TPBank sets profit target of 7,500 billion VND, no dividend payment in 2024

Tien Phong Commercial Joint Stock Bank ( TPBank - HoSE: TPB) has just announced the documents for the 2024 Annual General Meeting of Shareholders (AGM).

Accordingly, by the end of 2023, TPBank recorded total assets of VND 356,634 billion, completing 101.9% of the target assigned by the General Meeting of Shareholders. The bank's total mobilization also exceeded the plan by 3.11%, reaching VND 316,518 billion. The bad debt ratio as of December 31, 2023 was 1.52%, completing the plan assigned by the General Meeting of Shareholders.

However, the bank has only completed 64.24% of pre-tax profit of VND5,589 billion. TPBank said that in 2023, macroeconomic conditions will have many unfavorable factors.

Interest rates for deposits and loans across the system have gradually decreased over the quarters while many business sectors have seen a decline in operations, so the economy's ability to absorb capital is still limited.

Insurance business has declined due to the industry crisis and the tightening of regulations in the life insurance sales sector.

New credit growth is facing difficulties due to the impact of the economic situation and policies of the management agency. Bad debt and overdue debt tend to increase rapidly, increasing the provisioning.

In 2024, TPBank's Board of Directors (BOD) proposed a plan for individual bank pre-tax profit to reach VND 7,500 billion, an increase of 34.2% over the previous year.

Regarding other indicators, in 2024, TPBank expects total assets to reach VND390,000 billion, up 9.4%, while total mobilization increases by 3.3% to VND327,000 billion. Outstanding loans and corporate bonds are expected to increase by 15.8%, reaching VND252,821 billion.

In addition, TPBank will control bad debt below 2.5%, in line with the goals and orientations of the State Bank. The bank also aims to have 15 million customers in 2024.

Regarding the development orientation in 2024, TPBank's Board of Directors said that it will continue to restructure Handico Joint Stock Company (Hafic) so that TPBank has a subsidiary operating in the field of consumer finance.

Regarding the plan to distribute profits and set aside funds according to regulations in 2023, according to the financial report audited by KPMG, TPBank reported pre-tax profit in 2023 of VND 5,589 billion.

After paying income tax, allocating funds and paying value added tax to the budget for letter of credit activities according to Conclusion No. 324/TP-VPCP of the Prime Minister , the remaining profit is 3,697 billion VND. TPBank proposes to retain this profit and not distribute it.

In 2023, TPBank issued nearly 620 million shares to pay dividends to existing shareholders at a rate of 39.19% from accumulated undistributed retained earnings up to 2021 (VND 1,536 billion), capital surplus (VND 2,561 billion) and VND 2,102 billion taken from retained earnings in 2022. The issuance helped the bank's charter capital increase from VND 15,817 billion to VND 22,016 billion.

TPBank said that in 2024, it will review and improve the organizational structure of the entire system, propose a network development plan for 2024 according to the regulations of the State Bank of Vietnam, focus on developing quality human resources, controlling costs, and improving operational efficiency.

TPBank's Board of Directors also plans to submit to the General Meeting of Shareholders for approval and agreement to settle debt accounts used to handle risks that meet the conditions prescribed by the State Bank; approve amendments, supplements, and promulgate financial regulations in accordance with the provisions of law and management requirements at TPBank from time to time;

Through implementing solutions to overcome major fluctuations in the bank's finances in accordance with regulations and laws and the actual situation of TPBank.

TPBank's General Meeting of Shareholders is scheduled to be held at 8:30 a.m. on April 23 at Dragon Hall Meeting Room - 12A Floor, DOJI Building, No. 5 Le Duan, Dien Bien Ward, Ba Dinh District, Hanoi .

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