VPB – Q4-2025 Business Results Update: Profit Growth Exceeds Expectations with Stable Asset Quality
• VPB announced its 4Q25 business results with consolidated profit before tax (PBT) reaching VND 10.2 trillion (+12% QoQ and +66% YoY), exceeding our forecast (VND 8.8 trillion) by 17%. This outperformance was driven by a significant surge in other income (primarily from recoveries of previously written-off bad debts) in 4Q24, amounting to over VND 3 trillion (+31% YoY), alongside service revenue that was 73% stronger than anticipated, while credit costs aligned with expectations.• Full-year 2025 consolidated PBT totaled VND 30.6 trillion (+53% YoY), surpassing our projection by 8%. This included PBT from the parent bank at VND 26.4 trillion (+44% YoY), VPX (including other comprehensive income) at over VND 4.7 trillion (nearly four times YoY), and FE Credit's PBT (pre-internal adjustments) at over VND 600 billion (+19% YoY).
• VPB's 4Q24 results exceeded expectations and demonstrated the bank's effective leverage of its competitive advantages, such as a high credit growth quota, a diverse financial services ecosystem (encompassing insurance, securities, and consumer finance), and synergies with favorable business and capital market conditions to deliver strong PBT growth. We also commend the improvement in profitability trend at VPB, coupled with stable asset quality control in 4Q24, alongside positive outcomes from bad debt recovery efforts following the legalization of Resolution 42's supportive legal framework. These factors are anticipated to recur in 2026. Accordingly, our current 2026 forecasts and target price (VND 33,300 per share) present upside potential for upward revision.
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.
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