Phạm Thị Nhung, VPBank’s Deputy CEO (centre) received the award of top 100 most valuable brands in Việt Nam 2023. Photo courtesy of VPBank

HÀ NỘI Within a year, VPBank’s value is almost 1.5 times as high as the previous year, valued at nearly US$1.3 billion and ranking 173rd in the world’s 500 most valuable banking brands.

In the event announcing the 100 most valuable brands in Việt Nam 2023 on Tuesday, 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’s brand, according to Brand Finance, 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 valued by the consultancy at $56 million.

VPBank's headquarter in Hà Nội. VPBank now jumps to the 173rd rank among 500 global banks with the most valuable brand, improving 32 ranks in comparison to 2022. Photo courtesy of VPBank

Thanks to the swift growth in brand value, VPBank now jumps to 173rd rank 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 in this report is improved.

In addition, 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 Việt Nam.

“Brand value is 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.

In line with Haigh, it’s 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 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 small and medium enterprises (SMEs), combining with a unique business model to bring prosperity values to customers and Vietnamese towards its ultimate goal: Prospering Việt Nam,” said Phạm Thị Nhung, VPBank’s Deputy CEO.

Last year, credibility and brand strength lent themselves for 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 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, equivalent to one third of Việt Nam’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 and Effectiveness in a forward-looking move to achieve its goals. VNS