4. Increasing products in which we have a competitive advantage

SMFG began to expand high-profitability businesses starting around 2011 by promoting partnerships and M&As. One of the successful examples was the acquisition of an aircraft leasing business. In June 2012, SMBC and Sumitomo Mitsui Finance and Leasing Company, jointly with Sumitomo Corporation, purchased RBS Aviation Capital from the UK-based Royal Bank of Scotland Group for US$7.3 billion. The original management team at the former RBS Aviation Capital (which was renamed SMBC Aviation Capital) remained in place to run the business after the acquisition, thus maintaining the former relationships with a broad range of customers and investors and smoothly achieving business expansion.

In September 2015, SMBC acquired a portfolio of loans largely for middle-market leveraged buyout (LBO) financing in Europe, from GE Corporate Finance Bank SCA, a subsidiary of General Electric Capital Corporation. Through this acquisition, SMBC increased expertise and personnel for the middle-market LBO financing business through its European offices.

As for the project finance business, SMBC continuously demonstrated its strength over years. SMBC has been awarded “Global Bank of the Year” by Project Finance International, the industry’s most authoritative journal, six times since 2008.

SMBC aims to maximize the synergy of global group business operations by leveraging the strength of global investor relations in those products.