Hanoi (VNA) - In the first half of 2025, Vietnam’s commercial banks reported profits that surpassed expectations, reflecting a strong recovery in the domestic financial sector and the broader economy.
In the period, Vietnam’s economy accelerated, with leading banks and enterprises posting higher-than-forecast profits, signalling a stabilising macroeconomic environment despite global uncertainty.
Private banks show growth in volume, quality
Vietnam’s GDP grew 7.52% in the first six months - the highest in 15 years, driven by domestic consumption, public investment, and institutional reforms. New trade agreements with the US and anticipated FTSE Russell market upgrades boosted investor confidence, fuelling a 28% rebound in the VN-Index since April.
Credit growth reached 9.9%, mainly through corporate lending, while retail credit recovered more slowly, indicating cautious consumer demand.
Private joint-stock banks reported strong profit growth in both scale and quality. Techcombank recorded a historic Q2 pre-tax profit of 7.9 trillion VND (301,35 million USD), up 0.92% year-on-year, with a six-month total of 15.1 trillion VND. VPBank posted 11.2 trillion VND in pre-tax profit for H1 2025, a 30% increase, completing 44% of its annual profit target and nearing its asset goal of 1.13 quadrillion VND.
LPBank earned 6.16 trillion VND in six months, reaching 41.5% of its yearly target, maintaining a 1.74% non-performing loan ratio and a diversified revenue model. TPBank reported 4.1 trillion VND in profit, up 12%, achieving 93% of its credit plan, focusing on retail and risk-controlled real estate sectors.
National Citizen Bank (NCB) profits surged from 6 billion VND to 462 billion VND, a 77-fold increase, thanks to a digital banking model aligned with Government restructuring efforts. Other banks like PGBank and Nam A Bank also posted robust gains, with PGBank’s Q2 profit up nearly 100% year-on-year and Nam A Bank showing 14% profit growth alongside strong asset quality.
Meanwhile, State-owned banks have not yet released full financials. Agribank reported its best results in four years, with outstanding loans growing 7.6% to over 1.85 million billion VND. VietinBank saw estimated credit growth of 10%, with mobilised capital up 9%. Vietcombank’s credit balance increased 11.1% by June 2025, or 7.5% excluding internal loans.
While data is partial, securities firms agree on strong profit improvement in the first half of 2025. VPBank Securities estimates after-tax profits for 11 major banks at 46.74 trillion VND in the second quarter, up 18.8% year-on-year, with a full-year forecast of 239.1 trillion VND, nearly 20% above 2024.
Credit growth is expected to reach 16% for 2025, driven by real estate and economic momentum.
Vo Hoang Hai, Nam A Bank’s Deputy CEO noted banks are lowering net interest margins to maintain low lending rates, intensifying competition for quality customers.
As credit expands, banks are boosting non-interest income through insurance, digital payments, and consulting, fostering sustainable growth.
Despite strong results in the first half of the year, experts urge caution for the full year. Assoc. Prof. Nguyen Huu Huan warned that credit costs may remain high, requiring increased provisioning. Maybank Investment Bank’s Phan Dung Khanh anticipates positive overall performance but expects clear differentiation, with banks that adapt quickly outperforming others.
Vietnam’s banking sector showed impressive growth in the first half, a crucial economic pillar. However, sustaining momentum will depend on credit quality, risk control, and adaptability amid ongoing global uncertainties—tests that will define each bank’s resilience moving forward./.
