TPBank’s charter capital approved to increase to VND15.8 trillion

07-Dec-2021 Intellasia | NDH | 5:02 AM Print This Post

On December 2nd 2021, the Governor of the State Bank of Vietnam (SBV) has issued Official Letter No.8510 approving the increase of Tien Phong Commercial Joint Stock Bank (TPBank)’s charter capital by 4.1 trillion dong by issuing shares from the equity source, bringing the total charter capital to over 15.817 trillion dong. This method was approved by the bank’s general meeting of shareholders on November 1st 2021.

This is the second time this year TPBank has been approved by the SBV to increase charter capital. Previously, in the third quarter (Q3), TPBank raised its charter capital by one trillion dong, increasing the total charter capital to more than 11.716 trillion dong, through a private placement.

The approval of the new charter capital level of over 15.817 trillion dong will help TPBank strengthen its Capital Adequacy Ratio (CAR), improve corporate capacity and increase the bank’s resistance to the difficulties of the economy during and after the epidemic.

After the first three quarters of 2021, TPBank fulfilled 75 percent of its pre-tax profit plan for the whole year, equivalent to 4.350 trillion dong, 43 percent higher than the same period of last year. The bank’s total assets reached 260.328 trillion dong, up by 35 percent over the same period of 2020. The CAR of TPBank was recorded at 13.43%, much higher than the minimum level of eight percent prescribed by the SBV.

TPBank’s credit growth in the first nine months of 2021was 15%, a positive level in the context when many major economic centers across the country suffered from the prolonged social distancing period. The bank’s net interest income from services also rose by 30 percent to 1.052 trillion dong. The bad debt ratio was controlled at a very low level of only 1.02%.

Recently, TPBank became the first Vietnamese bank to announce the satisfaction of the Basel III and IFRS 9 standards. The bank’s representative said that according to the requirements of Basel III standards, the bank will have to maintain more capital reserves but in return, will ensure liquidity and sufficient capital buffer to withstand market fluctuations, and at the same time improve the bank’s position and reputation and access to international markets.

Positive business results, regular updates and application of international standards have helped TPBank achieve many sweet results.

Recently, TPBank was honoured as an excellent business in Asia and an inspiration brand at the ceremony honouring Asia Pacific businesses held by Enterprise Asia. This is the second time the bank has been named by Enterprise Asia in the Corporate Excellent Category by Enterprise Asia. TPBank has always been a pioneer in applying and implementing many digital banking products, helping to create habits and inspire digital transactions to millions of Vietnamese customers.

 

Category: Finance, Vietnam

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