News Release

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

December 30, 2009


Sumitomo Mitsui Banking Corporation


Equity Investment in The Bank of East Asia, Limited


TOKYO, December 30, 2009--- Sumitomo Mitsui Banking Corporation (SMBC, President & Chief Executive Officer: Masayuki Oku) announced today that it has agreed with The Bank of East Asia, Limited (BEA, Chairman & Chief Executive: Dr. David K. P. Li) that SMBC will subscribe new shares worth HKD 1,416 million to be issued by BEA, the largest independent local bank in Hong Kong.


On November 17, 2008, SMBC signed a memorandum of mutual understanding (MOMU) on a strategic partnership with BEA, which has a competitive edge in SME and retail businesses and local financial expertise in the mainland China and Hong Kong markets. Through the framework for collaboration established in the MOMU, the two banks have been cooperating in enhancing the level of financial products and services, and providing mutual facilitation of foreign and local currencies.


The aim of the equity investment is to further strengthen the business partnership between the two institutions.


Summary of Share Subscription

Subscription method          :             Private placement of new shares by BEA

Number of shares             :             46,267,200 shares (2.5% of total issued shares)

Subscription price             :             HKD 30.60 per share

Schedule                          :             Closing is scheduled for early January 2010

(After the subscription, SMBCfs share will be 4.05% of total issued shares of BEA on an enlarged capital basis)


Profile of BEA

Establishment                  :             1918

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

Global network              :             250 outlets

Total assets                     :             HKD 411.9 billion (JPY 4,942.3 billion)*

Capital adequacy ratio      :             13.0%*

Listing               :             The Stock Exchange of Hong Kong

Ratings                           :             S&P A-iLong Termj, Moodyfs A2 iLong Termj

*as of June 30, 2009

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