TienPhongBank is in better financial health following a restructuring process.
The bank was one of nine weak banks restructured under State Bank’s requirement. In 2012, TienPhongBank reaped an after-tax profit of more than VND116 billion ($5.6 million) beating many analysts’ expectations.
The bank’s capital adequacy ratio was higher than 21 per cent. Especially when the bank successfully raised chartered capital to VND5.55 trillion ($266.5 million) at the end of last year, this ratio climbed to 40.15 per cent.
Although in 2012, the bank’s total outstanding loans grew at 20.6 per cent, its non-performing loan was controlled at 3.66 per cent, lower than the banking system’s ratio of 8.8 per cent.
The lender also attracted more deposits with a mobilisation growth ratio of 40 per cent and total customers increased sharply by 47.5 per cent on-year.
Do Minh Phu, chairman of Doji Gold and Gems Group, will remain TienPhongBank chairman for 2013-2018.
In 2012, Doji became TienPhongBank’s major shareholder with a 20 per cent stake. The participation of Doji helped fasten TienPhongBank’s restructuring process and add gold business to one of TienPhongBank’s major business activities.
According to the bank’s general director Nguyen Hung, heading to 2018, the bank planned to get a profit of more than VND1 trillion ($48 million), equal to an average profit growth of 30 per cent per year.
To the end of 2015, the banks aiming at covering all the losses happened prior 2012, reaching 100 transaction points, becoming the leading bank in the gold and e-banking business.
The largest shareholders of the banks are Doji Group, FPT Corporation, MobiFone, Vietnam National Reinsurance Corporation, and Singaporean financial group SBI Ven Holding.
The bank’s restructuring plan was submitted to State Bank on June 19, 2012 and was approved on July 2, 2012.