TPBank and 2 Key Indicators Rank Among the Top Private Banks

In Q4/2024, TPBank was one of the banks with the highest profit growth in the system. Over the past year, the bank has achieved a series of results that seemed almost impossible to complete simultaneously.

10 Million New Customers in 4 Years

In recent years, many banks in Vietnam have made significant strides in expanding their customer base thanks to digital transformation strategies and new approaches to customer engagement. Not only have the Big 4 banks or MB seen progress, but even private banks like TPBank, Techcombank, and VPBank have also made their mark, surpassing 10 million customers.

For TPBank, the growth of the bank in such a short time has attracted attention. According to recent updates, TPBank's customer base at the end of 2024 reached 14.1 million, an increase of approximately 2 million compared to the end of 2023. Thus, in just 4 years, the bank has attracted an additional 10 million new customers, making it one of the banks with the most robust customer base expansion.

Despite the booming digital transformation and market competition, TPBank's customer base expansion speed continues to be maintained thanks to its differentiated strategy and actions.

Firstly, on digital channels, TPBank continuously focuses on enhancing the user experience on its apps for individual customers (TPBank), business customers (TPBank Biz), and the automatic transaction system (TPBank LiveBank 24/7). This is something that every bank desires, but finding the right path to achieve it is not easy. To do so, TPBank is one of the leading banks in the Open API trend, connecting with partners to become a Super App. Currently, TPBank is one of the banks with the most partnerships in Vietnam. Since the first API service was launched in 2019, the bank has connected with hundreds of partners and nearly 2,000 payment services through Open API. This allows customers to have their full needs met on TPBank's app.

Along with bringing a wide range of services to the app, the bank also ensures that the app is user-friendly, smooth in operation, and secure for everyone. According to TPBank's leadership, there has never been a year when the bank hasn't invested in technology, and this is always a priority and carefully considered. In 2024, the bank spent around 1,000 billion VND on technology infrastructure, including enhancing servers, security, and protection.

Additionally, a continuous strategy of TPBank over the years has been to target young customers from an early stage. TPBank's philosophy when designing its app is to make banking transactions fun, easy, and even more friendly and "entertaining" for users. At the recently held Wechoice Awards 2024, TPBank was again voted as "The Most Favorite Financial-Consumer App Among Young People," proving the app's superiority in the highly competitive market today. As a result, 1 million new customers were attracted to TPBank via digital channels, with significant contributions from collaborations with partners like Momo, Shopee, etc.

Notably, the growth of new customers at TPBank's physical branches was also impressive, with 1 million new customers in 2024. Alongside the success of digital channels, TPBank has not overlooked improving processes, changing its approach to sales, and applying technology to enhance the quality of service at traditional transaction points. Through this, TPBank aims to provide the best experience across all channels and targets reaching 16 million customers in the coming year.

A representative from TPBank receives the award for "Most Favorite Financial-Consumer App Among Young People" at the Weyoung Fair.

The Effect of CASA Advantage

The strong customer base gives TPBank a significant advantage, especially as the retail segment continues to bring high business efficiency to the bank. The surge in new customers last year contributed to TPBank's capital mobilization growth, reaching over 374 trillion VND by the end of 2024. Notably, demand deposits (CASA) reached nearly 54 trillion VND, an increase of 14.4% compared to 2023, placing it among the top banks with the fastest CASA growth in the system. TPBank's CASA ratio is also one of the highest in the market, exceeding 20%.

Mr. Nguyễn Lâm Hoàng, TPBank's Chief Financial Officer, stated that the growth in CASA balance in 2024 primarily came from individual customers, which is considered a stable and sustainable source of CASA for the bank. In particular, customers receiving salaries and small businesses are maintaining very good CASA ratios. The bank's ability to attract 2 million new customers in the past year has been a key driver for continued CASA growth amid the current competition. Moreover, TPBank is one of the leaders in digital banking, continuously improving its app to optimize the customer experience, resulting in customers using TPBank more frequently for daily transactions. The total transaction value through TPBank's digital channels saw significant growth in 2024, reaching nearly 2 trillion VND.

