FE CREDIT loses momentum as VietCredit surges in Vietnam’s consumer finance market

The six companies generated a combined pre-tax profit of over VND3.983 trillion (US$152.7 million) in the first six months, up 36.8 percent from the same period last year.

Much of the increase came from VietCredit.

VietCredit’s pre-tax profit reached VND1.055 trillion ($40.5 million), up 232 percent year on year, making it the strongest growth driver for the sector during the period.

In terms of absolute profit, however, Home Credit Vietnam retained the top position.

Its pre-tax profit rose 15.2 percent to over VND1.68 trillion ($64.4 million).

HD SAISON ranked third with VND804 billion ($30.8 million), an increase of 13.4 percent.

Mirae Asset Finance Vietnam and Mcredit recorded pre-tax profits of VND191 billion ($7.3 million) and nearly VND100 billion (3.8 million), respectively.

FE CREDIT reported its pre-tax profit of VND153 billion ($5.9 million), down 42.8 percent year on year.

The firm posted more than VND10.2 trillion ($392.4 million) in revenue during the first half, up 7.7 percent year on year.

Its profit before provisions neared VND6.311 trillion ($242 million), an increase of 6.2 percent.

However, the company’s provisioning burden continued to weigh heavily on its bottom line.

Its provisioning expenses rose from VND5.674 trillion ($217 million) to VND6.158 trillion ($236.1 million), equivalent to 97.6 percent of the pre-provision profit, compared with about 95.5 percent a year earlier.

After provisions were recognized, FE CREDIT’s pre-tax profit stood at just VND153 billion ($5.9 million).

The elevated provisioning came as FE CREDIT continued efforts to improve asset quality.

Chairman Ngo Chi Dung of VPBank linked to FE CREDIT previously said the company’s non-performing loan ratio had at one point climbed to around 20 percent following the COVID-19 pandemic.

It subsequently fell to 14-15 percent last year, while the company continued restructuring efforts aimed at bringing the ratio down to some 11-12 percent.

VietCredit’s performance was closely tied to the expansion of its lending business.

Its customer loans outstanding stood at VND18.221 trillion ($698.9 million) as of June 30, up 22.6 percent from the end of 2025.

Its net interest income rose from VND1.052 trillion ($40.3 million) to VND3.278 trillion ($125.7 million), an increase of 211.6 percent.

VietCredit’s total assets stood at over VND23.2 trillion ($890.7 million) at the end of June, up 31.6 percent from the end of 2025.