Banks demonstrate robust first-half performances driven by expanded credit and reduced expenses
The Vietnamese banking sector is experiencing a robust growth in the first half of 2025, with profit growth primarily driven by credit recovery, improved asset quality, and increased non-interest income.
Economic Context and Sector Trends
Vietnam's economy expanded by 7.52% in H1 2025, primarily driven by the services and manufacturing sectors. This growth supports the banking sector's growth, as evidenced by the credit expansion and profit growth reported by various banks.
Key Players in the Vietnamese Banking Sector
VietinBank
VietinBank, one of Vietnam's largest banks, reported a credit growth of 10% compared to the end of 2024, and mobilised capital up by approximately 9%. The bank's first-half pre-tax profit reached $36.8 million, up 67% year-on-year. By the end of Q2, VietinBank's total assets stood at over $84 billion, up 1.8% from the end of 2024.
Vietcombank
Vietcombank's total credit extended rose by more than 5%, and the credit structure of the bank continues to shift towards sustainable and high-quality lending. The bank's total assets estimated at over $84 billion, up 1.8% from the end of 2024.
Other Notable Banks
- Forecasts suggest a strong Q2 profit growth of 16% for VietinBank.
- Specific profit growth figures for Agribank and Vietcombank for H1 2025 are not mentioned in the search results, but they are part of the broader sector trends.
- Techcombank reported a profit after tax of $472.75 million, a 1.48% decrease from H1 2024, with net interest income down 3%.
- NCB (National Citizen Commercial Joint Stock Bank) achieved a significant increase in profit, with a net interest income surge of 155%.
Other Developments in the Sector
- KienlongBank, TPBank, and Nam A Bank, while not providing specific financial performance data for H1 2025 in the provided search results, would likely benefit from the overall sector trends of improved credit conditions and increased non-interest income.
- By the end of Q2, KienlongBank's total assets stood at $3.9 billion, up 5.9% from the start of the year. The bank recorded a consolidated pre-tax profit of approximately $22.6 million in Q2, marking a 67.2% jump year-on-year. Customer deposits at KienlongBank reached $2.93 billion, surging 15.2% in the first half of 2025.
- TPBank's growth was attributed to credit expansion of nearly 11.7%, focused on retail banking, controlled real estate lending, and consumer finance. The bank's estimated pre-tax profit exceeded $164 million, up more than 12% year-on-year.
- As of the end of June, Nam A Bank's total assets approximated $12.6 billion, reflecting over 30% growth since the beginning of the year. The bank posted over $100 million in pre-tax profit in the first half of 2025, a 14% increase compared to the same period last year.
Central Bank's Role and Future Projections
The central bank will continue to carefully manage the credit room to strike a balance between inflation control and economic stimulus. Pham Chi Quang, director of the SBV's Monetary Policy Department, projects that credit growth could exceed the 16% target set for 2025. New National Assembly legalisation provides banks with new tools to reduce risk provisions, narrow profit gaps, and sustain earnings.
Other Sector Highlights
- The non-life insurance sector saw a strong start to 2025, with many companies reporting impressive revenue and profit growth despite looming market challenges.
- Vietnam's leather and footwear industry posted more than $14 billion in total export value in the first six months of the year.
- Vietnam's industrial production surged 9.2% in the first half of 2025.
In conclusion, the Vietnamese banking sector is witnessing a significant growth in the first half of 2025, with key players like VietinBank, Vietcombank, and others reporting impressive profit growth. The sector is expected to continue its growth trajectory, with the central bank carefully managing credit to maintain economic stability.
The growth in the Vietnamese banking sector is not limited to credit expansion and profit growth reported by major banks like VietinBank and Vietcombank. Other notable banks, such as KienlongBank, TPBank, and Nam A Bank, are also likely to benefit from the sector's trends of improved credit conditions and increased non-interest income.
In the broader context of the Vietnamese economy, the finance and business sectors, including the banking sector, are expected to thrive, given the robust expansion of the services and manufacturing sectors and the central bank's strategic credit management approach.
