SCBX Group Acquires 100% of Home Credit Vietnam Poised to enter Vietnamese consumer finance sector as part of regional expansion strategy

         Bangkok, Thailand – February 28, 2024 --- 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 THB 31 billion). 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 is now 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 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 (or equivalent to approximately THB 1.9 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 robust omni-channel distribution networks, integrating both online and offline communication and distribution channels to create a seamless customer experience. The company also has a prudent risk management culture, efficient collection capabilities, and state-of-the-art digital infrastructure.

          Home Credit Vietnam has the second largest market share in Vietnam’s consumer finance market, accounting for approximately 14% ^[1] 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 SCB X Public Company Limited , said, “The acquisition of Home Credit Vietnam, marking a significant milestone in SCBX’s journey to become a leading regional financial technology group. This strategic acquisition strengthens our presence in the high-growth ASEAN market and also increases value and maximizes return to our shareholders in the long term.”

          “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. In addition, Home Credit Vietnam will serve as an important base for the SCBX Group’s presence in Vietnam and immediately contribute positive bottom line to the group after deal completion. This acquisition also diversifies the group’s income base for future strength, while maintaining superior capital adequacy ratio both at SCBX and the Bank after the completion of the transaction.” Arthid added.

          “Home Credit Vietnam has grown rapidly to a market leadership position since the business launched fifteen years ago,” said 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.”

          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.

[1] Based on FiinGroup’s research. FiinGroup is Vietnam’s leading provider of industry research specializing in consumer finance market in Vietnam.

About SCBX
 

          SCBX is the mothership of the financial technology business group, comprising 12 subsidiary companies that operate across three key business pillars: Banking Business, Consumer and Digital Finance Business, and Platform and Technology Business. In addition, SCBX also focuses on Climate Technology, aspiring to become ‘The Most Admired Regional Financial Technology Group’. The company conducts its business with flexibility and prudence in governance and risk management and has possesses the potential to compete equally in global competitions.

About SCB
 

          The Siam Commercial Bank PCL is the first Thai bank. The bank is one of Thailand’s leading universal banks, providing a full range of financial services through its nationwide branch network to clients in all segments, including wholesalers, SMEs, and retail banking services. SCB is committed to becoming Thailand’s “Most Admired Bank” with “Digital Bank with Human Touch” vision and “the number one in universal digital bank in wealth management, offering seamless experiences across all channels to customers” mission by balancing value propositions for all stakeholders – customers, employees, shareholders, regulators, and society – and becoming a leader in shaping the future of Thailand’s banking industry.

About Home Credit Group

         Founded in 1997, Home Credit Group is an international consumer finance provider with current operations in multiple countries in Central and Eastern Europe and Asia. Home Credit Group offers services including credit and ancillary insurance products. It drives and broadens financial inclusion and encourages economic development through supporting domestic consumption.

         In its 25 plus year history, Home Credit Group has served over 140 million customers and has over 100 million registered app users.

About Home Credit Vietnam

         Home Credit Vietnam is a leading digital financier that has been serving more than 15 million customers nationwide for the past 15 years. The company is strongly committed to promoting financial inclusion and empowerment through its innovative, tech-forward, and responsible financial products. 

         With strong commitment to excellence and sustainability, Home Credit continues to empower people to live the life they want, driving positive change and contributing to the growth of Vietnam's economy.