VietCredit eyes 41% profit growth, sustainable development

Friday, Apr 28, 2023 16:00

VietCredit executives at the company’s annual general meeting on April 27 in Ba Ria-Vung Tau. — Photo courtesy of the firm

VietCredit Finance Joint Stock Company (VietCredit – TIN) reported robust growth last year having met all the targets approved by shareholders, with its pre-tax profits rising by 52 per cent from the previous year to VND75.6 billion (US$3.2 million).

As of the end of 2022, its total assets were worth more than VND6.5 trillion ($277.8 million), a year-on-year increase of 5 per cent.

Deposits and loans outstanding were VND5.3 trillion ($226.3 million) and VND4.4 trillion ($187.9 million), up 5 per cent and 25 per cent.

The company said fluctuations in interest rates and liquidity in the interbank market since the third quarter affected the results.

Speaking at its 2023 annual general meeting in Ba Ria-Vung Tau Province on April 27, a company executive said: “VietCredit is always proactive with market developments, focusing on risk management, restructuring product portfolios and speeding up digital transformation to improve product and service quality.

“Good governance, right strategies and flexibility have helped the company achieve impressive results.”

In 2023, VietCredit targets an increase of 41 per cent in pre-tax profits to VND106 billion ($4.5 million), 9 per cent in total assets to VND7.1 trillion ($303.3 million), and 7 per cent in deposits to VND5.7 trillion ($243.58 million).

In the first quarter of this year, its profit after tax surged by 456 per cent year-on-year to VND43 billion ($1.8 million).

The executive said: “We have certain credible foundations to achieve our business goals in 2023. VietCredit always seeks to leverage technologies to develop a financial ecosystem to meet market demand. So technology development is one of the fundamental tasks for the company to develop key products and provide convenient and useful financial solutions for customers.”

The company will continue to restructure and simplify its existing product portfolio, research and develop to roll out new digital products, cooperate with e-commerce partners to deploy digital lending products, and upgrade its IT infrastructure.

It will also review customer segments that are not very efficient and find measures to improve them, raise the quality of loans and launch sales, credit approval and risk management initiatives to reduce risks and drive long-term growth.

It will be flexible, with its strategies based on market developments, and improve its governance capacity to optimise costs and improve competitiveness.

It plans to increase its capital to ensure a steady and solid source of funds, effectively allocate capital to core business areas and continue to mobilise funds on international markets and from partners.

To improve its financial wherewithal, increase medium- and long-term capital and meet business development and risk management requirements, it tabled a plan at the AGM to increase charter capital by over VND287 billion ($12.2 million) in 2023 to VND988 billion ($42.1 million) through an issuance of shares to existing shareholders and to employees under an ESOP.

“The economy will not completely recover in 2023 as many challenges and unpredictable developments remain in the finance - banking market.

“But we believe that, by effectively improving financial governance and risk control together with having a healthy financial restructuring strategy, VietCredit will overcome the challenges to achieve stable and sustainable long-term benefits.”

At the AGM, shareholders approved last year’s results and profit distribution plans, this year’s targets and some other important proposals.

They also voted to elect the members of the board of directors and the supervisory board for the 2023-28 term. — VNS

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