VPBank, VietinBank Lead Q1 2026 Banking Profit Surge in Vietnam

Overview

In Q1 2026, 27 listed Vietnamese banks reported aggregate pre-tax profit exceeding 94,000 billion VND, up approximately 14% year-on-year. VPBank (VPB), VietinBank (CTG), BVBank (BVB), PGBank (PGB), and ABBank (ABB) recorded the strongest profit growth, with increases ranging from 58% to 269%. The results reflect robust credit expansion and improved operating efficiency across the sector.

Key Facts

• 27 listed banks reported total pre-tax profit of over 94,000 billion VND in Q1 2026, up ~14% YoY.
• VPBank (VPB) posted pre-tax profit of over 7,900 billion VND, up 58% YoY, achieving nearly 20% of its full-year target.
• VietinBank (CTG) recorded pre-tax profit of 11,139 billion VND, up 63.3% YoY, driven by a 23% rise in total operating income and a 5% decline in provision costs.
• BVBank (BVB) profit surged 170% YoY, PGBank (PGB) up 187%, and ABBank (ABB) up 269%.
• VPBank’s consolidated loan book exceeded 1 million billion VND, growing over 10% from the start of the year.
• VPBank’s subsidiaries (VPBankS, OPES, FE Credit) all contributed positively, with OPES profit nearly tripling.
• VietinBank’s net interest income rose 25.3%, while fee income and forex trading grew 14.6% and 18.8%, respectively.

What Happened

According to the banks’ Q1 2026 financial statements, the majority of listed Vietnamese banks reported year-on-year profit growth. VPBank attributed its 58% profit increase to strong operating income, which rose 26.3% to over 19,900 billion VND, led by the parent bank’s 33.8% income growth. Credit expansion was a key driver, with consolidated loans surpassing 1 million billion VND. The bank’s ecosystem, including securities (VPBankS), insurance (OPES), and consumer finance (FE Credit), also contributed positively.

VietinBank’s profit growth of 63.3% was supported by a 23% increase in total operating income and a 5% reduction in credit provision costs. Notably, income from investment securities surged 330.8%, while trading securities income declined sharply. The bank’s cost-to-income ratio improved as operating expenses grew slower than revenue. BVBank, PGBank, and ABBank reported even higher percentage gains, albeit from smaller bases.

Market Context

VPB closed at 27,000 VND on April 15, 2026, unchanged from the previous session, with volume of 9.5 million shares. CTG closed at 35,000 VND, also flat, on volume of 4.9 million shares. BVB closed at 13,000 VND on April 10, up 1.61%. The banking sector has been a key driver of the VN-Index in 2026, supported by strong credit growth and stable net interest margins. The Q1 earnings season confirms the sector’s fundamental strength, though valuation dispersion remains wide between large-cap and small-cap banks.

Strategic Significance

The Q1 results underscore the resilience of Vietnam’s banking sector amid a supportive macroeconomic environment. VPBank’s ability to grow loans by over 10% in a single quarter, while maintaining asset quality, highlights its competitive edge in SME and retail lending. VietinBank’s provision cost reduction suggests improving asset quality, which could further boost earnings if sustained. The outsized growth at smaller banks (BVBank, PGBank, ABBank) reflects their successful niche strategies or low-base effects. For long-term investors, the sector’s aggregate 14% profit growth provides a benchmark for full-year expectations, though concentration risk remains as large banks dominate earnings.

What to Watch

• Q2 2026 credit growth data from the State Bank of Vietnam (SBV) to gauge sector momentum.
• VPBank’s full-year profit target of 41,000 billion VND and its progress toward that goal.
• VietinBank’s provision cost trajectory, especially if credit quality improves further.
• BVBank, PGBank, and ABBank’s ability to sustain high growth rates in subsequent quarters.
• Any regulatory changes to lending caps or capital adequacy requirements that could impact bank profitability.