With healthy and sustainable growth, TPBank reports a profit of nearly 5,500 billion VND

At the end of Q3, TPBank (Ticker: TPB) achieved a profit of over 5,460 billion VND, with a healthy 14% growth in lending, and ranked in the Top 100 of Brand Finance with a brand value of 461 million USD.

Effective Business Operations, Comprehensive Digitalization, TPBank's Brand Value Rises to 461 Million USD

TPBank’s business segments have all shown promising growth, contributing to a bright profit picture for the first nine months of the year. In that period, TPBank’s profit reached over 5,460 billion VND, a 10.2% increase compared to the same period last year. Total mobilized capital increased by over 8% compared to the beginning of the year, surpassing the target to reach 342,120 billion VND.

The bank’s operations in the first nine months generated more than 12,900 billion VND in income, a nearly 10% increase compared to the same period in 2023. Net interest income was the main growth driver, continuing a double-digit increase (10%), reaching 9,840 billion VND. The service sector also played an increasingly important role, contributing nearly 2,455 billion VND to the bank’s total income.

Effective operations, coupled with cost-saving measures due to comprehensive digitalization and strict cost management, resulted in a decrease in TPBank's cost-to-income ratio (CIR) to 34%.

TPBank proactively manages risks and ensures coverage of non-performing loans, avoiding negative future impacts. The bank strengthened its provisioning efforts last year, increasing provisions by more than 1.5 times compared to 2023, reaching nearly 3,000 billion VND. As of September 30, TPBank’s Capital Adequacy Ratio (CAR) under Basel III standards (the most rigorous and comprehensive risk management standard in the banking industry) stood at 13%, well above the minimum required Basel III level of 10.5%.

With strong business performance and impressive growth in both value and brand strength, TPBank has been highly praised for its digital transformation efforts and innovative customer applications. The bank has made its second appearance in Brand Finance’s Top 100, with its brand value rising by 8% to 461 million USD, maintaining its position at 23rd place in the Vietnam 100 ranking for 2024.

Credit Growth of 14%

With a strong reputation and abundant liquidity, as well as proactive planning to meet market capital needs, TPBank’s credit outstanding, including customer loans and corporate bonds, reached 247,650 billion VND by the end of Q3, an increase of 14% from the beginning of the year, well ahead of the industry average.

The bank’s lending portfolio spans various priority sectors, including government-backed industries and public investment projects; key infrastructure projects in transportation, agriculture, rural development, and cultural/social infrastructure; and customers involved in essential goods production and fast-moving consumer goods.

TPBank also places special emphasis on small and medium-sized enterprises (SMEs) owned by women, as well as customers in the IT and telecommunications sectors. In the green credit space, TPBank is ready to support companies with green projects, offering a 5,000 billion VND loan package with a 0% interest rate for the first three months.

Enhancing Social Responsibility and Strengthening the Bank's Position

With a clear mission of being a "bank for human life" and a focus on sustainable development for the growth of the community, TPBank continuously makes positive contributions to society through tangible actions. In 2023, TPBank contributed 2,419 billion VND to the state budget, becoming one of the top 10 private banks contributing the most to the state budget that year.

In September, following the severe impact of Typhoon No. 3 (Yagi) in the northern provinces, TPBank, embodying the spirit of "mutual support," donated 2.5 billion VND to help local residents recover from the floods and stabilize their lives.

TPBank was also one of the first banks to launch a program offering up to a 50% reduction in interest payments for existing individual customers affected by the floods caused by Typhoon Yagi, with the program having a total limit of up to 2,000 billion VND.

According to the Ho Chi Minh City Securities Corporation (HSC), the post-Yagi support programs may impact interest income and bank profits. However, TPBank proactively adjusted and balanced its operations to offer suitable support policies while still meeting its business objectives. As a result, TPBank’s net interest margin (NIM) has remained stable at around 4%.