VIB reports nearly $294 million pre-tax profit in first nine months

VIB reports nearly $294 million pre-tax profit in first nine months

On October 28, Vietnam International Bank (VIB) announced its business results for the first nine months of 2026, reporting profit before tax of nearly VND 7.6 trillion ($294 million), up 8 per cent on-year.

Total operating income rose 18 per cent, while operating expenses fell 2 per cent, reflecting positive progress in operating efficiency. As of end-September 2026, VIB's total assets reached nearly $23.22 billion, up 8 per cent from the beginning of the year, while prudential ratios were maintained within regulatory limits.

Credit growth of 8 per cent

As of 30 September 2026, VIB's total assets reached nearly $23.22 billion, up 8 per cent year-to-date. Credit outstanding exceeded $15.9 billion, up 8 per cent, providing a foundation for further lending growth in the final quarter. The loan book remains well diversified: retail and small and medium-sized enterprise customers account for 66 per cent of total credit, while corporate customers and financial institutions account for 34 per cent.

In line with the policy direction of the government and the State Bank of Vietnam, VIB has taken proactive steps to lower borrowing costs for individuals and businesses. The bank has reduced deposit rates by up to 0.5 percentage points per annum, mainly for terms longer than six months, while improving operating efficiency and optimising costs to create further room to lower lending rates.

In lending, VIB has launched a $580.5 million preferential credit package for businesses, with interest rate reductions of up to 1.5 percentage points per annum, focused on priority sectors such as supporting industries, public investment, renewable energy, and exports. For individual customers, the bank continues to expand flexible lending solutions with competitive rates and long-term fixed-rate options. VIB has cut home loan rates by a further 1 percentage point per annum in selected areas, offers home loans with fixed-rate periods of up to five years, and has launched a $193.5 million car loan package with a fixed rate for the first 24 months and an interest rate cap thereafter.

These solutions help lower borrowing costs, support the production and business activities of enterprises, and enable individual customers to plan their finances over the long term.

Customer deposits up 9 per cent

Alongside credit growth, VIB continued to strengthen its funding base, enhancing stability and diversifying its funding structure to support medium- and long-term growth. As of end-September 2026, customer deposits exceeded $12.4 billion, up 9 per cent from the beginning of the year and outpacing credit growth. Current account savings account and foreign currency deposits accounted for 19 per cent of total customer deposits, helping to diversify the deposit mix and optimise funding costs.

In addition to domestic funding, VIB is expanding its access to international capital markets, with a plan to raise around $1 billion in medium- and long-term funding in 2026 to diversify its funding sources and deepen partnerships with international financial institutions.

Photo: VIB

As part of this plan, on October 5, VIB completed a $285 million three-year syndicated loan from nine financial institutions in Singapore, Malaysia, Taiwan, and Hong Kong. Notably, the cost of funds is approximately 30 basis points lower than that of the bank's previous syndicated loan, adding competitively priced medium-term funding and strengthening VIB's funding management.

Income up 18 per cent, expenses down 2 per cent

For the first nine months of 2026, VIB's total operating income exceeded $669.5 million, up 18 per cent on-year. Net interest income exceeded $510.1 million, while non-interest income contributed 23 per cent of total operating income.

A key highlight of the nine-month results was the improvement in operating efficiency. While total operating income grew at a double-digit rate, operating expenses decreased 2 per cent on-year to over $205.1 million. This reflects effective cost control, resource optimisation, and higher productivity.

Alongside income growth and cost control, VIB maintained a prudent approach to credit risk management. In the first nine months, the bank recorded over $166.4 million in credit loss provisions, actively building buffers against potential risks. The non-performing loan ratio was well managed at 2.29 per cent.

After provisions, VIB's profit before tax for the first nine months reached nearly $292.3 million, up 8 per cent on-year. Return on equity was 16.2 per cent.

These results demonstrate that VIB continues to sustain profit growth while improving operating efficiency and maintaining a focus on risk management, strengthening a foundation for the next phases of growth.

VIB's financial foundation was further strengthened, with prudential ratios maintained within regulatory limits. The capital adequacy ratio under Basel III Standardised Approach was above 11 per cent (minimum: 8 per cent). The loan-to-deposit ratio stood at 77 per cent (maximum: 85 per cent), and the ratio of short-term funding used for medium- and long-term lending was 20 per cent (maximum: 40 per cent). The net stable funding ratio under Basel III was 102 per cent.

Maintaining capital and liquidity ratios at appropriate levels gives VIB greater flexibility in balance sheet management while creating room to support credit growth and business development.

Retail banking position reinforced, with significant contribution to the state budget

Beyond its financial results, VIB's retail banking capabilities continued to receive domestic and international recognition. In early October 2026, VIB was named “Outstanding Retail Bank 2026” at the Vietnam Banking Awards.

Photo: VIB

In credit cards, VIB reinforced its leadership in innovation and personalised customer experience: Max Card was recognised by Vietnam Records as the first credit card in Vietnam that allows customers to choose their own membership tier based on their needs, and VIB One Card received the “Most Innovative Personalised Credit Card – VIB One Card – Vietnam 2026” award from International Finance (UK). VIB Privilege Banking was also named “Most Innovative Privilege Banking – Vietnam 2026” by Global Business Outlook.

Alongside its business activities, VIB continues to make a significant contribution to the state budget. In 2025, the bank paid $104.5 million, bringing its total contribution for 2017–2025 to over $665.9 million. In recognition, VIB was named among the Top 25 largest private-sector taxpayers in Vietnam at VNTAX 2026, the third consecutive year the bank has received this recognition.

Strengthening the foundation for growth, ready for VIB 3.0

VIB's results for the first nine months of 2026 reflect a balanced development strategy combining business growth, higher operating efficiency, and a sound financial foundation. With an increasingly diversified funding structure and improved risk management and operational efficiency, the bank continues to strengthen its competitiveness. This provides an important foundation for VIB to enter its VIB 3.0 development phase, which aims to strengthen governance, optimise its operating model, expand the application of technology, data, and AI, and keep customers at the centre of its business and service development.

On this foundation, VIB aims to improve capital efficiency, productivity, and customer experience, driving its next growth cycle. At the same time, the bank will continue to support businesses and individuals with suitable financial solutions, contributing to production, business activity, and Vietnam's economic growth.

VIR