BAB

Ngân hàng TMCP Bắc Á ·HNX ·2026Q1

▼ SPREAD COMPRESSION

Operations are weakening NIM 2.04%, -0.14 pp YoY
Price
11,200
Latest close
03 Jun 2026
P/B 0.9x
ROAE (TTM) 9.3%
NIM (TTM) 2.0%
ROAA (TTM) 0.6%
LDR 84.0%

Bank Picture

BAB bank opening narrative plan rendered.

NIM
2.04%
−0.1 pp YoY
Funding cost
6.01%
+0.5 pp YoY
Metric Q1'26 Q4'25 Q3'25 Q2'25 Q1'25 Q4'24 Q3'24 Q2'24 Q1'24
Net Interest Income 1.020,0 979,3 701,4 892,2 874,0 839,1 747,6 921,8 812,7
NII Growth YoY +17% +17% −6% −3% +8%
NIM 2,04% 1,99% 1,98% 2,06% 2,18% 2,20%
Net Fee Income 20,5 77,6 39,5 42,6 21,5 25,8 30,6 26,2 23,0
Provision Expense 93,0 24,7 82,8 80,4 54,1 −11,4 41,0 121,1 0,7
Net Profit After Tax 300,1 535,0 118,1 243,3 293,2 360,7 217,0 162,8 270,9
Net Income Growth YoY +2% +48% −46% +49% +8%

Drivers of BAB's profit

TTM

Net profit attributable to parent increased vs last year, mainly helped by higher net interest income. Supporting and offsetting drivers:

Net interest income +VND 210.5bn
Other income +VND 94.7bn
Net fee income +VND 76.0bn
FX & gold trading +VND 66.0bn
Operating expenses −VND 5.1bn
Investment securities −VND 221.9bn
TTM

Net profit attributable to parent increased vs prior quarter, mainly helped by higher net interest income. Supporting and offsetting drivers:

Net interest income +VND 146.1bn
Operating expenses −VND 40.4bn
FX & gold trading −VND 70.1bn
Investment securities −VND 64.9bn
Provision for credit losses +VND 38.8bn
Corporate income tax +VND 4.1bn

Financial Highlights

Detailed analysis of each financial dimension

Is credit clean?

very positive positive stable watch under pressure

Credit Quality

Is asset quality deteriorating?

Direct credit reading is still incomplete, but funding balance has tightened with LDR rising to 84.0%.

Reserve buffer on gross loans is around 1.28%. LDR stands at 84.0%.

Credit reading currently relies mainly on credit cost and reserve buffer; NPL, group-2, and bad-debt coverage signals will be added next.

Key signals

Credit cost 0.16% +0.0pp
Reserve / Gross loans 1.28% +0.0pp
LDR 84.0% +1.8pp

2026Q1

Is interest margin sustainable?

Interest Margin Quality

Is spread coming under pressure?

Spread is under pressure from funding costs, with funding cost at 6.01%.

In the period, NIM reached 2.04%, −0.1pp YoY; asset yield was 8.05%, +0.3pp; while funding cost was 6.01%, +0.5pp. This suggests spread has become less favorable than before, though not yet in a clearly deteriorating two-sided way.

Watchpoints

NIM is in a low zone

NIM stands at 2.04%, leaving less room on spread.

Funding cost is elevated

Funding cost is 6.01%, pressuring net interest margin.

Key signals

NIM 2.04% −0.1pp
Asset yield 8.05% +0.3pp
Funding cost 6.01% +0.5pp

2026Q1

Earnings Mix

Is profit coming from core or supporting income sources?

Earnings mix should not be read as healthy on cost discipline alone, with CIR still at 57.1%.

Nii accounts for 90.0% of toi, fee income is 4.5% of toi, other income is 2.5% of toi, cir stands at 57.1%, net profit equals 30.0% of toi.

Watchpoints

CIR is elevated

CIR stands at 57.1%, suggesting cost discipline still needs work.

Fee-income base is thin

Fee income currently contributes only 4.5% of total operating income.

Key signals

NII / TOI 90.0% +3.5pp
Fee / TOI 4.5% −0.0pp
Other income / TOI 2.5% −0.0pp
CIR 57.1% −1.1pp

2026Q1

Is liquidity safe?

Funding & Liquidity

Are funding and capital buffers sufficiently safe?

Funding and liquidity look more balanced, with LDR at 84.0% while customer funding share is improving.

Ldr stands at 84.0%, equity equals 7.0% of assets, customer funding accounts for 73.2% of interest-bearing funding, market funding accounts for 26.8%.

Key signals

LDR 84.0% +1.8pp
Equity / Assets 7.0% +0.2pp
Customer funding 73.2% +1.5pp
Market funding 26.8% −1.5pp

2026Q1

Profitability Quality

What is sustaining current profitability?

Profitability is under clearer pressure as provisioning is rising sharply, with ROAA currently at 0.65%.

Net income on average earning assets is 0.68%, nim stands at 2.04%, credit cost is 0.16%, cir stands at 57.1%, average leverage is around 14.36 times.

Watchpoints

ROAA is low

ROAA stands at 0.65%, suggesting returns on assets are still soft.

ROAE should be watched

ROAE currently stands at 9.32%.

Key signals

ROAA 0.65% −0.0pp
ROAE 9.32% −0.2pp
NI / Avg EA 0.68% −0.0pp
Quarterly provision VND 93bn +276.9% QoQ

2026Q1

Investment Takeaway

BAB bank investment takeaway — spread compression. [Placeholder for EN translation.]

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[Placeholder for EN conclusion.]

Statement Data

Item 2025 2024
Net Interest Income
3,446.9 3,321.2
Net Fee and Commission Income
181.2 105.6
Operating Expenses
2,320.3 2,249.3
Operating Profit before Provision for Credit Losses
1,715.6 1,411.7
Provision for Credit Losses
242.0 151.4
Profit Before Tax
1,473.6 1,260.3
Net Profit After Tax
1,189.6 1,011.3
Net Profit Attributable to the Equity Holders of the Bank
1,189.6 1,011.3
Earnings per Share
1,141.00 1,129.00

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