SMBC is the core commercial banking unit of Sumitomo Mitsui Financial Group, Japan's third-largest lender, and it sees opportunities in Asia to tap demand among an emerging middle class to buy big-ticket durable goods on credit. SMBC and Sumitomo Corp declined to comment. The companies are not related, even though they share the same name. Indonesia, Southeast Asia's largest economy, has been hurt by low commodities prices, and its automobile and motorbike industry has been suffering poor sales this year, prompting the central bank in June to ease regulations on minimum down payments for car and motorcycle loans. But longer-term, SMBC remains optimistic about the country's growth prospects and hopes to lure customers of the auto and motorbike finance companies to its other services such as consumer finance and credit cards, the sources said. Reuters
Sumitomo Mitsui is purchasing 35% stakes in two Indonesian vehicle financing firms, Oto Multiartha and Summit Oto Finance, for JPY 40bn ($333m), as the bank looks for increased incomes in Indonesia by ﻿boosting auto ownership in the long term. The deal will see Mitsubishi Motors take a stake of up to 30% in both companies, which are owned by Sumitomo.