Eximbank leadership churn triggers governance vulnerability

Seven board directors and board of supervisors’ members resigned in February.

Vietnam Export Import Commercial Joint Stock Bank (Eximbank)’s “volatile” leadership turnovers highlight issues in execution and strategic consistency, said S&P.

Eximbank announced in February 2026 the resignation of four board directors and four members of its board of supervisors. One board director has since rescinded his resignation.

“We believe continued instability over governance and leadership turnover highlight vulnerabilities in the bank's execution and strategic consistency,” S&P Global Ratings said. “We view Eximbank's lack of board continuity and frequent leadership changes as a source of volatility.”

Gaining market share should be the long-time endeavor, and such strategic shifts will take two to three years to gain traction or for tangible results to materialise, the ratings agency added.

Eximbank’s net profit slumped 66% in 2025 to $43.17m (VND1.14t), from $126.31m (VND3.33t) in 2024.

The bank saw a spike in provisioning costs due to a decree requiring Eximbank to write down its collateral value of some non-performing loans (NPLs) to zero and make full provisions. It also recognized more expenses in 2025 due to accounting adjustments.

“Adjustments to the bank’s reporting systems created swings in revenue recognition and introduced volatility into its 2025 reported profitability,” S&P said.

Eximbank’s net profit levels are expected to recover to its long-run average levels in 2026.

“The stable outlook on Eximbank reflects our expectation that the bank will execute on its strategic revamp and restructuring efforts, and maintain its capitalization over the next 12 months,” S&P said.

(US$1 = VND 26,339.98)