Credit Rating Result

Hanoi, 08 May 2026 - Vietnam Investors Service and Credit Rating Agency Joint Stock Company (VIS Rating) has affirmed Fortune Vietnam Joint Stock Commercial Bank’s (LPBank) A+ long-term issuer rating. The rating outlook remains stable.
The rating presented in this announcement is effective from the date of the announcement and remains in effect unless and until it is superseded by a subsequent rating action. Please visit https://visrating.com/rating-results to obtain the latest update on the rating.

Rating rationale

The affirmation of LPBank’s A+ long term issuer rating with a stable outlook reflects VIS Rating’s expectation that the bank will maintain robust profitability, supporting internal capital generation and loss absorption capacity, alongside stable funding and liquidity.
The rating also factors in rising asset risk and credit costs stemming from rapid loan growth and higher interest rates, which, if sustained, could pose increasing downside risks to its standalone assessment.
LPB’s asset quality weakened over 2024–1Q2026, driven by higher delinquencies in retail mortgages and household business loans. The increase in the problem loan ratio to 1.8% in 1Q2026 from 1.6% in 2024, alongside a decline in loan loss coverage to 70%, signals rising pressure on asset quality.
We expect the problem loan formation rate to be elevated over the next 12–18 months, reflecting weaker debt-servicing capacity among retail borrowers amid higher interest rates and seasoning risks from rapid loan growth. The continued focus on retail and mortgage lending may increase the bank’s exposure to investment related borrowers and add to downside credit risks.
In 2025, the bank reported a strong return on average assets (ROAA) of 2.1%, above the industry average of 1.5%, supported by higher fee income, debt recovery gains, and disciplined cost management. Over the next 12–18 months, intensifying net interest margin pressure and potentially elevated credit costs are likely to moderately weigh on profitability; however, ROAA should remain above the industry average and continue to support internal capital generation.
The bank’s tangible common equity (TCE) to risk weighted assets stood at 9.8% in 2025. Following the recent shareholder approval of cash dividends totaling around VND 9 trillion, we expect capital levels to remain broadly stable over 2026–2027, supported by robust profitability.
We expect LPBank’s funding and liquidity to remain stable despite intense deposit competition, supported by continued efforts to lengthen its funding profile and sizable liquid asset buffers.
CASA deposits stood at 7.3% of gross loans at end 2025, below the industry average. In 2026, the bank plans to issue VND 5 trillion of subordinated bonds with 7–10 year maturities to support loan growth. Liquid assets accounted for 28% of total assets in 2025, which we view as sufficient to cover short term market funding needs.
LPBank’s A+ rating incorporates our assumption of a moderate likelihood of government support in extraordinary circumstances, reflecting the bank’s sizable domestic franchise and a strengthened regulatory framework that equips authorities with multiple resolution tools for distressed banks.

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Credit rating history

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