Bank ROE: Which bank is generating the most profit per capital?

\>> Article in the Topic "Vietnamese banking panorama: From financial statements to economic pulse"

The bank with the largest profit is not always the most efficient bank

In the banking industry, profit after tax is often the most concerned indicator. However, when evaluating business performance, profit scale only reflects half the story.

What shareholders really care about is how much profit each dollar of capital they put into the bank is generating. That is the meaning of ROE (Return on Equity) - return on equity.

If ROA measures profitability on all assets, then ROE reflects the efficiency of using shareholders' capital. This is also one of the indicators most closely watched by investors because it shows how much value the bank is creating from its existing capital.

Data from the first quarter of 2026 shows that the ROE picture of the banking system is very differentiated. There are banks that maintain high profitability for many consecutive years, while some other organisations record high ROE but come with large fluctuations.

ROE index chart of 27 listed banks (Q1/2026)

ABBank leads but HDBank and MBBank are the most persistent 26.8%.

This is a very impressive number compared to the general level of the banking industry. However, when expanding the perspective to the period from the first quarter of 2024 to the first quarter of 2026, the picture becomes more complicated.

ABBank's

ROE fluctuated very strongly, even falling to negative levels in the third quarter of 2024. This shows that current results may be significantly affected by unusual factors such as reversal of provisions, disposal of assets or non-recurring income.

On the contrary, HDBank and MBBank show a different story.

Over the past two years, HDBank has continuously maintained ROE in the range of 22% to 28%, among the highest in the system. What is worth noting is that this level of profitability has been maintained quite stable over many consecutive quarters. Behind that result are retail models, consumer finance and customer ecosystems built over many years.

Over the past two years, HDBank has continuously maintained ROE in the range of 22% to 28%, among the highest in the system.

MBBank also showed similar persistence when maintaining ROE around the 20% threshold for a long time. The bank's biggest advantage lies in its CASA ratio [the highest group in the market, helping capital costs stay low. Thanks to that, MBBank can generate high profits without relying too much on credit segments with greater risk.

Large private banking group is looking for balance

These are all banks that have achieved very large equity capital, making the problem of maintaining a high ROE much more difficult than in the previous growth period.

Techcombank recorded an ROE of about 14.9% in the first quarter of 2026. Compared to the previous peak period, this index has tended to move sideways in the last two years. However, that does not mean that business efficiency has declined.

In fact, Techcombank continuously accumulates retained profits, causing equity to increase very quickly. As the denominator in the ROE formula becomes larger, this index tends to decrease even though absolute profits still grow. In return, the bank possesses a very strong capital buffer and higher risk tolerance.

ACB maintains ROE of about 17.5%, among the highest among large joint stock commercial banks. This reflects the bank's cautious but effective development strategy. Instead of chasing hot growth, ACB focuses on customer segments with good credit quality and maintains low risk levels.

Meanwhile, VPBank recorded an ROE of about 13.6%. Compared to the early period of 2024, this is a significant improvement. After the sale of capital to SMBC, VPBank's equity increased sharply, pulling ROE down technically. However, as the FE Credit restructuring process is gradually completed and profits recover, this index is also showing a clear improvement trend.

Vietcombank continues to be the standard of state-owned groupsVietcombank's

ROE has remained quite stable in the region of 16% - 17% for many years. This may not be the highest level in the system, but it is one of the most stable indicators.

It is worth noting that Vietcombank maintains high profitability while still pursuing a very cautious risk management policy. The bank's bad debt coverage ratio is often among the highest in the industry. In other words, the bank both maintains high profits and builds a large reserve buffer to protect the balance sheet.

VietinBank and BIDV also recorded relatively good ROE, fluctuating in the region from 14.5% to 19%. In particular, VietinBank benefits from the improvement of CASA and capital mobilisation efficiency, helping to improve profitability on equity.

Top 5 highest and lowest ROE (Q1/2024 - Q1/2026)

Banks that are still struggling with the capital efficiency problem other.

Eximbank and VietBank only recorded ROE around 4%, reflecting that their profitability is still quite modest compared to the general level. This group's profits continue to be under pressure from operating costs, capital mobilisation competition and credit risk provisions.

NCB is a more special case when it is still in the process of restructuring. The bank's ROE index has fluctuated very strongly in the past period, sometimes even falling deeply to negative levels. That shows that core activities are still not strong enough to completely absorb the legacy from the past.

Sacombank is also a notable case. Despite maintaining ROE at a fairly high level in 2024 and the first half of 2025, this index has decreased significantly in the first quarter of 2026. The main reason comes from the bank continuing to promote the handling of outstanding assets in the restructuring project, causing profits to be affected by provision costs.

What does

ROE reflect about the banking industry?

A bank that has just increased capital strongly or continuously retained profits will often have ROE decrease in the short term because the size of equity capital increases faster than the rate of profit growth. This explains the case of Techcombank or VPBank in recent years.

On the contrary, banks that maintain high and stable ROE over a long period of time often possess competitive advantages that are difficult to copy. It could be a cheap capital source like MBBank, an effective retail ecosystem like HDBank or outstanding asset quality like Vietcombank.

Looking from the first quarter of 2026 data, competition in the banking industry is no longer simply a race to expand asset scale or increase absolute profits. It is becoming increasingly clear that the market is valuing banks that are able to generate sustainable profits per dollar of shareholder capital.

And from that perspective, HDBank, MBBank and Vietcombank are showing the most stable profitable models, while Techcombank, ACB and VPBank continue to seek a balance between growth, capital safety and effective use of equity.

\>> Article in the Topic "Vietnam Bank Panorama: From financial statements to economic pulse"

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Source: TheLeader — theleader.vn. The article is reposted for the purpose of sharing knowledge for the founder and investor community in the ecosystem HCM VIF.