Group 5: Evaluating a Commercial Bank

Tran Thanh Hang Nguyen Thi Huong Giang

Duong Khanh Linh Dao Thuy Quynh
Nguyen Thi Ha Mi 1
 01 Overview
About, Mission, Specific Announcement

TABLE OF 02 Growth Prospect

Macro-economics effect, SWOT, Conclusion

CONTENTS 03 Ratios
Ratios analysis

Risk
04 Risks, Conclusion

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INTRODUCTION
  Was founded on May 5th 2008.
 Has been granted outstanding awards.
 Have branches in 16 provinces
 63 outlets, 72 ATM with 48 LiveBank
automated trading

ABOUT
TPBANK’S MISSION
Provides perfect financial products and services

Operates on secure, efficient platform, aiming at maximizing shareholder’s

benefits.

Creates optimal conditions for staff and promotes their creativity

Makes high commitment to social responsibility, community activities

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SPECIFIC
ANNOUNCEMENT
2017
 Mr. Ha Hong Sik - BOD Member and Mr. Kento Tokimori – BOS Member submitted
resignation letter

 HCM City Stock Exchange announced to have received registration for listing TPBank.

2018
 SBV announced the revision of licensing certificates for TPBank.

 TPBank was listed on HOSE.

 Board of Management approves the application for the termination of labor contract of Ms.
Bui Thi Thanh Huong

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GROWTH PROSPECT
 1. MACRO-ECONOMICS

INFLUENCES OF
ECONOMICAL
ENVIRONMENT

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 GDP & INFLATION
2015
 GDP increased by 6.68%
 Inflation rate was at 0.6%.
=> Recorded a sharp increase in
deposits of individuals and
households.
2016 2017
 GDP increased by 6.2%  Average CPI increased by
 Core inflation was basically 3.53%
controlled  The growth rate of TPBank
=> Contributed to stabilizing interest reached 22%, higher than
rates in the banking sector. industry average (18%).
=> Contributed to the growth of the
banking sector
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 EXCHANGE RATE AND
INTEREST RATE
2015
 Exchange rate: 4 times
adjustment. Banks have to
adjust their purchases and sales
 Interest rate: have not changed
much
2016 2017
 Exchange rate: the USD/VND  Exchange rate: considered to
exchange rate was high remain stable.
 Interest rate: both mobilization  The deposit rates: relatively
and lending are stable stable
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 2. INDUSTRY

INFLUENCES OF
ECONOMICAL
ENVIRONMENT

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 INDUSTRY
2015 2016 2017
 Banking sector’s performance  Bad debt rates  Banking sector’s performance saw
improved significantly continue to decline positive changes
 Circular No. 36/2014 introduced  TP Bank launched tech product in
a series of regulations on the market.
banking safety

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 3. OTHER CONDITIONS

INFLUENCES OF
ECONOMICAL
ENVIRONMENT

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 OTHER CONDITIONS
2015
 The State Bank of Vietnam
made timely adjustments,
limiting the damage to banks
2016 2017
 The post-Brexit and the  The world's economy
election of President recovered strongly.
Donald Trump
 The rise of the currency.
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FORCAST FOR THE
NEXT 5 YEARS
Scalability of services:
Potential to widen Fintech products
Network scalability:
Widen according to the growth of equity
Ability to increase customers:
Ability to increase a large number of customers, especially young segment

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RATIOS ANALYSIS
 PROFITABILITY RATIOS
Profitability ratios in 2016 ROA ROE NIM
14

12.08
12 11.47
11

10

8 7.46

4 3.56

2.44 2.38
2.09
2
1.2 1
0.62 0.42
0
TP Bank MB Bank SH Bank Industry
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SHARE PERFORMANCE

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 MOBILIZATIONS DEPOSITS
2015 2016 2017
1.24% 2.28%

43.70% 42.29% 33.37%

56.47%
57.30%
64.34%

Deposits from customer

Deposits and loans from of other credit institutions
Trusted Funds
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 RISK PROFILE
Credit Risk Interest rate Risk Liquidity Risk Exchange rate Risk

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Credit Risk
• NPL ratio is low => safe
• Provision for credit losses and allowances for
bank loans are high => ensure credit activities
• The2015 2016
ratio of net-charge-offs 2017
to total loansRequirement
and
CAR leases fell sharply
12.13% => sign of
9.79% reducingEqual
9.36% bad or
debt
more than 8%

=> Credit risk at TP Bank is not apprehensive.

Investors can feel secure when investing

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 TPB
 Has always maintained its liquidity
 Always adhered to the State Bank's liquidity

Liquidity Risk
regulations, built a liquidity risk management
framework and supervised liquidity risk.

2015 2016 2017 Requirement

Loan-deposit
ratio (LDR) 50.55% 60% 62.18% Maximum is 80%

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 Achievements
 One of the best performing retail banks
 One of the pioneers in Fintech
 Impressive operating results
 Always in line with regulations of SBV and financial institutions
 Prospect of further development

=> TP Bank is one of the good choices to invest

CONCLUSION
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THANK YOU FOR
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