LPBank seeks strategic foreign investors
LPBank seeks strategic foreign investors
LienVietPostBank, now known as LPBank, is embarking on a quest to attract foreign investors who share its vision and strategy, as it seeks to strengthen its market position and expand its horizons.
At LienVietPostBank’s AGM on April 23, the bank presented a proposal to change its abbreviated name in English.
LienVietPostBank has been used in all legal documents and media channels since 2011. However, leaders have decided that its excessive number of characters, difficulty in pronunciation, and low memorability has undermined its branding effectiveness. Meanwhile, the prevailing trend among banks today is to use the shortest possible abbreviated names that are easy to remember.
The bank's board of directors proposed to change the bank's abbreviated name to LPBank, which was approved by the shareholders' meeting.
LPBank currently sets its foreign ownership limit ratio at 5 per cent. CEO Ho Nam Tien revealed that the bank is currently searching for foreign investors who are aligned with its strategy.
The bank has already included this plan in its proposal to increase its charter capital to be presented to the shareholders.
Last year the bank achieved numerous targets approved by its shareholders, including a pre-tax profit of $242.17 million, a 56 per cent increase from 2021 and exceeding the planned target by 19 per cent.
In 2023, the bank has planned to achieve a pre-tax profit of $255.4 million, equivalent to a growth rate of 5.4 per cent. The bank's total assets are expected to reach $15.96 billion, a 14.4 per cent increase. The credit growth plan may be adjusted depending on the growth limit approved by the State Bank of Vietnam.
Bui Thai Ha, deputy CEO of LPBank, said that the economic situation in 2023 remains challenging.
"The bank forecasts a slow economic recovery, which may lead to an increase in overdue debts in the future. The bank has made full provisions in accordance with legal regulations. As of the end of 2022, the bank's coverage ratio of bad debts was 142 per cent, indicating a relatively healthy and robust financial buffer that would help the bank overcome future difficulties," Ha said.
Regarding corporate bond activities, Ha noted that LPBank will continue to monitor market developments and adjust its investment strategy accordingly to ensure sustainable growth for the bank and its stakeholders.
“LPBank has adopted a cautious approach towards investing and distributing corporate bonds, thereby remaining immune to the fluctuations in this sector. In this regard, the bank's bond portfolio exclusively comprises government bonds and bonds issued by select credit institutions of impeccable repute in the market,” Ha added.
Shedding light on the credit structure, Ha also asserted that the majority stake of LPBank's outstanding loans are channelled towards the agricultural sector, whereas real estate loans constitute a modest 15 per cent of the total loans disbursed by the bank, with all loans being meticulously secured by a spectrum of valuable assets.
