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“LPBank Reaps Robust Profits: Surpassing 9.952 Billion VND in Pre-Tax Earnings Over a 10-Month Period”

19 November, 2024

On November 16th afternoon, LPBank held an extraordinary General Meeting of Shareholders for the year 2024 in Ninh Binh province. The meeting approved several important matters, including issuing bonus shares, investing in stocks belonging to the VN30 basket, electing additional members to the Board of Directors, and changing the location of the bank’s head office.

Expected to exceed the full-year 2024 profit target

During the discussion, when asked by a shareholder about the bank’s financial results for the first ten months, a representative of LPBank shared: “Pre-tax profit for the ten months reached VND 9,952 billion, achieving 114% of the cumulative plan and 95% of the full-year 2024 plan.”

LPBank is on a strong profit growth trajectory thanks to the vigorous implementation of actions to increase revenue, optimize costs, and manage risks. It is expected that by the end of the fourth quarter of 2024, LPBank will exceed the cumulative plan approved by the 2024 Annual General Meeting of Shareholders, with a pre-tax profit target of VND 10,500 billion.

Election of two additional independent members to the Board of Directors

The 2024 Extraordinary General Meeting of LPBank approved the dismissal of Mr. Le Hong Phong and Mr. Le Minh Tam from their positions as members of the Board of Directors, effective November 16, 2024. Prior to this, Mr. Phong and Mr. Tam had submitted resignation letters for personal reasons.

The meeting elected two new independent members to the Board of Directors for the term 2023-2028: Ms. Vuong Thi Huyen (born in 1974) and Mr. Pham Phu Khoi (born in 1963), effective from November 16, 2024.

Ms. Vuong Thi Huyen has over 28 years of experience in the finance and banking industry. She has held important positions such as Director of Project Finance at ANZ Vietnam Bank; Director of Hanoi Branch at Credit Agricole Corporate and Investment Bank; Head of SME Customers at the Head Office of Vietnam Joint Stock Commercial Bank for Industry and Trade; and Vice President and Director of the Enterprise Client Block at Vietnam International Commercial Joint Stock Bank. Currently, she is the Chairman of the Board of Directors and General Director of Fast Capital Joint Stock Company.

Mr. Pham Phu Khoi has over 37 years of experience in finance in Vietnam. He has served as Deputy General Director and Head of Financial Markets at VPBank, concurrently holding the position of Chairman of VPBank Securities (VPBS); General Director of ACB Securities (ACBS); Head of Merrill Lynch Bank, Singapore; Head of Emerging Markets Credit Trading, Standard Chartered Bank, Singapore, in Vietnam; Asia Pacific Corporate Bond Portfolio Manager at Barclays Capital Asia, Hong Kong; and Head of Northeast Asia at Vietnam Airlines Corporation.

Currently, Mr. Khoi is the Chairman of the Board of Directors of Vietnam Investment and Ratings Joint Stock Company (VIS Rating); Chairman of the Board of Directors and Independent Member of LPBank Securities Joint Stock Company; and Senior Advisor to the Executive Board of LPBank.

Relocation of the head office

The General Meeting of Shareholders approved the relocation of the bank’s head office from LPB Tower, 210 Tran Quang Khai Street, Hoan Kiem District, Hanoi, to another location within Vietnam that aligns with the bank’s short, medium, and long-term development orientation.

The decision on the new location and the timing of the move has been entrusted to the Board of Directors of LPBank.

According to LPBank, this shift is in line with the banking industry’s trend of formulating strategies focused on rural and second-tier urban areas, contributing to the comprehensive development of Vietnam’s economy and aligning with the bank’s future development orientation.

Expected to increase charter capital to nearly VND 30,000 billion

The General Meeting of Shareholders also approved a plan to issue a maximum of nearly 429.7 million shares as bonus shares for the year 2023, equivalent to a ratio of 16.8% of the total number of circulating shares.

After completing the issuance of bonus shares, LPBank’s charter capital is expected to increase by nearly VND 4,297 billion, from over VND 25,576 billion to nearly VND 29,873 billion.

This capital increase plan is an adjustment to the initial plan approved by the 2024 Annual General Meeting of Shareholders held on April 17, 2024.

According to the original plan, LPBank’s shareholders approved an increase in capital of up to VND 8,000 billion by offering an additional 800 million shares to existing shareholders (subject to approval from the State Bank of Vietnam and the State Securities Commission) at a price of VND 10,000 per share, equivalent to a ratio of 31.3%. After the completion of this offering, LPBank’s charter capital was expected to increase from VND 25,576 billion to VND 33,576 billion.

However, based on market conditions and LPBank’s development orientation, and to ensure the interests of shareholders and the bank, the Board of Directors proposed to the General Meeting of Shareholders to adjust the plan for capital increase by issuing bonus shares instead of increasing charter capital through a share offering to existing shareholders.

Intention to become a major shareholder of FPT

The final agenda item approved by the LPBank General Meeting of Shareholders was the plan to contribute capital and purchase shares of FPT Joint Stock Company.

According to the plan, LPBank intends to invest up to 5% of FPT’s charter capital. The investment is expected to be made in 2024 and 2025 and/or at an appropriate time after obtaining approval from state authorities, in accordance with legal regulations and practical conditions.

Regarding the reason for investing in FPT shares, the Board of Directors of LPBank stated that investing in listed stocks would help the bank diversify its investment channels and optimize the capital contributions of shareholders. After careful evaluation, FPT shares are believed to have the potential to deliver attractive returns and contribute to the diversification of LPBank’s asset portfolio.

Based on FPT’s share price during the trading session on November 18, 2024, which was VND 133,700 per share, reflecting a more than 62% increase compared to the beginning of 2024, it is estimated that LPBank would need to invest over VND 9,800 billion to become a major shareholder of FPT with a maximum ownership ratio of 5% (equivalent to over 73 million FPT shares).

As of June 30, 2024, FPT has two major shareholders: the State Capital Investment Corporation (SCIC), holding 5.75% of capital, and Mr. Truong Gia Binh, Chairman of the Board of Directors of FPT, holding 6.99% of capital.

Khang Di