Vietnamese banks ranked among 500 strongest in region

HDBank ranked amongst the best banks in Asia

Specifically, there are 19 Vietnamese banks in the ranking, including Vietcombank, MB, Techcombank, HDBank, BIDV, ACB, and Vietinbank.

According to the ranking, Vietcombank holds the leading position amongst Vietnamese banks in terms of asset value, financial strength, and brand influence. Vietcombank is also leading the group of banks which has profits of over VND10 trillion ($430.76 million) in the last two years.

Techcombank is the star in the banking sector with a strong profit rise in 2019. Meanwhile, HDBank is highly regarded by The Asian Banker for its tremendous potential in terms of the growth of scale, balance sheet quality, risk management, the operational quality and liquidity.

Some credit institutions in the list of the 10 strongest Vietnamese banks in the region provide different capabilities. Following its crisis, ACB has made an impressive rebound to become one of the strongest commercial banks. Meanwhile, TPBank has made a breakthrough in technology and services after being restructured.

Three banks with state capital – Vietinbank, BIDV, and Agribank – are also highly regarded by The Asian Banker despite their challenges. Vietinbank is under great pressure to hike capital to satisfy Basel II standards while Agribank has yet to launch its initial public offering (IPO). BIDV, after all its efforts, has recently solved the problem of negotiating with a foreign strategic partner.

Some banks such as Vietcombank, Techcombank, HDBank, MB, and ACB have also met Basel II standards before the central bank's 2020 deadline. The banks not only improve credit quality and risk management according to international standards but also show good financial capacity with positive business performance.

Among them, HDBank has produced impressive growth over the past 10 years as it has grown 22 times in terms of scale, assets, and outstanding loans. The bank has successfully maintained their superior asset quality for many consecutive years and been acknowledged among the best banks in risk management. In addition, its ROA and ROE both reflect high profitability while its separate non-performing loan ratio is kept at 1 per cent.

In a market where different strategies are vital to bringing organisations forward, HDBank not only has a long-term vision but also boasts advantages of unique customer ecosystem and M&A capacity. The bank has conducted two mega M&A deals including the acquisition of Société Générale Viet Finance (SGVF) and the merger between DaiABank and HDBank.

HDBank has gone through two phases of restructuring of the credit institution system with extensive experience in post-M&A. Unlike a number of financial institutions, it seems that every time HDBank secures M&A deals, the bank marks a new level of development and scale.

The Asian Banker’s award ceremony was held at Sibos 2019 in London at the end of September to honour the 500 strongest banks in the world. The awards once again reflect the competitiveness and integration of Vietnamese banks into financial markets in the region and the world.