According to the Qualification Examination Committee for Shareholders, as of 8:55 AM, there were 108 shareholders attending the General Meeting, representing 80.7% of the bank’s shares, meeting the conditions to open the meeting.
Mr. Do Minh Phu, Chairman of the Board of Directors: “The interests of shareholders have never been greater, with some shareholders sharing that it is even more than expected”
Mr. Do Minh Phu, Chairman of TPBank’s Board of Directors, said that 2023 was an extremely difficult year for the banking and finance sector. Demand in many economic sectors fell sharply last year. The banking industry also faced a situation of excess liquidity, while businesses faced a shortage of capital.
However, TPBank has recorded remarkable results, with key indicators improving throughout the year. In 2023, TPBank increased its customer base by more than 4 million, bringing it to 12 million, a growth rate that could take decades to achieve. In 2023, TPBank was recognized by The Asian Banker as having the number one financial strength in Vietnam for two consecutive years. Over the past year, shareholder relations have also been enhanced, ensuring shareholder benefits when TPBank distributed a very high cash dividend of 25% and bonus shares.
Profit in 2023 was lower than the target, reaching only VND5,589 billion. Mr. Phu said that due to the difficult market conditions in the past year, customers incurred quite a large amount of bad debts. Therefore, to ensure operational safety and comply with the regulations of the State Bank, TPBank proactively increased its risk provisions. In the future, when debts are processed and recovered, the bank may be able to reverse the provisions and recognize them as income again. In addition, TPBank has also reduced interest rates to support customers during difficult times, which has had some impact on profits.
The CASA ratio has increased to 24%, providing the bank with a low cost of funds and reflecting customer confidence in the bank.
The Chairman of TPBank said that in 2023, the bank spent nearly VND4,000 billion on cash dividends for shareholders, which is a very large absolute figure. The cash dividend rate of 25% and the bonus share rate of over 39% are efforts made by the entire bank to show gratitude to shareholders who have accompanied the bank for a long time.
“In 2023, the interests of shareholders have never been greater. Shareholder relations are not just about dividends; we also care about our shareholders, increase transparency and are always ready to answer questions from shareholders, both large and small. Many shareholders have also told me that the dividends are greater than they had expected,” said the Chairman of TPBank’s Board of Directors.
Chairman of TPBank Board of Directors
TPBank CEO Nguyen Hung: Profit for the first 4 months reached over VND2,500 billion, the profit plan for this year is very feasible
Mr. Nguyen Hung, CEO of TPBank, said at the General Meeting: “We have almost resolved all the burdens in 2023 by focusing on strengthening our risk provisions. Therefore, these burdens will no longer affect us this year.”
The TPBank CEO also said that in 2024, TPBank is allocated a credit growth “room” of 15.75% by the State Bank of Vietnam. If used effectively, the bank will have an opportunity to request an additional “room” towards the end of the year. “Although we are not a large bank, we have actively participated in programs to reduce interest rates, support priority sectors, and develop low-income housing, which are points that will be evaluated.” TPBank’s credit balance is expected to reach VND252,000 billion by the end of 2024. The balance of bonds has gradually decreased over the past three years, and currently stands at only VND9,000 billion. Bond operations are conducted safely, with no problems arising.
This year, TPBank has set a target of a non-performing loan ratio of less than 2.5%. However, according to Mr. Nguyen Hung, this is a conservative target, and the bank will strive to keep it below 2% because low non-performing loans and low provisions will help the bank ensure profits.
TPBank is also aiming to expand its customer base to 15 million, which means an increase of around 3 million.
“The profit target for 2024 is quite promising at this point. In the first three months of the year, TPBank’s profit reached VND1,829 billion and is expected to exceed VND2,500 billion by the end of April. The non-performing loan ratio is also gradually decreasing,” said Mr. Hung.
Declare a cash dividend of 5%
At the General Meeting, TPBank submitted to the shareholders a proposal to distribute a cash dividend and a stock dividend to increase the charter capital in 2024. This proposal was recently supplemented by the bank just before the General Meeting was held.
Specifically, TPBank proposes to distribute a 5% cash dividend (1 share will receive VND500) from the retained earnings after deducting the necessary funds until December 31, 2023. According to the bank’s management, the payment of cash dividends is to show gratitude to shareholders who have accompanied the bank over the years and in consideration of TPBank’s stable business operations, solid financial position, and safe development.
Last year, TPBank was also one of the first banks to pay a cash dividend of 25%, equivalent to VND2,500 per share. TPBank also distributed a stock dividend of over 39%, increasing the charter capital from VND15,818 billion to VND22,016 billion.
Increase charter capital to VND26,419 billion
TPBank also proposed issuing a maximum of 440.3 million new shares to pay dividends to shareholders at a ratio of 20% (shareholders owning 100 shares on the record date will receive 20 new shares). The proceeds will be taken from the retained earnings after deducting the necessary funds as of December 31, 2023. After the issuance, TPBank’s charter capital will increase by over VND4,403 billion, to VND26,419 billion.
The capital increase will be carried out after the approval of the General Meeting of Shareholders. The implementation time will depend on the review and approval process of the relevant State management agencies and will be in accordance with the current legal regulations.
According to the Qualification Examination Committee for Shareholders, as of 8:55 AM, there were 108 shareholders attending the General Meeting, representing 80.7% of the bank’s shares, meeting the conditions to open the meeting. This year’s TPBank General Meeting was held at the DOJI Tower.
Profit target of VND7,500 billion, an increase of 34%
In 2024, TPBank set a profit target of VND7,500 billion before tax for the standalone bank, an increase of 34% compared to 2023. Total assets are expected to increase by 9.36% to VND390,000 billion, while the outstanding balance of loans and corporate bonds will increase by 15.75% to VND251,821 billion, and mobilized capital will increase by 3.31% to VND327,000 billion. The non-performing loan ratio is controlled at below 2.5%.
In 2023, TPBank’s pre-tax profit did not meet the target, reaching only VND5,589 billion, or 64% of the annual plan. This was due to a number of unfavorable macroeconomic factors in 2023. The deposit and lending interest rates throughout the system gradually decreased quarter by quarter, while many business sectors experienced a decline in activities, resulting in limited capital absorption in the economy. Insurance business declined due to the crisis in the
