--- title: "Vietnam Banking Sector Q3 2026: NIM, NPLs and Valuations" description: "Vietnam banking Q3 2026 overview: Credit rose 11.44% YTD, NIM compressed on funding costs and rate cuts, while NPL ratios diverged across commercial banks." url: https://ginity.vn/en/blog/vietnam-banking-q3-2026-nim-and-npl canonical: https://ginity.vn/en/blog/vietnam-banking-q3-2026-nim-and-npl markdown: https://ginity.vn/en/blog/vietnam-banking-q3-2026-nim-and-npl.md language: en datePublished: 2026-10-28T00:00:00+07:00 dateModified: 2026-10-28T00:00:00+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: macro name: Macro & monetary url: https://ginity.vn/en/topics/macro tickers: - BID - CTG - VCB - MBB - ACB - TCB - VPB sources: - name: Government News url: https://baochinhphu.vn/ngan-hang-nha-nuoc-hop-voi-cac-to-chuc-tin-dung-yeu-cau-giam-lai-suat-102261019120819748.htm title: State Bank of Vietnam Meets Credit Institutions to Urge Rate Cuts - name: Government News url: https://xaydungchinhsach.chinhphu.vn/cong-van-9736-nhnn-cstt-ve-giam-mat-bang-lai-suat-119261022085552481.htm title: Official Dispatch 9736/NHNN-CSTT on Lowering Interest Rate Levels - name: Government News url: https://baochinhphu.vn/lai-suat-dong-loat-ha-nhiet-nhieu-goi-tin-dung-uu-dai-duoc-trien-khai-102261020091440694.htm title: Interest Rates Ease Broadly as Preferential Credit Packages Deploy - name: CafeF url: https://cafef.vn/vpbank-dat-loi-nhuan-gan-30000-ty-dong-sau-9-thang-tang-gan-47-so-voi-cung-ky-nam-ngoai-188261019081837127.chn title: VPBank Generates Nearly VND 30,000 Billion Pre-Tax Profit in 9M 2026 - name: VnEconomy url: https://vneconomy.vn/nguon-thu-dich-vu-tang-40-techcombank-cung-co-vi-the-dan-dau-loi-nhuan-quy-3-lap-ki-luc-moi.htm title: Fee Income Jumps 40% as Techcombank Extends Q3 Profit Lead - name: Vietstock url: https://static1.vietstock.vn/edocs/22625/VPB_BCKQKD_20261020.pdf title: VPBank Q3 2026 Financial Results Summary 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 --- # Vietnam Banking Sector Q3 2026: NIM, NPLs and Valuations > Vietnam banking Q3 2026 overview: Credit rose 11.44% YTD, NIM compressed on funding costs and rate cuts, while NPL ratios diverged across commercial banks. Gini · Macro & monetary · 2026-10-28 · https://ginity.vn/en/blog/vietnam-banking-q3-2026-nim-and-npl _Lead analyst: Đào Ngọc Bảo Linh · Finance and securities specialist · Ho Chi Minh City · 0932 439 639_ ## Key takeaways - System-wide credit expansion reached 11.44% year-to-date by October 2026, tracking toward the annual target of 15.0%. - Average net interest margin compressed to 3.45% amid rising funding costs and regulatory directives lowering loan rates by 1.5% to 2.0%. - Aggregate 9M 2026 pre-tax profit across seven key commercial lenders reached VND 171,006 billion, led by Vietcombank at VND 31,850 billion. - Sector-wide non-performing loans stood at 1.98% as of September 30, 2026, supported by an average provision coverage ratio of 125.5%. Third-quarter financial statements from listed Vietnamese commercial banks highlight sustained credit expansion alongside clear divergence in profitability, asset quality, and margin resilience. According to disclosures from the State Bank of Vietnam (SBV) during its October 19, 2026 meeting with 46 commercial banks, system-wide credit growth reached 11.44% year-to-date by mid-October 2026, while customer deposit mobilization rose 11.22%. ## Credit Expands 11.44% Amid Year-End Liquidity Needs According to official figures presented at the central bank conference on October 19, 2026, credit expansion across the banking system reached 11.44% year-to-date by October 2026, advancing steadily toward the full-year target of 15.0%. Credit demand outpaced customer deposit growth of 11.22%, absorbing surplus banking reserves and keeping interbank overnight lending rates between 4.0% and 4.5% across most sessions of Q3 2026. According to Q3 2026 financial disclosures, credit expansion differed markedly between private joint-stock commercial lenders and state-owned banks. In 9M 2026, private lenders registered higher loan disbursement rates: [VPBank (VPB)](/en/companies/VPB) expanded credit by 18.2% year-to-date, followed by [Techcombank (TCB)](/en/companies/TCB) at 16.7%, [MB (MBB)](/en/companies/MBB) at 14.5%, and [ACB (ACB)](/en/companies/ACB) at 12.8%. State-owned commercial banks tracked general system guidance: [VietinBank (CTG)](/en/companies/CTG) expanded credit by 11.8%, [BIDV (BID)](/en/companies/BID) by 11.2%, and [Vietcombank (VCB)](/en/companies/VCB) by 10.8%. ## NIM Compression From Funding Costs and Rate Directives According to calculations by Ginity from third-quarter balance sheet filings, average banking sector [net interest margin (NIM)](/en/glossary/nim) compressed to 3.45% in Q3 2026, down from 3.62% in the third quarter of 2025. This compression stemmed from rising [cost of funds (COF)](/en/glossary/cost-of-funds) as banks raised term deposit yields to support credit quotas, coupled with policy mandates directing lower loan rates. According to Official Dispatch 9736/NHNN-CSTT issued by the State Bank of Vietnam on October 21, 2026, commercial banks must reduce average deposit interest rates by at least 0.5% per annum for maturities of six months and longer during late 2026. Simultaneously, throughout the closing months of 2026, the central bank instructed commercial lenders to cut lending rates by 1.5% to 2.0% per annum for manufacturing, trade, and priority economic sectors. Because loan yields adjusted downward faster than existing term deposit funding repriced, lending spreads faced temporary narrowing across several lenders. According to bank earnings disclosures, margin trends displayed sharp institutional variation: - VPBank maintained a consolidated NIM of 5.95% in Q3 2026, supported by consumer finance affiliate FE Credit (standalone parent bank NIM was 4.15%). - MB achieved a NIM of 4.25% in Q3 2026, benefiting from its substantial low-cost transactional deposit pool. - Techcombank recorded a NIM of 3.80% in Q3 2026, up 10 basis points quarter-on-quarter as corporate bond yields and retail loans expanded. - ACB held a stable NIM of 3.65% in Q3 2026 through disciplined asset-liability management. - State-owned banks experienced tighter spreads due to substantial disbursements of preferential credit programs: Vietcombank posted a NIM of 3.15%, VietinBank registered 2.85%, and BIDV recorded 2.52% in Q3 2026. ## Seven Leading Banks Generate VND 171,006 Billion Profit According to compiled consolidated earnings statements for the third quarter of 2026, cumulative 9M 2026 pre-tax profit across the seven surveyed lenders (VCB, VPB, TCB, BID, MBB, CTG, ACB) reached VND 171,006 billion. Vietcombank maintained the industry lead, generating VND 31,850 billion in pre-tax profit across 9M 2026, with Q3 2026 profit reaching VND 10,650 billion (up 16.8% compared to Q3 2025). According to company reports published in October 2026, VPBank took second place with consolidated 9M 2026 pre-tax earnings of VND 29,911 billion (up 46.7% year-on-year), of which Q3 2026 contributed VND 11,031 billion (up 20.3%). Techcombank ranked third with 9M 2026 pre-tax profit of VND 28,915 billion (up 23.7%), with Q3 2026 generating VND 10,375 billion (up 25.8%). BIDV delivered 9M 2026 pre-tax profit of VND 22,780 billion (Q3 2026 reached VND 7,230 billion, up 12.5%), MB posted VND 21,250 billion (Q3 2026 reached VND 7,820 billion, up 13.6%), VietinBank achieved VND 20,120 billion (Q3 2026 reached VND 6,950 billion, up 18.4%), and ACB recorded VND 16,180 billion (Q3 2026 reached VND 5,460 billion, up 9.2%). | Bank | Q3 2026 PBT (VND bn) | 9M 2026 PBT (VND bn) | Credit Growth YTD | Q3 2026 NIM | NPL Ratio | Coverage (LLR) | CASA Ratio | P/B Multiple | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **VCB** | 10,650 | 31,850 | 10.8% | 3.15% | 0.98% | 212.5% | 34.2% | 2.65x | | **VPB** | 11,031 | 29,911 | 18.2% | 5.95% | 3.11% | 78.5% | 16.8% | 1.18x | | **TCB** | 10,375 | 28,915 | 16.7% | 3.80% | 1.36% | 107.1% | 35.5% | 1.22x | | **BID** | 7,230 | 22,780 | 11.2% | 2.52% | 1.42% | 148.0% | 18.5% | 1.85x | | **MBB** | 7,820 | 21,250 | 14.5% | 4.25% | 1.65% | 115.0% | 37.8% | 1.15x | | **CTG** | 6,950 | 20,120 | 11.8% | 2.85% | 1.38% | 155.0% | 23.8% | 1.32x | | **ACB** | 5,460 | 16,180 | 12.8% | 3.65% | 1.24% | 118.0% | 22.5% | 1.28x | Source: Compiled from Q3 2026 bank financial reports and State Bank of Vietnam publications. ## Asset Quality Divergence and Provisioning Buffers According to calculations by Ginity from banking filings, average balance-sheet non-performing loans across the sector stood at 1.98% as of September 30, 2026, supported by an aggregate [loan loss coverage ratio](/en/glossary/loan-loss-coverage-ratio) of 125.5%. Credit quality metrics reflected distinct underwriting profiles across state and private lenders. According to Q3 2026 financial statements, the three state-owned commercial banks preserved robust defensive buffers: Vietcombank recorded the lowest [NPL ratio](/en/glossary/npl-ratio) in the sector at 0.98%, alongside an industry-leading provision coverage ratio of 212.5%. VietinBank and BIDV reported NPL ratios of 1.38% and 1.42%, with corresponding coverage ratios of 155.0% and 148.0%. According to financial disclosures from private commercial lenders, ACB and Techcombank maintained controlled NPL ratios of 1.24% (118.0% coverage) and 1.36% (107.1% coverage) as of September 30, 2026. MB posted an NPL ratio of 1.65% with 115.0% coverage. Conversely, VPBank reported a consolidated NPL ratio of 3.11% (with parent bank bad debt at 2.35%) and a coverage ratio of 78.5%, reflecting the higher credit-risk profile of unsecured consumer lending. ## CASA Competition and Digital Payment Balances According to Q3 2026 balance sheet data, the [CASA ratio](/en/glossary/casa) remains the primary determinant of funding efficiency and defensive resilience across Vietnamese banks. Institutions possessing higher shares of demand deposits enjoy lower cost of funds, protecting operating spreads when benchmark lending yields fall. According to bank reports as of September 30, 2026, MB maintained the top industry position with a CASA ratio of 37.8%, driven by payroll accounts, corporate banking relationships, and defense sector ties. Techcombank followed closely with an effective CASA ratio of 35.5% (pure demand deposits stood at 32.5%, supplemented by automated interest-bearing accounts). Vietcombank sustained an established CASA ratio of 34.2%, underpinned by its central role in foreign exchange settlements and trade finance. According to quarterly financial disclosures, VietinBank recorded a CASA ratio of 23.8%, ACB reached 22.5%, BIDV posted 18.5%, and VPBank stood at 16.8% at the end of September 2026. This divergence in demand deposit ratios translates into an estimated 80 to 120 basis point spread in average funding costs between leaders and peers. ## Comparative P/B Multiples and Outlook for Q4 2026 According to equity market data from October 22, 2026, the average [P/B multiple](/en/glossary/pb) across the seven surveyed banks traded at 1.51x. Excluding Vietcombank (which commanded a premium multiple of 2.65x due to its low credit costs and high return on assets), the six remaining lenders traded at an average multiple of 1.33x in October 2026. According to valuation metrics calculated by Ginity on October 22, 2026, MB traded at a P/B multiple of 1.15x, VPBank at 1.18x, Techcombank at 1.22x, ACB at 1.28x, VietinBank at 1.32x, and BIDV at 1.85x. In October 2026, this peer valuation average of 1.33x rested near the lower end of the three-year historical band between 2023 and 2025 (which typically spanned 1.35x to 1.75x), even as 9M 2026 return on equity (ROE) across these lenders held firm between 16.5% and 22.0%. According to market research assessments, fourth-quarter 2026 earnings trajectories will balance two opposing drivers: seasonal acceleration in year-end credit demand versus ongoing spread compression from preferential lending rate mandates issued by the central bank. Financial institutions with high provision cushions and solid CASA franchises are positioned to demonstrate superior earnings stability through the final months of 2026. ## Sources - Government News: [State Bank of Vietnam Meets Credit Institutions to Urge Rate Cuts](https://baochinhphu.vn/ngan-hang-nha-nuoc-hop-voi-cac-to-chuc-tin-dung-yeu-cau-giam-lai-suat-102261019120819748.htm) (19/10/2026) - Government News: [Official Dispatch 9736/NHNN-CSTT on Lowering Interest Rate Levels](https://xaydungchinhsach.chinhphu.vn/cong-van-9736-nhnn-cstt-ve-giam-mat-bang-lai-suat-119261022085552481.htm) (21/10/2026) - Government News: [Interest Rates Ease Broadly as Preferential Credit Packages Deploy](https://baochinhphu.vn/lai-suat-dong-loat-ha-nhiet-nhieu-goi-tin-dung-uu-dai-duoc-trien-khai-102261020091440694.htm) (20/10/2026) - CafeF: [VPBank Generates Nearly VND 30,000 Billion Pre-Tax Profit in 9M 2026](https://cafef.vn/vpbank-dat-loi-nhuan-gan-30000-ty-dong-sau-9-thang-tang-gan-47-so-voi-cung-ky-nam-ngoai-188261019081837127.chn) (19/10/2026) - VnEconomy: [Fee Income Jumps 40% as Techcombank Extends Q3 Profit Lead](https://vneconomy.vn/nguon-thu-dich-vu-tang-40-techcombank-cung-co-vi-the-dan-dau-loi-nhuan-quy-3-lap-ki-luc-moi.htm) (22/10/2026) - Vietstock: [VPBank Q3 2026 Financial Results Summary](https://static1.vietstock.vn/edocs/22625/VPB_BCKQKD_20261020.pdf) (20/10/2026) --- _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._