FiinRatings recognized Home Credit Vietnam as the most effective recovery enterprise in the consumer finance industry in 2024. The company achieved a net profit of VND 1,290.9 billion, an increase of nearly 244% compared to 2023 (VND 375.3 billion).
The product portfolio is flexibly distributed: cash loans account for more than 53%, consumer loans 24.7%, motorbike purchases 9% and revolving credit 13.1%. Net fee income from insurance increased from 3.5% to 14% of total operating income, thanks to a wide distribution network of 13,000 partners and 21,000 service points (POS), reaching more than 16 million customers in the past 17 years. This diversity helps the business reduce dependence on interest, increase cash flow sustainability and stabilize long-term profits.
In terms of efficiency, Home Credit Vietnam recorded a net interest margin (NIM) of 28.1% – the highest in the industry. Return on assets (ROA) reached 4.9%, while return on equity (ROE) was at 18.5%.
Although the cost-to-income ratio (CIR) is at 51.5% due to strong investment in digital transformation, FiinRatings forecasts that this ratio will decrease to 48.6–49.7% in the 2025–2026 period.
FiinRatings raised the “risk position” factor in its credit rating by two notches, emphasizing that: “Home Credit Vietnam Finance Company Limited’s risk position is assessed as ‘very good’, reflecting its prudent risk appetite, quality customer portfolio and transparent governance policy.”
The average non-performing loan (NPL) ratio in the 2020–2024 period is only 3.1%, much lower than the industry average of 7.5%. In 2024 alone, the NPL ratio will decrease to 1.8%. The problem debt ratio (groups 2–5) will decrease from 11.3% in 2022 to 6.5% in 2024.
The average bad debt recovery rate over the past 5 years has reached 17.7%, nearly double the industry average of 9.9%. FiinRatings attributed this success to selective lending policies, the application of big data technology to credit assessment, and an effective fraud control system. In addition, the average bad debt write-off rate over the past 5 years has been maintained at around 10.3%, equivalent to the general market level.
The company’s liquidity is rated as “adequate”, with an average liquid assets/liabilities ratio of 16.9% and liquid assets/capital of 19.2% – both above the industry average. Despite its relatively high dependence on wholesale funding (82%), Home Credit Vietnam has been gradually reducing this ratio since 2022, while maintaining solid liquidity capacity thanks to a reasonable contingency plan.
Source: https://doanhnghiepvn.vn/kinh-te/tai-chinh-ngan-hang/cong-bo-ket-qua-xep-hang-tin-nhiem-home-credit-viet-nam/20250517064032640
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