VPBank sells 49 pct stake in FE Credit to Japanese group
VPBank sells 49 pct stake in FE Credit to Japanese group
VPBank has announced the sale of a 49 percent stake in FE Credit to SMBC Consumer Finance Co., Ltd (SMBCCF), a wholly-owned subsidiary of Japan’s Sumitomo Mitsui Financial Group, Inc. (SMBC Group).
Representatives of VPBank and SMBC Group at the exchange ceremony. Photo by VPBank |
Six months since Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and SMBCCF signed the capital transfer agreement in April 2021, both parties have completed all necessary steps and procedures that allow SMBCCF to officially acquire a 49 percent stake in FE Credit.
Ngo Chi Dung, chairman of the Board of Directors of VPBank. Photo by VPBank |
In addition, VPBank Finance Company Limited was also renamed VPBank SMBC Finance Company Limited. VPBank will still retain a 50 percent stake in FE Credit, while the remaining 1 percent is held by another investor.
The divestment of half of its stake in FE Credit would allow VPBank to enhance its financial capability and further expand business activities in other promising segments. Meanwhile, the investment will allow SMBCCF, a leading consumer finance company in Japan, to expand its business franchise in the region, with accumulated know-how and experience in Japan and other Asian countries.
Established in 1993, VPBank is one of the biggest private banks in Vietnam with total assets of over VND479 trillion as of end of Q3 2021. The bank operates in a wide range of businesses including retail banking, corporate banking, wealth management and consumer finance.
FE Credit is currently the leading consumer finance company in Vietnam with 20,000 points of sale nationwide, and more than 13,000 employees. So far, FE Credit has served about 11 million Vietnamese people with its unsecured lending and services.
SMBC Group is one of the three biggest banking and financial groups in Japan, with total assets of over $2,100 billion as at Dec. 31, 2020. The group operates in retail banking, corporate banking, and investment banking worldwide, with a presence in over 40 countries. SMBCCF is the leading consumer finance company in Japan with more than 900 branches. In Asia, SMBCCF has established subsidiaries in Taiwan, Hong Kong, Thailand, and China.
