Sumitomo Mitsui Banking Corporation (SMBC) has recently opened a representative office in Washington, D.C., aiming to strengthen ties with key stakeholders in the U.S. capital and enhance support for the U.S. economy. This office, which will be fully operational in October 2023, is part of SMBC's broader strategy to deepen its engagement in the U.S. market. The office will be led by a team with extensive experience in government and the financial services sector, reflecting SMBC's commitment to serving corporate, institutional, and municipal clients in the region. [9e9052b0]
In addition to this expansion, Sumitomo Mitsui Financial Group Inc (SMFG) is looking to deepen its alliance with Jefferies Financial Group Inc, focusing on equity trading to enhance its global business. The collaboration, which began in 2021, primarily involves underwriting stocks and bonds. CEO Toru Nakashima has acknowledged SMFG's weaknesses in equities outside Japan, especially as the global share value has doubled to around US$125 trillion over the past decade. Jefferies' equities business saw a significant rise of 42% in fiscal Q3, further motivating this strategic alliance. [afd72d7b]
SMFG's ranking in U.S. equity offerings has improved from 50th in 2020 to 24th in 2024, and the group holds a 15% economic ownership stake in Jefferies. Future increases in this stake will depend on regulatory approval. Nakashima also plans to establish a back-office and IT center in India as part of this expansion strategy. SMFG anticipates a 20% rise in net income to ¥1.16 trillion, despite concerns over Japan's sovereign debt risk. The strong loan demand in Japan, driven by digitalization and decarbonization efforts, further supports SMFG's growth ambitions. [afd72d7b]