Finansia Syrus Securities has reflected its view on SCB X (SET: SCB) announcing two significant updates to the Stock Exchange of Thailand (SET) on March 26, 2026.
First, the bank disclosed the termination of its previously agreed investment in Home Credit Vietnam Finance Co., Ltd. (HCV), a deal valued at approximately VND 20,973 billion (about THB 31 billion). While SCB had already secured shareholder approval and proceeded with the Share Purchase Agreement (SPA), external factors beyond the control of both parties prevented the fulfillment of necessary conditions within the SPA’s timeframe. As a result, SCB’s board resolved to terminate the agreement, stating this would not impact the bank’s financial standing.
The bank clarified that it had already received the green light from its side, but HCV could not secure investment approval within two years as required by the SPA. Additionally, there are no cancellation fees or associated costs.
Finansia Syrus Securities noted that HCV’s projected results were not factored into SCB’s performance forecasts, and SCB continues to seek inorganic expansion opportunities both at home and abroad. With a robust capital position—CET1 ratio at 17.9% as of end-2025—SCB is well positioned to pursue large-scale investments moving forward.
Second, SCB notified the SET about the establishment of Bank X Public Company Limited, a new entity pursuing a branchless or “virtual bank” license. SCBX holds a 90% stake in Bank X, which currently has registered capital of THB 10,000, with plans to increase it to THB 5 billion by 2026 or when a virtual bank license application is submitted to the Ministry of Finance.
Finansia Syrus is positive on this long-term strategy, seeing potential for SCBX to expand digital banking offerings and reach underserved customer segments using advanced technologies. SCB’s strong partnerships include regional players KakaoBank (Korea) and WeBank (China), both digital banking pioneers. Data shows most digital banks globally take over a decade to break even, but Asian peers have become profitable much earlier—KakaoBank in year four, and WeBank in year two, owing to rapid loan portfolio growth and scalability.
SCB noted that Bank X’s launch, initially targeted for mid-2026, may be delayed to the second half of 2026. Finansia Syrus has not incorporated any virtual bank contributions into its current earnings forecasts.
Additionally, Finansia Syrus Securities maintains a “BUY” recommendation on SCB with a target price at THB 170 per share.
