Foreign banks HSBC and Shinhan in Vietnam report profit decline

(Dan Tri Newspaper) - While domestic banks are reporting massive profit increases, HSBC and Shinhan Bank Vietnam are reporting profit decreases. HSBC Vietnam reported a decrease of over 9%, while Shinhan Bank Vietnam reported a decrease of 12%.

HSBC Vietnam Limited (HSBC Vietnam) has just released its financial report for the first half of 2025. The report shows net interest income reaching VND 2,888 billion, lower than the VND 3,179 billion recorded in the same period last year.

In addition, net profit from services decreased by more than 10%, while securities trading activities recorded a loss of over 1.7 billion VND.

Conversely, some segments recorded positive results. Specifically, foreign exchange trading generated 517 billion VND, an increase of over 50% compared to the same period last year. Other business activities reached 133 billion VND, a slight increase of over 5%.

During the period, total operating expenses increased sharply by more than 12% to VND 1,865 billion, even though the bank had cut its risk provision costs by nearly 70% compared to the same period last year.

HSBC's net profit from business operations has decreased significantly. In the first half of the year, the bank reported pre-tax profit of over VND 2,030 billion, a decrease of more than 9% compared to the same period last year.

As of June 30th, HSBC's total assets reached VND 134,062 billion, a slight decrease compared to the beginning of the year. Of this, customer deposits totaled nearly VND 108,800 billion, down almost 5%. Customer loans also decreased by nearly 5%, to over VND 65,559 billion.

Foreign banks HSBC and Shinhan in Vietnam report a decline in profits (Photo: DT).

Another foreign bank, Shinhan Bank Vietnam, also announced its 2025 half-year financial report showing a decline in profits.

During the period, the bank also recorded an 8% decrease in net interest income, reaching VND 3,923 billion. Although foreign exchange and securities investment activities improved, after deducting expenses, Shinhan Bank's pre-tax profit only reached VND 2,786 billion, a 12% decrease compared to the same period last year.

As of the end of June, Shinhan's total assets reached VND 207,177 billion, a 6.5% increase compared to the beginning of the year. Customer loan balances increased by more than 7% compared to the end of 2024, while customer deposits increased by more than 6%.

This situation is contrary to the overall picture of the domestic banking sector. Statistics from 27 domestic banks listed on the stock exchange show that in the second quarter of 2025, total pre-tax profits reached nearly VND 89,000 billion, an increase of 17% compared to the same period last year, thanks to strong credit growth, positive bad debt recovery, and stable credit costs.

For the first six months of the year, the pre-tax profits of these banks reached VND 172,000 billion, a growth of 16%.

Source: https://dantri.com.vn/kinh-doanh/ngan-hang-ngoai-hsbc-va-shinhan-tai-viet-nam-bao-lai-giam-20250929134518631.htm