Sumitomo Mitsui Financial Group shows interest in acquiring banks in Asia

December 22, 2020 | 16:02
Sumitomo Mitsui Financial Group is allegedly going to acquire Asian banks in Vietnam, the Philippines, or India.
sumitomo mitsui financial group shows interest in acquiring bank in asia
Vietnam is in the mix for the potential choices considered by Sumitomo Mitsui Financial Group for its bank acquisition

Japanese megabank Sumitomo Mitsui Financial Group Inc. (SMFG) is allegedly planning to acquire an Asian lender, specifically in Vietnam, the Philippines, and India. Accordingly, the bank will co-operate with a global investment bank on US dealmaking activities, according to Bloomberg.

According to SMFG CEO Jun Ohta, the banking giant is seeking a partner to underwrite equity and bond sales in the US and elsewhere, after the lender was unable to fully take advantage of a corporate financing boom this year.

Last year, SMFG failed in purchasing PT Bank Permata – a local lender in Indonesia – which was acquired by Bangkok Bank Pcl. Sumitomo Mitsui already owns PT Bank TPN in the Southeast Asian nation, according to Bloomberg.

“It was very painful to miss out on Permata. However, we are thinking about the next move,” Ohta said.

Currently, SMFG holds a 15 per cent stake in privately-held lender Eximbank of Vietnam.

Meanwhile, Ohta also said the bank needs to consider acquisitions to boost its overseas investment banking business. He believes a more immediate solution is a tie-up with a big securities firm, Bloomberg reported.

By Lam Tien

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