International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

Frequency: 12

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 Volume 13, Issue 2 (February 2026), Pages: 165-177

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 Original Research Paper

Factors affecting non-interest income at Vietnamese commercial banks

 Author(s): 

Nguyen Phuc Quy Thanh *

 Affiliation(s):

 Business Administration Department, Ho Chi Minh University of Banking, Ho Chi Minh City, Vietnam

 Full text

    Full Text - PDF

 * Corresponding Author. 

   Corresponding author's ORCID profile:  https://orcid.org/0009-0008-3150-2675

 Digital Object Identifier (DOI)

  https://doi.org/10.21833/ijaas.2026.02.017

 Abstract

This study reviews the theoretical foundations of banks’ non-interest income (NII) and the standard financial indicators used to measure it. Based on this review, the study develops a framework that links bank-specific (internal) and macroeconomic factors to NII in Vietnamese commercial banks. A critical review of both domestic and international literature is conducted to identify areas of theoretical agreement and remaining research gaps. From this review, the study formulates context-specific research hypotheses and an empirical model for Vietnam. Using an unbalanced panel dataset of 24 Vietnamese commercial banks from 2011 to 2023, the study estimates several panel regression models. After conducting specification tests, the random-effects model (REM) is selected, and issues related to error variance are addressed using Feasible Generalized Least Squares (FGLS). The results show that bank size, deposit-to-asset ratio, credit risk provision ratio, income diversification, inflation, and the COVID-19 pandemic have a positive effect on NII, while loan-to-asset ratio and state ownership have a negative effect. Equity ratio and real GDP growth are not statistically significant. Based on these findings, the study offers policy implications to improve banks’ operational efficiency.

 © 2026 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (https://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

Non-interest income, Commercial banks, Panel data analysis, Bank-specific factors, Vietnam

 Article history

Received 29 August 2025, Received in revised form 10 January 2026, Accepted 15 February 2026

 Acknowledgment

No Acknowledgment. 

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Thanh NPQ (2026). Factors affecting non-interest income at Vietnamese commercial banks. International Journal of Advanced and Applied Sciences, 13(2): 165-177

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 Figures

  Fig. 1 Fig. 2 

 Tables

  Table 1  Table 2  Table 3  Table 4  Table 5 Table 6  Table 7  Table 8  Table 9  Table 10  

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