Sacombank posts surprise Q4 loss

Ho Chi Minh City-headquartered Sacombank reported a surprise loss in Q4/2025, dragged down by a sharp rise in credit risk provisions.

According to disclosures, Sacombank’s consolidated pre-tax profit for 2025 is estimated at nearly VND7.63 trillion dong ($290.4 million), far below its full-year target of VND14.65 trillion approved by shareholders, meaning the bank achieved only about 52% of the year's target.

In the first nine months of 2025, the private bank had reported nearly VND11 trillion ($418.7 million) in profit, implying that the lender recorded a loss in the final quarter of the year. Most of the pressure came from a surge in loan loss provisions.

For the full year, Sacombank set aside VND11.16 trillion ($424.8 million) in credit risk provisions, compared with just over VND2.15 trillion in the first nine months. This means provisions in Q4 alone jumped by more than VND9 trillion.

Analysts say the aggressive provisioning reflects a tougher stance by the bank’s new management in dealing with legacy risks and unresolved problem assets.

Asset quality also deteriorated noticeably. The ratio of non-performing loans (NPLs) to outstanding customer loans rose to 6.31%, while the NPL ratio based on total credit exposure stood at 4.95%. The NPL coverage ratio was relatively low at 49.2%, below the industry average.

As of the end of 2025, Sacombank’s total assets were estimated at nearly VND909.1 trillion ($34.6 billion), up 21.5% from the start of the year.

Outstanding loans in the primary market reached more than VND612 trillion ($23.3 billion), up 13.5%, while customer deposits totalled VND622.35 trillion. The bank’s current account savings account (CASA) ratio remained stable at 15.15%.

Market observers said the sharp rise in bad debt could stem from more stringent loan classification or from unresolved assets carried over from Sacombank’s long-running restructuring process.

The earnings figures drew particular attention as they came shortly after Sacombank appointed Nguyen Duc Thuy as acting CEO on December 23, 2025, following his departure as chairman of Loc Phat Vietnam Bank (LPBank).

Analysts view the appointment as timely, signalling Sacombank’s intention to prioritize stronger governance, decisive execution, and a more cautious, sustainable growth strategy in the period ahead.

On Wednesday, the VN-Index which represents the Ho Chi Minh Stock Exchange (HoSE) closed up 45.31 points, or 2.49%, at a new all-time high of 1,861.58. However, STB shares went down to VND53,400 ($2.03) from the VND56,700 ($2.16) apiece on Tuesday and VND57,000 on Monday.