VIB leads the industry in the Top 50 Most Effective Companies in VN

December 28, 2022 - 16:10
The jury tracked companies' business results for three consecutive years, based on three growth metrics: revenue, return on equity (ROE) and return on share


A photo shows top 8 most effective banks in Việt Nam in 2022. — Photo courtesy of VIB

HÀ NỘI — During the recent ceremony to recorgnised Top 50 Most Effective Business Companies in Việt Nam in 2022, eight banks which posted outstanding business performance and sustainable growth rate were named, including VIB, Vietcombank, ACB, MB, VPBank, Techcombank, TPBank và SHB.

This was the second consecutive year that VIB had been honoured with the leading position in the banking industry.

These firms (TOP50) were selected by Nhịp Cầu Đầu Tư Magazine and Thiên Việt Securities Co annually with consultation from many leading economic experts from Harvard Business School. The jury tracked companies' business results for three consecutive years, based on three growth metrics: revenue, return on equity (ROE) and return on share. The measurement results aim to objectively assess the corporate governance capacity, thereby finding and honouring the most effective listed companies.

Chart 1: Annual revenue growth in 2019-21 period


Source: Nhịp Cầu Đầu Tư Magazine

Over the past years, many banks in the top eight have made sharp strategic transformations. They have also made endless efforts in improving and diversifying products and services. That helped their average revenue growth in three years reach over 17 per cent. Three of them recorded an outstanding growth including VIB, TPBank and MB with respective rates of 28 per cent, 26 per cent and 19 per cent.

Chart 2: Return on capital (ROE) in the period of 2019-21


Source: Nhịp Cầu Đầu Tư Magazine

The top eight banks saw the average ROE of 22 per cent, higher than the industry average of 17 per cent, in which, VIB led the industry with an average ROE of 29 per cent in the period of 2019-21.

According to analysts, banks have been making sufficient investment in human resource, technology and operating platforms. They cited Vietcombank and VIB as a good example. The two banks have been active in promoting digital platforms and building effective operating models and standardising the set of innovative products and services to better serve customers.

For VIB, the bank was also recorgnised as one of the top seven best listed banks in Việt Nam in 2022 by Forbes magazine, along with Vietcombank, ACB, MBB, Vietinbank, BIDV and TPBank.

The ranking decided by Forbes honoured listed firms for their outstanding business results in the industry, their leading positions in the market and their optimal returns for investors. In addition to pioneering quality, focusing on developing core products that have brought  sustainable profits, these banks have always maintained a sustainable growth momentum for many years.

Chart 3: The most effective listed banks in Việt Nam in 2022 according to Forbes Vietnam, Nhịp Cầu Đầu Tư magazines

In addition to high rankings offered by prestigious domestic and foreign organisations, some banks such as VIB, Vietcombank or ACB also received the highest ratings by the State Bank of Việt Nam annually. The state bank’s strict set of evaluation criteria in both qualitative and quantitative criteria under the CAMELS model comprised C (Capital: Equity), A (Assets: Asset Quality), M (Management: Operating Governance), E (Earnings: Business results), L (Liquidity), S (Sensitivity to market risk).

Banking experts described measurements and assessments by independent organisations and regulatory agencies as positive factors to help quality and transparent banks ensure their dynamic and sustainable business performance thus creating large, quality and reputable financial institutions that customers, regulators and investors can put their trust in for a long time. — VNS