Insurance brought in trillions of billions for banks in the first half of the year

The 6-month consolidated financial report of Vietnam Technological and Commercial Bank (Techcombank) shows that income from insurance services reached more than 1,260 billion VND, an increase of 170% over the same period last year. This is Techcombank’s highest income from insurance in the past 5 years.

Accordingly, insurance is one of the driving forces that helped this bank’s net profit from service activities grow more than 70% in the first half of the year, reaching over VND 6,800 billion.

After deducting about VND 248 billion in direct costs, the difference in revenue and expenditure from insurance services reached more than VND 1,000 billion, equivalent to 5.5% of Techcombank’s pre-tax profit in the first half of the year.

Thus, revenue from cross-selling insurance at Techcombank has improved again since the first half of this year. This bank’s insurance sales plummeted in 2023 after the whole industry experienced a crisis of confidence, and there was a slight recovery in the 2024-2025 period.

This result comes in the context of Techcombank promoting the building of its own insurance ecosystem. In October 2024, the bank ended its exclusive cooperation with Manulife and moved to establish an independent ecosystem of two insurance companies operating in the non-life and life sectors.

Last July, Techcombank established the life insurance company Techcombank Life and currently owns 80% of the capital. The bank also holds 68% of Techcom Non-Life Insurance Joint Stock Company (Techcom Insurance), established in 2024.

At Vietnam Prosperity Bank (VPBank), insurance also continues to be the largest source of revenue in the service structure. In the first half of the year, insurance cross-selling revenue reached more than VND 3,540 billion, an increase of nearly 40% over the same period.

Along with the increase of other fee sources, insurance contributed to bringing VPBank’s net service profit to VND 5,555 billion, more than double the same period last year.

The bank spends about VND 1,319 billion on insurance activities. Accordingly, the difference in direct revenue and expenditure from this segment reached nearly 2,222 billion VND, equivalent to 12% of consolidated pre-tax profit.

The insurance segment has maintained a steady growth rate at VPBank in recent years, recording revenue increases of over 30% per year in the period 2023-2026. This bank currently owns nearly 90% of the capital of OPES Insurance Joint Stock Company, operating in the non-life sector. Earlier this year, VPBank also approved a plan to contribute capital to establish a life insurance company.