HÀ NỘI — Vietnam Prosperity Joint Stock Commercial Bank (VPBank) on Wednesday held its 2026 Annual General Meeting of Shareholders, outlining a plan to achieve more than VNĐ41.3 trillion (US$1.6 billion) in pre-tax profit and to raise its charter capital to the highest level in the banking system.

CEO Nguyễn Đức Vinh said VPBank delivered its strongest results on record in 2025, exceeding multiple targets.

Consolidated pre-tax profit reached over VNĐ30.6 trillion, up 53 per cent year-on-year and 21 per cent above plan. Total assets rose 36.4 per cent to VNĐ1.26 quadrillion, making VPBank the largest private bank in Việt Nam by assets.

Total outstanding credit stood at over VNĐ961 trillion by the end of 2025, including VNĐ850 trillion at the parent bank, marking its fastest growth in recent years.

However, the bank acknowledged several areas for improvement, including a still-modest Current Account Savings Account (CASA) ratio, relatively high funding costs and slower-than-expected breakthroughs in retail banking compared to stronger corporate lending growth.

Based on 2025 results, VPBank proposed a total dividend payout of 31 per cent, including 5 per cent in cash (equivalent to nearly VNĐ4 trillion) and 26 per cent in shares.

The share issuance will increase the bank’s charter capital to VNĐ100 trillion, with implementation expected in the second and third quarters of 2026.

Ambitious 2026 targets

VPBank aims to set a new record in 2026, with consolidated pre-tax profit targeted at over VNĐ41.3 trillion, up 35 per cent.

Total assets are projected to reach VNĐ1.63 quadrillion, up 29 per cent. Customer deposits and valuable papers are expected to increase 40 per cent to over VNĐ1 quadrillion, while total credit is forecast to rise 34 per cent to nearly VNĐ1.3 quadrillion.

The bank targets keeping its standalone non-performing loan (NPL) ratio below 2.5 per cent.

Among subsidiaries, FE Credit is expected to post a 93 per cent profit increase, VPBank Securities (VPBankS) 44 per cent, and OPES Insurance 47 per cent.

VPBank plans to raise capital in two phases in 2026.

First, it will issue shares from equity capital at a ratio of over 26 per cent, lifting charter capital to VNĐ100 trillion.

In the second phase, the bank plans a private placement of more than 624 million shares to a foreign investor, which could increase charter capital to over VNĐ106.2 trillion. The proceeds will be used to support lending growth and enhance financial capacity.

Chairman Ngô Chí Dũng said the bank has attracted interest from foreign investors and is currently in detailed negotiations, though the offering price has yet to be disclosed.

Addressing shareholder concerns, CEO Vinh said market liquidity was relatively tight in the first quarter, pushing deposit rates to their highest levels in three years.

He expects interest rates to remain elevated in the short term before gradually easing toward late Q2 or early Q3, supported by regulatory efforts to stabilise the market.

VPBank has maintained relatively high deposit rates to support credit growth, accepting higher funding costs in the process. The bank has already begun to lower rates on selected tenors and plans further adjustments.

The NPL ratio stood at 2.03 per cent in 2025 and is expected to remain under control despite slight increases in certain retail segments, particularly micro-SME and household lending.

On net interest margin (NIM), VPBank expects a slight decline to around 4.4 per cent in 2026 from 4.53 per cent currently, due to higher funding costs. However, the bank maintains one of the highest NIM levels among commercial banks, supported by its strong presence in unsecured lending.

CEO Vinh said the 2026 plan marks the beginning of a new five-year cycle, with VPBank aiming to become a leading financial institution in Việt Nam and a key driver of sustainable economic growth.

At the meeting, shareholders approved all 18 proposals with a high level of consensus. — VNS