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'{{Short description|Japanese multinational banking and financial services company}} {{Use dmy dates|date=December 2023}} {{Hatnote|"Sumitomo Mitsui" redirects here. Not to be confused with [[Mitsui Sumitomo Insurance Group]].}} {{Hatnote|"Manufacturers Bank" redirects here. For other banks with similar names, see [[Manufacturers Bank (disambiguation)]].}} {{Infobox company | name = Sumitomo Mitsui Banking Corporation | native_name = 株式会社三井住友銀行 | native_name_lang = ja | romanized_name = [[Kabushiki gaisha]] Mitsui Sumitomo Ginkō | type = [[Public company|Public]] (''[[Kabushiki gaisha]]'') | logo = Smbc_logo.svg | logo_size = 150px | logo_caption = Logo since 2018 | image = Sumitomo Mitsui Banking Bldg2.jpg | image_size = 190px | image_caption = Headquarters in [[Chiyoda, Tokyo|Chiyoda-ku, Tokyo]] | industry = [[Financial services]] | ISIN = {{ISIN|sl=n|pl=y|JP3890350006}} | traded_as = {{plainlist| *{{Tyo|8316}} *{{NAG|8316}} *{{nyse|SMFG}} *[[Nikkei 225]] component (TYO) *[[TOPIX]] Core30 component (TYO)}} | genre = | fate = | former_name = | successor = | predecessor = {{Plainlist| *[[The Sumitomo Bank]] *[[The Sakura Bank]] }} | foundation = {{start date and age|2001|4|1}} | founder = | defunct = | location = | location_city = [[Chiyoda, Tokyo|Chiyoda-ku, Tokyo]] | locations = 463 branches <small>(as of 30 September 2019)</small><ref name="smbc">{{Cite web |title=Company Profile &#124; Sumitomo Mitsui Banking Corporation |url=https://www.smbc.co.jp/global/aboutus/profile/company.html |website=www.smbc.co.jp}}</ref> | area_served = [[World]]wide | key_people = Takeshi Kunibe<br /><small>(Chairman)<ref name="Directors">{{cite web |author= |url=https://www.smfg.co.jp/english/company/info/officer.html |title=Directors, Executive Officers, Group CxO and Head of Business Units |language=en |website= |publisher= |date= |access-date=8 January 2024}}</ref></small><br />{{ill|Akihiro Fukutome|jp|福留朗裕}}<br /><small>(President)<ref name="Directors"/></small> | products = {{ubl | [[Asset management]] | [[Banking]] | [[Commodities]] | [[Credit card]]s | [[Equities trading]] | [[Insurance]] | [[Investment management]] | [[Mortgage loan]]s | [[Mutual funds]] | [[Exchange-traded fund]]s | [[Index fund]]s | [[Private equity]] | [[Risk management]] | [[Wealth management]] }} | revenue = {{decrease}} {{USD|47.98 billion}} {{small|(2019)}}<ref name="auto3">{{Cite web |url=https://www.smfg.co.jp/english/investor/financial/latest_statement/fy2019/fy2019_fy_e01.pdf |title=Consolidated financial results for the fiscal year ended March 31, 2020 |publisher=Sumitomo Mitsui Financial Group, Inc. |date=15 May 2020}}</ref><ref name="auto6">{{Cite web |title=Sumitomo Mitsui Financial Group, Inc. |url=https://asia.nikkei.com/Companies/Sumitomo-Mitsui-Financial-Group-Inc |website=Nikkei Asian Review}}</ref> | operating_income = {{decrease}} {{USD|8.97 billion}} {{small|(2019)}}<ref name="auto3" /><ref name="auto6" /> | net_income = {{decrease}} {{USD|6.47 billion}} {{small|(2019)}}<ref name="auto3" /><ref name="auto6" /> | aum = | assets = {{increase}} {{USD|2.036 trillion}} {{small|(2019)}}<ref name="auto3" /><ref name="auto6" /> | equity = {{increase}} {{USD|99.32 billion}} {{small|(2019)}}<ref name="auto3" /><ref name="auto6" /> | owner = | num_employees = 103,000 <small>({{as of|2020|3|30|lc=y|df=US}})</small><ref>{{Cite web |title=Latest company presentation, ''refer to page 36'' |url=https://www.smfg.co.jp/english/investor/financial/latest_statement/fy2019/fy2019_fy_e_pre.pdf |website=www.smbcgroup.com}}</ref> | divisions = | footnotes = | location_country = [[Japan]] | homepage = {{official URL}} }} {{nihongo|'''Sumitomo Mitsui Banking Corporation'''|株式会社三井住友銀行|Kabushiki-gaisha Mitsui Sumitomo Ginkō|'''SMBC'''}} is a Japanese multinational banking financial services institution owned by {{Nihongo|'''Sumitomo Mitsui Financial Group, Inc'''|株式会社三井住友フィナンシャルグループ|4='''SMFG'''}}. It is headquartered in [[Yurakucho]], [[Chiyoda, Tokyo]], [[Japan]]. The group operates in retail, corporate, and investment banking segment worldwide. It provides financial products and services to a wide range of clients, including individuals, small and medium-sized enterprises, large corporations, financial institutions and public sector entities. Since 2011, it has been included into the [[Financial Stability Board]]'s [[List of systemically important banks|list of global systemically important banks]]. SMBC was established in 2001 through the merger of [[The Sakura Bank]], which originated from the [[Mitsui]] [[zaibatsu]] and was founded as [[Mitsui Bank]] in 1876, and [[The Sumitomo Bank]], which originated from the [[Sumitomo Group|Sumitomo]] zaibatsu and was founded in 1895. It is the second-largest bank in Japan in terms of total assets and market capitalization.<ref>{{Cite web |date=30 September 2011 |title=JRI America to set up centre in Tralee, creating 100 jobs – Careers &#124; siliconrepublic.com – Ireland's Technology News Service |url=https://www.siliconrepublic.com/careers/jri-america-to-set-up-centre-in-tralee-creating-100-jobs |website=Silicon Republic}}</ref> Along with [[Mitsubishi UFJ Financial Group]] and [[Mizuho Financial Group]], SMFG is referred to as one of Japan's three major megabanks.<ref>{{Cite web |date=3 July 2019 |title=Mega-Banks occupy Japanese bank market! |url=https://piece-of-japan.com/investing/bank/market-share.html}}</ref> SMBC group operates in over 40 countries and maintains a presence in all [[Financial centre#Definitions|International Financial Centres]] as the [[List of largest banks|12th biggest bank]] in the world by total assets. It is one of the largest global financial institutions in [[project finance]] space by total loan value.<ref>http://www.pfie.com/Journals/2019/04/11/l/i/l/PFI-Financial-Q1-2019-LT.pdf {{dead link|date=September 2021}}</ref><ref>{{Cite web |url=https://ijglobal.com/uploads/Q3%202019%20IJGlobal%20League%20Tables.pdf |title=IJGlobal Infrastructure Finance league table report |date=2019 |website=ijglobal.com}}</ref> As of May 2020, SMBC group is listed as 80th largest public company in the world according to [[Forbes]] ranking.<ref>{{Cite news |date=May 2020 |title=SMBC Group in Forbes 2000 |work=Forbes |url=https://www.forbes.com/global2000/#56e1e046335d |access-date=6 June 2020}}</ref> In 2023, the company’s seat in [[Forbes Global 2000]] was 86.<ref>{{Cite web|lang=en|url=https://www.forbes.com/lists/global2000/?sh=51d599675ac0|title=The Global 2000 2023|website=Forbes|access-date=2024-02-07|archive-date=2024-01-29|archive-url=https://web.archive.org/web/20240129031905/https://www.forbes.com/lists/global2000/?sh=4f5ab07e5ac0}}</ref> ==History== ===Sakura Bank=== {{main|Sakura Bank}} [[Image:The Sakura Bank Logo.svg|thumb|Sakura Bank logo]] {{nihongo|'''The Sakura Bank, Limited'''|さくら銀行|Sakura Ginkō}} was a Japanese bank based in Tokyo and Kobe. It was formed in April 1990 as the '''Mitsui Taiyo Kobe Bank (MTKB)''' by the merger of [[Mitsui Bank]] (founded 1876) and [[Taiyo Kobe Bank]] (founded 1973). Sakura bank root can be traced back to July 1876 when its predecessor, Mitsui Bank, was established with capital of two million yen. It was one of the Japanese government's main banks for deposits and tax collections until the formation of the [[Bank of Japan]] in 1882. In ensuing decades, the [[Mitsui]] family took over numerous government industrial plants to form a major ''[[zaibatsu]]'' conglomerate, with the bank as one of its core businesses.<ref>{{Cite book |last=Yamamura |first=Kozo |url=https://books.google.com/books?id=wWMOIsQuIhkC&q=mitsui%20bank%20history&pg=PA325 |title=The Economic Emergence of Modern Japan, Volume 1 |date=1997 |publisher=Cambridge University Press |isbn=9780521589468 |page=325}}</ref> Mitsui Bank reorganized as an unlimited partnership in 1893, and as a limited company (capital stock: ¥20 million) in 1909.