HSBC Vietnam’s post-tax profit falls one third in H1

HSBC Bank (Vietnam) Ltd., under London-headquartered lender HSBC, recorded a post-tax profit of VND1,787.1 billion ($72.8 million) in the first half of this year, down 32.5% year-on-year.

According to the bank’s financial statements, its net interest income decreased 20.5% year-on-year to VND3,179.3 billion ($129.5 million).

Other major incomes included VND480.4 billion ($19.6 million) from net fee and commission income, VND342.9 billion from forex trading, and VND4.9 billion from trading of held-for-trading securities.

HSBC Vietnam paid corporate income tax of VND450.1 billion ($18.3 million) in the six-month period, down 33% year-on-year.

Notably, HSBC Vietnam’s capital adequacy ratio (CAR) improved from 18.38% by end-2023 to 19.03% by end-H1/2024. Its non-performing loans went up 55% to VND597.1 billion ($24.3 million) in the period.

The bank said its net asset fell 21.4% to VND128,956.4 billion ($5.25 billion) by end-H1/2024 from end-2023. It included loans to customers of VND68,829.9 billion.

Its deposits from customers fell 25% to VND101,704.1 billion in Jan-June.

The lender reported its total deposit received and valuable paper issued reached VND2,432.5 trillion ($99.1 billion) as of end-H1/2024.