VPBank brand value reaches nearly $1.3 billion

August 15, 2023 | 15:25
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VPBank’s value is almost 1.5 times as high as the previous year, valued at nearly $1.3 billion and ranking 173rd in the world’s 500 most valuable banking brands.
VPBank brand value reaches nearly $1.3 billion
Pham Thi Nhung, deputy CEO of VPBank (in the middle) at the ceremony honouring the Top 100 Most Valuable Brands in Vietnam 2023

In an event announcing the 100 most valuable brands in Vietnam on August 15, Brand Finance, the world's leading brand valuation consultancy, addressed VPBank as one of the four organisations with the highest growth in brand value.

VPBank is valued at $1.3 billion. Accordingly, within the last seven years, the bank’s brand value has increased 23 times since it was first evaluated by a consultancy at $56 million.

Thanks to the swift growth in brand value, VPBank has jumped to 173rd among 500 global banks with the most valuable brand, improving 32 ranks in comparison to 2022. It is also the fourth consecutive year that VPBank’s rank has improved.

Besides this, the bank’s Brand Rating was also rated AA+. The Brand Strength Index of the bank, according to Brand Finance, was scored at 77.61. With this score, VPBank is considered to be one of the two fastest-growing banking brands in Vietnam.

“Brand value has been improved due to the strong growth in brand strength. This impressive growth is the result of remarkable communication, brand identity repositioning and realigning activities from the mid-half of 2022, as well as financial projections” said Alex Haigh, managing director in Asia Pacific area on the fast growth of VPBank’s brand value.

It’s the synergy of the Vietnamese market’s potential and the bank’s recent merger and acquisition deals, along with the completed acquisitions of OPES Insurance and VPBank Securities that has promoted the bank’s brand and enables it for all customers in the market.

“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, combining a unique business model to bring prosperity to customers and Vietnamese towards its ultimate goal: prospering Vietnam,” said Pham Thi Nhung, VPBank's deputy CEO.

VPBank brand value reaches nearly $1.3 billion

Last year, this credibility and brand strength allowed VPBank to mobilise successfully 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 per cent. The consolidated capital adequacy rate (CAR) under Basel II reached nearly 15 per cent, among the best in the market. The bank’s profit before tax increased by 48 per cent year over year in 2022 and exceeded $1 billion.

In the first half of 2023, despite troublesome macroeconomic challenges, VPBank went on to attract approximately 4 million new customers, raising the total customer base in its ecosystem to 28 million, equivalent to one-third of Vietnam’s population.

This year, Moody’s also retains the bank’s credit rating of Ba3. As a result, the growth in brand power, inner strength and business prospect fortified SMBC’s confidence (Japanese bank) to acquire 15 per cent of stakes from VPBank and become the bank’s strategic investor.

On the occasion of its 30th anniversary last week, VPBank’s leadership officially announced the target to put VPBank in the top 100 biggest banks in Asia by 2026. At the same time, the bank also announced its five new core values: "Integrity, Aspiration, Discipline, Innovation, Efficiency & Effectiveness" in a forward-looking move to achieve its goals.

VPBank has received a 10 per cent deposit from SMBC VPBank has received a 10 per cent deposit from SMBC

At an investor-update meeting on May 18, Luu Thi Thao, deputy general director of VPBank, revealed that the bank has received a 10 per cent deposit from Japanese partner SMBC, as part of the $1.5 billion private placement agreement signed between the two banks.

VPBank launches Enterprise Data and Analytics Division VPBank launches Enterprise Data and Analytics Division

As part of its ongoing measures to strengthen the use of data analytics and AI in driving value, VPBank held a ceremony at its headquarters on June 5 to launch its new Enterprise Data and Analytics (EDA) Division.

VPBank CEO outlines policy responses and growth prospects amidst economic challenges VPBank CEO outlines policy responses and growth prospects amidst economic challenges

At a virtual conference on July 16 to review the Vietnamese banking sector's first-half performance and plot its course for the remainder of the year, Nguyen Duc Vinh, CEO of Vietnam Prosperity Joint-Stock Commercial Bank (VPBank), underscored the decisive role of the government and various sectors in stimulating the national economy.

By Thanh Van

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