Mr. Nguyen Hung: TPBank will focus on key transportation projects

The health of banks has always been a top concern for policymakers. In 2024, how have the dramatic fluctuations in the global economy impacted individual banks in Vietnam? What positive boosts has the State Bank of Vietnam (SBV) provided through its management approach in such an unpredictable environment? ThoiDai had a discussion with TPBank's CEO, Mr. Nguyen Hung, about the current situation and the bank's business outlook in the coming period.

At a recent meeting between the Prime Minister and the leaders of various banks, TPBank's Chairman, Mr. Đỗ Minh Phú, stated that with the new operating formula from the State Bank of Vietnam (SBV), TPBank has proactively calculated based on outstanding loans and determined that the credit limit for 2024 would be around 18%. He expressed confidence that TPBank would fully utilize this credit limit, with a projected achievement of over 13% by the end of Q3. Mr. Nguyễn Hưng, CEO of TPBank, was asked: What are the key factors that have contributed to such positive results for TPBank?

Currently, the SBV has also allocated additional credit room to the banks, so institutions like TPBank have become more proactive in utilizing their allocated limits. TPBank has prepared sufficient capital to disburse to meet customer demand. At present, due to a good reputation and a relatively abundant market liquidity, capital mobilization for TPBank is quite smooth, including from both domestic individuals and organizations as well as from international institutions.

After the U.S. Federal Reserve lowered interest rates, the pressure on the exchange rate eased, key global currencies saw lower interest rates, and domestic rates also followed this trend. This reduced financial pressure on borrowers, facilitating disbursement by banks. In Q3, credit demand from both individuals and businesses increased, creating a favorable base for TPBank to release more funds into the market from now until the end of the year.

I expect that by the end of this year, the economy will improve further, and as a result, credit growth will also perform better.

The Prime Minister has suggested that banks, depending on their specific circumstances, continue to reduce or offer appropriate interest rates to make it easier for businesses and individuals to access loans. Has TPBank encountered any difficulties in implementing this policy, especially as some banks have begun raising deposit interest rates?

Recently, deposit interest rates have slightly increased for many terms, which has raised the bank's cost of capital. However, given the still challenging market environment, we have actively introduced loan interest rate support programs to help individuals and businesses more easily access financing.

Like other commercial banks, TPBank also faces pressure from competition in interest rates to attract quality customers while balancing its business effectiveness.

To address this, TPBank has implemented many solutions, including saving on operational costs by applying technology to maintain competitive lending rates that are beneficial and suitable for different customer segments, boosting credit growth.

Since the beginning of the year, TPBank has continuously updated new preferential loan policies for customers. Specifically, TPBank has adjusted its home loan rates, including loans for buying land, project homes, construction/renovation, and refinancing other banks, to 0% per year for the first 3 months, and 8.2% fixed for the following 9 months, with a 3-month fixed interest rate package.

In addition, TPBank offers long-term fixed-rate loan packages such as: 6.8% per year fixed for the first 12 months; 7.3% per year fixed for the first 18 months; 7.8% per year fixed for the first 24 months; 8.8% per year fixed for the first 36 months. These rates are valid until the end of February next year.

Especially, to support individual customers affected by the floods caused by Typhoon Yagi, TPBank is reducing the interest payments by up to 50%, maintaining this reduced rate until at least January 31, 2025. This program is available from now until the end of October, with a credit limit of up to VND 2,000 billion.

Not only does TPBank actively reduce interest rates for individual customers, but it is also actively involved in the market with large-scale financing programs. In late August, the bank signed an agreement to fund the first phase of a VND 130 billion loan to ensure the development of land for the Le Thanh Tan Kien Social Housing Project developed by Le Thanh Trade - Construction Co., Ltd.

TPBank is also pushing green loan packages for businesses with green projects, with interest rates as low as 0% for the first 3 months, with a total loan value of up to VND 5,000 billion.

Could you please share the target customer groups for TPBank in the remaining months of 2024?

With our strength in consumer lending, TPBank will continue to expand credit to industries that align with government and SBV priorities, including public investment projects, especially key state infrastructure projects such as transportation, rural agriculture, trade infrastructure, and cultural and social infrastructure. We are also focusing on customers involved in the production of essential and fast-moving consumer goods. Particularly, taking advantage of the positive recovery in the real estate market, TPBank is continuously introducing favorable interest rate policies to achieve the goal of growing our loan portfolio by 18% this year.

TPBank is also placing a special focus on women-led small and medium enterprises (SMEs), as well as IT and telecommunications companies, and green credit programs. Green lending has shown steady growth, making up nearly 3% of total outstanding loans, with numerous projects in areas such as renewable energy, water management, energy efficiency improvement, and greenhouse gas emissions reduction.

Thank you for your insights!