TPBank unexpectedly announced a plan to pay cash dividends

Tien Phong Commercial Joint Stock Bank (TPBank – HOSE: TPB) has just supplemented the documents for the 2025 Annual General Meeting of Shareholders (AGM).

Accordingly, the bank has added a proposal on the plan to pay cash dividends and the plan to increase charter capital in 2025.

The Board of Directors submits to the AGM the plan to pay cash dividends in 2025 after considering that the Bank's business operations are stable, have a long history of safe and healthy development, and to increase benefits for shareholders who have accompanied the Bank over the past time.

TPBank proposes to pay a 10% cash dividend (1 share receives 1,000 VND) from undistributed profits after setting aside funds as of December 31, 2024, according to the Bank's audited consolidated financial statements for 2024. After being approved by the General Meeting of Shareholders, the Board of Directors will decide on the specific implementation time, ensuring compliance with regulations.

In addition to cash, the Board of Directors also proposed to issue a maximum of more than 132 million shares to pay dividends to shareholders at a rate of 5% (shareholders owning 100 shares on the last registration date to exercise their rights will receive 5 new shares). The source of implementation is taken from undistributed profits after setting aside funds as of December 31, 2024, according to the Bank's audited consolidated financial statements for 2024.

After issuance, TPBank's charter capital will increase by a maximum of VND 1,320.9 billion, from VND 26,420 billion to more than VND 27,740 billion.

Thus, this is the third consecutive year that TPBank has paid dividends in both cash and shares.

In 2024, TPBank paid cash dividends to shareholders at a rate of 5%. The total amount that the bank spent was more than VND 1,100 billion. In addition, the bank issued an additional 440.3 million new shares to pay dividends to shareholders. After the issuance, TPBank's charter capital increased from VND 22,016 billion to VND 26,420 billion, corresponding to the number of outstanding shares of nearly 2.642 billion units.

Previously, in 2023, this bank also spent VND 4,000 billion to pay cash dividends at a rate of 25% (shareholders owning 1 share receive VND 2,500) and bonus shares at a rate of 39.19% for shareholders.

At the upcoming General Meeting of Shareholders, TPBank will also submit to the congress for approval its 2025 business plan. Accordingly, this year, TPBank aims to achieve pre-tax profit of VND9,000 billion, up 18.4% compared to 2024.

Total assets in 2025 are expected to reach VND450,000 billion, up 7.6%. Capital mobilization is expected to increase by 12.3% to VND420,000 billion. Outstanding loans and bonds of economic organizations will increase by about 20% to VND313,750 billion. TPBank also said that the official credit growth target will be implemented according to the State Bank's announcement from time to time.