The State Bank has allowed TPBank to increase its charter capital to more than VND 22,000 billion

Tien Phong Commercial Joint Stock Bank (TPBank; HoSE: TPB) announced that it has received an official letter from the State Bank of Vietnam approving TPBank to increase its charter capital up to nearly VND 6,199 billion.

At the previous Annual General Meeting of Shareholders of 2023 on April 26, Tien Phong Commercial Joint Stock Bank (TPBank; HoSE: TPB) set a target to increase its charter capital from 15,817 billion to 22,016 billion dong through a dividend of 39. 19% in shares.

Accordingly, TPBank will issue nearly 619.9 million shares to pay dividends to shareholders, equivalent to 39.19%. The expected release time is in 2023.

The capital source from accumulated undistributed retained earnings until 2021 is more than VND 1,536 billion, share capital surplus is VND 2,561 billion and VND 2,102 billion is taken from retained earnings in 2022.

Also at the AGM, shareholders questioned why it is 39.19% rather than 50% while the bank's growth is still very comfortable, retained earnings are still sufficient? - Mr. Do Minh Phu (Chairman of TPBank's Board of Directors) said that in giving this capital increase ratio, the Board of Directors must base on the ability of the bank's equity. residual profits.

In the first quarter of 2023, TPBank recorded a decrease in net interest income of 3.34% over the same period, reaching nearly VND 2,737 billion. Besides, net profit from service activities increased by 36%, reaching VND 695 billion. Net profit from foreign exchange business increased by 370% to 151 billion dong. The bad debt ratio at the end of March was at 1.45%, up from 0.84% at the beginning of the year.

On the stock market, in the morning session of May 24, TPB's share price increased by 0.42% to 23,800 VND/share.