This result is a testament to the effective risk management capacity, flexible policies of the Board of Directors and the spirit of overcoming difficulties and creativity of the entire system in the context of a difficult market.
In 2023, LPBank will complete the business target assigned by the General Meeting of Shareholders, with growth higher than the industry average.
Exceeded plan, growth higher than industry average
By the end of 2023, LPBank earned VND 7,039 billion in pre-tax profit, completing 117% of the annual plan, growing 24% compared to 2022. Notably, the Bank continues to be in the top of the industry in terms of operating efficiency with a return on equity (ROEA) of 19.16%.
By the end of 2023, LPBank's credit scale grew by 16.83% compared to the beginning of the year. Compared to the industry average of 13.7%, LPBank achieved a high growth rate thanks to its flexible lending policy, many times implementing interest rate reduction support packages for individual customers, corporate customers and especially production and business customers in accordance with the direction 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 more than VND25,576 billion, an increase of 48% compared to the beginning of the year, entering the top banks with the largest charter capital in the system. Total assets reached more than VND382,863 billion, an increase of 17% compared to the beginning of the year.
Improve risk management quality, maintain safety ratio in operations
In the face of many economic difficulties, bad debt is still a hot spot in the banking system. In compliance with the State Bank's regulations on limits and safety ratios in operations, LPBank has proactively and resolutely implemented measures to recover and handle bad debt, ensuring that the indicators are at a safe level and initially achieved some positive results. As of December 31, 2023, the Bank's bad debt ratio reached 1.34%, lower than the same period in 2023 (1.45%) and much lower than the third quarter of 2023. This ratio puts LPBank in the top banks with the lowest bad debt in the industry. In particular, LPBank is one of the rare banks that is not affected by corporate bonds, while always maintaining the minimum capital safety ratio, ensuring a capital buffer to support the Bank's business activities to grow sustainably and effectively.
Accordingly, LPBank's CAR at the end of 2023 reached 12.24%, far exceeding the minimum requirement of 8% as required by the State Bank and at a high level compared to the industry average. The ratio of short-term capital 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 prescribed.
LPBank is also the bank that has completed Basel III risk management standards and IFRS 9 international accounting standards, becoming one of the few credit institutions to simultaneously apply two strict risk management and financial reporting standards in the banking sector worldwide. In the coming period, LPBank will continue to improve the liquidity stress test components within the Basel III framework to help LPBank withstand unusual events and operate more and more safely, especially in the context of the global financial crisis and the domestic economy facing many difficulties.
Also in the past year, LPBank's Long-term Counterparty Risk in local and foreign currencies and Long-term Counterparty Risk Assessment were upgraded by Moody's from B1 to Ba3 with a "stable" outlook. Moody's also maintained the Bank's Long-term Deposit/Long-term Issuer rating at B1 with a Stable outlook. This is a high rating by Moody's and only a few banks in Vietnam have had their ratings upgraded in this review.
Invest heavily in digital transformation activities
Following the Government's orientation of building a cashless society, LPBank identifies customers as the center, customer experience as the destination in digital transformation activities. With strong investment, customers coming to LPBank will experience high-quality products and convenient services, shortening transaction time.
In 2023 alone, LPBank will pioneer the application of modern technologies in business and management such as eKYC identification, NFC contactless payment, deployment of Datalake/DataWarehouse Data Management platform, Payments solution, Treasury solution (front-to-back), Omni channel banking platform Lienviet24h... and upgrade the core banking system (Corebanking). Thanks to digital transformation, LPBank not only maintains the love and trust of existing customers but also strongly attracts new customers to LPBank.
In July 2023, LPBank was honored to receive 3 major awards from JCB for JCB cards: Leading Bank in New Card Issuance; Leading Bank in High-End Accumulated Cards; Leading Bank in Total Card Transaction Volume. Most recently, LPBank was honored in the top 100 most valuable brands in Vietnam announced by Brand Finance - the world's leading organization in brand valuation. Accordingly, LPBank has a brand value of 248.84 million USD, a brand ranking index of AA-, a brand strength index of 65.34 points and ranked 33/100 Most Valuable Brands in Vietnam 2023.
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