Financial statements for the third quarter (Q3 released by credit institutions show that sector-wide profitability remains upbeat, supported by a strong credit rebound and a surge in non-interest income.
By the end of Q3, credit growth in the economy was estimated at 13.4 per cent compared to the start of the year at approximately $708 billion, up around 20 per cent from the same period in 2024, marking a notable improvement amid persistently low policy rates.
A striking highlight is the sharp expansion of real estate business credit, which emerged as the largest growth driver.
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By the end of Q3, outstanding loans to this segment had exceeded $72 billion, up 25.4 per cent from the beginning of the year and 36.7 per cent on-year, raising its share to 10.4 per cent of total system-wide credit and setting an all-time high.
In the context of continued monetary easing and the resurgence of the real estate market in both prices and transaction volume, banks with high exposure to developer lending, such as Techcombank (ticker TCB), VPBank (VPB), SHB, and HDBank (HDB), were among the clear beneficiaries, leading the sector in loan book expansion.
VPBank stands out with standalone credit growth of 29 per cent compared to the outset of the year, with full-year growth expected to reach about 35 per cent, marking a historic peak not only for the bank but also for the entire sector.
Meanwhile, state-owned lenders Vietcombank, BIDV, VietinBank, and Agribank continue to play a pillar role, benefiting from the government's acceleration of public investment and infrastructure disbursement, both of which have strong spillover effects on credit growth and bank profitability.
Speaking with VIR, Le Hoai An, founder of Integrated Financial Solutions JSC and a senior banking expert, said that amid frantic credit expansion during the first nine months of the year, maintaining stable asset quality remained a critical foundation supporting smooth capital flows.
According to Q3 financial statements, total non-performing loans (NPLs) among listed banks rose $10.96 billion, up 2 per cent on-quarter and 8.1 per cent on-year, yet at a notably slower pace than from 2022-2024.
"Bad debt ratios rose sharply in the transition period from late 2024 to Q1,2025 after the loan restructuring circular expired, but they gradually declined over subsequent quarters. By Q3, the NPL ratio stood at 2.01 per cent, still higher than the five-year average of around 1.84 per cent, but reflecting an improving trend following the stress period of bad debt and corporate bonds since 2023. This factor is expected to continue supporting banks' profit growth," An said.
Beyond credit expansion, non-interest income also emerged as a bright spot in banks' profit structures. According to SSI research results, banks' non-interest income in Q3 grew sharply, driven by a 23 per cent on-year rise in foreign exchange trading and gains from securities activities.
The strong performance of the stock market, with the VN-Index hitting a new high, boosted brokerage, proprietary trading, and margin lending at securities firms within banking ecosystems to record levels.
As a result, income from securities trading and investment at banks increased 33-fold year-on-year, making a significant contribution to sector-wide profit growth.
The trend towards strengthening non-interest income highlights banks' efforts to shift their income structures.
Many banks are expanding their service ecosystems, focusing on fee-based income and cross-selling. A notable direction is the establishment of in-house life insurance companies, an increasingly important component of the retail banking value chain.
VPBankS has announced its medium-term strategy for 2026-2030, emphasising digital technology, AI, and new business models in finance.
One key highlight of the strategy is a plan to closely collaborate with VPBank and strategic partners to develop a blockchain platform, participate in digital asset exchanges, and consider investments in peer-to-peer lending platforms and commodity exchanges.
This move is expected to help VPBankS stay ahead of financial digitisation trends, broaden its product portfolio, and strengthen its ability to adapt to global market shifts.
Earlier, Dunamu announced its plan to partner with Military Bank (MB) to launch Vietnam's first domestic digital asset exchange.
Under the MoU signed by the two parties, Dunamu will become a key strategic partner of MB, sharing technology and infrastructure while providing advisory support on regulatory compliance, investor protection, and human-resource development.
Analysts note that banking stocks remain an attractive option in the near term thanks to banks' ability to expand their ecosystems and flexibly enter new business segments.
These stocks also benefit from competitive advantages such as strong cross-selling capabilities, specialised customer bases, and robust capital buffers (CAR), which still have room to improve through strong profit growth or potential issuances to foreign investors and strategic shareholders. Particularly, current valuations are appealing for continued investor interest.
