Vientiane Commercial Bank (VCB) was established 14 years ago by overseas business entities with a vision of providing a safe and secure banking service for the people of Laos. The bank weathered the Asian financial crisis where other Laotian banks failed, and it has been able to improve shareholder return ever since. This has been achieved by robust and disciplined lending practices that have resulted in one of the lowest NPL ratios in the market. The group has diversified its revenue stream into new areas, such as trade finance and domestic and international remittances. It has also kept a diligent focus on cost management without compromising longer-term investment in the business, and it has concentrated on niche markets commensurate with capacity and knowledge of particular customer segments.
VCB realised that to reach the next level of development, more capital and greater expertise were needed. This presented the shareholders with an opportunity to support the future development of the bank, as well as the banking sector in Laos by securing a strategic partnership with ANZ. Until then, a major international bank presence was missing from the country’s financial sector.
Following the merger, ANZ VCB has been able to make significant advances, including a new technology platform of world-class standard, innovative new products and services, and an expanded branch network. The group has gained access to competitive finance for business and provided training and development opportunities for staff, as well as co-operating with the government authorities as they continue to reform the banking sector.
