Krungsri (Bank of Ayudhya PCL), one of Thailand’s largest financial institutions, has achieved a significant milestone by acquiring SHB Finance.
Krungsri (Bank of Ayudhya PCL), one of Thailand’s largest financial institutions, has achieved a significant milestone by acquiring SHBank Finance Company Limited (SHB Finance), a prominent consumer finance business in Vietnam. The acquisition process involved the successful transfer of the initial 50% of SHB Finance’s charter capital to Krungsri, with the remaining 50% set to be completed over the next three years pending approval. This development, following the capital transfer agreement announced on August 25, 2021, further solidifies Krungsri’s position as a regional bank with a robust ASEAN network and aligns with its vision of becoming the preferred Thai bank connecting customers’ needs across ASEAN.
Expressing his satisfaction with the completion of the capital transfer, Krungsri’s President and Chief Executive Officer, Mr. Kenichi Yamato, extended a warm welcome to SHB Finance as the newest member of the Krungsri Group. He also expressed gratitude to the regulatory authorities for their approval and support. With the addition of SHB Finance to its portfolio, Krungsri significantly expands its presence across five ASEAN countries, demonstrating its commitment to meeting the diverse needs of customers throughout the region.
Vietnam’s economy is anticipated to maintain a strong growth trajectory, driven by an annual growth potential of approximately 6-7% and thriving business opportunities arising from increased consumption. Krungsri, well-known as a leader in consumer finance, brings its expertise and experience to SHB Finance, enabling the latter to deliver enhanced smart and accessible consumer finance solutions to its customers. Krungsri is confident that the synergy between the two entities will bolster SHB Finance’s brand, performance, and position as a top player in Vietnam’s consumer finance market.
Ms. Olena Khlon, the Permanent Deputy Direction of SHB Finance, emphasized the immense potential of Vietnam’s consumer finance market and highlighted the country as an attractive destination for foreign investors. She expressed optimism about the partnership with Krungsri, a reputable regional financial institution, and its role in propelling SHB Finance towards becoming one of the leading finance companies, dedicated to improving the lives of all customer segments.
As the fifth largest bank in Thailand based on assets, loans, and deposits, Krungsri has a strong presence not only in its home country but also in overseas markets. It operates businesses in Lao PDR, the Philippines, Cambodia, and most recently, Vietnam. Additionally. Krungsri maintains a representative office in Myanmar, further expanding its reach and influence across the Southeast Asian region.
The acquisition of SHB Finance signifies Krungsri’s strategic efforts to strengthen its regional presence and capitalize on the promising opportunities within the ASEAN market. By leveraging its established reputation and leveraging the synergies between Krungsri and SHB Finance, the bank is poised to deliver comprehensive financial solutions that cater to the diverse needs of customers across the region.
With its continued expansion and commitment to excellence, Krungsri remains dedicated to maintaining the highest level of integrity in conducting its business operations. All companies within the Krungsri Group have received accreditation from the Private Sector Collective Action Coalition Against Corruption (CAC), highlighting their zero-tolerance approach to corruption and commitment to ethical practices.
SHB Finance is among the top 10 consumer finance companies in Vietnam and is recognized for its immense potential and advantages. Having operated for five years, SHB Finance has achieved significant milestones, including becoming an official partner of MasterCard and receiving a B3 rating from Moody’s.
The collaboration with Krungsri, a reputable regional financial institution, positions SHB Finance for further growth and solidifies its position as one of the leading finance companies in Vietnam’s consumer finance market. The acquisition of SHB Finance by Krungsri represents a significant development in the banking and finance industry within the ASEAN region. With their combined expertise and resources, Krungsri and SHB Finance are well-positioned to drive innovation, improve customer experiences, and contribute to the continued economic growth of Vietnam and the broader ASEAN community.
