VPBank, TPBank, ABBank H1 2026 Profits Surge; Banking Sector Growth Seen at 16%

Overview

Multiple Vietnamese banks reported strong profit growth for the first half of 2026, with VPBank (HOSE: VPB) leading with a 68% year-on-year increase in pre-tax profit. TPBank (HOSE: TPB) and ABBank (UPCOM: ABB) also posted robust results, nearing or exceeding half of their annual targets. Analysts expect the banking sector’s net profit to grow approximately 16% in H1, driven by credit expansion and digital banking initiatives.

Key Facts

• VPBank’s consolidated pre-tax profit for H1 2026 reached nearly VND 18,900 billion, up 68% YoY, achieving about 46% of its full-year target.
• VPBank’s total consolidated assets surpassed VND 1.5 quadrillion for the first time, up 19.2% from end-2025.
• TPBank reported pre-tax profit of nearly VND 4,670 billion in H1 2026, completing nearly half of its annual target.
• ABBank posted pre-tax profit of VND 3,016 billion in H1 2026, up 80% YoY and achieving 67% of its full-year plan.
• MB Securities (MBS) forecasts banking sector net profit to grow about 16% in H1 2026, with Q2 net profit up 15% YoY.
• Credit growth for the tracked banks is estimated at 9% by end-Q2 2026, with corporate lending as the main driver.
• FiinRatings expects the sector’s net interest margin (NIM) to remain below 3% in 2026 due to high funding costs and narrowing loan yields.

What Happened

According to financial reports compiled up to July 18, 2026, VPBank reported consolidated pre-tax profit of nearly VND 18,900 billion for the first half of the year, a 68% increase compared to the same period in 2025. The bank’s total assets exceeded VND 1.5 quadrillion, driven by strong credit growth, with parent bank loans reaching nearly VND 1.06 quadrillion, up 24.6% from end-2025. In Q2 alone, VPBank recorded nearly VND 11,000 billion in pre-tax profit, the highest quarterly figure in its history.

TPBank reported pre-tax profit of nearly VND 4,670 billion in H1 2026, achieving about half of its annual target. The bank attributed growth not only to credit but also to digital banking initiatives, including big data and AI applications in operations, credit assessment, and risk management, which optimized costs and improved efficiency. ABBank became the first bank to announce H1 results, with pre-tax profit of VND 3,016 billion, up 80% YoY and completing 67% of its full-year plan.

Market Context

VPB closed at VND 25,850 on July 18, 2026, reflecting investor optimism following the strong earnings. TPB ended at VND 15,200, while ABB closed at VND 17,500. The banking sector on HOSE has been a key driver of the VN-Index, supported by improving economic conditions and rising corporate credit demand. However, analysts caution that NIM compression and high credit-to-GDP ratios may temper future growth.

Strategic Significance

The strong H1 results underscore the resilience of Vietnam’s banking sector amid economic recovery and digital transformation. VPBank’s asset milestone and profit surge highlight its successful credit expansion and operational leverage. TPBank’s focus on digital banking and AI-driven efficiency positions it well for sustainable growth, while ABBank’s rapid profit growth suggests effective cost management and credit quality. However, FiinRatings’ warning about NIM pressure and selective credit growth indicates that banks must balance expansion with risk control to maintain profitability.

What to Watch

• Q2 2026 earnings reports from other major banks (e.g., VCB, BID, CTG) for sector-wide confirmation.
• SBV credit growth targets and any adjustments to policy rates or reserve requirements.
• NIM trends in upcoming quarterly reports, especially for banks with high loan growth.
• Asset quality indicators, particularly non-performing loan ratios and provisioning.
• Foreign ownership limits and any changes in capital adequacy ratios (CAR) under Basel III implementation.