Saigonbank Posts Q2 Loss; Multiple Vietnamese Banks Report Profit Declines

Overview

Several Vietnamese banks reported declining Q2 2026 profits, with Saigonbank (SGB) posting a pre-tax loss of VND 40 billion, the first bank to report a quarterly loss. Eximbank (EIB) and Sacombank (STB) guided for profit drops of around 50%, while LPBank (LPB) saw H1 profit fall 3% despite a Q2 increase. Rising credit provisions were the primary factor behind the earnings misses.

Key Facts

• Saigonbank (SGB) reported a Q2 2026 pre-tax loss of VND 40 billion, versus a profit of VND 76 billion in Q2 2025.
• SGB’s H1 2026 pre-tax profit fell 72% year-on-year to VND 48 billion.
• SGB’s credit provision expenses surged 62.4% to over VND 64 billion in Q2.
• VietABank (VAB) Q2 pre-tax profit fell 12.2% to VND 317 billion, as provisions jumped from VND 5 billion to VND 96 billion.
• LPBank (LPB) Q2 pre-tax profit rose 5.3% to VND 3,146 billion, but H1 profit declined 3% to VND 5,973 billion due to a weak Q1.
• Eximbank (EIB) guided H1 pre-tax profit at VND 730 billion, down 51% year-on-year; Q2 estimated at VND 392 billion, down ~40%.
• Sacombank (STB) CEO indicated Q2 pre-tax profit of VND 1,900-2,000 billion, down ~50% year-on-year.

What Happened

Saigonbank (SGB), listed on UPCOM, became the first bank to report a quarterly loss in Q2 2026, with a pre-tax loss of VND 40 billion. According to its financial statements, the loss was driven by a 62% decline in net operating income and a 62.4% increase in credit provision expenses to over VND 64 billion. This follows a loss of over VND 107 billion in Q4 2025.

VietABank (VAB) also saw Q2 pre-tax profit fall 12.2% to VND 317 billion, as credit provisions surged from nearly VND 5 billion to VND 96 billion. However, strong Q1 results allowed H1 profit to rise 15.7% to VND 827 billion. LPBank (LPB) reported Q2 pre-tax profit of VND 3,146 billion, up 5.3%, but H1 profit slipped 3% to VND 5,973 billion due to a 10% drop in Q1. Credit provisions more than doubled to VND 1,552 billion in H1.

Eximbank (EIB) and Sacombank (STB) have not yet released Q2 financial statements. At an extraordinary shareholder meeting, Eximbank management guided H1 pre-tax profit at VND 730 billion, down 51%. Sacombank CEO Loic Faussier told media that Q2 pre-tax profit after provisions is expected at VND 1,900-2,000 billion, down about 50% year-on-year, citing inflation, exchange rate pressures, and narrowing room for rate cuts.

Market Context

SGB closed at VND 12,800 on July 29, 2026, on UPCOM. The bank’s repeated losses underscore asset quality challenges. VAB (UPCOM) closed at VND 9,910, while LPB (HOSE) closed at VND 52,600. EIB (HOSE) closed at VND 17,400. The earnings misses come amid a challenging operating environment for Vietnamese banks, with rising non-performing loans and pressure on net interest margins. The broader banking sector has seen mixed performance, with some lenders still posting record profits.

Strategic Significance

The widespread profit declines, particularly at smaller banks like SGB and VAB, highlight the impact of rising credit provisions on earnings. For SGB, the second quarterly loss in three quarters raises concerns about asset quality and capital adequacy. For larger banks like EIB and STB, the profit drops reflect a cautious provisioning stance amid macroeconomic headwinds. LPB’s ability to grow Q2 profit despite higher provisions suggests some resilience, but the H1 decline indicates persistent pressure. Investors should monitor credit cost trends and NPL ratios closely.

What to Watch

• SGB’s Q3 2026 financial statements for signs of recovery or further deterioration.
• EIB and STB’s official Q2 filings, due in August 2026, for detailed provision and NPL data.
• SBV policy on credit growth limits and interest rates, which could affect bank margins.
• NPL ratios across the sector, especially for banks with high exposure to retail and SME lending.
• LPB’s Q3 earnings to see if Q2 momentum can offset Q1 weakness.