AsemconnectVietnam - A remarkable point in TPBank's financial report for the first quarter of 2023 showed that the Bank's bad debt increased by 84% in 3 months to VND2,496 billion.

Tien Phong Commercial Joint Stock Bank (TPBank) has just announced its financial statements for the first quarter of 2023 with pre-tax profit of VND1,765 billion, an increase of 8.7% over the same period in 2022, profit after tax of VND1,413 billion, up 8.7%. Net interest income decreased by 3.34% y/y, at VND2,737 billion due to a sharp increase in interest expenses, especially paying interest on deposits to customers, while interest income from loans increased slightly. However, net profit from service activities increased by 36% to VND695 billion, net profit from foreign exchange business increased by 370% to VND151 billion.
Total operating income in the first quarter of 2023 reached VND3,660 billion, up 1.2% over the same period. Operating expenses increased by 27.6% to VND1,579 billion. Accordingly, net operating profit (before provisioning) decreased by 12.5%, recorded at VND2,079 billion. Notably, provision expense for credit risk decreased by 58% y/y to VND315 billion.
As of March 31, 2023, TPBank's total assets reached VND343,522 billion, up 4.5% compared to the beginning of the year. Outstanding loans to customers increased by 7.3% to VND172,753 billion. Customer deposits increased by 3.1%, reaching VND200,998 billion. Notably, TPBank's bad debt increased by 84% in 3 months to VND2,496 billion. In which, group 3 debt (substandard debt) increased sharply by 212% to VND1,199 billion. Group 4 debt (doubtful debt) increased 64% to VND764 billion. Group 5 debt (debts likely to lose capital) increased by 6% to VND533 billion. As a result, the ratio of bad debt/total outstanding loans to customers at the end of March jumped to 1.45%, while at the beginning of the year, this figure was only 0.84%.
N.Nga
Source: VITIC/Tinnhanhchungkhoan