HÀ NỘI — Only a few foreign banks in Việt Nam maintained profit growth last year, while the majority of them recorded a decline due to falling core income and rising costs.

Shinhan Bank Vietnam Co., Ltd. led in pre-tax profit with more than VNĐ5.41 trillion last year, but the value decreased by 6.2 per cent compared to the previous year, online news portal doanhnhanvn.vn reported.

The decline was seen amid a 5.8 per cent decrease in net interest income to VNĐ7.96 trillion, while net income from services decreased even more sharply, by 11.6 per cent to some VNĐ298 billion.

The bank's non-interest income sources, such as foreign exchange earnings of over VNĐ803 billion and investment securities of nearly VNĐ291 billion, showed improvement, but the amount was not enough to offset the decline in net interest and service income.

Meanwhile, the bank’s operating expenses increased by 7.6 per cent to over VNĐ3.38 trillion, further narrowing the bank's profit despite an 11 per cent reduction in credit risk provision.

At HSBC Vietnam, pre-tax profit reached more than VNĐ4.14 trillion, a decrease of 6.9 per cent, hitting a four-year low. The main reason for this decline was the simultaneous decrease in both of its primary revenue sources. Specifically, net interest income decreased by 4.7 per cent to nearly VNĐ5.95 trillion, and net service income decreased by nearly 5 per cent to VNĐ853 billion.

HSBC Vietnam’s operating expenses increased sharply, by 11 per cent to nearly VNĐ3.99 trillion, further increasing pressure on profit margins. As a result, even though the bank cut its credit risk provision by 30 per cent to VNĐ243 billion, this was still insufficient to offset the decline in core income.

Hong Leong Bank Vietnam Limited ended 2025 with a pre-tax profit decline of up to 22 per cent year-on-year to VNĐ114 billion, and after-tax profit decreased from VNĐ116 billion to VNĐ90 billion.

The bank's main source of revenue, net interest income, decreased by 9.5 per cent year-on-year to VNĐ412 billion. 

Due to the decline in main revenue sources, coupled with credit risk provision costs remaining almost unchanged compared to the previous year at VNĐ14 billion, the bank still reported a decline in profit.

Profits declined even though the bank's service activities reversed from a loss of VNĐ2 billion to a profit of VNĐ247 million and the foreign exchange business brought in a profit increase of 36 per cent to VNĐ14.5 billion.

Conversely, Woori Bank Vietnam Limited (Woori Bank) recorded profit growth last year, with pre-tax profit of VNĐ1.51 trillion, an increase of nearly 10 per cent compared to the previous year. This rare result came from a 17 per cent increase in net interest income to more than VNĐ2.42 trillion, along with an 18 per cent increase in net service income to VNĐ93 billion.

Public Bank Vietnam also posted a pre-tax profit of VNĐ331 billion, an increase of 4 per cent. 

However, the bank's net interest income – its main source of revenue – decreased by 5.6 per cent to VNĐ1.22 trillion, while operating expenses increased by 17 per cent, to nearly VNĐ1.04 trillion. 

The main factor contributing to the bank's profit increase was the sharp 73 per cent reduction in credit risk provision costs, which offset the decline in business operations. — BIZHUB/VNS