Of Special Interest
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
4th October 2011
SMBC tender for Promise
Sumitomo Mitsui Banking Corporation is to launch a tender operation for Promise Co, increasing its holding from 22% to 100% in the consumer lender. It is to bid ¥780 per share therefore costing ¥88.84bn (€856m £742m $1,156m Y7,379m). The offer is planned for 7th December. The news increased the Promise share price to ¥659, still well below the offer price.
Promise had forecast a first half profit of ¥17.5bn however changed this to a forecast loss of ¥195.4bn. The trend for banks to fully incorporate their loan affiliates is because the consumer lending law which set relatively low maximum interest rates and allowed customers to claim back interest over this amount for contracts entered into before the law was made applies only to non-bank consumer lenders. The extreme nature of the consumer lending law has caused the non-bank consumer loan companies many consecutive years of losses.
Sumitomo Mitsui Banking Corporation is the main operating subsidiary of Sumitomo Mitsui Financial Group.