TPBank Reports Strong Profit, Predicts Response to TPB Stock

TPBank Reports Profit of Over VND 7,599 Billion, Exceeding 2024 Plan. Will TPB Shares See Positive Reaction Following This Result?

TPBank reports profit of over VND 7,599 billion, exceeding the 2024 target. Image: TPB

Q4/2024 Profit Surge

According to the consolidated financial report for Q4/2024, TPBank recorded a pre-tax profit of over VND 2,136 billion, 3.4 times higher than the same period last year. This is an impressive growth, including:

Service income increased by 42%, reaching nearly VND 909 billion, thanks to the strategy of developing a digital financial ecosystem.
Investment securities income skyrocketed to VND 724 billion, nearly 23 times higher than the same period, becoming the main driver of profits.
Provisions for credit risk decreased by 40%, to only VND 1,190 billion, optimizing business efficiency for TPBank.

For the whole year of 2024, TPBank reported pre-tax profit of VND 7,599 billion, up 36% compared to 2023, exceeding the planned target of VND 7,500 billion.

Notably, despite the financial market facing many challenges, TPBank still maintained a credit growth rate of 18%, with total assets reaching VND 418,028 billion, an increase of 17% compared to the beginning of the year.

TPB Stock Price Movement

From February 17 to February 21, 2025, TPB shares traded within a narrow range, fluctuating between VND 16,850 and VND 17,100 per share.

By the close of February 21, 2025, TPB shares ended at VND 17,000 per share, a slight decrease of 0.58% compared to the previous session.

Liquidity remained high, with nearly 10 million shares traded daily, indicating stable investor interest.

Despite TPBank's outstanding profit announcement, TPB shares have not seen a strong surge. This could be a sign that the market is being cautious, or that the stock has not yet been accurately valued in line with its growth potential.

Valuation and Growth Potential

As of February 21, 2025, TPB shares are being traded with the following financial ratios:

P/E (Price to Earnings Ratio): 6.54 times, reflecting the stock price relative to earnings per share.
P/B (Price to Book Ratio): 1.20 times, indicating that TPB shares are trading near their book value.
EPS (Earnings Per Share): VND 2,616, based on the financial report for the last 4 quarters.
BVPS (Book Value Per Share): VND 14,231, reflecting the bank's solid financial foundation.
ROE (Return on Equity) 2024: 17.27%, showing the bank’s ability to generate profit from shareholders' equity.
ROA (Return on Assets) 2024: 1.57%, indicating the profitability relative to total assets.

Compared to industry averages, TPB's P/E ratio is reasonable, reflecting relatively stable earnings expectations from investors. The P/B ratio of 1.20 times shows that the stock is trading close to book value, not overly priced relative to shareholders' equity. Overall, the financial indicators suggest that TPB has a strong foundation for continued growth, but the current stock price does not fully reflect the bank's growth potential.

Recommendations from Financial Institutions

According to a survey conducted by the reporter, securities firms have a positive outlook on TPB shares:

MB Securities (MBS): Recommends "NEUTRAL," with a target price of VND 21,800 per share, based on expected net profit growth of 22% in 2025.
SSI Research: Provides a target price of VND 19,800 per share, a 19.3% increase from the current price, highlighting TPB's growth potential.
VietinBank Securities (CTS): Recommends "BUY" with a target price of VND 17,400 per share, projecting short-term profit growth of 8.5-11.8%.