TPBank Increases Charter Capital and Distributes 20% Dividend to Shareholders

Tien Phong Commercial Joint Stock Bank (TPBank, stock code: TPB) will issue bonus shares to increase its charter capital by over 4.403 trillion VND.

TPBank will raise its charter capital by issuing up to 440.3 million new shares to pay dividends to shareholders at a 20% ratio. This means that for every 100 shares held, shareholders will receive an additional 20 new shares.

This capital increase plan has been approved by the bank's shareholders at the 2024 Annual General Meeting. Following this issuance, TPBank's charter capital will increase from 22.016 trillion VND to a maximum of 26.419 trillion VND.

According to TPBank representatives, the new capital will be considered for use in investing in technical infrastructure, developing the technology system, and expanding the business network. Additionally, it will serve as a source of medium- and long-term capital to support business operations, sustainable development, and shareholder interests, facilitating continued support for both businesses and individuals.

According to the Q2 2024 financial report, TPBank achieved pre-tax profit of 3.733 trillion VND, up 10.3% compared to the same period last year. All business segments saw positive growth compared to the previous year, maintaining a relatively high return on equity (ROE) of 17.5%.

TPBank's CASA (Current Account Savings Account) ratio continued to strengthen, reaching over 22% as of June 30, 2024. According to the latest report from KB Vietnam Securities (KBSV), TPBank's CASA ratio is the fifth highest in the industry, thanks to its leading digital transformation strategy that attracts a younger customer base. Leveraging this advantage, TPBank has maintained a low cost of capital.

In Q2 2024, the bank's total operating income reached over 8.900 trillion VND, an increase of nearly 18% compared to the same period in 2023.

At the end of Q2, TPBank's Capital Adequacy Ratio (CAR) under Basel III standards was 13.01%, with equity exceeding 41 trillion VND. Alongside proactive risk management, bad debt coverage, and enhancing reserves, the increase in charter capital will certainly contribute to improving TPBank's safety indicators.

Continuing to enhance financial capacity and sustainable development, TPBank’s stock has been consistently valued attractively. Since the beginning of the year, TPBank's stock has increased by about 4%.

Recently, TPBank completed a cash dividend distribution at a rate of 5%, meaning shareholders with 1 share received 500 VND. The total payout amounted to over 1.100 trillion VND.

In its latest report, KBSV has set a target price of 22.700 VND per share for TPBank's stock in 2024 and recommends a positive outlook for TPBank shares.

With improved business performance and transparent market information, TPBank has been listed in several prestigious rankings. At the Top 500 Largest Enterprises in Vietnam 2023 (VNR500) awards ceremony, TPBank was honored as one of the 50 reputable and efficient public companies (VIX50) for 2024.

Most recently, TPBank surpassed 708 units in the “Information Disclosure Survey” and 424 units in the “IR Awards Nomination” round, continuing to be named in the Top 10 outstanding enterprises on the stock market nominated for the IR Awards 2024 for the title of “Best IR Company of the Year.” This prestigious award has been jointly organized annually since 2011 by Vietstock, the VAFE Association, and FiLi Magazine.