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VPBank (VPB VN) – Q4 2025 – Strong Credit Growth and Successful VPX IPO
Summary of FY 2025 results and outlook of VPBank (VPB VN)
- Net income surged 0% y/y, bolstered by accelerated credit expansion alongside solid performance across diversified income streams. Total credit expanded 35.3% y/y, led by robust corporate lending, while the retail segment started catching up in the 4th quarter. By economic sector, credit growth was broadly distributed across real estate, hospitality, trading, financial services, manufacturing, as well as consumer finance and mortgages. Net interest margin (NIM) narrowed by 34 bps, in line with sector-wide trends under a prolonged low-lending-rate environment. However, lending rates picked up toward year-end amid strong credit demand, supporting a swift NIM recovery in Q4/2025. Net fee income (NFI) rose 21.0% y/y, thanks to a sharp rise in investment banking (IB) fees and continued solid growth in bancassurance fees (+21.2% y/y). As the bank return to strong business expansion, operating expenses increased by 29.9% y/y, yet the cost-to-income ratio (CIR) stayed at a market-leading 25.0%. Strengthened asset quality was another key earnings driver, as the sharp decline in NPL and loan group-2 facilitate a 135bps drop in the net credit cost ratio.
- Successful IPO of VPX raised substantial capital for business expansion. In November the bank’s securities brokerage arm successfully completed its IPO, raising USD 485mn at a USD 2.5bn valuation. Post-listing VPB retained a 80.0% stake in VPX.
- Strategic access to international capital markets positions VPB to sustain superior growth. Offshore funding is becoming a major source fueling the bank’s expansion. In 2025, the bank secured several record-size international syndicated loans, led by its strategic investor Sumitomo Mitsui Banking Corporation (SMBC), bringing total offshore mobilization to nearly USD2.4bn, strengthening its liquidity position and support a more favorable funding costs as USD rates continue to decline.
- 2026F net profit is projected to be supported by accelerating economic activity and a strengthened credit portfolio, VPB is expected to deliver solid credit growth of 19.9% y/y. This outlook is bolstered by continued strong corporate credit demand and a catch-up in retail lending, while investment-driven segments are expected to normalize. NIM is forecast to recover from its 2025 low as lending rates started rising meaningfully amid sustained credit demand. NFI is expected to moderate following substantial IB fee recognition in 2025, although bancassurance income should maintain steady momentum. A more conservative credit mix, together with supportive macroeconomic conditions, is likely to keep provisioning costs stable.
Interested in VPB? Click here to read more of our previous analysis on VPB’s quarterly earnings.
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