F88: Profit in the first quarter of 2024 reached 31 billion VND, clear recovery momentum
The strong changes in F88's management and business activities since the end of 2023 have had a positive effect. In the first quarter of 2024, the company recorded a return to profit growth, along with a clear recovery momentum, promising a breakthrough.
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| F88 recorded profit growth again in the first quarter of 2024. |
In the first quarter of 2024, the macro economy showed signs of recovery, recording a growth rate of 5.66% year-on-year (YoY), surpassing the growth rate of the first quarter of 2020-2023, but still lower than the level before the Covid-19 pandemic. The final consumption index (+4.93% YoY) contributed the most to the overall growth of the Vietnamese economy. As of March 2024, the capital mobilization level of credit institutions decreased by 0.76% compared to the end of 2023 (while in the same period in 2023 it increased by 1.17%). Credit growth for the entire economy reached 0.26% (compared to 1.99% in the same period in 2023).
In that context, F88's management and business activities in the first quarter of 2024 have improved significantly. Business activities quickly returned to growth momentum after the Lunar New Year, helping to maintain outstanding loans despite a seasonal decrease in loan demand. The rate of new customers continued to grow steadily at 9%. Revenue growth was at its highest level since the beginning of 2023, exceeding the plan by 6%, surpassing the peak of the fourth quarter of 2023 by 2%. Pre-provision operating profit (PPOP) increased by 15% compared to the fourth quarter of 2023. As a result, after-tax profit in the first quarter of 2024 reached VND 31 billion.
The reason why F88's recovery process is somewhat faster than expected can be explained by the following adjustments:
Firstly, F88's focus on better quality loans, tighter risk management and efficient collection processes have helped to positively improve Net Write-off costs, at a 46% reduction compared to the same period in 2023.
Next is having a financial foundation that is considered solid, through figures such as: Successfully mobilizing 191 billion VND of corporate bonds in the first quarter, this continues to show the trust of investors in F88, even in the context of the Vietnamese bond market being cautious from buyers or our debt to equity ratio (D/E) is still at 1.99 times, a fairly healthy level for the financial industry.
Transforming the sales team structure, increasing direct sales staff while reducing intermediate management levels... has contributed to reducing CIR by 8% and increasing labor productivity (revenue per employee) by 3% compared to IV/2023.
Continuing to put customer value at the heart of the business, overall customer satisfaction remains stable at a high level of 91%. In terms of debt collection, F88 is doing quite well compared to consumer finance industry practices, with over 89% of customers satisfied with timely debt reminders and 78% satisfied with late debt reminders.
The first quarter of 2024 also saw many community activities of F88 implemented, such as fulfilling its commitment to supporting women and gender equality through a series of impactful initiatives such as launching preferential loan packages for self-employed women, organizing media and career guidance for self-employed women with small capital, implementing gender equality training programs for employees and most importantly, launching the reality program "Green Dream" to provide financial support, advice and training for disadvantaged women across Vietnam to realize their dream of taking control of their lives.
From the positive impressions in the first quarter, F88 expects that in the second quarter, it will continue to focus on three important strategies: expanding partnerships, refining target products and optimizing performance, of which the most important is improving the customer credit scoring system, aiming to optimize provisioning costs and improve overall financial efficiency.
Source: https://baodautu.vn/f88-loi-nhuan-quy-i2024-dat-31-ty-dong-da-phuc-hoi-ro-net-d216137.html
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