Chapter 2
Enhancing Group Businesses
Sumitomo Mitsui Financial Group (SMFG) reinforced the group business, primarily through reorganizing group companies and increasing collaboration, while Sumitomo Mitsui Banking Corporation (SMBC) pressed ahead with its business model reform.
1. Enhancing SMBC Nikko Securities' wholesale business
As Nikko Cordial Securities (renamed SMBC Nikko Securities Inc. in April 2011) joined SMBC Group in October 2009, business enhancement programs for the wholesale business of SMBC Nikko Securities began. The programs also aimed to enhance banking-securities collaboration, in both wholesale and retail businesses. The programs prioritized such businesses as stock underwriting as well as sales and trading—particularly for the secondary stock and derivatives market—and also the cross-border M&A advisory business. In addition, overseas offices were set up.
To strengthen stock underwriting functions, SMBC Nikko Securities increased the relevant staff headcount in the Corporate Clients Division and bolstered cooperation between the Corporate Clients Division and the Investment Banking Division. In the area of sales and trading, while ensuring the steady progress of system development, the expansion of sales capabilities, including the launch of the Equity Research Department in August 2010, was another effort to provide professional information on an ongoing basis. The company also worked hard to increase institutional investors in and outside of Japan. For the cross-border M&A advisory business, SMBC Nikko Securities made efforts to work with overseas investment banks that handle major projects, and to recruit specialists in order to win contracts of cross-border M&A projects.
SMBC Nikko Securities started overseas business in London and New York in October 2010, Hong Kong and Shanghai in January 2011, and Singapore in October 2012. These overseas offices were engaged primarily in lower-risk businesses, such as Japanese stock brokerage, M&A advisory, and bond brokerage. The Shanghai subsidiary provided cross-border M&A advisory business. In October 2013, the U.S. subsidiary opened a branch in San Francisco. As a result, with the five local subsidiaries operating outside Japan, SMBC Nikko Securities established capabilities for global stock offerings by fiscal year 2013 (ended March 2014). Those offices began to offer bond brokerage, connecting overseas issuers and Japanese investors.
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Chapter 1The Financial Crisis and Realignment of the Financial Sector
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Chapter 2The Birth of SMBC and SMFG
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Chapter 3Initiatives Pursued by SMBC Banking Units in the Early Years
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Chapter 3Initiatives Pursued by SMBC Banking Units in the Early Years
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- Enhancing our retail consulting and payments & consumer finance businesses
- Enhancing corporate financial solutions
- Banking-Securities collaboration in the wholesale securities business
- Challenges facing our global banking business
- Actions by Treasury Unit in preparation for rising interest rates
- Integration of operating systems and administrative functions
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Chapter 4Embarking on Fresh Challenges Under New Leadership
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Chapter 4Embarking on Fresh Challenges Under New Leadership
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- Changes of leadership and the announcement of our new management policy
- Developing group business strategies
- Addressing antitrust issues
- Completing repayment of public funds
- LEAD THE VALUE
- Enhancing our retail financial consulting business
- Enhancing our corporate solution business
- Enhancing our investment banking business
- Global banking business turnaround
- Upgrading risk management in preparation for Basel II
- Development of human resources
- CSR activities
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Chapter 5SMFG’s Response to Global Economic and Financial Turmoil
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Chapter 6Preparing for the Next Decade
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Chapter 1Business Model Reform Under Challenging Business Conditions
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Chapter 1Business Model Reform Under Challenging Business Conditions
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- Our journey under new leadership (the second decade)
- Focusing on growth industries and businesses
- Reforming domestic business operations
- Promoting banking-securities collaboration in Wholesale Banking Unit
- Structural reform of our retail business
- Meeting the needs of an aging society
- Abenomics and Treasury Unit's nimble portfolio management
- Operating in a negative-interest-rate environment
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Chapter 2Enhancing Group Businesses
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Chapter 3Expanding Our Global Business
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Chapter 4Enhancing Corporate Infrastructure Under a New Governance Framework
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Chapter 4Enhancing Corporate Infrastructure Under a New Governance Framework
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- New leadership and enhancing corporate governance
- Introducing group-wide business units and CxO system
- Improving capital, asset, and cost efficiency
- Pursuing our cashless payment strategies
- Retail branch reorganization
- Customer-oriented business conduct
- Enhancing internal-control frameworks
- Valuing diversity and revision of our HR framework
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Chapter 5The Path for Our Future
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Chapter 6Opening a New Chapter in SMBC Group’s History