TPBank earns big from investment securities in the first quarter of 2024

Tien Phong Commercial Joint Stock Bank (TPBank - HoSE: TPB) has just announced its consolidated financial report for the first quarter of 2024 with net interest income reaching VND 3,427 billion, an increase of 17.3% compared to the net interest income of VND 2,921 billion in the same period.

The bank's non-interest income also recorded positive results when net profit from service activities increased by 39.8% compared to the same period last year to VND715 billion. According to the financial statement explanation, during the period, service fees from payment activities and other service fees increased by 40% compared to the same period, respectively to VND405.6 billion and nearly VND417 billion.

Notably, TPBank's net profit from investment securities trading activities increased nearly 14 times compared to the same period to VND 475 billion. Trading securities trading activities also brought TPBank a net profit of VND 697 million, while in the same period last year there was no profit from this activity.

On the other hand, TPBank's net profit from foreign exchange trading decreased by 44.9% compared to the same period last year to VND83.2 billion. Other business activities caused TPBank to lose VND16 billion, while in the same period last year, this activity brought the bank a profit of VND41 billion.

Thanks to the sharp increase in profits in all segments, TPBank's total operating income at the end of the first quarter of 2024 reached VND 4,685 billion, an increase of 28% over the same period last year. As a result, although operating expenses increased from VND 1,579 billion in the same period last year to nearly VND 1,676 billion, the bank's net profit from business activities still increased by 44.7% over the same period to VND 3,009 billion.

During the period, the bank increased its credit risk provisioning expenses by 4 times compared to the same period last year to nearly VND 1,181 billion. As a result, TPBank reported pre-tax profit of VND 1,829 billion, up 3.6%; corresponding after-tax profit reached VND 1,463 billion, up 3.5% compared to the same period in 2023.

As of March 31, 2024, TPBank's total assets reached VND355,870 billion, down 0.2% compared to the beginning of the year. Of which, customer loans decreased by 2.2% compared to the same period last year to VND200,829 billion. Customer deposits also decreased by 8.4% to VND190,827 billion.

Meanwhile, TPBank's deposits and loans from other credit institutions increased from VND83,956 billion last year to VND92,481 billion, an increase of 10.1% compared to 2023.

Regarding loan quality, at the end of March 2024, TPBank's total bad debt was VND 4,484 billion, an increase of 6.8% over 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 2.23%.

In a related development, TPBank's General Meeting of Shareholders on April 23 approved the 2024 business plan with a pre-tax profit target of VND 7,500 billion, an increase of 34% compared to the actual level of VND 5,589 billion in 2023. Thus, by the end of the first quarter of 2024, TPBank had completed 24.38% of the plan.

According to TPBank Chairman Do Minh Phu, the profit growth target of over 34% in 2024 is a quick move to make up for the previous slowdown to handle bad debts of the bank. This is a challenge, however, looking at the first quarter business results, TPBank is confident in completing the profit target to set out .

Source