<ref name="smbchist">{{Cite web |title=History |url=http://www.smbc.co.jp/aboutus/english/profile/history.html |access-date=7 April 2015 |publisher=Sumitomo Mitsui Banking Corporation}}</ref> World War II led Mitsui Bank to distance itself from the Mitsui ''zaibatsu'' beginning around 1937, as the bank's large balance of loans to munitions manufacturers made it vulnerable to failure should a recession occur after the war. The solution found by Mitsui's chairman was to merge the bank with the [[Dai-Ichi Bank]], creating a much larger institution outside the Mitsui family's control.<ref name="teikoku">{{Cite book |last=Kasuya |first=Makoto |url=https://books.google.com/books?id=lzRgDcp9t4IC&q=teikoku%20bank&pg=PA106 |title=Coping with Crisis: International Financial Institutions in the Interwar Period |date=2003 |publisher=Oxford University Press |isbn=9780199259311 |pages=106–108}}</ref> In April 1943, Mitsui Bank merged with Dai-Ichi to form '''[[Teikoku Bank]]''' ("Imperial Bank").<ref name="smbchist" /> Teikoku almost immediately found itself short of funds, and for the remainder of the war, mainly provided short-term financing, with long-term financing for its munitions manufacturing customers mostly provided by the [[Industrial Bank of Japan]].<ref name="teikoku" /> Dai-Ichi and Mitsui had very different corporate cultures which led to friction between the two; the two banks never completely integrated, and in October 1948, Dai-Ichi Bank separated from Teikoku Bank.<ref>{{Cite book |last=Carpenter |first=Susan |url=https://books.google.com/books?id=m98aBgAAQBAJ&q=teikoku%20bank&pg=PA49 |title=Japan Inc. on the Brink: Institutional Corruption and Agency Failure |date=2014 |publisher=Palgrave Macmillan |isbn=9781137469441 |page=49}}</ref> [[File:Sumitomo_Mitsui_Banking_Corporation_Head_Office.jpg|thumb|Former Mitsui Bank headquarters (1960–1990) in Yurakucho, Tokyo]] Teikoku Bank listed its shares on the Tokyo and Osaka stock exchanges in May 1949 and changed its name back to '''Mitsui Bank''' in January 1954.<ref name="smbchist" /> Mitsui Bank merged with Toto Bank in April 1968.<ref name="smbchist" /> Around 1960, Mitsui Bank and its [[sogo shosha|general trading company]] partner [[Mitsui & Co.]] formed a horizontal ''[[keiretsu]]'' alliance between other companies descended from the Mitsui conglomerate, including [[Toyota]], [[Toshiba]], [[Toyo Menka Kaisha]], [[Ishikawajima-Harima Heavy Industries]], [[Showa Aircraft]] and [[Oji Paper]].<ref>{{Cite web |title=Mitsui & Co., Ltd. History |url=http://www.fundinguniverse.com/company-histories/mitsui-co-ltd-history/ |access-date=7 April 2015 |publisher=International Directory of Company Histories, Vol. 28. St. James Press, 1999}}</ref> Mitsui established The Mitsui Bank of California in Los Angeles in 1974, and acquired [[Manufacturers Bank]] in 1981, merging the two later that year to form Mitsui Manufacturers Bank (renamed Manufacturers Bank in 1992).<ref>{{Cite web |title=History |url=https://www.manufacturers-ca.com/frontend/about_details.aspx?title=HISTORY |url-status=dead |archive-url=https://web.archive.org/web/20150413002143/https://www.manufacturers-ca.com/frontend/about_details.aspx?title=HISTORY |archive-date=13 April 2015 |access-date=7 April 2015 |publisher=Manufacturers Bank}}</ref> Mitsui Bank agreed to merge with [[Taiyo Kobe Bank]] in 1989. The TKB-Mitsui merger, agreed in end of 1989 during the height of the [[Japanese asset price bubble]], was to create the second largest bank in the world behind [[Dai-Ichi Kangyo Bank]]. While TKB had a large base of individual and small business customers, Mitsui had a complementary base of larger institutional Clients. The Sakura Bank name was adopted 3 years later in April 1992. The merger was aimed at leveraging these synergies, as well as providing stronger competition against European banks, which were expected to consolidate following a deregulation in 1992.<ref>{{Cite news |date=30 August 1989 |title=2 Japanese Banks Merging In Preparation for New Era |work=[[The New York Times]] |url=https://www.nytimes.com/1989/08/30/business/2-japanese-banks-merging-in-preparation-for-new-era.html |access-date=7 April 2015}}</ref> Sakura became a major corporate and retail bank in the [[Greater Tokyo Area]] during the 1990s and was the largest retail bank in Japan by several measures, including housing loan and investment trust sales.<ref name="merger">{{Cite web |title=Strategic Intent and Sumitomo Mitsui Banking Corporation |url=http://www.smfg.co.jp/english/investor/library/annual/pdf/05_15_19_strategic.pdf |access-date=7 April 2015 |publisher=Sumitomo Mitsui Banking Corporation}}</ref> However, Sakura incurred massive bad loan write-offs in 1998 and approached one of its major corporate customers, [[Toyota]], for financial support, which was rejected.<ref>{{Cite news |date=19 December 1998 |title=Toyota Rules Out Bailout Of Troubled Affiliate Bank |work=[[The New York Times]] |url=https://www.nytimes.com/1998/12/19/business/international-business-toyota-rules-out-bailout-of-troubled-affiliate-bank.html |access-date=7 April 2015}}</ref> Sakura led the consortium that established [[Japan Net Bank]], an online bank, in 2000, and began talks with [[Sony]] to establish a second online banking operation in Japan.<ref>{{Cite news |date=10 January 2001 |title=Sakura Bank Opens An Internet-only Bank in Japan and Plans To Back Another |work=InformationWeek |url=http://www.banktech.com/channels/sakura-bank-opens-an-internet-only-bank-in-japan-and-plans-to-back-another-/d/d-id/1288267? |access-date=7 April 2015 |archive-date=9 June 2017 |archive-url=https://web.archive.org/web/20170609144419/http://www.banktech.com/channels/sakura-bank-opens-an-internet-only-bank-in-japan-and-plans-to-back-another-/d/d-id/1288267 |url-status=dead }}</ref> In February 2024, Sumitomo Mitsui Banking appointed Carsten Stoehr, who had previously served 25 years at [[Credit Suisse]], as managing director and deputy head of [[Asia Pacific]]. Stoehr’s mission is to manage structured lending and private wealth business in the region.<ref>{{Cite web|lang=en|url=https://www.morningstar.com/news/dow-jones/2024020511923/sumitomo-mitsui-banking-taps-former-credit-suisse-banker-for-asia-pacific-role|title=Sumitomo Mitsui Banking Taps Former Credit Suisse Banker for Asia Pacific Role|website=Morning Star|access-date=2024-02-27|archive-date=2024-02-28|archive-url=https://web.archive.org/web/20240228043012/https://www.morningstar.com/news/dow-jones/2024020511923/sumitomo-mitsui-banking-taps-former-credit-suisse-banker-for-asia-pacific-role}}</ref> ===The Sumitomo Bank=== {{main|The Sumitomo Bank}} [[File:SMBC_Osaka_head_office.jpg|thumb|Former Sumitomo Bank headquarters in [[Nakanoshima]], Osaka, now an SMBC office]] [[File:SMBC_Tokyo_Sales_Department.jpg|thumb|Former Tokyo branch of Sumitomo Bank, now an SMBC office]] '''Sumitomo Bank''' was established as a private enterprise in November 1895 and reorganized as a limited company with 15 million yen of capital in March 1912.<ref name="smbchist" /> It opened numerous overseas branches during the World War I era as the Sumitomo ''[[zaibatsu]]'' business globalized.<ref name="rfb">{{Cite web |title=Sumitomo Group &#124; Japanese business consortium |url=https://www.britannica.com/topic/Sumitomo-Group |website=Encyclopedia Britannica|date=24 November 2023 }}</ref> After World War II, the [[Sumitomo Group]] was dismantled and its constituent companies were forbidden from using the Sumitomo name. The bank renamed itself '''Osaka Bank''' in October 1948.<ref name="rfb" /> In December 1952, its name was changed back to '''Sumitomo Bank'''.<ref name="smbchist" /> Sumitomo was the main bank for several major Japanese manufacturers during the early postwar era, including [[NEC]] and [[Panasonic]] (Matsushita).<ref name="rfb" /> In the 1970s, it lost nearly US$1&nbsp;billion in the restructuring of Osaka-based general trading company [[Ataka & Co.]], which, combined with the contemporaneous bailout of [[Mazda]], had a major impact on Sumitomo's finances, driving it down from the most profitable bank in Japan to being only ninth-ranked.