Consumer finance sector posts sharp profit growth

Consumer finance sector posts sharp profit growth

After a period of restructuring, many consumer finance companies are staging a strong comeback after restructuring, posting robust profit growth amid improving credit demand, expanding balance sheets, and supportive regulatory policies.

Hanoi-based major VietCredit surprised the market with a remarkable turnaround after reporting substantial profits in 2025, in stark contrast to the losses recorded a year earlier.

According to its fourth-quarter 2025 financial statements released on January 20, VietCredit posted net interest income of $52.2 million, up 543 per cent on-year.

During the quarter, net gains from trading securities rose by 130 per cent. Notably, profits from the sale of investment securities surged dramatically from just $1,900 to $1.6 million.

Many consumer finance firms saw upbeat performance in 2025

For the full year 2025, VietCredit recorded pre-tax profit of $52.1 million, reversing a pre-tax loss of $6.24 million in 2024. After-tax profit reached $42.9 million, marking the most successful business year in the company’s history.

Alongside the sharp rise in profitability, the company’s operating scale expanded rapidly. As of December 31, the company’s total assets reached $704 million, up 116 per cent compared with the end of 2024, while outstanding customer loans climbed to nearly $596 million, an increase of 136 per cent.

Meanwhile, southern-based FE Credit also reported solid results. By the end of 2025, the firm posted pre-tax profit of more than $24.4 million, up 19.3 per cent on-year.

After returning to positive earnings from the second quarter of 2024, FE Credit maintained stable growth momentum, with full-year net interest income rising 11.6 per cent to $498.6 million.

Business indicators continued to improve through the end of Q4 of 2025. Its interest income reached nearly $630.4 million, up 9.7 per cent on-year, supporting an 11.6 per cent increase in net interest income to $498.6 million. Non-interest income contributed close to $159.6 million.

As of December 31, FE Credit’s total assets stood at $2.81 billion, equivalent to approximately 5.6 per cent of the consolidated total assets of its parent bank, VPBank.

At the same time, Mcredit – the consumer finance company within the Military Bank (MB) ecosystem – has risen into the top 3 for consumer lending market share in Vietnam. This achievement reflects MB’s aggressive digital transformation strategy, supported by a customer base of up to 35 million users and the fact that more than 99 per cent of transactions are conducted through digital channels.

HD Saison, a subsidiary of southern lender HDBank, reported profit of $44 million in the first nine months of the year, with return on equity reaching 24.4 per cent.

Notably, HDBank is in the process of converting HD Saison’s legal structure from a limited liability company model to a joint-stock company model, aiming to expand its scale, strengthen financial capacity, and prepare for a future stock market listing to attract investment.

HD Saison Finance currently has charter capital of $94 million, with HDBank holding a 50 per cent stake.

Regarding profit prospects following the nine-month results, HDBank said it is targeting profit of over $840 million for 2025 and expects a compound annual growth rate of 25-30 per cent during the 2025-2030 period.

Member units are also planning ambitious growth in 2025, with HD Saison targeting loan growth of 15-16 per cent and profit of $60 million, while HD Securities is aiming for profit of $40 million.

The momentum driving consumer credit growth is not only internal to enterprises but also supported by significant changes in the regulatory framework.

The State Bank of Vietnam (SBV) has issued a series of new regulations to stimulate the market, including increases in lending limits. One key change is the increase in monthly transaction limits via e-wallets for individual customers, from $4,000 to $12,000 for certain payment transactions.

Notably, to meet the capital needs of both consumers and finance companies, the SBV has raised the maximum total outstanding consumer loan balance per customer from $4,000 to $16,000.

According to the Vietnam Banks Association (VNBA), this adjustment is aligned with current spending and consumption needs, based on a review and comparison with existing regulations.

However, Nguyen Quoc Hung, VNBA secretary general, cautioned that funding sources and interest rates must be carefully assessed. Consumer finance companies need to evaluate their ability to mobilise medium- and long-term capital, ensure a balance between funding costs and lending rates, and move towards sustainable development.

“The government’s policy is to expand consumer credit and help people access legitimate capital more easily, but interest rates must be reasonable and transparent. Loans must have clear purposes and supporting documentation,” Hung said. "Consumer finance companies must strictly comply with legal regulations when formulating or issuing operational policies."

The Prime Minister issued an official dispatch last September, instructing ministries, agencies and enterprises to closely coordinate in aggressively implementing solutions to develop the domestic market, including the provision of credit packages to support production, business activities and consumption, with simplified procedures and more favourable lending conditions.

Analysts believe these measures will create a more supportive environment for consumer credit, as rising employment and income levels improve households’ purchasing power.

At the same time, expansionary monetary and fiscal policies are expected to continue providing strong support for consumer borrowing demand.

VIR