4. Promoting banking-securities collaboration in Wholesale Banking Unit

On October 1, 2009, SMBC launched banking-securities collaboration programs for wholesale securities services with Nikko Cordial Securities, which became a wholly owned subsidiary of the bank. This was done in order to enhance Nikko Cordial Securities’ wholesale functions as well as to encourage collaboration in portfolio management, underwriting, and M&A- and IPO-related businesses. In April 2010, a collaboration program was started to refer customers of Nikko Cordial Securities to SMBC.

In November 2013, SMBC established a banking-securities concurrent team within the Corporate Banking Unit, to promote collaboration with SMBC Nikko Securities. The concurrent team served two major purposes. First, it offered both banking and securities products, providing information from the two sectors and offering syndicated loans (banking product) and straight corporate bonds (securities product). Second, it developed specialist skills for providing banking and securities services by the same person.

The concurrent team served its purpose well. The diversity of securities products (financing, stock-related, IR and other activities) offered by the bank was appreciated by its major customers, increasing the bank’s reputation as a financial advisor. In consequence, the number of relevant deals grew steadily.