VPB 1H 2025 BUSINESS RESULTS UPDATE

UPDATE ON BUSINESS OPERATIONS

In Q2 2025, VPBank delivered robust results, with 1H pre‐tax profit of VND 11,229 billion—a 29.5% YoY increase—driven by strong credit growth and lower provisioning charges. Consolidated loans reached VND 842,354 billion (+18.6% YTD), the highest in the sector, led by secured retail mortgage and SME lending, which effectively mitigated credit risk. Deposits also expanded sharply (+23.8% YTD), with CASA up 39.5% YoY—approaching VND 100 trillion for the first time—helping to reduce funding costs. Although NIM compressed to 5.45% due to a shift toward lower‐risk lending segments, VPBank still ranks among the top banks for NIM on a consolidated basis. Asset quality improved markedly, with the NPL ratio falling to 3.97%, while an LDR of 80.2% indicates substantial room for further loan growth in H2, especially amid expectations of loosened credit quotas in a more accommodative monetary policy environment.

ASSESSMENT

We maintain a WATCHLIST recommendation on VPB shares following its sharp 74.9% rally over the past three months, and we commend the bank’s effective “controlled‐growth” strategy. As industry‐wide credit enters a recovery cycle, VPBank stands out for its disciplined loan expansion, strong CASA growth, solid asset quality, and robust capital‐and‐liquidity position—key foundations for sustainable profit growth over the medium to long term.