Four Vietnamese Banks Report H1 2026 Profit Declines: SGB, EIB, STB, LPB

Overview

Four Vietnamese banks have reported declining profits for the first half of 2026, bucking the trend of sector-wide growth. Saigonbank (SGB) posted the steepest drop, with pre-tax profit falling 72% year-on-year to VND 48 billion, including a Q2 loss. Eximbank (EIB) saw profit decline 51%, Sacombank (STB) about 50%, and LPBank (LPB) a modest 3%. The results underscore rising provisioning costs and net interest margin (NIM) pressure across the banking sector.

Key Facts

• Saigonbank (SGB) H1 2026 pre-tax profit: VND 48 billion, down 72% YoY; Q2 pre-tax loss of VND 40 billion vs. profit of VND 76 billion in Q2 2025.
• Eximbank (EIB) H1 2026 pre-tax profit: ~VND 730 billion, down 51% YoY; completed ~48% of full-year target.
• Sacombank (STB) H1 2026 pre-tax profit: VND 1,900-2,000 billion, down ~50% YoY; NIM compressed, NPL ratio estimated at 5.6%.
• LPBank (LPB) H1 2026 pre-tax profit: VND 5,973 billion, down 3% YoY.
• Saigonbank’s Q2 provision expenses surged 62.4% to over VND 64 billion, driving the loss.
• Eximbank’s total assets at end-Q2: ~VND 266,500 billion; credit outstanding: ~VND 200,000 billion; NPL ratio: 2.88%; CAR: 12.5%.
• Sacombank’s provision expenses estimated at over VND 4,700 billion, among the highest in the banking sector.

What Happened

As of late July 2026, 17 banks have disclosed or hinted at H1 2026 results. While most reported profit growth, four banks recorded declines. Saigonbank (SGB) suffered the largest drop, with H1 pre-tax profit of only VND 48 billion, down 72% YoY. In Q2 alone, the bank posted a pre-tax loss of VND 40 billion, making it the first bank to report a quarterly loss. The decline was driven by a 62% fall in net operating income and a 62.4% surge in provision expenses.

Eximbank (EIB) reported H1 pre-tax profit of approximately VND 730 billion, down 51% YoY, according to CEO Tran Tan Loc at an extraordinary shareholder meeting. Sacombank (STB) CEO Loic Faussier disclosed H1 pre-tax profit of VND 1,900-2,000 billion, about half of the prior year, citing NIM compression and a sharp rise in NPLs to an estimated 5.6%, leading to record provisions of over VND 4,700 billion. LPBank (LPB) saw a more modest 3% decline to VND 5,973 billion.

Market Context

Saigonbank (SGB) trades on UPCOM at VND 12,500 as of July 28. Eximbank (EIB) closed at VND 17,350 on HOSE. Sacombank (STB) last traded at VND 72 on HOSE with volume of 813,000 shares on July 29. LPBank (LPB) closed at VND 53,500 on HOSE. The profit warnings come amid a broader banking sector that has seen mixed performance, with rising credit costs and margin pressure weighing on smaller and mid-tier lenders.

Strategic Significance

The divergent results highlight the growing gap between well-capitalized banks and those burdened by legacy asset quality issues. Sacombank’s elevated NPL ratio and provision costs reflect ongoing restructuring challenges, while Saigonbank’s loss underscores vulnerability to credit deterioration. Eximbank’s decline, though severe, is partly attributed to base effects and may stabilize if its CAR and NPL metrics hold. LPBank’s near-flat profit suggests relative resilience. For long-term investors, the key differentiator will be asset quality trends and the ability to manage NIM in a low-rate environment.

What to Watch

• Q3 2026 earnings releases for all four banks, particularly Saigonbank’s ability to return to profitability.
• Sacombank’s NPL ratio and provision trends in subsequent quarters.
• Eximbank’s progress toward its full-year profit target and any updates on its restructuring plan.
• LPBank’s loan growth and NIM trajectory given its modest profit decline.
• Sector-wide credit growth and SBV policy rate decisions that could impact funding costs.