In the first 9 months, total operating income of TPBank reached 7,103 billion, up 22.8% over the same period last year. Operating expenses increased only 19.6%, lower than the bank’s revenue growth rate and the cost to income ratio (CIR) also decreased significantly.
The bank’s pre-tax profit was 3,024 billion dong, up 25.8% over the same period last year and equivalent to 74% of the annual plan approved by the AGM.
Total assets increased by nearly 26% over the same period in 2019, reaching over 193,000 billion VND. Total deposits increased by 25.24%, reaching 173,445 billion VND. Credit outstanding balance reached 124,000 billion VND, within the growth target limit approved by the State Bank (SBV).
In parallel with promoting business activities, TPBank has drastically applied risk control measures in the context of a shaking economy, especially when TPBank was one of the first banks to fully implement risk treatment according to Basel II standards.
TPBank’s bad debt ratio, by the end of September, continued to be controlled below 2%. Contrary to previous concerns when the economy slowed down, the low NPL ratio indicated TPBank’s success in controlling and preventing risks. TPBank is also one of the banks with high capital adequacy ratio (CAR) in the market. By the end of August, TPBank’s CAR was 10.81% according to Basel II standards, much higher than the level of 8% as regulated by the State Bank of Vietnam.
The bank’s 9-month profit increased by more than 25%. Photo: TPBank.
TPBank maintains effective operations on the sustainable foundation built over the years. Flexible improvisation to the new challenge helps to make the best use of the advantages of a digital bank to diversify revenue sources. Income from service activities reached more than 809 billion, accounting for 11.4% of total operating income and 26.8% of total profit before tax. The biggest contribution to service revenue comes from payment, service fee collection and insurance service business.
Profit growth and capital adequacy have strengthened its position as one of the most efficient and safest banks in the system, with return on equity (ROE) and rate of return. Return on total assets (ROA) is 22.63% and 1.80%, respectively.
This is a sustainable growth in the context that the domestic economy has faced two outbreaks of Covid-19 disease, leaving many businesses in a difficult situation.
In order to help customers overcome difficult times, at the same time, following the instructions of the Prime Minister and the State Bank, from the beginning of the year until now, TPBank has implemented many customer support programs. Specifically, TPBank has launched a preferential interest rate program, 1.5-2.5% lower than the current interest rate, for new corporate and individual customers, with total outstanding loans up to 12,000 billion.
Along with debt restructuring and principal rescheduling measures, the bank has reduced interest rates by 0.5 – 1% for existing customers severely affected by the pandemic, with total outstanding loans to be viewed consider up to 30,000 billion. TPBank has also contributed over 10 billion dong to join hands with the whole country to repel the Covid 19 epidemic.
The bank’s efforts since the beginning of the year have been recognized by domestic and international institutions.Bank of New York Mellon recently honored TPBank with the award for “ Straight Through Processing ”. Award), and Ripple awarded TPBank the SWELL Global award – the first bank in Vietnam to successfully apply blockchain technology to international money transfers from the end of 2019.
TPBank will achieve the profit target set out this year, creating a solid springboard for sustainable growth in the coming years.
Source: ndh.vn – Translated by fintel.vn