The CASA figure is crucial for TPBank. On one hand, it demonstrates the bank's strong presence in the digital banking market and the trust that customers have in TPBank as their primary bank. On the other hand, CASA helps TPBank improve its cost of capital, enabling the bank to achieve several challenging goals simultaneously: achieving high profit growth while also supporting customer programs.

In 2024, TPBank supported businesses with green projects through a 5,000 billion VND loan package, offering 0% interest for the first 3 months. The bank also launched preferential interest rate packages for customers, such as a 3,000 billion VND loan package with interest rates starting from 4.5% per year, and registered 5,000 billion VND for housing loans for social housing, workers' housing, and the renovation and rebuilding of old apartments. Additionally, TPBank reduced interest payments by up to 50% for customers affected by Typhoon Yagi, with a limit of up to 2,000 billion VND.

Along with the milestone of 14 million customers and the CASA ratio, TPBank's performance in 2024 further solidifies the bank's efficient operations.

At the end of 2024, TPBank's pre-tax profit reached nearly 7.6 trillion VND, a 36% increase compared to 2023, exceeding the target set at the Shareholders' General Meeting (7.5 trillion VND). TPBank's Return on Equity (ROE) remained above 17%. Notably, the bank experienced a strong business breakthrough in the final quarter of 2024, with pre-tax profits exceeding 2.1 trillion VND, three times higher than the same period last year.

Despite a challenging year, TPBank's credit growth reached 20%, significantly outpacing the average growth rate in the banking sector (around 16%). TPBank's outstanding credit balance by the end of 2024 (including loans to customers and corporate bonds) reached 261.5 trillion VND. Retail credit experienced strong growth in the last part of the year, especially for small business loans and real estate loans.

TPBank's profit results also highlight the effectiveness of digital transformation, as the revenue structure shifted toward diversification and sustainability. TPBank's total operating income reached more than 18 trillion VND, an 11% increase from 2023. Notably, net interest income from services grew by 47.5%, reaching more than 3.36 trillion VND, accounting for about 19% of total operating income. Along with other business segments, non-credit income contributed 28% of TPBank's total revenue.

Notable Business Figures

Mr. Nguyen Lam Hoang, TPBank's CFO, stated that TPBank's recent focus has been on diversifying its revenue sources and reducing dependence on interest income. With a customer base of 14 million, revenue from payment accounts and card services significantly contributes to TPBank's earnings.

Being a pioneer in digitalization not only helps TPBank increase its revenue, but it also enables the bank to better control costs. The bank has almost not increased its workforce in the past year, while improving employee productivity. As a result, TPBank's Cost-to-Income Ratio (CIR) has improved significantly, from 41.28% in 2023 to 34.78% in 2024.

In both domestic and international banking rankings, TPBank continues to be among the top leading banks. In 2024, TPBank entered Brand Finance’s Top 100 for the second time, with its brand value rising 8% to 461 million USD, maintaining the 23rd position in Brand Finance's Vietnam 100 2024 ranking. The bank continues to be one of the most reputable and high-quality banks in Vietnam, ranked in the Top 4 Most Stable Banks in Vietnam 2024 by The Asian Banker. Additionally, TPBank is ranked in the Top 10 Most Reputable Banks in Vietnam and 5th among private banks according to Vietnam Report.

In a recent share, Mr. Nguyen Hung, CEO of TPBank, mentioned that while at a glance, services from banks may seem similar, and digital transformation strategies are no longer something extraordinary, customers will clearly see the difference once they start experiencing TPBank’s services. TPBank has built a competitive advantage over a long journey since pioneering digitalization, steadily creating the most convenient and satisfying customer experience across all channels. Therefore, TPBank remains confident in its ability to continue growing and attract another 2 million customers in 2025.