LPBank approved to increase capital to over 28,000 billion VND

The State Bank has issued a document approving Lien Viet Post Joint Stock Commercial Bank ( LPBank , HoSE: LPB) to increase its charter capital by a maximum of VND 11,385 billion, equivalent to issuing an additional 1.13 billion shares according to the charter capital increase plan approved by the 2023 Annual General Meeting of Shareholders.

Specifically, the bank will issue 328.5 million shares to pay dividends to existing shareholders at a rate of 19%; 500 million shares to offer to existing shareholders; 300 million shares to offer privately to foreign investors and 10 million shares to issue under the employee stock option program (ESOP).

After completing the above issuances, LPBank's charter capital is expected to increase from VND 17,291 billion to VND 28,676 billion.

With this new charter capital, LPBank will surpass other private banks such as HDBank , VIB, SeABank, MSB and Sacombank, entering the top 10 banks with the largest charter capital on the stock exchange.

Regarding business situation, at the end of the first quarter of 2023, the bank reported pre-tax profit of VND 1,566 billion, down 12.8% over the same period.

Of which, the main income is net interest income, which decreased by 3.5% compared to the same period, reaching 2,774 billion VND. Net profit from other business activities lost 11.5 billion VND while in the same period, it was 191 billion VND.

In contrast, foreign exchange trading brought in VND145 billion in net profit, while in the same period it lost nearly VND15 billion, thanks to an increase in revenue from spot foreign exchange trading of VND37 billion. Although the profit was only VND40 million, investment securities activities were also more positive than in the same period last year when they lost up to VND9.5 billion.

Net profit from service activities also increased by 4.1%, reaching 226 billion VND. Foreign exchange trading activities earned a profit of 145 billion VND while in the same period last year, it lost more than 14 billion VND.

As of March 31, 2023, the bank's total assets increased by 2.9% compared to the beginning of the year to more than VND 337,197 billion. Of which, customer loans increased by 2.8%, reaching VND 242,116 billion. In the debt structure, bad debt balance increased by 2.8% to VND 3,522 billion, but the bad debt ratio remained at 1.5% .

Source: https://www.nguoiduatin.vn/lpbank-duoc-chap-thuan-tang-von-vuot-28000-ty-dong-a611217.html