TPBank increases charter capital, pays dividends to shareholders at 20% rate

Accordingly, TPBank will increase its charter capital by issuing a maximum of 440.3 million new shares to pay dividends to shareholders at a rate of 20%, equivalent to shareholders owning 100 shares will receive 20 additional shares. This capital increase plan was approved by the bank's shareholders at the 2024 Annual General Meeting of Shareholders.

With this issuance, TPBank's charter capital will increase from VND 22,016 billion to a maximum of VND 26,419 billion.

TPBank representative said that the new capital source will be considered by the bank for investment in technical facilities, development of technology systems and expansion of business network. At the same time, this is also a source of additional medium- and long-term capital to serve business activities, sustainable development and meet the interests of shareholders, creating more favorable conditions for the bank to continue to support capital for both businesses and individuals.

According to the second quarter financial report, TPBank achieved VND3,733 billion in pre-tax profit, up 10.3% over the same period last year. In particular, all business segments grew positively compared to the same period, helping the return on equity (ROE) ratio continue to remain at a relatively high level of 17.5%.

TPBank's quality CASA capital ratio continues to be consolidated, reaching over 22% (as of June 30, 2024). According to the latest report from KB Securities Vietnam Joint Stock Company (KBSV), TPBank's CASA ratio is the 5th highest in the industry thanks to its pioneering strategy in digital transformation to attract young customers. Also thanks to taking advantage of this CASA advantage, TPBank's capital cost remains low.

The bank's total separate operating income in the second quarter reached more than VND8,900 billion, up nearly 18% over the same period in 2023.

At the end of the second quarter, TPBank's capital adequacy ratio (CAR) according to Basel III standards (the most comprehensive and rigorous risk management standards in the banking industry today) reached 13.01%, with equity capital reaching over VND41,000 billion. In addition to continuing to proactively control risks, cover bad debts, and avoid negative impacts in the future by increasing provisions, the increase in charter capital will certainly contribute to improving TPBank's safety indicators.

Continuously improving financial capacity and sustainable development, TPB shares are continuously priced at an attractive level. Since the beginning of the year, TPB shares have increased by about 4%. Recently, TPBank completed paying cash dividends at a rate of 5%, equivalent to shareholders owning 1 share will receive 500 VND. The total amount paid by the bank is more than 1,100 billion VND.

In the latest report, KBSV experts set the target price for TPB shares in 2024 at VND 22,700/share, and recommended BUYing TPB shares.

With its thriving business performance and transparency in information on the stock market, TPBank has continuously entered many prestigious rankings. At the announcement ceremony of the Top 500 Largest Enterprises in Vietnam in 2023 (VNR500), TPBank was honored to become one of the 50 prestigious and effective public companies (VIX50) in 2024.

Most recently, surpassing 708 units in the "Information Disclosure Survey" round and 424 units in the "IR Awards Nomination" round, TPBank continued to be listed in the Top 10 best enterprises in the stock market to be nominated for IR Awards 2024 for the title "Enterprise with the best IR activities of the year". This is a prestigious award co-organized by Vietstock in collaboration with VAFE Association and FiLi Magazine annually since 2011.

Source: https://www.congluan.vn/tpbank-tang-von-dieu-le-tra-co-tuc-cho-co-dong-ty-le-20-post309271.html