Thursday,  Oct 18, 2018,22:44 (GMT+7) 0 0
FE Credit announces result of Moody's credit rating
Monday,  Oct 8, 2018,10:17 (GMT+7)

FE Credit announces result of Moody's credit rating

Moody's has officially announced the corporate credit rating (CFR - Credit rating is based on correlation with members of the same group) of B2 at VPBank Finance Company for FE Credit. This rating level is equivalent to the rating level of several leading domestic and foreign financial institutions in Vietnam.

The rating CFR at level B2 for FE Credit showed that Moody's had stated the impact of parent bank on FE Credit, which is wholly-owned by VP Bank.

FE Credit has been playing an important role in VP Bank's retail strategy and the financial link between FE Credit and VPBank. In 2017, FE Credit contributed around 50% of VP Bank's net income and continued leading the consumer finance market in Vietnam with a market share of nearly 50%.

Beside Moody’s expectation on FE Credit to maintain its stable credit fundamentals over the next 12-18 months, the credit rating agency also evaluated that the profitability is a key strength of FE Credit with average return on assets at 5.8% over the past three years (2015 - 2017). This high profit margin is due to the combination of high net interest margin and good ability in operation cost management.

The return on FE Credit's assets was around 32% in 2017. Such a high rate helps offset high credit costs and operating expenses. By retaining all earnings from 2015, FE Credit has improved its capitalization while maintaining its rapid growth. By the end of 2017, the equity ratio to FE Credit's total assets increased to 14.8% from 12.2% in 2016.

Pioneering in consumer finance, FE Credit has established a solid foundation to become the market leader of the unsecured consumer loans market. FE Credit currently provides consumer lending services such as personal loans, two-wheeler loans, consumer durable loans and credit cards. FE Credit has served almost 10 million customers, co-operating with 8,400 partners across 12,200 Points of Sale (POS) nationwide.

Marketing Center, FE CREDIT - VPBank Finance Company Limited

Address: Level 2, REE Tower, No. 9 Doan Van Bo, Ward 12, District 4, Ho Chi Minh City

Phone: (028) 3911 5212

Email: pr@fecredit.com.vn

Website: www.fecredit.com.vn

 

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