Nam A Bank Q1 2026: Optimizing capital efficiency and strengthening risk management

Nam A Bank reported positive growth in the first quarter of 2026, with pre-tax profit reaching over VND 1,620 billion, up 32.5% year-on-year. The bank’s return on equity (ROE) exceeded 21% and its cost-to-income ratio (CIR) was tightly controlled at 39.2%, alongside improvements in operating efficiency and asset quality.

Profitability and earnings efficiency

In the first three months of 2026, Nam A Bank’s pre-tax profit was over VND 1,620 billion, up 32.5% year-on-year. ROE rose to 21.5% (top 6 banks based on 2025 ROE among listed banks), compared with 19.3% in the same period, while return on assets (ROA) increased to 1.3%.

The bank attributed earnings growth to diversifying income sources, reducing reliance on traditional lending, and improving operating efficiency. Service profit reached VND 147 billion, up 16%, while profit from trading securities reached VND 90 billion, up 4.6 times year-on-year. Nam A Bank also managed credit risk provisioning to support prudent risk management and optimize operating efficiency.

Capital restructuring and lending activity

As of 31/03/2026, Nam A Bank’s total assets were around VND 410,000 billion, up 56% year-on-year. Total deposits from economic entities, individuals, and issued instruments reached over VND 217,000 billion, up more than 7.2% year-on-year.

On the lending side, the bank extended more than VND 201,000 billion in loans, up 13.1% year-on-year. Growth focused on manufacturing, seafood, and non-property real estate enterprises, while the bank reduced the share of real estate lending in line with State Bank of Vietnam (SBV) guidance. Total holdings of government bonds and credit instruments issued by credit institutions reached over VND 46,000 billion, up 80% year-on-year.

International cooperation for inclusive and sustainable finance

On 31/03, Nam A Bank expanded cooperation with BlueOrchard by receiving an additional USD 20 million. This is the first step in a planned package of up to USD 40 million to promote inclusive finance for Vietnamese small and medium-sized enterprises.

Nam A Bank also signed a cooperation with IFC. In March, it joined IFC’s Global Trade Finance Program (GTFP), under which IFC plans to implement a USD 50 million trade finance facility for the bank. In parallel, Nam A Bank coordinated with Proparco to promote green finance mobilization, expected at USD 30 million. The bank said these activities mark a milestone in internationalizing sustainable funding for Vietnam.

Asset quality control and cost optimization

In Q1, asset quality improved. The non-performing loan (NPL) ratio (before CIC) fell to 1.63%, compared with 2.1% in the same period, moving toward a group of banks with strong asset quality. NPL 2 (before CIC) decreased by 67.9% to 0.52% of total loans.

The bank focused resources on debt collection and recovery, particularly for loans with solid collateral and market liquidity. It also increased the loan loss reserve (LLR) coverage ratio to around 57%, continuing toward a target of 75%-80% for top banks to strengthen resilience to market fluctuations. The CIR remained at 39.2% due to cost optimization through digital transformation.

Liquidity and capital adequacy

Liquidity reserve ratio exceeded 22%, reflecting a relatively cautious risk appetite compared with SBV’s minimum requirement of 10%. The capital adequacy ratio (CAR) stayed at 10.5%, above the regulator’s minimum 8% per SBV, and the bank said it continues to meet Basel III standards and comply with Circular 14/2025/TT-NHNN.

Planned capital expansion and new international presence

At its 2026 annual general meeting, Nam A Bank approved a plan to increase charter capital by more than VND 5.431 trillion, to be implemented in Q2 and Q3/2026 through three channels: (i) a share issue from retained earnings, expected to issue over 343.1 million shares (20%), corresponding to more than VND 3.431 trillion; (ii) an ESOP share issue of 100 million shares, adding VND 1.0 trillion; and (iii) a private placement of 100 million shares, adding another VND 1.0 trillion.

The bank said the additional capital will strengthen its financial capacity, support safety indicators aligned with international standards, and boost technology infrastructure and network expansion.

The AGM also approved plans to establish a 100% domestic, single-member limited liability commercial bank operating at VIFC. The bank said the presence at the international financial center will help it access and mobilize international capital, diversify financial products and services for cross-border clients, and enhance competitiveness domestically and internationally.