Sumitomo Mitsui Financial Group Inc. is seeking to become more of a dealmaker in the US, after a big bet it’s taking in Wall Street firm Jefferies Financial Group Inc.
(Bloomberg) — Sumitomo Mitsui Financial Group Inc. is seeking to become more of a dealmaker in the US, after a big bet it’s taking in Wall Street firm Jefferies Financial Group Inc.
“In the US, we have been mainly operating commercial banking businesses centered around loans,” said Fumihiko Ito, who is the bank’s chief financial and strategy officer, at a media briefing. “We will shift to investment banking business such as stock and bond underwriting and M&A advisory, fee-earning businesses.”
Ito was speaking after Japan’s second-biggest lender predicted it will post its highest profit in 10 years, driven by growth in its domestic retail and wholesale business. SMFG last month announced it intends to triple its stake in Jefferies to boost US capital markets and M&A advisory businesses.
Ito also said the firm is seeking global acquisition opportunities in asset management, and isn’t interested in buying the branch networks of US regional banks.
Like rival Japanese banks, the US business is one of the growth drivers for SMFG. Chief Executive Officer Jun Ohta has been saying the gap with competitors became very obvious when it failed to benefit from a capital markets boom during the pandemic years.
Smaller rival Mizuho Financial Group Inc. this week dismissed teaming up with a US bank to expand in the world’s biggest economy, saying the firm should instead build up capabilities on its own.
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