<ref>{{Cite news |last=Oka |first=Takashi |date=24 December 1982 |title=A positive management style takes root in Japan |work=Christian Science Monitor |url=http://www.csmonitor.com/1982/1224/122438.html |access-date=7 April 2015}}</ref> However, the Ataka and Mazda bailouts enhanced Sumitomo's industry reputation by showing its dedication to customers. It became the largest Japanese bank by deposits until the merger of Dai-Ichi Bank and Nippon Kangyo Bank to form [[Dai-Ichi Kangyo Bank]].<ref name="rfb" /> In 1986, Sumitomo merged with Heiwa Sogo Bank to expand its presence in the Tokyo area. In the same year, it acquired 12.5% of [[Goldman Sachs]].<ref name="rfb" /> Sumitomo incurred major losses during the collapse of the [[Japanese asset price bubble]] in the 1990s. In 1993 it wrote off 100&nbsp;billion yen in bad loans, and in 1994 its Nagoya branch manager was murdered in possible connection with a bad debt collection. In 1995, it posted the first net loss of a major Japanese bank in the postwar era.<ref name="rfb" /> It sold Sumitomo Bank of California, the sixth-largest bank in California, at a steep discount to [[Zions Bancorporation]] in 1998 (SBC is now part of [[California Bank and Trust]]).<ref>{{Cite news |last=Vrana |first=Debora |date=26 March 1998 |title=Sumitomo to Sell California Subsidiary to Utah Company |url=http://articles.latimes.com/1998/mar/26/business/fi-32782 |access-date=7 April 2015}}</ref> In 1999, amid intensifying competition as other Japanese and foreign banks consolidated, Sumitomo announced its merger with [[Sakura Bank]] to form Sumitomo Mitsui Banking Corporation.<ref name="rfb" /> The merger was approved in June 2000 and combined Sakura's strong retail operation and eastern Japan presence with Sumitomo's strong wholesale operation and western Japan presence.<ref name="merger" /> ===Sumitomo Mitsui Banking Corporation=== '''Sumitomo Mitsui Banking Corporation''' ('''SMBC''') was formed by the merger of [[The Sumitomo Bank]] and [[Sakura Bank]] in April 2001. Sumitomo Bank was a major Japanese bank founded in 1895; while Sakura Bank was a descendant of [[Mitsui Bank]], another major Japanese bank founded in 1876, but with operations dating back to 1683, when the [[Tokugawa Shogunate]] granted [[Mitsui Takatoshi]] permission to act as a money changer. The merger created one of the world's largest banking group, with similar size to [[Deutsche Bank]] and the pending merger that would form [[Mizuho Bank]].<ref>{{Cite news |date=15 October 1999 |title=Japan Banks to Merge, With Wider Effects |work=[[The New York Times]] |url=https://www.nytimes.com/1999/10/15/business/international-business-japan-banks-to-merge-with-wider-effects.html |access-date=7 April 2015}}</ref> However, the newly created bank was still plagued with bad assets at that time post the [[Japanese asset price bubble|asset price bubble burst]] (the Japanese banking industry as a whole suffered from significant non-performing loans during the 1990s and early 2000s). This led to several corporate actions taken by SMBC to clean its balance sheet and raise capital such as writing off its non-performing loans and selling its entire stake in [[Goldman Sachs]].<ref>{{Cite news |date=2 January 2002 |title=Sumitomo Mitsui to Sell Its Entire Stake In Goldman Sachs for $794 Million |newspaper=Wall Street Journal |url=https://www.wsj.com/articles/SB1010505975890570600 |via=www.wsj.com|last1=Newswires |first1=Dow Jones }}</ref><ref>{{Cite web |last=Nakata |first=Hiroko |date=26 November 2004 |title=As bad-loan worries finally recede, banks turn attention to weak profits |url=https://www.japantimes.co.jp/news/2004/11/26/business/as-bad-loan-worries-finally-recede-banks-turn-attention-to-weak-profits/ |website=The Japan Times}}</ref> [[File:New Centennial Tower.jpg|thumb|150px|SMBC Asia hub is located in [[Centennial Tower (Singapore)|Centennial Tower]] in [[Singapore]].]] In 2003, SMBC conducted [[reverse merger]] with its subsidiary, Wakashio Bank, to secure financial resources to cover large deferred losses from its equity holdings. Although SMBC was technically dissolved and Wakashio Bank became a company that survived, under the Japanese Commercial Code, the surviving entity took the name Sumitomo Mitsui Banking Corp., just like the disbanded bank name. SMBC President Yoshifumi Nishikawa and chairman Akishige Okada became president and Chairman of the new entity respectively. Hiroyasu Ichikawa, President of Wakashio Bank, assumed the position of senior managing director.<ref>{{Cite web |date=18 March 2003 |title=SMBC disbands and merges with subsidiary |url=https://www.japantimes.co.jp/news/2003/03/18/business/smbc-disbands-and-merges-with-subsidiary/ |website=The Japan Times}}</ref> The idea of the reverse merger is to create smaller entity with excess profit. The profit, then, was used to accelerate write-offs of the bank's unrealized securities losses and boost sales of its shareholdings to reduce risk from the fluctuation of stock prices.<ref>{{Cite news |last=Newswires |first=Dow Jones |date=25 December 2002 |title=Sumitomo Mitsui's Core Bank To Merge With Regional Unit |newspaper=Wall Street Journal |url=https://www.wsj.com/articles/SB1040804424772786633 |via=www.wsj.com}}</ref> Post the merger, the new entity grew rapidly through organic and inorganic growth strategy. The assets expanded from 102.4&nbsp;trillion yen in 2003 to more than 200&nbsp;trillion yen by the end of 2019, making it the [[List of largest banks|12th largest bank in the world]].<ref>http://www.smbc.co.jp › pdfPDF Sumitomo Mitsui Banking Corporation</ref> At present, the bank serves as the core retail, corporate, and investment banking arm of ''both'' the namesake [[Sumitomo]] and [[Mitsui]] groups. Its traditional client base is made up of Japanese corporates, but overseas corporate lending increased following overseas expansion. SMBC's overseas network consists of 130 branches and offices in 40 countries and regions as of 2018. SMBC provides financial products and services to a wide range of clients, including individuals, small and medium-sized enterprises, large corporations, financial institutions and public sector entities. Since 2008, the [[Singapore]] branch has become SMBC's regional hub in Asia Pacific while global headquarters is still maintained in [[Tokyo]], [[Japan]].<ref name="auto1">{{Cite web |url=https://www.smfg.co.jp/english/investor/library/annual/h3003annu_pdf/h3003_e_00.pdf |title=SMBC Group Annual Report 2018 |access-date=14 February 2020 |publisher=Sumitomo Mitsui Financial Group |website=www.smfg.co.jp}}</ref><ref>{{Cite news |date=31 March 2017 |title=New chief of Japan's SMBC bank 'actively studying' acquisition of US bank |newspaper=Reuters |url=https://www.reuters.com/article/us-smfg-strategy-idUSKBN17223R |via=www.reuters.com|last1=Fuse |first1=Taiga Uranaka }}</ref><ref>{{Cite web |title=SMBC cites overseas growth spur, Japanese cover quality &#124; The Covered Bond Report |url=http://news.coveredbondreport.com/2018/10/smbc-cites-overseas-growth-spur-japanese-cover-quality/}}</ref> SMBC's shares has become listed on the first section of the [[Tokyo Stock Exchange]], the [[Osaka Securities Exchange]] and the [[Nagoya Stock Exchange]] since December 2002. It has secondary listing in [[New York Stock Exchange]]. The stock tickers are {{Tyo|8316}} and {{nyse|SMFG}}.<ref>{{Cite web |title=SMBC Group listing detail |url=https://www.smfg.co.jp/english/investor/stock/overview.html}}</ref> The bank steadily increased its tier 1 capital ratios from 12.19% in 2014 to 16.69% as reported in March 2018. [[Standard & Poor's]], [[Moody's]] and [[Fitch Ratings]] assigned SMBC's an A1, A and A rating respectively (as at March 2018).<ref name="auto1" /> In April 2023, SMBC announced a plan to triple its stake in US investment bank [[Jefferies Financial Group]] bringing total ownership to as much as 15%. It was part of a broader collaboration between the two companies that would allow SMBC to take on larger rivals while advising and lending to investment-grade companies globally, in addition to working in leveraged finance and mergers and acquisitions.