Profile: Sumitomo Mitsui Financial Group Inc (SMFG.N)
21 Feb 2017
Sumitomo Mitsui Financial Group, Inc., incorporated on December 2, 2002, is a holding company for Sumitomo Mitsui Banking Corporation (the Bank) and its subsidiaries. The Company operates through four segments: Commercial Banking, Leasing, Securities and Consumer Finance. The Company and its subsidiaries offer a range of financial services, including commercial banking, leasing, securities, consumer finance and other services.
As of March 31, 2016, the Company's loans and advances totaled Japanese yen 88,862,371 million. The Company's investment securities, including available-for-sale financial assets and held-to-maturity investments, totaled Japanese yen 19,865,347 million, as of March 31, 2016. It offers a range of standard banking accounts through the offices of its banking subsidiaries in Japan, including non-interest-bearing demand deposits, interest-bearing demand deposits, deposits at notice, time deposits and negotiable certificates of deposit. Its deposit balances, as of March 31, 2016, were Japanese yen 125,940,797 million. The borrowings include short-term borrowings, unsubordinated and subordinated long-term borrowings, liabilities associated with securitization transactions of its own assets and lease obligations. As of March 31, 2016, its borrowings were Japanese yen 9,914,129 million.
The Company offers commercial banking services to a range of customers, including corporations, mid-sized companies, small-sized companies, individuals, governments and governmental entities mainly through the Bank. The Bank has franchises in both corporate and consumer banking in Japan. The Bank provides wholesale banking services overseas. In Japan, the Bank accepts deposits from, makes loans to, extends guarantees to and provides other products and services to corporations, individuals, governments and governmental entities. The Bank offers financing solutions through loan syndication, structured finance and project finance to the corporate customers in the domestic and overseas markets. The Bank also underwrites and deals in bonds issued by or guaranteed by the Government of Japan and local government authorities. Internationally, the Bank operates through a network of branches, representative offices, subsidiaries and affiliates to provide loan syndication, project finance and cash management services and participate in international securities markets.
The Bank's Wholesale Banking Unit offers business solutions for the management issues that are faced by the companies in Japan. The Bank's Wholesale Banking Unit provides a range of financial products and services to those companies, through 178 sales channels of the Bank, as of March 31, 2016. The financial products and services that the Wholesale Banking business unit provides include deposits, loans, including syndicated loans, commitment lines, structured finance and nonrecourse loans, settlement services, cash management, leasing, factoring, management information systems consulting, collection and investment banking services. The Wholesale Banking Unit also provides products and services, including services for globalizing corporations; loan products and services to promote socially responsible activities, and services to promote business-to-business (B-to-B) transactions.
The Bank's Retail Banking Unit provides financial services to both consumers residing in Japan and domestic small-sized companies. For consumers, Retail Banking Unit offers a range of financial services, including personal bank accounts, deposit products, such as ordinary deposits, time deposits and foreign currency deposits. It offers products and services, including housing loans, investment trust, insurance products and consumer finance services. The housing loans are principally secured by collateral or supported by guarantees. The Bank provides a range of investment trust products with varying risk-return profiles. The Bank, together with its subsidiary, SMBC Nikko Securities Inc. (SMBC Nikko Securities), offers discretionary investment management services. The Bank offers pension-type insurance, whereby customers making premium payments are able to receive annuity payments when they reach a certain age. The Bank offers a range of consumer loan products, such as unsecured card loan products to its individual customers.
As of March 31, 2016, the Bank had a domestic network consisting of 440 branch offices. As of March 31, 2016, the Bank offers its customers' access to 53,284 automated teller machines (ATMs). The Bank's Retail Banking Unit also offers Internet banking services for consumers. The Bank's International Banking Unit mainly supports companies, financial institutions, sovereign/quasi-sovereign entities outside Japan and multinational companies operating in Japan. The business unit provides a range of products and services, including loans, deposits, clearing services, trade finance, project finance, loan syndication and global cash management services. As of March 31, 2016, the Bank's international network consisted of 17 branches, 17 sub-branches and five representative offices.
The Bank's Treasury Unit operates in the domestic and international money, foreign exchange, securities and derivatives markets to serve customer needs and the Bank's own asset and liability management requirements. The Bank is engaged in payment services and foreign exchange. The Bank's Investment Banking Unit provides financial services and financing solutions; securities intermediary services for corporate clients, corporate bond trust services, other trust services, principal investments and solutions related to industrial sectors. The Corporate Advisory Division provides a centralized information platform that maintains the Bank's accumulated information and knowledge concerning a range of industries. The Private Advisory Division addresses areas, including private banking, corporate employees business, business succession and asset succession consulting for business owners and high-net-worth individuals. The Transaction Business Division provides cash management, settlement, foreign exchange and supply chain finance for its corporate clients.
The Bank has equity interest in Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL), which provides a range of leasing services, including equipment lease, operating lease, leveraged lease and aircraft operating lease. SMBC Aviation Capital Limited, a subsidiary of SMFL, is engaged in aircraft leasing business. The Bank's subsidiary in the United States, SMBC Leasing and Finance, Inc., engages in the leasing business.
The Bank's subsidiary, SMBC Nikko Securities Inc., offers a range of financial products, and investment consultation and administrative services to its individual and corporate customers in Japan. For individual customers, SMBC Nikko Securities Inc. provides consulting services through 123 branches nationwide, as of March 31, 2016. For corporate customers, it also offers trading capabilities and financial products, debt and equity underwriting, and merger and acquisition advisory services, mainly in Japan. Its subsidiary, SMBC Friend Securities Co., Ltd., is a securities company focusing on retail business.
The Company's subsidiary, Sumitomo Mitsui Card Company, Limited (Sumitomo Mitsui Card), conducts credit card business. Sumitomo Mitsui Card offers a range of settlement and finance services. It issues a range of affiliated credit cards in cooperation with partners, including railway companies, airline companies, department stores and retailers. Sumitomo Mitsui Card also provides services for customers, such as travelers and retailers both in Japan and China. Cedyna Financial Corporation, the Bank's subsidiary, conducts credit card, installment, such as shopping credit and automobile loan, and solution, such as collection outsourcing and factoring businesses. Its subsidiary, SMBC Consumer Finance Co., Ltd., provides consumer loans. Its subsidiary, Sakura Card Co., Ltd., engages in the credit card business, and its subsidiary, SMM Auto Finance, Inc., engages in automobile sale financing.
Sumitomo Mitsui Financial Group Inc
SMBC Head office Bldg.
CHIYODA-KU TKY 100-0005
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