At the end of the first 6 months of the year, a bank earned 5,919 billion VND in profit.
A quick look at the banking industry's profit picture in the first 6 months of the year According to the results of the business trend survey by the Forecasting and Statistics Department, the State Bank, the overall business situation and pre-tax profit of the banking system in the second quarter have improved a lot, but the picture of the entire banking industry has not been really clear and met many expectations. The banking industry's profit is forecast to grow slowly at 12%, previously the industry's profit in the first quarter of 2024 increased by 14% over the same period. The reason comes from the net interest margin continuing to be under downward pressure, when lending interest rates are reduced at the request of the State Bank, while deposit interest rates have increased slightly at most banks. MBS Securities experts assess that the banking industry's profit margin (NIM) will continue to be under downward pressure when lending interest rates are forecast to decrease further, while deposit interest rates have increased slightly at most banks. The bright spot in the banking industry's picture in the second quarter is credit growth, which recorded a 4-fold increase compared to the first quarter, estimated at 4.17% compared to 0.26% at the end of the first quarter of 2024, but is still lower than the same period, so in general, net profit has not been able to increase strongly. Meanwhile, SSI Securities Company assessed that the banking industry's profits in the second quarter were clearly differentiated when witnessing banks recording profit increases of up to 60% over the same period, but there were also banks with growth rates of only single digits or even banks that were assessed to have profits going down in the second quarter of 2024. In general, the after-tax profits of banks will not have high growth rates, with notable increases in some banks with good credit growth such as LPBank, VPBank, HDBank ; some banks recorded negative profit growth due to high after-tax profits in the same period last year. Bright spot in a picture still full of gray. Among many banks with expected flat profits (VCB, TPB) or even going backwards ( BIDV , OCB), MBS credit experts highly appreciated LPBank's Q2 business results thanks to impressive growth. This is the first bank to announce its business results and is currently the only bank with a triple-digit Q2 profit growth. Specifically, LPBank recorded pre-tax profit in the first 6 months of the year reaching VND 5,919 billion, up 142% over the same period. Previously, the bank's pre-tax profit in the first quarter reached more than VND 2,886 billion. With Q2 profit of over VND 3,033 billion, Loc Phat Vietnam Bank recorded profit growth in 2 consecutive quarters and increased nearly 3.5 times over the same period last year. MBS assessed that this is one of the few banks that overcame the market's obstacles in the first 6 months of 2024.
In 2024, LPBank plans to achieve pre-tax profit of VND 10,500 billion, an increase of nearly 50% compared to 2023. Thus, this bank has achieved more than 56% of the annual profit plan. Previously, in the first quarter, LPBank was also the bank with the second highest pre-tax profit growth rate in the industry. Experts from this credit institution assessed that LPBank's impressive results were achieved thanks to the bank's strong credit growth since the first months of the year. In addition, LPBank also focuses on promoting cross-selling of products and services, especially foreign currency trading products, remittances, import and export, etc. Core income accounts for 77% of total income (TOI). In particular, Loc Phat Vietnam Bank's efforts to diversify revenue sources have resulted in a significant increase in the non-credit ratio. Non-interest income contributed 22.63% to the total income structure, reaching VND 2,079 billion in the first 6 months of the year. 
In terms of capital mobilization, with the advantage of a large network (owning more than 1,200 transaction points), LPBank can easily reach many customer groups with financial service needs. The Bank's capital mobilization results in the first 6 months of the year reached VND 336,978 billion. On the output side, outstanding loans to market 1 reached VND 317,417 billion, a credit growth of 15.23% compared to December 31, 2023. As of June 30, 2024, the total asset size of this Bank was VND 442,926 billion, an expansion of 16% compared to the beginning of the year. In particular, the growth rate of credit and mobilization continued to be maintained at a good level. Thus, the picture of business results in the first 6 months of the year of the banking industry has a certain differentiation. Banks with good business strategies, abundant capital and diversified fee income sources will have many opportunities to grow and maintain good profit margins despite many pressures from the market. On the contrary, there will certainly be banks that will have to continue to find restructuring solutions to overcome difficulties, handle bad debt risks and increasingly narrow profit margins.K.Oanh
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