Positive business results in recent years have helped the brand value of Vietnamese banks continuously improve in international rankings. According to Brand Finance's ranking of the 500 most valuable global banking brands in 2023, recently announced, Vietnam ranks first in the ASEAN region in terms of the number of banks in the TOP 500 with 12 banks on the list.
This is a ranking published annually based on the assessment of the business performance of banks in the previous year, in terms of size, growth rate, business efficiency, etc.
In recent years, when the global economy was affected by the Covid-19, Vietnam has been one of the countries that still maintains positive growth. In 2022, Vietnamese banks still continued to maintain their growth momentum in the face of market challenges, most of which have positive profit growth and guaranteed operational safety.
According to statistics, in 2022, many banks recorded a profit growth of over 30% compared to the results in 2021 and exceeded the set plan. In particular, banks that have advantages in retail or rapidly expand into this segment have impressive growth. This is one of the important motivations to enhance the brand value of Vietnamese banks.
VIB, with the leading retail proportion of the market leading with nearly 90% of its credit portfolio in recent years, achieved pre-tax profit in 2022 at VND 10,581 billion, up 32% compared to the previous year. VIB's return on equity (ROE) is leading the industry with over 30% for 3 consecutive years.
ACB with the proportion of retail loans (individual customers and small and medium enterprises) reaching 93%, recorded positive business results in 2022. Profit before tax of this bank reached VND 17,021 billion, which increased by 50% compared to 2021 and exceeded the whole year plan. Profitability ratios are among the highest in the industry, in which ROE is 26.49% and ROA is 2.41%.
Another factor is the strong growth in the field of digital transformation. In 2021 - 2022, many banks continued to have breakthroughs in technology application to increase user satisfaction. Accordingly, the number of customers and transaction value (especially online channels) increased very strongly, even the growth rate in a few years was equal to the previous decades combined.
In 2022, Techcombank attracted 1.2 million new customers. The main growth drivers all come from strong investment in digitization, changing the user experience on the digital banking App for individuals and businesses.
VIB attracted more than 1 million customers in 2022, up 200% compared to 2021 and bringing the total number of customers to over 4 million. Currently, the transaction rate on digital channels at VIB is over 93%, among the top in the industry. Within 5 years, the number of digital banking transactions increased by 26 times. 2022 marks the bank's new breakthroughs on digital banking application MyVIB 2.0 such as AI Voice (voice transactions), AR (augmented reality technology), etc.
In addition to continuing to promote digital transformation, banks are also focusing on pursuing the retail segment. This is also considered the key to helping banks cope with shocks in the corporate bond market, maintain a stable NIM and well control asset quality. Experts say that banks that are strong in retail and leading in digitization will be more favorable in maintaining growth in the coming years.
VIB, one of the two banks with the highest retail ratio in Vietnam, has set a target of pre-tax profit in 2023 to increase by 15%, to VND 12,200 billion. In the 10-year strategic orientation 2017-2026, VIB positions itself as the leading retail bank in Vietnam in terms of quality and scale, targeting 10 million customers by 2026. In the first 6 years of this roadmap, VIB has achieved compound profit growth of 57%/year.
Similarly, ACB with the advantage of retail said that in 2023, it is expected that pre-tax profit will exceed VND 20,000 billion. The retail and SME customer segments continue to be the bank's long-term business strategy. The bank also affirmed that digital banking activities will be further enhanced, such as building automated marketing capacity so that sales messages are personalized to the right audience, in the most appropriate way.
Techcombank said that after a strong restructuring of credit to retail in 2022, in 2023, it will continue to promote the expansion of individual customers and small and medium-sized enterprise customers.
Observers said that, with the optimistic prospects at many banks, it is forecasted that in the next evaluation period, Vietnamese banks will continue to have strong growth in rankings in the list of 500 banks with the most valuable brand.
Compiled by VietnamCredit