Banking Sector 4Q25 Results Update: PBT Grows 19% YoY Amid Peak Credit Expansion, NIM Stabilization, and Lowest NPL Since 2022
• Sector-wide PBT reached VND 97 trillion in 4Q25 (+19% YoY, +11% QoQ), with full-year 2025 PBT amounting to VND 356 trillion (+19% YoY). Primary growth drivers included strong credit expansion fueling net interest income (+15% YoY), resilient non-interest income (particularly service fee income +25% YoY, led by bancassurance and securities/investment banking fees at major joint-stock banks), and record off-balance-sheet bad debt recoveries exceeding VND 23 trillion in Q4 (+58% YoY, more than double QoQ). Operating expenses were tightly controlled (+7% YoY in Q4; full-year CIR improved to 32.1% from 33.6% in 2024), despite a 23% YoY increase in credit loss provisions to reinforce the coverage ratio above 101%.• Credit Growth Reaches Multi-Year High, Deposit Growth Accelerates: Full-year credit growth from listed banks stood at 19.5% (outstanding loans of VND 14.4 quadrillion), with medium- and long-term lending growing strongly (+26–27% YTD) amid recovering demand in infrastructure, real estate, fixed-asset investment, and consumption. Deposit growth improved to 16.8% for the year (customer deposits +15.0%, valuable papers +32.7%), supported by widespread deposit rate increases starting from 3Q25 to address year-end liquidity pressures, although still trailing credit expansion.
• NIM Stabilizes with Modest QoQ Recovery: 4Q25 NIM held steady at 3.1% (flat versus 9M25, up 10 bps QoQ), breaking the downward trend observed since 2023. This stabilization was driven by flexible repricing of lending rates to partially offset rising funding costs, despite an approximate 20 bps YoY compression for the full year amid intense credit competition and accommodative lending rates to support economic growth.
• Significant Improvement in Asset Quality: The non-performing loan (NPL) ratio declined to 1.84%, with Group 2 loans falling to 1.15%—both the lowest levels since 2022—supported by dilution from strong credit growth, aggressive write-off (VND 48 trillion processed in Q4), favorable macroeconomic conditions (particularly in real estate and exports), and the legalization of Resolution 42 from October 2025, which significantly enhanced off-balance-sheet bad debt recovery efforts. The loan loss reserve coverage ratio (LLR) exceeded 100%, bolstered by increased provisioning.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.