Thailand’s Siam Commercial Bank ( SCB ) has abruptly terminated its high-stakes acquisition of digital consumer finance company Home Credit Vietnam, a transaction originally valued at 21 trillion dong ( US$796.8 million ).

The move marks a sudden U-turn for what was intended to be a flagship expansion into the high-growth the Southeast Asian consumer finance market, where Japanese leading bank SMBC has been making significant inroads.

In a formal disclosure to the Stock Exchange of Thailand, SCB’s parent company SCB X confirmed that its board of directors has passed a resolution to scrap the deal.

SCB X attributes the collapse to “external factors”, noting that critical conditions precedent within the sale and purchase agreement could not be finalized within the agreed timeframe.

While specific legal or regulatory hurdles were not disclosed, SCB X emphasizes that the termination would not impact its overall financial position and that the group remains committed to its long-term ambition of becoming a leading Southeast Asian financial technology player.

Home Credit Vietnam has not yet issued an official comment regarding the termination announcement made by its Thai partner.

Despite the silence from the local entity, the collapse of the merger comes as a surprise to market analysts, particularly given the exceptional financial health of the firm. Its recent 2025 financial report submitted to the Hanoi Stock Exchange reveals that the consumer finance firm experienced a banner year, characterized by robust growth and industry-leading efficiency.

The company recorded an after-tax profit of 2.076 trillion dong, representing a staggering 60.7% increase compared with 2024. This performance was underpinned by a 36.8% expansion in total assets, driven primarily by a surge in personal lending activity and a successful transition towards digital-first services.

Furthermore, Ho Chi Minh City-headquartered Home Credit Vietnam’s asset quality stands in stark contrast to the broader challenges often seen in the retail credit sector. The firm reported a non-performing loan ratio of just 1.66%, an improvement over the previous year and significantly lower than the average for consumer finance companies in Vietnam.

Its capital adequacy ratio in 2025 reached 23.3%, well above the 9% regulatory requirement, signalling a highly resilient capital buffer and strong liquidity against potential market risks.

The journey towards this deal began in late 2023 when the Netherland-registered PPF Group announced its intention to divest from the Vietnamese market to refocus on its core European operations. SCB X eventually emerged as the successful bidder, surpassing other regional heavyweights like South Korea’s KB Financial Group.

Ho Chi Minh City-headquartered Home Credit Vietnam currently commands approximately 14% of the domestic retail credit market, ranking as the second-largest player behind FE Credit.

The sudden withdrawal of SCB X leaves the future ownership of Home Credit Vietnam an open question, potentially reopening the door for other international investors eager to tap into Vietnam’s burgeoning middle class and growing demand for retail financial services.