<ref>{{Cite news |date=27 April 2023 |title=Japan's SMBC plans to triple stake in Jefferies in Wall Street push |work=Financial Times |url=https://www.ft.com/content/49654c8b-6182-47e0-963d-18671113b0ff |access-date=1 May 2023}}</ref> ==Sumitomo Mitsui Financial Group== {{Infobox company | name = Sumitomo Mitsui Financial Group, Inc.<br /><small>株式会社三井住友フィナンシャルグループ </small> | logo = SMFG logo.svg | logo_size = 250px | type = [[Public Company|Public]] ([[Kabushiki gaisha|K.K]]) | traded_as = {{Tyo|8316}}<br/>{{nyse|SMFG}}<br/>[[TOPIX|TOPIX Core 30 Component]] | genre = | fate = | predecessor = | successor = | founder = | defunct = | location_city = [[Kanda, Tokyo|Kanda]], [[Chiyoda-ku|Chiyoda]], [[Tokyo]] | location_country = [[Japan]] | location = | locations = | area_served = Worldwide | key_people = Koichi Miyata<br/>{{small|(Chairman)}}<br/>Takeshi Kunibe<br/>{{small|(President)}} | industry = [[Banking]], [[Financial services]] | products = | production = | services = [[Retail banking|Personal Banking]]<br />[[Commercial banking|Corporate Banking]]<br />[[Investment Banking]]<br />[[Investment Management]]<br />[[Private banking|Wealth Management]]<br />[[Mortgages]]<br />[[Credit Cards]] | revenue = {{gain}} {{yen|3.812&nbsp;trillion|link=yes}} (2017)<ref name="Financial result">{{cite web| url=http://www.smfg.co.jp/english/investor/library/annual/h3003/h3003form20k_e_00.pdf| title=FY 2017 Annual Report| publisher=Sumitomo Mitsui Financial Group| accessdate=21 August 2018}}</ref> | net_income = {{gain}} {{yen|889.598 billion}} (2017)<ref name="Financial result" /> | aum = | assets = {{gain}} {{yen|192.175 trillion}} (2017)<ref name="Financial result" /> | equity = {{gain}} {{yen|12.495 billion}} (2017)<ref name="Financial result" /> | owner = | num_employees = 73,000 (2017)<ref name="Financial result" /> | parent = [[Sumitomo]]<br/>[[Mitsui]] | divisions = | subsid = [[Sumitomo Mitsui Banking Corporation]]<br /> [[:ja:SMFGカード&クレジット|SMFG Card & Credit Co., Ltd.]]<br /> [[:ja:三井住友ファイナンス&リース|Sumitomo Mitsui Finance and Leasing Company, Limited]]<br /> [[:ja:日本総合研究所 (株式会社)|The Japan Research Institute, Limited]]<br /> [[:ja:SMBCフレンド証券|SMBC Friend Securities Co., Ltd.]] | homepage = {{URL|www.smfg.co.jp}} {{URL|www.smfg.co.jp/english|(en)}} | footnotes = | founded = {{Start_date|2002|12|02}} | ISIN = JP3890350006 }} {{Nihongo|'''Sumitomo Mitsui Financial Group, Inc.'''|'''SMFG'''; 株式会社三井住友フィナンシャルグループ|Kabushiki kaisha Mitsui Sumitomo Finansharu Gurūpu}} was established in December 2002 through a share transfer from Sumitomo Mitsui Banking Corporation. It acts as [[bank holding company|bank holding]] and [[financial services]] company of Sumitomo Mitsui Banking Corporation. [[Image:HK ifc Phase1.jpg|thumb|180px|SMBC Hong Kong office is located in [[International Finance Centre (Hong Kong)|One IFC]].]] In February 2003, [[Sumitomo Mitsui Card Company, Limited]], [[SMBC Leasing Company, Limited]], and [[The Japan Research Institute]] became wholly owned subsidiaries of SMFG. SMFG reached an agreement in June 2004 to form a strategic alliance with [[Promise Co.]], Ltd. on consumer finance business. The two firms started collaborative business in April 2005. The same month, SMFG reached an agreement to form a strategic alliance with [[NTT DoCoMo]] on credit card business. A portion of the shares of [[Sumitomo Mitsui Card]] held by SMFG were transferred to [[NTT DoCoMo]], and [[Sumitomo Mitsui Card]] issued new shares and allocated them to [[NTT DoCoMo]] by means of third party allocation in July 2005. Collaborative business began in December 2005. In September 2006, [[SMBC Friend Securities]] became a wholly owned subsidiary of SMFG and the following month, SMFG reached an agreement to pursue strategic joint business with the Sumitomo Corporation group in the leasing and auto leasing businesses. SMFG acquired [[Nikko Cordial]], a [[brokerage]], from [[Citigroup]] in May 2009. In April 2016, Sumitomo Mitsui Finance and Leasing completed the acquisition of General Electric Group's Japan-based leasing business.<ref>{{Cite web |last=Fukase |first=Atsuko |date=15 December 2015 |title=Sumitomo Mitsui unit to buy GE's Japan Leasing Business |url=https://www.wsj.com/articles/sumitomo-mitsui-unit-to-buy-ges-japan-leasing-business-for-4-8-billion-1450168564 |access-date=6 March 2018 |newspaper=[[The Wall Street Journal]]}}</ref><ref>{{Cite press release |title=Sumitomo Mitsui Finance and Leasing completed the acquisition of General Electric Group's leasing business in Japan |publisher=Sumitomo Mitsui Finance and Leasing Company |url=http://www.smfg.co.jp/news_e/e110041_02.html |access-date=6 March 2018}}</ref> ==Relevant timeline== * '''April 2001''': Sakura Bank and Sumitomo Bank merged to form Sumitomo Mitsui Banking Corporation. (Capital stock: ¥1,276,7 billion) * '''December 2002''': Sumitomo Mitsui Banking Corporation (SMBC) established a holding company named [[Sumitomo Mitsui Financial Group, Inc.]] (SMFG) through a share transfer, SMBC becomes a wholly owned subsidiary of SMFG. * '''March 2003''': Wakashio Bank (established June 1996) conducted reverse merger with SMBC. * '''August 2004''': SMBC Group launched competing bid to acquire ailing Japanese bank [[UFJ]], challenging a takeover of UFJ by the Mitsubishi Tokyo Financial Group (see [[Mitsubishi UFJ Financial Group]]). While it eventually lost that bid, SMBC is credited with increasing competition within Japan's once staid banking industry.<ref>{{Cite web |last=Fackler |first=Martin |date=2 August 2004 |title=Banking Duel in Japan Signals End of Old Ways |url=https://www.wsj.com/articles/SB109138643686379745 |access-date=27 July 2019 |website=[[The Wall Street Journal]]}}</ref> * '''July 2008''': SMBC Group bought a 2.1 percent stake in [[Barclays Bank]] for £500m.<ref>{{Cite web |date=19 July 2008 |title=Sumitomo buys into U.K.'s Barclays |url=https://www.japantimes.co.jp/news/2008/07/19/business/sumitomo-buys-into-u-k-s-barclays/ |website=The Japan Times}}</ref> * '''March 2015''': SMBC Group bought HK$6.58&nbsp;billion (JP¥105&nbsp;billion, US$849&nbsp;million) of new [[Bank of East Asia]] shares, raising SMBC's stake in the Hong Kong lender to 17.5% from 9.7%. * '''January 2019''': Sumitomo Mitsui Banking Corporation Indonesia merged with PT Bank Tabungan Pensiunan Nasional Tbk, also known as Bank BTPN. The group owned 96.89% ownership of the bank since the merger was completed on 1 February 2019, with Bank BTPN as the surviving brand. Indonesian authorities approved the merger in December 2018, while Japanese authorities approved the merger a month later.<ref>{{Cite web |title=Info |url=https://www.btpn.com/pdf/keterbukaan-informasi/s.039_dir_ojk-bei_laporan-perubahan-kepemilikan-smbc.pdf |access-date=14 February 2020 |publisher=www.btpn.com}}</ref><ref>{{Cite web |last=Franedya |first=Roy |title=Merger Rampung, Ini Susunan Komisaris & Direksi Bank BTPN |url=https://www.cnbcindonesia.com/market/20190201121643-17-53469/merger-rampung-ini-susunan-komisaris-direksi-bank-btpn |website=market}}</ref><ref>{{Cite web |last=Franedya |first=Roy |title=Sah! BTPN Merger dengan SMBCI, Apa Nama Barunya? |url=https://www.cnbcindonesia.com/market/20190201092425-17-53420/sah-btpn-merger-dengan-smbci-apa-nama-barunya |website=market}}</ref><ref>{{Cite web |last=Banjarnahor |first=Donald |title=Dapat Restu OJK Jepang & RI, BTPN Merger Bulan Ini? |url=https://www.cnbcindonesia.com/market/20190124132752-17-52181/dapat-restu-ojk-jepang-ri-btpn-merger-bulan-ini |website=market}}</ref><ref>{{Cite web |last=Ananta |first=Yanurisa |title=Merger BTPN-Sumitomo Tinggal Tunggu Persetujuan OJK Jepang |url=https://www.cnbcindonesia.com/market/20181219214303-17-47192/merger-btpn-sumitomo-tinggal-tunggu-persetujuan-ojk-jepang |website=market}}</ref> * '''March 2020''': SMBC Group agreed to buy a 4.9 percent stake in [[Ares Management]]. As part of this agreement, the group will make a US$384&nbsp;million equity investment into the firm.