F88 Investment Joint Stock Company recently announced these figures. For the third quarter alone, the company's pre-tax profit reached 401 billion dong, a 42,1% increase compared to the same period last year. Revenue for the quarter was 1,591 billion dong, up 48% year-on-year.

Cumulatively for the first 9 months, F88's revenue hit 4,349 billion dong, marking a 54,2% increase compared to the same period last year. Pre-tax profit reached 1,087 billion dong, an 80,1% increase, averaging nearly 4 billion dong per day. With this performance, the company completed approximately 96% of its annual profit target, as approved by the General Shareholders' Meeting. The return on equity (ROE) for the most recent 12 months stood at 35,1%.

F88 staff assist customers with loan application procedures. Photo: F88

Growth drivers primarily came from lending operations, insurance distribution, and improved operational efficiency. Lending continued to be the largest revenue source, generating nearly 3,728 billion dong in the first 9 months, a 52,4% increase year-on-year, accounting for about 86% of total revenue.

By the end of september, F88's total net outstanding loans reached 9,540 billion dong, up 48,8% compared to the same period last year and 32,2% compared to the beginning of the year. This indicator includes loans disbursed by partner banks, where F88 provides collateral management services, earns service fees, and bears related credit risk.

Alongside the growth in outstanding loans, F88 expanded its network to 1,000 transaction offices, achieving its target set at the beginning of the year. In Q3 alone, the company recorded approximately 95,500 new loan customers, while the proportion of returning customers reached 68%.

Inauguration ceremony of F88's 1,000th store. Photo: F88

In addition to expanding lending activities, the insurance distribution segment also recorded high growth. Revenue from this sector reached nearly 583 billion dong in the first 9 months, a 74,6% increase year-on-year, contributing approximately 13,4% of total revenue.

F88 is developing independent insurance distribution through its brand Ngoi Nha Xanh (NNX), extending its reach to customers without lending needs. The company leverages its existing network of transaction offices to expand product distribution and provide after-sales services, supporting customers throughout the claims process.

Beyond revenue growth, cost control also contributed to improved profitability. In the first 9 months, F88's operating expenses increased by 24%, lower than the 54,2% revenue increase. As a result, the cost-to-income ratio (CIR) decreased to 43%. The cost of capital for the most recent 12 months also fell from 14,4% to 13,3%, helping to improve profit margins as lending scale continued to expand.

F88 currently offers various services: pawn loans, insurance, collection services, etc. Photo: F88

However, growth in outstanding loans also brings pressure to control credit risk. According to F88's policy, loans overdue by more than 90 days are written off from the on-balance sheet portfolio but are still monitored and recovered. In the first 9 months, the company recovered 289 billion dong from previously risk-provisioned debts, an increase of 9,1% year-on-year.

F88's leadership stated that the net write-off ratio remains within controllable limits, but credit costs face pressure as the lending scale expands.

"F88's consistent view is to balance portfolio growth with operational efficiency and risk costs. We will continue to adjust policies according to each customer group and geographic area, monitor early risk indicators, and enhance appraisal and debt recovery quality to maintain sustainable growth," a company representative stated.

To supplement resources for business operations, F88 raised 833,5 billion dong through public bond issuance and 781,9 billion dong from public stock offerings in the first 9 months.

In Q3, the company's Board of Directors also approved securing foreign loans with a total size of up to 50 million USD. These additional capital sources are expected to help F88 diversify its financing structure and meet the needs of expanding lending operations in the coming period.

Minh Ngoc