3. Banking-Securities collaboration in the wholesale securities business

As for the investment banking business such as underwriting corporate securities, SMBC maintained the previous collaboration between the former Sumitomo Bank and Daiwa Securities Group. In April 2001, the entire business of Sakura Securities and part of the wholesale securities business—such as the M&A advisory—of the former Sakura Bank were transferred to Daiwa Securities SB Capital Markets. At the same time, the securities company changed its name to Daiwa Securities SMBC Co., Ltd., which took part in SMBC Group as a wholesale securities business unit (ownership: 40% by SMBC, 60% by Daiwa Securities Group).

SMBC and Daiwa Securities SMBC pursued divisional cooperation to promote the M&A advisory business, with the former engaging with mid-cap corporate customers and the latter accommodating large listed companies and cross-border M&As.

While promoting the wholesale securities business in the banking-securities collaboration framework, SMBC focused on providing advanced financial products through unconventional financing methods, such as syndicated loans, the liquidation of receivables, structured finance, and real estate non-recourse finance. At SMBC, the Investment Banking Unit was in charge of these businesses.