F88 / Photo credit: F88
Vietnamese financial firm F88 returned to profit from operations before provisions in the first quarter of 2024, thanks to several strategic shifts in late 2023. The company reported a net loss of US$20.7 million last year.
By focusing on higher-quality loans, stricter risk controls, and better loan collection methods, F88 said it cut its net write-off costs by 46% year on year in Q1 2024.
F88’s growth was boosted by a 9% rise in new customers. This led to a 6% revenue over-achievement, beating Q4 2023’s peak growth by 2%.
Due to this, F88’s post-tax profit in Q1 2024 rose to 31 billion Vietnamese dong (around US$1.2 million). The firm gained a customer approval rate of 89% – which it credited to its debt collection methods – while maintaining a 91% overall customer satisfaction rate.
The company said this progress mirrors Vietnam’s wider economic rebound, shown by the 5.66% year-on-year growth of its gross domestic product. This marks a step toward recovery to pre-pandemic figures, surpassing the growth rate of the first quarters of 2020 through 2023.
F88 provides a suite of financial services, including money transfers, loans, and insurance. The company is backed by investors such as Mekong Capital through the Mekong Enterprise Fund.
Notably, the company landed in hot water in 2023, with police raiding its headquarters amid investigations into alleged extortion of users in its debt collection.
Moving forward, F88 plans to expand partnerships, refine its products, and improve performance.
See also: SEA fintech sector hits funding slump in H1 23, but insurtech holds up
Currency converted from Vietnamese dong to US dollar: US$1 = 25,447 dong.
Editing by Miguel Cordon and Dhania Putri Sarahtika
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
