LPBank achieves long-term credit rating of A+, outlook "Stable"

LPBank's A+ rating and Stable outlook are long-term credit ratings assessed by VIS Rating Vietnam. This result reflects LPBank's financial and operational situation, including asset quality, profitability and capital adequacy at a good and sustainable level. On May 8, VIS Rating - Vietnam's leading credit rating company, established by Moody's International Credit Rating Organization and reputable domestic financial institutions, announced the results of the long-term Issuer Credit Rating for LPBank at A+ with a "Stable" Outlook. Accordingly, VIS Rating assessed LPBank's asset quality as good thanks to its ability to control the bad debt ratio. In the past 3 years, LPBank's bad debt ratio has always been low compared to the industry average, while the average bad debt risk provisioning ratio has always been higher than the industry average.

LPBank Head Office 210 Tran Quang Khai and 17 Tong Dan, Trang Tien Ward, Hoan Kiem District, Hanoi City

VIS Rating's positive assessment affirms LPBank's profitability at a good level. This reflects the improvement in business performance and optimization in operating costs, as well as VIS Rating's expectation of stability in profitability in the next 12-18 months. Over the past 5 years, LPBank's return on average assets (ROAA) has improved significantly, reaching a level higher than the industry average by the end of 2023, mainly due to the restructuring and completion of the network system, optimizing capital costs and enhancing digitalization, automating business processes, and shortening implementation time to increase labor productivity. This assessment also affirms the fundamental strength and efficiency and safety in LPBank's sustainable business orientation. LPBank's capital adequacy is positioned at a good level by VIS Rating, reflecting a higher Tier 1 Capital (core capital including equity and retained earnings) thanks to recent capital increases. LPBank's capital adequacy ratio (CAR) remains higher than the industry average in 2023. VIS Rating expects LPBank's capital adequacy to be stable over the next 12-18 months thanks to the stability in its ability to generate internal capital from retained earnings to support asset growth. Finally, VIS Rating assesses LPBank's long-term issuer rating outlook as Stable. This result affirms that LPBank's credit profile will remain safe over the next 12-18 months. Previously, in August 2023, the international credit rating agency Moody's Investors Service (Moody's) continued to maintain LPBank's long-term Issuer/Deposit (in local/foreign currency) rating at B1, with a Stable outlook. In addition, LPBank's long-term Counterparty Risk criteria in local/foreign currency and Long-term Counterparty Risk Assessment criteria were also kept at Ba3 by Moody's. Maintaining LPBank's ratings shows Moody's expectations for LPBank's operations, including indicators of capital, asset quality, profitability and liquidity that are always safe and effective. LPBank is in the Top 500 Banks with the highest brand value globally and is one of 14 Vietnamese Banks in the Group of the most important credit institutions in the system in 2024. In the period of 2024 - 2028, LPBank will implement a strategy of strong change, comprehensive efficiency, sustainable development and prudence in business operations, flexibility in application design, products and services to ensure maximum benefits for customers, shareholders and partners.

LPBank