Renaming to Loc Phat, LPBank has "fortune" when profit in the first quarter of 2024 increased by 84%

Lien Viet Post Joint Stock Commercial Bank (LPBank - HoSE: LPB) has just announced its business results for the first quarter of 2024 with net interest income of VND 3,464 billion, an increase of nearly 25% over the same period last year.

LPBank's non-interest income also recorded a strong increase when net profit from service activities reached nearly VND 819 billion, an increase of 3.6 times compared to the first quarter of 2023. Foreign exchange trading activities also recorded a slight increase of VND 3 billion compared to the same period last year to VND 148 billion. Net profit from other activities of the bank also reversed from a loss of VND 11 billion last year to VND 27.8 billion.

Only the bank's investment securities trading activity recorded a loss of VND30 billion, while in the same period last year, this activity brought LPBank a profit of VND40 billion.

During the period, the bank reduced its credit risk provisioning costs to nearly VND215 billion, a slight decrease of 4% compared to the same period last year. As a result, LPBank reported pre-tax profit of VND2,886 billion, up 84%; corresponding after-tax profit reached nearly VND2,299 billion, up nearly 85% compared to the same period last year.

In 2024, LPBank set a pre-tax profit target of VND 10,500 billion. Thus, by the end of the first quarter of 2024, the bank had achieved 27% of the set target.

According to LPBank, the reason for the increase in profit compared to the same period last year is mainly due to the improvement in the world and domestic economic situation, the business activities of many individuals and enterprises have begun to recover and need additional working capital for production and business activities. The bank has disbursed loans to meet capital needs for the economy, leading to an increase in net interest income compared to the same period last year.

Export orders of manufacturing enterprises improved, leading to increased demand for foreign currency capital. Banks provided foreign exchange services to meet actual requirements, leading to increased income from foreign exchange trading activities.

At the same time, LPBank deployed new products and enhanced domestic and international payment services, increasing service income.

As of March 31, 2024, LPBank recorded total assets of nearly VND 406,764 billion, an increase of 7% compared to the beginning of the period. Of which, deposits and loans to other credit institutions of the bank increased by 20% compared to the previous year to VND 42,176 billion, customer loans reached VND 307,687 billion, an increase of 12% compared to 2023. Meanwhile, deposits at the State Bank decreased from VND 14,578 billion in 2023 to VND 11,256 billion.

As of this date, customer deposits at LPBank reached VND 261,994 billion, up 10% over the previous year. Deposits at other credit institutions were VND 53,823 billion, up 14% over the end of 2023.

Regarding loan quality, LPBank's total bad debt at the end of the first quarter of 2024 was VND 4,267 billion, an increase of 16% compared to VND 3,689 billion at the beginning of the year.

Mainly due to substandard debt (group 3 debt) increasing from nearly VND 813 billion to nearly VND 1,107 billion and debt with the possibility of losing capital (group 5 debt) increasing from VND 1,169 billion to VND 1,589 billion, both increasing by 36% compared to the beginning of the year. As a result, the ratio of bad debt/outstanding loans increased from 1.34% to 1.39%.

On April 17, LPBank's 2024 Annual General Meeting of Shareholders approved the name change to Loc Phat Vietnam Joint Stock Commercial Bank. The English name is Loc Phat Vietnam Joint Stock Commercial Bank. Thus, the English abbreviation LPBank remains unchanged.

LPBank representative shared at the Congress: "The Bank's name change marks an important turning point in the current period to realize the strategy of strong and comprehensive change, towards the goal of sustainable development and prosperity".

The name "Loc Phat Bank" in the concept of East Asians also means creating development, wealth, luck, prosperity and prosperity .

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