Momentum for VIB

After a challenging period in 2024–2025 marked by declining profitability indicators and asset quality pressures, VIB is entering a new cycle with a growth strategy centered on efficiency.

Cautious results in 2025

According to VIB’s 2025 financial statements, total operating income exceeded VND 20 trillion. Revenue sources became more diversified, with non-interest income reaching over VND 3.9 trillion, up 3% year-on-year and accounting for nearly 20% of total operating income. Net service income surpassed VND 2.1 trillion, rising 19% from the previous year. Profit before tax reached more than VND 9.104 trillion, up 1% year-on-year.

Key prudential ratios remained at optimal levels. The Basel II capital adequacy ratio (CAR) stood at 11.3% (regulatory requirement: ≥8%), the loan-to-deposit ratio (LDR) was 78% (regulatory cap: ≤85%), the short-term funding ratio for medium- and long-term lending was 26% (regulatory cap: ≤30%), and the Basel III net stable funding ratio (NSFR) reached 104% (Basel III requirement: ≥100%).

Notably, VIB is among the first Vietnamese banks to complete the three pillars of Basel II, publish financial reports under IFRS, and continue to be selected by the State Bank of Vietnam to participate in the steering committee for Basel III implementation.

In December 2025, VIB completed its capital calculation system and Basel III governance framework under the standardized approach stipulated in Circular 14/2025/TT-NHNN. This milestone demonstrates the bank’s readiness as the banking system transitions to new regulatory standards. While many banks still require time to fully comply with the circular—given the need to upgrade IT systems, standardize data, and reassess credit portfolios to recalculate risk-weighted assets—VIB has already completed these preparations, positioning itself to accelerate business growth.

Commenting on VIB’s cautious business performance, analysts from VDSC noted that credit growth was limited to 17.7%, compared with 21.5% in 2024. In addition, foreign exchange trading posted a loss of VND 154 billion, while gains from investment securities trading dropped 68%, dragging down total non-interest income.

In terms of asset quality, VIB’s non-performing loan (NPL) ratio fell sharply from above 3.5% at the end of 2024 to around 3% by the end of 2025. However, despite this improvement, the bank’s NPL coverage ratio remained relatively low at 43% as of year-end 2025. This remains an area for further improvement as VIB enters its next phase of development, alongside adjustments to its lending portfolio structure.

Shifting the lending portfolio

In 2025, VIB introduced several adjustments to its funding and lending structure. The bank continued to lead in product innovation, with deposits from both individual and corporate customers rising 10% to nearly VND 306 trillion.

Notably, CASA balances and the “Super Yield” account increased by 27% compared with the beginning of the year. This reflects the effectiveness of VIB’s strategy to optimize idle cash flows through a solution combining the “Super Yield” account with the cashback Smart Card payment card, under the message “Leading the yield trend.” The solution allows customers to maximize the value of both idle funds and spending, with combined benefits reaching up to 9.3%.

According to VIB, within its diversified revenue structure, major contributions come from two key retail services: credit cards and insurance. By the end of 2025, VIB officially joined the “million-card club,” with more than 1.1 million credit cards in circulation, up 29% from the beginning of the year. Card spending reached USD 5 billion, up 10% year-on-year.

On the lending side, VIB has begun reshaping its loan portfolio structure. According to Mirae Asset Securities, the proportion of retail lending declined from 72.1% to 60.4% by the end of 2025. This ratio is expected to remain around 60% as increased public investment spending supports a recovery in consumer demand.

At the same time, VIB targets credit growth of 15–20% in 2026. The main driver will come from the corporate segment, which is projected to grow by 32%, while the retail portfolio is expected to expand by about 9%. The bank also plans to mobilize USD 1 billion in foreign capital in 2026 to optimize funding costs.

The shift in lending structure—aligned with the evolving economic context and supported by VIB’s established financial, data, and technology foundations—is expected to become a new growth engine for the bank.

Financial institutions forecast VIB’s profit before tax in 2026 to reach VND 11.3 trillion, up 24% from 2025. With projected return on equity (ROE) of 18%, VDSC has set a target price for VIB shares at VND 20,000 per share, implying an expected return of 23% including dividends.

Meanwhile, Mirae Asset offers a more optimistic outlook, forecasting VIB’s 2026 profit before tax at VND 12.437 trillion, up 36.6%. The firm has also raised its target price for VIB shares to VND 23,000, based on the view that the stock is currently trading at a deep discount following a period of strategic repositioning.

Ahead of the 2026 Annual General Meeting of Shareholders, clear signs of recovery—reflected in improved cost control and asset quality, along with a strategic shift toward corporate clients and the utilization of floating interest rates—are expected to act as key levers enabling the bank to regain growth momentum in 2026–2027. Investors are also anticipating VIB’s next phase of expansion after a period of strong brand positioning and close partnerships with Australian partners, as the bank enters a new growth cycle prioritizing depth and efficiency.