Shinhan Bank Vietnam's pretax profit falls 7.1% in first half on funding pressure and intensifying rate competition

[Hanoi, Vietnam = Kim Joon-seok, correspondent] Shinhan Bank Vietnam posted slightly weaker results in the first half of this year from a year earlier, hit by funding pressure, intensifying interest rate competition and higher operating costs.
According to local media on the 31st, Shinhan Bank Vietnam disclosed its business results for the first half of 2026 on the 28th. Pretax profit came to 2.59 trillion dong, or about 136.3 billion won, down 7.1% from 2.787 trillion dong, or about 146.6 billion won, a year earlier. Net profit also fell 7.3% year on year to 2.061 trillion dong, or about 108.4 billion won.
Shinhan said the results came amid mounting funding pressure and fiercer rate competition. It added that uneven loan growth across markets made it a management challenge to balance loan expansion, funding cost optimization and maintaining appropriate interest rates.
As of June 30, total assets at Shinhan Bank Vietnam stood at 246.826 trillion dong, or about 12.9908 trillion won, up about 4.2% from 236.994 trillion dong, or about 12.4733 trillion won, at the end of 2025. Outstanding customer loans rose about 6.2% to 167.638 trillion dong, or about 8.823 trillion won. The loan portfolio is diversified across retail customers, small business owners, local Vietnamese companies and foreign direct investment firms.
On the funding side, customer deposits as of the end of June totaled 132.332 trillion dong, or about 6.9648 trillion won, down slightly by about 1% from 133.613 trillion dong, or about 7.0322 trillion won, at the end of 2025. By contrast, deposits and borrowings from other financial institutions increased 10.5% from 54.323 trillion dong, or about 2.8591 trillion won, to 60.023 trillion dong, or about 3.1591 trillion won. Funding through securities issuance also rose 13.7%, from 7.535 trillion dong, or about 396.5 billion won, at the end of 2025 to 8.565 trillion dong, or about 450.7 billion won, at the end of June this year.
In terms of profitability, net interest margin stood at 3.30%. Return on assets was 1.64%, indicating solid asset efficiency, while return on equity came in at 10.45%.
Equity stood at 40.701 trillion dong, or about 2.1421 trillion won, and the capital adequacy ratio under Bank for International Settlements (BIS) standards was 20.7%, strengthening the financial base for future expansion and operations. The loan-to-deposit ratio was 82.19%, while the ratio of short-term funding used for medium- and long-term lending was 26.59%. The nonperforming loan ratio remained low and stable at 0.55%.
[email protected] Kim Joon-seok Reporter