TPBank wants to increase its charter capital to more than 21,000 billion VND, profit reaching 8,200 billion in 2022

Tien Phong Commercial Joint Stock Bank (TPBank, HoSE: TPB) has just revealed its business plan for 2022 in its AGM document. This bank will hold its AGM on April 26.

According to the plan announced in the AGM documents, in 2022 TPBank's total assets are targeted to reach VND 350,000 billion, an increase of 20% compared to the end of 2021. The total mobilized value is VND 292,579 billion, equivalent to an increase. growth of 12% compared to the previous year, of which customer deposits increased by 15% and reached VND 201,212 billion. Loans and bonds are expected to reach VND 188,800 billion and according to the limit assigned by the State Bank. Target profit before tax increased by 36% compared to 2021 and reached VND 8,200 billion.

In 2021, TPBank is one of the banks with a relatively low bad debt ratio in the system, only 0.81%. In 2022, this bank continues to aim to maintain this ratio at a low level of less than 1.5%.

During this year's AGM, TPBank's Board of Directors will also submit to shareholders the estimated operating budget of the Board of Directors in 2022, which is expected to increase by more than 31% compared to last year.

Currently, TPBank's charter capital is over 15,800 billion VND and the bank is expected to increase charter capital by nearly 5,300 billion VND in 2022. Accordingly, after completing the capital increase process, TPBank's charter capital will increase to more than 21 trillion VND. copper.

Specifically, TPBank plans to issue more than 527 million shares to raise capital from equity for existing shareholders. Performance ratio 3:1 (shareholders owning 3 shares will receive 1 new share). Ordinary shares issued to existing shareholders are not subject to transfer restrictions.

The capital source is from the reserve fund to supplement charter capital, share capital surplus and undistributed retained earnings according to the audited 2021 financial statements. TPBank's remaining undistributed profit is nearly 4,100 billion dong.

Time to issue shares to increase capital is expected to be completed in 2022. The additional capital will be invested by TPBank in material and technical facilities, information system development and network expansion; supplementing medium and long-term capital for medium and long-term loans; supplement operating capital for the Bank and non-credit activities in line with actual capital use needs.