The Board of directors of Tien Phong Commercial Joint Stock Bank (TPBank) has submitted to the Annual general Meeting of Shareholders the business plan for 2020.
Accordingly, after taking into account the impact of the Covid-19 pandemic, TPBank sets a separate pre-tax profit of 4.068 trillion dong in 2020, up by five percent compared to 2019.
To realise this profit plan, TPBank targets a credit growth of 15%. However, customer loan growth is set at only nine percent fairly low compared to the average 27 percent in the last three years. In return, the bank will boost investment in bonds of economic organisations with targeted loan balance of 12 trillion dong by the end of 2020, 2.5 times higher than the end of 2019.
In the context when the continuous decrease in lending interest rates as requested by the State Bank of Vietnam (SBV) has made the profit margin of lending activities to decrease significantly, the acceleration of corporate bond investment allows TPBank to cover the above loss because corporate bonds have fairly high and relatively stable yields.
TPBank expects to control bad debt ratio below 2.5 percent this year. This ceiling level is fairly high compared to the 1.28 percent recorded in the end of 2019.
In the year, TPBank aims to expand mobilisation fund by seven percent, in which customer deposits will increase by 15%, and deposits and borrowings of other credit institutions will fall by 13%. This helps the bank further strengthen its capital structure.
TPBank’s Board of leaders said that in 2020, the bank expects to complete the restructuring plan associated with bad debt settlement in the period of 2016 2020, continue to carry out preferential interest rate packages to support customers hit by the Covid-19 pandemic.
At the same time, the bank will promote retail banking activities, prioritise the development of unsecured loan products, international credit and debit cards, targeting big customers along with that, the bank will boost life insurance sales through deploying and completing models of personnel specialising in selling insurance, building infrastructure to provide online insurance products.
TPBank plans to open five new branches, five new transaction offices and at least 100 LiveBank points in 2020, raising the total LiveBank points to about 300 350.
Regarding dividends, the bank presented shareholders a plan to pay dividends at 20 percent for year 2019.
