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- Q2 Pre-tax Profit: 3,147 billion (+5.3% YoY) \u2014 recovering after an 11% drop in Q1<\/li>\n
- However, profit increased thanks to a sudden spike in service income of 1,915 billion (up 2.25 times) \u2014 not from core operations<\/li>\n
- NIM fell to just 2.80% \u2014 the lowest in 8 quarters; CASA at 6.3% is among the lowest in the industry<\/li>\n
- Mr. Pham Nhat Vuong bought 4.89% of LPB (~6,700 billion) \u2014 a signal of confidence, but expectations are already partially reflected in the price<\/li>\n
- TCBS 2026F Pre-tax Profit forecast: 14,726 billion (+3.2%), lower than the plan; P\/B at 3.2x \u2014 more expensive than the industry average<\/li>\n<\/ul>\n<\/div>\n
![\"Chart](\"https:\/\/happite.com\/wp-content\/uploads\/2026\/07\/chart_lntt_quarterly.webp\")
LPB pre-tax profit by quarter (trillion VND). Source: TCBS <\/figcaption><\/figure>\n Profits are up, but the “backbone” is weaker<\/h2>\n
Anyone looking at LPBank’s Q2 results would see all green: Pre-tax profit +5.3%, total income +23.3% \u2014 it looks great. But looking at the components reveals the issues. <\/p>\n
Almost all of the increase came from one item: net profit from service activities of 1,915 billion VND, 2.25 times higher than the same period last year and accounting for 31.6% of total income. In the same period last year, this ratio was only 17.3%. Simply put: the bank made much more money from fees this quarter \u2014 but this kind of “lump sum” income is usually seasonal, and its repeatability in the coming quarters is unclear. <\/p>\n
Meanwhile, net interest income<\/strong> \u2014 the main source of revenue and the core health measure of a bank \u2014 only increased by 4.1%. This is despite outstanding loans growing by 9.6% since the beginning of the year. It feels like opening more stores but the profit earned doesn’t increase. Cumulatively for 6 months, pre-tax profit reached 5,973 billion, down 3.1% compared to the same period \u2014 only reaching 39.9% of the annual plan. <\/p>\n
NIM at 2.80% \u2014 an 8-quarter low, the story of expensive capital costs<\/h2>\n
The most worrying indicator in this report is perhaps the NIM (net interest margin), which fell to just 2.80%, the lowest in 8 quarters. This is down from 3.17% at the end of 2025. <\/p>\n
The root cause: quarterly interest expenses increased by 46.4%, 1.5 times the growth rate of interest income (29.3%). For the whole 6 months, interest expenses increased by 39.6% while interest income only increased by 28.2% \u2014 the gap is widening. <\/p>\n
Why? CASA \u2014 the ratio of demand deposits \u2014 is only 6.3%, the lowest in the industry. 93.7% are term deposits, which require interest payments. Demand deposits (which are almost free) even decreased. To compensate, the bank issued more valuable papers (+23.2%) at a higher cost. It’s like drinking soda instead of plain water after exercising \u2014 it quenches your thirst, but it’s expensive. <\/p>\n
![\"Chart](\"https:\/\/happite.com\/wp-content\/uploads\/2026\/07\/chart_nim_trend.webp\")
LPB NIM hit a bottom of 2.80% \u2014 the lowest in 8 quarters. Source: TCBS <\/figcaption><\/figure>\n Pham Nhat Vuong buys nearly 5% \u2014 a 6,700 billion deal<\/h2>\n
We can’t forget the “hottest” deal in the market recently: at the end of June, Mr. Pham Nhat Vuong bought 146.2 million LPB shares through a put-through transaction, equivalent to 4.89% of the capital, with a total value of about 6,700 billion VND \u2014 close to the 5% ownership cap for an individual in a bank.<\/p>\n
Mr. Vuong stated that this is a financial investment and he will not participate in management. For now, the deal serves as a signal of confidence. Looking further ahead, it opens up the possibility of connecting with the Vingroup ecosystem \u2014 home loans, electric vehicles, payments \u2014 a huge source of demand if it becomes a reality. <\/p>\n
However, TCBS also noted that LPB shares have risen from the 46,000 range to 53,500 VND \u2014 much of which happened after this news. Expectations have been partially reflected in the price. <\/p>\n
A balanced view: a good story but the price isn’t cheap yet<\/h2>\n
Of course, LPBank has its bright spots: credit grew faster than the industry average (+9.6% YTD), and ROE at 26% is among the highest \u2014 though partly due to capital decreasing after a 30% dividend payout (~8,961 billion). If the Vingroup story comes true, LPB could become one of the most interesting bank stocks of the year. <\/p>\n
On the flip side, the provision buffer is thinning. Bad debt has increased for 3 consecutive quarters to 1.85%. Bad debt coverage has decreased for 4 consecutive quarters, from 75.3% to 66.8%. Group 5 debt rose to 4,366 billion \u2014 more than half of the total bad debt. Provisions are expected to increase by 49%, while NIM hasn’t bottomed out yet and service income is hard to repeat. <\/p>\n
At the current market price, LPB is trading at a P\/B of 3.2x and a P\/E of 14.3x \u2014 more expensive than the industry average. TCBS recommends that investors observe further, waiting for a clearer signal that NIM has bottomed out. <\/p>\n
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