<ref>{{Cite web |title=Japan's SMBC to acquire 4.9% stake in Ares Management for $384m |url=https://www.dealstreetasia.com/stories/smbc-ares-management-182553/}}</ref><ref>{{Cite web |title=Japanese bank SMBC agrees cash infusion for Ares |first=Mark |last=Vandevelde |date=30 March 2020 |url=https://www.ft.com/content/bf70ddd8-e04c-4796-b17b-6d5692e2da75 |newspaper=[[Financial Times]]}}</ref><ref>{{Cite web |date=30 March 2020 |title=Ares Management Corporation and Sumitomo Mitsui Banking Corporation Announce Strategic Agreement and Equity Transaction |url=https://www.businesswire.com/news/home/20200330005176/en/Ares-Management-Corporation-Sumitomo-Mitsui-Banking-Corporation |website=www.businesswire.com}}</ref><ref>{{Cite web |last=Kim |first=Adalla |date=2 April 2020 |title=Ares sells stake to Japan's SMBC |url=https://www.privatedebtinvestor.com/ares-sells-stake-to-japans-smbc/}}</ref><ref>{{Cite web |last=Visconti |first=Ambrogio |title=Ares Management Corporation's Agreement With SMBC Group – Global Legal Chronicle |date=April 2020 |url=https://www.globallegalchronicle.com/ares-management-corporations-agreement-with-smbc-group/}}</ref> <gallery widths="220px" heights="176px"> File:Mitsui Main Building 2009.jpg|SMBC [[Nihonbashi]] Branch File:Mitsui sumitomo bank east tower.jpg|SMBC East Tower, [[Tokyo]], [[Japan]] File:Sumitomo_Mitsui_Banking_Corporation.jpg|SMBC [[Ashiya Station (JR West)|Ashiya Station]] branch File:Mitsui Sumitomo Kyoto 三井住友銀行 京都支店.jpg|SMBC [[Kyoto]] Branch </gallery> ==Corporate structure== ===Business division=== [[Image:三井住友銀行 看板.jpg|right|150px|thumb|SMBC signage board]] {{Expand section|date=February 2020}} [[Sumitomo Mitsui Financial Group]] acts as the holding company for the [[SMBC group]]. The core subsidiary of the group is the banking unit, Sumitomo Mitsui Banking Corporation (SMBC). The group's banking unit is organised in the following structure:<ref>{{Cite web |title=Organization &#124; Sumitomo Mitsui Banking Corporation |url=https://www.smbc.co.jp/global/aboutus/profile/orgchart.html |website=www.smbc.co.jp}}</ref> *Consumer Banking Unit *Middle Market Unit *Corporate Banking Unit *Investment Banking Unit *International Banking Unit *Treasury Unit *Compliance Unit *Corporate Staff Unit Throughout the years, the group has expanded into other related businesses such as leasing, brokerage and asset management. As of 2020, the major subsidiaries beside the banking unit include SMBC Nikko Securities, SMBC Trust Bank, Sumitomo Mitsui DS Asset Management, Sumitomo Mitsui Finance and Leasing and Japan Research Institute (JRI).<ref name="auto5">{{Cite web |title=Group Companies &#124; Sumitomo Mitsui Financial Group |url=https://www.smfg.co.jp/english/company/group/ |website=www.smfg.co.jp}}</ref><ref name="auto7">{{Cite web |url=https://www.smfg.co.jp/english/company/info/officer.html |website=www.smfg.co.jp|title=Directors, Executive Officers, Group CxO and Head of Business Units &#124; Sumitomo Mitsui Financial Group}}</ref> ==Brand== ===Group name=== The group was identified by its holding entity name, Sumitomo Mitsui Financial Group (SMFG), until early of 2018. By March 2018, the group established "SMBC Group" as its master brand name. Since then, the corporate group has been referred to as SMBC Group instead of SMFG. The press release by the company stated the move is to associate the brand with the group's core banking business, Sumitomo Mitsui Banking Corporation.<ref>{{Cite web |title=SMFG Press Release on the use of SMBC Group as master brand |url=https://www.smfg.co.jp/news_e/pdf/e20180323_01.pdf}}</ref><ref>{{Cite web |title=Sumitomo Mitsui Financial changes group brand to SMBC |url=https://www.spglobal.com/marketintelligence/en/news-insights/trending/CoA9tAkrHEAa49GO0rt2Og2 |website=www.spglobal.com}}</ref> ===Corporate logo=== SMBC Group's corporate logo uses "Rising Mark" sign. The background color is trad green, fresh green. The "SMBC" name is shown on the right side of the rising mark with white block letters. ===Mascot character=== In 2014, SMBC Group created an original mascot character called '''Midosuke''', which imitates an [[otter]].<ref>{{Cite web |title=ミドすけとミドすけファミリー ： 三井住友銀行 |url=https://www.smbc.co.jp/sns/character.html |website=www.smbc.co.jp}}</ref> The body of the character is green in color, the neck of it is covered by a scarf with the color similar to SMBC group's rising mark logo. The character was designed by [[Tsuneo Goda]] (Dwarf Co., Ltd.). Originally, it was used mainly for official LINE accounts but later it has been used as commercials character, face design of cash cards or debit cards, and merchandise for bank customers.<ref>{{Cite web |date=1 March 2016 |title=TVCM｢ミドすけ｣の声は誰？三井住友銀行のキャラクターグッズが可愛い！ |url=https://cmtv-news.com/midosuke |website=CMTV News}}</ref> ==Global operations== SMBC Group has offices in:<ref>{{Cite web |title=Asia, Oceania &#124; Sumitomo Mitsui Banking Corporation |url=https://www.smbc.co.jp/global/location_oversea/asia_oceania.html |website=www.smbc.co.jp}}</ref> {{Div col|colwidth=22em}} *{{flag|Australia}} *{{flag|Bahrain}} *{{flag|Belgium}} *{{flag|Brazil}} *{{flag|Cambodia}} *{{flag|Canada}} *{{flag|Chile}} *{{flag|China}} *{{flag|Colombia}} *{{flag|Czechia}} *{{flag|Egypt}} *{{flag|France}} *{{flag|Germany}} *{{flag|Hong Kong}} *{{flag|India}} *{{flag|Indonesia}} *{{flag|Iran}} *{{flag|Ireland}} *{{flag|Italy}} *{{flag|Japan}} *{{flag|Malaysia}} *{{flag|Mexico}} *{{flag|Mongolia}} *{{flag|Myanmar}} *{{flag|Netherlands}} *{{flag|Peru}} *{{flag|Qatar}} *{{flag|Russia}} *{{flag|Saudi Arabia}} *{{flag|South Africa}} *{{flag|South Korea}} *{{flag|Singapore}} *{{flag|Spain}} *{{flag|Taiwan}} *{{flag|Thailand}} *{{flag|The Philippines}} *{{flag|Turkey}} *{{flag|UAE}} *{{flag|United Kingdom}} *{{flag|United States}} *{{flag|Vietnam}}{{Div col end}} ==Overseas subsidiaries and affiliates== The overseas subsidiaries and affiliates of SMBC Group are as follows:<ref>{{Cite web |title=Group Companies &#124; Sumitomo Mitsui Banking Corporation |url=https://www.smbc.co.jp/global/aboutus/profile/group/ |website=www.smbc.co.jp}}</ref> * European Sumitomo Mitsui Banking Corporation * SMBC Bank EU AG * Sumitomo Mitsui Banking (China) Co., Ltd. * Manufacturer's Bank * Brazil Sumitomo Mitsui Banking Corporation * PT Bank BTPN Tbk * Russia Sumitomo Mitsui Banking Corporation * Sumitomo Mitsui Banking Malaysia * SMBC Capital Markets Company * UK SMBC Nikko Capital Markets Company * SMBC Aviation Capital * SMBC Lease Finance Company * SMBC Rail Services LLC * SMBC Nikko Security America Corporation * SMBC Financial Services Company * SMC Cayman Elsie Limited * S.F.V.I Company * SMBC International Finance N.V. * SMC Leasing Investment LLC * SMC Capital Partners LLC * SMBC MV ISPC * SMBC DIP Limited * SMBC Derivative Products Limited * SMBC Capital India * Sumitomo Mitsui Finance Dublin * Sakura Finance Asia ==Acquisitions== ===SMBC Nikko Securities=== {{main|SMBC Nikko Securities}} The history of [[SMBC Nikko Securities]] can be traced back to Nikko Cordial Corporation, which was the [[holding company]] for '''Nikko Cordial Securities'''. The company was Japan's third largest brokerage until 2008, when Nikko Cordial Corporation became a wholly owned subsidiary of [[Citigroup]]; upon completion of share exchange, it merged with Citigroup Japan Holdings Ltd. to form Nikko Citi Holdings Inc., before changing its name to Citigroup Japan Holdings Corp. in 2009. In October 2009, all of the operations of Nikko Cordial Securities and certain businesses of [[Nikko Citigroup]], such as the domestic stock and bond underwriting business among others, were sold to Sumitomo Mitsui Banking Corporation, before being reorganized into a new subsidiary company, SMBC Nikko Securities Inc., in April 2011.