T&S Asset Management
Listen日本語

Four Vietnamese banks book interest faster than they collect cash as bad loans rise

Published Data as of VietnamCredit
Listen0:00

A one-minute summary read by an AI voice.

Key points

Implications for lenders

At these four banks cash interest received is falling relative to booked interest, with VPBank at 90.5%, so lenders in Vietnam may compare accrued interest with cash collected by segment and vintage, not just NPL ratios. Rising bad loans, such as Techcombank's NPL ratio of 1.36%, can lead banks to tighten wholesale lines, which may matter for non-bank lenders that fund through them.

Implications

ExecutivesTrack cash interest received alongside booked income; a falling ratio during fast loan growth can signal deferred credit problems before NPLs move.
InvestorsNine-month profit growth at these banks rests partly on accrued income; compare receivables growth with loan growth and coverage when reading Q4 results.
OperatorsReview accrued-interest ageing and restructured loans, as the SBV asks banks to control long-outstanding accrued interest.

Facts

Cash versus booked interest: The Investor compared cash interest received with interest income recognised in nine-month 2026 consolidated statements. The ratio fell at VPBank to 90.5% 1 (down from 93.57% a year earlier), at Techcombank to 94.46% 2 (down from 95.77% a year earlier), at ABBank to 86.54% 3 (down from 92.89% a year earlier) and at LPBank to 96.53% 4 (down from 102.33% a year earlier). The ratio is not a collection rate on interest that has fallen due; part of the gap reflects timing.

Receivables: interest and fee receivables rose +77% 5 at VPBank while its loans grew +28.4% 6; at ABBank receivables rose +130.5% 7 against loan growth of +18.2% 8.

Asset quality: Techcombank reported nine-month profit before tax of VND 28.9 trillion 9, up 23.7% year on year, while its NPL ratio rose to 1.36% 10, up from 1.15% at end-June 2026, with coverage of 107.0% 11; the bank attributed the rise mainly to a few individual loans outside its core segments. LPBank's NPL ratio was 1.87% 12, up from 1.68% at end-2025. VPBank's loans classified Group 3 to Group 5 were about VND 37.8 trillion 13, up 20.1% from the start of the year; down 0.8% from end-June. According to The Investor, the SBV's Official Dispatch No. 9608 also asks banks to tighten control of large, long-outstanding or potentially unrecoverable accrued interest.

Analysis

Sector context: across the banks in the FiinRatings sample, the NPL ratio was about 1.9% 14 in the first half, and NPL coverage was about 80% 15, lowest in five years. Credit to the economy grew 11.59% 16 in the first nine months, so loan books are expanding while the cash content of income is falling at these four banks.

Across the Mekong, six Thai banks reported third-quarter NPL ratios between 2.88% 17 and 3.4% 18. Vietnamese reported ratios remain lower, but they are rising from a low base during a phase of fast credit growth, whereas Thai lenders are working through slower growth and stretched households.

Counterpoints and uncertainties

The cash-to-income ratio mixes timing effects with credit problems, and The Investor stresses it is not a collection rate on interest due. Four banks are not the system: FiinRatings' sector NPL ratio and SBV system data for the third quarter are still to come. Techcombank's coverage of 107.0% remains above its NPLs, and banks may book recoveries in the fourth quarter.

