Thailand, Japan firms acquire Home Credit PH for P24.4 billion

CEBU, Philippines — Access to consumer loans in the Philippines is seen to ease further as Home Credit Philippines (HC Consumer Finance Philippines, Inc.) aims to expand its consumer finance portfolio as two major financial institutions based in Thailand and Japan complete their acquisition of the credit provider for P24.4 billion.

“We are pleased to announce the handover of Home Credit Philippines to our new shareholders Krungsri and Mitsubishi UFJ Financial Group (MUFG), both market leaders in the financial industry. Together with our new shareholders, we are opening the next chapter for Home Credit Philippines, building on the high performance that we have set over the past nine years. We are optimistic of our future together,” shared David Minol, Home Credit Philippines chief operating officer (CEO).

Home Credit Philippines has grown to become a market leader having the widest distribution network of more than 15,000 stores nationwide. This allowed the company to acquire a growing customer base of almost 10 million as of date in its nearly 10 years of operations in the country.

“The acquisition of Home Credit Philippines is a testament to the strong business it has established in the country and the growth opportunity that Krungsri and MUFG have seen for the company to further expand and maintain its dominance in the local consumer finance market,” Minol added.

According to Krungsri president and chief executive officer (CEO) Kenichi Yamato said, with the acquisition of Home Credit in the Philippines, “we have achieved another significant milestone in our ASEAN expansion strategy through the successful execution of our medium-term business plan. By incorporating Home Credit in the Philippines into its portfolio, the Bank aims to cater to the evolving financial needs of consumers with a full range of innovative consumer finance products and services. Building upon its strong presence in the high potential country, this acquisition further solidifies Krungsri’s position as a leading financial institution in ASEAN.”

“With the expertise and extensive experience, Krungsri, together with Home Credit, is well-positioned to capitalize on the growing demand for consumer finance solutions and reaffirms its commitment to providing suitable products and services that empower individuals and drive sustainable growth in the market,” Yamato added.

PPF Group the parent company of Home Credit Philippines based in Czech Republic sealed an agreement with MUFG and Krungsri to acquire Home Credit Philippines.

Krungsri holds the majority stake of 75 percent and MUFG the remaining 25 percent.

This transaction is set to bolster the business operations of Home Credit Philippines as it continues to provide more Filipinos access to credit while building on Krungsri’s expertise as one of Thailand’s finance leaders.

Home Credit Philippines is expected to retain its brand and continue its usual operations under the same local leadership team, with guidance from Krungsri. The company aims to further grow its consumer finance portfolio as it synergizes with both banks.

“Together, we have empowered nearly 10 million Filipinos to access the formal economy, via our innovative products and services. We are proud of these achievements and will be watching the company’s future growth with interest,” said Home Credit Group CEO, Radek Pluhar.

In 2018, Home Credit was granted the license to operate as a credit card issuer by Bangko Sentral ng Pilipinas (BSP), making it the first and only non-bank financial institution in the country to issue credit cards. Home Credit continues to expand its digital and online presence, and now has millions of users of its My Home Credit app.  — (FREEMAN)