STRONG GROWTH ACROSS BUSINESS SEGMENTS

On July 30, 2025, SHB released its Q2 2025 financial statements, reporting impressive business performance. Key highlights include:

• Credit growth in 1H 2025 reached 14.4%, surpassing the industry average. Risk management capabilities remained strong, as the NPL ratio decreased by 34bps YTD and the NPL coverage ratio improved significantly.
• Net interest margin (NIM) rose sharply, contrary to the market trend. SHB’s NIM in Q2 2025 reached 4.76%, up 54bps QoQ, thanks to its credit strategy focusing on the real estate sector with medium- to long-term loans, as opposed to mortgage lending like many peer banks.
• Non-interest income in 1H 2025 surged by 163% YoY, with improvements across all areas including service fees, foreign exchange trading, securities trading, and other income from bad debt resolution.
• SHB recorded VND 430 billion in bad debt recovery in 1H 2025, up 51% YoY. The formalization of Resolution 42 into law is expected to provide a solid legal framework, enabling SHB to accelerate its bad debt resolution process and strengthen its financial foundation.
• SHB is expected to maintain high growth in the second half of 2025, supported by a low base in the same period of 2024.
• Valuation metrics of SHB remain among the lowest in the banking sector. The current average P/B ratio of the sector is 1.57x, compared to SHB’s 1.11x. Given its current operational performance, we believe SHB deserves a higher valuation.

Other Information

• SHB has received approval to increase its charter capital through a 13% stock dividend issuance, expected to be implemented in Q3 2025.
• The divestment of SHB Finance is still ongoing, with the next payment from the buyer anticipated in the second half of 2025 to 2026.