Affirming the position of retail banking
Lien Viet Post Bank (LPBank - stock code LPB) announced its preliminary business results for 2023 with a profit exceeding VND 7,000 billion, up 24% over the previous year, continuing to be in the top of the industry in terms of operating efficiency with a return on equity (ROEA) of 19.16%. Compared to the business plan assigned by the General Meeting of Shareholders, LPBank excellently completed 117%.
Going into business results, as of December 31, 2023, LPBank's total assets reached more than VND 382,953 billion, an increase of 17% compared to the beginning of the year. Capital mobilization activities in market 1 reached VND 285,342 billion. Credit growth reached VND 39,686 billion at a rate of 16.83%, in line with the limit allowed by the State Bank.
In particular, in the fourth quarter of the year, LPBank resolutely dealt with bad debt and initially achieved some positive results. As of December 31, 2023, the bank's bad debt ratio reached 1.26%, lower than the same period (1.45%) and much lower than in the third quarter of 2023. This ratio puts LPBank in the top banks with the lowest bad debt in the industry. In particular, LPBank is one of the rare banks not affected by corporate bonds.
Bank prioritizes retail, rural agriculture
In 2023, in order to improve financial capacity, increase competitiveness in the process of international economic integration, meet shareholders' expectations and maximize benefits for customers, LPBank completed the plan to increase charter capital to more than VND 25,576 billion, an increase of 48% compared to the beginning of the year. The bank is in the top banks with the largest charter capital in the banking system in Vietnam.
Over the years, LPBank has consistently developed in the direction of retail banking based on exploiting network strengths, especially in rural and remote areas where people have little access to banking and financial services and are easily affected by "black credit".
Up to now, LPBank is “present” in all communes, districts and towns across the country, with a network spanning 63 provinces and cities with more than 1,200 transaction points. The strength of the network is one of the main driving forces for the growth of capital mobilization from the population; retail lending of the whole bank and is the strategic spearhead in the following years.
Putting customers at the heart of digital transformation
In particular, in the process of digital transformation - digitizing products and services, LPBank takes customers as the center of digital transformation, as a measure of digital transformation results through added utilities and user experience.
In 2023, LPBank will invest heavily in technology and digital transformation, pioneering the application of modern technologies in business and management such as eKYC identification, NFC contactless payment, deploying Datalake/DataWarehouse Data Management platform, Payments solution, Treasury solution (front-to-back), Lienviet24h omni-channel banking platform... and upgrading the core banking system to the T24 system of the prestigious financial solutions company Temenos.
It can be said that the goal of enhancing customer experience is always at the center of every action, not only maintaining the love and trust of existing customers but also strongly attracting new customers to LPBank.
Social Engagement in Business
After 15 years of construction and development, in addition to affirming its position and strong development capacity, LPBank always focuses on social security work. "Integrating society into business" is the Bank's long-term motto.
In 2023, LPBank made many positive contributions to the community and society through direct social activities, sponsorship activities, and charity movements.
In the context of economic difficulties, LPBank has repeatedly implemented interest rate reduction support packages for individual customers, corporate customers and especially production and business customers in accordance with the orientation of the National Assembly, the Government and the State Bank. In addition, the bank also implemented programs to exempt and reduce fees for small and medium enterprises, export enterprises, individuals...
In particular, sustainable growth and promoting green growth are among the bank's strategic business goals.
In addition to preferential loans for production and business, LPBank prioritizes providing credit for green sectors such as renewable energy, clean energy, low-carbon production and consumption industries, and climate change adaptation, bringing added value to the community and society.
In August 2023, LPBank signed an Agreement to provide sustainable development consulting services with EY - one of the leading ESG consulting firms in the world.
“ 2023 is the year LPBank builds comprehensive foundations in terms of financial capacity, organizational model, technology, corporate culture and human resources. These are the foundations for the Bank to move into a period of strong growth and achieve comprehensive efficiency in the coming time, ” affirmed Mr. Ho Nam Tien, General Director of LPBank.
Bao Anh
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