After a comprehensive restructuring process with the support of two leading domestic and international financial institutions, VPBank and SMBC, FE CREDIT has reshaped its growth model towards sustainability and better risk control. The company has shown a clear improvement in financial indicators, with 5 consecutive quarters of positive profits.
Shifting to a sustainable development model, FE CREDIT maintains stable profits
After a comprehensive restructuring period, SMBC Vietnam Prosperity Bank Finance Company Limited (FE CREDIT) has recorded a clear recovery, demonstrated by 5 consecutive profitable quarters since the second quarter of 2024. Specifically, in the first two quarters of 2025, FE CREDIT achieved pre-tax profit of nearly VND 270 billion. Disbursement revenue in the first 6 months of the year increased by 19% over the same period, signaling that customers' spending needs are returning.
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| Shifting to a sustainable development model, FE CREDIT reports profits for 5 consecutive quarters |
At the same time, key financial indicators all showed excellence. For example, the minimum capital adequacy ratio (CAR) reached over 15%, significantly higher than the minimum requirement of 9% of the State Bank; the cost-to-income ratio (CIR) was only around 26.2%, among the best in the consumer finance market, reflecting efforts to improve operational efficiency and optimize costs.
Continuing to affirm its number one position in the Vietnamese consumer finance industry, as of the end of June, FE CREDIT's total assets reached more than VND 66,400 billion, surpassing other companies in the same industry and playing an important role in the financial ecosystem of its parent bank. Previously, in 2024, FE CREDIT achieved pre-tax profit of nearly VND 515 billion, marking its return after a two-year period of comprehensive restructuring (2022 - 2023).
FE CREDIT's recovery momentum comes from extensive strategic transformations, including the implementation of a corporate governance model, effectively exploiting the advantages of the VPBank ecosystem as well as the global vision of strategic shareholder SMBCCF. In particular, the "Customer-centric" orientation continues to play a guiding role throughout all business activities and product development.
At the same time, timely adjustments in business operations, optimization of operating costs and enhanced risk management control have brought positive results to FE CREDIT. The company has focused on diversifying its product portfolio, developing strategic, less risky segments such as loans to buy motorbikes, phones and household appliances, gradually reducing its dependence on cash loans, thereby contributing to controlling credit risks. At the same time, FE CREDIT has continuously expanded its cooperation with partners in many fields such as motorbikes, electronics, household appliances, insurance (OPES)...
At the same time, the company screens and focuses on customer segments with good credit history or stable income; invests heavily in technology, and comprehensively digitizes the customer experience journey. The company upgrades the multi-tasking financial application FE ONLINE 2.0 - a comprehensive version with a smooth and convenient experience. The application integrates multiple functions, from flexible cash loans, opening credit cards, providing digital banking services to utilities that help track and manage loans with just a few simple operations on the phone.
Firmly entering the new growth cycle
Not stopping at stable business results, FE CREDIT's growth prospects in the coming period are forecasted very positively by domestic and international organizations. In the most recent assessment, Moody's maintained FE CREDIT's credit rating, while raising the outlook to "Stable" and assessing the independent capacity to B3. Moody's recognized the company's progress in restructuring its credit portfolio, strengthening cooperation with retail and corporate partners, and promoting digitalization.
Besides, domestic units such as SHS Securities, MBS Securities, VIS Rating all gave an optimistic view on the prospects of the consumer finance industry in general and FE CREDIT in particular.
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| FE CREDIT is forecasted to have positive prospects by domestic and international organizations. |
In a recent analysis report, SHS Securities believes that FE CREDIT's performance will continue to recover in 2025, supported by an 8% GDP growth, loose monetary and fiscal policies, improved labor income and low interest rates. At the same time, expanding cooperation with retailers, focusing on key products such as electronics and two-wheeled motorbikes, along with a strategy to diversify customer base will help the company expand its market share again.
SHS also appreciated FE CREDIT’s efforts to standardize lending and credit scoring processes to control bad debt risks. The integration of electronic identification technology is contributing to improving debt collection efficiency, while helping the company to more accurately assess the creditworthiness and debt repayment awareness of individual customers.
Similarly, MBS Securities has positive expectations for the recovery of consumer finance in the second half of the year thanks to macroeconomic and legal factors. In the medium term, in the context of Vietnam's GDP per capita forecast to increase by about 5.5% in the period 2025 - 2030, MBS estimates that consumer credit will maintain an average growth rate of about 20%/year in the next two years. VPBank and FE CREDIT are among the units that will benefit from the expansion trend of the consumer finance market, according to analysts.
Compared to other companies in the same industry, FE CREDIT is possessing a superior advantage thanks to the support of two leading financial institutions in Vietnam and Japan. According to VIS Rating's analysis, the support of VPBank and SMBCCF has helped the company overcome the inherent weaknesses of consumer finance businesses: a large dependence on short-term capital sources and the possibility of being affected by market sentiment. Thanks to that, the company not only maintains a stable capital base but is also ready to make a strong breakthrough in the new growth cycle of the market.
Source: https://baodautu.vn/chuyen-dich-sang-mo-hinh-phat-trien-ben-vung-fe-credit-bao-lai-5-quy-lien-tiep-d345259.html
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