Sacombank Cuts Lending Rates 2% After PM Meeting, NIM Drops to 0.79%

Overview

Sacombank (STB) announced a 2% per year reduction in lending rates for import-export customers, effective August 13, 2026, immediately following the Prime Minister’s working session with the banking sector. The bank will also trim its net interest margin (NIM) from approximately 2.79% to 0.79% to support businesses. This policy-driven move affects STB, listed on HOSE, and signals a broader trend of rate cuts in Vietnam’s banking system.

Key Facts

• Sacombank cuts lending rates by 2% per year for import-export customers, both new and existing, from August 13 to December 31, 2026.
• The bank’s net interest margin is reduced from about 2.79% to 0.79%.
• The program applies to a loan portfolio of nearly VND 100,000 billion in the import-export segment.
• Additional preferential credit programs for priority sectors, business households, and FDI enterprises total VND 10,000-15,000 billion.
• Expected lending rates for these programs are 8.5-9% per year, varying by customer segment and tenor.
• The announcement follows the Prime Minister’s meeting with the State Bank of Vietnam (SBV) and credit institutions on August 13.
• STB closed at VND 74,100 on August 12, 2026.

What Happened

Sacombank announced the rate cut on August 13, 2026, shortly after the Prime Minister’s working session with the SBV and the banking system. The bank said it would proactively narrow its net interest margin to 0.79% to support enterprises, while also outlining plans to channel credit into priority sectors, business households, and FDI firms.

Specifically, Sacombank committed to implementing a preferential credit package for import-export customers, leveraging its nearly VND 100,000 billion portfolio in this segment. The 2% rate reduction applies to both new and existing customers until December 31, 2026. Additionally, the bank is rolling out credit programs for priority sectors, business households, and FDI enterprises with a total scale of VND 10,000-15,000 billion, at expected rates of 8.5-9% per year.

CEO Loic Faussier emphasized that rate cuts must be based on improved operational efficiency and sustainable cost control. He noted the bank is cutting costs, optimizing operations, accelerating digital transformation, and raising labor productivity to create room for further rate reductions.

Market Context

STB, listed on HOSE, closed at VND 74,100 on August 12, 2026. The rate cut comes amid a broader government push to lower lending rates to support economic growth. Vietnamese banks are under pressure to reduce margins, which could impact profitability across the sector. STB’s move to cut NIM by 200 basis points is significant, as it directly affects its interest income. The banking sector has been a key driver of the VN-Index, and policy-driven rate cuts may weigh on bank stocks in the near term.

Strategic Significance

For long-term investors, this rate cut reflects Sacombank’s strategic alignment with government policy, potentially enhancing its reputation and customer loyalty in the import-export segment. However, the sharp NIM reduction could pressure near-term earnings. The bank’s focus on cost optimization and digital transformation may help mitigate the impact. This move also underscores the competitive dynamics in Vietnam’s banking sector, where policy compliance and market share gains often come at the expense of margins. Investors should assess whether Sacombank’s volume growth and cost efficiencies can offset the margin compression.

What to Watch

• Q3 2026 earnings report to gauge the impact of NIM compression on net profit.
• Any further rate cuts or policy directives from the SBV or Prime Minister.
• Sacombank’s loan growth in the import-export segment and overall credit expansion.
• Changes in the bank’s cost-to-income ratio and operational efficiency metrics.
• Market reaction of STB stock price and sector peers following the announcement.