Vietnamese Bank NPLs Surge 11% in Q1 2026: BIDV and Sacombank Lead with Over VND 40,000B Each
This Aveluro analysis covers BID (Đầu tư và Phát triển Việt Nam (BIDV), có tiền thân là Ngân hàng Kiến thiết Việt Nam trực thuộc Bộ Tài chính được thành lậ) in the Banking sector. The classified event type is sector sentiment, with negative sentiment and a deterministic market-impact score of 4.0/10. Aveluro classifies this story as a negative catalyst and risk signal for the affected stock. Source coverage came from CafeF - Tài chính ngân hàng, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
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Overview
Non-performing loans (NPLs) across 27 listed Vietnamese banks rose 11% in Q1 2026 to VND 292,160 billion, with BIDV and Sacombank each exceeding VND 40,000 billion in bad debt. The broad-based increase signals worsening asset quality and potential pressure on provisioning costs for the banking sector.
Key Facts
- Total NPLs of 27 listed banks reached VND 292,160 billion as of March 31, 2026, up VND 28,065 billion (+11%) from end-2025.
- BIDV reported the largest absolute NPL balance at VND 42,655 billion, an increase of VND 7,678 billion (+22%) in Q1.
- Sacombank had VND 41,498 billion in NPLs, up VND 1,361 billion (+3%) quarter-on-quarter.
- VPBank’s NPLs rose VND 5,819 billion (+18%) to VND 37,284 billion, the second-largest absolute increase.
- Only three banks saw NPLs decline: VietinBank (-VND 1,318 billion, -6%), NamABank (-VND 607 billion, -14%), and ABBank (-VND 34 billion, -3%).
- TPBank recorded the fastest NPL growth rate among larger banks at +48%, from VND 3,938 billion to VND 5,846 billion.
- BacABank and PGBank saw NPLs surge 68% and 64%, respectively.
What Happened
According to financial reports from 27 listed banks, total non-performing loans surged 11% in the first quarter of 2026, adding VND 28,065 billion to reach VND 292,160 billion. The increase was broad-based, with only three lenders—VietinBank, NamABank, and ABBank—recording declines.
BIDV led in absolute NPL volume at VND 42,655 billion, up VND 7,678 billion (+22%), the largest absolute increase among all banks. Sacombank followed closely with VND 41,498 billion, though its quarterly increase was modest at VND 1,361 billion (+3%). VPBank posted the second-largest absolute rise, adding VND 5,819 billion (+18%) to reach VND 37,284 billion. Other major banks with NPL increases above VND 1,000 billion included HDBank (+VND 2,314 billion), MB (+VND 1,920 billion), SHB (+VND 1,743 billion), and Vietcombank (+VND 1,198 billion).
Market Context
BID shares closed at VND 42,950 on May 17, 2026, down 1.38% on volume of 10.5 million shares. HDB and VPB also declined, falling 0.90% and 2.13%, respectively. The sector-wide NPL data reinforces investor concerns about asset quality, particularly as credit growth accelerates. The Q1 2026 NPL ratio for the 27-bank sample is not disclosed in the article, but the absolute increase suggests the ratio likely rose given rapid loan expansion.
Strategic Significance
The NPL surge highlights a cyclical deterioration in credit quality across Vietnam’s banking system, driven by post-pandemic loan growth and potential stress in real estate and retail lending. For BIDV, the largest state-owned lender, the VND 7,678 billion NPL increase in a single quarter may require higher provisioning, weighing on near-term earnings. The divergence between banks—with VietinBank, NamABank, and ABBank bucking the trend—suggests that risk management and loan portfolio composition are becoming key differentiators. Investors should monitor NPL coverage ratios and provisioning costs in upcoming earnings reports.
What to Watch
- Q2 2026 NPL data for BIDV and Sacombank to see if the trend accelerates or stabilizes.
- Provisioning expense ratios and NPL coverage ratios in H1 2026 financial statements.
- SBV policy responses, including potential regulatory forbearance or tighter classification rules.
- Credit growth trends, as rapid loan expansion often precedes further NPL formation.
- Asset quality of specific segments (real estate, consumer finance) that may be driving the increase.