MWG recorded nearly 7,000 billion VND in short-term loans with partner companies enjoying interest rates - Photo: QUANG DINH
As a "giant" in the retail sector, Mobile World Investment Corporation (MWG) is emerging with a "side job" in finance, earning hundreds of billions of dong.
Mobile World's financial revenue is growing
In the first quarter of 2025, MWG recorded revenue from financial activities of up to VND 693 billion, an increase of 18% over the same period last year.
Most of the above figure comes from interest on deposits, loans and bonds with 636 billion VND, the remaining revenue from payment discounts is nearly 56 billion VND...
According to the financial report for the first quarter of this year, MWG reported pre-tax profit of VND1,934 billion, up 60% over the same period. Revenue from finance contributed 36% of total profit.
The contribution rate from bank deposits, loans, payment discounts, etc. is increasingly large in MWG's business results.
Last year, when the retail market recovered but was still quite sluggish, MWG's financial revenue still grew well, reaching VND2,376 billion. This level was equivalent to nearly 50% of the company's consolidated pre-tax profit.
Even in 2023, revenue from financial activities will be a "savior" for MWG's business results, avoiding having to record a year of loss.
Meanwhile, in 2020, MWG's interest from deposits, loans and investments was only equivalent to about 15% of total pre-tax profit.
Looking at the data, it can be seen that the "side job" of lending was born from the end of 2022, but it was not until 2024 that this retail giant focused its efforts and achieved clearer results with this activity.
Revenue from financial activities increasingly contributes to MWG's profit structure - Data: Consolidated financial statements
How does Mobile World 'trade money'?
At the end of the first quarter of 2025, MWG's financial report recorded nearly VND 42,000 billion in short-term loans, bond investments, bank deposits and other interest-bearing investments. This is a record high for MWG to date.
According to the explanation, MWG has 7,000 billion VND in short-term loans to partner companies, with terms of less than 12 months, and interest rates.
In addition, MWG has more than 22,300 billion VND deposited in banks and nearly 12,300 billion VND invested in bonds and investments with terms from 1 month to less than 1 year earning interest.
The data also shows that lending activities to other companies began to appear in financial statements from 2020 with the figure of VND80 billion. But it increased sharply in the past two years and reached a peak of nearly VND7,000 billion at the end of the first quarter of this year.
Data: Financial statements
Late last year, VPBank and Mobile World signed a cooperation agreement to deploy a payment agent model for the first time in Vietnam.
Customers can perform deposit/withdrawal/money transfer services at 3,000 Mobile World and Dien May Xanh stores as if they were at a VPBank branch.
Mobile World has also partnered with Viettel to provide money transfer services to bank accounts at their stores.
Along with the cooperation in providing financial services, Mobile World's financial reports regularly record "payment discounts" of several hundred billion VND. Last year, the payment discount recorded by MWG was 220 billion VND, and in 2023, it was 335 billion VND.
In contrast, MWG also recorded short-term loans of VND 26,222 billion at the end of the first quarter of 2025, down nearly 4% compared to the beginning of the year.
In 2024, MWG increased its short-term loans, including more than VND20,800 billion in unsecured loans from banks. This loan matured in April this year.
Financial investment "cool" but CEO of Mobile World affirms to always be cautious
At the recent 2025 annual general meeting of shareholders, a shareholder asked MWG's board of directors about the current and future financial investment space as well as the risks of this field.
Responding, Mr. Vu Dang Linh - General Director of MWG - said that the company's core business is still retail business. However, thanks to retail activities, MWG has some advantages in cash flow and the company exploits this for financial investment.
When the cash flow is stable and there are opportunities, MWG will use it for financial investment. However, Mr. Linh affirmed that the company is still very cautious, mainly depositing in banks or transacting with reputable partners.
Source: https://tuoitre.vn/lo-dien-tay-buon-tien-mat-tay-mang-ten-the-gioi-di-dong-20250501102557249.htm
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