--- title: "Reading Bank Financial Statements: NIM, CASA, and Credit Quality" description: A guide to analyzing Vietnamese bank financial statements through NIM, CASA, NPL ratios, loan loss coverage, and CAR with verified Q2 2026 disclosures. url: https://ginity.vn/en/blog/reading-bank-financial-statements canonical: https://ginity.vn/en/blog/reading-bank-financial-statements markdown: https://ginity.vn/en/blog/reading-bank-financial-statements.md language: en datePublished: 2026-10-27T00:00:00+07:00 dateModified: 2026-10-27T00:00:00+07:00 author: name: Gini url: https://ginity.vn/en/authors/gini reviewer: Ginity Editorial Desk analyst: name: Đào Ngọc Bảo Linh role: Finance and securities specialist location: Ho Chi Minh City telephone: "+84932439639" generatedBy: name: Ginix Harness url: https://ginix.vn desk: id: learn name: Learn investing url: https://ginity.vn/en/learn tickers: - TCB - VCB sources: - name: Government of Vietnam url: https://vanban.chinhphu.vn/?pageid=27160&docid=210625 title: Circular No. 31/2024/TT-NHNN on asset classification and provisioning - name: Government of Vietnam url: https://vanban.chinhphu.vn/?pageid=27160&docid=210640 title: Decree No. 86/2024/ND-CP on loan loss provisioning rates - name: State Bank of Vietnam url: https://vanban.chinhphu.vn/?pageid=27160&docid=214640 title: Circular No. 14/2025/TT-NHNN on capital adequacy ratios - name: Vietnam Government Portal url: https://baochinhphu.vn/tin-dung-tang-truong-741-tao-du-dia-cho-tang-truong-kinh-te-102260702120737467.htm title: System credit growth supports economic expansion in first half of 2026 - name: Techcombank url: https://techcombank.com/en/investors/financial-information/highlights title: Financial Highlights 2Q2026 - name: Vietcombank url: https://www.vietcombank.com.vn/en/Trang-thong-tin-dien-tu/Articles/2026/08/17/20260812_TSC_CLTKHDQT_CongboKQKDquyII title: Quarter 2/2026 business results disclosure publisher: Ginity attribution: 'Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content.' disclaimer: "Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources." usageTerms: https://ginity.vn/ai.txt --- # Reading Bank Financial Statements: NIM, CASA, and Credit Quality > A guide to analyzing Vietnamese bank financial statements through NIM, CASA, NPL ratios, loan loss coverage, and CAR with verified Q2 2026 disclosures. Gini · Learn investing · 2026-10-27 · https://ginity.vn/en/blog/reading-bank-financial-statements _Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_ ## Key takeaways - NIM reflects core profitability on earning assets, reaching 3.6% for Techcombank in Q2 2026. - A CASA ratio of 38.3% lowers funding costs and supports core interest margins. - The NPL ratio of 1.15% paired with a 125.5% loan loss coverage ratio provides credit buffers under Circular 31/2024/TT-NHNN and Decree 86/2024/ND-CP. - Capital adequacy CAR reached 15.0%, well above the 8% statutory minimum set by Circular 14/2025/TT-NHNN. ## Inverted balance sheet mechanics in commercial banking Financial statements of commercial banks present an inverted structure compared to standard non-financial corporations. For typical manufacturing companies, debts owed to lenders or suppliers sit on the liabilities side, while machinery and inventories represent physical assets. At commercial banks, customer deposits form the primary liability because the institution must return those funds upon demand or maturity. Conversely, customer loans represent earning assets because they generate contractual interest income over future periods. According to disclosures in the [Techcombank Financial Highlights](https://techcombank.com/en/investors/financial-information/highlights), as of June 30, 2026, total assets reached 1,273,077 billion VND. Customer deposits amounted to 697,413 billion VND, representing the primary funding source for the balance sheet. Customer loans recorded year-to-date credit growth of 11.6% relative to the end of 2025. Evaluating bank financial health requires examining earning asset yields, liability costs, and risk provisions. Liquidity structures in Vietnam remain under statutory supervision to protect financial system stability. According to official credit disclosures published by the [Government News Portal](https://baochinhphu.vn/tin-dung-tang-truong-741-tao-du-dia-cho-tang-truong-kinh-te-102260702120737467.htm), system-wide credit growth reached 7.41% as of June 26, 2026 relative to the end of 2025. According to data published by [Techcombank](https://techcombank.com/en/investors/financial-information/highlights), the bank maintained a loan-to-deposit ratio (LDR) of 80.1% and a short-term funding ratio for medium-to-long-term loans of 27.8% as of June 30, 2026, complying with regulatory liquidity thresholds. ## Measuring profitability and funding costs through NIM and CASA Net Interest Margin (NIM) measures the spread between yields generated by interest-earning assets and the financing costs paid on interest-bearing liabilities: $$NIM = \frac{\text{Net Interest Income}}{\text{Average Earning Assets}}$$ Earning