Speaking at the 2024 Annual General Meeting of Shareholders, LPBank's leaders said that the Bank is confident in completing the annual profit plan, maximizing network advantages, using digital transformation as a springboard to accelerate, increasing service fees... gradually realizing the goal of becoming a leading retail bank, a bank for everyone. The goal of strong growth and sustainable development in 2024 and the following years On April 17, 2024, LPBank held the 2024 Annual General Meeting of Shareholders and approved all the proposals. In which, the bank agreed on the business plan with the target of pre-tax profit in 2024 increasing by 50% over the same period, reaching VND 10,500 billion. To achieve this goal, General Director Ho Nam Tien said that the Bank focuses on four key tasks: Focusing on credit growth in priority areas and developing the retail market in suburban and rural provinces; Strictly controlling risks to ensure credit quality is maintained at a good level, in order to maintain the bad debt ratio below 0.9%; Focusing on increasing demand deposits (CASA) to reduce input capital costs, creating conditions to reduce lending interest rates while still ensuring the Bank's profit margin (NIM); Increasing the proportion of income from non-credit activities such as foreign currency trading revenue, service revenue, etc. The Bank's CIR (cost to income ratio) in 2023 has improved well. In 2024, the Bank will continue to maintain the same level as in 2023 at below 38%.
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The 2024 General Meeting of Shareholders sets a target of VND 10,500 billion in profit. |
LPBank's service revenue in 2023 increased by 115% compared to 2022. In 2024, General Director Ho Nam Tien revealed that the Bank will focus on activities such as: Deploying packaging of many products and services for customers to easily choose, especially focusing on the segment of import-export business customers and individual customers using international money transfer services. LPBank has good conditions to promote these segments when the bank has invested heavily in technology, helping customers reduce operating costs, effectively manage risks based on customer data and behavior. In addition, LPBank deploys a 360-degree customer assessment software system, so that the Bank can understand and meet the needs of customers to the maximum. "We aim to increase the number of cross-selling services per customer to at least 5 services/customer".
Taking digital transformation as a springboard to accelerate  |
General Director Ho Nam Tien at LPBank's 2024 General Meeting of Shareholders. |
In 2023, LPBank will deploy about 40 digital technology projects, digitization, and new technology applications such as eKYC identification, contactless payment (NFC), deploying Datalake/Data Warehouse data management platform, payment solutions, Treasury solutions (front - to - back), omnichannel banking platform Lienviet24h (Omni channel)... This year, LPBank will focus on digitizing processes with robots, enhancing data mining with artificial intelligence and advanced analytics, to bring maximum benefits to customers as well as minimize manual work for users on the Bank's side. LPBank also promotes investment in developing digital banking, modernizing the information technology system to serve management and operation and provide modern banking products and services, developing Digital Banking according to new trends. Assessing the difference in LPBank's digital transformation compared to other banks, General Director Ho Nam Tien commented: "
LPBank takes customers as the center of digital transformation, as a measure of digital transformation results through added utilities and user experience ". Currently, LPBank has made impressive strides on the journey of applying digital transformation, exploiting the power of data to promote business value.
Resolute in handling bad debt  |
Vice Chairman of the Board of Directors Bui Thai Ha speaks at LPBank's 2024 General Meeting of Shareholders. |
Last year, LPBank managed bad debt well with a ratio of 1.34%. Responding to shareholders' questions about the target bad debt ratio, Vice Chairman of the Board of Directors Bui Thai Ha said that the figure of 0.9% is completely achievable with a strong spirit in handling bad debt. Sharing about the debt handling strategy, Mr. Ha said that the Bank simultaneously implemented: Applying a centralized debt handling model; Reviewing and regularly updating the system of institutional documents; Adjusting human resource policies, increasing attractiveness, to recruit high-quality, highly specialized human resources. The Bank always accompanies customers, supporting customers to overcome difficulties to stabilize production and business activities, and at the same time resolutely handling customers who deliberately delay, allowing bad debt to persist.
Vertical organization model plays a strong role In 2023, LPBank will transform its vertical model to create the premise and foundation for breakthrough development in the coming time. This is the management trend of most modern banks in the world, helping to manage effectively, increase the quality of operations and optimize costs and income. Talking about this model, LPBank's CEO said that the operating model helps to maximize the advantages of LPBank's large network to specialize in better serving customers according to each target group of corporate and individual customers and to increase business efficiency. In fact, the vertical model has been effective in the first quarter of 2024 with the Bank earning VND 2,886 billion in pre-tax profit, an increase of 84.36% over the same period. This change is not only a premise but also an important foundation for LPBank to develop in accordance with its strategy of becoming the leading retail bank in Vietnam.
Maximizing network advantages It is known that the large network spanning 63 provinces and cities has been LPBank's unique advantage for many years. This year, the Bank plans to maximize network advantages to boost the retail sector. Vice Chairman of the Board of Directors Bui Thai Ha shared: "Most joint stock commercial banks do not invest in establishing new transaction points in rural, remote and isolated areas. On the contrary, by cooperating with VNPost, LPBank has the conditions and focuses on expanding the network of transaction offices in rural, remote and isolated areas on the basis of converting post office transaction offices in districts, towns, bank transaction offices, and upgrading the infrastructure and facilities of the head office/branch/transaction office across the entire system." Thus, with a nationwide network of transaction points, full and modern facilities, convenient for customers to access LPBank's products and services through both counter transactions and online transactions. Along with capacity, management experience, customer care, the network is a great strength of LPBank that other banks do not have.
Business orientation focuses on 06 strategic spearheads Summing up the discussion at the General Meeting of Shareholders, when asked about LPBank's strategic orientation in the coming time, Chairman of the Board of Directors Nguyen Duc Thuy said: The Bank will focus on 6 strategic spearheads, including:
First , developing retail customers, especially in rural areas
Second , promoting digital transformation, digitizing banking activities
Third , increasing the proportion of non-credit income
Fourth , improving the quality of human resources and increasing labor productivity
Fifth , improving risk management capacity
Sixth , bringing the best benefits to shareholders and customers This is the "compass" of LPBank on the way to realizing the goal of becoming a leading retail bank, a bank for everyone.
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