PSBank, Sumitomo to form P2-billion joint venture

MANILA, Philippines - Philippine Savings Bank (PSBank) and Sumitomo Corp. of Japan are forming a P2-billion joint venture company to specialize in financing and leasing of motorcycles.

The partnership marks the first time a Philippine bank will tie up with a Japanese firm for the motorcycle financing and leasing business, a lending market that has been dominated by rural banks and smaller thrift banks.

In Asia, Sumitomo has invested in companies in China, Taiwan, Korea, Thailand, Singapore, Malaysia, the Philippines, Indonesia, Vietnam, and India, among others. It has established considerable experience in motorcycle and vehicle leasing and financing through its finance companies in Indonesia and Thailand.

PSBank, the thrift bank of the Metrobank Group of Companies, has one of the largest branch network nationwide and extensive experiencing in the auto loan business.

“With this major investment by Sumitomo and PSBank, additional credit to the motorcycle industry will be provided, thus helping to expand the market and encourage increased investments by Honda, Yamaha and other major motorcycle assemblers,” the bank said in a statement.

PSBank is part owner of Toyota Financial Services Philippines Corp. (TFS Philippines) which services the customers of Toyota through financing and leasing services, as well as wholesale financing for Toyota dealers.

TFS Philippines, with total capital of P1 billion, is 60 percent owned by Toyota Financial Services Corp. a leading financial services group based in Japan and controlled by Toyota Motor Corp. The Metrobank Group holds 40 percent, with 25 percent held by PSBank and Metrobank accounting for 15 percent.

TFS Philippines ranked third largest finance firm by the Securities and Exchange Commission (SEC) last year, has a customer base of over 35,000.