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Tien Phong Joint Stock Commercial Bank (TPBank – Code: TPB) has just added documents for the 2024 Annual General Meeting of Shareholders. The meeting is scheduled to take place tomorrow (April 23) in Hanoi.
Accordingly, TPBank has added a presentation on the Plan for cash dividend payment and the Plan for charter capital increase in 2024.
Specifically, TPBank proposes to distribute a cash dividend of 5% (1 share receives VND 500) from retained earnings after setting aside funds as of December 31, 2023. According to the bank’s leadership, the payment of cash dividends aims to express gratitude to shareholders who have accompanied the bank in the past time and in consideration of TPBank’s stable, sustainable, and safe business performance.
Thus, TPBank is the 9th bank to announce a plan or has paid cash dividends in 2024. Previously, 8 banks have announced this plan, namely VIB, ACB, HDBank, MB, VPBank, Techcombank, Eximbank, and SHB. Previously, in 2023, TPBank spent approximately VND 3,955 billion to pay cash dividends to shareholders at a rate of 25%, equivalent to VND 2,500/share.
In addition to cash, TPBank also proposes to issue a maximum of 440.3 million new shares to pay dividends to shareholders at a rate of 20% (shareholders owning 100 shares on the record date will receive 20 new shares). The source of implementation is taken from retained earnings after setting aside funds as of December 31, 2023. After the issuance, TPBank’s charter capital will increase by more than VND 4,403 billion, to VND 26,419 billion.
The capital increase will be implemented after approval by the General Meeting of Shareholders. The implementation time will depend on the review and approval process of the competent state management agency and ensure compliance with current legal regulations.
In addition to the dividend payment plan, at this year’s general meeting, TPBank will also submit to shareholders the reports of the Board of Directors, the Supervisory Board, the Executive Board,…
According to the report, in 2023, TPBank’s pre-tax profit did not meet the plan, reaching only VND 5,589 billion, completing 64% of the annual plan. According to TPBank’s leaders, the reason is that in 2023, macroeconomic conditions had many unfavorable factors. The mobilization and lending interest rate levels throughout the system gradually decreased in each quarter, while many business sectors saw a decline in activities, so the economy’s capital absorption capacity was limited. Insurance business declined due to the industry’s crisis and the tightening of regulations by management agencies in the field of life insurance sales. New credit growth faced difficulties due to the impact of the economic situation and policies of management agencies. Bad debts and overdue debts tended to increase rapidly, leading to an increase in provision.
In 2024, TPBank sets a target of pre-tax profit for the separate bank of VND 7,500 billion, an increase of 34% compared to 2023. Total assets are expected to increase by 9.36% to VND 390,000 billion, outstanding loans and corporate bonds to increase by 15.75 % to VND 251,821 billion, capital mobilization to increase by 3.31% to VND 327,000 billion. The bad debt ratio is controlled below 2.5%.
TPBank said that in 2024, it will review and完善 the organizational structure of the system, propose a plan to develop the network in 2024 according to the regulations of the SBV, focus on developing quality human resources, controlling costs, and improving performance. The bank also continues to restructure the Handico Finance Joint Stock Company (Hafic) so that TPBank can have a subsidiary operating in the consumer finance sector.
Regarding the profit distribution plan, the audited financial statements record that TPBank’s pre-tax profit is VND 5,589 billion, and its after-tax profit is VND 4,463 billion. After setting aside funds, the retained undistributed profit is VND 3,697 billion.
Last year, the bank paid a cash dividend of 25% to shareholders. TPBank also distributed stock dividends at a rate of over 39%, increasing the charter capital from VND 15,818 billion to VND 22,016 billion.
