SHB Chairman Do Quang Hien: Seeking Long-Term Foreign Strategic Investor as Q1 Profit Rises 7%

Overview

SHB (Saigon-Hanoi Commercial Joint Stock Bank) announced a 7% year-on-year increase in Q1 2026 pre-tax profit to 4,660 billion VND. At the annual general meeting on April 22, Chairman Do Quang Hien revealed that the bank is in talks with multiple foreign investors but is prioritizing a long-term strategic partner over short-term price gains. The bank also provided updates on its subsidiaries in Laos and Cambodia.

Key Facts

• Q1 2026 pre-tax profit reached 4,660 billion VND, up 7% YoY.
• Total assets stood at 930,900 billion VND as of end-Q1, up 4.4% from end-2025.
• Deposits reached 672,000 billion VND (+4.5% vs end-2025); credit outstanding was 632,800 billion VND (+2.15%).
• Capital adequacy ratio (CAR) at 12.6%; loan-to-deposit ratio (LDR) at 77% (below the 85% regulatory ceiling).
• Liquidity reserve ratio at 17%, above the 10% minimum.
• Chairman Hien stated the bank expects to select a foreign strategic partner in 2026.
• SHB is also pursuing the sale of its banks in Laos and Cambodia, with the Laos transaction already submitted for approval.

What Happened

At SHB’s 2026 annual general meeting on April 22, Chairman Do Quang Hien addressed shareholder questions about foreign investment. He noted that Vietnam’s potential stock market upgrade has attracted interest from many foreign investors, but SHB is being selective. “Finding an investor to boost the stock price is not difficult, but we want a loyal partner,” Hien said, emphasizing criteria such as long-term commitment, governance participation, technology transfer, and supply chain integration.

CEO Ngo Thu Ha reported the Q1 financial results, highlighting steady growth in assets, deposits, and credit. The bank’s key safety ratios remain well within regulatory limits. On the divestment of subsidiaries in Laos and Cambodia, Hien said the Laos plan has been submitted to the Lao central bank, while the Cambodia process faces headwinds due to recent market turbulence linked to a Chinese conglomerate.

Market Context

SHB shares closed at 15,000 VND on April 15, down 0.33% with volume of 27.7 million shares. The stock trades on HOSE. The banking sector has been under pressure from margin compression and regulatory changes, but SHB’s Q1 profit growth and capital strength provide a positive narrative. The search for a foreign strategic partner aligns with broader industry trends as Vietnamese banks seek to improve governance and technology to meet international standards.

Strategic Significance

SHB’s deliberate approach to foreign partnership signals a focus on long-term value creation rather than short-term stock price manipulation. A strategic investor with expertise in risk management, digital banking, or cross-border capabilities could enhance SHB’s competitive position. The planned divestment of overseas units, if executed smoothly, would streamline operations and free up capital. The bank’s strong capital and liquidity ratios provide a buffer for potential deal-making.

What to Watch

• Announcement of a foreign strategic partner, expected within 2026.
• Progress on the sale of SHB’s banks in Laos and Cambodia, including regulatory approvals.
• Q2 2026 earnings release to confirm profit growth trajectory.
• Any changes in foreign ownership limits or regulatory policies affecting bank M&A.
• SHB’s NPL ratio and credit quality trends amid economic uncertainty.