Vietnam private lender LPBank has new name, plans stock dividend

The State Bank of Vietnam, the country's central bank, has approved the name change of Vietnamese private lender LPBank from Lien Viet Post Joint Stock Commercial Bank to Loc Phat Vietnam Joint Stock Commercial Bank.

Its abbreviated name – LPBank – remains unchanged, and the change will not affect the lender’s business and the interests of its customers, partners, and shareholders, LPBank affirmed.

The bank’s chairman Nguyen Duc Thuy stated that the name change marks a new development phase for the firm, towards comprehensive, sustainable, and prudent development.

Shareholders had approved the name change at the bank’s 2024 AGM held on April 17.

At its extraordinary AGM in September, the bank’s board will seek approval from shareholders to issue a stock dividend of 16.8% this year, meaning that a shareholder owning 1,000 shares will receive 168 new shares. After the issuance, the lender’s charter capital is set to raise to VND29.87 trillion ($1.18 billion).

This year, LPBank aims for VND10.5 trillion ($413.3 million) in pre-tax profit, up nearly 50% from 2023. Capital mobilized from individual and institutional customers is estimated to expand 11% to VND317.38 trillion ($12.5 billion).

In the first quarter of 2024, LPBank posted a pre-tax profit of VND2.88 trillion ($113.7 million), up 84.36% year-on-year and fulfilling 27.49% of the year’s target.