...IDR Driven by State Support: The Long-Term Issuer Default Ratings (IDR) of Saigon-Hanoi Commercial Joint Stock Bank (SHB) are driven by Fitch Ratings' expectation of support from the state, in times of need, as indicated in its Government Support Rating (GSR). The rating balances the state's strong propensity to support the banking system against SHB's moderate systemic importance, with market share of about 3%-4% in system assets and deposits. Standalone Rating Supported by Profitability: SHB's Viability Rating takes into account its reasonable domestic franchise that has helped the bank to generate consistent business volumes and profitability in recent years. It also considers the bank's improved capitalisation and its high loan portfolio collateralisation that should help to temper impairment risks to its balance sheet. Tariff to Temper Economic Growth: Vietnam's economy grew by 7.1% in 2024 and 6.9% in 1Q25, providing a conducive environment for banking business to expand. Rising trade...
