Return to Profitability
At a recent investor meeting to discuss VPBank’s second-quarter and six-month business results, Ms. Luu Thi Thao, Executive Vice President and CEO of VPBank, shared that despite being a late entrant into the mandatory transfer scheme, VPBank is making rapid progress.
After assuming control of GPBank in mid-January as part of the mandatory transfer scheme, VPBank immediately embarked on a comprehensive restructuring process.
“While laying the foundation, VPBank simultaneously assigned business plans to the GPBank team. The 2025 plan was crafted modestly, but we are pleased to see initial positive results,” said Ms. Thao.
Over a five-month period, GPBank achieved a 20% growth in deposits and a 3% organic growth in credit. Notably, June marked the first month GPBank recorded a profit, signifying a pivotal turning point after years of losses. VPBank has set a conservative pre-tax profit target of VND 500 billion for GPBank this year.
GPBank returns to profitability.
“The GPBank restructuring plan aims beyond financial goals. VPBank is committed to two objectives: developing specific action programs to deliver sustainable financial results and gradually offsetting the bank’s accumulated losses, and the larger goal of transforming GPBank into a modern and reputable bank in the market, with a distinct and clear mission,” emphasized Ms. Thao.
The bank’s representative revealed that in the third quarter of this year, GPBank will announce its development strategy alongside its new brand identity and image to the market.
According to the Law on Credit Institutions, a mandatory transfer is one of the options for restructuring credit institutions under special control. The transfer aims to restore normal operations, address weaknesses, and gradually transform GPBank into a financially healthy bank, ensuring continuous operation.
VPBank’s representative confirmed that post-transfer, GPBank will continue operating as a one-member limited liability bank, wholly owned by VPBank. The legitimate interests of depositors and the rights and obligations of customers at GPBank remain guaranteed per agreements and regulations. GPBank is an independent legal entity and does not consolidate its financial statements with VPBank’s consolidated financial statements.
Name Change and Stem Losses
At an investor conference held online on August 5, MB’s leadership shared insights into the status of MBV following the mandatory transfer.
In 2024, MB acquired OceanBank through a mandatory transfer and renamed it MBV. According to Mr. Vu Thanh Trung, MB’s Vice Chairman and MBV’s Chairman, MBV’s business operations are closely aligned with the set plans and goals.
“After more than a decade of consecutive losses, MBV is certain to stem the losses this year,” asserted Mr. Trung.
While acknowledging the challenges in MBV’s restructuring process, the bank’s representative assured that MBV’s impact remains small relative to MB’s overall scale.
According to Mr. Luu Trung Thai, MB’s Chairman, MB’s credit growth for this year is targeted at a minimum of 25%. For the 2026-2028 period, the bank has also been allocated the highest credit growth limit in the market, thanks to its role in restructuring MBV.
Addressing suggestions to abolish credit growth limits, Mr. Thai opined, “In the context of an imperfect financial market, controlling credit growth limits is an objective necessity. For now, we cannot relax our guard. There was a seven-year period when we didn’t control these limits, and the consequences included many adverse effects, including the case of OceanBank. Therefore, abolishing credit growth limits is a long-term goal that requires appropriate conditions and a well-thought-out roadmap.”
“Undervalued Bank Stocks with Positive Growth Prospects Attract Cash Flow”
“In the past 1-3 months, a select few bank stocks have witnessed an impressive surge, with gains of several dozen percentage points. These stocks share common traits: they boast low to medium price-to-book ratios compared to the industry average, demonstrate improved financial indicators, and possess unique catalysts that set them apart. These factors have likely contributed to their outstanding performance, catching the eye of discerning investors.”
The Consensus Among Banks: Maintaining Stable Interest Rates for Sustainable Growth
As of early 2025, banks have been actively implementing directives from the government and the State Bank to maintain stable interest rates. These efforts have been instrumental in promoting credit growth and providing much-needed support to businesses and individuals alike.
“MB Aims for a 10% Productivity Increase Across the Group, with MBV Expected to Turn Profitable by the End of 2025”
“At the investor conference on Wednesday, August 5, 2025, representatives from Military Commercial Joint Stock Bank (MB, HOSE: MBB) presented an overview of their financial performance for the first half of the year and outlined their growth strategy for the remaining months of 2025.”
“Banks Pledge to Keep Deposit Rates Steady and Cut Lending Costs: A Customer-Centric Move”
Let me know if you would like me to continue crafting compelling content or headlines for your project!
At the Conference on Deploying Solutions to Stabilize Deposit Interest Rates and Reduce Lending Rates, representatives from multiple banks pledged to reduce lending rates and shared insights into their practical experiences and proposals to more effectively support the economy.
What Fueled the Banking Stock Boom that Took VN-Index to New Heights?
As of August 5th, bank stocks surged for the second consecutive session, propelling the index to a record high of 1570 points. However, a closer look at the statistics reveals that the group’s profits are lagging compared to the broader market.
