Stable Scale Growth, Expanding Customer Base
In the context of weak domestic consumer demand, stagnant production and business activities, and a sluggish real estate market, the scale of mobilization and credit of VPBank continues to grow steadily, with mobilization from foreign sources and CASA from retail being the highlights of the year.
Mobilization includes valuable papers of the parent bank, which grew by an outstanding 37% compared to 2022, reaching VND 470.5 trillion, which is 13% above the industry’s average, ensuring the bank’s liquidity safety indicators. The individual customer segment of VPBank continues to lead the growth, contributing 62% of the bank’s total mobilization, reaching over VND 290 trillion.
In addition, non-term deposits (CASA) have become a bright spot in the bank’s mobilization activities, with a positive growth rate of 33% compared to the end of 2022, helping to increase the CASA ratio in the capital structure to 18%. The success of CASA highlights the effectiveness of the bank’s action programs and solutions to promote deposit growth through superior payment solutions and account services that meet the needs of customers.
In addition to domestic mobilization, in 2023, VPBank proactively diversified its long-term international funding sources to optimize capital costs and strengthen its balance sheet. The bank successfully signed a USD 300 million bilateral loan commitment (equivalent to VND 7,200 billion) with the U.S. International Development Finance Corporation (DFC) to support green credit in Vietnam.
Credit growth at the parent bank in 2023 reached over VND 527 trillion, a 32% increase compared to 2022, providing capital for various segments and industries in the economy. In particular, credit balance in the strategic segment of individual customers reached over VND 245 trillion, an increase of over 25% compared to the end of 2022, with the driving force of business and credit card lending products. Lending in other strategic segments such as SMEs also recorded a 7% increase compared to 2022, despite the slower capital absorption by the production and business sector throughout the year.
The bank’s liquidity safety ratios, such as loan-to-deposit ratio (LDR), reached 80%, and the short-term capital-to-medium-/long-term loan ratio reached 25.3%, both at higher levels than the regulations of the State Bank of Vietnam.
Thanks to segment coverage strategy and continuous digitalization efforts, the customer base of VPBank’s ecosystem, as of the end of 2023, has reached over 30 million people. In particular, in the individual customer segment, VPBank recorded an additional 4 million customers compared to the end of 2022, thanks to continuous promotion of comprehensive financial solutions and personalized approaches for each customer group, focusing on attracting customers on digital platforms.
Another positive point in 2023 came from VPBank Securities and OPES. The two companies, operating in the securities and insurance services, respectively, contributed over VND 1,400 billion in pre-tax profit after more than a year of merger into VPBank. This result has brought the total profit of VPBank, VPBank Securities, and OPES in the past year to nearly VND 15,000 billion.
Consumer finance company FE CREDIT, after a strong restructuring process from the second quarter, also recorded positive progress thanks to the transition of management models and a more cautious lending strategy, while continuing to improve risk management and debt recovery.
Consolidating the Foundation, Paving the Way for Sustainable Growth
One of VPBank’s remarkable milestones in 2023 was the private placement of a 15% stake to Sumitomo Mitsui Banking Corporation (Japan) at a total value of USD 1.5 billion, helping increase the total consolidated equity of the bank to nearly VND 140 trillion at the end of 2023, a 35% increase compared to 2022.
The strong and large capital base, ranking second in the system in terms of equity scale, has accelerated the bank’s capital adequacy ratio to over 17%, the highest among banks in Vietnam. In 2023, VPBank fulfilled its commitment to pay over VND 8,000 billion in cash dividends to shareholders, satisfying the expectations and desires of many shareholders regarding the bank’s annual profit distribution plan.
With a strong financial capacity and strategic cooperation with SMBC, VPBank has proactively expanded into new business areas – the FDI customer segment in 2023, in order to seize market opportunities to maximize revenue and profit support for traditional segments.
The attraction of more than 250 FDI corporate customers during the year was a highlight of the FDI portfolio’s activities, with the introduction of the Supply Chain Financing product to the market, providing capital to both suppliers and distributors in the supply chain, gradually conquering the potential market due to the strong FDI wave into Vietnam.
In the third 5-year development strategy (2022-2026), aiming for sustainable development in the medium and long term, VPBank has taken the lead in building an ESG (Environment – Social – Governance) risk management framework, applied across the entire bank, in accordance with international practices.
The bank has been recognized by reputable domestic and international organizations for its efforts to achieve sustainable development goals. Notably, for the fifth consecutive time, VPBank has been listed among the top 20 companies whose shares are included in the Sustainability Development Index (VNSI) of HOSE. The bank also received the “Leading Bank in Climate Finance in East Asia and the Pacific” award from the International Finance Corporation (IFC) and the “Best Bank in Climate Risk Management” award from Asia Risk magazine.