Sacombank H1 2026 Profit Plunges 50% as NPL Ratio Hits 5.6%

Overview

Sacombank (STB) has reported a sharp decline in H1 2026 pre-tax profit, estimated to fall approximately 50% year-on-year, driven by elevated provisioning costs and a deteriorating asset quality with NPL ratio reaching 5.6%. Meanwhile, ABBank (ABB) posted an 80% profit surge, and VietinBank (CTG) achieved a milestone with total assets exceeding VND 3 million billion. The results highlight a stark divergence in performance among Vietnamese banks.

Key Facts

• Sacombank’s H1 2026 pre-tax profit is estimated at VND 1,900-2,000 billion, down ~50% YoY.
• Provisioning costs for STB are estimated to surge to over VND 4,700 billion, among the highest in the banking sector.
• STB’s NPL ratio is estimated at 5.6%, a significant increase from previous levels.
• ABBank reported H1 2026 pre-tax profit of VND 3,016 billion, up 80% YoY, achieving 67% of its full-year target of VND 4,500 billion.
• ABB’s total assets reached VND 260.65 trillion, with NPL ratio controlled at 0.55% and CAR above 12%.
• VietinBank’s total assets as of May 31, 2026, reached approximately VND 3 million billion, up 6% from the start of the year.
• STB closed at VND 70,100 on July 10, 2026, down 1.27% on the day.

What Happened

According to a press briefing, Sacombank CEO Loic Faussier disclosed that the bank’s H1 2026 pre-tax profit is estimated at only VND 1,900-2,000 billion, a decline of about 50% compared to the same period last year. He attributed the drop to high capital costs, legacy issues, and a sharp rise in provisioning expenses, which are expected to exceed VND 4,700 billion. The NPL ratio is estimated to have jumped to 5.6%, and Faussier noted that the bank is in a “very difficult” situation, with NPLs potentially rising further. The exact figures are still being finalized and will be released in the official financial report.

In contrast, ABBank announced strong H1 results with pre-tax profit of VND 3,016 billion, up 80% YoY, reaching 67% of its full-year plan. The bank maintained a low NPL ratio of 0.55% and a high CAR of over 12%. VietinBank Chairman Tran Minh Binh reported that the bank’s total assets reached VND 3 million billion as of May 31, 2026, a 6% increase from the start of the year, despite challenging conditions in the banking sector.

Market Context

STB shares on HOSE closed at VND 70,100 on July 10, 2026, down 1.27% on the day, reflecting investor concerns over the earnings miss and rising NPLs. The banking sector overall has been under pressure from tight liquidity and margin compression, but the divergence is evident: ABB shares rose 3.53% to VND 17,600 on the same day, while CTG shares fell 1.03% to VND 33,700. STB’s NPL ratio of 5.6% is significantly above the industry average, which has been around 2-3% for most banks.

Strategic Significance

Sacombank’s sharp profit decline and NPL spike underscore the lingering impact of its legacy bad debt problems, which have weighed on the bank for years. The high provisioning costs suggest that asset quality recovery remains elusive, and management’s cautious outlook implies further headwinds. This contrasts with ABB’s strong performance, driven by effective cost control and asset quality management, and CTG’s steady asset growth, reinforcing its position among Vietnam’s largest banks. For STB, the key challenge is to contain NPLs and restore profitability, which will require successful resolution of bad debts and improved net interest margins.

What to Watch

• Official H1 2026 financial statements from STB, expected in the coming weeks, for exact profit and NPL figures.
• STB’s NPL ratio trend in Q3 2026 and any updates on bad debt resolution.
• ABB’s ability to sustain profit growth and meet its full-year target of VND 4,500 billion.
• CTG’s Q2 2026 earnings and whether total asset growth translates into higher profitability.
• Sector-wide credit growth and NIM trends, as they will impact all banks’ performance.