F88 records positive asset quality and business performance in Q1

According to a report released on May 6, F88’s total outstanding loan balance reached VND3.28 trillion ($126.3 million) in the first three months of 2025, up 25 per cent on-year. The company posted revenue of VND820 billion ($31.6 million) in the first quarter, up 21.5 per cent on-year. With double-digit growth in outstanding loans, disbursements, and revenue, F88 recorded a pre-tax profit of VND132 billion ($5 million), up 204 per cent against the first quarter of 2024.

"F88 has continued to maintain its recovery momentum for the past five consecutive quarters. This shows that we are on the right track in refining our business strategy while our operating activities become more efficient and sustainable," said Phung Anh Tuan, general director of F88.

According to Tuan, sustainable development is a cornerstone of F88’s operations. The company is dedicated to helping disadvantaged people who lack access to financial services from banks and financial institutions due to stricter demand. In the first quarter, the company recorded an increasing number of new customers. The number of returning customers to F88’s services climbed by 48 per cent on-year. This indicates that more and more customers are placing trust in F88.

Improving asset quality

In addition to expanding business activities, the company is focusing on controlling risks, enhancing asset quality, and improving capital efficiency. The net write-off ratio – reflecting the company's bad debt level – decreased from 3.48 per cent in Q1/2024 to 2.78 per cent in Q1/2025, demonstrating better credit risk control.

Customers paying debts on time reached an average ratio of 84.1 per cent, up 81.6 per cent on-year, thanks to the recovery in customers' debt repayment capacity and measures to tighten business risk appetite. Return on equity – one of the important indicators reflecting the company's operating efficiency – reached 23.51 per cent, more than double on-year.

In the first three months of the year, F88 continued to maintain a liquidity safety ratio of over 100 per cent, 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 its debt/equity ratio at a safe level of 1.7x since the beginning of the year.

Thanks to the significant improvement in asset quality, FiinRatings upgraded F88’s credit rating outlook from 'Stable' to 'Positive’ in April. At the same time, the company also issued a bond lot worth VND150 billion ($5.77 million) for its business expansion plan.

The achievements in the first quarter create a solid stepping stone for the company to achieve its goals in the second quarter and 2025. The company forecasts that outstanding loans and disbursements could increase by 5-10 per cent in the second quarter, while pre-tax profit will jump by 20 per cent compared to the first quarter. According to FiinRatings’s projection, F88 will record an after-tax profit of VND500-700 billion ($19.5-27.3 million) in 2025-2026.

Positive outlook

F88 remains upbeat about its business performance this year thanks to its partnership with major partners. In April, F88 entered into a comprehensive strategic partnership with a large Vietnamese corporation. The partnership will allow F88 to expand its financial services network through more than 10,000 transaction points nationwide, especially in remote areas where customers don’t have access to financial services.

F88 will conduct the second phase of its cooperation with MB Bank, opening a series of new utilities for customers at F88 branches. People can open accounts and deposit and withdraw money from MB Bank 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 consumer finance.

F88 receives highest ESG score F88 Business JSC received an ESG Score of A from Synesgy, the highest score for compliance with ESG (environmental, social, and governance) principles.

F88 partners with MB to transform over 850 financial stores into bank offices Military Commercial joint-stock bank (MB) and F88 signed a comprehensive cooperation agreement at MB's headquarters in Hanoi on December 16.

F88’s credit outlook upgraded following business advantages and improved asset quality FiinRatings upgraded F88’s credit rating outlook from 'Stable' to 'Positive’ on April 2, 2025, citing significant improvements in asset quality and the company’s strengthened leadership position in the alternative lending market.