The deal will be executed by Siam Commercial Bank (SCB) – a unit of SCB X Group, and is expected to be completed in the first half of 2025 after approval from the relevant authorities of Vietnam and Thailand.
CEO Arthid Nanthawithaya said the deal is an important milestone for SCB X to become a leading tech-finance organization in the region. “This (acquisition of a financial organization) strategy strengthens our position in fast-growing markets like ASEAN, while increasing value and maximizing long-term benefits for shareholders,” shared CEO SCB X.
According to Nanthawithaya, the acquisition of Home Credit Vietnam also marks Thai presence in the credit sector in the S-shaped land, giving them a 14% market share in consumer loans – equivalent to 15 million customers, 14,000 points of sale, and an experienced management team. He is confident that the successful deal will have a positive impact on SCB X’s net profit.
Home Credit Vietnam, a member of the Home Credit Group, a subsidiary of the international investment group PPF managed by Czech former billionaire Petr Kellner’s family. Since 2022, Home Credit Group has made efforts to sell its business in Vietnam. In addition to SCB X, the deal also attracts the attention of other names such as Kasikornbank Pcl (Thailand), or KB Koomin Bank – a member of KB Financial Group from South Korea.
According to Bloomberg, Home Credit is restructuring its operations, focusing on the European market in line with PPF’s direction. The group has reviewed its business areas in Asia after a failed $1.5 billion IPO deal in Hong Kong in 2019.
Prior to Home Credit Vietnam, the group had given up its operations in Indonesia and the Philippines to Bank of Ayudhya Pcl (Bank of Ayudhya Pcl) – the Thai unit of Mitsubishi UFJ Financial Group from Japan. In the Vietnamese market, Home Credit has employed 6,000 staff. SCB X revealed that Home Credit Vietnam’s profit exceeded 1.3 trillion dong in 2022, with a total asset growth of 18.7% over the past decade.
Established in 1997, Home Credit has operated in many countries around the world, including Central Europe and Asia. The parent company PPF operates as a public company, focusing on finance, telecommunications, manufacturing, media, and biotechnology.
In the sights of the second largest bank in Thailand, how is Home Credit Vietnam doing?
Chau An (According to Bloomberg)
