Following VCB, BID, and MBB, more bank stocks are about to surpass historical peaks

In 2023, LPBank stock will be among the top 3 stocks with the strongest share price growth among banking groups. This is the result of a change process. In early trading on January 11, stock market cash flow continued to perform strongly against bank stocks.

The sudden increase in demand once pushed the LPB share price of Lien Viet Post Commercial Joint Stock Bank (HM:) (LPBank) up by more than 3% to 17,000 VND/share. This is also the highest level in the past three years.

LPB stock traded more than 5 million shares, above the 20-trading day average of just over 2.7 million shares and above the previous four trading days combined.

Keep in mind that on June 3, 2021, LPB stock price established an all-time peak of VND18,460/share after a long-term rise of more than 520% ​​(since the end of March 2020). This was also the period when the stock market surged following the Covid-19 incident.

Most recently, LPBank stock ranked among the top 3 stocks in the banking group with the strongest price gains in 2023.

>>Bank stocks soared 70 points and rose 10-15% for more than 2 weeks in a row

Behind this positive development are profound changes in senior leadership positions. Accordingly, Mr. Nguyen Duc Thuy was elected as Chairman of the Bank’s Board of Directors with effect from December 9, 2022, succeeding Mr. Huynh Ngoc Huy (who resigned according to his personal wishes).

Another change is the name change from LienVietPostBank to LPBank.

Behind its brand awareness and ethical image, LPBank also attracted attention when it recently received approval from the State Bank (SBV) to increase its registered capital from more than VND20,576 billion to more than VND25,576 billion.

The increase in registered capital allows LPBank to continue to maintain its status as the top private commercial bank with the largest registered capital in the system; creating prerequisites for improving financial capabilities, enhancing competitiveness in the process of international economic integration, meeting shareholder expectations, and maximizing customer benefits. .

Especially under the current difficult market background, increasing capital also creates the basis and conditions for LPBank to continue to support enterprises and the overall economy in resuming production and operating activities.

LPBank regards innovation as one of its core values ​​and is always committed to applying advanced technologies to implement the banking value chain.

Investment efforts in technology and creative digital solutions have helped LPBank reap many “sweet fruits” in its business activities. As of the end of the third quarter of 2023, LPB’s total assets exceeded VND 365.45 trillion, an increase of 12% from the beginning of the year; credit growth increased by 11.8%, exceeding VND 263,644 billion.

Entering 2024, while successfully completing the tasks of model transformation and digital transformation, LPBank will strive for strong, safe and effective growth in the spirit of “strong growth – comprehensive and efficient”.

How do experts evaluate bank stock investment opportunities in 2024?

Mr. Tran Tanh, head of the investment analysis department at Yuanta Securities, said that we expect banking stocks to grow more aggressively in 2024 than in 2023 due to improved credit growth. It is expected that in 2024, the world economy will recover, exports will grow better, corporate orders will increase, and business prospects will be better.

In addition, the recovery of the real estate market can have spillover effects on multiple industries such as construction, building materials, and furniture, boosting credit in the entire market. When a bank’s main business grows positively, it will help improve the bank’s operating performance.

The second factor is that as average interest rates fall and the cost of capital gradually declines, net interest margin (NIM) will also improve by 2024. As for fee income, although it cannot grow as strongly as in previous years, from the perspective of payment and other business activities, it is still better than in 2023…

VinaCapital expert Mr. Dinh Duc Minh also said that by 2024, when the economy recovers and customer businesses have better operating performance, banks can achieve higher credit growth.

>> Bank stocks: BID (HM:) reached a historical peak in early 2024, and the other 2 codes are also approaching their peaks