Thailand's SCB X announced on February 28 that its subsidiary, The Siam Commercial Bank Public Company Limited (SCB), has signed an agreement to acquire consumer finance business Home Credit Vietnam Finance Company Limited ("Home Credit Vietnam") from Czech financial group PPF.

The acquisition, valued at approximately VND20.97 trillion (about €800mn), is subject to regulatory approvals in Thailand and Vietnam and is expected to close in the first half of 2025.

PPF has been looking to sell or downsize its Asian operations as it refocuses on Europe and the US as part of a drive to reduce risks and stabilise returns for its owners, the family of the late PPF founder, Petr Kellner.

In Asia, PPF Home Credit consumer credit business had an early mover advantage but, lacking bank licences, it later struggled to compete against local banking rivals with access to cheap deposits. PPF disposed of its operations in Indonesia and the Philippines in 2022, and has been winding down its once sizeable operations in China, blaming over-regulation and growing nationalism. It is now believed to be looking for a partner for its Indian business.

SCBX's acquisition strengthens its presence in the high-growth Asean market, aligning with its vision of becoming a leading regional financial technology group. SCBX owns SCB Bank, Thailand's fourth largest bank by assets.

Arthid Nanthawithaya, CEO of SCB X, commented: "The acquisition of Home Credit Vietnam marks a significant milestone in SCBX's journey to become a leading regional financial technology group. This strategic move strengthens our presence in the high-growth Asean market and creates long-term value for our shareholders."

Highlighting the strategic importance of Vietnam, Arthid added: "Vietnam's dynamic economy and tech-savvy population make it a key market for SCBX. This acquisition marks the beginning of our expansion into Vietnam, a country with over 100 million people."

He further emphasised the immediate and long-term benefits of the acquisition: "Home Credit Vietnam's extensive customer base, nationwide network, and experienced management team will be instrumental in establishing a strong foundation for SCBX in Vietnam. The deal will also contribute immediately to the group's bottom line and diversify our income base for sustainable future growth while maintaining strong capital adequacy ratios for both SCBX and the bank."

Radek Pluhar, CEO of Home Credit Group, stated: "Home Credit Vietnam has grown rapidly to become a market leader since its launch 15 years ago. I am confident that the business has a bright future under SCB's ownership and will continue to serve its customers effectively."

The Home Credit  Group was established in the Czech Republic in 1997, later expanding across  Asia and Europe. 

Founded in 2008, Home Credit Vietnam has established itself as a leading player in the Vietnamese consumer finance sector. Offering a range of loan products, including consumer durables, revolving loans, cash loans, and two-wheeler loans, it caters to both mass and upper-mass market segments.

The company serves over 15mn customers to date and has established a wide network comprising 14,000 points of sale across Vietnam. In 2022, Home Credit Vietnam reported net profits of VND 1.32 trillion and a 10-year CAGR of 18.7% in total assets,.

Home Credit Vietnam leverages a robust omnichannel distribution network, seamlessly integrating online and offline channels to enhance the customer experience. The company prioritises prudent risk management, maintains efficient collection capabilities, and has invested in state-of-the-art digital infrastructure.

Holding the second-largest market share in Vietnam's consumer finance market, at approximately 14%, Home Credit Vietnam is well-positioned to benefit from the sector's strong growth potential driven by favourable demographics, a rising middle class, and supportive macroeconomic policies.