VPBank wins Vietnam House of the Year 2022

October 12, 2022 - 15:57
VPBank had the lowest cost-income-ratio in the banking system in mid-2022, at 20.6 per cent. It also took the lead in terms of return-on-assets and return-on-equity, with 3.5 per cent and 23.4 per cent respectively. 

 

VPBank's award-winning annoucement. — Photo courtesy of VPBank

HÀ NỘI — VPBank has earned the Vietnam House of the Year 2022 Award for its briliant performance in risk management.

The award marked the second year VPBank has been honoured as the best bank in Việt Nam in terms of risk management. 

The reviewing board said it was deeply impressed by VPBank's robust risk management systems and advanced internal technological platforms, which have allowed the bank to quickly adapt to the post-pandemic "new normal" and global uncertainties caused by geopolitical conflicts and contracting monetary policy. 

A customer uses a VPBank ATM. — Photo courtesy of VPBank

The board was also impressed by the bank's strategy to embrace digital transformation and develop new technologies with its own resources. Remarkably, VPBank can leverage artificial intelligence to improve its operation and boost its growth, especially in car loans. 

The digitalisation of its lending process has significantly improved customer experience and expanded customer base. By late 2021, roughly 75 per cent of VPBank's car loans were approved via Race App, placing it at the top of joint-stock banks in this regard.

VPBank equity topped VNĐ98.5 trillion this year, up 14.3 per cent compared to late 2021. Thanks to the abundant capital, its Basel II capital-adequacy-ratio reached 14.3 per cent by June, well above threshold of 8 per cent set by the State Bank of Vietnam and comparable to that of leading banks in the region.

It is also worth noting that VPBank is the first bank in Việt Nam to phase in Basel III liquidity risk management by developing a methodology to monitor liquidity-coverage-ratio and net-stable-funding-ratio. 

VPBank had the lowest cost-income-ratio in the banking system in mid-2022, at 20.6 per cent. It also took the lead in terms of return-on-assets and return-on-equity, with 3.5 per cent and 23.4 per cent, respectively. 

Additionally, the bank has incorporated Environmental, Social and Governance standards into its risk management framework. By August, it has become the first bank in Việt Nam to publish climate-related financial disclosures, a shift towards more climate-focused portfolios. 

On grounds of such performance, Moody's has assigned a credit rating of Ba3 to VPBank and opined that its asset quality would remain stable in the next 12 to 18 months owing to economic recovery.

House of The Year is an annual award given by Asia Risk, a prestigious magazine in risk management and derivatives, to honour the best financial institutions in the Asia-Pacific in terms of risk management.

Annually, Asia Risk picks potential candidates for the award and polls clients of prestigious financial institutions in various countries to find the most award-deserving ones.

With 22 years of experience in awards, Asia Risk has gained prestige in the international financial community. — VNS

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