F88 posts positive Q1 returns

By the end of March, the total capital mobilisation of credit institutions had decreased by 0.76 per cent since the end of 2023. Meanwhile, credit growth in the economy reached a tad over 0.25 per cent, compared with almost 2 per cent for the same period last year.

It was in this context that loan company F88 recorded several improvements in Q1, with the company returning to growth following the Lunar New Year period.

As a result, F88 can maintain its outstanding loan balance amid decreasing loan demand due to seasonal factors. F88’s new customers continue to grow stably at 9 per cent. Revenue has reached a record high level since the beginning of 2023, surpassing the yearly plan by 6 per cent and the peak level in the fourth quarter of 2023 by 2 per cent.

Pre-provision operating profit is up 15 per cent against the fourth quarter of 2023. Since then, F88 posted an after-tax profit of VND31 billion ($1.22 million) in the first quarter of 2024.

There are several factors driving the recovery of F88 faster than expected. First, F88 has focused on better-quality loans and tightened its risk management with an effective debt collection process. As a result, the company has improved its net write-off after reducing it by 46 per cent on-year.

The company also boasts a solid financial platform following a successful mobilisation of VND191 billion ($7.5 million) in Q1. The funding is a testament to investors' in the company, although buyers remain cautious in Vietnam's bond market. Its debt-to-equity ratio remains at 1.99x, quite healthy for the financial industry.

Efforts have also been made to restructure the sales team, boost direct sales personnel, and reduce middle management levels. As a result, F88 can lower its cost-to-income ratio by 8 per cent and increase labour productivity (revenue per employee) by 3 per cent compared to the fourth quarter of last year.

The company recorded a high score for customer satisfaction at 91 per cent and is doing quite well regarding debt collection. More than 89 per cent of customers are satisfied with reminders for paying debts on time, and 78 per cent are satisfied with reminders for paying debts late.

In addition, several corporate social responsibility activities were implemented by F88 in Q1. With a commitment to gender equality, F88 has carried out a slew of impactful initiatives, such as launching preferential loan packages for self-employed women; organising communication and career guidance for self-employed women; and providing gender-equality training to employees.

One of the most remarkable initiatives is the 'Giac Mo Xanh', or 'Green Dream' reality-television programme that offers financial support, mentoring, and training for disadvantaged women across Vietnam to realise their dreams.

Following its positive Q1 results, F88 will continue to focus on three important strategies in the Q2, including expanding partnerships, refining target products, and optimising performance. Among them, the most important strategy is to improve the customer credit-scoring system with a view to optimising provision costs and improving overall financial efficiency.

F88 to pilot new loan product for female entrepreneurs F88 Business JSC will pilot a new loan product for female entrepreneurs in early 2024 in a bid to advance gender equality.

F88 to sponsor gender equality promotion F88's initiatives in supporting self-employed low-income women and promoting opportunities for female employees are highly appreciated by international organisations.

F88 named among Best Workplaces in Vietnam in 2024 Among the 25 companies recognised as the Best Workplaces in Vietnam in 2024 by Great Place to Work, F88 stands out as a home-grown company alongside global brands.