Vietnam Banking H1 2026: Asset Growth Strong, NIM Pressure Divides Banks

Overview

In H1 2026, Vietnam’s banking sector recorded strong asset growth, with total assets reaching approximately VND 22.6 quadrillion, up 20% YoY. However, profitability metrics such as NIM, ROE, and ROA showed clear divergence across bank groups, with large private banks and state-owned banks outperforming smaller peers. The data, compiled by NSI, highlights widening gaps in capital efficiency and operational performance among listed banks including MBB, VPB, HDB, VCB, CTG, and BID.

Key Facts

• Total banking system assets reached ~VND 22.6 quadrillion at end-Q2 2026, up 20% YoY and 6.73% from the start of the year.
• Equity capital rose to ~VND 1.92 quadrillion, up 19.6% YoY and 8% YTD.
• Large private banks’ assets grew ~22% YoY, outpacing small banks (18%) and state-owned banks (16%).
• MBB, VPB, and HDB saw total assets surge ~34%, 36%, and 33% YoY, respectively; VCB grew ~20%.
• YTD asset growth: VCB +9%, CTG +7%, BID +3%, VPB +19%, HDB +12%.
• Q2 2026 ROE: state-owned banks ~18%, large private banks ~15.6%, small banks ~10.8%.
• ROA: large private banks ~1.5%, state-owned ~1.3%, small banks ~0.8%.
• CIR: state-owned banks 28-32%, large private banks 30-35%, small banks higher.

What Happened

According to data aggregated by NSI, the Vietnamese banking system’s total assets grew to approximately VND 22.6 quadrillion by the end of Q2 2026, a 20% increase year-on-year. Equity capital also expanded, reaching VND 1.92 quadrillion, up 19.6% YoY. The growth was uneven: large private commercial banks led with 22% asset growth, followed by small banks at 18% and state-owned banks at 16%. Notably, MBB, VPB, and HDB recorded asset expansions of 34%, 36%, and 33% YoY, respectively, while VCB grew 20%.

Profitability metrics showed significant divergence. In Q2 2026, state-owned banks posted the highest ROE at approximately 18%, followed by large private banks at 15.6%, and small banks at only 10.8%. ROA was highest among large private banks at 1.5%, compared to 1.3% for state-owned banks and 0.8% for small banks. The cost-to-income ratio (CIR) also varied, with state-owned banks maintaining the lowest at 28-32%, large private banks at 30-35%, and small banks higher. These figures underscore the widening gap in operational efficiency and profitability across the sector.

Market Context

As of August 23, 2026, MBB closed at VND 20,850 on HOSE, VPB at VND 25,700, HDB at VND 27,300, and VCB at VND 59,100. The sector’s strong asset growth has not translated uniformly into share price performance, as investors weigh NIM pressure and asset quality risks. The divergence in profitability metrics is likely to influence stock selection, with banks demonstrating superior ROE and cost control, such as state-owned banks and large private players, potentially commanding premium valuations. The broader Vietnamese market has shown resilience, but banking stocks remain sensitive to credit growth and interest rate trends.

Strategic Significance

For long-term investors, the H1 2026 data highlights the importance of scale and operational efficiency in Vietnam’s banking sector. Banks like MBB, VPB, and HDB are aggressively expanding their balance sheets, leveraging ecosystem synergies and diversified income streams, which could drive future earnings growth. However, NIM pressure suggests that banks with strong non-interest income and disciplined cost management will be better positioned. State-owned banks, with their lower CIR and high ROE, offer stability, while smaller banks face challenges in maintaining profitability. The divergence underscores the need for stock-specific analysis rather than a blanket sector approach.

What to Watch

• Q3 2026 earnings reports from MBB, VPB, HDB, and VCB for NIM trends and asset quality indicators.
• Credit growth data for the full year 2026, especially whether the ~20% asset growth translates into sustainable loan growth.
• Regulatory updates on capital adequacy (CAR) requirements and potential capital raises by fast-growing banks.
• Interest rate movements by the State Bank of Vietnam, which could impact NIM across the sector.
• Foreign ownership changes in major banks, as foreign investors may favor banks with stronger profitability metrics.