The Vietnam Prosperity Joint Stock Commercial Bank (VPBank) announced on October 28 the completion of the sale of a 49 per stake in the VPBank Finance Company Limited (FE Credit) to the SMBC Consumer Finance Co., Ltd (SMBCCF), a wholly-owned subsidiary of Japan’s Sumitomo Mitsui Financial Group, Inc. (SMBC Group).

As such, six months since VPBank and SMBCCF signed the capital transfer agreement in April, both parties have completed all necessary steps and procedures to allow SMBCCF to officially acquire the 49 per cent stake in FE Credit. It will be renamed VPBank SMBC Finance Company Limited. VPBank will retain a 50 per cent stake, with the remaining 1 per cent held by another investor.

The divestment of half of its stake in FE Credit will 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.

About VPBank & FE Credit

Established in 1993, VPBank is one of the largest private banks in Vietnam, with total assets of over VND479 trillion ($21.3 billion) as of the end of the third quarter of 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 a market share of approximately 50 per cent, 20,000 points of sale nationwide, and more than 13,000 employees. Throughout its development, FE Credit has been committed to accomplishing its mission of “satisfying the needs of people in all strata of society to access formal credit to improve their living standards”. FE Credit has served some 11 million Vietnamese people to date, with unsecured lending and services.

About SMBC Group & SMBCCF

The SMBC Group is one of the three largest banking and financial groups in Japan, with total assets of over $2,100 billion as of December 31, 2020. The group operates in retail banking, corporate banking, and investment banking worldwide, with a presence in over 40 countries and territories. The SMBCCF is the leading consumer finance company in Japan, with more than 900 branches. In Asia, SMBCCF has established subsidiaries in Taiwan (China), Hong Kong (China), Thailand, and China.