Vietnam's Q1/2025 consumer finance picture: Many companies report big profits

Many consumer finance companies reported large profits in the first half of the year. Experts predict that the consumer finance market will continue to grow in the second half of the year.

Many consumer finance companies report large profits in the first half of the year

After a sluggish period in 2023, from 2024, the consumer finance market in Vietnam gradually recovered. In 2024, the consumer finance market had many bright colors, many companies made large profits or improved their losses. In 2025, the consumer finance picture continued to improve.

In the first 6 months of the year, SMBC Vietnam Prosperity Bank Finance Company Limited (FE Credit) - the company with the leading market share in consumer lending - recorded pre-tax profit of more than VND 267 billion, a significant improvement compared to the loss of VND 707 billion in the same period. FE CREDIT's disbursement revenue in the first 6 months of the year increased by 19%.

FE Credit's interest revenue in the first 6 months of the year was over VND7,856 billion, up 8% over the same period while interest expenses decreased to VND1,641 billion, helping net interest income increase by nearly 11% to VND6,215 billion.

At HD Saison Finance Company under HDBank, pre-tax profit in the first 6 months of the year reached VND709 billion, up 18%. In the first half of this year, the number of financial transaction points of HD Saison exceeded 27,100 points, serving 15.5 million customers.

Meanwhile, MB Shinsei Consumer Credit Finance Company Limited (Mcredit) recorded pre-tax profit in the first 6 months of the year reaching VND60 billion, higher than the profit of VND51 billion of the whole previous year.

By the end of June, outstanding loans at MB's finance company increased by 11%, reaching VND28,422 billion, the highest increase in the past 3 years. At the end of the period, the number of Mcredit customers increased by 355,000 new customers, reaching 3.7 million people, up 20%.

EVN Finance Joint Stock Company recorded positive results in the first half of the year with pre-tax profit reaching VND598 billion, up nearly 94%. EVN Finance's net interest income reached VND818 billion, up 6.7%. EVNFinance's outstanding loans by the end of June reached VND52,777 billion. EVNFinance mobilized VND49,089 billion by the end of the second quarter, up 24.7%.

Meanwhile, VietCredit Finance Joint Stock Company's pre-tax profit in the first half of the year reached VND318 billion, a significant improvement compared to the loss of VND185 billion in the same period in 2024.

F88 Investment Joint Stock Company achieved revenue of VND1,744 billion in the first half of the year, up 30%; pre-tax profit reached VND321 billion, up 3.2 times over the same period. In the first half of the year, the company opened 20 more points of sale, bringing the total number to 888 stores. The index of new customers and new loan contracts increased sharply, in which the rate of returning customers reached 50%.

Will continue to thrive in the second half of the year

Consumer finance is a field with great potential thanks to its flexible lending model, no collateral requirements or complicated procedures.

Consumer credit has grown nearly twice as fast as the entire banking system over the past years, thanks to its focus on low- to middle-income customers of VND5-10 million/month, accounting for 47% of the working-age population, along with an informal workforce of about 33 million people who mainly use cash or informal credit.

Vietnam currently has 16 financial companies licensed to operate by the State Bank. Among them, we must mention names such as: FE Credit, HD Saison, Mcredit, Home Credit, VietCredit, Lotte Finance, EVN Finance, TNEX, Mirae Asset,...

Many opinions expect that the profit of the consumer finance industry will continue to improve in the second half of 2025 thanks to the momentum of GDP growth, the Law on Credit Institutions 2024 coming into effect, the recovery of the real estate market, businesses promoting digitalization and expanding cooperation with retailers...

In addition, the Government's support and reform policies in the consumer finance sector will encourage loan demand. For example, with loans under 100 million VND, customers do not need to provide a detailed capital usage plan.

In particular, the capital demand of individual customers is forecast to increase sharply during the peak consumption period in the second half of 2025.

The combination of support policies and high consumer demand will certainly create a big boost for the consumer credit market.

MB Securities (MBS) commented that the consumer finance sector is expected to gradually recover in the second half of 2025, driven by the 8% GDP growth momentum, improved household income and a more favorable legal framework.

According to VIS Rating's forecast, the profit of the entire consumer finance industry is forecast to improve slightly, thanks to the stable net interest margin (NIM) from high-yield loans.

However, there are also macro risk factors that will affect the profit growth targets of businesses.

VIS Rating's analysts believe that the risks and profits of consumer finance companies will tend to be clearly differentiated. Accordingly, units focusing on low-risk segments such as Home Credit or HD Saison are able to maintain stable operations.

Meanwhile, companies that promote cash loans and credit cards such as Mcredit, FE Credit... face higher asset risks. The reason is that loans are often unsecured and are easily affected if borrowers encounter financial difficulties. The risk increases in the context of many economic fluctuations, including the US's tariff increase, which can affect economic growth and people's income.

Financial analysts say that the growth potential of the consumer finance industry in Vietnam is still very large. According to a report by FiinGroup, Vietnam's consumer lending penetration rate is still relatively low compared to other countries in Asia - Pacific, signaling abundant growth potential.

Given the positive outlook of the consumer finance market, this year, financial companies are targeting strong profit growth.

Typically, HD Saison aims to achieve pre-tax profit of VND 1,500 billion in 2025. EVNFinance plans to achieve pre-tax profit of VND 960 billion in 2025, an increase of 36%...

(According to Vietnam Finance)

Source