Lienvietpostbank's own path in 15 years

Lienvietpostbank's own path in 15 years

Marking the 15th anniversary of its establishment and development on March 28, 2023, Lien Viet Post Joint Stock Commercial Bank (Lienvietpostbank - stock code: LPB) has become one of the largest joint stock commercial banks in Vietnam with a charter capital of VND 17,291 billion and a network covering 63 provinces and cities nationwide.

Lienvietpostbank's private profit in 15 years image 1

Lienvietpostbank's private profit in 15 years image 2

The financial report for the fourth quarter of 2022 shows that LPB still achieved positive results despite the volatile domestic and foreign financial market context. Accordingly, net interest income remained almost flat, unchanged compared to the same period, reaching VND 2,772 billion, but pre-tax profit still grew positively, reaching VND 867 billion (up 3.8%), after-tax profit recorded VND 668 billion, up 3.6%.

Good control of operating costs and the efficiency of the service sector are notable points in LPB's business results report for the fourth quarter. Specifically, the bank's service income during the period reached VND1,106 billion, net profit from this sector reached VND882 billion, a sharp increase compared to the same period (2.8 times higher). Meanwhile, operating costs were reduced by nearly VND258 billion to VND1,507 billion. This is also the basis for the bank to have resources to support customers and improve business performance.

Lienvietpostbank's private profit in 15 years image 3

Closing 2022, LPB achieved VND 5,690 billion in total pre-tax accounting profit and VND 4,510 billion in after-tax profit, up 56% and 57% respectively over the previous year. Basic earnings per share (EPS) increased from VND 2,135 in 2021 to VND 2,671 in 2022.

Lienvietpostbank's private profit in 15 years figure 4

In 2022, LPB's credit structure will shift towards retail, with retail accounting for more than 65% of total annual credit growth. Along with maintaining core banking activities, LPB will promote insurance, card, digital banking services, etc.

Lienvietpostbank's private profit in 15 years figure 5

Currently, LPB is one of the joint stock commercial banks with the largest network in the country. Thanks to the exclusive exploitation of the post office transaction system of VNPost, combined with the strategy of developing online transaction channels - LienViet24h, LPB is the fastest growing retail bank in Vietnam 2022 as recognized by Global Business Outlook Magazine in 2022.

It can be said that when the urban market is fiercely competitive, the rural market will be a potential area that many banks will target in the near future. With cheap and sustainable deposits, rural areas where there is still a lot of retail space will help credit institutions have the opportunity to improve profits, adding financial space to support customers.

Lienvietpostbank's private profit in 15 years figure 6

LPB's capital structure in 2022 will generally improve significantly with an increase in charter capital, medium- and long-term capital, etc. The Bank also focuses on implementing capital adequacy assessment (ICAAP) to ensure safe and effective capital management through the use of modern calculation modeling tools. Also in the past year, LPB completed the implementation of the Basel III project, contributing to gradually improving financial capacity and risk management level to approach international standards.

Lienvietpostbank's private profit in 15 years figure 7

In a recent report, Viet Capital Securities Company (VCSC) raised LPB's 2023 after-tax profit forecast by 5.6% to VND5,100 billion (up 13.1% YoY), mainly due to a 4% increase in interest income (NII) due to a 14 basis point increase in NIM forecast and a 9.5% reduction in operating/business expenses.

Source