NATIONAL ECONOMICS UNIVERSITY

EXCELLENT EDUCATIONAL PROGRAM

BACHELOR’S THESIS

Major: CORPORATE FINANCE

Topic: IMPROVING CREDIT EFFICIENCY FOR INDIVIDUAL CUSTOMERS AT TIEN
PHONG COMMERICAL JOINT STOCK BACK – HOAN KIEM BRANCH.

NGUYEN GIA KHANH

HANOI, 2023.
CONTENTS
CHAPTER 1: Theoretical framework.
CHAPTER 2: Current situation of credit efficiency
at TPBank Hoan Kiem.
CHAPTER 3: Orientations and solutions.
CHAPTER 1:
THEORETICAL
FRAMEWORK
CONCEPTS
“Credit”: refers to the lending-borrowing
relationship between entities.
“Bank credit”
“Efficiency”: shows the correlation between the
results of credit activities and certain costs of
operation to achieve those results.
CRITERIA
TO Loan to deposit ratio (LDR) = Total loans / Total
deposits *100
EVALUAT Ratio of income from credit activities = Income from
E CREDIT credit activities / Total income * 100
Net interest margin (NIM) = Net interest income /
EFFICIEN Total debt outstanding * 100

CY.
FACTORS AFFECTING CREDIT
EFFICIENCY
1. The economic environment factor.

2. Political, social, and legal environment factors

3. Scientific and technical development level.

CHAPTER 2
General information:

Name of the enterprise: TIEN PHONG COMMERCIAL

JOINT STOCK BANK 

Charter capital (as of 2021): VND 15,817 billion.

Head of the Board of Directors: Mr. Do Minh Phu

TPBank’s Vision: To become one of the leading commercial
banks in Vietnam with cutting-edge products and services, to
contribute to the prosperity of Vietnam.
TPBank’s mission: Provides perfect financial products and
services for Customers and Partners, based on advanced,
modern, and highly efficient technology infrastructure.
 Capital mobilisation at TPBank
Hoan Kiem BUSINESS
RESULTS
2900

2800

2700
OF THE
2600

2500
BRANCH
2400
FROM
2300

2200
2020-2022
2100
2020 2021 2022
OUTSTANDING LOANS BY
ECONOMIC SECTORS
  2020 2021 2022
  Amount Proportion Amount Proportion Amount Proportion
Individual 4076 88,8 4565 86,3 5226 87,3
customers
Corporate 513 11,2 722 13,7 758 12,7
customers
Total outstanding 4589 5287 5984
loans  

 
THE PROPORTION OF CREDIT
LENDING AT TPBANK FROM 2020-
2022.
Lending 2020 2021 2022
purposes

  Amount % Amount % Amount %

Auto loans 1036 25,4% 1185 26% 1411 27%
Home loans 2067 50,7% 2510.7 55% 2596 50%
Business 556 13,6% 456 10% 783.9 15%
loans
THE PROPORTION OF CREDIT
LENDING AT TPBANK FROM 2020-
2022 ( CONT.)
Proprotion of individual loans to Total loans of the branch
Loans for individual customers Total loans of the branch
100%

100%
100%
88.80%

87.30%
86.30%

20 20 20 21 202 2
 The maintenance of credit efficiency over
a rough period
The rise of in total capital mobilised from
ACHIEVEM individual customers.
ENTS The proportion of individual customer
loans to total loans remained very high.
The branch’s efforts to keep the products
diverse.
 The limitations of the internal credit
rating system.
LIMITATIO The process of post-lending examination
NS AND leaves a lot to be desired.
THEIR Bad debts and overdue debts tend to
SOURCES remain at quite high levels.
=> The main source of the limitations lies
in human resources.
ORIENTATIONS
“Man is a future-oriented animal, he gets the best from
himself only when he has something to look forward to.” –
Mike Mentzer.
- Strived to be the branch with the highest revenues from
retail operations.
- Focusing on credit retail products.
- Keep its market share in the Old Quarter area
- ….
SOLUTION
S TO
IMPROVE
THE 1. Upscaling the individual customer
CREDIT base.
EFFICIENC 2. Promote internal inspection and
Y AT supervision in the branch
TPBANK
HOAN
KIEM
 THANK YOU
FOR LISTENING