AsemconnectVietnam - Lien Viet Post Commercial Joint Stock Bank (LPBank - stock code: LPB) has just announced its business results for the second quarter and first six months of 2023.

Accordingly, LPBank closed the second quarter with many fluctuations with pre-tax profit of VND880 billion. Accumulated to June 30, 2023, LPBank's pre-tax profit was at VND2,446 billion, down 31.8% over the same period in 2022. Previously, at the 2023 annual meeting held in April, the General Assembly LPBank shareholders set a target of pre-tax profit this year at VND6,000 billion, up 11% compared to 2022.
LPBank's business activities in the first half of this year were in the context of general difficulties of the industry as well as the economy. With central banks around the world tightening monetary policy from 2022, the Fed continuously raised interest rates, along with the freezing situation in the asset market (especially real estate) negative impact on the domestic banking system.
According to the General Statistics Office, as of June 20, 2023, credit growth of the whole banking system only reached 3.13%, much lower than in the first half of 2022 (the same period last year increased by 8.51%).
Low credit growth shows that the economy's ability to absorb capital is still weak. The main reason is due to the sharp decrease in credit demand, the lack of orders for export enterprises, in addition, some groups of customers have demand but have not met the loan conditions or still have problems with legal procedures.
Credit (output) has faced difficulties although recently, lending interest rates have cooled down to support customers to restore production and business, while input still has a balance of capital mobilized with high interest rates since the end of 2022 and the beginning of the year, therefore, the net interest income of affected banks is understandable.
LPBank data shows that, at this bank, capital mobilization reached more than VND267,133 billion. Outstanding loans reached VND253,419 billion. The bad debt ratio, although increased compared to the end of 2022, is still within a safe range.
It is known that on the basis of exploiting the large network to develop the retail customer segment in rural areas, the bank's capital mobilization will still grow well in the first half of 2023. Revenue from services is also good and diversify supply activities. Income from foreign currency trading grew strongly compared to the same period last year. Accordingly, net service revenue brought in VND475 billion.
Notably, the State Bank has recently approved for LPBank to increase its charter capital by a maximum of VND11,385.3 billion through issuing shares to pay dividends (VND3,285 billion), offering shares to existing shareholders (VND5,000 billion), private placement of shares to foreign investors and issuance under the employee selection program to increase charter capital.
N.Nga
Source: VITIC/Tinnhanhchungkhoan