F88: Revenue, profit and asset quality improved impressively in the first quarter of 2025

Effective and sustainable

In the latest announcement sent to investors, F88 said the total outstanding loan value disbursed in the first three months of the year reached VND3,284 billion, an increase of 25% compared to a year earlier.

The company's revenue in the first quarter reached VND820 billion, up 21.5% over the same period last year. With double-digit growth in outstanding loans, disbursements and revenue as above, F88 recorded a pre-tax profit of VND132 billion, up 204.2% over the first quarter of 2024.

“The fact that F88 has continued to maintain its recovery momentum for the past 5 consecutive quarters shows that we are on the right track in refining our business strategy and operations towards more efficiency and sustainability,” said Mr. Phung Anh Tuan, Chairman of the Board of Directors of F88.

According to Mr. Tuan, the sustainable development of F88 will be an important factor helping the company to persevere in its goal of changing the financial approach for people, especially the disadvantaged who are not eligible to access financial services from banks or financial companies that have more stringent requirements. In fact, in the first quarter, the number of new customers using F88's services for the first time continued to increase. But more notably, the number of existing customers returning to continue using the company's services increased by 48% compared to the same period last year. This reflects that more and more customers are placing their trust in F88 and considering the company as a useful financial support.

Improve asset quality

In addition to expanding its business, the company continues to focus on risk control, improving asset quality and improving capital efficiency. The Net Write-Off ratio (a ratio reflecting the company's bad debt level) decreased from 3.48% in Q1/2024 to 2.78% in Q1/2025, demonstrating better credit risk control. The average customer payment on time ratio reached 84.1%, up from 81.6% in the same period last year, thanks to the recovery in customers' repayment capacity and measures to tighten business risk appetite. The return on equity (ROE) - one of the important indicators reflecting the company's operating efficiency - reached 23.51%, more than double that of the same period in 2024.

In the first three months of the year, F88 continued to maintain a liquidity safety ratio (LDR) of over 100%, ensuring the ability to meet large disbursement needs without affecting its financial health. The company has also fully fulfilled its debt obligations and commitments to partners, while maintaining a debt-to-equity ratio (D/E) at a safe level of 1.7 since the beginning of the year. Thanks to the significant improvement in asset quality, F88 was officially upgraded by FiinRatings - a prestigious domestic credit rating organization - from "Stable" to "Favorable" in early April. At the same time, the company also successfully issued a bond lot worth VND 150 billion to serve its business expansion plan.

Positive outlook

The results achieved in the first quarter are considered a solid step to create momentum for a long jump for F88 in the second quarter and the whole year of 2025. The company forecasts that the growth of outstanding loans and disbursements in the second quarter could increase by 5% -10%, and pre-tax profit will increase by 20% compared to the first quarter. In the announcement of the decision to upgrade F88's credit outlook early last month, FinnRatings forecast that F88's after-tax profit in 2025 - 2026 could reach from VND500 to VND700 billion.

One of the factors that makes F88 confident in its business prospects this year is its cooperation with major partners. In April, the company signed a comprehensive strategic cooperation agreement with a large corporation in Vietnam to expand its network. This is the second cooperation agreement with a large domestic corporation that F88 has signed in the past 4 months, after the cooperation agreement with MB Bank. The above agreement will allow F88 to expand its financial service network through more than 10,000 transaction points nationwide, especially in remote areas - where customers do not have access to formal financial services.

In the coming time, F88 will also promote the implementation of phase 2 cooperation with the Military Bank (MB), opening a series of new utilities for customers right at F88 stores. Now people can open accounts, deposit and withdraw money from MB accounts quickly and conveniently without having to go directly to bank branches. This cooperation helps increase people's financial access and contributes to promoting comprehensive digital transformation in the field of consumer finance.

Source: https://baodautu.vn/f88-doanh-thu-loi-nhuan-va-chat-luong-tai-san-cai-thien-an-tuong-ngay-quy-i2025-d278586.html