Sacombank (STB) Q1 2026 Profit Plunges 43%, Cuts 2,700 Jobs, NPL Ratio Hits 6.62%

Overview

Sacombank (STB) reported a 43% year-on-year decline in Q1 2026 pre-tax profit to VND 2,106 billion, sharply missing the VND 3,572 billion guidance provided by board member Phan Dinh Tue at the annual general meeting on April 22. The miss was driven by a tenfold surge in credit risk provisions to over VND 2,000 billion. Concurrently, the bank cut 2,736 employees, bringing total headcount to 14,080, the lowest in over a decade. The NPL ratio rose to 6.62% from 6.41% at end-2025.

Key Facts

• Sacombank’s Q1 2026 pre-tax profit fell 43% YoY to VND 2,106 billion, versus earlier guidance of VND 3,572 billion.
• Credit risk provisions surged to over VND 2,000 billion, more than 10 times the Q1 2025 level.
• The bank cut 2,736 employees in Q1 2026, reducing headcount to 14,080, the lowest since at least 2015.
• NPLs rose to VND 41,498 billion as of March 31, 2026, from VND 40,136 billion at end-2025; NPL ratio increased to 6.62% from 6.41%.
• Nguyen Duc Thuy, former LPBank chairman, became Sacombank’s CEO on March 3, 2026, and was elected to the board on April 22.
• The AGM approved renaming the bank to Saigon Treasure Commercial Joint Stock Bank (SACOMBANK).
• 2026 targets: total assets VND 1,010,300 billion (+10%), pre-tax profit VND 8,100 billion (+6%).

What Happened

Sacombank’s Q1 2026 financial report revealed a steep profit decline, with pre-tax profit falling to VND 2,106 billion from VND 3,696 billion in Q1 2025. The bank attributed the drop to a massive increase in credit risk provisions, which reached over VND 2,000 billion, compared to roughly VND 200 billion a year earlier. This provisioning spike follows a similar move in Q4 2025, suggesting a deliberate cleanup of the loan book under new management.

The employee reduction of 2,736 people (2,570 at the parent bank) brought total staff to 14,080, the smallest workforce since 2015. The cuts are part of a broader restructuring that has seen headcount fall by over 4,000 from its 2019-2020 peak of around 18,000. The bank also reported a rise in NPLs to VND 41,498 billion, with the NPL ratio climbing to 6.62%.

Market Context

STB shares closed at VND 64 on April 15, 2026, down 2.57% with volume of 6.58 million shares, reflecting market disappointment. The stock trades on HOSE. The banking sector has been under pressure from rising NPLs and provisioning costs, and Sacombank’s results are among the weakest reported so far for Q1 2026. The bank’s NPL ratio of 6.62% is significantly above the industry average, highlighting persistent asset quality issues.

Strategic Significance

The Q1 results signal a strategic shift under new CEO Nguyen Duc Thuy, who took the helm in March 2026. The aggressive provisioning and headcount reduction suggest a focus on cleaning up the balance sheet, potentially at the expense of near-term earnings. The planned name change to Saigon Treasure Bank (SACOMBANK) and the 2026 profit target of VND 8,100 billion imply management expects a recovery in the remaining quarters. However, the scale of the provision spike and NPL ratio raise questions about the bank’s underlying loan portfolio health and the sustainability of its turnaround.

What to Watch

• Q2 2026 earnings release to see if provisioning normalizes and profit rebounds.
• Trend in NPL ratio and credit risk provisions over the next two quarters.
• Further updates on the restructuring plan, including branch closures or additional headcount cuts.
• Regulatory approval for the name change and any impact on brand recognition.
• Management guidance on achieving the full-year 2026 profit target of VND 8,100 billion.