Public Bank completes acquisition of RHB Securities Vietnam

Public Bank Vietnam, a wholly owned subsidiary of Malaysia’s Public Bank Berhad, has reportedly completed the acquisition of RHB Securities Vietnam.

This move followed the issuance of a permit by the State Securities Commission of Vietnam (SSC) to rename RHB Securities Vietnam as Public Bank Securities Vietnam Company Limited (PBSV).

On February 19, Public Bank Vietnam signed an agreement to take over the entire equity of RHB Securities from Malaysia’s RHB Investment Bank. The deal was slated for completion in the third quarter of this year.

On June 4, SSC approved the equity transfer, highlighting the likelihood of Public Bank Vietnam's complete acquisition of RHB Securities.

PBSV, formerly Vietnam Securities Corporation (VNSEC), was established in December 2006 with a charter capital of VND9 billion ($353,500). In January 2009, RHB Investment Bank, under Malaysia’s RHB Bank, became a strategic partner of VNSEC by purchasing a 49% stake in the latter. In January 2019, RHB Investment Bank acquired the remaining 51% of VNSEC and renamed it RHB Securities Vietnam.

PBSV currently has a charter capital of VND135 billion ($5.3 million) and is classified as a small securities firm in Vietnam. It incurred losses for four straight years from 2020 to 2023, recording a net loss of VND7.5 billion ($294,580) in 2022.

In Q1/2024, PBSV posted a net loss of VND5 million ($196), significantly decreasing from the loss of VND1.3 billion ($51,060) recorded in Q1/2023.

As of end-Q1, the securities company, with total assets of VND187.6 billion ($7.37 million), had VND67 billion ($2.63 million) deposited at Public Bank Vietnam, more than VND80 billion ($3.14 million) in margin lending, and VND25.4 billion ($1 million) worth of cash advances.

Venturing into Vietnam in 1992, Public Bank Vietnam now has 22 branches with 18 transaction offices nationwide and 1,000 employees. As of December 31, 2023, its outstanding customer loans hit VND25.85 trillion ($1.02 billion), charter capital reached VND6 trillion ($235.66 million), and total assets stood at VND49.32 trillion ($1.94 billion).

In 2023, it earned VND1.48 trillion ($58.17 million) in net interest income and VND436 billion ($17.12 million) in net profit.