, the creation of a solid capital source, ensuring the sustainabledevelopment of the bank is essential Each Bank operates in an environment andspecific conditions that will have different fundraising operations Basically,capital mobilization has three basic operations (i) receiving deposits, (ii) issuingvaluable papers (iii) raising capital via loans

1.2.4.1 Deposit operation

Payment deposits are a form of raising capital of commercial banks byopening customers an account called payment deposit account This account isopen to customers who are individuals or organizations wishing to makepayments via bank

Savings deposit is a form that individuals choose to deposit a certain amount ofmoney into any bank within a certain period of time Thereby, this individual willenjoy a savings interest rate corresponding to the term of the deposit The bankwill 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 Theinterest 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 papersinclude: 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 theconcept of capital mobilization efficiency as follows: Capital raising efficiency isthe bank's mobilization of capital through effective financial tools andjustification In other words, the bank's capital mobilization activities have beeneffective, guaranteed or not

1.3.2 The role of capital mobilization

One of the important roles of commercial banks is to improve the efficiency ofcapital mobilization Because capital mobilization is effective, only capital isavailable 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, alsoknown as the qualitative indicator group

The variety of forms of capital mobilization

The more diverse forms of capital mobilization, the more capital ismobilized, so the form of capital mobilization is one of the criteria to evaluate theeffectiveness of capital mobilization in commercial banks

The diversity is reflected in the number of mobilization tools used by thebank, depending on the characteristics and strategic business goals that each bankoffers 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 andusing capital, thereby bringing business efficiency to the bank However, the

bank's mobilized capital will not be highly stable due to the constantly fluctuatingamount of money in and out of the bank Therefore, the bank needs to study thestability of the capital source so as not to change too much affecting businessperformance.

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 akey 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 highinterest 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 thebank

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

The size of the capital

Where scale includes stability in terms of volume, growth rate, capitalstructure and capital management capacity The amount of capital raised reflectsthe scale Large scale will create favorable conditions for the bank to expand itsbusiness After mobilizing a large amount of capital, the next thing to consider isthe steady growth The capital of commercial banks is considered to be stable

when capital from the population accounts for a large proportion and takesadvantage 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, improvethe 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 / Totalmobilized capital

Medium-term mobilized capital ratio = Medium-term mobilized capital / Totalmobilized capital

The ratio of long-term mobilized capital = Long-term mobilized capital / Totalmobilized capital

These three ratios tell us how much of the short-term, medium-term, and term capital is in the total mobilized capital Each type of capital has differentrequirements on terms and cost of animation

long-Capital raising cost

- Deposit interest rates: always a top concern of economic entities, as an intermediary acting as a bridgebetween 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 ofcredit institutions (2010), the Ordinance on Banks, Credit Cooperatives andFinancial Companies (1990), the Law on the State Bank of Vietnam (2010), The Government has set a national monetary policy and the banking system is aneffective tool for implementation For example, when the economy increasedinflation, the government had a policy of tightening monetary policy byincreasing deposit interest rates to attract money from society, then commercialbanks could mobilize capital more easily

- Domestic political - economic - social situation

This is an objective factor for all economic sectors, not just banking Theeconomy in a state of growth or recession has affected the mobilization of bankcapital in the state of growth, people need a lot of capital to invest in expandingthe 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 adifferent business strategy This depends on the strengths, weaknesses, capabilitiesand 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 mobilizationnetwork, facilitating depositors Narrow surfing network will make it difficult forcustomers with idle money to deposit into the bank, large transaction costs, andtake 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 asub-branch of Vinh Phuc Technological and Commercial Bank Branch, upgradedunder Vietnam Technological and Commercial Bank since July 18, 2006, inaccordance with Decree No 479 / NHKT - TCCB dated May 17, 2006 Phuc YenBranch of NHKT is headquartered at 256 Hung Vuong street, Phuc Yen town,Vinh Phuc province with 52 officials and employees arranged according to theBank modernization model including: Board of Directors, 6 bureaus potentialsand savings funds are arranged in the town

2.1.2 The functions that Branch performs are:

Mobilizing capital from socio-economic organizations, businesses in thelocality 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, VietnamTechnological and Commercial Joint Stock Bank - Phuc Yen branch has onlygrown 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

MANAGER

Fincancial planning division

Corporate customer service

Risk management room

Credit administration department

Personal and corporate transaction offices

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

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

Transacti

on office: atransaction

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 period of 2017-2019

Unit:

milliondong

cm, First line: 0

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

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

275,910 250,000

Year 2017 Year 2018 Year 2019

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%

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

Y e

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Y e

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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

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(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

Targets

Unit: million dong

Year 2017 Year 2018 Year 2019

Fluctuations in total income:

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10.00%

0.00%

Year 2017 Year 2018 Năm 2019

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 frompayment services accountedfor 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

10.00%

Other costs Loan costs 0.00%

Year 2017

Operating costs Year 2018

Year 2019

Figure 2: Total cost of Techcombank, Phuc Yen branch

In 2017, the total costwas VND 6,983 million,focusing mainly onoperating expenses andloan costs, accounting for65.77% and 28.18% Otherexpenses accounted for6.05% of the total cost

In 2018, the total costdecreased to VND 5,863million, while maintaining

a high level of operatingcosts and loan costs,accounting for 69.98%and 21.08%, an increase

of 4.21 compared to 2017with operating costs anddeclines 7.1% with loancosts Other expensesaccounted for 8.94%, anincrease of 2.89%compared to 2017 Totalexpenses in 2018decreased compared to2017

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In 2019, the total cost continued to increase to VND 42,086 million, the highest

increase still came from operating expenses accounting for 86.28%, an increase of

16.3% compared to 2018 Besides, an expense always accounts for a large

proportion Interest expenses accounted for 8.75%, down 12.33% compared to

2018 In addition, other expenses accounted for 4.97% of the total expenses in

2019

2.1.4.4 The orientation of Phuc Yen Techcombank branch in the coming time

According to the policy of the Party and State, Techcombank in general and

Techcombank in Phuc Yen in particular always try to strictly abide by the

regulations on interest rate, exchange rate frame, etc., and successfully fulfill the

targets to out Also in the coming time, when Phuc Yen was announced as a city

directly under Vinh Phuc province, expanding the scale of the economic area of

the urban area Thereby has built a plan to strive for the following year as follows:

- Capital sources for growth: 35% - 50%

- Outstanding debt growth: 50% - 55%, ensuring the proportion of outstanding loans reaches from 35 - 45% / Total mobilized capital

- Overdue debt: None

- Service income: Equivalent to the average of other banks in the area

- Relations with customers: expanding the size of customers opening accounts to 10 - 20%

- Promote investment trust fund, Foreign currency trading, Increase guarantee; 20% - 30%

- Finance: Profit increased by 20% - 30% to ensure salary payment for employees and a part of the bonus in wages

- Personnel organization: strive for 100% employees with certificates in one of three languages: English, Korean, Japanese