TPBank suddenly announced a plan to pay 25% dividends in cash and shares at the Shareholders' Meeting

On the morning of April 23, Tien Phong Commercial Joint Stock Bank (TPBank - HOSE: TPB) successfully organized the 2024 Annual General Meeting of Shareholders (AGM). Report on business results in 2023, orientation of the year's business plan 2024 and a number of other important contents have been passed with a high approval rate. In 2024, TPBank targets a profit target of 7,500 billion, an increase of 34% and brings good news to shareholders with a planned dividend payment of up to 25%.

Speaking at the opening of the Congress, Mr. Do Minh Phu, Chairman of the Board of Directors, said that in 2023, with the consistent support of shareholders, TPBank has gone through a business year overcoming "headwinds". persistently progressing and growing strongly, marking many positive growth indicators. Total assets increased to more than 350,000 billion VND, exceeding the yearly plan, an increase of 9% compared to 2022. Customer loans exceeded the mark of 200,000 billion VND - an increase of 27%. Total operating income last year exceeded 16,000 billion VND, with the main contribution from net interest income of nearly 12,500 billion VND - an increase of 9%. The bank recorded a pre-tax profit of more than 5,600 billion VND, corresponding to an ROE ratio of nearly 14%. Practically accompanying and sharing difficulties with customers, TPBank has proactively reduced lending interest rates for individual and corporate customers with a total support value of nearly 2,000 billion VND.

Besides, TPBank also achieved impressive growth milestones and record-breaking scale. Demand deposits (CASA) grew by 34%, exceeding VND 47,000 billion, contributing to the 7% growth in deposits of individuals and organizations. This is both a basis for banks to save capital costs and a testament to their ability to ensure continuous and smooth transactions so that customers can feel secure in storing them for consumer payment activities.

Also thanks to the innovative and comprehensive digital banking strategy, the number of TPBank's customers in 2023 has increased to a record level of over 3.5 million, bringing the total number of customers served to exceed 12 million. In just 3 years, TPBank has attracted more than 8.6 million customers, double the total number of customers in the previous 12 years.

In 2023, with the direction, direction and supervision of the new term Board of Directors, TPBank continues to prove its sustainable financial foundation, maintaining its leading position in Vietnam for the second consecutive year in the list of book "The Strongest Bank in Asia Pacific" by The Asian Banker. Rising brilliantly in the Vietnamese banking market with a brand valuation exceeding 425 million USD, TPBank for the first time appeared in the ranking table of the world's leading brand valuation organization Brand Finance, being in the Top 5. The private bank has the highest brand value in Vietnam.

Profit plan to increase by 34%

With the 2024 General Meeting of Shareholders, TPBank approved the 2024 business plan with the goal of diversifying revenue sources, improving asset quality, aiming to bring individual pre-tax profit to VND 7,500 billion, increasing 34% compared to the previous year. To achieve the above goal, total assets are expected to increase by 9.36% to 390,000 billion VND. Loan balance increased by 15.75% to VND 251,821 billion, capital mobilization increased by 3.31% to VND 327,000 billion. With acceleration and the ability to respond to customers on the digital platform, TPBank also aims to strongly grow its customer base, reaching the milestone of 15 million in 2024.

Before the Congress, experts from KB Vietnam Securities Company commented that with efforts to promote bad debt handling in 2023, TPBank will significantly reduce the pressure on provisioning in 2024, this is the basis to determine business goals and sustainable development. In 2024, TPBank aims to control bad debt below 2.5%.

Mr. Do Minh Phu - Chairman of the Board of Directors of TPBank shared: "As one of 14 credit institutions with systemic importance according to the State Bank's evaluation scale, with the spirit of overcoming all limits, solidarity and unity, In 2023, TPBank flexibly responded to complex market developments to continue to reap many achievements. This is the basis for the bank to set higher goals, promote credit growth, and prioritize greener credit for 2024. At the same time, make the best use of the strengths of technology and digital innovation to lead Leading the journey of transforming the banking industry, applying international standard risk management systems to control bad debt and do business effectively."

Realizing the 2024 goal, right in the financial report of the first quarter of 2024, TPBank's business results reached more than 1,800 billion VND, an increase of 5.5% over the same period last year. Total operating income increases by 28% over the same period in 2023, reaching nearly VND 4,700 billion. In particular, with acumen and a good grasp of the market, the securities investment segment has brought significant profits to the bank when income from this segment increased by more than 120% over the same period last year.

25% dividend plan in cash and stocks

One of the notable and surprising points at the Shareholders' Meeting was the approval of the 2023 dividend payment plan (implemented in 2024) at a rate of 25% in cash and shares. The payment source comes from undistributed profits, after setting aside funds according to the audited financial statements.

As one of the next banks to pay high-value dividends in 2024, this is not the first time TPBank brings good news to the bank's shareholders. Previously, in April 2023, TPBank spent nearly 4,000 billion to pay cash dividends to shareholders at the rate of 25% (shareholder owning 1 share received 2,500 VND). The source of payment will be from undistributed profits remaining until 2021, after setting aside funds according to the audited financial statements.

Then, also in 2023, TPBank issued nearly 620 million shares to pay dividends to existing shareholders at a rate of 39.19% from the accumulated undistributed retained profits until 2021 of VND 1,536 billion. , share capital surplus is 2,561 billion VND and 2,102 billion VND is taken from retained profits in 2022.