On July 14, 2023, international credit rating agency Fitch Ratings (Fitch) announced that it would maintain the B credit rating and positive outlook for Mcredit. Specifically, Fitch maintained Mcredit's long-term and short-term issuer default ratings (IDR) at B, maintaining the Positive credit outlook as announced in November 2022.
With this result, Mcredit maintains Fitch's highest rating for the Vietnamese Consumer Finance market. This is the result of the group's synergy orientation, strategic capital support between Mcredit and its bank owners (Military Commercial Joint Stock Bank - owns 50%, SBI Shinsei Bank (Japan) owns 49%).
According to Fitch, Mcredit is an important member, completing MB's retail chain and MB's strategy of building consumer financial services in Vietnam. MB is deeply involved in the company's management and operations by holding key leadership positions, sharing infrastructure, information technology, risk management, customer files, product distribution channels with Mcredit, and continuously providing consistent capital support to Mcredit since its establishment in 2016.
According to Fitch, Mcredit is benefiting significantly from Shinsei Bank, especially in terms of capital and technical infrastructure. This is clearly demonstrated by historical figures on loans from Shinsei Bank, and the presence of Shinsei Bank in the management and operation of Mcredit.
In terms of the consumer finance market alone, Mcredit continues to maintain its TOP 3 position achieved since the end of 2021 and aims to reach the TOP 2 position in 2023. Mcredit has maintained a compound growth rate of 69% over the past 6 years and expects to control a "market share" of over 13% by the end of 2023. This year, Mcredit is still expected to continue to be in the top group of consumer finance companies in terms of asset quality.
In 2023, Mcredit is focusing on reducing capital costs and other operating costs through the support of good capital sources from shareholders and promoting the proportion of digitalization in internal operating processes. The effect of the digitalization process initiated in 2020 has helped the Company's operating costs to revenue continuously decrease, specifically reflected in the Company's net profit margin index for 3 consecutive years (2020 - 2021 - 2022) has improved with the corresponding levels: 8.7% - 13.8% - 16.9%.
Mcredit is also promoting the development of convenient credit products to meet new consumer habits and the need to simplify processes and procedures of young people. These credit products are all highly digitalized, integrated on new technology platforms, and have high system compatibility, so they can take advantage of many features and utilities of strategic partners, further perfecting credit products for Mcredit.
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