Vietnam’s banking sector continues to face sweeping workforce reductions, with LPBank emerging as one of the most aggressive institutions in streamlining operations. In the first quarter of 2025 alone, the bank slashed more than 1,600 jobs - nearly 15% of its total workforce.

Loc Phat Commercial Joint Stock Bank (LPBank) was the first Vietnamese bank to release its Q1/2025 financial report, revealing a significant cutback in headcount. As of March 31, 2025, the bank employed 9,570 people, down by 1,619 from the end of 2024 - a 14.46% decrease.

Personnel costs in Q1 also fell by more than 8% year-on-year, totaling VND 732.8 billion (approximately USD 29.3 million). This included VND 657 billion (USD 26.3 million) in salaries and allowances, down 7%, while employer contributions to social, health, and unemployment insurance dropped 26.6%.

Despite the dramatic workforce reduction, LPBank reported an increase in average employee income. In Q1/2025, average monthly income per employee was VND 24.63 million (USD 983), up VND 1.81 million from the 2024 average. Of this, average salary was VND 22.08 million (USD 881) per month.

LPBank also posted its highest-ever quarterly pre-tax profit of VND 3,175 billion (approximately USD 126.7 million), a year-on-year increase of over 10%.

Total outstanding loans to customers reached more than VND 352 trillion (USD 14 billion), reflecting credit growth of 6.2% in the first three months - well above the sector’s average of 2.5%. Compared to Q1/2024, the bank’s credit growth surged nearly 15%.

Notably, LPBank’s real estate loan portfolio accounted for just 2.83% of its total lending, making it one of the banks with the lowest real estate exposure in Vietnam.

Customer deposits reached VND 293.2 trillion (USD 11.7 billion), up 3.5% from the end of 2024.

LPBank plans to hold its 2025 Annual General Meeting (AGM) on April 27 in Ninh Binh, where it will present shareholders with a business plan targeting VND 14.87 trillion (USD 593 million) in pre-tax profit for the year - up 22.2% from 2024. The bank also aims to pay a 25% cash dividend for 2024, one of the highest payout ratios in Vietnam’s banking sector.

Tuan Nguyen