Credit Rating Result
Hanoi, 13 March 2026 - VIS Rating has assigned a long-term issuer rating of A- to LPBank Securities Joint Stock Company (LPBS). The outlook on LPBS’s A- issuer rating is stable. This is the first time VIS Rating has assigned a rating to LPBS.
SUMMARY OF KEY FACTORS
| Extremely weak | Very weak | Weak | Below average | Average | Above average | Strong | Very strong | |
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| Stand-alone Assessment | ▲ | |||||||
| Risk appetite | ▲ | |||||||
| Leverage | ▲ | |||||||
| Profitability | ▲ | |||||||
| Funding & Liquidity | ▲ |
| Low | Moderate | High | Very high | Extremely high | |
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| Affiliate support | ▲ | ||||
| Government support | ▲ |
Rating rationale
The A- long-term issuer rating reflects LPBS’s above-average standalone assessment and our low expectation of extraordinary support from affiliates or the government. LPBS’s standalone assessment is underpinned by its above-average leverage, funding, and liquidity metrics, as well as average profitability and risk appetite relative to industry peers.
Established in 2009, LPBS is currently a mid-sized, privately-owned securities firm with total assets of VND 30 trillion as of the end of 2025. Following changes to its shareholder structure in late 2023, the firm formed a new management team and adopted a new strategy to strengthen its key businesses: brokerage and margin lending, corporate bond operations, and proprietary equity trading. The firm completed its rebranding in collaboration with Fortune Vietnam Joint Stock Commercial Bank (LPBank), raised significant capital, strengthened its brokerage services, and its staff force.
In 2025, LPBS’s core businesses contributed over half of its total operating income - margin lending (35%) and equity trading income (20%). The other half came from fixed-income gains - mainly from bank bonds and deposits.
According to management, LPBS targets asset growth of around 30% in 2026, aiming to rank among the top 10 securities firms within 3–5 years. To support this expansion, the firm plans to raise VND 4.3 trillion through an IPO in 2026, increase longer-term bond and offshore funding, and deepen collaboration with LPBank, particularly in cross-selling and digital platform development.
We assess LPBS’s risk appetite at ‘Average’ level, reflecting its sizeable credit concentration in margin lending and our expectation of higher exposure to higher-risk assets – particularly non-FI corporate bonds - over the next 12-18 months.
As of end-2025, LPBS’s risk appetite ratio stood at 2.5%, significantly lower than the industry average. According to management, LPBS plans to expand its non-FI bond holdings to up to 9% of total assets over the next 12-18 months.
The firm plans to expand its holdings beyond the current portfolio of bonds issued by leading industry parks, prioritizing large, financially stable companies across real estate, infrastructure, and industrial park sectors. In addition, LPBS will collaborate with LPBank on new-customer screening and selection to strengthen its underwriting standards.
Margin lending remains highly concentrated among large borrowers compared with peers, reflecting LPBS’s rapid expansion to gain market share. Over the past two years, margin loans grew around six times faster than the industry average. We note that its exposure to low-liquidity stocks and, occasionally, flexible collateral valuations increase the risk of overdue loans and vulnerability to credit losses during periods of prolonged market stress.
While management plans to diversify toward mass retail clients to achieve significant margin loan growth over the next 12–18 months, we expect credit concentration to remain elevated in the near term. The retail segment is highly competitive, and early-stage growth firms typically require time to scale sustainably while maintaining disciplined risk management.
We position LPBS’s profitability at ‘Average’ level, reflecting our expectation of improving ROAA from higher margin lending and investment income.
During 2024-2025, the firm’s ROAA averaged 3.0%, below most rated peers, due to elevated funding costs and lower asset yields – FI bonds and certificates of deposit (CD) make up the majority of its assets. In addition, its funding costs – averaging 5.1% in 2025, higher than 4.4% among peers – weigh on its profitability.
According to the management, LPBS targets improving its ROAA to 4.6% by 2027, through expanding higher-yielding non-FI bond holdings and raising net interest margins of its margin loans by expanding into the mass retail segment.
The firm also aims to broaden its customer base via enhanced cross-selling with LPBank, expanding its sales force and product suite—including covered warrants—to support more stable recurring income.
However, LPBS’s relatively high reliance on equity trading materially increases earnings volatility. In 2025, equity trading accounted for around 20% of total operating income, well above peers’ average of 7%, resulting in significantly higher pre-tax earnings volatility (153% versus peers’ 119%). We therefore expect earnings volatility to remain above peer levels over the next 12–18 months.
We assess LPBS’s leverage at ‘Above-Average’ level, reflecting its strong capitalization and demonstrated commitment to supporting growth through sizeable capital injections and a consistent non-cash dividend policy. Over the past two years, the firm has maintained an average leverage ratio of 1.8x—materially below the industry average of 2.4x—while raising approximately VND 12.4 trillion in new capital, significantly outpacing peers.
Looking ahead, we expect leverage to remain well-managed over the next 12–18 months, supported by improving profitability and planned equity issuance. Management intends to maintain leverage below 2.5x and raise an additional VND 4.3 trillion in 2026 following its IPO, which we view as sufficient to fund continued asset growth, including margin lending expansion, without materially weakening the firm’s capital buffer.
We position LPBS’s funding and liquidity at ‘Above-Average’, supported by its substantial liquid asset buffers and established access to bank funding, including support from LPBank,
As of end 2025, highly liquid assets—primarily CDs and term deposits —accounted for 29% of total assets, materially higher than the industry average of 17%. The firm’s liquidity inflow-to-outflow ratio stood at 109%, modestly above the industry average of 106%, indicating adequate coverage of short-term obligations.
LPBS’s reliance on short-term bank borrowings is mitigated by these buffers and its diversified bank funding base. In addition, the firm maintains sizable clean credit lines from LPBank, which provides further liquidity flexibility. While management plans to gradually lengthen the funding maturity profile through bond issuance and offshore borrowings, we expect LPBS’s refinancing risk to remain well managed over the next 12–18 months, underpinned by its strong liquidity position and stable access to funding.
LPBS’s issuer rating does not incorporate uplift for affiliate and government support.
The outlook on LPBS’s long-term issuer rating is stable, reflecting our view that its leverage and liquidity profiles will remain robust following LPBS’s strong track record of new capital injections and sizeable liquid asset buffers over the next 12-18 months.
Factors That Could Lead to an Upgrade/Downgrade
Rating methodology
Credit rating history
| Date | Rating type | Rating | Outlook | Action |
|---|---|---|---|---|
| 13 March 2026 | Long-term issuer credit rating | A- | Stable | First-time assignment |
Regulatory disclosures
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LPBS’s ownership stake in VIS Rating: 0%
The ownership ratio of LPBS held by VIS Rating’s staff: 0%
Cases in which analysts and credit rating council members cease their participation in the credit rating contract before the contract expires and the reason for the cessation: 0
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Analyst & Committee
Primary Analysts
Rating Committee Members
Credit Rating Announcement Number
Public credit rating announcement no: VN0309312029-001-130326
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