<ref>{{Cite web |title=History &#124; SMBC Nikko Securities Inc. |url=https://www.smbcnikko.co.jp/en/profile/overview/history.html |website=www.smbcnikko.co.jp}}</ref><ref>{{Cite web |title=Citi to Sell Nikko Cordial Securities to Sumitomo Mitsui Banking Corporation and to Forge Alliance with Sumitomo Mitsui Financial Group |url=https://www.citigroup.com/citi/news/2009/090501a.htm |website=www.citigroup.com}}</ref> SMBC Nikko Securities becomes investment banking arm of SMBC group and offers equity and debt financing, trading, and merger and acquisition advisory services worldwide with the main base in [[Japan]]. ===SMBC Aviation Capital=== {{main|SMBC Aviation Capital}} '''SMBC Aviation Capital''', formerly '''RBS Aviation Capital''', is one of the world's largest [[aircraft leasing]] companies. Headquartered in the International Financial Services Centre in Dublin and with locations in [[Amsterdam]], [[Beijing]], [[Hong Kong]], [[Kyiv]], [[Moscow]], [[New York City|New York]], [[Seattle]], [[Miami]], [[Shanghai]], [[Singapore]], [[Tokyo]] and [[Toulouse]], the company employs 160 people. In 2012, the company was acquired by the Japanese consortium of Sumitomo Mitsui Banking Corporation (SMBC), Sumitomo Mitsui Finance and Leasing Company Limited (SMFL) and [[Sumitomo Corporation]] for US$7.3&nbsp;billion which was the largest ever global sale of an aircraft leasing business. The sale completed on 1 June 2012 and the business was renamed SMBC Aviation Capital.<ref>{{Cite news |title=RBS in €7.3bn sale of Dublin-based aircraft business |language=en-US |newspaper=The Irish Times |url=http://www.irishtimes.com/business/transport-and-tourism/rbs-in-7-3bn-sale-of-dublin-based-aircraft-business-1.1063410 |access-date=14 March 2017}}</ref> The company currently has a portfolio of 453 aircraft (273 owned and 180 managed) with a further 203 aircraft on order from [[Airbus]] and [[Boeing]], made up of a mix of [[Airbus A320neo family|A320neos]], A320-200s, B737-800s and [[Boeing 737 MAX|B737 MAXs]]. It has more than 150 airline customers in over 50 countries worldwide, including a range of traditional carriers alongside start-up airlines. Its strategy is to own and lease technologically advanced, efficient and frequently-used aircraft types. SMBC Aviation Capital maintains a young fleet with an average weighted age of 4.7 years. The company has a BBB+ rating from Fitch.<ref>{{Cite web |title=Fitch Upgrades SMBC Aviation Capital Limited's IDR to 'BBB+'; Outlook Stable |url=http://www.businesswire.com/news/home/20151209006438/en/Fitch-Upgrades-SMBC-Aviation-Capital-Limiteds-IDR |access-date=14 March 2017 |website=www.businesswire.com |date=9 December 2015 |language=en}}</ref> The company is now in its 15th year in business. In July 2016, the company completed a debut US$500&nbsp;million unsecured notes offering, which was eight times over-subscribed.<ref>{{Cite news |title=Profits at aircraft lessor SMBC Aviation Capital hit $530 million |language=en-US |newspaper=The Irish Times |url=http://www.irishtimes.com/business/transport-and-tourism/profits-at-aircraft-lessor-smbc-aviation-capital-hit-530-million-1.2728237 |access-date=14 March 2017}}</ref> ===Bank BTPN=== Bank BTPN focuses on serving the mass market segment consisting of pensioners, micro, small and medium enterprises (MSMEs), productive poor communities; consuming class segment; and the corporate segment in [[Indonesia]]. By 2019, Sumitomo Mitsui Banking Corporation (SMBC) officially owns 96.9% of PT Bank Tabungan Pensiunan Negara Tbk (BTPN) shares. This is an increase from the previous ownership which was only 39.92%. The gain in the portion of SMBC shares in BTPN is in line with the acquisition of additional shares of 3.33&nbsp;billion or around 56.98% conducted in January 2019. The shares transaction was carried out at IDR4,282 per share.<ref>{{Cite web |title=Bank Jepang Resmi Kuasai 96,9 Persen Saham BTPN |url=https://www.cnnindonesia.com/ekonomi/20190130173630-78-365145/bank-jepang-resmi-kuasai-969-persen-saham-btpn |website=ekonomi}}</ref><ref name="auto">{{Cite web |last=Lavinda |title=Merger BTPN dan Bank Sumitomo Hasilkan Aset Rp179 Triliun |url=https://www.cnnindonesia.com/ekonomi/20180802163902-78-319002/merger-btpn-dan-bank-sumitomo-hasilkan-aset-rp179-triliun |access-date=14 February 2020 |publisher=Cnnindonesia.com}}</ref><ref>{{Cite web |title=Sekilas BTPN : BTPN |url=https://www.btpn.com/id/tentang-kami/sekilas-btpn |website=www.btpn.com}}</ref> Post acquisition, the entity was merged with SMBC's subsidiary in [[Indonesia]]. In a summary of the proposed merger of BTPN and Bank Sumitomo Indonesia, the total assets and total equity of the merged bank reached a total IDR 178&nbsp;trillion and IDR 26.92&nbsp;trillion respectively, using financial position as of 31 May 2018. Upon the merger, BTPN became the 8th largest bank in Indonesia by total assets.<ref name="auto" /><ref>{{Cite web |last=Bosnia |first=Tito |title=Pasca-Merger, BTPN Jadi Bank Aset Terbesar Kedelapan di RI |url=https://www.cnbcindonesia.com/market/20181005180033-17-36263/pasca-merger-btpn-jadi-bank-aset-terbesar-kedelapan-di-ri |website=market}}</ref> ===Bank of East Asia=== {{main|Bank of East Asia}} SMBC has an ownership in Bank of East Asia (BEA). In 2015, the bank increased its investment in BEA by approximately HKD 6.6&nbsp;billion, bringing SMBC's shareholding in BEA to 17.50% from 9.68% previously.<ref>{{Cite web |title=News Release : Sumitomo Mitsui Banking Corporation |url=https://www.smbc.co.jp/news_e/html/e200292/e200292_01.html |website=www.smbc.co.jp}}</ref><ref>{{Cite web |date=2015 |title=News release |url=https://www.hkbea.com/pdf/en/about-bea/new-release/2015/20150318e.pdf |access-date=14 February 2020 |publisher=www.hkbea.com}}</ref> ==Digital banking== ===IC cash card=== An IC cash card is a single cash card that can be used with three method of identification: biometric authentication, IC chip or magnetic stripe, by setting the limit and registering biometric information (finger vein pattern). With this cash card, the security of usage improved since transactions relies on IC chip recording data and the pattern of past transactions that combined IC chip recording data and biometric authentication.<ref name="auto4">{{Cite web |title=キャッシュカード（ICキャッシュカード） 商品詳細 ： 三井住友銀行 |url=https://www.smbc.co.jp/kojin/sougou/cashcard/details/ |website=www.smbc.co.jp}}</ref> As of 2017, SMBC issued IC cash cards at the bank's counters (only applicable to ordinary design deposit cash cards; cards of other designs and non-savings accounts are not eligible for immediate issuance).<ref name="auto4" /> ===Blockchain=== Several [[Blockchain]]-related initiatives also has been implemented by SMBC. The bank is planning to implement the use of R3's Marco Polo trade finance blockchain, the international blockchain trade finance network, on a commercial basis by the end of 2020.<ref>{{Cite web |date=17 November 2017 |title=SMBC: A commitment to technology |url=https://www.businesstimes.com.sg/hub-projects/singapore-fintech-festival-2017/smbc-a-commitment-to-technology |website=The Business Times}}</ref><ref>{{Cite web |date=18 October 2019 |title=SMBC announces completion of PoC utilizing blockchain-based platform Marco Polo |url=https://financefeeds.com/smbc-announces-completion-poc-utilizing-blockchain-based-platform-marco-polo/}}</ref> ===Artificial Intelligence=== SMBC has been an early adopter of [[AI]] in its banking operation. It is the first Japanese bank to use [[IBM Watson]] since 2014 to support operators at its call center.<ref>{{Cite news |date=27 September 2019 |title=SMBC picks DefinedCrowd for AI training data |url=https://www.finextra.com/newsarticle/34470/smbc-picks-definedcrowd-for-ai-training-data |website=Finextra Research|author1=Finextra }}</ref> AmiVoice, a voice recognition solution provided by SMBC, transforms inquiries into text on a real-time basis as a speech recognition system, while IBM Watson gives customers responses taken from service manuals and Q&As, thereby allowing digital operators to provide timely and correct answers to callers.<ref>{{Cite web |title=三井住友カード、コールセンター向け音声認識ソリューション「AmiVoice Communication Suite2」を導入｜ニュースリリース一覧｜会社案内｜クレジットカードの三井住友カード株式会社 |url=https://www.smbc-card.com/company/news/news0001280.jsp |website=クレジットカードの三井住友VISAカード}}</ref> ==Environmental policy and record== In 2006 SMBC was among the first Japanese Bank to adopt the [[Equator Principles]], an international set of social and environmental standards for financial institutions launched in 2003.