Thai bank SCBX acquires 100% of Home Credit Vietnam

Thai bank SCB X Public Company Limited (“SCBX”) today announced that The Siam Commercial Bank Public Company Limited (“SCB”) has signed a sale and purchase agreement to acquire 100% of the charter capital of Home Credit Vietnam Finance Company Limited (“Home Credit Vietnam”), the consumer finance business of Home Credit N.V. (“Home Credit Group”) in Vietnam, for a consideration of approximately VND 20,973 billion (equivalent to approximately 866 million USD). The transaction is expected to be completed by the first half of 2025, subject to approvals from the relevant competent authorities.

Since its establishment in 2008, Home Credit Vietnam has become one of the leading players in the consumer finance sector in Vietnam, offering consumer durable loans, revolving loans, cash loans, and two-wheeler loans to the mass and upper mass market segment of Vietnamese consumers. Home Credit Vietnam is a part of the Home Credit Group, which was established in 1997 in the Czech Republic. The Home Credit Group operates in multiple countries across Asia and Europe and is owned by the PPF Group, a leading international investment company.

Home Credit Vietnam has served a cumulative total of 15 million customers since its launch and has established a strong presence throughout Vietnam with 14,000 point-of-sales locations. In 2022, Home Credit Vietnam had net profits based on the latest audited financial statements of VND 1,320 billion and achieved a CAGR of 18.7% in total assets over the last decade, reflecting the potential and efficiency of its business operations.

Home Credit Vietnam has the second largest market share in Vietnam’s consumer finance market, accounting for approximately 14% of the total market as of 30 June 2023. The consumer finance market in Vietnam has a high growth potential in Southeast Asia, driven by strong macroeconomic fundamentals, economic policies that support growth, favorable demographics, and growing middle class.

Arthid Nanthawithaya, Chief Executive Officer of SCBX, said, “Vietnam, with its dynamic economy averaging 7.5% GDP growth over the past decade and a tech-savvy population, is a key strategic market for SCBX. This acquisition marks the beginning of SCBX Group’s expansion into Vietnam, a country with a population of over 100 million. With 15 million customer base, 14,000 point-of-sale locations, and an experienced management team comprising of both European and Vietnamese members. ”

Radek Pluhar, CEO Home Credit Group. “I wish to congratulate my colleagues on building a successful and respected business that has served over 15 million Vietnamese customers as they look ahead to this exciting new chapter. We are passing the baton to new owners and I am confident the business has an even brighter future.”