Vietnam's property market promising, safe, efficient: Saigon-Hanoi Bank chairman

Vietnam’s real estate market, depite its ups and downs, is "promising, safe, and efficient", as demand for housing and commercial services is large, said Saigon-Hanoi Bank (SHB) chairman Do Quang Hien.

Hien made the statement at the Hanoi-based private bank’s 2025 AGM on Tuesday, adding that SHB-funded real estate projects are also "promising, safe, and efficient".

"People's demand for housing and commercial services is still large, underpinned by genuine investment and real price growth, so the market is promising," he added.

Real estate loans currently make up about 24.5% of SHB’s outstanding loans. However, non-performing real estate loans are low, only 0.5% of the bank's real estate lending and a mere 0.1% of its total outstanding loans.

"We can confirm it's very safe," SHB CEO Ngo Thu Ha reassured shareholders, citing the above figures.

According to Ha, the bank’s bad debt coverage ratio stands at around 70%. While this ratio is not particularly high, it remains safe, as the total value of collateral at SHB exceeds VND1.2 quadrillion ($46.23 billion), of which outstanding loans account for only 47%.

Responding to shareholders’ concern over the impact of the U.S. tariffs, chairman Hien said the impact would not significant. "SHB has already prepared plans and is committed to supporting businesses in overcoming the challenge and growing together."

Regarding the dividend issue, Hien said that the bank always aims to distribute dividends as soon as approved by the AGM. However, it must comply with regulatory requirements.

"The board of directors will make efforts to ensure the dividend payout occurs before October, or ideally in September," he said.

Concerning the stock price, Hien emphasized that SHB’s intrinsic value is significantly higher than its current market price.

He also provided updates on SHB’s plan to build a new headquarters in central Hanoi, noting the municipal People’s Council has approved the project’s planning.

The 14-story building will span over 2,300 square meters with frontage on three streets. The bank is completing final approval procedures, and construction is expected to begin by year-end, he said.

According to the board of directors’ report, the bank, listed on the Ho Chi Minh Stock Exchange as SHB, posted a pre-tax profit of VND11,339 billion ($436.81 million) in 2024.

After tax and fund allocations, its profit stood at VND7,305 billion ($281.41 million), bringing its cumulative profit to VND8,273 billion ($318.7 million).

The AGM approved a plan to allocate VND7,317 billion ($281.87 million) for dividend payments in 2025, representing a payout ratio of 18%, including 5% in cash and 13% in shares. This reflects an increase from 2024, when SHB paid a 16% dividend with 5% in cash and 11% in shares.

With the planned 13% share dividend, SHB’s charter capital will rise by VND5,285 billion ($203.57 million), from VND40,657 billion to VND45,942 billion ($1.77 billion).

For 2025, the AGM approved a plan targeting a pre-tax profit of VND14,500 billion ($558.6 million), up 25% from the previous year.

SHB’s total assets are expected to rise 11% to VND832,221 billion ($32.06 billion), while total credit outstanding is projected to grow about 13% to VND617,624 billion ($23.8 billion). The non-performing loan ratio is expected to stay below 2%.

The AGM also approved the appointment of an independent member of the board of directors for the 2022-2027 term, Phan Dang Tuat.

Tuat, born in 1957, is an associate professor and a doctor of economics. He is currently chairman of the Vietnam Association of Supporting Industries. Previously, he was chairman of leading brewer Sabeco (2012-2015) and a standing member of the Ministry of Industry and Trade's department of enterprise innovation and development.

On the HoSE, SHB closed Tuesday at VND13,200 ($0.56) apiece.