Ngô Chí Dũng, VPBank's Chairman of Management Board. — Photo courtesy of the bank

HÀ NỘI — VPBank on Thursday announced the completion of its deal to sell a 49 per cent stake in its FE Credit to Japan’s Sumitomo Mitsui Finance Group (SMFG) in a transaction.

SMBC Consumer Finance Company (SMBCCF), a subsidiary of SMFG, bought the stake.

In the six months since VPBank and SMBCCF signed the capital transfer contract in April 2021, the two sides have completed the necessary steps and procedures for SMBCCF to officially hold 49 per cent of the charter capital at FE Credit. At the same time, FE Credit will be renamed VPBank SMBC Finance Company Limited. VPBank still holds 50 per cent of charter capital at FE Credit, while the remaining one per cent belongs to another investor.

The divestment of half of the charter capital at FE Credit will facilitate VPBank to strengthen its financial capacity and further expand its business activities in other potential segments. Meanwhile, SMBCCF's investment will enable the leading consumer finance company in Japan to expand its business in the region, by sharing its accumulated business know-how and experience in Japan and other Asian countries.

Representatives of VPBank and SMBC Group exchange closing certificate. — Photo courtesy of the bank

Established in 1993, VPBank is now one of the largest private banks in Việt Nam, with total assets of more than VNĐ479 trillion as of the end of the third quarter of 2021. The bank's business is spread across a wide range of retail, corporate, consumer finance and wealth management segments.

FE Credit is currently the leading consumer finance company in Việt Nam with about 50 per cent market share, 20,000 service points and over 13,000 employees nationwide. During the development process, FE Credit has always consistently carried out the mission of "meeting the need to access official credit capital of all classes to improve the quality of life". To date, FE Credit has served nearly 11 million Vietnamese people through its unsecured lending products and services.

SMBC is one of the three largest banking and financial groups in Japan, with total assets of over US$2.1 trillion as of December 31, 2020. The group is active in retail banking, corporate banking, and investment banking globally, with a presence in over 40 countries. SMBCCF is the leading consumer finance company in the Japanese market with more than 900 branches nationwide. VNS