VPBank jumps to 173rd rank among 500 global banks with the most valuable brand. Photo courtesy of the bank

HÀ NỘI In just one year, VPBank’s brand value has surged nearly 1.5 times, reaching almost US$1.3 billion and securing the 173rd spot in the global ranking of the 500 most valuable banking brands.

At the event unveiling Vietnam’s 100 most valuable brands in 2023 on Tuesday, Brand Finance, the world’s leading brand valuation consultancy, recognized VPBank as one of the top four organizations with the highest growth in brand value. According to Brand Finance, VPBank's brand is now valued at US$1.3 billion. Over the past seven years, the bank’s brand value has grown 23-fold, from just US$56 million when it was first assessed by the consultancy.

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