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Overview of LPBank's General Meeting of Shareholders on April 17, 2024

Aim for strong growth and sustainable development

On April 17, 2024, LPBank held the 2024 Annual General Meeting of Shareholders (AGM) and approved all proposals. In which, the bank agreed on a 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, Mr. Ho Nam Tien - General Director of LPBank said that the bank focuses on four key tasks including: 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 non-term 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 continues to maintain the same level as in 2023 at below 38%.

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LPBank's 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, Mr. Ho Nam Tien revealed that the Bank will focus on activities such as: implementing 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 as the bank has invested heavily in technology, helping customers reduce operating costs and effectively manage risks based on customer data and behavior.

In addition, LPBank has deployed a software system to evaluate customers in “360 degrees”, so that the bank can understand and meet customers’ needs to the maximum. “We aim to increase the number of cross-selling services per customer to at least 5 services/customer”, said Mr. Ho Nam Tien.

Take digital transformation as a "springboard" to accelerate

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LPBank General Director Ho Nam Tien

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 (payments), Treasury solutions (front-to-back), Lienviet24h omni-channel banking platform (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 the bank.

LPBank also promotes investment in developing digital banking, modernizing the information technology system to serve management and operation, providing modern banking products and services, and 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

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Mr. Bui Thai Ha - Vice Chairman of LPBank Board of Directors

Last year, LPBank managed bad debt well with a rate of 1.34%.

Responding to shareholders' questions about the target bad debt ratio, Mr. Bui Thai Ha - Vice Chairman of LPBank's Board of Directors said that the figure of 0.9% is "a completely achievable number" with a strong spirit in handling bad debt.

Sharing about the debt settlement strategy, Mr. Ha said that the bank simultaneously implements: applying a centralized debt settlement 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; at the same time, resolutely handling customers who deliberately delay, allowing bad debts to persist.

Vertical organization model plays a strong role

In 2023, LPBank will transform its model into a "vertical industry" 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 CEO said that the operating model helps to maximize the advantage of LPBank's large network to specialize in serving customers better according to each type 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 to become the leading retail bank in Vietnam.

Maximize network advantage

The large network spanning 63 provinces and cities is a unique advantage that LPBank has had for many years. This year, the bank plans to maximize its network advantage to boost its retail segment.

Mr. Bui Thai Ha shared: “By cooperating with VNPost, LPBank has the conditions and focuses on expanding the network of transaction offices in rural areas, remote areas on the basis of converting post office transaction offices in districts, towns, and bank transaction offices; at the same time upgrading the infrastructure and facilities of the head office, branches, and transaction offices throughout the system.”

Thus, with a nationwide network of transaction points, full and modern facilities, convenient for customers to access LPBank's products and services both at the counter and online. Along with capacity, experience in management and customer care, the network is a great strength of LPBank this year.

Business orientation focuses on 6 strategic spearheads

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Summarizing the discussion at the General Meeting of Shareholders, when asked about LPBank's strategic orientation in the coming time, Mr. Nguyen Duc Thuy - Chairman of LPBank's Board of Directors said that the bank will focus on 6 strategic priorities, including:

First, develop retail customers, especially in rural areas.

Second, promote digital transformation and digitization of banking activities.

Third, increase the proportion of non-credit income.

Fourth, improve the quality of human resources and increase labor productivity.

Fifth, improve risk management capacity.

Sixth, bring 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.

Bean Linh