14:51 (GMT +7) - Wednesday 21/10/2020

Banking & Finance

TPBank to increase charter capital by 5.2%

Released at: 11:33, 08/08/2016

TPBank to increase charter capital by 5.2%

Photo: TPBank

Increase approved by SBV after also gaining approval at bank's April AGM.

by Hung Nguyen

TPBank has received approval from the State Bank of Vietnam (SBV) to increase its charter capital to VND5.84 trillion ($261.86 million) from VND5.55 trillion ($248.86 million).

The 5.2 per cent increase was approved at the bank’s 2016 annual general meeting (AGM) in April.

While a representative from the bank preferred not to elaborate on what the bank will do with the additional capital the statement from its AGM noted that “TPBank will issue shares to the International Finance Corporation (IFC).”

According to a resolution from the AGM, some 29.2 million additional shares, with a dividend of 8.5 per cent per annum, will be issued to the IFC, the World Bank’s private arm.

These additional shares can be convertible to normal shares after five years and returnable in three years. In mid-April the IFC increased its credit line to TPBank from $10 million to $30 million for financial support to small and medium-sized enterprises (SMEs).

TPBank aims to have total assets of VND91 trillion ($4.08 billion) this year, an increase of 20 per cent from 2015’s VND76.2 trillion ($3.41 billion). It also targets increasing its total mobilized capital by 23 per cent to VND84.5 trillion ($3.78 billion), against VND68.9 trillion ($3.08 billion) last year.

Total deposits are to rise by 62 per cent to VND63.8 trillion ($2.86 billion), from VND39.5 trillion ($1.77 billion) in 2015.

In the first quarter TPBank’s total assets were reported at VND73.59 trillion ($3.29 billion), down 3 per cent since December 31, 2015. Pre-tax profit was VND93.03 billion ($4.17 million), 30 per cent less year-on-year.

Operational costs in the first quarter were VND239.30 billion ($10.73 million), 37 per cent higher year-on-year. Its risk provision was also higher, at VND73.73 billion ($3.3 million), a three-fold increase year-on-year.

The bank’s website lists five shareholders: DOJI Gold and Gems Group, FPT Corporation, MobiFone, Vietnam National Reinsurance Corporation (Vinare), and Singapore’s SBI Ven Holding Pte. Ltd.

Mr. Do Minh Phu, Chairman of DOJI Gold and Gems Group, is currently the Chairman of TPBank.

User comment (0)

Send comment