assets consist of customer loans, interbank placements, and investment securities. According to financial figures published by [Techcombank](https://techcombank.com/en/investors/financial-information/highlights), net interest income for the first six months of 2026 reached 20,285 billion VND, with second-quarter net interest income contributing 10,763 billion VND. The trailing twelve-month (LTM) NIM stood at 3.6%. The Current Account Savings Account (CASA) ratio measures non-term demand deposits and margin deposits as a percentage of total customer deposits. Demand deposits carry minimal interest expense, helping commercial lenders suppress their overall cost of funds (COF). According to figures published in [Techcombank Highlights](https://techcombank.com/en/investors/financial-information/highlights), the CASA ratio stood at 38.3% as of June 30, 2026, while the quarterly cost of funds rose from 4.2% in Q1 2026 to 4.8% in Q2 2026. According to disclosures published by [Vietcombank](https://www.vietcombank.com.vn/en/Trang-thong-tin-dien-tu/Articles/2026/08/17/20260812_TSC_CLTKHDQT_CongboKQKDquyII), its CASA ratio was maintained near 32% as of June 30, 2026, across a total deposit base of 1.73 million billion VND. ## Loan classification under Circular 31/2024/TT-NHNN and provisioning under Decree 86/2024/ND-CP Credit risk in the loan book constitutes the primary operational hazard for banking institutions. Effective July 1, 2024, the central bank enacted [Circular 31/2024/TT-NHNN](https://vanban.chinhphu.vn/?pageid=27160&docid=210625) governing asset classification across five loan groups. Specific and general provisioning rates are established under [Decree 86/2024/ND-CP](https://vanban.chinhphu.vn/?pageid=27160&docid=210640) issued by the Government: | Debt Group | Classification | Standard Delinquency Threshold | Specific Provision Rate | | :--- | :--- | :--- | :--- | | Group 1 | Standard Debt | Current or past due under 10 days | 0% | | Group 2 | Special Mention Debt | Past due from 10 days to 90 days | 5% | | Group 3 | Substandard Debt | Past due from 91 days to 180 days | 20% | | Group 4 | Doubtful Debt | Past due from 181 days to 360 days | 50% | | Group 5 | Loss Debt | Past due over 360 days | 100% | Source: Classification rules under Circular 31/2024/TT-NHNN and provisioning rates under Decree 86/2024/ND-CP. Specific provisions apply to the net exposure remaining after deducting qualifying collateral values discounted under regulatory rules. According to Decree 86/2024/ND-CP, commercial banks must establish a general provision equal to 0.75% of total outstanding loans across Group 1 through Group 4. Group 5 loans are exempt from general provisioning because they are fully reserved under specific provision rules. ## Asset quality assessment: NPL ratio and loan loss reserve coverage Non-performing loans (NPL) under State Bank of Vietnam (SBV) rules include all balances assigned to Group 3, Group 4, and Group 5: $$NPL = \frac{\text{Group 3 + Group 4 + Group 5 Loans}}{\text{Total Customer Loans}} \times 100\%$$ The Loan Loss Reserve (LLR) coverage ratio evaluates accumulated credit provisions against outstanding non-performing loans: $$LLR = \frac{\text{Total Loan Loss Reserves}}{\text{Group 3 + Group 4 + Group 5 Loans}} \times 100\%$$ An LLR ratio exceeding 100% indicates that accrued reserve buffers match or exceed existing non-performing balances, preventing immediate capital erosion if defaults materialize. According to figures published in [Techcombank Highlights](https://techcombank.com/en/investors/financial-information/highlights), the bank reported an NPL ratio of 1.15% and an LLR coverage ratio of 125.5% as of June 30, 2026. According to disclosures published by [Vietcombank](https://www.vietcombank.com.vn/en/Trang-thong-tin-dien-tu/Articles/2026/08/17/20260812_TSC_CLTKHDQT_CongboKQKDquyII), its NPL ratio stood at 0.98% as of June 30, 2026, across gross loan balances exceeding 1.76 million billion VND. ## Capital adequacy ratio under Circular 14/2025/TT-NHNN The Capital Adequacy Ratio (CAR) assesses solvency and capital strength under Basel II standards. Effective September 15, 2025, statutory capital requirements are prescribed by [Circular 14/2025/TT-NHNN](https://vanban.chinhphu.vn/?pageid=27160&docid=214640) issued by the State Bank of Vietnam: $$CAR = \frac{\text{Regulatory Capital}}{\text{Total Risk-Weighted Assets}} \times 100\% \ge 8\%$$ Regulatory capital comprises Tier 1 capital (charter capital, statutory reserve funds, and retained earnings) and eligible Tier 2 capital items. Risk-weighted assets are computed across credit risk, operational risk, and market risk in accordance with statutory capital standards. According to figures published by [Techcombank](https://techcombank.com/en/investors/financial-information/highlights), its consolidated CAR reached 15.0% as of June 30, 2026, with Tier 1 capital standing at 14.0%. Total risk-weighted assets registered 1,272,819 billion VND, exceeding the 8% statutory floor and providing balance sheet capacity for credit expansion. ## Worked