Few bright spots in the CASA landscape

Demand deposits are considered one of the cheapest and most valuable funding sources for banks. While fix-termed deposit interest rates have continued to rise, demand deposit rates remain capped at 0.5 percent per year under current regulations, with most banks offering only 0.1-0.2 percent annually.

However, higher term deposit rates since the beginning of the year have prompted many customers to reconsider whether to keep money in payment accounts earning 0.1-0.2 percent interest or move it into higher-yield fixed-term savings.

As a result, many banks reported declines in both CASA balances and CASA ratios compared with the beginning of 2026, according to their half-year financial statements.

Even long-standing "CASA kings" such as MB, Techcombank, and Vietcombank were not immune to the trend.

A VietNamNet survey of 27 joint-stock commercial banks found that only six recorded higher CASA ratios than at the start of the year, and the increases were relatively modest.

VietBank posted the strongest improvement, with its CASA ratio rising 3.25 percentage points to 7.63 percent.

PGBank increased its CASA ratio by 1.8 percentage points to 19.74 percent as of June 30.

Sacombank maintained a relatively high CASA ratio of 16.45 percent, up 1.45 percentage points.

OCB also improved its ratio to 11.05 percent, an increase of 1.18 percentage points from the beginning of the year.

Meanwhile, PVcomBank and Eximbank posted modest gains, with CASA ratios reaching 9.13 percent and 13.78 percent, respectively, up 0.74 and 0.69 percentage points.

Notably, all six banks also recorded higher CASA balances. Sacombank posted the largest increase, with demand deposits rising by VND13.5 trillion.

Tens of trillions of dong disappear as top 10 rankings shift

PGBank and Sacombank remained eighth and tenth, respectively, in the rankings for CASA ratios as of June 30. While their positions were unchanged from the end of 2025, the other eight rankings shifted.

The top 10 banks by CASA ratio remained the same as last year: Techcombank, MB, Vietcombank, VietinBank, MSB, BIDV, ACB, PGBank, TPBank, and Sacombank.

At the end of 2025, MB led the market with a CASA ratio of 37.18 percent. By June 30, it had slipped to second place with 33.93 percent, reflecting a decline of approximately VND14 trillion in demand deposits.

Techcombank moved from second place to the top spot with a CASA ratio of 34.26 percent. Even so, its ratio fell 0.4 percentage points, equivalent to a decline of VND13.5 trillion in CASA balances.

Vietcombank retained third place with a CASA ratio of 32.35 percent, down 1.44 percentage points, or more than VND6 trillion.

VietinBank climbed from fifth to fourth despite its CASA ratio falling 2.16 percentage points to 22.67 percent, with demand deposits declining by more than VND17 trillion.

The gap between the top three banks - Techcombank, MB, and Vietcombank - and the rest of the market remains substantial.

MSB swapped positions with VietinBank, ranking fifth with a CASA ratio of 21.91 percent, down 6.23 percentage points, equivalent to a decline of VND10.5 trillion.

Although BIDV remained Vietnam's largest bank by customer deposits, with more than VND2.23 quadrillion, it ranked sixth in CASA ratio at 20.05 percent, down 0.98 percentage points, representing a decline of VND13.3 trillion. Its ranking was unchanged from the end of last year.

ACB climbed to seventh place, overtaking TPBank, which slipped to ninth.

As of June 30, ACB's CASA ratio stood at 20.04 percent, down 1.29 percentage points, with demand deposits decreasing by VND9.4 trillion.

PGBank and Sacombank rounded out the top 10 in eighth and tenth place.

Speaking at MB's investor conference on August 6, CEO Pham Nhu Anh said higher deposit rates have prompted both businesses and individuals to rethink their financial strategies.

"Instead of leaving money in payment accounts, customers are transferring funds into fixed-term deposits to earn higher returns," he said.

"Our goal by the end of 2026 is to maintain MB's leading position in CASA. However, we are only aiming to preserve the ranking. Our CASA balance will certainly decline compared with last year," Anh added.

He also noted that many low-interest term deposits are now maturing and being renewed at significantly higher rates, increasing banks' funding costs and making it more difficult to maintain a large pool of low-cost deposits unless overall interest rates decline.

Tuan Nguyen