Vietnamese private lender TPBank says the impending acquisition of fund management firm Vietnam Fortune Capital (VFC INC.) will further its efforts to become a modern financial group.
VFC INC. will be acquired for VND125 billion ($5.16 million), and under a decision issued by the State Bank of Vietnam on November 22, TPBank must complete the capital contribution and share purchase within 12 months from the date of approval.
TPBank elaborated that the acquisition was part of its development strategy for the 2023-2028 period (with vision to 2035), under which it aims to become a modern financial group engaged in banking, finance, securities, payment intermediary services and supply of diverse financial products and services on modern, advanced technology platforms, delivering best benefits and experiences to customers.
It has become the first commercial bank in the country to simultaneously apply both Basel III and International Financial Reporting Standards (IFRS) 9.
For the last two years, it has been the leading credit institution in Vietnam as ranked by The Asian Banker. Brand evaluation world leader Brand Finance has ranked TPBank among the top four private banks in Vietnam in terms of brand value.
With its special advantages in management, finance and business expertise, it can fully tap the potential of the fund management company and bring many investment products to the market, connecting services and gaining long-term overall benefits, the lender said.
As a pioneer bank in digital transformation and creating distinctive services, TPBank said it will gradually perfect and digitize VFC INC.’s products in order to integrate them into the "Digital Bank" ecosystem.
Building on more than a decade of continuous growth and stronger foothold in the market, it will continue to “conquer new peaks” and deliver more value to customers and partners, the bank said.
TPBank earned a post-tax profit of VND2.71 trillion ($112.5 million) in the first half of 2023, down 10.7% year-on-year, according to the bank’s financial statements. Its net interest income fell 6.8% year-on-year to VND5.47 trillion ($227.2 million)
From end-2022 to June 2023, the lender’s total assets climbed 13.21% year-on-year to VND343.41 trillion ($14.3 billion). Its outstanding loans went up 10% to VND177.11 trillion ($7.4 billion), while total deposits increased 2.1% to VND199.13 trillion ($8.3 billion).
TPBank has set a pre-tax profit target of VND8.7 trillion ($370.37 million) for 2023, a year-on-year increase of 11%; and plans to raise total assets value to VND350 trillion ($14.9 billion), up 7% from 2022.