Vietnam consumer finance H1: combined profits rise, FE CREDIT the lone decliner

Facts

Results (H1 2026, pre-tax profit, year on year): Home Credit Vietnam earned VND 1.68 trn (+15.2% y/y), the largest profit. VietCredit earned VND 1.055 trn (+232% y/y) with loans of VND 18.22 trn (+22.6%), accounting for 68.8% of the six companies' profit increase. HD SAISON earned VND 804 bn (+13.4% y/y). FE CREDIT earned VND 153 bn (−42.8% y/y; the only decline among the six). MCredit earned about VND 100 bn, and Mirae Asset Finance Vietnam VND 191 bn. Combined profit of the six rose 36.8% (an increase of about VND 1.071 trn y/y). Source: Tuoi Tre (2026-09-06, compiled from company financial statements). The original financial statements have not been obtained.

Provisions: FE CREDIT's provision expense equalled 97.6% of its pre-provision profit of VND 6.311 trn; MCredit's equalled 95.6% of pre-provision profit of VND 2.282 trn. Source: as above.

Analysis

Within the same market, earnings have split between lenders expanding their books and lenders still working through legacy bad assets. FE CREDIT and MCredit generate substantial pre-provision profit, but provisions almost fully offset it; the problem lies in losses on past cohorts rather than in franchise strength.

By comparison, in Thailand consumer lending is shrinking and about half of new NPLs are re-defaults after restructuring (THB 52 bn of about THB 110 bn in Q2 2026, per a BOT official); legacy credit weighing on earnings is a shared pattern. In Vietnam this divergence is occurring while system credit has grown 10.24% year to date.

Implications

Counterpoints and uncertainties

Much of VietCredit's fast-growing book is unseasoned, and losses may surface later. Conversely, FE CREDIT's profit could rebound sharply as bad-asset clean-up reduces provisioning. The figures are a press compilation and are not adjusted for differences in accounting policies.