VPBank H1 2026 Profit Up 68%, NPL at Multi-Year Low

Overview

VPBank (HoSE: VPB) reported a 68% year-on-year increase in H1 2026 consolidated profit, reaching nearly VND 18.9 trillion, while asset quality improved to multi-year lows. The bank’s standalone NPL ratio fell to 2% under Circular 31, below its 2.5% target, and consolidated NPL remained under 3%. Multiple securities firms, including BSC, VNDirect, HSC, and Vietcap, have issued positive assessments following the Q2 2026 results.

Key Facts

• H1 2026 consolidated profit reached nearly VND 18.9 trillion, up 68% YoY, completing about 46% of the full-year plan.
• Standalone NPL ratio under Circular 31 was 2%, below the bank’s 2.5% target; consolidated NPL was under 3%.
• The bank set aside over VND 7.9 trillion in provisions and handled VND 6.2 trillion in bad debt during Q2 2026, similar to Q1.
• Income from bad-debt recovery rose 26% YoY, with FE CREDIT contributing nearly 40% of the group’s total recovery income.
• Standalone credit reached VND 1.06 quadrillion, up 24.6% from the start of the year.
• VPBank is considering issuing an additional 5% stake to a foreign investor to strengthen capital buffers.
• CAR under Basel II remains among the highest in the banking system.

What Happened

VPBank announced its Q2 2026 business results, highlighting a significant improvement in asset quality. According to BSC’s update, the NPL and group 2 debt ratios have fallen to their lowest levels in several years. The bank continued aggressive provisioning and bad-debt handling, with over VND 7.9 trillion in provisions and VND 6.2 trillion in bad debt processed in Q2, similar to the previous quarter.

The bank’s leadership attributes the results to a long-term strategy focused on risk management, data, and technology. During an investor meeting, executives emphasized that these investments are paying off, as evidenced by strong credit growth and a surge in non-interest income. The positive results have drawn favorable commentary from BSC, VNDirect, HSC, and Vietcap, all noting the improving asset quality and potential for sustained profit growth.

Market Context

VPB closed at VND 25,150 on August 6, 2026, reflecting investor confidence in the bank’s performance. The banking sector on HOSE has been supported by improving asset quality and robust credit growth across the industry. VPBank’s strong H1 results, particularly the NPL decline and profit surge, position it favorably among peers. The bank’s consideration of a 5% foreign issuance also signals a proactive approach to capital management, which could attract further foreign interest.

Strategic Significance

VPBank’s improving asset quality and strong profit growth underscore the effectiveness of its long-term investments in risk management and technology. The bank’s ability to maintain high CAR while expanding credit suggests a solid foundation for future growth. The potential foreign issuance would not only bolster capital but also enhance market sentiment, potentially leading to a re-rating of the stock. For long-term investors, VPBank’s focus on sustainable growth and risk control is a positive signal, especially in a competitive banking environment.

What to Watch

• Q3 2026 earnings release, expected in October 2026, to see if profit growth and asset quality trends continue.
• Confirmation of the 5% foreign issuance and its impact on capital ratios and foreign ownership limits.
• Credit growth trajectory in H2 2026, particularly in retail and SME segments.
• NPL and group 2 debt trends, especially any impact from macroeconomic headwinds.
• Regulatory changes, such as updates to Circular 31, that could affect provisioning requirements.