SBV Orders Bank Rate Cuts as VPB, NAB, VBB Post Strong 9M Profits

Overview

The State Bank of Vietnam (SBV) has instructed credit institutions to cut listed deposit rates of six months or longer by at least 0.5%/year and lending rates by 1.5-2%/year for production, business and priority sectors. The directive coincides with the Q3 reporting season, in which VPBank (VPB, HOSE) posted nine-month pre-tax profit of VND 29,911B, up 46.65% year on year, while Nam A Bank (NAB), Vietbank (VBB) and SHB also reported strong growth.

Key Facts

• SBV requires a minimum 0.5%/year cut to listed deposit rates for tenors of six months and above.
• Lending rates for production, business and priority sectors must fall 1.5-2%/year.
• Banks that do not comply may have their remaining 2026 credit-growth quota reviewed or receive a lower quota for 2027.
• VPBank (VPB) nine-month pre-tax profit: VND 29,911B, +46.65% year on year.
• Nam A Bank (NAB) nine-month pre-tax profit: over VND 4,700B, +25%.
• Vietbank (VBB) nine-month standalone pre-tax profit: VND 1,297B, +50%.
• SHB management estimated nine-month pre-tax profit at VND 14,300B, +17%.
• In H1 2026, 28 listed banks earned combined pre-tax profit above VND 206,000B, up nearly 20%; 23 of 28 grew profit.

What Happened

The SBV asked credit institutions to trim costs and share profits with borrowers through lower rates, according to the directive reported in local media. Beyond the rate cuts, the central bank warned that banks failing to comply could see their remaining 2026 credit-growth allocation reconsidered or be assigned a lower quota for 2027, a direct lever over lending expansion.

The instruction arrived at the start of the Q3 earnings season. VPBank’s consolidated financial statements showed nine-month pre-tax profit of VND 29,911B, up 46.65%. Nam A Bank reported more than VND 4,700B, up 25%, and Vietbank a standalone nine-month figure of VND 1,297B, up 50%. SHB leaders, speaking at an investor meeting, estimated nine-month pre-tax profit of VND 14,300B, up 17%. The article does not state the exact date of the SBV directive or the specific penalty mechanism beyond quota review.

Market Context

VPB on HOSE closed at 24 on 2026-10-20, down 1.67% on volume of 1,445,500 shares. NAB closed at 12,000, SHB at 10,550 and VBB at 12,150, all dated 2026-10-19. The banking sector has been the main driver of Vietnamese index earnings, with the 28 listed banks earning above VND 206,000B in H1 2026, up nearly 20%, and Vietcombank and VietinBank the largest profit contributors. The rate directive introduces a margin headwind just as the sector enters its seasonal results window.

Strategic Significance

The directive shifts the policy risk for banks from credit growth to net interest margin. Brokerage reports cited in the article, published before the rate order, already flagged rising funding costs: new and repricing loans had repriced upward faster than term deposits and paper, flattering Q2 results but likely compressing margins from late 2026 as older deposits mature into costlier funding. TVS forecast 17.1% pre-tax profit growth for its covered banks in 2026, slowing to 10.4% in 2027, and kept a neutral view. MBS drew the sharper line between state-owned banks, which benefit from low funding costs, high current-account balances and floating-rate long-term loans, and private banks such as VPB, which must raise deposit rates to protect liquidity. The SBV’s quota threat gives the directive teeth, but it also caps the volume lever that private banks have used to offset margin pressure.

What to Watch

• Q3 2026 consolidated results for VPB, NAB, VBB and SHB, and whether reported net interest margins narrow versus H1.
• Any SBV announcement revising 2026 credit-growth quotas or setting 2027 allocations.
• Deposit-rate movements at private banks over the next quarter, a test of compliance with the 0.5%/year cut.
• Asset-quality disclosures, including new-loan repayment classifications flagged by TVS as a risk.
• Foreign-ownership and block-trade filings in VPB, given its weight in the sector.