Techcombank's other profit in the first quarter increased dramatically thanks to the sale of its headquarters at 191 Ba Trieu (Hanoi), earning more than 1,700 billion VND with a profit of more than 730 billion VND.

The first quarter consolidated financial statements of Vietnam Technological and Commercial Bank (Techcombank, TCB) said that this bank recorded "other profit" of more than 1,000 billion VND in the first three months of this year, over 2 times higher compared with the same period last year. In which, the activity that accounts for the largest proportion is the liquidation of invested real estates.

Specifically, the income from this activity reached more than 1,775 billion VND, with selling expenses of 1,044 billion VND. Profit from liquidation of invested real estate brought Techcombank more than 730 billion VND, a sudden increase in the first quarter of this year.

Previously, this bank had only one invested real estate, the building 191 Ba Trieu, Hai Ba Trung, Hanoi, which was first recorded in the 2012 audited financial statements.

This property was formerly Tower B of Vincom Center Hanoi project, acquired by Techcombank from Vingroup in late 2011 and then renamed Techcombank Tower. This location has been used by the bank as its headquarters for the past 10 years.

Earlier this year, Techcombank announced they are going to move the bank's head office from 191 Ba Trieu to the Techcombank building at 6 Quang Trung, Hoan Kiem, Hanoi.

The sudden profit from other activities also helped Techcombank's business results partially reduce the decline in the first quarter.

In the first three months of this year, this bank recorded a pre-tax profit of more than VND 5,600 billion, down 17% compared to the same period last year. In which, the most influential item is net interest income - the "breadwinner" of the bank - which decreased by nearly 20% to 6,527 billion dong.

Net profit from services and other activities increased so that Techcombank's total operating income decreased by just over 7%. However, the burden of provision budget and operating costs caused the decline in the profit.

By the end of the first quarter, Techcombank's total assets reached VND 723,500 billion, an increase of more than 3% compared to the beginning of the year. In which, customers’ loans increased by 10.6% compared with the end of last year.

Source: VnExpress