KBank to Acquire Consumer Finance Provider Home Credit Vietnam at a Valuation of $1 Billion

By: Asia Business Outlook Team | Wednesday, 23 August 2023

Kasikornbank, Thailand's second-largest lender, is in talks to acquire consumer finance provider Home Credit Vietnam in a deal worth up to $1 billion, according to two sources.

By 2027, the Bangkok-based lender, also known as KBank, hopes to be one of Vietnam's top 20 banks in terms of assets. According to data, it has total assets worth $119.7 billion, second only to Bangkok Bank in Thailand.

The announcement comes at a time when Vietnamese banks are under pressure as a slowing economy and prolonged turmoil in the real estate sector have fueled an increase in bad loans and prompted broad interest rate cuts.

According to data, a potential deal would highlight a trend of consolidation in Asia's finance sector and make KBank's M&A transaction the second largest in Vietnam's financial industry this year, following the sale of a $1.5 billion stake in Vietnam Prosperity Joint Stock Commercial Bank (VPB.HM) to Japan's Sumitomo Mitsui in March.

According to the two sources, KBank has spoken with financial advisors about the potential acquisition, but discussions are ongoing and no final decision has been made.

"Currently, KBank operates the KBank Biz Loan solution, a credit service for small-scale retail stores." "The potential agreement with Home Credit will allow the bank to promote access to financial services for small business clients," one source familiar with the matter said.