Eximbank, Sacombank, Saigonbank, LPBank H1 Profits Decline

Overview

Eximbank (EIB), Sacombank (STB), Saigonbank (SGB), and LPBank (LPB) reported declining first-half 2026 profits, bucking the sector trend. Saigonbank’s pre-tax profit fell over 70%, Eximbank dropped more than half, Sacombank declined nearly 44%, and LPBank slipped under 3%. Rising credit risk provisions and sluggish credit growth were the main culprits, with Sacombank’s provisions surging 6.5 times year-on-year.

Key Facts

• Saigonbank’s H1 pre-tax profit fell over 70% year-on-year to VND 48 billion.
• Eximbank’s H1 pre-tax profit declined more than 50% to VND 678 billion.
• Sacombank’s H1 pre-tax profit dropped nearly 44% to VND 4,136 billion.
• LPBank’s H1 pre-tax profit decreased less than 3% to VND 5,973 billion; Q2 profit rose ~5% to VND 3,147 billion.
• Sacombank’s credit risk provisions in H1 were 6.5 times higher than the same period last year.
• LPBank and Eximbank saw provision costs rise over 130%.
• H1 credit growth: Eximbank 2%, Sacombank 1.5%, Saigonbank 1%, LPBank 9.6%, versus industry average 7.4%.

What Happened

According to the article, while most Vietnamese banks reported profit growth in the first half, these four lenders saw earnings decline. Saigonbank recorded the weakest performance, with all main revenue streams falling. Eximbank’s credit growth was low, customer deposits fell nearly 4% from the start of the year, and Q2 net service income dropped over 60%, with a net loss in foreign exchange trading.

Sacombank focused on deposit mobilization rather than lending, but service revenue doubled to nearly VND 4,000 billion. LPBank was the most resilient, with Q2 profit up about 5% year-on-year, supported by a rise in non-interest income, particularly service fees. The article attributes the profit declines to higher credit risk provisions and weak credit expansion, alongside elevated funding costs.

Market Context

Eximbank (HOSE: EIB) closed at VND 17,800 on August 1, 2026, while Sacombank (HOSE: STB) traded at VND 71,300, Saigonbank (UPCOM: SGB) at VND 11,500, and LPBank (HOSE: LPB) at VND 51,800. The banking sector has generally benefited from strong credit growth and improving margins, but these four banks lag due to asset quality issues and internal restructuring. Eximbank’s move of its head office to Hà Nội and leadership changes following Gelex’s entry, plus Sacombank’s ongoing restructuring under Nguyễn Đức Thụy, add to operational uncertainty.

Strategic Significance

For long-term investors, the profit declines signal potential asset quality deterioration and execution risks during management transitions. Sacombank’s aggressive provisioning suggests a conservative approach to cleaning up its balance sheet, which may pressure near-term earnings but could strengthen future stability. Eximbank’s weak credit growth and deposit outflows indicate competitive challenges. LPBank’s relatively strong performance, with 9.6% credit growth and rising service income, positions it better among the four. These trends warrant close monitoring of asset quality metrics and management execution.

What to Watch

• Q3 2026 earnings reports for all four banks, due by October 2026.
• Trends in non-performing loan (NPL) ratios and provision coverage in upcoming quarterly disclosures.
• Credit growth acceleration, especially at Eximbank, Sacombank, and Saigonbank, versus the industry average.
• Updates on Sacombank’s restructuring plan and Eximbank’s integration with Gelex.
• Regulatory changes affecting provisioning requirements or capital adequacy.