- 2025-01-22T00:00:00
- Company Research
LPB released its 2024 results with TOI of VND19.9tn (USD784mn; +27.5% YoY) and PBT of VND12.2tn (USD479mn; +72.6% YoY), fulfilling 108% and 121% of our respective FY2024 forecasts. Overall, LPB’s 2024 earnings tracked ahead of our expectations. We see potential upside to our current forecasts, pending a more extensive review.
- Credit growth in 2024 reached 20.4%, exceeding our full-year forecast of 17.5%. We observed that LPB's credit growth has been robust since the beginning of 2024, driven by strong performances in both the retail and corporate segments. The corporate segment experienced strong credit growth during the first 9M 2024, while the retail segment saw a significant surge in Q4 2024, with credit growth increasing by 15.5% QoQ.
- 2024 customer deposit growth was 19.3% vs 14.3% in 9M 2024, and the CASA ratio was 9.3%, relatively flat YoY and a slightly improvement of 1.7ppts QoQ.
- 2024 NII of LPB increased 37.4% YoY and completed 108% of our full-year forecast due to strong credit growth and higher NIM compared to 2023. The NIM for 2024 increased to 3.53% (+29 bps YoY), driven by a significant improvement in Q4, where NIM reached 3.81%, compared to 3.44% in Q3 2024. This trend different compared to other banks, which faced NIM pressure due to heightened competition.
- 2024 NOII was VND3.4.5tn (2.4% YoY), completing 106% of our full-year forecast. Within this, LPB's pure NFI declined by 9.9% YoY due to a high base in the previous year, which included one-off income from bancassurance. Additionally, LPB's net other income surged by 170%, driven by the recovery of previously written-off bad debts.
- 2024 CIR was 29.2% vs 36.8% in 2023. We expect that the CIR of LPB will continue to be maintained at a low level compared to around 40% in the past as per our discussion with bank, LPB has done a variety of restructuring in its operations to improve efficiency, including reducing the number of departments and shortening the approval process.
- Asset quality improved QoQ with the NPL ratio decreasing by 23 bps to 1.57% in Q4 2024 vs our full-year forecast of 1.75%. The group 2 loan ratio also decreased by 18 bps QoQ to 0.98% in Q4 2024%. In addition, LPB’s Q4 2024 LLR improved to 83% from 78% in the previous quarter.
LPB’s consolidated 2024 results
VND bn | 2023 | 2024 | YoY | Q4 2023 | Q4 2024 | YoY |
NII | 11,203 | 15,394 | 37.4% | 3,346 | 4,507 | 34.7% |
Non-interest income | 4,432 | 4,539 | 2.4% | 3,155 | 1,046 | -66.8% |
OPEX | (5,760) | (5,810) | 0.9% | (1,595) | (1,650) | 3.5% |
PPOP | 9,875 | 14,122 | 43.0% | 4,906 | 3,903 | -20.5% |
Provision expenses | (2,826) | (1,954) | -30.9% | (1,544) | (553) | -64.2% |
NPAT-MI | 5,582 | 9,721 | 74.1% | 2,638 | 2,670 | 1.2% |
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Loan growth** | 17.0% | 20.4% | 3.4 ppts | 4.5% | 3.7% | -0.8 ppts |
Deposit growth** | 10.0% | 19.3% | 9.3 ppts | 3.9% | 4.4% | 0.4 ppts |
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NIM | 3.24% | 3.53% | 29 bps | 3.70% | 3.81% | 10 bps |
Interest-earning asset yield | 9.91% | 7.81% | -210 bps | 9.64% | 8.00% | -164 bps |
Cost of funds | 6.76% | 4.75% | -201 bps | 6.50% | 4.63% | -187 bps |
CASA ratio* | 9.7% | 9.8% | 12 bps | 9.7% | 9.8% | 12 bps |
CASA ratio plus term deposits in FX | 9.8% | 9.9% | 12 bps | 9.8% | 9.9% | 12 bps |
CIR | 36.8% | 29.2% | -7.7 ppts | 24.5% | 29.7% | 5.2 ppts |
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NPLs / Gross loans | 1.34% | 1.57% | 23 bps | 1.34% | 1.57% | 23 bps |
Group 2 loans / Gross loans | 1.13% | 0.98% | -15 bps | 1.13% | 0.98% | -15 bps |
Accrued interest / IEAs | 1.35% | 0.95% | -40 bps | 1.35% | 0.95% | -40 bps |
Source: LPB, Vietcap — *CASA volume includes demand deposits and margin deposits; ** Q4 2023 and Q4 2024 loan and deposit growth is QoQ growth; 2023 and 2024 loan and deposit growth is 12M growth.
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