<ref>{{Cite web |title=Reporting – Sumitomo Mitsui Banking Corporation (2016) – The Equator Principles |url=https://equator-principles.com/sumitomo-mitsui-banking-corporation-2016/}}</ref> The bank updated its policy to exclude the funding of ultrasupercritical coal power.<ref>{{Cite web |title=Japanese bank policies &#124; Market Forces |url=https://www.marketforces.org.au/research/global-coal-finance/japanbanks-nocoal/ |website=www.marketforces.org.au}}</ref> SMBC has involved in funding renewable project finance worth three trillion yen globally.<ref name="auto2">{{Cite web |title=Establishment of Renewable Energy Fund |url=http://www.sumitomocorp.com/en/jp/news/release/2019/group/11400 |website=Sumitomo Corporation|date=31 August 2023 }}</ref> As one of the leading players in finance for offshore [[wind power]] and [[solar energy]] generation, SMBC has been funding [[renewable power|renewable power plant]] projects with a total capacity of more than 10 GW by 2018. Since 2016, the bank has supported 44 project finance deals in [[renewable energy]] area. The projects consist of 20 solar energy, 17 wind energy, 3 Geothermal Energy, 2 Hydropower, 1 Biomass 1 Submarine power cable, 1 waste-to-energy in [[South America|the Americas]], [[Asia]], [[Europe]], and [[Australasia]].<ref name="auto2" /><ref>{{Cite web |title=Track Record in Project Finance for Renewable Energy Projects Overseas &#124; Sumitomo Mitsui Financial Group |url=https://www.smfg.co.jp/english/responsibility/issue/environment/business/data01/ |website=www.smfg.co.jp}}</ref> However, international environmental groups have criticized SMBC for failing to adhere to its social environmental standards, because SMBC is still involved in the financing of coal projects such as the Vung Ang 2 and Nghi Son 2 coal power station in [[Vietnam]].<ref>{{Cite web |title=Coal Power Expansion Plans Slow in Vietnam, But Banks Haven't Gotten the Memo – The Understory |url=https://www.ran.org/the-understory/coal_power_expansion_plans_slow_in_vietnam_but_banks_haven_t_gotten_the_memo/ |website=Rainforest Action Network}}</ref><ref>{{Cite web |title=Vung Ang 2 &#124; Market Forces |url=https://www.marketforces.org.au/research/vietnam/vung-ang-2/ |website=www.marketforces.org.au}}</ref> In December 2019, a research released at [[United Nations Climate Change conference]] named SMBC Group among the top three private lender to coal developers between January 2017 and September 2019.<ref>{{Cite web |title=Japan's mega-banks named as world's biggest lenders for new coal plants |url=https://www.japantimes.co.jp/news/2019/12/07/national/report-names-japans-top-three-mega-banks-worlds-biggest-lenders-coal-plant-developers/#.Xo4GMcgzY2w |website=www.japantimes.co.jp|date=7 December 2019 }}</ref> SMBC also involves as one of lead arrangers for a massive [[oil pipeline]] under construction in Uganda and Tanzania. The construction of [[Uganda–Tanzania Crude Oil Pipeline|East Africa Crude Oil Pipeline]] is a part of a push to open oil fields around [[Uganda]]’s [[Lake Albert (Africa)|Lake Albert]] to international markets, which will be connected to the port of [[Tanga, Tanzania|Tanga]] in [[Tanzania]]. The required investment value is estimated at US$3.5&nbsp;billion. With 1,443 kilometres of length, it will be the longest heated pipeline in the world. International organizations warned the environmental risks to fresh water sources including [[Lake Victoria]], which supports the livelihoods of more than 30 million people in the region.<ref>{{Cite web |title=International Call on Banks: Don't finance the East Africa Crude Oil Pipeline |url=https://www.banktrack.org/article/international_call_on_banks_don_t_finance_the_east_africa_crude_oil_pipeline |website=Banktrack}}</ref><ref>{{Cite web |title=East African oil pipeline would cause more emissions than Denmark |url=https://www.chinadialogue.net/article/show/single/en/11783-East-African-oil-pipeline-would-cause-more-emissions-than-Denmark |website=www.chinadialogue.net|date=16 January 2020 }}</ref><ref>{{cite web |url=https://www.banktrack.org/project/east_african_crude_oil_pipeline |title=East African Crude Oil Pipeline (EACOP) |website=www.banktrack.org}}</ref><ref>{{Cite web |title=Equator Banks, Act! |url=https://www.equatorbanksact.org/ |website=www.equatorbanksact.org}}</ref> Having said this, news reported that SMBC is to reconsider its prolific funding of coal-fired plants, the first of the nation's major banks to do so.<ref>{{Cite web |date=23 May 2018 |title=SMBC is the first Japanese bank to rethink coal financing policy |url=https://www.gtreview.com/news/asia/smbc-is-the-first-japanese-bank-to-rethink-coal-financing-policy/ |website=Global Trade Review (GTR)}}</ref><ref>{{Cite web |title=Sumitomo Mitsui Financial Group to halt funding for coal plants |url=https://asianbankingandfinance.net/lending-credit/news/sumitomo-mitsui-financial-group-halt-funding-coal-plants |website=Asian Banking & Finance|date=20 April 2020 }}</ref><ref>{{Cite web |last=Submission |first=Internal |date=16 April 2020 |title=Sumitomo Mitsui and Mizuho to end lending for new coal-fired plants |url=https://www.japantimes.co.jp/news/2020/04/16/business/smfg-mizuho-end-lending-coal-plants/ |website=The Japan Times}}</ref><ref>{{Cite web |title=Japan's Third Largest Bank – SMBC Group – In Discussions To Finance New Coal Export Terminal in California Amidst Pledge to Quit Coal Power |url=https://www.ran.org/press-releases/japans-third-largest-bank-smbc-group-in-discussions-to-finance-new-coal-export-terminal-in-california-amidst-pledge-to-quit-coal-power/ |website=Rainforest Action Network}}</ref><ref>{{Cite web |date=30 March 2020 |title=Japan's Sumitomo Mitsui bank to stop making loans for new thermal coal plants—report |url=https://ieefa.org/japans-sumitomo-mitsui-bank-to-stop-making-loans-for-new-thermal-coal-plants-report/}}</ref> ==Sponsorships== SMBC and [[Singapore Open (golf)|Singapore Open]] have a title sponsorship deal since 2016, making the Singapore top golf tournament commercially known as SMBC Singapore Open. The '''Singapore Open''' is a [[golf]] tournament in Singapore that is part of the [[Asian Tour]] schedule. The event has been held at Sentosa Golf Club since 2005 and since 2017 has been part of the Open Qualifying Series, giving up to four non-exempt players entry into [[The Open Championship]].<ref>{{Cite web |date=17 January 2018 |title=SMBC extend Singapore Open until 2021 |url=https://smbcsingaporeopen.com/smbc-extend-singapore-open-2021/}}</ref><ref>{{Cite news |date=17 January 2018 |title=Golf: SMBC extends Singapore Open deal for three more years |url=https://www.straitstimes.com/sport/golf/golf-smbc-extends-singapore-open-deal-for-three-more-years |website=The Straits Times|last1=Wong |first1=Lester }}</ref> In April 2015, Sumitomo Mitsui Banking Corporation became a Gold Partner (banking category) for the Olympic and Paralympic Games Tokyo 2020.<ref>{{Cite web |title=Sumitomo Mitsui Financial Group, Inc.｜The Tokyo Organising Committee of the Olympic and Paralympic Games |url=https://tokyo2020.org/en/organising-committee/marketing/sponsors/smfg.html |website=The Tokyo Organising Committee of the Olympic and Paralympic Games}}</ref><ref>{{Cite web |title=Sponsorships &#124; Sumitomo Mitsui Banking Corporation |url=https://www.smbc.co.jp/global/sponsorship/ |website=www.smbc.co.jp}}</ref> Since 2014, SMBC has owned the naming rights for the [[Japan Series]]. ==SMBC branch in Tokyo Disneyland== [[Image:三井住友銀行 ディズニーランド出張所.jpg|thumb|SMBC [[Tokyo Disneyland]] Branch]] Sumitomo Mitsui Banking Corporation is the only bank that has a branch office in [[Tokyo Disneyland]] and [[Tokyo DisneySea]]. The branch is the legacy of [[Mitsui Bank]], which was a member of the [[Mitsui Group]] when [[Oriental Land]] was established. Tokyo Disney Resort project was done by [[Mitsui Fudosan]].