HDBank targets to lead retail market after merging PGBank

HDBank and PGBank merger plan has been submitted to competent authorities for review. The merger is expected to be completed in September 2018.

Le Thanh Trung, Deputy General Director of HD Bank, said that HDBank has high expectations of the deal.

Obviously, the thing that attracts HDBank is not 89 branches or 275 transaction offices of PGBank as HDBank has developed to 285 branches with 12,000 transaction offices. It is a huge number of customers from PGBank’s major shareholder Vietnam National Petroleum Group – Petrolimex that HDBank wishes to achieve.

"PGBank is really a small bank, but it has a very unique ecosystem because its major shareholder Petrolimex amounts to a 40 per cent stake in PGBank. Petrolimex now accounts for 50 per cent of the petrol retail market share in Vietnam while Vietjet holds nearly 50 per cent of domestic aviation market share.

Therefore, with HDBank - PGBank ecosystem and strategic partner Vietjet, we estimate that HDBank will have about 40 million of potential retail customers of in the future," said Trung.

In addition, Petrolimex has 44 domestic subsidiaries, three petroleum companies and overseas representative offices, 21 joint stock companies and three associated companies, about 2,500 petrol retailers and 4,000 agents nationwide.

HDBank's leaders also stressed that it is worthless to worry about the negative consequences of the merger, as HDBank is "one of the banks with the best merger and acquisition (M&A) capacity". This can be proved by two M&A deals which were successfully implemented.

The first deal was HDBank’s acquisition of Société Générale Viet Finance (“SGVF”), one of the largest foreign-owned consumer finance companies in Vietnam, in 2013. Then SGVF was renamed Ho Chi Minh City Development Commercial Joint Stock Bank Finance Co., Ltd (HDFinance). In 2015, thanks to the investment from Japan’s Credit Saison Corporation, the company was renamed HDSaison Finance Company Ltd.

HDSaison is one of the three largest consumer finance companies in Vietnam with good quality and high performance. HDSaison now has 3.9 million customers with more than 11,844 points of sale (POS), which makes it become the consumer finance company with the largest POS syste.

The second one HDBank’s absorption of Dai A Commercial Joint Stock Bank in merger in 2012. 

Banks are focusing on the retail market. With the continuous M&A moves, HDBank is pioneering on this race, Trung said.