Vietnam Prosperity Joint Stock Commercial Bank (VPBank) on Thursday announced the completion of the sale of its 49 percent stake in VPBank Finance Company Limited (FE Credit) to 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 their capital transfer agreement in April 2021, both parties have completed all necessary steps and procedures that allow SMBCCF to officially acquire 49 percent of FE Credit.

In addition, VPBank Finance Company Limited is also renamed VPBank SMBC Finance Company Limited.

VPBank will still retain a 50 percent stake in FE Credit, while the remaining one percent is held by another investor.

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, holding total assets of over VND479 trillion (US$21 billion) as of 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 currently the leading consumer finance company in Vietnam, boasting approximately 50 percent of the market share, 20,000 points of sale 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, the company 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, amassing over $2.1 trillion in total assets as of December 31, 2020.

Maintaining a presence in over 40 countries, the group operates in retail banking, corporate banking, and investment banking.

SMBCCF is the leading consumer finance company in Japan with more than 900 branches.

In Asia, it has established subsidiaries in Taiwan, Hong Kong, Thailand, and mainland China.