TPBank posts US$162.5 million profit in H1

Saturday, Jul 09, 2022 06:40

Transactions at TPBank. It is the only bank in Viet Nam currently applying Basel III standards. — Photo courtesy of the bank

TPBank achieved a profit of nearly VND3.8 trillion (US$162.5 million) in the first six months, increasing 26 per cent from last year.

The bank released its business results for the first half with many outstanding growth targets met.

Its total assets in the six months reached more than VND310 trillion, posting a 28 per cent year-on-year increase and meeting 89 per cent of the target. This growth is much higher than its credit growth in the period showing that TPBank has not focused too much on credit but has increased profit in service and non-credit activities.

TPBank's total operating income reached VND8.2 trillion, up 31 per cent over the same period last year.

Net profit from services reached VND1.2 trillion, representing a 72 per cent year-on-year increase thanks to boosting card issuance, account opening, insurance cross-selling and payment activities.

Net interest income from services accounted for 14.6 per cent of its total income, up nearly 3.5 per cent compared to the corresponding period last year.

As the only bank in Viet Nam currently applying Basel III standards, it has strictly managed capital adequacy and liquidity indicators.

Accordingly, the bank's capital adequacy ratio as of May 31, 2022, reached 13.1 per cent, much higher than the minimum requirement of 8 per cent of the State Bank of Viet Nam.

The non-performing loan (NPL) ratio was strictly controlled at less than 1 per cent, reflecting TPBank's credit and safe asset quality, with a diversified credit portfolio, minimising concentration risks, especially the impact of the pandemic.

A recent report by Vietcombank Securities said: "The strategy of focusing on young customers helps TPBank's current account savings account (CASA) grow. It is a pedestal to help the bank maintain deposit costs in the face of a slight increase in terms of deposit interest rates. In 2015-21, TPBank witnessed CASA quadruple growth, from nearly VND7.5 trillion to nearly VND31 trillion."

By the end of June, TPBank added nearly 1.5 million new customers, equivalent to a growth of 25 per cent compared to the end of 2021, bringing the total number of customers to more than 6 million.

Nguyen Hung, TPBank CEO, said: "In recent years, TPBank has invested trillions of dong each year in technology and digital banking. Despite determining that this is an expensive game, TPBank has always continuously invested in creativity, innovation, and technology updates, thereby launching breakthrough products based on understanding customers and enhancing security and safety to bring customers the most satisfying and convenient experience."

Viet Nam Report voted TPBank one of the Top 10 most prestigious commercial banks in Viet Nam in 2022. It has been honoured in the list for four consecutive years.

In addition, the bank was named as one of the Top 50 most prestigious and effective listed companies by Forbes magazine. — VNS

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