Sumitomo Mitsui Financial Group, Inc. (SMFG) and Sumitomo Mitsui Banking Corporation (SMBC) today announced changes to the organizational structure of SMFG and SMBC as below, effective April 1, 2013.
1. International business
(1) Strengthen business in emerging markets (SMBC and SMFG)
“Emerging Markets Business Division” will be newly established within International Banking Unit of SMBC to develop business strategies and plans for further intensifying our commitment to emerging markets, including the fast growing Asia, and steadily developing the commercial banking business with Asia as our home market.
“Global Business Planning Department” will be newly established within SMFG to strengthen collaboration between group companies on international business, mainly in emerging markets.
(2) Strengthen overseas transaction banking business (SMBC)
The structure for promoting overseas transaction banking business, including ancillary financing, mainly in Asia where commercial flows are increasing in step with the economic development of the region, will be strengthened as below.
(a) Global Transaction Banking Department, formerly a sub-department of Electronic Commerce Banking Department and in charge of managing cross-border cash management and settlement related businesses, will become an independent department; and the name of Electronic Commerce Banking Department will be changed to “Transaction Banking Department.”
(b) “Global Supply Chain Finance Department” will be newly established within Global Trade Finance Department.
2. Domestic retail business
(1) Strengthen bank-securities collaboration (SMBC)
“Securities Business Collaboration Planning Department” will be newly established within Consumer Banking Unit in order to further strengthen collaboration between SMBC and SMBC Nikko Securities Inc. in asset management services for retail clients.
We will further enhance the products and services offered through the bank-securities collaboration by testing and verifying new bank-securities collaboration models, mainly by the new department.
(2) Concentration of head-office functions for asset succession related business (SMBC)
The head-office functions related to asset-succession planning business will be strengthened and concentrated in Private Advisory Business Department in order to accommodate such needs of business owners and retail clients in an integrated manner.
Specifically, the functions of Wealth Management Department related to advising retail clients on wealth succession and testamentary trust planning will be transferred to Private Advisory Business Department which advises business owners on business succession planning.
Further, “Testamentary Trust Department” will be newly established within Private Advisory Business Department and functions related to testamentary trust planning will be concentrated in the department as the business requires tailored client support by highly expert staff.
As a result, Wealth Management Department will be abolished and its functions related to asset management consulting will be transferred to Financial Consulting Department.
3. Domestic corporate banking business
(1) Restructure and strengthen corporate advisory functions (SMBC)
Corporate Advisory Division in charge of advisory business will be restructuredto comprise three advisory departments, “Advisory Department I – III”, and “Corporate Research Department”, and experienced staff with expert knowledge of industries will be concentrated in these departments. Advisory Department I – III will each conduct advisory business specializing in certain industries, and Corporate Research Department will conduct research on industries and individual companies. Further, overseas representatives will also be deployed by Advisory Department I – III to build up knowledge on a global basis.
Under the new structure, we will further enhance our research and solution providing capabilities and strengthen our ability to support the strategy planning of large companies from the early stage.
(2) Concentration of support functions for banking offices (SMBC)
Banking office support functions related to developing total solutions to business restructuring and financial products and services needs of our corporate clients, mainly to medium-sized companies and small and medium-sized enterprises (SME), will be transferred from Corporate Advisory Division and Business Promotion & Solution Department to a newly established department, “Strategic Corporate Business Department,” straddling Corporate Banking Unit and Middle Market Banking Unit, in order to more effectively accommodate such needs.
Further, Business Promotion & Solution Department will be abolished and its functions related to managing operations of banking offices will be transferred to Planning Department, Corporate Banking Unit & Middle Market Banking Unit.
(3) Strengthen capability to respond effectively to financing needs of SME (SMBC)
“Corporate Financial Consulting Office” will be newly established within Financial Development Office and functions related to supervising and supporting banking offices on facilitating financing to SME will be transferred to the new department from Credit Monitoring Departments of Credit Department I and Credit Department II, Middle Market Banking Unit, in order to offer even more tailored financial services to SME clients after the expiration of the SME Financing Facilitation Act.
Credit Monitoring Departments will be abolished and their remaining functions will be integrated into Credit Departments.
(4) Framework for assessing medium- to long-term corporate business strategies (SMBC)
“Corporate Business Strategy Planning Department” will be newly established within Planning Department, Corporate Banking Unit & Middle Market Banking Unit to assess our corporate business from a medium- to long-term perspective.
4. Strengthen other business planning functions and internal control functions
(1) Strengthen planning and management functions related to securities business (SMBC and SMFG)
Securities Business Planning Department, a sub-department of Planning Department, Investment Banking Unit (“PDIVB”), will become an independent department within Corporate Staff Unit and renamed “Securities Business Department,” and asset management related business, which is high compatible with securities business, of Strategic Products Department, the other sub-department of PDIVB, will be transferred to Securities Business Department in order to strengthen the planning and management functions related to securities business and intensify the bank-securities collaboration at both retail and wholesale levels. Strategic Products Department will be abolished and its remaining functions will be integrated into PDIVB.
Investment Banking Planning Department of SMFG will be renamed “Securities Business Department,” in order to plan and manage securities related business of SMBC and SMFG in an integrated manner.
(2) Strengthen credit screening capability (SMBC)
Structured Finance Credit Department, Investment Banking Unit will become a sub-department of Corporate Credit Department in order to further enhance the overall level of our credit screening capability by strengthening cooperation between relevant departments on screening individual companies and credit structures.
(3) Strengthen IT planning support (SMBC)
IT Business Strategy Planning Department, a sub-department of IT Planning Department, will be abolished and its functions will be transferred to IT Planning Department in order to further strengthen and more effectively support the IT planning of business units.