TPBank's pre-tax profit was nearly 5,000 billion VND in the first 9 months of the year, customer loans increased by 12%

Tien Phong Commercial Joint Stock Bank (TPBank, stock code TPB) has just announced its business results for the third quarter of 2023 with pre-tax profit reaching 1,575 billion VND, accumulated 9 months reaching 4,959 billion VND.

Specifically, in the first 9 months of the year, TPBank's net interest income decreased slightly by 2% over the same period, reaching VND 8,429 billion.

Up to now, this bank has about 10 million customers using the service, of which more than 1.5 million new customers were added in the first 9 months of this year alone. Thanks to the rapid increase in the number of customers, TPBank's service income also increased, up 15% over the same period last year, reaching VND 2,165 billion.

Foreign exchange business activities in the first 9 months of the year increased by 32% to 437 billion VND while profits from buying and selling investment securities increased by half to 824 billion VND.
In total, TPBank achieved 6,935 billion VND in net profit from business activities in the first 9 months of this year, down 9% over the same period.

Due to having to increase credit risk provisions by 14% over the same period, to 1,976 billion VND, the bank's 9-month profit decreased by 16% over the same period, to 4,959 billion VND.

At the end of the first 9 months of this year, TPBank's total assets increased by 5% compared to the end of last year, reaching over 344,400 billion VND. Outstanding customer loans grew impressively by 12% after 9 months, reaching nearly 180 trillion VND. However, customer capital mobilization is not as good as lending out, and has almost no growth compared to the end of last year.

TPBank's credit quality is controlled within the allowable level of the State Bank (less than 3% of total outstanding debt), however sub-standard debt and doubtful debt increased sharply, causing the absolute number of debt bad value increased quite high compared to the end of 2022, at VND 5,350 billion.

Other safety indicators are maintained at a good level by TPBank, in which the capital adequacy ratio (CAR) according to Basel III standards reaches 11%, among the top of the banking industry.

The highlight in the first 9 months of this year at TPBank is that the bank continuously updates preferential interest rate policies to accompany customers through difficult periods of the economy. This year alone, TPBank has reduced loan interest by about 1,400 billion VND and 76 billion VND in fees for customers. In early 2023, TPBank also increased its charter capital to more than 22,000 billion VND through paying dividends in bonus shares at a rate of 39.19%.