LienVietPostBank boss talks about divestment of Post Office

Before the General Meeting of Shareholders of LienVietPostBank (LPB), Vietnam Post Corporation (Vietnam Post) failed to successfully auction more than 140 million LPB shares, so it could not completely divest from the bank.

Sharing about this, LienVietPostBank's Permanent Deputy General Director Bui Thai Ha affirmed that Vietnam Post's divestment was in accordance with the Government 's request that State-owned corporations and groups divest non-core investments. Therefore, LPB cannot influence this divestment process. At the same time, the divestment does not affect the bank.

“Based on the approval of many ministries, departments as well as the approval of the Prime Minister , Vietnam Post and LPB signed a comprehensive cooperation agreement for 50 years. If they successfully divest, it will not affect the agreement signed between the two parties,” said Mr. Bui Thai Ha.

Commenting on bad debt in the coming time, Mr. Ha said that LPB has made provisions and classified debt in accordance with regulations. As of December 31, 2022, the bad debt coverage ratio at LPB is 142%.

The bank's bad debt at the end of 2022 increased to 1.5%, causing shareholders to be concerned. Mr. Bui Thai Ha said that the board of directors is determined to handle and recover bad debt. Many meetings have taken place, including the Chairman of the Board of Directors, to find solutions to resolve bad debt.

Acting General Director Ho Nam Tien said that in 2022, credit growth will be more than VND26,000 billion, of which real estate loans account for 15% of total outstanding loans. All real estate loans have full collateral.

Regarding the rate of demand deposits (CASA) that has not increased in the past few years, Mr. Tien said that this rate in 2022 is 8.9%, increasing in absolute numbers but not in relative numbers.

“LPB’s demand deposits are stable, even when there are fluctuations in the market. The transaction office system throughout the system has recently accessed people’s truly idle capital with long-term deposits, thereby creating stability in the balance of capital use,” said Mr. Tien.

*Leaders of LienVietPostBank. (Photo: Ngoc Tuan)*

Mr. Thuy promises to increase salary for employees

According to Mr. Nguyen Duc Thuy, in the 2023-2028 term, the bank will focus on developing key pillars, ensuring safe, effective and sustainable business.

In addition, the bank will increase the proportion of non-credit income; continue to handle bad debts, improve the quality of human resources and successor teams for branches and headquarters.

Mr. Nguyen Duc Thuy affirmed: "The goal of the Board of Directors this term is to increase income and benefits for employees, ensure the highest benefits for shareholders, focus resources on finding strategic partners, implement digitalization, achieve social security goals, and become the leading retail bank in Vietnam".

LienVietPostBank is about to change its name. Besides electing a new Board of Directors, shareholders approved the plan to change the name of LienVietPostBank.

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