TPBank profits nearly 7.6 trillion VND

In 2024, TPBank's pre-tax profit reached nearly 7.6 trillion VND, a 36% growth compared to the previous year.

This profit exceeded the bank's set target. The Return on Equity (ROE) ratio was above 17%.

At the end of 2024, TPBank's outstanding credit balance reached 261.5 trillion VND, growing over 20% compared to the previous year, marking a growth rate higher than the industry average. The credit growth focused on individual customers and small and medium-sized enterprises (SMEs).

By the end of last year, the bank's total assets surpassed 418 trillion VND, up 17% from the previous year, exceeding the target by 7%. TPBank's charter capital increased to 26.42 trillion VND. The non-performing loan (NPL) ratio was kept under 2%.

Regarding business results, the bank's leadership reported a shift in the profit structure, reducing reliance on credit activities and increasing non-interest income. TPBank's operating income reached over 18 trillion VND, an 11% increase compared to 2023.

Notably, net interest income from services grew strongly by 48%, reaching over 3.36 trillion VND, mainly due to expanding the customer base to 14 million people, which boosted income from accounts and digital banking. Within the service income structure, cross-selling insurance also saw some improvement, though it has not yet returned to the peak levels of 2021-2022. The bank's Net Interest Margin (NIM) is expected to be around 3.6-3.7%, slightly lower than before.

This year, TPBank's leadership anticipates that deposit interest rates will remain stable or increase slightly, given that the strength of the USD has not decreased, putting pressure on the exchange rate. Loan interest rates are unlikely to decrease but will likely remain stable due to competitive pressure pushing credit growth. As a result, the bank's profit margin will continue to face pressure and is expected to remain stable.

Earlier in a survey conducted by the State Bank of Vietnam in December 2024, banks assessed that the industry’s business and profit situation had improved in the last quarter of the previous year. For the whole year of 2024, banks evaluated that business conditions had not yet met expectations but had improved compared to 2023. Nearly 80% of banks estimated that profits would grow compared to 2023, while 16% estimated a decline and 5% predicted no change.