Vietcombank leads H1 bank profits at VND 29.2T; nine banks top VND 10T

Overview

Vietcombank (VCB) reported H1 pre-tax profit of VND 29.2 trillion, up 33.5% year-on-year, leading a group of nine Vietnamese banks that each surpassed VND 10 trillion in H1 earnings. The results highlight the banking sector’s robust performance despite a challenging economic environment. Other top performers include VietinBank, MBBank, and BIDV, all reporting strong profit growth.

Key Facts

• Vietcombank (VCB) reported H1 pre-tax profit of VND 29,222 billion, up VND 7,328.5 billion year-on-year.
• VCB’s corporate income tax expense was VND 5,209 billion, with after-tax profit of VND 24,013 billion.
• VietinBank (CTG) posted H1 pre-tax profit of VND 25,868 billion, with after-tax profit of VND 20,743.5 billion.
• MBBank (MBB) recorded H1 pre-tax profit of VND 20,188 billion, after-tax profit of VND 16,148 billion.
• BIDV (BID) reported H1 pre-tax profit of VND 18,904 billion, after-tax profit of VND 15,173.8 billion.
• VPBank (VPB) surged to fifth place with H1 pre-tax profit of VND 18,880 billion, up VND 7,850.5 billion year-on-year.
• ACB (ACB) closed the list with H1 pre-tax profit of VND 10,735 billion, after-tax profit of VND 8,612.8 billion.

What Happened

According to financial statements released by the banks, nine Vietnamese banks reported pre-tax profits exceeding VND 10 trillion in the first half of the year. Vietcombank led the pack with nearly VND 30 trillion in pre-tax profit, followed by VietinBank and MBBank. The results reflect strong operational performance across the sector, with notable profit growth at VPBank, which saw a 71% increase year-on-year.

The banks also disclosed their corporate income tax expenses, which varied significantly relative to pre-tax profits. This discrepancy is partly due to deferred tax assets and liabilities, which arise from temporary differences between accounting profit and taxable income. For instance, Techcombank reported a higher tax expense than VPBank despite lower pre-tax profit. ACB recorded the highest deferred tax expense at VND 28.4 billion, while BIDV and VietinBank had none.

Market Context

Vietcombank (VCB) trades on HOSE at VND 59,300 as of August 1, 2026. The banking sector has been a key driver of the VN-Index, with large-cap banks like VCB, CTG, and BID showing resilience. VCB’s price-to-earnings ratio remains elevated relative to peers, reflecting its premium status. The sector’s strong earnings growth supports investor confidence, though concerns about asset quality and net interest margins persist.

Strategic Significance

For long-term investors, the H1 results underscore the banking sector’s ability to generate robust profits despite macroeconomic headwinds. Vietcombank’s leadership in profitability reinforces its position as a core holding in Vietnamese portfolios. The variation in tax expenses highlights the importance of understanding deferred tax items when comparing bank earnings. Investors should monitor how these banks manage credit growth and asset quality in the second half, as regulatory pressures and interest rate trends could impact margins.

What to Watch

• Q3 2026 earnings reports from VCB and peers, due in October.
• Changes in deferred tax positions, which could affect reported net income.
• Credit growth trends and any adjustments to full-year targets.
• Regulatory updates on capital adequacy and provisioning requirements.
• Foreign ownership limits and potential changes affecting large-cap banks.