Unlocking VPB’s Stock Potential: The CASA Advantage

VPBank’s Remarkable Growth Trajectory

In a context where lending interest rates remain low, net interest margin (NIM) is under pressure, and competition is intensifying, non-term deposits (CASA) are becoming a pivotal factor for banks to optimize their cost of funds (COF) and maintain business efficiency. Vietnam Prosperity Joint-Stock Commercial Bank (VPBank, HoSE: VPB) has recognized the importance of this and made significant strides in growing its CASA during the first half of 2025, even as many large banks experienced declines in this critical metric.

Specifically, VPBank’s CASA balance as of the end of Q2 2025 reached nearly VND 100,000 billion, a remarkable increase of almost 40% compared to the end of 2024. This achievement propelled the bank’s overall CASA ratio to 15.8%, demonstrating the effectiveness of VPBank’s implemented solutions.

At the recent Investor Conference, Mr. Phung Duy Khuong, Vice Chairman of the Board of Directors in charge of the Southern Region and Head of the Retail Banking Division, in charge of managing the Debt Collection and Handling Division, attributed this success to the Super Profit product, which boasts leading market features. He highlighted that this product alone contributed an additional VND 10,000 billion to CASA growth in the first six months of the year.

“We expect Super Profit to drive CASA growth of approximately VND 20,000 billion in the second half of the year, doubling the first half’s achievement,” emphasized Mr. Khuong.

Another significant catalyst for VPBank’s CASA growth in the first half was the VPBank K-Star Spark in Vietnam mega-concert, headlined by music legend G-Dragon and featuring an array of domestic and international stars. This event not only enhanced VPBank’s brand awareness but also positioned the bank as a lifestyle enabler for its customers. The concert attracted over 40,000 attendees and generated more than 128 million impressions and 30 million interactions across social media platforms.

The event’s impact extended beyond brand exposure, as it significantly boosted the bank’s business: new credit card openings increased by 45%, card spending surged by over 51%, nearly 30,000 Super Profit accounts were opened, and payment account balances swelled by more than VND 4,000 billion.

Additionally, VPBank has been consistently investing in and developing innovative payment solutions, becoming the first bank in the Asia-Pacific region to introduce “VPBank Pay by Account,” a global payment solution integrated directly into mobile phones. The bank has also introduced a range of initiatives, including QR codes, attractive account numbers, and dedicated solutions for household businesses.

The robust CASA growth in the first half, coupled with a strategy to diversify medium and long-term capital sources from abroad, notably the syndicated loan of USD 1.56 billion from leading financial institutions, has enabled VPBank to optimize its COF. These factors, combined with strong credit growth, propelled the bank’s consolidated profit in the first half of the year to over VND 11,200 billion, representing a 30% increase and achieving 44% of the full-year plan.

Stock Price Soars to Historic Highs, Market Capitalization Exceeds VND 234,000 Billion

VPBank’s operational efficiency and financial breakthrough in the first half of 2025 are evident not only in its financial figures but also in its stock market performance. The bank’s share price, VPB, has been on a remarkable upward trajectory since the middle of Q2, recently hitting successive historic highs and becoming one of the crucial drivers pushing the VN-Index to new heights.

As of the close on August 11, VPB reached a new record of VND 29,600 per share, corresponding to a market capitalization of over VND 234,000 billion, ranking fifth in the banking industry. Compared to its low during the tax-related sell-off in early April, VPB has skyrocketed by nearly 80%, making it one of the best-performing bank stocks.

VPB stock has been breaking records since the end of July 2025. (Source: TradingView)

VPB’s trading volume has also been surging recently. In mid-May, following the announcement of the VPBank K-Star Spark in Vietnam mega-concert, VPB witnessed a “purple limit-up” session with the highest matched volume in history, reaching nearly 96 million shares. From the beginning of July until now, amid the strong growth of the overall market, VPBank’s average matched volume has reached nearly 49 million units, more than double the average of the first two quarters (21.1 million units).

The recent rally in VPB stock prices has been significantly influenced by strong foreign capital inflows. According to statistics, from the beginning of July to the middle of August, foreign investors net bought nearly 134 million VPB shares, valued at nearly VND 3,100 billion.

The sharp rise in VPB stock prices reflects the positive expectations of analysts, as many securities companies simultaneously raised their outlook due to the bank’s improved financial foundation and significant potential to attract foreign capital.

In a recent update, SSI Securities Corporation noted that VPBank’s Q2 profit exceeded expectations, with core indicators supported by robust credit growth in VPBank, VPBankS, and FE CREDIT, as well as improved asset quality and well-controlled cost pressures.

BSC Securities highly praised VPBank’s profit recovery trend, with a return on equity (ROE) that has increased consecutively for six quarters. The analysts also emphasized the bank’s competitive advantage in the eyes of international investors, given the significant foreign ownership room (approximately 4.5%) and the potential for increasing the foreign ownership limit to 49%, especially with the upcoming upgrade timeline in mind. In the short term, this could be a crucial catalyst for VPB’s acceleration, particularly as many peer banks have reached their foreign ownership limits.