Loc Phat Bank ( LPBank ) reported pre-tax profit in the first quarter of 2025 of nearly 3,200 billion VND
Impressive credit and deposit growth
The highlight of LPBank's business picture in the first quarter of 2025 is strong credit growth. As of March 31, 2025, outstanding customer loans reached VND 352,194 billion, an impressive growth of more than 6.2% after only the first 3 months of the year (compared to the end of 2024) and an increase of nearly 15% over the same period in 2024. This figure is significantly higher than the industry average (estimated at about 2.5% as of the end of March 2025), showing that the Bank has been proactive and effectively implemented solutions to promote disbursement right from the first months of the year. In addition, capital mobilization from customers also recorded good growth, reaching VND 293,155 billion, an increase of 3.5% compared to the end of 2024.
Also according to the financial report for the first quarter of 2025, LPBank's total operating income (TOI) reached VND4,688 billion, up nearly 5% over the same period. Of which, net interest income accounted for the largest proportion at VND3,282 billion.
Another notable point in LPBank's Q1 business results is that service income and other non-interest sources effectively contributed to total income. Accordingly, non-interest income accounted for nearly 30% of total operating income, showing that the Bank's efforts to diversify its revenue sources are on the right track.
In recent times, LPBank has proactively expanded and upgraded non-credit services such as digital banking, credit cards, electronic payments, personal financial management... to diversify revenue sources, effectively manage risks and increase sustainability in business operations.
In addition to expanding its service portfolio, LPBank has continuously increased the technology content in its financial products and services, helping to improve user experience and increase customer loyalty such as: Sinh Loi Loc Phat, Keyless Call Center, Balance Notification Service right on LPBank application... which has contributed to helping the Bank attract millions of new customers in recent times.
Optimize operations, improve profitability
Along with profit growth, LPBank's operating efficiency in the first quarter of 2025 continues to be strongly affirmed through cost optimization and risk management.
The Bank's cost-to-income ratio (CIR) in the first quarter fell impressively from 30.7% to 28% compared to the same period in 2024, demonstrating its management capacity and operational optimization. In addition, the cost of credit risk provisioning in the first quarter was recorded at VND 198.4 billion, down nearly 8% compared to the same period last year. The reduction in provisioning pressure not only directly supported profit results but, more importantly, also reflected the stable quality of the credit portfolio and positive results in the Bank's debt handling and collection work.
The profitability indicators ROA (2.0%) and return on equity ROE (23.0%) affirm the outstanding operating efficiency and sustainable profit generation ability, maintaining LPBank's leading position.
Sharing about the results, Mr. Vu Quoc Khanh, General Director of LPBank said: “The business results of the first quarter of 2025 are a positive start, reflecting the efforts of the entire LPBank system in proactively implementing flexible business solutions, supporting customers to access capital effectively, while optimizing operations and diversifying revenue sources. We believe that, with the existing foundation and clear strategy, LPBank will continue to achieve important goals in 2025”.
On April 27, LPBank plans to hold the 2025 Annual General Meeting of Shareholders in Ninh Binh . At the meeting, the Bank will present to shareholders its 2025 business plan with a pre-tax profit target of VND 14,868 billion, an increase of 22.2% compared to the 2024 results. In particular, LPBank also plans to pay 2024 cash dividends at a rate of 25% - one of the highest rates in the banking industry at present - which is expected to be an important highlight, demonstrating the Bank's efforts to maximize benefits for shareholders./.
LPBank
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