LPBank said that, in addition to its core banking business, investing in listed stocks helps LPBank diversify investment channels and optimize shareholders' capital contributions.

Through assessment, the Board of Directors found that FPT shares of FPT Corporation have the potential to bring attractive profit margins and contribute to diversifying the bank's asset portfolio.

FPT is a large technology company with a sustainable business foundation and high growth rates maintained over a long period of time. FPT is increasingly moving up the technology value chain by focusing on AI, Cloud, Big Data and specialized fields with great development potential.

Furthermore, FPT is one of the few stocks that has maintained stable growth over the years and paid regular dividends. FPT has high liquidity and is a component of the VN30 index, representing leading stocks that are highly attractive to foreign investors in the medium and long term.

Therefore, LPBank's Board of Directors proposes to approve investment in FPT shares, with the expected maximum investment level being 5% of FPT's charter capital at the time of implementation.

FPT currently has a charter capital of over VND14,604 billion. In case LPBank successfully buys 5% of shares, it is expected that this bank will spend over VND730 billion on this deal.

In the session on September 19, FPT stock price is trading around 134,600 VND/share.

LPBank expects the transaction to be carried out in 2024 and 2025 or at a suitable time after approval from competent state agencies and the actual situation.

Pursuant to Article 67 of the Law on Credit Institutions 2024 and Article 27 of the LPBank Charter, the General Meeting of Shareholders has the right to decide on the plan to contribute capital and purchase shares in an enterprise where the capital contribution value and expected purchase price are worth 20% or more of the charter capital recorded in the most recent audited financial statement.

According to the plan, in addition to approving the proposal to purchase shares at FPT, the congress will elect additional members of the Board of Directors for the 2023-2028 term and approve the proposal on the plan to increase charter capital in 2024.

LPBank currently has a charter capital of more than VND25,576 billion. The bank plans to increase its charter capital by a maximum of more than VND4,296 billion. The charter capital is expected to increase to a maximum of VND29,873 billion after issuing shares to pay dividends in 2023 to existing shareholders at a rate of 16.8%.

Up to now, the two largest shareholders at FPT are Chairman Truong Gia Binh and the State Capital Investment Corporation (SCIC), with holding rates of 6.08% and 5% of FPT's charter capital, respectively.

According to LPBank's Q2/2024 financial report, the bank is having long-term investments and capital contributions worth VND 548,808 billion in 3 enterprises including: Vietnam-Laos Electricity Joint Stock Company (accounting for 6.85% of the enterprise's charter capital), LPBank Securities Joint Stock Company (5.5%), and LPBank Insurance Joint Stock Corporation (4.82%).