VPBank announced the completion of a 49 per cent stake sale of its consumer finance arm FE Credit by 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 2021, both parties have completed all necessary steps and procedures that allow SMBCCF to officially acquire 49 per cent stake in FE Credit.
In addition, FE Credit is also renamed as VPBank SMBC Finance Co., Ltd. VPBank will still retain a 50 per cent stake in FE Credit, while the remaining 1 per cent is held by another investor.
|Representatives of VPBank and SMBC group exchange the capital transfer certificate |
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.
Founded in 1993, VPBank is currently one of the biggest private banks in Vietnam with total asset value surpassing VND479 trillion ($2.08 billion) 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.
|Ngo Chi Dung, chairman of VPBank giving a remark at the capital transfer ceremony |
FE Credit is currently the leading consumer finance company in Vietnam with approximately 50 per cent of the market share, 20,000 points of sales nationwide, and more than 13,000 employees.
Throughout its development, FE Credit is committed to accomplishing its mission of “satisfying the need of people of all strata to access formal credit to improve their livelihood”. So far, FE Credit has served about 11 million Vietnamese people with its unsecured lending and services.
Meanwhile, SMBC Group is one of the three biggest banking and financial groups in Japan, with total asset value exceeding $2,100 billion as at December 31, 2020. The group operates in retail banking, corporate banking, and investment banking worldwide, with its 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.