TPBank: The Digital Transformation Mark in Strong Growth Results for 2024

Tien Phong Commercial Joint Stock Bank (TPBank) has just announced its 2024 business results, marking a year of strong and sustainable growth amidst the gradual economic recovery.

Profit Surge

By the end of 2024, TPBank's total assets reached VND 418 trillion, an increase of 17% compared to the beginning of the year and exceeding the set target by 7%. The bank's charter capital also rose to VND 26,420 billion, reflecting its solid financial strength.

Outstanding loans—comprising customer loans and corporate bond investments—reached VND 261.5 trillion, growing by over 20% compared to the previous year, significantly outpacing the industry average.

According to Mr. Nguyễn Lâm Hoàng, TPBank's Chief Financial Officer, the bank continues to focus its strategy on two main customer segments: individuals and small and medium-sized enterprises (SMEs).

"For individual customers, we focus on traditional loan products such as home and car loans. For SMEs, TPBank emphasizes the State Bank of Vietnam's priority sectors, offering products such as loans for female entrepreneurs, green credit, online loans via digital banking, and special programs for telecom and construction businesses," Mr. Hoàng shared.

This effort helped TPBank achieve a pre-tax profit of nearly VND 7,600 billion, marking a 36% growth compared to 2023, surpassing the goal set at the Annual General Meeting. The bank's Return on Equity (ROE) remained above 17%, reflecting sustainable business performance.

Notably, TPBank's profit structure has seen a positive shift, gradually reducing reliance on credit and expanding non-interest income. Total operating income reached over VND 18,000 billion, an 11% increase compared to 2023. Non-interest income accounted for 28% of total operating income. Service income surged by 47% year-on-year, reaching nearly VND 3.3 trillion, and now makes up almost 19% of the bank's total operating income.

The bank's Capital Adequacy Ratio (CAR) stood at 14%, exceeding the minimum Basel III requirement, ensuring its ability to face risks and maintain long-term stability.

The Digital Transformation Impact on Operational Efficiency

One of the key success factors for TPBank is its comprehensive digital transformation strategy. Thanks to substantial investments in modern technology and operational optimization, the bank reduced its cost-to-income ratio (CIR) from 41.28% in 2023 to 34.78% in 2024.

"Recognizing 2024 as a challenging year, we implemented several measures from the beginning to reduce costs and improve efficiency, including optimizing personnel and enhancing productivity. We reduced hiring in support departments and focused on strengthening the workforce in business units to allocate resources effectively for growth," said the bank's leadership.

A range of advanced digital products and services has been deployed using leading technologies such as AI, Big Data, and Machine Learning. These are widely applied across all core banking services, including payments, credit, and savings.

The diverse ecosystem connected to various advanced services offers customers an exceptional and convenient experience, saving both time and costs, further establishing TPBank as the primary bank for many customers.

This is why the bank has seen a consistent surge in customer numbers recently. In 2024 alone, TPBank attracted an additional 2.1 million new customers, bringing the total number of customers to 14.1 million, with over 50% of these new customers coming through digital channels.

Simultaneously, the transaction volume and value through TPBank's electronic channels also increased significantly, with more than 4 million customers regularly transacting via digital platforms, with total transaction value reaching nearly VND 2 trillion in 2024—an impressive figure reflecting the strong shift of customers to online platforms.

Thanks to its digital transformation strategy to attract and retain customers, coupled with continuous improvements in customer experience, TPBank successfully boosted its demand deposit ratio (CASA) over the past year, maintaining its position among the top banks with the highest CASA growth rates.

With the advantage of cheap capital and a large CASA balance, TPBank has improved its Net Interest Margin (NIM), while also accelerating the disbursement of preferential loan packages to support citizens and businesses in recovering operations, aligning with the Government's and State Bank of Vietnam’s directives.

Through tireless efforts and strategic vision, TPBank concluded 2024 with impressive growth figures, affirming its position in the banking sector. The business results surpassed expectations, and the comprehensive digital transformation strategy has laid a solid foundation for TPBank to continue reaching higher milestones, while delivering sustainable value for customers and shareholders in the future.