SHB and Vietnamese Banks Cut Deposit Rates as Bond Yields Hit 10.5%
This Aveluro analysis covers SHB on HOSE in the Banks sector. The classified event type is macro policy, with mixed sentiment and a deterministic market-impact score of 9.6/10. Source coverage came from CafeF - Tài chính ngân hàng, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Twenty-two of Vietnam’s 46 commercial banks have now cut deposit rates, with SHB, MB, SeABank, ABBank, MBV and PVcomBank adjusting on 21 October 2026 following directives from the State Bank of Vietnam (SBV). The easing runs alongside a contrasting trend in the corporate bond market, where Q3 bank issuance rose 11.8% year-on-year to about VND 120 trillion at an average yield of 8.85%, and PVcomBank closed a private placement at 10.5% per year.
Key Facts
- SHB cut deposit rates by 0.5 percentage points across 6- to 36-month tenors on 21 October 2026.
- MB reduced online deposit rates by 0.5 percentage points for 6- to 60-month tenors, leaving 24- to 60-month rates at 6.5% per year.
- SeABank cut online rates by 0.5 percentage points for 1- to 15-month tenors and by 0.7 percentage points for 18- to 36-month tenors, with its top listed rate at 4.75% per year.
- PVcomBank closed a VND 200 billion private bond placement on 30 September 2026 at 10.5% per year, the highest bank bond coupon in several years and above Sacombank’s 10% issue in early August.
- PVcomBank issued seven medium- and long-term bond tranches in Q3 totalling VND 4,000 billion, all at 9.6% per year or above.
- S&I Ratings data show Q3 bank bond issuance of roughly VND 120 trillion, up 11.8% year-on-year, at an average yield of 8.85% per year, above the 2022 average.
- VietinBank plans to offer 120 million bonds with a VND 100,000 par value, a six-year tenor and a floating rate referenced to a base rate plus 2.25% per year.
What Happened
The rate cuts follow SBV instructions to lower both deposit and lending rates in support of production, business and priority sectors. According to the article, the common reduction is 0.5 percentage points per year, with a maximum of 0.7 percentage points, concentrated in tenors of six months and longer. SHB, MB, SeABank, ABBank, MBV and PVcomBank were among the six banks announcing adjustments on 21 October alone.
The bond market tells a different story. PVcomBank’s 10.5% placement, reported via Hanoi Stock Exchange data, marks the highest bank bond coupon in years. S&I Ratings attributes part of the issuance slowdown to changes in how the loan-to-deposit ratio (LDR) is calculated under Circular 50, which has reduced some commercial banks’ incentive to issue bonds, even as overall Q3 volume grew. The article frames the divergence as a question of whether cheaper deposits can translate into genuinely lower lending rates while wholesale funding remains expensive.
Market Context
SHB trades on HOSE and closed at VND 10,800 on 21 October 2026, near the low end of the sector’s price band, alongside MBB at VND 20,000, SSB at VND 16,250 and STB at VND 63,100. The deposit-rate cuts are supportive for net interest margins across the group, but the bond data suggest funding competition has not disappeared. The article does not provide share price performance figures for the affected banks.
Strategic Significance
The investment question is whether the SBV-directed deposit cuts are large enough to offset wholesale funding costs. For SHB and peers with thinner capital buffers, a 0.5 percentage point reduction in deposit costs lowers the marginal cost of funds, but the 8.85% average bond yield and PVcomBank’s 10.5% coupon show that weaker franchises still pay a premium for term funding. Banks that can fund loan growth from cheap retail deposits, rather than bond issuance, should see the clearest margin benefit. The LDR recalculation under Circular 50 adds a structural constraint: it reduces the incentive to issue bonds, which may tighten funding options for faster-growing lenders.
What to Watch
- Q3 2026 earnings releases from SHB, MBB and STB, including net interest margin and cost-of-funds disclosures.
- Further SBV directives or deposit-rate adjustments in November 2026.
- VietinBank’s planned 120 million bond offering and its final coupon.
- Q4 bond issuance volumes and average yields from S&I Ratings.
- Any SBV guidance on Circular 50 implementation and its effect on LDR calculations.