VIB Q1/2026 Pre-Tax Profit Exceeds 2,800B VND, Up 16% YoY; Dividend at 19%

Overview

VIB (Vietnam International Bank) reported Q1/2026 pre-tax profit exceeding 2,800 billion VND, a 16% year-on-year increase. The bank’s annual general meeting approved a total dividend payout of nearly 19% (9% cash, 9.5% stock) and officially launched its Privilege Banking service. Credit growth reached over 1% while deposits rose 7% from the start of the year, reflecting a selective growth focus on asset quality.

Key Facts

• Q1/2026 pre-tax profit: over 2,800 billion VND, up 16% YoY.
• Total dividend payout: nearly 19%, comprising 9% cash and 9.5% stock.
• Total assets: over 564 trillion VND, up 1% from the start of 2026.
• Credit growth: over 1% in Q1, with retail lending accounting for nearly 70% of the portfolio.
• Customer deposits: up 7% from the start of the year; CASA up 5%.
• NPL ratio: 2.13% as of end-Q1 2026.
• CAR (Basel III SA): over 12%, well above the SBV’s 8% minimum.

What Happened

VIB announced its Q1/2026 business results, with pre-tax profit surpassing 2,800 billion VND, a 16% increase from the same period last year. The bank’s annual general meeting approved a dividend plan totaling nearly 19%, split into 9% cash and 9.5% stock, maintaining a consistent payout policy that balances growth and shareholder returns.

In Q1, total assets exceeded 564 trillion VND (+1% YTD), while credit outstanding grew over 1%, concentrated in high-quality segments. Retail lending remained the core, accounting for nearly 70% of the loan book. Corporate lending rose 8% YoY, supported by comprehensive financial solutions and digitalization. On the funding side, customer deposits increased 7% YTD, with CASA up 5%, helping optimize funding costs and support net interest margins.

Market Context

VIB shares closed at 17,000 VND on April 15, 2026, down 1.14% on volume of 7.1 million shares. The stock trades on HOSE. The banking sector has faced headwinds from rising NPLs and regulatory pressure, but VIB’s NPL of 2.13% remains manageable. The bank’s CAR of 12% under Basel III provides a solid capital buffer, positioning it for controlled growth amid a cautious market environment.

Strategic Significance

VIB’s Q1 results underscore its strategy of selective growth, prioritizing asset quality over volume. The high dividend payout (nearly 19%) signals confidence in earnings sustainability and commitment to shareholder returns. The launch of Privilege Banking targets high-net-worth clients, potentially boosting fee income and customer loyalty. With a strong capital base and controlled NPL, VIB is well-placed to navigate economic uncertainty while maintaining profitability.

What to Watch

• Q2/2026 earnings release for continued profit growth and NPL trends.
• Credit growth trajectory relative to the full-year target.
• Impact of Privilege Banking on non-interest income in coming quarters.
• SBV policy changes on interest rates or credit growth caps.
• Foreign ownership levels and any changes in institutional holdings.