F88 Investment Joint Stock Company (F88) has just announced its highest consolidated profit after tax since the company was established.
Along with that, many positive financial indicators show the company's rapid and sustainable recovery after a difficult year.
F88 Investment Joint Stock Company (F88) currently holds 99.99% of shares in F88 Trading Joint Stock Company - a company operating in the alternative finance sector, which includes lending activities outside the traditional financial system such as credit institutions. Currently, the alternative finance sector is contributing 88.1% to F88's revenue. In addition, F88 also holds controlling shares in two companies, Green House Insurance and Ffintech Joint Stock Company.
In the latest announcement sent to investors, F88 said that its after-tax profit in the fourth quarter reached VND163 billion, bringing the total after-tax profit in 2024 to VND351 billion. After-tax profit increased sharply thanks to the growth of net revenue along with the continued effectiveness of the strategy of optimizing operating costs. Specifically, revenue in 2024 reached VND3,347 billion, an increase of more than 23.2% compared to 2023. In terms of structure, 88.1% of revenue came from asset-backed lending activities with the main product being mortgage loans using motorbike/car registration. Insurance business contributed 11.8% of revenue to F88. While revenue increased, the cost-to-net-revenue ratio (CIR) was also reduced by 12.6% compared to a year earlier, showing a significant improvement in operating efficiency.
Total outstanding debt in 2024 reached more than VND 4,585 billion, total disbursement reached VND 12,069 billion, growth of 22.7% and 8.5% respectively compared to 2023 while the net write off ratio (net bad debt ratio) has improved significantly, only 1/3 compared to 2023. This reduction means that F88's bad debt level in 2024 has decreased to only 1/3 of 2023. Over the past year, a progressive and legal debt collection process has also been improved, thereby improving the company's debt collection activities.
Along with that is the impressive capital mobilization capacity. In the fourth quarter of 2024 alone, F88 mobilized VND 633 billion in capital and fulfilled 100% of its obligations and commitments to investors. The capital to equity ratio (D/E) remained below 3 times, a ratio that Finn Ratings assessed as safe compared to the median of the financial industry.
In addition to figures such as revenue, profit or operating cost optimization, F88's announcement also pointed out figures that are considered evidence of sustainable development. The most impressive is the expansion of the alternative finance store network, thereby increasing financial access for customers in the mass segment, mainly those who are not eligible to access financial products from credit institutions. In the fourth quarter of 2024 alone, F88 opened 39 new stores, bringing the total number of stores to 868 and consolidating its position as a business with the largest State-licensed alternative finance store chain in Vietnam.
In 2024, F88 will also focus on improving the quality of customer service. F88's Customer Satisfaction Index (CSTA) in the fourth quarter of 2024 reached 87% and the rate of returning customers reached 53.6%, proving that this business is on the way to "winning the hearts" of customers. The above results were achieved because the company focused on improving the quality of products and services, diversifying financial products based on customer segment research results, digital transformation and promoting strategic cooperation with "giants" in the financial market such as MB Bank. Debt collection procedures and solutions to improve customer experience have also been implemented. These strong changes are the driving force for strong recovery and growth in 2024.
In 2025, F88 aims to build a system of 888 financial stores from the first quarter and ensure that 100% of stores are profitable from the second quarter onwards. In addition, F88 also strengthens cooperation with businesses with a nationwide distribution system of products and services to bring loan packages using motorbike and car registration as well as other financial products to customers in all villages and communes nationwide.
Source: https://nld.com.vn/f88-ghi-nhan-351-ti-dong-loi-nhuan-sau-thue-trong-nam-2024-196250211154636282.htm
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