VIB, TCB, MBB Diversify Income as Insurance Fees Surge in H1 2026

Overview

Vietnamese banks are accelerating income diversification beyond lending, with insurance emerging as a key growth driver. In H1 2026, VIB, Techcombank (TCB), and MB (MBB) reported strong growth in insurance fee income, supporting more sustainable earnings amid narrowing net interest margins.

Key Facts

• VIB’s insurance income reached VND 790 billion in H1 2026, up 313.5% year-on-year.
• VIB’s Q2 2026 insurance income was approximately 8 times higher than Q1, hitting a multi-quarter high.
• Insurance’s share of VIB’s total service income rose from 11.1% to 18.9%.
• Techcombank’s insurance income exceeded VND 1,260 billion in H1 2026, up about 171% year-on-year.
• Techcombank’s insurance share of service income increased from 8.3% to 13.6%.
• MB’s insurance income reached over VND 5,051 billion in H1 2026, up 10.3% year-on-year.
• Techcombank owns Techcom Non-life Insurance and TCLife; MB owns MB Life and MIC.

What Happened

According to a report by S&I Ratings on the 2026 banking industry outlook, many banks established new securities and insurance subsidiaries in 2025, reflecting a clear trend toward ecosystem completion. The motivation is to find additional profit growth space as net interest income faces pressure.

In H1 2026, VIB recorded one of the strongest recoveries in insurance income, reaching VND 790 billion, a 313.5% increase year-on-year. In Q2 alone, this income was about eight times higher than Q1, reaching the highest level in several quarters. Techcombank also saw a significant comeback, with insurance income exceeding VND 1,260 billion in the first six months, up about 171% year-on-year, the highest in recent years. MB maintained a high scale of insurance revenue, with over VND 5,051 billion in H1 2026, up 10.3%.

Techcombank has built its own insurance companies, including Techcom Non-life Insurance and TCLife. According to Nguyen Anh Tuan, Deputy CEO of Techcombank, bancassurance income is creating a breakthrough for the bank. MB’s CEO Pham Nhu Anh stated that insurance remains a key area in the bank’s strategy, as demand for insurance among the population continues to grow.

Market Context

VIB (HOSE) closed at VND 14,900 on September 7, 2026; TCB (HOSE) at VND 31,900; and MBB (HOSE) at VND 20,200. The banking sector is under pressure from narrowing net interest margins and intense credit competition, prompting banks to diversify into non-lending income streams. Insurance, in particular, is emerging as a significant contributor to service income, aligning with broader sector trends toward ecosystem expansion.

Strategic Significance

For long-term investors, the shift toward insurance and other non-interest income represents a structural change in Vietnamese banks’ business models. By building in-house insurance capabilities and expanding bancassurance, banks like VIB, TCB, and MBB are reducing reliance on traditional lending, which is subject to cyclical credit demand and regulatory caps. This diversification can lead to more stable earnings and potentially higher valuations, as non-interest income often commands higher multiples. The growth in insurance income also reflects deeper customer relationships and cross-selling opportunities, which can enhance customer lifetime value.

What to Watch

• Q3 2026 earnings reports from VIB, TCB, and MBB to see if insurance income growth continues.
• Regulatory changes affecting bancassurance sales practices or fee structures.
• Updates on new insurance product launches or partnerships.
• Trends in net interest margins and credit growth to assess the relative importance of non-interest income.
• Any announcements regarding further ecosystem expansion, such as securities or asset management subsidiaries.