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VPBank (VPB VN) – 9M 2025 – Net Income Surges 43.6% on Strong Credit Growth
Summary of 9M 2025 results and outlook of VPBank (VPB VN)
- Net income surged 43.6% y/y, as credit expand at doubled the market pace. Total credit grew 39.5% y/y, supported by broad-based growth across both corporate and retail segments. A large part of this growth was driven by strong activity in capital market–related and asset-based lending, though there was also robust growth reflecting genuine improvement in business and consumer demand. Net interest margin (NIM) contracted by 50bps, consistent with the sector trend amid a sustained low lending rate environment. Net fee income (NFI) increased 7.6% y/y, reversing the decline trend in H1/2025 thanks to a sharp rise in investment banking (IB) fees and continued solid growth in bancassurance fees (+13.5% y/y). As the bank resumed strong business expansion, operating expenses increased by 5% y/y; however, the cost-to-income ratio (CIR) stayed at a market-leading 24.3%. Improved asset quality was another key earnings driver, as the sharp decline in NPL and group-2 loan ratio facilitate a 88bps drop in the net credit cost ratio.
- IPO of the securities brokerage arm VPBank Securities JSC (VPBS) at a 4bn valuation. In September, the company announced plans to offer 375mn shares, equivalent to a 20% post-IPO stake. The IPO progressed swiftly, with the State Securities Commission granting approval in early October, followed by a subscription period from 10 to 31 October and a target listing in December. Following the IPO, the company is expected to rank among the top three in the sector by capital base and is well positioned to capture the immense growth potential of Vietnam’s capital market, leveraging VPB’s extensive financial ecosystem with over 32mn customers.
- Q4/2025 net income is projected to rise and maintain strong momentum. We anticipate credit growth to remain robust, while NIM continue to face pressure as funding costs increase amid heightened competition. Provision expenses are expected to ease further, reflecting continued improvement in asset quality.
- 2026F net profit growth is expected to remain strong. With anticipated continued acceleration of economic activities and a strengthened credit portfolio foundation, VPB is projected to deliver robust credit growth year-over-year, supported by a catch-up in retail lending demand, while expecting a more normalized pace in investment-driven segments. NFI is expected to moderate slightly after substantial IB fee recognition in 2025, though bancassurance, should maintain solid momentum. A more conservative credit mix and favorable macroeconomic conditions are likely to keep provisioning costs stable, supporting sustained bottom-line growth.
Interested in VPB? Click here to read more of our previous analysis on VPB’s quarterly earnings.
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