Public Bank Goes on a Shopping Spree: Snags RHB's Vietnam Stockbroking Biz for RM72.6mil

Buckle up, folks! Public Bank Bhd just pulled off a masterstroke, buying RHB Securities Vietnam Company Ltd (RHBSVN) from RHB Investment Bank Bhd (RHBIB) for a jaw-dropping 374 billion dong or RM72.55 million in cash. That’s right, CASH! You can almost hear the cha-ching!

This move means RHB Bank Bhd's investment banking arm is saying, "See ya later!" to Vietnam's stockbroking scene. It's an exit strategy worthy of a standing ovation.

Tan Sri Dr. Tay Ah Lek, the big top gun at Public Bank, is pumped. He says this acquisition is a golden ticket to expand their financial empire in Vietnam. They're not just dipping their toes—they're cannonballing into securities trading and riding the tidal wave of Vietnam's booming capital market.

“Public Bank first ventured into Vietnam in 1992,” Dr. Tay boasts. Back then, they set up PBVN as a joint venture. Fast forward to 2016, and they scored a 100% foreign-owned bank license from the State Bank of Vietnam. Talk about leveling up!

PBVN has been printing money ever since, expanding faster than you can say "diversification." With 40 branches spread across Vietnam, this latest move is like adding nitro to their securities trading engine.

And wait, there's more! This deal isn't just about Vietnam. It's a synergy bonanza for their Indo-China operations. They’ve already got a foothold in Cambodia with Campu Securities plc, making this acquisition a strategic masterstroke.

PBVN inked the deal with RHBIB on Monday. RHBSVN, formerly known as Vietnam Securities Corp since 2006, offers a buffet of brokerage services, investment consultancy, custodian services, and proprietary trading.

Now, RHBIB isn't sulking. No, they’re saying, "We’re streamlining, baby!" This divestment aligns with their long-term game plan to focus resources on markets where they’ve got more muscle. It's all about playing to their strengths and maximizing returns.

RHB Bank expects a nice little payout of RM29.15 million from this sale. They admitted RHBSVN wasn’t exactly a superstar in Vietnam’s stockbroking arena, struggling to scale up and facing tough competition. They recorded a loss of 7.55 billion dong in FY2022, thanks to rising costs and fierce market rivals.

So, there you have it! Public Bank is on fire, snapping up RHBSVN and setting the stage for a securities trading blitz in Vietnam. That's a win-win in anyone's book. Booyah!