HSBC Vietnam incurs 9.3% drop in H1 net profit on weaker lending

HSBC Bank (Vietnam) Ltd. reported a 9.3% drop in H1/2025 net profit to about VND1.62 trillion ($61.3 million), pressured by weaker lending, according to its financial statements.

Net interest income fell 9.2% year-on-year to VND2.89 trillion ($109.38 million), while revenue from services dropped 10.3% to VND431 billion ($16.3 million).

The bank posted a trading loss of VND1.7 billion ($64,340) from securities, reversing a profit of nearly VND4.9 billion ($185,460) a year earlier.

The firm’s foreign exchange segment stood out with net gains surging 50.9% year-on-year to VND517 billion ($19.57 million).

In H1, the lender’s operating income slipped 4% while operating costs rose more than 12%, dragging operating profit down 15%. Although loan-loss provisions were reduced by nearly 70%, they were insufficient to offset weaker revenues.

As of June 30, HSBC Vietnam’s total assets hit VND134.1 trillion ($5.08 billion), with both deposits and loans down 4.7-4.8%. Customer deposits stood at nearly VND109 trillion ($4.13 billion), while loans totaled VND66 trillion ($2.5 billion), resulting in a loan-to-deposit ratio of 61.6% – significantly lower than that of local peers.

HSBC Vietnam reported total capital of VND21.5 trillion ($813.75 million), including Tier 1 capital of VND21.1 trillion (798.6 million) and Tier 2 capital of VND398 billion ($15.06 million).

The lender’s liquidity coverage ratio stood at 26.9%, while its ratio of short-term funding to medium- and long-term loans remained negative, reflecting unused long-term funding capacity.