The Board of directors (BoD) of Tien Phong Commercial Joint Stock Bank (TPBank) (stock code: TPB) has just announced information to buy up to 10 million shares (equivalent to 1.17 percent of charter capital) as treasury shares. Accordingly, the transaction period is expected to be from March 20 to April 18, through order matching and negotiation.
The BoD of the bank said that the purpose of repurchasing treasury stocks was to reduce the number of outstanding shares, support transactions, and increase shareholder value. The implemented capital was taken from undistributed after-tax profit.
Currently, TPB is traded at around 21,000 dong per share. It is estimated that at this price range, the bank will have to spend about 210 billion dong to collect treasury shares.
It is expected that on April 17, TPBank will hold the Annual general Meeting of Shareholders in 2020. The agenda of the meeting includes the reports of the Board of directors, the Board of Management and the Supervisory Board, the annual financial statements of 2019, the 2019 profit distribution plan and other issues under the authority of the general Meeting of Shareholders.
It is known that at the end of 2019, TPBank’s profit before tax reached 3.868 trillion dong, an increase of 71.3 percent compared to the previous year and reached 121.75 percent of the plan; total fund mobilisation in 2019 reached over 147 trillion dong, up 24 percent compared to 2018; credit growth was stable with outstanding loans of nearly 102 trillion dong, up over 20%; bad debt ratio was 1.3%. Also in 2019, TPBank made full provision for risks in accordance with regulations, in addition, it also made a sufficient provision to settle all bad debts sold to Vietnam Assets Management Company (VAMC) with a total amount of over 700 billion dong.
