Nam A Bank H1 2026 Profit Up 25%, NPL Ratio Drops to 1.47%

Overview

Nam A Bank (HOSE: NAB) announced a 25% year-on-year increase in pre-tax profit for the first half of 2026, reaching VND 3,159 billion. The bank also reported significant improvement in asset quality, with the non-performing loan (NPL) ratio falling to 1.47% from 2.16% at end-2025, and the coverage ratio rising to nearly 70%. These results underscore the bank’s successful NPL resolution efforts and stronger risk provisioning.

Key Facts

• Pre-tax profit for H1 2026 reached VND 3,159 billion, up 25% year-on-year.
• NPL ratio dropped to 1.47% as of June 30, 2026, from 2.16% at end-2025.
• Group 2 (special mention) loans fell to 0.54% from 1.31% at end-2025.
• NPL coverage ratio improved to nearly 70%, up from 54% at end-2025.
• Total assets reached approximately VND 452 trillion, up 8% from end-2025.
• Customer loans grew over 10% to nearly VND 220 trillion; deposits and valuable papers rose 16% to VND 245 trillion.
• Cost-to-income ratio (CIR) stood at 40%.
• CAR was 10.8%, above the 8% regulatory minimum; short-term funding for medium/long-term loans at 22% (cap 40%); liquidity reserve near 20% (minimum 10%); 30-day VND liquidity coverage at 85% (minimum 50%).
• Completed VND 2,000 billion public bond issuance and a 20% stock dividend; issued 100 million ESOP shares; charter capital expected to exceed VND 21,588 billion.

What Happened

Nam A Bank released its H1 2026 financial results, showing a 25% increase in pre-tax profit to VND 3,159 billion. The bank highlighted a sharp improvement in asset quality: the NPL ratio fell to 1.47% from 2.16% at end-2025, and the coverage ratio rose to nearly 70% from 54%. Management attributed the improvement to aggressive NPL resolution, with most material bad debts fully handled and recovered.

Total assets grew 8% to about VND 452 trillion, while loans expanded over 10% to nearly VND 220 trillion. Deposits and issued valuable papers increased 16% to VND 245 trillion. The bank maintained a CIR of 40%, reflecting cost discipline alongside digital transformation investments. Capital adequacy remained strong, with CAR at 10.8% and liquidity ratios well above regulatory floors. During the period, the bank completed a VND 2,000 billion public bond issuance, a 20% stock dividend, and an ESOP issuance of 100 million shares, boosting charter capital above VND 21,588 billion.

Market Context

NAB shares closed at VND 12,300 on July 30, 2026. The bank’s improved profitability and asset quality come amid a competitive Vietnamese banking sector, where NPL ratios have been under scrutiny. Nam A Bank’s NPL ratio of 1.47% is now below the industry average, and its coverage ratio near 70% signals stronger resilience. The stock’s valuation may benefit from the earnings beat and the completion of capital-raising activities, which support future growth.

Strategic Significance

Nam A Bank’s H1 results demonstrate successful execution of its NPL cleanup and capital enhancement strategy. The sharp reduction in NPLs and higher coverage ratio reduce balance-sheet risk, potentially lowering the cost of risk and supporting future earnings. The completion of the bond issuance and stock dividend strengthens the bank’s capital base, enabling credit growth and digital investments. For long-term investors, the bank’s improving asset quality and prudent liquidity management position it well for sustainable growth, though continued monitoring of loan quality and capital adequacy is essential.

What to Watch

• Q3 2026 earnings release for sustained profit growth and NPL trends.
• Further updates on NPL resolution and recovery of written-off debts.
• Progress on digital transformation initiatives and their impact on CIR.
• Any new capital-raising plans or dividend announcements.
• Regulatory changes affecting capital adequacy or provisioning requirements.