Expanding the Ecosystem: VPBank Gears Up for Accelerated Growth

Supersonic Growth Target

At the 2025 Annual General Meeting of Shareholders (AGM), CEO Nguyen Duc Vinh emphasized that growth, especially in scale, is the priority for 2025 and the foundation for VPBank to join the ranks of the largest banks in the market.

Specifically, VPBank aims for approximately 25% credit growth, over 30% increase in capital mobilization, and a pre-tax profit target of VND 25,270 billion (nearly USD 1 billion). With these foundations, VPBank is poised to achieve growth rates of 30-35% in the subsequent phases of 2026-2029.

According to VPBank’s CEO, the bank is confident in attaining these goals due to its substantial investments in technology, organizational refinement, implementation of a corporate governance model, expansion of customer segment coverage, and the lessons learned from past experiences.

Additionally, during the period of 2025–2030, VPBank will be guided by a new Board of Directors and Supervisory Board – leaders who will play a pivotal role in strategic direction and enhanced governance capabilities, enabling the bank to materialize its strategic objectives.

Synergies within the Ecosystem Fuel Growth

To realize its ambitious growth target over the next five years, one of VPBank’s key focuses is to continue strengthening and perfecting its comprehensive and unique financial ecosystem, aiming to fully serve the needs of over 30 million customers. The collaboration and synergy among the group entities are vital, enhancing operational efficiency and expanding product and service offerings to a wider range of clients.

In 2024, FE CREDIT, VPBankS, and OPES all recorded positive business results, contributing to the overall growth. Along with its subsidiaries, entities like Cake by VPBank, a digital bank, and GPBank, have solidified their positions within the ecosystem, becoming pivotal drivers for VPBank’s new growth phase.

In 2024, VPBank’s ecosystem entities achieved positive business results

This year, according to Mr. Ngo Chi Dung, Chairman of the Board of Directors, VPBank has dispatched key personnel to GPBank and collaborated with McKinsey to formulate a development strategy for this bank. “Before the transfer, GPBank was losing more than VND 1,000 billion annually. This year, despite having only eight months, we are confident that GPBank will make a minimum profit of VND 500 billion,” affirmed the Chairman of VPBank’s Board of Directors to the shareholders.

Moreover, the mandatory transfer of GPBank also brings strategic advantages, including an increased foreign ownership ratio. VPBank can raise its foreign room from 30% to a maximum of 49%, thereby attracting additional capital for the next growth phase, as asserted by Mr. Dung.

Meanwhile, Cake by VPBank, the digital bank, continues to play a pivotal “sandbox” role. As emphasized by Vice Chairman of the Board of Directors Bui Hai Quan, Cake’s development demonstrates the leadership’s commitment to a digital transformation strategy, proactively creating products, and serving customers who are not well served by traditional banks.

“We will remain steadfast in our digital and AI strategy at Cake and subsequently apply those learnings back to VPBank,” said Mr. Quan. Despite operating with a lean team of just over 100 people, Cake has mobilized nearly VND 11,000 billion, disbursed loans to approximately 5 million customers, and is a pioneer in leveraging technology and AI in banking.

Adding Two Strategic Pieces

VPBank is not resting on its laurels; it intends to expand its ecosystem into two new areas: life insurance and fund management.

At the 2025 Annual General Meeting of Shareholders, the shareholders approved the proposal to contribute capital to establish a life insurance company with an expected charter capital of VND 2,000 billion and to contribute capital, receive transfers, or purchase shares to make a fund management company a subsidiary of VPBank.

Sharing insights on this plan, Vice Chairman of the Board of Directors Bui Hai Quan stated that the VPBank ecosystem has evolved beyond a single bank into a comprehensive financial group, encompassing a consumer finance company (FE CREDIT), a securities company (VPBankS), and a non-life insurance company (OPES). The two missing pieces that the bank aims to add are life insurance and a fund management company.

From a strategic perspective, Vice Chairman Quan considers life insurance an indispensable component in the financial group model that VPBank is forging. Currently, VPBank’s role as a distribution channel makes it passive regarding product development and unable to proactively serve its customers. Establishing a life insurance company will grant VPBank greater autonomy and enable it to take better care of its customers.

Additionally, Mr. Quan highlighted that the VPBank ecosystem has accumulated extensive expertise, particularly in technology application, digitalization, and AI, through the digital insurance company OPES. “VPBank will establish a completely new insurance company, managed efficiently and leveraging AI from the outset, bringing value to the company and the group,” affirmed the VPBank leader.

As VPBank relentlessly expands its financial ecosystem, it also remains committed to its retail segment coverage strategy. The bank has recently unveiled VPBank Private, a new segment dedicated to providing exclusive financial services to elite customers, with a mission to accompany and foster sustainable, enduring prosperity.

This strategic move underscores VPBank’s unwavering commitment to delivering superior, personalized financial solutions, meticulously tailored to meet the diverse profiles of its clientele.

The introduction of VPBank Private reinforces the bank’s business philosophy: relentlessly elevating the customer experience, creating exceptional value, and journeying alongside customers as they ascend to new heights of excellence in their lives.