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

HANOI, March 27 (Reuters) - Vietnam Prosperity Joint Stock Commercial Bank said on Monday it has sold a 15% stake for $1.5 billion to Sumitomo Mitsui Financial Group Inc , 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)

Reuters

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

off-the-wire

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

By Reuters

Reuters

Reuters

Gold is never going back to $2,000: 'That's history,' prices to 3x from here – Peter Schiff

Solid price gains for gold, silver after busy news weekend

‘Biggest economic shift since Nixon’: Major U.S. monetary policy changes coming in 12-36 months – Jack Mallers

India joins South Africa in denying BRICS currency plans after Trump’s 100% tariff threat

Silver prices breach $32/oz as bullish technicals and fundamentals suggest potential breakout

off-the-wire

Vietnam&apos;s VPBank completes $1.5 bln stake sale to Japan&apos;s Sumitomo Mitsui

By Reuters

Reuters

Reuters

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