CEO of TPBank: Positive Outlook for the Banking Sector in 2025

Mr. Nguyen Hung, CEO of TPBank, believes that 2025 will be more favorable, with lower interest rates and stronger economic growth, which will create favorable conditions and bring a positive business outlook for the banking sector.

Reporter: The Lunar New Year of the Snake is approaching. As we approach the new year, looking back at the banking industry's activities over the past year, what are your thoughts?

Mr. Nguyen Hung: The past year was a remarkable one for the banking sector. The government and the State Bank of Vietnam promptly implemented effective macroeconomic management policies, particularly the flexible monetary policy, which stabilized interest rates and tightly controlled inflation, creating a solid foundation for a stable economic environment, thereby facilitating banking activities. Bank credit growth was positive, and the entire banking industry continued to push for digital transformation, which not only enhanced customer experiences but also optimized operational efficiency and reduced costs.

The entire banking sector continues to accelerate digital transformation, not only to enhance customer experience but also to optimize operational efficiency and reduce operating costs.

Alongside these advantages, the banking sector also faces numerous fluctuations and challenges. One of the biggest challenges over the past year has been balancing credit expansion with capital safety. Although credit growth began to show signs of recovery in the last six months of the year, the pace is no longer as strong as before, which has somewhat affected revenue and profit. Additionally, the competition is becoming increasingly fierce, not only in providing financial products and services but also in attracting customers through digital banking channels, which poses significant challenges for banks.

Reporter: Along with the advantages, the banking industry also faced several challenges and fluctuations. What were the key challenges for the banking sector last year?

Mr. Nguyễn Hưng: One of the biggest challenges for the banking industry last year was balancing credit expansion with capital safety. While credit growth in the second half of the year showed signs of recovery, the pace was not as strong as before, which somewhat affected revenue and profit. Additionally, the increasingly fierce competition, not only in providing financial products and services but also in attracting customers through digital banking channels, posed a significant challenge for banks.

Reporter: Forecasts suggest that 2025 will be another challenging year but will also open up many opportunities for both the economy in general and the banking sector in particular. Can you assess the opportunities and challenges the banking industry will face?

Mr. Nguyễn Hưng: As we step into 2025, forecasts indicate that the banking sector will continue to face several challenges and pressures, such as maintaining reasonable interest rates, ensuring bank profitability, and supporting the economy without overly burdening it with high borrowing costs.

On the flip side, 2025 will undoubtedly present many opportunities for the banking industry. With the rapid development of strategic sectors such as Industry 4.0, renewable energy, and sustainable development initiatives, if banks seize the opportunity to invest in these sectors, they can ensure sustainable credit growth. Infrastructure development projects, improving labor productivity, and digital transformation also require significant funding, which banks can provide through suitable financial products.

The personal finance sector also promises strong growth as Vietnam's population remains largely of working age, and the middle class continues to expand. This creates a strong demand for personal financial services such as home loans, consumption loans, investment, and insurance. Banks can leverage this demand to develop consumer credit products, credit cards, and personal financial management services.

Reporter: Given these insights, what is your outlook for the banking sector in 2025?

Mr. Nguyễn Hưng: I believe that 2025 will be more favorable. Interest rates could be lower, and the economy will grow stronger, which will create favorable conditions and bring positive business prospects for the banking sector. If banks can capitalize on the growing demand for credit while effectively managing credit risks and economic fluctuations, they will thrive. Particularly, banks should focus on technological innovation, optimizing customer services, and ensuring credit quality to enhance competitiveness and maintain growth in the new environment.

Reporter: To overcome challenges and seize opportunities in 2025, what preparations has TPBank made?

Mr. Nguyễn Hưng: In 2025, TPBank will continue to implement key strategies to drive growth and expand our scale, while staying ahead of financial market trends and strengthening our competitive position. We are focusing strongly on digital transformation, not only to enhance customer experience but also to optimize operations for greater efficiency. The bank has been investing in advanced technologies such as Artificial Intelligence (AI) and Big Data to improve service quality and provide maximum convenience to our customers.

TPBank is committed to developing new products and services to meet the diverse needs of our clients. For individual customers, we offer a wide range of credit products, particularly for consumer loans, home loans, car loans, and credit cards. We also focus on developing savings, investment, and insurance products. For corporate clients, TPBank provides flexible credit packages for small and medium-sized enterprises (SMEs) to support their development and business expansion. Moreover, the bank is continuously expanding sustainable financial products, contributing to building a green banking ecosystem.

Additionally, TPBank places great importance on risk management, ensuring financial safety amidst economic fluctuations. We are improving our non-performing loan management processes and strengthening asset quality control.

Mr. Nguyễn Hưng: TPBank also places a strong focus on building a high-quality workforce and fostering a creative, dynamic work environment. We are building an open, friendly corporate culture that encourages innovation, which helps motivate employees and attract top talent.

With these strategies and directions, TPBank is confident in its ability to continue growing strongly and contributing to the overall prosperity of the economy and society.

Reporter: As a leader in the banking sector, what are your hopes for the new year?

Mr. Nguyễn Hưng: I hope that 2025 will be a year of new opportunities, where we can continue to grow rapidly in a digitalized environment, with sustainable growth and innovative financial solutions bringing greater value to people and businesses. I believe the banking sector will play a crucial role in driving the national economy to a stable and prosperous future.

Reporter: Thank you very much!