LPBank’s Q3 net profit more than doubles on service growth

Hanoi-based Loc Phat Vietnam Joint Stock Commercial Bank, or LPBank, reported a net profit of VND2.33 trillion ($93 million) in the third quarter of this year, 2.3 times that of the same period in 2023.

The Q3 net profit, driven by higher revenue from services, sent the bank's tally for the first nine months of 2024 to over VND7 trillion ($280 million), nearly 2.4 times that of the same period last year, according to its earnings report.

The lender, listed on the Ho Chi Minh Stock Exchange as LPB, posted a pre-tax profit of VND2.89 trillion ($115.2 million) in Q3, up 133.7% year-on-year, and VND8.81 trillion ($350.4 million) in the nine-month period, up 139%.

As a result, the firm fulfilled 84% of its 2024 pre-tax profit target of VND10.5 trillion ($417.2 million).

This positive result was significantly driven by service activities. LPB generated VND2.95 trillion ($117.4 million) from services in Q3, a 3.3-fold rise year-on-year. With a 52% reduction in service costs, the lender brought in a net profit of VND1 trillion ($40.37 million) from services, up 519.9%.

As of end-September, LBP’s total assets hit VND455.8 trillion ($18.1 billion), up 19% from end-2023. Outstanding loans jumped by 16% to nearly VND320 trillion ($12.7 billion), while bad debt surged by 70% to VND6.27 trillion ($249.2 million), resulting in a bad debt ratio of 1.96%.

LPB’s customer deposits hiked by nearly 14.3% to VND271.3 trillion ($10.7 billion).

On November 15, LPBank will hold an extraordinay general meeting to discuss major issues including plans to pay a stock dividend and acquire up to a 5% stake in local tech giant FPT Corp.

LPB shares closed Friday up 0.78% to VND32,350 ($1.29) each.