April 23, 2024 – TPBank (TPB – HOSE) successfully held its 2024 Annual General Meeting of Shareholders (AGM) this morning.
For 2024, TPBank is targeting a profit of VND 7,500 billion, an increase of 34%, while bringing good news to shareholders with a plan to distribute dividends of up to 25% in cash and stock. This is not the first time TPBank has brought good news to the bank’s shareholders.
Previously, in April 2023, TPBank had disbursed nearly VND 4,000 billion to pay cash dividends to shareholders and issued nearly 620 million shares to pay stock dividends to existing shareholders at a rate of 39.19%.
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“Shareholder Interests Have Never Been Greater,” Says Chairman Do Minh Phu
TPBank Chairman Do Minh Phu said that 2023 was an extremely difficult year for the banking and finance industry. Demand from many economic sectors fell sharply during the year. The banking industry is also facing a situation of excess liquidity, while businesses are facing a shortage of capital.
However, TPBank has achieved remarkable results, experiencing a year with good key indicators. In 2023, TPBank’s customer growth was outstanding, increasing by more than 4 million customers to 12 million, a growth that could take decades to achieve. 2023 was a year of many achievements for TPBank, being ranked by The Asian Banker as the No. 1 bank in terms of financial health in Vietnam for two consecutive years. Over the past year, shareholder relations have also been improved, ensuring shareholder interests as TPBank pays a very high cash dividend rate of 25% and has bonus shares.
Profit in 2023 was lower than the target, reaching only VND 5,589 billion. Mr. Phu said that due to the difficult market conditions in the past year, customers have incurred a significant amount of bad debt. Therefore, to ensure operational safety and comply with regulations of the State Bank of Vietnam, TPBank has proactively increased its risk provisioning. In the future, when handling and recovering debts, the bank may be able to reverse provisions and re-recognize them into profits. In addition, TPBank has also reduced interest rates and supported customers during difficult times, which has had a certain impact on profits.
The CASA ratio has increased to 24%, helping the bank to have a low cost of capital and also demonstrating customer confidence in the bank.
The TPBank Chairman said that in 2023, the bank had spent nearly VND 4,000 billion to pay cash dividends to shareholders, which is an absolute huge number. The cash dividend payout ratio of 25% and bonus stock of over 39% is an effort of the entire bank to express gratitude to shareholders who have accompanied the bank for a long time.
“Never before have shareholder interests been so great in 2023. Shareholder relations are not just about dividends, we also care about our shareholders, increase transparency, and are ready to answer questions from shareholders, both large and small. Many shareholders have also shared with me that the dividend is larger than their expectations,” said the Chairman of TPBank.
TPBank CEO Nguyen Hung: Profit in the first 4 months of over VND 2,500 billion, this year’s profit plan is very feasible
Mr. Nguyen Hung, CEO of TPBank, said at the meeting: “We have almost closed all the burdens in 2023 by focusing on increasing provisioning. Thus, this year, these burdens will no longer be affected.”
The CEO of TPBank also said that in 2024, TPBank was allocated a credit growth “room” of 15.75% by the SBV. If used effectively and with good asset quality, the bank has the opportunity to ask for additional “room” at the end of the year. “We are not a big bank, but we have actively participated in programs to reduce interest rates, preferential sectors, develop low-income housing, … which will be evaluated.” It is expected that TPBank’s outstanding credit will reach VND 252 trillion by the end of 2024. Bond outstanding balance has gradually decreased over the past 3 years, to only VND 9,000 billion at present. Bond operations are safe and there are no problems.
This year, TPBank sets a target for the bad debt ratio of under 2.5%. However, according to Mr. Nguyen Hung, this is a cautious target, the bank will try to ensure it is under 2% because low bad debt and low provisions will help the bank ensure profits.
TPBank also sets a target to expand its customer base to 15 million, an increase of about 3 million.
“The 2024 profit target is quite optimistic at this point. In the first 3 months of the year, TPBank’s profit reached VND 1,829 billion and is expected to reach more than VND 2,500 billion by the end of April. The bad debt ratio is also gradually decreasing,” Mr. Hung said.
TPBank to distribute 5% cash dividend
April 23, 2024 – At its annual general meeting of shareholders (AGM) today, TPBank proposed a plan to distribute cash dividends and stock dividends to increase charter capital in 2024. This proposal was just added by the bank before the AGM.
Specifically, TPBank proposes to distribute a 5% cash dividend (1 share receives VND 500) from the undistributed profit after setting up funds up to December 31, 2023. According to the bank’s leadership, the payment of cash dividends is to express gratitude to shareholders who have accompanied the bank over the past time and based on TPBank’s stable, long-standing and safe development business situation.
Last year, TPBank was also one of the first banks to pay cash dividends at a rate of 25%, equivalent to VND 2,500/share. TPBank also paid stock dividends at a rate of over 39%, increasing charter capital from VND 15,818 billion to VND 22,016 billion.
TPBank to increase charter capital to VND 26,419 billion
April 23, 2024 – TPBank also proposed to issue a maximum of 440.3 million new shares to pay dividends to shareholders at a rate of 20% (shareholders owning 100 shares on the record date will receive 20 new shares). The source of implementation is from the undistributed profit after setting up funds up to December 31, 2023. After the issuance, TPBank’s charter capital will increase by more than VND 4,403 billion to VND 26,419 billion.
The capital increase will be implemented after the AGM approves. The implementation time will depend on the review and approval process of the competent state management agency and ensure compliance with current regulations.
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