VIB Posts VND 7,600B Pre-Tax Profit for 9M, Up 8% on 18% Income Growth

Overview

VIB Bank (ticker VIB, HOSE) reported pre-tax profit of nearly VND 7,600 billion for the first nine months of the year, up 8% year-on-year, according to its just-published financial statements. Total operating income rose 18% to more than VND 17,300 billion while operating costs fell 2%, producing positive jaws. The result keeps VIB’s return on equity at 16.2% with the non-performing loan ratio held at 2.29%.

Key Facts

• Pre-tax profit for 9M reached nearly VND 7,600 billion, up 8% year-on-year.
• Total operating income exceeded VND 17,300 billion, up 18%; net interest income was VND 13,180 billion.
• Non-interest income contributed 23% of revenue.
• Operating costs were above VND 5,300 billion, down 2% year-on-year.
• Credit risk provisioning exceeded VND 4,300 billion for the nine-month period.
• ROE was 16.2% and the NPL ratio 2.29%.
• Total assets reached nearly VND 600,000 billion at 30 September, up 8% from the start of the year; credit outstanding was over VND 411,000 billion (+8%) and customer deposits over VND 322,000 billion (+9%).
• Retail and SME borrowers made up 66% of the loan book; corporates and financial institutions 34%; CASA and foreign-currency deposits combined were 19% of customer deposits.

What Happened

VIB disclosed the figures in its third-quarter financial statements, without a separate press release cited in the source. Net interest income of VND 13,180 billion remained the core revenue engine, while non-interest income at 23% of the total diversified the top line beyond lending. Operating costs of more than VND 5,300 billion fell 2% even as revenue expanded, which the bank frames as an operating-efficiency gain. Provisioning of over VND 4,300 billion absorbed part of the income growth and left pre-tax profit at roughly VND 7,600 billion.

On the balance sheet, total assets reached nearly VND 600,000 billion at 30 September, up 8% from the start of the year. Credit grew 8% to more than VND 411,000 billion, with retail and SME customers accounting for 66% of the book. Deposits rose 9% to over VND 322,000 billion, outpacing credit growth, and CASA plus foreign-currency deposits made up 19% of customer deposits. The bank also outlined deposit-rate cuts of up to 0.5 percentage points per year on tenors above six months, a VND 15,000 billion corporate credit package with rate reductions of up to 1.5 percentage points, an additional 1 percentage point cut on home loans in selected regions, and a VND 5,000 billion auto-lending programme with a fixed rate for the first 24 months.

Market Context

VIB trades on HOSE and last closed at 14,100. The 8% profit growth is a mid-single-digit expansion rather than an acceleration, and the 2.29% NPL ratio sits above the levels reported by the strongest Vietnamese banks, so the result reads as steady rather than exceptional. The 18% income growth against 2% lower costs is the cleanest part of the release; the offset is a provisioning line above VND 4,300 billion that consumed a meaningful share of the incremental revenue. Sector-wide, Vietnamese banks are balancing government and State Bank of Vietnam pressure to lower lending rates against the need to build buffers, and VIB’s rate-cut packages are a direct response to that policy direction.

Strategic Significance

The thesis for VIB rests on its retail and SME franchise, which at 66% of the loan book gives it higher-yielding assets than corporate-heavy peers but also greater sensitivity to consumer credit quality. Holding NPLs at 2.29% while growing credit 8% and cutting lending rates implies the bank is prioritising volume and customer retention over near-term margin expansion. Deposit growth of 9% outpacing credit growth of 8% eases funding pressure and supports the CASA and FX mix at 19%, but the durability of the 16.2% ROE depends on whether provisioning peaks in the coming quarters. The VND 15,000 billion corporate package targeting supporting industries, public investment, renewable energy and exports aligns the loan book with government priority sectors, which may help with credit-growth quotas.

What to Watch

• Fourth-quarter and full-year 2025 results, including whether provisioning above VND 4,300 billion continues at the same pace.
• Movement in the NPL ratio from 2.29%, particularly within the retail and SME segments that make up 66% of loans.
• Net interest margin disclosure for Q3 and Q4, to gauge the cost of the deposit-rate cuts and lending-rate concessions.
• State Bank of Vietnam credit-growth quota allocation for the sector and any further rate-direction guidance.
• CASA and foreign-currency deposit share, currently 19%, as a proxy for funding-cost relief.