Moody's maintains key credit ratings of VPBank and FE CREDIT

Moody's maintained the key credit ratings for both organizations and upgraded FE CREDIT's outlook to "Stable". This move is a clear recognition of the strong financial foundation, improved operational efficiency and sustainable growth prospects of the VPBank ecosystem with appropriate steps and flexible adaptation to the market.

At the end of the first quarter of the year, the bank's total consolidated assets reached more than VND994,000 billion, continuing to affirm its leading position in the group of private commercial banks.

By the end of the first quarter of 2025, VPBank's total consolidated assets reached more than VND 994,000 billion, continuing to affirm its leading position in the group of private commercial banks.

Specifically, Moody's rated VPBank with a stable outlook, maintaining Ba3 for the bank's issuer rating and long-term local-foreign currency deposit rating. VPBank's BCA baseline credit rating was also maintained at Ba3, reflecting its intrinsic financial strength and stability. For FE CREDIT, Moody's maintained FE CREDIT's CFR (Corporate family rating) credit rating at B1. Notably, the organization upgraded FE CREDIT's outlook to "Stable" and its independent capacity assessment to B3.

" Moody's continued stable credit rating for VPBank and positive outlook for FE CREDIT is a clear demonstration of the bank's solid financial capacity, effective growth strategy and high adaptability. We will continue to adhere to the sustainable development orientation, improve asset quality, strengthen capital foundation and maintain a pioneering role in the Vietnamese banking system, " said Mr. Nguyen Duc Vinh, General Director of VPBank.

According to Moody's, VPBank maintains a capitalization base that is superior to the general level of the banking industry in Vietnam. VPBank's profitability has also improved significantly, with the return on tangible assets (ROTA) increasing from 1.0% in 2023 to 1.7% in 2024, thanks to an expansion of net interest margins and effective control of credit costs. Capital adequacy ratio (CAR) is among the leading groups in the banking industry.

Moody's forecasts that VPBank's credit will grow by about 20%-22% in the next 12-18 months, with net interest margin expected to remain stable. In addition, the bank's consolidated profit will also be strongly boosted thanks to positive contributions from FE CREDIT - a subsidiary operating in the consumer finance sector.

This year, with the momentum from the pieces in the different expanded ecosystem, VPBank plans to submit to the General Meeting of Shareholders a profit plan of VND 25,270 billion (nearly 1 billion USD), an increase of 26% compared to 2024. Total consolidated assets by the end of 2025 are targeted at VND 1.13 million billion, equivalent to an increase of 23%.

At the end of the first quarter of the year, the bank's total consolidated assets reached over VND994,000 billion, continuing to affirm its leading position in the private commercial banking group. Consolidated pre-tax profit reached VND5,015 billion, 20% higher than the same period.

For FE CREDIT, Moody's highly appreciates the progress in restructuring the credit portfolio, strengthening cooperation with retail and corporate partners and promoting digitalization.

In 2024, FE CREDIT will achieve pre-tax profit of nearly VND 515 billion. By the end of the year, the company's total assets will reach more than VND 67,650 billion, an increase of nearly 7.3% compared to the end of 2023. Owner's equity will reach nearly VND 10,684 billion, an increase of 4%. Indicators on financial safety, minimum capital safety ratio, and maximum ratio of short-term capital used for medium- and long-term loans all meet the requirements of the State Bank.

These positive figures are the result of a comprehensive restructuring process over two years (2023, 2024) and support from two major domestic and foreign financial institutions, Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and SMBC Consumer Finance Company (SMBCCF) - a subsidiary of Sumitomo Mitsui Financial Group. Timely adjustments in business operations, optimization of operating costs and enhanced risk management controls have brought impressive results to FE CREDIT - the consumer finance company with the largest market share in Vietnam.

FE CREDIT affirms its commitment to 'putting customers at the center' in its business and operations. The company will strengthen cooperation with major retailers to expand its customer base and point of sale network, thereby enhancing its presence and increasing revenue. In particular, FE CREDIT increases investment in new technology, providing customers with a comprehensive financial ecosystem through strong digitalization, bringing a safe and convenient experience.

Source: https://thoibaonganhang.vn/moodys-giu-nguyen-xep-hang-tin-nhiem-then-chot-cua-vpbank-va-fe-credit-163286.html