TPBank targets a profit of VND8.2 trillion (US$356.2 million) in 2022, a 36 per cent year-on-year increase, according to documents released for its upcoming general shareholder meeting.

Its total assets are expected to increase 20 per cent from the end of last year to reach VND350 trillion. The bank also planned to increase its chartered capital to more than VND21 trillion by issuing over 527 million shares to existing shareholders.

Last year, TPBank was one of the banks with the lowest bad debt ratio of 0.81 per cent in the banking system. In 2022, the bank targeted maintaining the low bad debt rate at less than 1.5 per cent.

Nguyen Hung, TPBank’s General Director, said: “With credit activities, we still have to carefully consider the level of risk as recommended by the State Bank of Vietnam because besides ensuring effective business, safe credit quality is still given top priorities at TPBank."

TPBank is currently the only bank in Viet Nam that applies Basel III standards and strictly manages capital adequacy and liquidity indicators. Accordingly, the loan-to-deposit ratio is at 60 per cent, and the capital adequacy ratio, according to Basel III is over 12 per cent, much higher than the minimum 8 per cent regulated by the central bank. The non-performing loan ratio is strictly controlled, reflecting the TPBank’s credit and safe asset quality.

With outstanding growth in business performance in 2021, TPBank aims to achieve a return on equity of 22.41 per cent and a cost to income ratio of 33 per cent in 2022. TPBank has performed well in both equity and credit quality, which is highly appreciated according to the CAMELS model – an international standard.

The digital innovation helps TPBank increase its customer base, approaching the top banks in the market. With the launch of a series of digital products and services designed for specific customer segments and a diverse digital ecosystem, the bank has made it easier for customers to access banking services.

Early technology investment also helped TPBank minimise operating time and costs as 80 per cent of its banking operations are performed based on data analysis and decision-making.

Meanwhile, 80 per cent of products and services apply technology, AI, and Big Data, using 300 robots to help reduce manual and reporting work. Notably, a representative of TPBank said that the bank reduced operating costs by up to 50 per cent thanks to the use of chatbots and virtual assistants. — VNS