SMFG in Talks to Raise VPBank (VPB) Stake to 20% in USD 1.5B Deal

Overview

Sumitomo Mitsui Financial Group (SMFG) is reportedly negotiating to increase its ownership in VPBank (ticker VPB, HOSE) from 15% to 20%, according to a Reuters report dated 25 September. The two sides have not agreed on valuation, and VPB shares closed the session up more than 4% at VND 23,000 on volume exceeding 44 million units.

Key Facts

• SMFG, through Sumitomo Mitsui Banking Corporation (SMBC), is targeting a 20% stake in VPBank, up from the 15% acquired in 2023.
• The 2023 transaction was valued at approximately USD 1.5 billion, priced roughly 40% above the prevailing market price at the time.
• Negotiations have run for several months, with SMBC aiming to close within the year, per Reuters.
• VPBank is seeking a price above the current market quotation; SMBC has so far declined the premium.
• SMBC is internally discussing accumulating shares via on-market matching orders rather than a private placement.
• VPB closed 25 September at VND 23,000, up over 4%, with intraday trading touching the ceiling limit.
• VPBank’s market capitalization has risen more than 12% over the past six months.
• SMBC also holds 49% of FE Credit, a VPBank subsidiary.

What Happened

Reuters reported on 25 September that a legal entity under Sumitomo Mitsui Financial Group wants to lift its holding in VPBank to 20%, but the two parties have not settled on a price. The talks have been underway for several months. SMBC reportedly wants to complete the transaction this year, while disagreement over valuation persists. VPBank is said to want a sale price above the current market quotation. In 2023, SMBC paid roughly 40% above market, equivalent to about USD 1.5 billion, for a 15% stake in the Vietnamese bank.

This time, the Japanese institution has not accepted a comparable premium and is discussing internally whether to raise its ownership through on-exchange matching rather than a private issuance. Both VPBank and SMBC declined to comment. SMBC is the banking arm of SMFG, one of Japan’s three largest financial institutions, founded in 2001 and present in more than 40 countries. In Vietnam, SMBC was a strategic shareholder in Eximbank from 2007 before divesting in 2023, then acquired 15% of VPBank shortly afterward. VPBank, established in 1993, is among Vietnam’s largest private banks; first-half consolidated pre-tax profit reached nearly VND 18,900 billion, up 68% year on year and equal to almost 46% of the full-year plan.

Market Context

VPB trades on the Ho Chi Minh City Stock Exchange (HOSE) and closed at VND 23,000 on 25 September, the session in which the Reuters report circulated. The stock rose more than 4% on volume above 44 million units, touching the ceiling limit at one point intraday. Over the preceding six months, VPBank’s market capitalization has increased more than 12%. The move places VPB among the better-performing large-cap banks in a sector that has drawn sustained foreign strategic interest, with banking remaining a core allocation for Vietnam-focused institutional portfolios.

Strategic Significance

A move to 20% would deepen SMFG’s access to Vietnamese consumer and corporate banking, a franchise it already reaches indirectly through its 49% holding in FE Credit. For VPBank, the key variable is price: the 2023 round was struck at a roughly 40% premium, and management is again seeking a premium, while SMBC prefers on-market accumulation. That distinction matters for existing shareholders, since a private placement would dilute them at a negotiated price, whereas open-market buying would support the quoted price without issuing new shares. The outcome also tests how much foreign strategic capital is willing to pay for Vietnamese bank exposure at current valuations.

What to Watch

• Confirmation of an agreed valuation or a formal filing on stake size and transaction method.
• Whether SMBC accumulates via on-market orders, visible in foreign-investor net buying data for VPB.
• Any State Bank of Vietnam approval or foreign-ownership limit filing required for the higher stake.
• VPBank’s third-quarter earnings release, following first-half pre-tax profit of nearly VND 18,900 billion.
• Commentary from SMFG on Vietnam strategy at its next results briefing.