VPBank jumps 32 spots in global banking

In the event announcing the 100 most valuable brands in Vietnam on Tuesday, brand valuation consultancy Brand Finance named VPBank as one of four organizations with the highest growth in brand value.

VPBank’s representative receiving the certificate for being one of the 100 most valuable brands in Vietnam. Photo courtesy of VPBank

Within the last seven years, the bank’s brand value has increased 23 times since it was first valued by the consultancy at $56 million.

Thanks to the swift growth in brand value, VPBank has jumped 32 ranks compared to 2022. It is also the fourth consecutive year that the bank’s rank in this report has improved. The bank’s brand was also rated AA+.

The Brand Strength Index of the bank, according to Brand Finance, was at 77.61. With this score, VPBank is considered one of the fastest-growing banking brands in Vietnam.

"Brand value is improved due to the strong growth in brand strength. This growth is the result of remarkable communication, brand identity repositioning, and realigning activities in the mid-half of 2022, as well as financial projections," said Alex Haigh, Managing Director in the Asia Pacific area of VPBank.

In addition, it is the synergy of the Vietnamese market’s potential and the bank’s recent M&A deals, along with the completed acquisitions of OPES Insurance and VPBank Securities, that promotes the bank’s brand and enables it to serve customers.

According to Pham Thi Nhung, DCEO of VPBank, this is the due acknowledgement of all the bank’s effort in developing a comprehensive, diverse segment strategy focusing mainly on retail banking and SMEs.

"It is also combined with a unique business model to bring prosperity values to customers and Vietnamese towards its ultimate goal of a prosperous Vietnam," Nhung said.

VPBank’s building at 89 Lang Ha Street, Dong Da District, Hanoi city. Photo courtesy of VPBank

Last year, credibility and brand strength lent themselves to VPBank's successful mobilization of more than $1 billion from global financial institutions, diversifying the funding for medium- and long-term loans and ensuring liquidity ratios.

Compared to the end of 2021, customer deposits also improved by nearly 30%. The consolidated capital adequacy rate under Basel II reached nearly 15%, among the best in the market. The bank’s profit before tax increased by 48% year over year in 2022 and exceeded $1 billion.

In the first half of 2023, despite a troublesome macro-economy posing challenges to the business, VPBank went on to attract approximately 4 million new customers, raising the total customer base in its ecosystem to 28 million.

This year, Moody’s also retained the bank’s credit rating of Ba3. The growth in brand power, inner strength, and business prospects fortified SMBC’s confidence to acquire 15% of VPBank and become its strategic investor.

On the occasion of its 30th anniversary last week, VPBank’s leadership announced the target of entering the 100 biggest banks in Asia list by 2026.

The bank also announced its new core values of integrity, aspiration, discipline, innovation, efficiency and effectiveness in a forward-looking move to achieve its goals.