2025 is a prosperous year for Vietnam's banking industry, with credit growth across the system reaching nearly 19%, total outstanding loans reaching approximately 18.58 million billion VND. Pre-tax profit across the industry is estimated at nearly 356.600 billion VND, an increase of nearly 19% compared to the previous year.
However, behind the picture of high profit growth, there is an increasingly clear differentiation in operating efficiency. Not every bank that increases in scale improves its profit quality or controls capital costs well.
In that context, Loc Phat Vietnam Commercial Joint Stock Bank (LPBank) closed 2025 with outstanding business results, and what is more noteworthy is that the bank has created a clear mark on growth quality, proving that strategic transformations have been effective.
Highest growth in scale and profits in history
Maintaining the growth rate throughout the year, by the end of fiscal year 2025, LPBank's total consolidated assets exceeded 605,000 billion VND, an increase of 19% compared to the previous year. The scale of capital mobilization reached more than 401,680 billion VND, affirming the brand's reputation, and creating a solid capital foundation for core business activities.
LPBank's pre-tax profit in 2025 increased by 17%, reaching 14,269 billion VND. This is the highest level in the bank's operating history.
The results of stable double-digit growth in the context of the market in 2025 facing many challenges show that banks are consolidating their positions, expanding their scale in a controlled manner, instead of simply chasing credit growth.
Outstanding highlights: Efficient use of capital and assets
A noteworthy point in LPBank's financial picture in 2025 is not only the scale and absolute profit, but also the efficiency indicators.
According to the bank's report, the return on equity (ROE) reached 25.2%, reflecting the return on capital of shareholders at a high level compared to the industry average. At the same time, the return on total assets (ROA) reached 2.05%, showing that each asset of the bank generates a higher efficiency profit than the general level of many Vietnamese commercial banks.
Along with that, LPBank's net interest margin (NIM) in the fourth quarter of 2025 reached 3.6%, an increase of 0.3 percentage points compared to the third quarter. This development reflects the ability to optimize the lending portfolio and control capital costs in the context that deposit interest rates in the market are still under competitive pressure.
The simultaneous improvement in ROE, ROA and NIM shows that LPBank is not growing by simply expanding assets, but is clearly improving the efficiency of both asset and capital use - an important milestone of the deep management strategy.
Cost control is among the best in the industry
Another key indicator reflecting LPBank's operating efficiency is the cost-to-income ratio (CIR). In 2025, LPBank's CIR was 28.3%, down about 1 percentage point compared to 2024.
According to a summary from the financial statements of some listed banks in 2025, the CIR of many banks fluctuates around 30% - 40%, depending on cost strategy and level of technology investment. Meanwhile, LPBank's CIR is at 28.3%, belonging to the group with the best cost efficiency in the system. Low CIR is not only a story of cost reduction, but also reflects the efficiency of the organizational structure, standardization of processes and the ability to exploit technology to reduce marginal costs.
Over the past time, LPBank has taken drastic steps in personnel optimization, innovation, digital transformation and application of AI in management and operation. The bank was honored in the "Excellent Digital Transformation Enterprise" category within the framework of the Vietnam Digital Awards 2025. Successfully deploying the CoreBanking T24 system in just 7 months, applying AI in customer identification and authentication, applying Big Data in data storage and behavior analysis, authenticating and identifiing customers through chip-based CCCDs... not only significantly increases customer experience, but also makes an important contribution to increasing operational efficiency and reducing costs.
Optimizing CIR is a factor creating room for sustainable profit growth in the coming years, especially when the industry's profit margin tends to narrow.
Restructuring income structure - reducing credit dependence
Another notable highlight in LPBank's 2025 results is the clear improvement in the income structure.
According to the bank's announcement, non-interest income accounted for 27% of total operating income (TOI), a sharp increase compared to 22% in 2024. The main driving force came from off-balance sheet debt recovery increasing by 151% and foreign exchange and securities business activities increasing by 54%.
The increase in the proportion of non-interest income shows that LPBank is gradually reducing its dependence on credit growth - which is subject to cyclical risks and builds a more stable profit base. This is also a trend being pursued by many large banks in the system, in order to increase resilience to economic fluctuations and interest rates.
