News Release

Increased Investment in The Bank of East Asia, Limited(1/1)

December 5, 2012


Sumitomo Mitsui Banking Corporation


Increased Investment in The Bank of East Asia, Limited


TOKYO, December 5, 2012--- Sumitomo Mitsui Banking Corporation (SMBC, President: Takeshi Kunibe) announced today that it has agreed with The Bank of East Asia, Limited (BEA, Chairman & Chief Executive: Dr. David K. P. Li) to increase its investment in BEA, the largest independent local bank in Hong Kong, through an acquisition of about 111.57 million new shares for HKD 3,301 million.


In November 2008, SMBC signed a memorandum of mutual understanding (MOMU) with BEA and, in January 2010, subscribed for new shares in BEA for about HKD 1,416 million. , BEA has a competitive edge in retail banking, including SMEs, and local financial expertise in mainland China and Hong Kong markets. SMBC and BEA have been cooperating through these initiatives to enhance their financial services in mainland China and Hong Kong.


The aim of this additional investment is to further strengthen the business base of SMBC in Greater China. SMBC will continue its collaborative efforts to offer higher-value-added financial services to support the business activities of its clients in this region.



Summary of Share Subscription

Subscription method          :             Private placement of new shares by BEA

Number of shares             :             111,572,600 shares (5.27% shares of existing total issued shares)

Subscription price             :             HKD 29.59 per share

Schedule                          :             To be acquired in December 2012


After the subscription, SMBCfs share will increase from 4.73% to 9.50% of total issued shares of BEA (on a fully diluted basis)


Profile of BEA

Establishment                  :             1918

Location of head office    :             10 Des Voeux Road Central, Hong Kong

Global network              :             224 outlets

Total assets                     :             HKD 641.5 billion (JPY 6,549.6 billion) as of June 30, 2012

Capital adequacy ratio      :             13.2% as of June 30, 2012

Listing               :             The Stock Exchange of Hong Kong

Ratings                           :             S&P: A (long term) / Moodyfs: A2 (short term)

To News Release Top Page

Go to top of page