A shrinking domestic market is pushing major Japanese banks and insurance companies to other countries for growth, making their revenues increasingly dependent on overseas loans and investment banking business.
The latest to join the exodus is The Bank of Tokyo-Mitsubishi UFJ (BTMU) who will invest $773 million in the Philippines’ Security Bank, in its latest move to capitalize on growth in that nation’s market.
The main unit of BTMU plans to acquire a roughly 20 percent stake in a private allocation, therefore becoming its second-largest shareholder. The Japanese bank is also considering having a presence on Security Bank’s board.
Moving Overseas
Sumitomo Mitsui Banking, one of BTMU’s main rivals, has obtained stakes in Cambodia’s Acleda Bank as well as Indonesian bank BTPN, while Mizuho Bank has invested in Vietnam’s Vietcombank.
BTMU acquired Thailand’s Bank of Ayudhya in 2013 and is expected to seek further growth in Southeast Asia through mergers and acquisitions.
