• We attended LPB’s annual general meeting (AGM) in Ninh Binh on April 27, 2025. The main agenda was to (1) propose 2025 business targets, (2) approve the 2024 profit distribution plan, and (3) approve the establishment of LPBank Asset Management Company. The Q&A section focused on LPB’s assessment of US tariff risk, the bank's long-term business strategy, and its recently launched auto-earning product called “Sinh loi Loc Phat.”
• Shareholders approved the bank’s 2025 business guidance, which includes (1) total assets of VND526tn (+3.5% YoY), (2) total credit of VND384tn (+15.8% YoY), (3) deposit growth in accordance with credit growth, and (4) PBT of VND14,868bn (+22.2% YoY). 
• Shareholders approved a cash dividend of VND2,500/share, implying a dividend yield of 7.7%.
• Shareholders approved the establishment of LPBank Asset Management Company.

LPB only has 0.3% credit exposure to companies operating in the export-import sector that may be affected by potential US tariffs. As a result, management expects any tariffs should not significantly impact the bank’s credit quality. Since the announcement of tariffs, LPB has held multiple meetings to assess the potential impact and develop solutions, one of which is the establishment of LPBank AMC.

LPB's five-year strategy is to become 1) the leading retail bank in rural areas and second-tier urban areas on a digital platform, and 2) one of the top five priority banks in large cities. To develop this strategy, the bank has conducted extensive research and surveys, taking into account LPB’s unique network and capabilities as well as market trends in terms of technology and customer experience.

Regarding a potential stake sale to foreign strategic shareholder (s), this is one of the bank’s long-term plans. However, given the current market situation, the Board of Directors will closely monitor market developments and only make plans when suitable investors are identified. There are no such plans yet for 2025. Any stake sale will aim to maximize value for shareholders and support the bank's long-term development strategy.

100,000 customers have activated LPB’s auto-earning feature called "Sinh loi Loc Phat.” This feature aims to create more value for the bank's customers by optimizing the idle cashflows in their payment accounts with a potential yield of up to 4.3% per year. Specifically, customers can earn interest on the amount exceeding a threshold of VND5mn in their payment accounts while being able to withdraw the money at any time.

Despite a high cash dividend payout, LPB believes it will be able to maintain a strong CAR to earn a high rating per Circular 52 by the State Bank of Vietnam. The bank’s CAR reached 13.81% by the end of Q1 2025, well above the regulatory minimum of 8.0%.

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