Persevering through the challenging 2022, TPBank reports a 30% increase in profit in 2022

In a difficult year in the market, TPBank has shown strong bravery, the ability to stand up to challenges to achieve sustainable growth steps, with asset quality, internal strength and capacity finance is always at the top of the industry.

Persevere through the challenging 2022

2022 is the year the world and domestic economies both face many challenges and difficulties. Inflation is increasing on a global scale, interest rates and the dollar are constantly rising, wars and political conflicts have not shown signs of cooling down, not only has Vietnam's economy been affected much after 2 years of the pandemic COVID-19 which resonated with many adverse developments in the market… has had a strong impact on investor confidence.

Faced with that situation, Tien Phong Commercial Joint Stock Bank (TPBank – HOSE: TPB) has been proactive in business plans, strictly controlling revenue and expenses to suit socio-economic conditions and market movements on the basis of making provisions for risks as prescribed.

With persistent efforts to overcome challenges, in 2022, TPBank's pre-tax profit will reach 7,828 billion VND, equivalent to an increase of about 30% compared to 2021. This profit also comes from the increase in insurance services guarantee and trade finance to increase fee income. In addition, the positive recovery of customers whose debt was extended during the epidemic period also contributed to increasing the bank's revenue. Provisions for risks are also lower than in previous years.

Total assets of the bank recorded an increase of more than 12% over the same period last year, reaching nearly 329 trillion dong. TPBank's total operating income this year reached over 15,600 billion VND, an increase of more than 15.5% compared to 2021. Net profit from services reached about VND 2,700 billion, up nearly 75% over the same period.

In parallel, by adjusting the demand for deposit growth according to the demand for capital use in order to achieve the best efficiency, TPBank's total deposit in 2022 has made great progress when reaching about 289 trillion dong, an increase of 289 trillion VND, more than 10% over the same period. Capital is also used effectively by TPBank with a return on assets (ROA) of about 2%. TPBank's outstanding loan-to-deposit ratio (LDR) is around 85%, TPBank has attracted a large amount of mobilized capital from the population, thanks to the trust and recognition from customers in a strong financial institution.

With good growth results, in recent years, TPBank is always ready to accompany and share with people and customers during difficult times due to the epidemic and uncertain market movements. Not only contributing tens of billions of dong to epidemic prevention activities, TPBank continuously offers many large interest rate support programs and is especially willing to share part of its business profits during the year to stabilize the situation. lending interest rates, supporting people and businesses.  

These impressive breakthrough numbers are the clearest evidence for TPBank's efforts, which have been particularly strong in recent years. Not only making a strong mark on governance, but also constantly digitizing, continuously launching outstanding technology products and services, bringing the pulse and breath of life and personality, making transactions dry finances into a fun, colorful experience. A series of consecutive awards for digital banking by The Asian Banker, IDG Vietnam and AIBP in 2022 have affirmed the bank's prestige and success in comprehensive digital transformation, developing a banking ecosystem. synchronous, friendly and satisfy all the needs of customers.

10 years of steady development, rising to become the strongest bank in Vietnam 2022

Analysts often refer to TPBank as an example of the success of digital transformation, in a substantive and effective way. The profitable results of the past 10 years have made a great contribution of a separate direction, focusing on technology, with a focus on digital banking. From a young bank, in difficult circumstances, with both a lack of capital and a lack of foundation, TPBank has "changed flesh" gradually regaining its form and speeding on the track, bringing profits and total assets of the bank. TPBank has continuously grown over the years. It can be said that digital transformation has "transformed the fate ..." of TPBank, helping the bank from a restructured bank with accumulated losses of trillions to become an efficient bank with ROE. In the last two years, respectively, 22.61% (2021) and 21.48% (2022), respectively, belong to the top TOP in the commercial banking system.

In December 2022, in the ranking of 500 strongest banks in the Asia-Pacific region published by The Asian Banker magazine, TPBank ranked 61st, 143 places higher than last year and surpassing even famous names. such as Vietcombank (ranked 66), MB (ranked 72), Vietinbank (ranked 129), BIDV (ranked 127), Techcombank (ranked 101),... Among Vietnamese banks, TPBank surprised when from 7th place in 2021 to rise to the top in the ranking in 2022 with high scores in many criteria such as capital adequacy ratio, profitability, asset quality, liquidity,... As a bank Currently, the pioneer banks are applying Basel III, ILAAP, IFRS standards, capital adequacy and liquidity indicators are strictly managed by TPBank. Accordingly, the capital adequacy ratio according to Basel III (CAR) at 30/11/2022 reached 12.96 %, much higher than the standard of 8%. NPL ratio is always in the top lowest when strictly controlled at less than 1%.

Mr. Nguyen Hung, General Director of TPBank said: “When implementing these standards at the same time, the pressure on the bank's capital plan in the medium and long term is great, forcing TPBank to plan closely and optimally optimize capital sources, develop effective business plans to ensure the rapid but sustainable development of the bank. The Asian Banker's ratings and recognition accurately reflect the market correlation and are the best recognition for TPBank's continuous efforts in recent years".

In 2022, Vietnam Assessment Report Joint Stock Company (VNR) announced TPBank as one of the 10 most prestigious Vietnamese commercial banks and one of the four most prestigious private banks in 2022. TPBank has maintained its position in this ranking for 4 consecutive years. TPBank is also rated twice as high by Moody's and is among the top in the Vietnamese banking system. TPBank's credit rating was upgraded to Ba3 by Moody's, stable outlook, reflecting Moody's recognition of positive macroeconomic indicators, improved asset quality and good controllability. TPBank's risk and profitability capacity in recent years, affirming the bank's steady progress in 2023 and the following