More than a decade of ‘building the foundation’ for BVBank’s new growth cycle

BVBank’s predecessor was Gia Dinh Commercial Joint Stock Bank, established in 1992 with a charter capital of 5 billion VND. In 2011, the bank changed its name to Viet Capital Commercial Joint Stock Bank (Viet Capital Bank), with total capital increased to 2,000 billion VND. Compared to competitors in the same period, BVBank at that time had a relatively modest starting point: thin network, limited market share and not really outstanding competitiveness.

In the context of many credit institutions choosing to expand quickly or through M&A deals, BVBank chose its own path: focusing on restructuring, investing in technology, standardizing management and gradually repositioning operations according to the retail banking model.

Hinge landmark

Faced with the problem of brand positioning, Mr. Le Anh Tai, Chairman of the Board of Directors of BVBank, said that the bank chose to seek development space in the following segments: individual customers, small and medium enterprises (SMEs) and business households. These are customer groups that still have a lot of room for growth but require flexible service capabilities, fast processing speed and financial solutions designed according to their individual needs.

2015 became a pivotal milestone, when BVBank completely shifted its strategy to a retail banking model. Instead of packaging products in the traditional way, BVBank shifted to a “customer-centric” philosophy, tailoring financial solutions based on the actual needs of each target group, especially focusing on processing speed, convenience and high personalization.

Build a foundation with technology and management

Bank leaders said digital transformation is the foundation in the journey to build a modern retail bank. At BVBank, digitalization is not simply bringing services to cyberspace but is a revolution, restructuring the entire operating process, from operations, product development to customer experience journey design.

On that foundation, BVBank chose to develop digital solutions for each segment instead of providing mass products. For small and medium enterprises (SMEs), the bank focuses on cash flow management, payment and credit services. For business households, BVBank develops solutions that integrate sales management, electronic invoices, payments and finance on the same platform, meeting the needs of digitizing business activities and new requirements on tax management.

Along with improving customer experience, BVBank continues to perfect its management platform to ensure growth along with quality. According to bank leaders, technology helps expand the scale of operations, while management is the foundation for sustainable growth. Therefore, after completing Basel II, BVBank continued to invest in data management systems, risk management and optimization of operating processes, preparing for higher standards in the future.

These investments gradually pay off. By 2025, 89% of BVBank’s new customers will come from digital channels. The proportion of online transactions continues to increase, helping the bank expand its customer base and optimize operating costs without depending on expanding the physical branch network.

According to Mr. Le Anh Tai, persevering with the customer-centric strategy, technology as the driving force and management as the foundation, has helped the bank create growth in the short term, while creating a competitive advantage for the coming period.

Sweet fruit after a decade

After many years of preparation, the period 2020-2025 marks a clear transition for BVBank when business targets simultaneously improve.

In 2025, pre-tax profit will reach 522 billion VND, an increase of 34% compared to the previous year and exceeding the plan. This is also the second consecutive year the bank has maintained profit growth of over 30%, while still proactively setting up provisions to strengthen asset quality. Total assets exceeded 133,000 billion VND for the first time, an increase of nearly 29% compared to the end of 2024. Outstanding credit debt reached more than 78,200 billion VND, while customer mobilization increased by 31%, reaching nearly 98,100 billion VND.

Including the period 2020-2025, BVBank’s total assets increased by nearly 118%, credit balance increased by about 96%. Total operating income will reach nearly VND 2,910 billion by the end of 2025, more than twice higher than in 2020. Pre-tax profit also increased from VND 201 billion to VND 522 billion, the highest level in the bank’s operating history.

According to BVBank leaders, these results reflect the effectiveness of the strategy pursued for many years. “Looking back at the transformation journey, the best decision of BVBank’s board of directors was not to pursue scale growth at all costs, but to persistently restructure operations, invest in technology platforms and risk management. Even though we had to accept slow growth in the short term, this strategy has created a solid foundation for sustainable development and improved competitiveness,” Mr. Le Anh Tai acknowledged.

Towards a new growth cycle

After a period of focusing on building the foundation, BVBank said it is entering a new development cycle with a focus on effectively exploiting investments made over the years.

In the coming time, the bank will continue to pursue the development orientation of retail banking, focusing on individual customers, small and medium enterprises (SMEs) and business households. Instead of just providing individual financial products, BVBank aims to build a service ecosystem connecting with partners in many fields such as consumption, retail, resorts, cuisine and fintech to expand customer experience.

Digital transformation is also entering a new phase, when big data and artificial intelligence (AI) are expected to play a larger role in product personalization, improving customer experience and strengthening risk management capacity. According to bank leaders, this will be the foundation for BVBank to improve competitiveness in the context of the banking industry shifting from a race for scale to competition with service quality and technology.

In parallel with the growth orientation, BVBank aims to continue to standardize management according to international practices, increase charter capital to nearly 10,000 billion VND, and transfer BVB stock listing to HoSE (expected July 21). Previously, HoSE approved listing all 640.82 million shares of this bank. Recently, the bank was also rated B+ by Fitch Ratings with a stable outlook.

According to bank leaders, the move to list on HoSE not only aims to expand access to investors but also marks a transition to a new stage of development, where the focus is no longer on building the foundation but on promoting the effectiveness of the foundations that have been accumulated for more than a decade.

Mr. Le Anh Tai said that more than a decade of pursuing retail strategy is a comprehensive transformation process from business model, technology to customer service methods. “The decision to pursue this strategy helps BVBank gradually transform from a small-scale bank into a modern retail bank, developing based on digital transformation, risk management and sustainable growth,” BVBank leaders emphasized.