The acquisition by the Shinhan Bank Vietnam came six weeks after the Shinhan Bank’s new CEO Wi Sung-ho promised to explore mergers and acquisitions in Asia.
Meanwhile, ANZ, the third largest bank of Australia, decided to sell its retail business in Vietnam to focus on institutional banking in the growing market.
The Shinhan Bank Vietnam, a wholly-owned unit of the Shinhan Bank, hoped that the acquisition will help boost its retail banking services in the country. However, the deal still needs approval from the State Bank of Vietnam.
The Shinhan Bank Vietnam has been growing rapidly for more than 20 years in Vietnam with 18 branches and transaction offices across the country.
The Shinhan Bank has stepped up its efforts to expand its operations overseas in recent years to generate a new cash cow as it has suffered low margins and low growth in the nearly saturated RoK market.-VNA