Vietnam's VPBank completes $1.5 bln stake sale to Japan's Sumitomo Mitsui

VP Bank AG

27/03/2023 07:13

HANOI, March 27 (Reuters) - Vietnam Prosperity Joint
Stock Commercial Bank  VPB.HM       said on Monday it has sold a
15% stake for $1.5 billion to Sumitomo Mitsui Financial Group
Inc  8316.T , expanding the Japanese bank's presence in one of
Asia's fastest-growing economies.
    Following the investment, VPBank, whose business ranges
across retail, corporate, consumer finance and wealth management
operations, will become Vietnam's second-largest private lender
by charter capital, with $5.96 billion.
    "The investment is a part of VPBank's plan to replenish
capital since 2022 and helps the bank achieve growth target,"
VPBank said in the statement released after the signing
ceremony. 
    The deal comes as Vietnam's central bank seeks to tighten
limits on holding stakes in banks, a move that may make the
banking sector less attractive to foreigners. 
    Sumitomo Mitsui, Japan's second-largest banking group is
seeking to capture growth in Asian emerging markets through
acquisitions, spurred by limited business opportunities at home
with ultra-low interest rates and an ageing population.
    In late 2021, it acquired a 49% stake in Vietnamese consumer
lender FE Credit from VPBank. 
    Shares of Hanoi-based VPBank have risen 18.16% this year,
valuing the lender at around $6.04 billion, while its net income
jumped 55.6% to $774.30 million in 2022. 

        

($1 = 23,505 dong)

 (Reporting by Phuong Nguyen; Editing by Kanupriya Kapoor)
 ((Phuong.Nguyen@thomsonreuters.com; +84-24-3852-9623;))