KBank explores potential M&A deal in Vietnam's banking sector

August 24, 2023 | 09:19

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Kasikornbank (KBank), a commercial bank from Thailand, is in talks to acquire Home Credit Vietnam, according to two sources.

KBank explores potential M&A deal in Vietnam's banking sector

As reported by Reuters, this deal is worth up to $1 billion, and would support KBank's goal of becoming one of the top 20 banks in Vietnam by 2027.

KBank aims to expand its Vietnam operations to 8.4 million customers and provide financing of $5.1 billion by 2027.

It has also stepped up the operations of KBTG Vietnam, a subsidiary of Kasikorn Business-Technology Group, to serve as its research and IT system development centre in the country.

The potential deal is expected to become the second-largest merger and acquisition (M&A) transaction in Vietnam this year – the largest being made by Sumitomo Mitsui Financial Group, which has invested $1.5 billion in 15 per cent of VPBank.

A source sources familiar with the matter said, "KBank is currently operating the KBank Biz Loan solution, a credit service for small-scale retail stores. The potential deal with Home Credit would enable the bank to promote access to financial services for small business clients."

According to a banking expert, there are bright prospects for M&A activities in Vietnam's banking industry, as many financial institutions seek strategic partners and opportunities to strengthen their competitiveness and quickly adapt to industry changes.

Small domestic banks are also considering M&As as a strategy to enhance financial health and ensure compliance with strict regulatory standards.

As Vietnam's economy develops and the banking industry matures, banks, both large or small, are more likely to explore M&A opportunities in order to increase their market share and provide a diversified service portfolio that is more suited to the needs of customers.

Kasikornbank pledges seven-decade experience to Vietnamese SMEs

Thai-based Kasikornbank (KBank) in conjunction with the Ministry of Planning and Investment held the co-organising seminar titled "Holistic empowerment of SMEs: How public and private sectors can join hands to develop SME landscape" on March 30.

KBank makes entry into Vietnam with digital push

Kasikornbank (KBank), Thailand’s leading commercial bank, has recently inaugurated its Ho Chi Minh City branch – its tenth and newest overseas branch – and announced a series of new digital solutions in Vietnam.

KBank in Ho Chi Minh City increases capital to over $285 million

The KBank branch in Ho Chi Minh City has announced that it has received approval from the State Bank of Vietnam (SBV) to increase its capital by more than 2.5 times, from $80 million to $285 million.

By Thanh Van

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