Mirae Asset Finance Company Limited (Vietnam) released its financial report on 27/3, detailing the company's performance. A company representative attributed the double-digit profit increase compared to 2024 to several factors, primarily improved loan portfolio quality and optimized operating costs. These efforts reduced cost pressures related to credit risk and enhanced operational efficiency.

Operationally, the cost-to-income ratio (CIR) dropped from 31,09% to 29,53%, demonstrating effective cost optimization. Concurrently, the provision expense ratio on average outstanding loans decreased from 23,86% to 22,40%, indicating better control over credit risk. Income generation from lending also rose, with the net interest income ratio on average outstanding loans increasing from 30,52% to 32,67%, reflecting enhanced efficiency in credit portfolio utilization.

A company representative explained that these results stemmed from continuously refining its risk management model. The company focused on classifying customers by risk level and repayment behavior, while implementing monitoring and support measures to control credit quality from an early stage. Additionally, support solutions like debt restructuring and interest/fee reductions for cooperative customers were applied, which improved repayment capacity and stabilized the credit portfolio.

Mirae Asset Finance company office at 91 Pasteur, Saigon ward, TP HCM. Photo: Mirae Asset Finance

For its business strategy, the company prioritizes lower-risk segments, including existing customers with good credit histories and borrowers offering collateral. Loans with clear purposes, such as automobile purchases and consumer electronics financing, are also key areas of focus.

In parallel, the company actively applies technology in risk management and operations. An internal credit scoring system and data analytics tools have been implemented to improve assessment quality and optimize the credit granting process.

Looking ahead, the company stated it will continue to strengthen its growth foundation by enhancing credit quality, controlling risk, and optimizing operational efficiency. Key priorities include reviewing outstanding balances, reinforcing risk management, and expanding technology application in consumer finance operations.

Thai Anh