It took VPBank and SMBCCF six months to complete all necessary steps and procedures that allow SMBCCF to officially acquire 49% stake in FE Credit since they inked the capital transfer agreement in April 2021.

In addition, VPBank Finance Company Limited is renamed as VPBank SMBC Finance Company Limited. VPBank will still hold a 50% stake in FE Credit, while the remaining 1% belongs to another investor.

Mr. Ngo Chi Dung, Chairman of VPBank

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.

Established in 1993, VPBank is currently one of the biggest private banks in Vietnam with total assets of over VND479 trillion by the end of Q3/2021. The bank operates in a wide range of businesses including retail banking, corporate banking, wealth management and consumer finance.

FE Credit is now the leading consumer finance company in Vietnam with approximately 50% 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.

SMBC Group is one of the three biggest banking and financial groups in Japan, with total assets of over US$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 (China), Hong Kong (China), Thailand, and China.

PV