Customer growth successfully proves TPBank's path to digitalization and sustainable development

Pioneering comprehensive digitization, focusing on developing green credit from an early age, constantly strengthening governance capabilities to ensure outstanding efficiency and sustainability is how TPBank builds its brand for sustainable development, Build trust in customers, investors and partners.

The breakthrough increase in customer numbers proves the success of sustainable digitalization

After welcoming the 10 millionth customer in July, TPBank continuously received a series of awards proving its path of sustainable development, looking to the future and with its outstanding brand upgrade over the past years. . Some achievements can be achieved such as Top 5 most valuable private banking brands, valued at 424.88 million USD, strength index reaching 69.37; or Top 15 Largecap Listed Enterprises that meet the Information Disclosure Standard on the stock market in 2023 within the framework of the IR Awards 2023...

Most recently, Purple Bank continued to appear for the second consecutive year in the important list of 20 businesses/banks with the best sustainable development index in the stock market (VNSI - Vietnam Sustainability Index) for the period from July 2023 - July 2024 announced by Ho Chi Minh City Stock Exchange (HSX). TPBank is assessed to respond well and fully to ESG - Environment (Environmental), Social (Social) and Corporate Governance (Corporate Governance) reports.

The VNSI index is calculated according to the market capitalization method adjusted for free-float rate with components being stocks of 20 companies with the highest sustainable development scores on the HSX. The sustainable development score is calculated based on a set of screening questions according to 3 ESG criteria. Currently, many domestic and foreign investors are increasingly interested in HoSE's sustainability index to screen potential investments in the stock market. The presence of TPBank for the second consecutive year in the HoSE list shows the seriousness and unceasing efforts of the bank in its sustainable development strategy, focusing on factors related to the environment, society and the environment. corporate governance.

In order to go a step further in the overall strategy of improving ESG practice, TPBank recently launched the project of Building a Framework and Enhancing Implementation Capacity on Environment - Society - Governance (ESG Project) ). Mr. Nguyen Hung, General Director of TPBank is confident that the banking team can receive technical and technology transfer to well implement the governance according to international ESG standards, ensuring green and healthy development. sustainable, responsible to the community, society, and the environment.

According to experts, the implementation of ESG is likely to help increase awareness, increase competitiveness with competitors, and at the same time increase the level of customer attachment to the brand. In addition, implementing ESG also helps to reduce operating costs of enterprises thanks to reasonable management and optimization of operations such as energy consumption, water consumption, costs, etc. Enterprises/banks management processes can be planned and reformed to reduce costs associated with energy use... In addition to improving cost management, ESG programs also enable improved operational efficiency, management better risk management and improved process innovation.

When the awareness and interest of customers and investors are increasingly enhanced with the factors of green environment, sustainable development... It is inevitable that businesses and banks go on the ESG path. Those who actively lead innovation, closely aligned with the ESG strategy will gain an advantage over the rest of the market.

TPBank's rapid growth in the number of customers over the years is proof of the breakthrough strategy the bank has chosen. Just over the first 6 months of 2023, TPBank has more than 1.5 million new customers, bringing the total number of customers using the bank's ecosystem to tens of millions of customers.

If in the first 7 years since its establishment, the bank only reached 1 million customers in 2015. Over the next 7 years, this number increased significantly to 8.5 million customers in 2022. Last year alone, more than 3.7 people have become TPBank customers. The above numbers and a series of awards are the strongest affirmation for purple bank's persistent efforts to pursue the sustainable development strategy.

A more attractive TPBank thanks to good risk management and improved profitability

Risk management criteria in ESG have always been highly appreciated by TPBank and maintained its position in the top of the industry. TPBank is constantly improving and applying the most advanced risk management standards. In 2021, TPBank is the first commercial bank to meet Basel III and IFRS 9 simultaneously in Vietnam. TPBank is also ranked Ba3 by the international rating agency Moody's, with a stable outlook - the highest level among private joint stock commercial banks in Vietnam rated by Moody's. TPBank has overcome many "competitors" to be honored in the Top 12 prestigious and effective public companies 2023 (VIX50).

According to a report by HSC Securities Company, TPBank's capital adequacy ratio (CAR) reached 12.65%, much higher than Basel II's minimum requirement of 8%, among the highest in the industry. The high CAR ratio also allows TPBank to be one of the first banks to deploy cash dividends earlier this year, at a rate of 25%. HSC also commented that thanks to its solid capital buffer, TPBank's credit growth is higher than the industry average.

TPBank's positive changes in finance and risk management also positively reflect on the bank's stock performance. HSC expert said that TPB stock always shows positive signals. TPB's stock price increased by 22% since the beginning of the year, higher than the average increase of other joint stock commercial bank stocks on the exchange. TPB's 1-year P/B is currently 1.04 times, higher than the average of joint stock commercial banks (currently 0.95 times - this difference has not changed in the past 12 months).

With those signals, HSC simultaneously raised TPB's P/B and EPS forecast for this year.

Connecting digitalization with greening

Along with a strong digital transformation journey right from the restructuring, TPBank has attached itself to sustainable development factors related to environment, governance and society.

The bank saves costs, human resources, and reduces emissions to the environment by enhancing digitalisation. Reducing the use of papers and documents in operations and customer interaction activities is actively implemented by TPBank with 100% of the digital platform deployed in all internal and external activities. 90% of TPBank's work and operating processes do not require paper.

With the most modern digital ecosystem in the financial market today, notably the system of nearly 500 "sleeping banks" Livebank, TPBank has almost eliminated the use of paper in all service stages. At the same time, it reduces costs, travel time and effort for both customers and bank personnel.

In particular, with the target customer base being young people and the generation that loves technology, digitalization is especially suitable. The young population will be the future generation and potential customers that financial institutions seek. Besides the technology trend that is gradually becoming popular with the genZ generation, environmental factors are also concerned by a part of young people, thereby affecting the decision to use services of a business/bank. . These are two factors that TPBank has long focused on to attract young customer groups.

Not only paying attention inside the bank, TPBank also spread the direction of sustainable development through a series of green credit packages with a total value of trillions of dong. In 2017, TPBank was the leading bank in East Asia in supporting transactions that have a positive impact on fighting climate change. In 2018, TPBank became one of eight banks in the East Asia and Pacific region to receive an award from the International Finance Corporation (IFC) in the field of trade finance for climate change adaptation projects. bright.

In 2019, TPBank signed a long-term contract for a green credit loan worth USD 20 million (about VND 465 billion) within 3 years from The Global Climate Partnership Find (GCPF). Earlier this year, in a preferential credit package worth VND5,000 billion, TPBank also gave special priority to green businesses.

According to Mr. Nguyen Hung, General Director of TPBank, green credit is an inevitable direction of the global banking and financial industry. “TPBank is always ready to support projects and green business plans with elements of energy saving, reducing CO2 greenhouse gas emissions and being environmentally friendly, in order to mitigate climate change, promote environmental protection and sustainable socio-economic development", said CEO TPBank.