Services
This result is evidence of the effective risk management capability, flexible policies of the Leadership Board, and the resilient and innovative spirit of the entire system in the context of the market still facing many difficulties.
 In 2023, LPBank achieved the business targets assigned by the Shareholders’ Meeting, with higher growth than the industry average.
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Exceeding the plan, higher growth than the industry average
By the end of 2023, LPBank earned VND 7,039 billion in pre-tax profit, completing 117% of the annual plan, a 24% growth compared to 2022. In particular, the Bank continued to be among the top performers in the industry with return on equity ROEA reaching 19.16%.
As of the end of 2023, LPBank’s credit scale grew by 16.83% compared to the beginning of the year. With a growth rate higher than the industry average of 13.7%, LPBank achieved this growth thanks to flexible lending policies, multiple implementations of interest rate reduction packages for individual customers and business customers, especially customers in production and business sectors, in line with the orientation of the National Assembly, the Government, and the State Bank.
Also in the past year, LPBank completed the plan to increase its charter capital to over VND 25,576 billion, a 48% increase compared to the beginning of the year, ranking among the banks with the highest charter capital in the system. Total assets reached over VND 382,863 billion, a 17% increase from the beginning of the year.
Enhancing risk management quality, maintaining safety ratios in operations
In the context of the economy still facing many difficulties, resulting in non-performing loans remaining a hot issue for the Banking system, LPBank proactively and resolutely implemented measures to recover and handle bad debts, ensuring that safety ratios in its operations were at a safe level and achieved some positive results. As of December 31, 2023, LPBank’s bad debt ratio stood at 1.34%, lower than the same period in 2023 (1.45%) and much lower than the third quarter of 2023. This ratio placed LPBank among the banks with the lowest bad debt ratio in the industry. Moreover, LPBank is one of the few banks unaffected by corporate bonds and always maintains a minimum capital adequacy ratio, ensuring a buffer of capital to support the Bank’s sustainable and efficient business growth.
Accordingly, LPBank’s capital adequacy ratio CAR by the end of 2023 reached 12.24%, well above the minimum requirement of 8% according to the State Bank’s regulations and higher than the industry average. The short-term funding ratio for medium and long-term loans is also at a very safe level of 18.79%, much lower than the maximum limit of 30% as regulated.
LPBank also met the Basel III risk management standard and the International Financial Reporting Standards IFRS 9, becoming one of the few credit institutions in the world to simultaneously apply both risk management and financial reporting standards in the banking sector. In the coming period, LPBank will continue to improve the stress testing components within the framework of Basel III to help LPBank cope with abnormal events and operate in the safest manner, especially in the context of global financial crises and domestic economic difficulties.
In addition, LPBank’s long-term counterparty risk in local currency, foreign currency, and the long-term counterparty risk assessment indicators have been upgraded by Moody’s from B1 to Ba3 with a “stable” outlook. Moody’s also maintained the deposit ratings for long-term issuances of the Bank at B1 with a Stable outlook. This is a high rating by Moody’s and only a few banks in Vietnam have been upgraded in this rating review.
Strong investment in digital transformation activities
In line with the Government’s direction to build a non-cash society, LPBank sees customers as the center, with customer experience as the goal in its digital transformation activities. With strong investment, LPBank customers can experience high-quality products and services, reducing transaction time.
In just 2023, LPBank pioneered the application of modern technologies in business and operational management, such as eKYC identification, contactless payment NFC, implementation of Datalake/DataWarehouse data management platform, payment solutions, treasury solutions (front-to-back), Lienviet24h integrated banking platform (Omni channel), and upgrading core banking systems.
Thanks to digital transformation, LPBank not only maintains the favor and trust of existing customers but also attracts new customers strongly to LPBank.
In July 2023, LPBank was honored to receive 03 major awards for JCB cards from JCB: the leading bank in issuing new cards; the leading bank in high-end segment card accumulations; the leading bank in total card transaction volume. Most recently, LPBank was honored as one of the top 100 most valuable brands in Vietnam by Brand Finance – a leading organization in the world for brand valuation. Accordingly, LPBank’s brand value reached USD 248.84 million, its brand rating was classified as AA-, its brand strength index scored 65.34 points, and it ranked 33/100 among the most valuable brands in Vietnam 2023.
