Banks poised for Q3 profit growth amid margin pressure
Many banks are forecast to continue growing profits in the third quarter of 2026 supported by credit expansion However rising funding costs and narrowing net interest margins are putting pressure on the earnings outlook for some lenders
Nam A Bank disclosed its financial results for the first three months of 2026, revealing a pre-tax profit of over $188 million, which marked a 25% increase compared to the same period last year. The bank's total assets stood at approximately $18.6 billion, with a return on equity of nearly 20% and non-interest income contributing 26% to total operating income.
Trading in valuable papers saw a 30% year-on-year growth, accounting for 5% of pre-tax profit. As of September 30, the bank's funds mobilized from various sources amounted to nearly $10.16 billion, up almost 20% from the end of 2025. Credit expansion remained a significant factor in the bank's profitability, with total outstanding credit rising by 10.8% year-on-year.
The bank's management had set a full-year 2026 pre-tax profit target of $248 million, and they had already achieved nearly 80% of their goal. Analysts' forecasts for Q3/2026 indicate that several securities companies expect prominent banking stocks to post high profit growth, primarily driven by credit growth and improved business performance.
VPBank is projected to continue its profit growth trajectory, supported by credit expansion and strong deposit mobilization. Several securities firms forecast VPBank's Q3 pre-tax profit to exceed $400 million, with VCBS predicting $430.8 million, a 18% year-on-year increase. MBS anticipates a 19.1% year-on-year increase in combined profits of listed banks under its observation, with state-owned banks expected to be the primary growth drivers due to lower funding costs and reduced provisioning pressure.
Vietcombank is anticipated to remain the most profitable bank in the sector in Q3/2026, potentially posting after-tax profits of $466.1 million, up more than 29% year-on-year. Other private-sector banks like HDBank are also expected to record strong profit growth, with non-interest income improvement also forecasted. Despite overall positive outlooks, some banks, such as Sacombank, LPBank, and Eximbank, may experience declines in profit due to higher loan-loss provisioning costs and narrowing net interest margins.
Credit growth of around 12% in the first nine months of 2026 has been a key factor in supporting earnings across the banking sector.
Written by urgent.news from Vietnam Investment Review's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
