F88 started to grow again, recording positive profits since October 2023. Specifically, revenue in the first 9 months of the year grew at 26.8% compared to the same period in 2022 based on the strategy of expanding the target customer base and providing accessible financial solutions for this customer group. Risk costs decreased significantly at 34% compared to the second quarter thanks to improvements in portfolio management quality. Improving the performance of F88’s existing transaction office network also reduces the cost-to-revenue ratio (CIR) by 15% compared to 2022.
Profit before provisions (PPOP) grew impressively, 3.4 times higher than the same period last year, demonstrating internal strength and sustainable profitability from core business activities. On that basis, F88 continues to commit to maintaining a solid financial foundation while constantly refining strategies and implementing risk management measures in the coming time.
This internal financial strength helps the company cope with economic fluctuations and seize growth opportunities. The debt-to-equity ratio (D/E) as of September 30, 2023 remains at a safe level of 1.79 after the capital increase in early 2023.
In addition, F88 always fulfills its financial obligations, has paid principal and interest in full and on time for 100% of debt obligations. In addition, the company received an additional foreign loan limit of up to 50 million USD from Lending Ark in September and successfully mobilized 200 billion VND from domestic bond issuance in November 2023. The above results have demonstrated the reputation and trust of F88 in the domestic and international investor community.
F88’s financial stability comes from its strategy of diversifying funding sources, including issuing bonds, establishing credit limits with domestic banks and increasing loans from foreign partners. . The above financial solutions give F88 flexibility, allowing the company to be proactive with market fluctuations and confidently pursue strategic initiatives.
The fourth quarter forecast shows that the growth of outstanding loans will boost revenue from core business segments. In addition, despite applying the principle of 100% provisioning for debts that are overdue for more than 90 days, the company continues to collect these debts to contribute to future financial results. On that basis, F88 is confident about its ability to become profitable in Q4 2023.
Although the upcoming outlook is quite optimistic, the financial results in 2023 are still forecast to be at a loss. Observing the general level of the market, F88 is no exception as all businesses in the industry have been significantly affected by market fluctuations since the beginning of the year. Although profits in the last quarter of the year may not completely overcome previous financial difficulties, this improvement is expected to be the foundation for stable financial growth, opening the year 2024.
In an effort to comply with global financial standards, F88 is working on an Expected Credit Loss (ECL) model, in line with IFRS 9 standards. This step highlights F88’s strong commitment to Improve risk management capacity according to international standards. We have cooperated with Ernst and Young, one of the world’s leading auditing companies, to advise and validate the ECL model to ensure accuracy and reliability in forecasting and preventing losses. due to bad debt in the future, helping F88 increase transparency and trust for investors and partners.
