Prudential to sell Vietnam consumer finance business for $151m

Prudential has agreed to sell its consumer finance business in Vietnam for $151m.

The business will be bought by Shinhan Card Co, a subsidiary of Korean financial institution Shinhan Financial Group, with which Prudential has also agreed a new long-term bancassurance partnership in Vietnam and Indonesia.

Prudential Vietnam Finance Company Limited was launched in 2006 as the first foreign, non-bank financial institution licensed for consumer finance lending in Vietnam and is now the fourth-largest consumer finance company by outstanding loan balance.

Prudential said it remains fully committed to the Vietnamese market through its life insurance business, Prudential Vietnam Assurance Private Limited, and asset management business, Eastspring Investments Fund Management Company.

Nic Nicandrou, chief executive of Prudential Corporation Asia, said: "PVFC is a high quality business but is not core to our strategy in Vietnam. We are delighted that Shinhan will be able to lead this consumer finance business through to the next stage of its development. Vietnam remains an attractive and important market to Prudential where we have high quality and fast-growing life insurance and asset management operations.

“As part of this transaction, we are further expanding our regional platform through the new long-term bancassurance partnership with Shinhan in both Vietnam and Indonesia to continue serving the growing savings and protection needs of the Asian population."

At 0950 GMT, the shares were down 0.4% to 1,950.50p.