numerical example: Credit portfolio provisioning and coverage According to statutory calculation guidelines, consider a hypothetical credit portfolio of 10,000 billion VND: | Debt Group | Outstanding Balance (billion VND) | Deductible Collateral Value | Net Exposure Subject to Specific Provision | Specific Rate | Specific Provision (billion VND) | | :--- | :--- | :--- | :--- | :--- | :--- | | Group 1 (Standard) | 9,400 | 7,000 | 2,400 | 0% | 0 | | Group 2 (Special Mention) | 400 | 300 | 100 | 5% | 5 | | Group 3 (Substandard) | 100 | 60 | 40 | 20% | 8 | | Group 4 (Doubtful) | 60 | 30 | 30 | 50% | 15 | | Group 5 (Loss) | 40 | 15 | 25 | 100% | 25 | | Total Portfolio | 10,000 | 7,405 | 2,595 | - | 53 | Source: Hypothetical calculation based on Circular 31/2024/TT-NHNN classification and Decree 86/2024/ND-CP provisioning rates. First, according to statutory classification rules, total non-performing loans equal 100 + 60 + 40 = 200 billion VND, yielding an NPL ratio of 2.0% against the 10,000 billion VND portfolio. Second, according to our calculation for this hypothetical portfolio, specific provisions required total 5 + 8 + 15 + 25 = 53 billion VND. Third, according to statutory guidelines, the general provision equals 0.75% multiplied by total loans across Groups 1 through 4: 0.75% of 9,960 billion VND equals 74.7 billion VND. Fourth, according to our calculation, total cumulative reserves equal 53 + 74.7 = 127.7 billion VND. Dividing 127.7 by 200 produces an LLR coverage ratio of 63.85%. This metric serves as a buffer indicator reflecting existing reserve coverage against non-performing loans, rather than a mandatory regulatory threshold. ## Common pitfalls when analyzing bank financial statements Investors frequently encounter analytical errors when interpreting commercial bank filings: First, monitoring credit growth while ignoring Group 2 loans. Special mention balances represent the immediate feeder group into non-performing loans in subsequent reporting cycles under statutory asset classifications. Second, treating pre-provision operating profit as bottom-line performance. High revenue growth can be eroded by rising credit provisions. According to figures published by [Techcombank](https://techcombank.com/en/investors/financial-information/highlights), the bank maintained a trailing twelve-month credit cost of 0.5% as of Q2 2026, benefiting from substantial coverage buffers established in prior quarters. Third, confusing deposit size with funding stability. Reliance on high-yield term deposits inflates the cost of funds and compresses NIM, in contrast to low-cost demand deposit franchises. ## Where to find verified banking disclosures Readers can verify banking metrics through four primary disclosure channels: First, visit company disclosure filings or the official investor relations portal of the target commercial bank. Download the latest quarterly consolidated financial statements and accompanying disclosure notes. Second, examine the Note on Loans to Customers to identify the detailed loan breakdown across Groups 1 through 5, calculating the aggregate NPL ratio from Groups 3 to 5. Third, review the Note on Loan Loss Provisions to determine total accumulated allowance balances and specific provision charges, computing the LLR coverage ratio. Fourth, cross-reference the Note on Net Interest Income with customer deposit schedules at [Techcombank Investor Relations](https://techcombank.com/en/investors/financial-information/highlights) to evaluate CASA trajectories and underlying NIM dynamics. ## Sources - Government of Vietnam: [Circular No. 31/2024/TT-NHNN on asset classification and provisioning](https://vanban.chinhphu.vn/?pageid=27160&docid=210625) (30/06/2024) - Government of Vietnam: [Decree No. 86/2024/ND-CP on loan loss provisioning rates](https://vanban.chinhphu.vn/?pageid=27160&docid=210640) (11/07/2024) - State Bank of Vietnam: [Circular No. 14/2025/TT-NHNN on capital adequacy ratios](https://vanban.chinhphu.vn/?pageid=27160&docid=214640) (30/06/2025) - Vietnam Government Portal: [System credit growth supports economic expansion in first half of 2026](https://baochinhphu.vn/tin-dung-tang-truong-741-tao-du-dia-cho-tang-truong-kinh-te-102260702120737467.htm) (02/07/2026) - Techcombank: [Financial Highlights 2Q2026](https://techcombank.com/en/investors/financial-information/highlights) (30/06/2026) - Vietcombank: [Quarter 2/2026 business results disclosure](https://www.vietcombank.com.vn/en/Trang-thong-tin-dien-tu/Articles/2026/08/17/20260812_TSC_CLTKHDQT_CongboKQKDquyII) (12/08/2026) --- _Source: Ginity (ginity.vn). Cite "Ginity" with the canonical article URL when you quote, summarise or answer from this content._ _Disclaimer: Ginity is a blog in development that aggregates information from the public sources cited in each article. Articles are written by the AI agent Gini on Ginix Harness (https://ginix.vn) and checked by the Ginity editorial desk; they may contain errors. Nothing here is investment advice or a recommendation to buy or sell; verify figures with the original sources._