4. Reorganization of our leasing business
In April 2015, U.S.-based General Electric Company (GE) announced its business restructuring plans, which included the sell-off of a large part of the assets held by GE Capital, the financial services division of GE, in order to focus on the manufacturing division. Sumitomo Mitsui Finance and Leasing Company (SMFL) signed an agreement with GE to acquire the leasing business of GE Japan Corporation for 575 billion yen, as announced in December 2015.
SMFL principally aimed to: 1) strengthen its top-class position in the Japanese leasing market where the oligopoly was progressing; 2) absorb the expertise developed by GE, including efficient digital data marketing and advanced automated credit screening systems; and 3) develop cross-selling strategies, taking advantage of the two companies’ respective customer bases not overlapping. GE Japan’s leasing business became a wholly owned subsidiary of SMFL in April 2016, and changed the company name to SMFL Capital Co., Ltd. in September 2016.
In November 2017, SMFG and Sumitomo Corporation announced the plan to restructure the leasing business centered on SMFL, positioning the company as the platform for building a strategic leasing joint business. Based on this plan, the co-ownership of SMFL by SMFG and Sumitomo Corporation was changed from 60-40 to 50-50, and then SMFL was deconsolidated from SMFG to become an equity-method affiliate of SMFG and Sumitomo Corporation. In January 2019, SMFL and SMFL Capital merged to strengthen the domestic leasing business base.
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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