SMFG invests US$1.52 billion in Indonesian bank

Will acquire a 40% stake in PT Bank Tabungan Pensiunan Nasional.

Sumitomo Mitsui Financial Group Inc., Japan’s second largest lender, said it has reached an agreement to acquire the stake in BTPN. It said Sumitomo Mitsui Banking Corporation, its core banking unit, is buying the majority of the 40% stake from U.S. private-equity firm TPG Inc. and its Indonesian partner, Northstar Pacific Partners.

SMBC said it spent around US$946 million to buy 24.3% of BTPN. SMBC bought a 16.87% stake from TPG and Northstar, and is planning to buy another 15.74% from the private-equity firms, subject to approval from Indonesia's government.

BTPN experienced explosive growth in the years that TPG and Northstar owned the bank. Its branch network expanded to some 1,900 outlets from under 400 at the end of 2007. The bank's customer base grew to two million today from 400,000 in the end of 2007.

BTPN's loan book grew 28% to US$3.99 billion last year, while net profit rose 41.4% to US$205.6 million. Return on equity stood at 29.6%, according to Standard & Poor's Capital IQ, compared to around 10% at major Japanese banks.