LPBank to achieve profit of over 7,000 billion in 2023

Focusing on exploiting network strengths to develop retail banking, LPBank will earn more than 7,000 billion VND in profit in 2023.

Lien Viet Post Bank (LPBank) has just 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 shareholders' meeting, LPBank completed 117%.

As of December 31, 2023, the bank's total assets reached more than VND 382,953 billion, up 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 the fourth quarter of the year, the bank focused on handling bad debts and initially achieved some positive results. As of December 31, 2023, the bank's bad debt ratio was at 1.26%, lower than the same period (1.45%) and lower than the third quarter of 2023.

LPBank prioritizes retail, rural agriculture. Photo: LPBank — LPBank prioritizes retail, rural agriculture. Photo *: LPBank*

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 unit belongs to the group of 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 the strengths of its network, especially in rural and remote areas where people have little access to banking and financial services. Up to now, this bank 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 entire bank and is a strategic spearhead in the coming years.

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 in technology and digital transformation, applying modern technologies to business and management such as eKYC identification, NFC contactless payment, deploying Datalake - DataWarehouse data management platform, payment solutions (Payments), Treasury solutions (front-to-back), omnichannel banking platform Lienviet24h (Omni channel)... and upgrading the core banking system (Corebanking) to the T24 system of financial solutions company Temenos.

"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," shared a representative of LPBank.

Over 15 years of construction and development, the bank has always focused on social security work with the motto "Integrating society into business". Last year, the bank 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 addition, the bank also implemented programs to exempt and reduce fees for small and medium enterprises, export enterprises, individuals...

Sustainable growth and promoting green growth are among the bank's strategic business objectives. In addition to preferential loans for production and business, LPBank prioritizes granting credit to green sectors such as renewable energy, clean energy, low-carbon production and consumption sectors, 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.

Mr. Ho Nam Tien, General Director of LPBank, said that 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.

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