Vietnam's consumer finance major F88 targets 25% profit growth in 2026

F88, a leading consumer finance company in Vietnam, targets pre-tax profit of VND1.13 trillion ($42.89 million) in 2026, up 25%, a goal that chairman Phung Anh Tuan said already factors in potential challenges, with the company confident of meeting it.

In 2026, F88 expects revenue of VND5.46 trillion ($207.25 million), up 42% from 2025, and outstanding loans of VND7.5 trillion ($284.7 million), up 33%, heard the company’s AGM on Monday.

Responding to shareholder questions on the ambitious business plan, the F88 leadership said the company has prepared three market scenarios - base case (on plan), upside (better-than-expected conditions) and downside (unforeseen market weakness).

CFO Tran Mai Thao said the company has no plans at present to revise its 2026 business and financial targets.

CEO Nguyen Duc Dai also expressed confidence in the 2026 business plan, saying F88 continues to balance growth with risk control rather than pursuing expansion at any cost.

In 2025, F88 set up partnerships with major partners, helping unlock service flows, a development seen as a key catalyst for growth in this year, he added.

Chairman Tuan added that in a more favorable market environment, F88 could achieve growth above its 25% target.

“There is an interesting reality: In a weak economic environment, the pawn sector still grows strongly, and demand for pawn services even rises when conditions deteriorate. In other words, market demand remains robust; the key question is whether companies can secure sufficient funding for growth while effectively managing risks,” he stressed.

Tuan called the company’s branch network its “backbone” and "core competitive advantage".

While F88 accounts for up to 75% of the modern pawnshop chain segment, it reaches only around 3% of the overall market, underscoring significant growth potential, Tuan noted.

According to the chairman, F88 plans to expand its physical network to around 1,000 outlets this year from 949 currently, while accelerating its digital push.

With an omnichannel strategy spanning online, offline and partners, he expects the network to reach 1,500-2,000 touchpoints by 2030 to ensure a seamless customer experience.

Thao said F88 aims to become a comprehensive financial platform in Vietnam by 2030, targeting mass-market customers underserved by banks. She defined “comprehensive” as advancing financial inclusion, so no one is left behind, while offering services ranging from lending and insurance to small-scale savings and digital payments.

She added that 2026 will serve as a “testing” year to study customer behavior and regulatory conditions, with new business lines launched on a small and cautious scale, while core segments such as pawn lending and insurance continue to expand to support revenue.

Capital hike plan

At the meeting, shareholders approved a 2026 plan to raise charter capital through three channels: issuance to existing shareholders, a public offering, and an employee stock ownership plan (ESOP).

Accordingly, the company plans to issue more than 110 million shares to existing shareholders on a 1:1 basis, with each shareholder entitled to one additional share for every share held. The issuance is expected to be completed in 2026.

Simultaneously, it will offer up to 22 million shares to the public, equivalent to 20% of outstanding shares. The offering will be open to domestic and foreign institutional and individual investors eligible under applicable laws and the company’s charter. Investors in this public offering will not be entitled to receive bonus shares from the equity-funded capitalization issue.

The offering price will be set by the board of directors, with a floor no lower than F88’s book value per share under its audited 2025 consolidated financial statements, at VND22,240 ($0.84), and no less than 70% of the average closing price over the five trading sessions preceding the board resolution approving the offering. The transaction is expected to be completed this year.

The offering is expected to raise at least nearly VND490 billion ($18.6 million), net of fees and expenses, which will be injected as additional charter capital into subsidiary F88 Business JSC to support its pawn lending operations, with disbursement planned in 2026.

Separately, F88 will issue up to 4.4 million ESOP shares at VND10,000 ($0.38) each. Proceeds will be used to supplement working capital.

If the proposed plans are approved by shareholders and successfully implemented, F88’s charter capital is expected to rise to VND2.47 trillion ($93.76 million).

On plans to move to HoSE, Tuan said the listing is targeted for the second half of this year, with documentation largely completed and remaining subject to regulatory procedures and approval from authorities.

He also outlined reasons for accelerating the listing timetable, saying F88 has already met all regulatory requirements. Moreover, the transfer would improve access to investors to support its growth strategy. The move would also enhance liquidity, directly benefiting shareholders.

Finally, listing on HoSE would require higher standards of transparency and governance, thereby better protecting investors, he said.