VietCredit, a leading financial company in Vietnam, released its fourth-quarter 2024 financial report, showcasing promising results and a strong focus on digital transformation.
As of December 31, 2024, the company’s total assets reached VND 8,163 billion, an impressive 81% increase from the third quarter’s figure of VND 4,489 billion. Operating expenses were VND 115 billion, a 14% rise from the previous quarter but a significant 30% decrease compared to the same period last year. This improvement is attributed to the company’s successful transition to more efficient business models and streamlined operations.
Additionally, the company’s allowance for credit losses decreased by 36% year-over-year, with a 6% reduction in loan loss provisions and a 23% drop in investment securities provisions. The ratio of non-performing loans from existing old debt portfolios improved, while the ratio of non-performing loans from new digital products remained low, aligning with the company’s risk appetite.
Net interest income reached VND 203.2 billion, a 28% increase compared to the previous year and a 13% rise from the previous quarter. Notably, net income from other activities surged by 57% to VND 141 billion. VietCredit’s foreign exchange business also witnessed a remarkable 135% profit growth.
Customer loan balances neared VND 6,300 billion as of December 31, 2024, reflecting a solid 36% year-over-year growth. VietCredit successfully tapped into the potential customer base through digitization, partnering with prominent platforms like Momo, Fiza (Zalo), and Viettel Money. As a result, digital products contributed a significant 22% to the company’s total loan balances as of the reporting date.
VietCredit’s fourth-quarter performance demonstrated positive momentum, turning around from a loss of VND 36.5 billion in the third quarter to a profit of VND 69.6 billion in the fourth quarter, a remarkable 290% increase. While this figure represents a 55% decrease compared to the same period last year, it highlights the company’s successful restructuring and digital transformation efforts.
According to the company, 2024 was a year focused on digital transformation, infrastructure modernization, and talent quality enhancement. Notable achievements include the launch of the Tin Vay digital consumer lending service on multiple large platforms and the upgrade of the VietCredit application.
Looking ahead to 2025, VietCredit plans to expand Tin Vay to cater to a broader range of individuals and small businesses, introducing Tin Vay Biz specifically for small business owners and enterprises. Additionally, a new digital credit card product, packed with modern and superior features, is expected to be launched during the year.
The fourth-quarter results indicate that VietCredit is on the right track with its restructuring efforts, business model innovation, customer base expansion, and enhanced operational efficiency. Effective financial risk management and cost optimization have also played a significant role in improving profitability. As a result, the company’s recently released fourth-quarter 2024 financial report showcases promising figures and growth potential for the upcoming year.
