On April 17th, in Ninh Binh, Lien Viet Post Joint Stock Commercial Bank (LPBank, stock code LPB) held its Annual Shareholders’ Meeting for 2024.
2023 targets breached, ambitious growth aims set for 2024
In 2023, LPBank surpassed the business targets assigned by the General Meeting of Shareholders (GMS). Specifically, pre-tax profit reached VND 7,039 billion, a 24% increase compared to 2022 and 117% of the plan. The bank’s total assets reached VND 382,863 billion, up 17% compared to 2022, fulfilling 102% of the plan set by the GMS.
LPBank’s market capitalization at the end of 2023 exceeded VND 43,735 billion (data as of February 29, 2024) and ranked 27th out of 43 listed companies with billion-dollar capitalization on the stock market.
LPBank’s Board of Directors (BOD) assessed that 2024 will be a pivotal year for the 2024-2028 development plan, during which the bank will focus on: Model transformation, digital transformation, enhancing risk management capacity, improving product and service quality, and developing human resources towards the goal of “Strong Growth, Comprehensive Efficiency, Sustainable Development”.
On that basis, in 2024, LPBank sets a pre-tax profit target of VND 10,500 billion, an increase of nearly 50% compared to 2023. Total assets are expected to reach VND 427,260 billion, up 11.6%. Market 1 credit is projected to grow by 15.8% (the actual credit growth plan may be adjusted depending on the growth limit approved by the State Bank of Vietnam). Market 1 mobilization is expected to reach VND 317,380 billion, an increase of more than VND 32,000 billion compared to the previous year, equivalent to a growth of about 11.2%.
Plan to increase capital by up to VND 8,000 billion, raising charter capital to VND 33,576 billion
Also on April 17th, LPBank’s GMS approved the plan to offer shares to increase charter capital. Specifically, the bank plans to offer a maximum of 800 million shares to the public for existing shareholders to increase its charter capital by VND 8,000 billion, raising its charter capital to over VND 33,576 billion.
Another content approved at LPBank’s GMS is the plan not to pay dividends for the next three years in order to gradually build a foundation and enhance financial capacity by using profits to supplement capital for business operations, and invest in key projects. It is known that in 2023 alone, after fulfilling its tax obligations and setting aside funds, LPBank had VND 4,236 billion in retained earnings.
Change of name to Loc Phat Vietnam Joint Stock Commercial Bank
One of the important contents approved at LPBank’s 2024 Annual GMS is the change of name to Loc Phat Vietnam Joint Stock Commercial Bank. English name: Loc Phat Vietnam Joint Stock Commercial Bank. As such, the English abbreviation LPBank (eo-pi-bank) remains unchanged.
LPBank’s BOD said, “The bank’s name change marks a major turning point in the current phase to realize the strategy of profound change, comprehensive efficiency, towards the goal of sustainable development and bringing prosperity to the community”.
The name “Loc Phat Bank” in the concept of East Asians also signifies the creation of development, fortune, luck, prosperity, and abundance. In its business philosophy, LPBank always emphasizes bringing benefits to partners, customers, shareholders, employees, and the community. LPBank commits that customers will always receive support from the bank through effective financial solutions, throughout their development process.
LPBank’s Chairman answers shareholders.
Mr. Nguyen Duc Thuy, Chairman of the Board of Directors, said that LPBank’s strategic business orientation in the coming years includes: (1) Developing retail customers, especially in rural areas; (2) Promoting digital transformation, digitizing banking operations; (3) Increasing the proportion of service fee revenue; (4) Improving the quality of human resources and increasing labor productivity; (5) Enhancing risk management capacity; and (6) Bringing the best benefits to shareholders and customers.
