Thailand's second-biggest lender Kasikornbank said Wednesday it is exploring an acquisition deal in Vietnam but that it is still not the time to announce the result if any.
Kasikornbank, also called KBank as it is listed on the Stock Exchange of Thailand (SET) as KBANK, made the clarification to the bourse upon its request. A Reuters report on the same day had said KBank is in talks to buy consumer finance provider Home Credit Vietnam in a deal worth up to $1 billion that would further the bank’s push to expand in Vietnam.
"The bank continuously seeks various business opportunities in the Socialist Republic of Vietnam which may or may not result in a transaction occurring anyway.
“Nonetheless, if any transaction does occur, the bank will disclose information per the criteria of the Stock Exchange of Thailand at an appropriate time,” KBank wrote to the SET.
This “appropriate time” is not known yet.
The Bangkok-based lender hopes to become one of Vietnam's top 20 banks in terms of assets by 2027. Reuters, which cited Refinitiv data, said KBank has total assets worth $119.7 billion, second only to Bangkok Bank in Thailand.
The Czech Republic-backed consumer finance firm Home Credit Vietnam started operations in 2008, now serving 12 million customers in the country and employing 6,000 staff members, according to its website. The firm offers cash loans and installment loans, and its website shows that it has around 9,000 outlets.
Home Credit Vietnam is seen as one of the leading financial services in the country. It is part of Netherlands-headquartered non-bank financial institution Home Credit Group, which is controlled by PPF – the Czech Republic's biggest investment group.
In May, KBank obtained the Vietnamese central bank's approval to raise its Ho Chi Minh City Branch’s core capital to 9.6 billion baht ($285 million) from $80 million.
Empowered by this capital expansion, KBank said it would become one of the 20 largest banks in Vietnam in terms of asset size by 2027. This capital hike aims at supporting expansion via its role as a funding source for business owners, including large corporate customers and retail business operators.
In March, Japanese giant lender Sumitomo Mitsui Sumitomo Mitsui Banking Corp. (SMBC) signed a deal to pay $1.5 billion for a 15% stake in Vietnam Prosperity Joint Stock Commercial Bank (VPBank), making SMBC a strategic investor in the Hanoi-based Vietnamese lender.
In October 2021, SMBC renamed consumer credit firm FE Credit of VPBank as VPBank SMBC Finance Co. Ltd. after spending about $1.37 billion acquiring a 49% stake in FE Credit. The major consumer credit firm targets unbanked and underbanked residents in Vietnam.