TPBank earns nearly 3,000 billion VND in profit in the first half of 2024, bad debt increases slightly

Tien Phong Commercial Joint Stock Bank (TPBank - HoSE: TPB) has just announced its consolidated financial report for the second quarter of 2024 with net interest income reaching nearly VND 3,238 billion, an increase of 11% compared to the net interest income of VND 2,914 billion in the same period.

The bank's non-interest income recorded inconsistent growth as net profit from service activities increased by 52% year-on-year to VND945 billion.

TPBank's net interest income increased by 11% over the same period.

According to the financial statement, service fees from TPBank's payment activities increased by 44% to VND956 billion and other service fees increased by nearly 49% over the same period to VND944 billion.

Other business activities brought TPBank a profit of 98 billion VND, while in the same period last year it lost nearly 16 billion VND.

On the other hand, TPBank's net profit from trading investment securities reversed compared to the same period, from a profit of nearly VND 238 billion to a loss of nearly VND 45 billion. At the end of June 2024, TPBank had VND 60,865 billion in investment securities.

TPBank's net profit from foreign exchange trading activities decreased sharply from VND163 billion last year to VND661 million.

During the period, the bank reduced operating costs by 28% to VND1,383 billion. As a result, the bank's net profit from business operations increased by 43.6% over the same period, reaching VND2,853 billion.

TPBank increased its credit risk provisioning expenses by 2.57 times compared to the same period last year to VND949 billion. This has somewhat eroded TPBank's profits. The bank reported pre-tax profit of VND1,904 billion; corresponding after-tax profit reached VND1,523 billion, up 17.7% compared to the same period in 2023.

In the first 6 months of 2024, TPBank's net interest income increased by 14% to VND 6,664 billion. The bank reported pre-tax net profit of nearly VND 3,733 billion and after-tax profit of nearly VND 2,986 billion, up 20% compared to the first 6 months of 2023.

As of March 31, 2024, TPBank's total assets reached VND 361,555 billion, a slight increase of 1.37% compared to the beginning of the year. Of which, customer loans increased by nearly 4% over the same period last year to nearly VND 210,530 billion.

However, on the other side of the balance sheet, TPBank's customer deposits decreased by 2.5% to VND202,997 billion.

TPBank's deposits and loans from other credit institutions also decreased from VND 83,966 billion last year to VND 78,692 billion, a decrease of 6.4% compared to 2023.

Regarding loan quality, at the end of March 2024, TPBank's total bad debt was VND 4,399 billion, an increase of 4.7% compared to VND 4,200 billion in the same period last year. As a result, TPBank's bad debt/loan balance ratio increased from 2.05% at the end of 2023 to 2.06%.

Of which, substandard debt (group 3 debt) increased by 7.2% to VND1,779 billion, doubtful debt (group 4 debt) increased by 11% to nearly VND1,582 billion. Only debt with the possibility of losing capital (group 5 debt) decreased slightly compared to the beginning of the year to VND1,038 billion.

Source: https://www.nguoiduatin.vn/tpbank-lai-gan-3000-ty-dong-nua-dau-nam-2024-no-xau-nhich-nhe-204240730201829868.htm