Saigon-Hanoi Bank, listed on the Ho Chi Minh Stock Exchange under the ticker SHB, is a Vietnamese commercial bank. In the first half of 2024, SHB’s total operating income declined by 9.5 percent year over year, reaching US$411.5 million
Net interest income declined by 3.7 percent, in contrast to the broader trend where banks like VPBank, HDBank, and VietinBank saw significant growth in net interest income during the first half of the year. Of note, SHB’s credit growth declined slightly by 0.3 percent in the first quarter of 2024. In response, the bank reduced lending interest rates in late March to compete for credit demand, however, this led to a drop in its net interest margin.
Additionally, SHB’s non performing loan rose from 2.85 percent at the end of 2023 to 3.02 percent by the second quarter of the year.
Despite a decline in total operating income, profit before tax grew by 13 percent, reaching US$276.8 million, due to SHB’s reduced credit risk provisioning compared to 2023. The loan-loss reserve fell from 78 percent at the end of 2023 to 63 percent by the second quarter of 2024.
Weak business performance has caused SHB shares to move sideways from the start of 2024 through October 9, while many banks have experienced sharp gains.
Disclosure: The author does not have any financial interest in SHB stock.