F88, which owns 99.99 per cent of F88 Business Joint Stock Company – a leading player in Viet Nam’s alternative finance sector. This sector, which includes non-traditional lending activities, now accounts for 88.1 per cent of F88’s total revenue. Additionally, F88 holds controlling stakes in the Green House Insurance Joint Stock Company and the Ffintech Joint Stock Company.
In its latest report to investors, F88 revealed that its after-tax profit for the fourth quarter reached VND163 billion, bringing the total after-tax profit for 2024 to VND351 billion. This impressive profit growth is attributed to a surge in net revenue and the ongoing success of F88’s cost optimisation strategy.
Total revenue for 2024 stood at VND3.347 trillion, up by over 23.2 per cent compared to 2023.
The majority of this revenue – 88.1 per cent – came from asset-backed lending, primarily through motorbike and car registration-backed loans. The insurance business contributed 11.8 per cent to the overall revenue. Despite the revenue boost, F88 managed to reduce its cost income ratio (CIR) by 12.6 per cent compared to the previous year, a clear sign of enhanced operational efficiency.
F88’s total loan balance by the end of 2024 reached over VND4.58 trillion, with total disbursements hitting VND12 trillion, representing growth of 22.7 per cent and 8.5 per cent, respectively, compared to 2023. Significantly, the company reduced its net write off ratio by two-thirds, reflecting the reduction of non-performing loans.
The company also demonstrated impressive capital mobilisation, raising VND633 billion in Q4 2024 alone. F88 met 100 per cent of its obligations and commitments to investors, and its debt to equity ratio (D/E) remained below three – a level considered safe by Finn Ratings in comparison to industry averages.
Beyond financial metrics, F88’s announcement highlighted its focus on sustainable growth. A key area of success has been the expansion of its alternative finance store network, which has broadened financial access for a large customer base, particularly those who do not qualify for traditional bank loans. In Q4 2024 alone, F88 opened 39 new stores, bringing its total to 868, solidifying its position as the owner of Viet Nam’s largest state-licensed alternative finance store chain.
F88 has also placed a strong emphasis on customer service, with the company’s Customer Satisfaction Score (CSTA) for Q4 2024 reaching 87 per cent. The rate of returning customers stood at 53.6 per cent, further evidence that F88 is successfully building customer loyalty.
These achievements are the result of ongoing efforts to improve product quality, diversify financial offerings based on customer research, accelerate digital transformation, and form strategic partnerships with major players in the financial sector, such as Military Bank. Additionally, F88 has refined its debt reminder processes and customer experience initiatives.
Looking ahead to 2025, F88 plans to expand its network to 888 financial stores by the first quarter and aims for 100 per cent of stores to be profitable by the second quarter. The company will also enhance collaborations with nationwide distributors to offer motorbike and car registration-backed loans, along with other financial products, to customers across all villages and communes in Viet Nam.
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