Key figures

  1. VPBank cash interest received / interest income, 9M: 90.5% (down from 93.57% a year earlier). Cash interest received divided by interest income recognised, January–September 2026, consolidated statements; not a collection rate on interest due. Bank (consolidated). Basis date: 30 Sep 2026. Source: The Investor: Vietnam banks post strong profits, but cash interest collections lag (2026-10-23)
  2. Techcombank cash interest received / interest income, 9M: 94.46% (down from 95.77% a year earlier). Cash interest received divided by interest income recognised, January–September 2026, consolidated statements. Bank (consolidated). Basis date: 30 Sep 2026. Source: The Investor: Vietnam banks post strong profits, but cash interest collections lag (2026-10-23)
  3. ABBank cash interest received / interest income, 9M: 86.54% (down from 92.89% a year earlier). Cash interest received divided by interest income recognised, January–September 2026, consolidated statements. Bank (consolidated). Basis date: 30 Sep 2026. Source: The Investor: Vietnam banks post strong profits, but cash interest collections lag (2026-10-23)
  4. LPBank cash interest received / interest income, 9M: 96.53% (down from 102.33% a year earlier). Cash interest received divided by interest income recognised, January–September 2026, consolidated statements. Bank (consolidated). Basis date: 30 Sep 2026. Source: The Investor: Vietnam banks post strong profits, but cash interest collections lag (2026-10-23)
  5. VPBank interest and fee receivables growth, 9M: +77%. Change in interest and fee receivables on the balance sheet from end-2025 to 30 September 2026. Bank (consolidated). Basis date: 30 Sep 2026. Source: The Investor: Vietnam banks post strong profits, but cash interest collections lag (2026-10-23)
  6. VPBank outstanding loan growth, 9M: +28.4%. Change in outstanding customer loans from end-2025 to 30 September 2026. Bank (consolidated). Basis date: 30 Sep 2026. Source: The Investor: Vietnam banks post strong profits, but cash interest collections lag (2026-10-23)
  7. ABBank interest and fee receivables growth, 9M: +130.5%. Change in interest and fee receivables on the balance sheet from end-2025 to 30 September 2026. Bank (consolidated). Basis date: 30 Sep 2026. Source: The Investor: Vietnam banks post strong profits, but cash interest collections lag (2026-10-23)
  8. ABBank outstanding loan growth, 9M: +18.2%. Change in outstanding customer loans from end-2025 to 30 September 2026. Bank (consolidated). Basis date: 30 Sep 2026. Source: The Investor: Vietnam banks post strong profits, but cash interest collections lag (2026-10-23)
  9. Techcombank profit before tax, 9M 2026: VND 28.9 trillion (up 23.7% year on year). Consolidated profit before tax, January–September 2026. Bank (consolidated). Basis date: 30 Sep 2026. Source: Techcombank: 3Q26 results press release (Vietnamese, 2026-10-20)
  10. Techcombank NPL ratio: 1.36% (up from 1.15% at end-June 2026)
    The reported ratio includes the effect of reclassification using CIC data; the release states 1.26% excluding it.
    . Non-performing loans / total loans at 30 September 2026, as reported by the bank. Bank (consolidated). Basis date: 30 Sep 2026. Source: Techcombank: 3Q26 results press release (Vietnamese, 2026-10-20)
  11. Techcombank NPL coverage ratio: 107.0%. Loan-loss reserves / non-performing loans at 30 September 2026, as reported by the bank. Bank (consolidated). Basis date: 30 Sep 2026. Source: Techcombank: 3Q26 results press release (Vietnamese, 2026-10-20)
  12. LPBank NPL ratio: 1.87% (up from 1.68% at end-2025). Non-performing loans (Group 3 to Group 5) / total loans at 30 September 2026. Bank (consolidated). Basis date: 30 Sep 2026. Source: The Investor: Vietnam banks post strong profits, but cash interest collections lag (2026-10-23)
  13. VPBank bad debt (Group 3 to Group 5): about VND 37.8 trillion (up 20.1% from the start of the year; down 0.8% from end-June). Consolidated loans classified Group 3 to Group 5 at 30 September 2026. Bank (consolidated). Basis date: 30 Sep 2026. Source: The Investor: Vietnam banks post strong profits, but cash interest collections lag (2026-10-23)
  14. NPL ratio, 30 banks (FiinRatings), H1: about 1.9%. NPL ratio across 30 banks tracked by FiinRatings, H1 2026. 30 banks (FiinRatings sample). Basis date: 30 Jun 2026. Source: The Investor: Vietnam banks post strong profits, but cash interest collections lag (2026-10-23)
  15. NPL coverage, 30 banks (FiinRatings), H1: about 80% (lowest in five years). Loan-loss reserves / NPLs across 30 banks tracked by FiinRatings, H1 2026. 30 banks (FiinRatings sample). Basis date: 30 Jun 2026. Source: The Investor: Vietnam banks post strong profits, but cash interest collections lag (2026-10-23)
  16. System credit growth, year to date (30 September 2026): 11.59% (up from 10.24% on 17 September and 8.38% on 29 July). Growth of credit outstanding since end-2025, as stated by the SBV. Credit institution system. Basis date: 30 Sep 2026. Source: CafeF: Deputy Governor Pham Thanh Ha — credit at 30/9 reaches VND 20.75 quadrillion, up 11.59% (2026-10-03)
  17. ttb NPL ratio: 2.88%. NPL ratio as reported by the bank in its third-quarter results. TMBThanachart Bank (ttb). Basis date: 30 Sep 2026. Source: Nation Thailand: Thai banks' Q3 profits diverge amid margin squeeze as fee income offsets (2026-10-21)
  18. KKP NPL ratio: 3.4% (down from 4.3% at end-2025). NPL ratio as reported by the bank in its third-quarter results. Kiatnakin Phatra Bank (KKP). Basis date: 30 Sep 2026. Source: Nation Thailand: Thai banks' Q3 profits diverge amid margin squeeze as fee income offsets (2026-10-21)

Sources

  1. Techcombank: 3Q26 results press release (Vietnamese, 2026-10-20)primary
  2. The Investor: Vietnam banks post strong profits, but cash interest collections lag (2026-10-23)
Weekly email

SEA Lending Brief

A weekly summary of lending, credit and regulation across Southeast Asia.

We will email you a link to confirm. Unsubscribe at any time. Privacy policy

Reports are for information only and are not investment advice.

A Japanese version of this article is available: 日本語版

More on Vietnam

20 Oct 2026 · RegulationVietnam's central bank orders deposit-rate cuts and ties compliance to 2027 credit quotas19 Oct 2026 · CreditVietnam's government asks banks to cut lending rates by 1.5–2 percentage points as deposit costs rise18 Oct 2026 · RegulationVietnam's Circular 53 classes AI credit decisions of VND 50 million or more as high-risk

Vietnam overview: key indicators and all articles →