Real estate and retail drive Q3 profit surge

Real estate and retail drive Q3 profit surge

Real estate companies have spearheaded third-quarter earnings growth, while basic resources and retail also delivered strong gains, offsetting slower banking growth and declining IT profits.

According to FiinGroup's latest update on corporate earnings, as of October 30, 797 out of 1,518 listed companies and banks, representing 77 per cent of total market capitalisation, had released their financial statements or preliminary estimates of their third-quarter 2026 business results.

The latest update included several large-cap companies, such as Vingroup JSC, Vinhomes JSC, Vietcombank, Hoa Phat Group, Mobile World Investment Corporation, FPT Corporation, Viettel Global Investment JSC, SSI Securities Corporation and Vincom Retail JSC.

Accordingly, after-tax profit growth among reporting companies remained strong in the third quarter, rising 35.8 per cent on-year. Growth continued to be driven by non-financial companies, which posted a 65.5 per cent increase, while financial companies recorded growth of just 2.6 per cent.

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In the banking sector, the number of reporting institutions increased to 20 out of 28 banks, representing 63.7 per cent of the sector's market capitalisation, providing a clearer picture of earnings performance.

After-tax profit growth at these banks slowed to 14.1 per cent on-year after Vietcombank, the sector's largest bank by market capitalisation, reported virtually flat after-tax profit in Q3, up just 0.2 per cent, significantly below the 64.7 per cent growth recorded in Q2.

The results so far continue to highlight uneven profit growth across the banking sector, with many banks still facing pressure from credit risk provisioning expenses.

The most significant change in this latest update came from the real estate sector, where after-tax profits at 69 out of 127 companies surged 237.3 per cent on-year in Q3.

Vinhomes alone reported Q3 after-tax profit reaching $920 million, up 419 per cent from a year earlier, driven by revenue from property handovers and recognition from major projects such as Vinhomes Green Paradise, Global Gate Halong and Ocean Park 2-3.

Another emerging bright spot was basic resources, where the sector's aggregate after-tax profit increased 157.4 per cent from Q3 of last year. Steel major Hoa Phat Group reported Q3 after-tax profit of $330.6 million, up 106 per cent, while revenue rose 70 per cent. Its nine-month profit had already exceeded its full-year target.

Retail also emerged as one of the sectors with the highest reporting coverage, with 17 out of 27 companies having disclosed their results, representing 95.2 per cent of the sector's market capitalisation.

Their after-tax profits rose 89.6 per cent. Fresh momentum came from Mobile World Investment Corporation (MWG), whose Q3 after-tax profit increased 97.4 per cent on-year, while FPT Retail posted growth of more than 110 per cent.

MWG grocery retail chain Bach Hoa Xanh continued to improve operational efficiency and returned a profit in Q3, helping lift consolidated after-tax profit to a new high.

In contrast, IT companies, which now account for nearly 90 per cent of the sector's market capitalisation, recorded a 6.9 per cent decline on-year in after-tax profit. FPT, the dominant company in terms of sector market capitalisation, reported a Q3 after-tax profit decrease of approximately 5.9 per cent.

FiinGroup noted that share price movements indicate that the market had already priced in part of the earnings outlook ahead of companies' official announcements.

Over the past month, several sectors with positive Q3 earnings results bucked the broader market's downward trend and continued to gain, notably basic resources, up 6.1 per cent, primarily driven by Steel, followed by real estate, up 1.1 per cent, and retail, up 0.3 per cent.

This trend suggests that capital flows had shifted early into certain sectors with improving earnings prospects, although the extent to which these expectations had been priced in varied across sectors.

VIR