<ref>{{Cite web |title=The Mitsui Fudosan Group: A History of Value Creation｜Mitsui Fudosan ESG Report 2019 |url=https://www.mitsuifudosan.co.jp/english/corporate/esg_csr/history/index.html |website=The Mitsui Fudosan Group: A History of Value Creation}}</ref> The branch office in Tokyo DisneySea has an unmanned ATM section called "[[Nihonbashi]] Branch Tokyo DisneySea Branch", but staff are still assigned to the "[[Urayasu]] Branch Tokyo Disneyland Branch" (store number 593) in Tokyo Disneyland. The operating hours follow normal bank operational time. It was possible to open an account and no limitation of total handled customers, but now it is limited only to [[Urayasu]] citizens and related parties. The passbook design and the card design are not different from the one issued by ordinary SMBC's branches and cannot be visually differentiated. Previously, the Disneyland branch office also handled foreign currency exchange.<ref>{{Cite web |title=東京ディズニーリゾート・オフィシャルウェブサイト |url=https://www.tokyodisneyresort.jp/en/tdl/service/detail/012/ |website=www.tokyodisneyresort.jp}}</ref> Note, SMBC is not a participating company nor official sponsor of Tokyo Disney Resort. For instance, Disney characters have been used by the Bank of Mitsubishi UFJ as an image character for over half a century since it was adopted by [[Mitsubishi Bank]] in 1962. ==Related events== ===Yakuza exclusion ordinances=== {{main|Yakuza#Indirect enforcement}} Since 2011, Japan's law regulators enacted a series of efforts to battle organized crime activities in the country. This includes exclusion ordinances that made it illegal to do business with [[yakuza]] gang members. In 2013, the [[Financial Services Agency]], Japan's financial watchdog, started an investigation of the three mega banks over possible ties to organised crime after [[Mizuho Bank|Mizuho banking group]] was accused of lending more than US$2&nbsp;million to people affiliated with organized crime groups in Japan. The probe also focused on compliance practices and risk management systems of the banks.<ref>{{Cite news |last=McCurry |first=Justin |date=30 October 2013 |title=Japan's three biggest banks face yakuza links inquiry |newspaper=The Guardian |url=https://www.theguardian.com/world/2013/oct/30/japan-three-biggest-banks-yakuza-links-inquiry |via=www.theguardian.com}}</ref><ref>{{Cite web |last=Traywick |first=Catherine A. |title=Are Japan's Biggest Banks in Bed with the Yakuza? |date=6 November 2013 |url=https://foreignpolicy.com/2013/11/06/are-japans-biggest-banks-in-bed-with-the-yakuza/}}</ref><ref>{{Cite news |date=1 November 2013 |title=Japan mob loans scandal deepens as another major bank admits business links with yakuza |url=https://www.straitstimes.com/asia/japan-mob-loans-scandal-deepens-as-another-major-bank-admits-business-links-with-yakuza |website=The Straits Times}}</ref><ref>{{Cite web |date=30 October 2013 |title=Yakuza banking scandal extends to MUFG and Sumitomo &#124; In Other News |url=https://www.tokyoweekender.com/2013/10/yakuza-banking-scandal-extends-to-mufg-and-sumitomo/}}</ref> In order to distance themselves from the yakuza, the Japanese Bankers Association's members, including SMBC Group, started to compile their own lists on yakuza and other so-called anti-social forces to keep undesirable persons from using their services.<ref>{{Cite web |last=Martin |first=Alex |date=4 January 2018 |title=Japan's banks secure access to police agency database to help screen for yakuza and other 'anti-social forces' |url=https://www.japantimes.co.jp/news/2018/01/04/national/crime-legal/japans-banks-secure-access-police-agency-database-help-screen-yakuza-anti-social-forces/ |website=The Japan Times}}</ref> ===2012 SMBC Nikko Securities insider trading probe=== In June 2012, an employee of SMBC Nikko securities was arrested for alleged insider trading due to suspicions of having leaked information on tender offers. The employee allegedly provided leaked information on tender offers for at least more than 10 firms to a company top personnel and other recipients. One such piece of information was regarding a management buyout bid by a wine trading house, Enoteca Co., before the takeover bid was listed on the [[Tokyo Stock Exchange]]'s Second Section in February.<ref>{{Cite web |title=SMBC Nikko, 2 businessmen investigated for suspected insider trading. – Free Online Library |url=https://www.thefreelibrary.com/SMBC+Nikko,+2+businessmen+investigated+for+suspected+insider+trading.-a0269361421 |website=www.thefreelibrary.com}}</ref><ref>{{Cite web |title=Ex-SMBC Nikko exec allegedly leaked info on 10-plus firms. – Free Online Library |url=https://www.thefreelibrary.com/Ex-SMBC+Nikko+exec+allegedly+leaked+info+on+10-plus+firms.-a0295033591 |website=www.thefreelibrary.com}}</ref><ref>{{Cite web |last=Docket |first=Securities |title=Japan: SMBC Nikko faces insider trading probe |url=http://www.securitiesdocket.com/2011/10/07/smbc-nikko-faces-insider-trading-probe/,%20http://www.securitiesdocket.com/2011/10/07/smbc-nikko-faces-insider-trading-probe/}}</ref> The said employee worked for SMBC Nikko on secondment from Tokyo-based Sumitomo Mitsui's banking unit since October 2009. He was the deputy head of investment banking at that time and was loaned from SMBC bank. He became the first banker from a major Japanese brokerage to be detained for suspected insider trading since 2008. He was ultimately convicted by [[Yokohama]] [[District Court]] in 2013 and charged with prison sentence of 2 years and 6 months.<ref>{{Cite web |title=Former SMBC Nikko banker arrested in insider trading probe |url=https://gulfnews.com/business/markets/former-smbc-nikko-banker-arrested-in-insider-trading-probe-1.1040711 |website=gulfnews.com|date=27 June 2012 }}</ref><ref>{{Cite news |last=Inagaki |first=Kana |date=26 June 2012 |title=Former SMBC Nikko Executive Arrested |newspaper=Wall Street Journal |url=https://www.wsj.com/articles/SB10001424052702304870304577489522242635232 |via=www.wsj.com}}</ref><ref>{{Cite news |url=https://www.bloomberg.com/news/articles/2015-09-25/ex-smbc-nikko-banker-insider-trading-conviction-upheld-on-appeal|title=Ex-SMBC Nikko Executive's Insider-Trading Conviction Upheld|newspaper=Bloomberg.com|date=25 September 2015}}</ref> As a consequence of this event, The Tokyo Stock Exchange fined SMBC Nikko Securities 80 million yen (US$1.02&nbsp;million).<ref>{{Cite news |date=7 August 2012 |title=Tokyo Stock Exchange says fines SMBC Nikko over insider trading |newspaper=Reuters |url=https://in.reuters.com/article/japan-insider-nikko-idINL4E8J72EZ20120807 |via=in.reuters.com}}</ref><ref>{{Cite news |date=13 April 2012 |title=Japan regulator to seek penalties against Nikko SMBC: sources |newspaper=Reuters |url=https://www.reuters.com/article/us-nikko-smbc-idUSBRE83C07Y20120413 |via=www.reuters.com|last1=Hirata |first1=Emi Emoto }}</ref> ===Omori branch employee fraud=== A former deputy branch manager of the [[Ōmori|Omori]] branch illegally operated the foreign currency deposit transaction system from November 2015 to June 2016. The employee was accused of stealing around ¥190&nbsp;million (US$1.84&nbsp;million) by manipulating the bank's foreign exchange trading system.<ref>{{Cite web |date=12 October 2016 |title=Former SMBC banker arrested for allegedly stealing ¥190 million |url=https://www.japantimes.co.jp/news/2016/10/12/national/crime-legal/former-smbc-banker-arrested-allegedly-stealing-%c2%a5190-million/ |website=The Japan Times}}</ref> ===Hugh Rodley bank raid=== A group of criminal hackers including Hugh Rodley, security insider Kevin O'Donoghue, and [[Soho, London|Soho]] sex shop owner David Nash were found guilty of an attempted high-tech robbery of £229m from Sumitomo Mitsui Banking Corporation's [[London]] branch in September 2004. Henchmen Jan Van Osselaer and Gilles Poelvoorde were also found guilty of conspiracy to steal. The plot was discovered by Sumitomo Mitsui staff, and no money was stolen. Another accused, Bernard Davies, died before trial.<ref>{{Cite news |date=5 March 2009 |title='Lord of Fraud' Hugh Rodley jailed for eight years for attempt to steal from Sumitomo Mitsui Banking Corporation |newspaper=The Guardian |url=https://www.theguardian.com/uk/2009/mar/05/lord-of-fraud-bank-raid |via=www.theguardian.com |last1=Weaver |first1=Matthew |last2=Bowcott |first2=Owen }}</ref> ===Bank of East Asia dispute with Elliott Management=== Hedge fund activist investor Elliott Management filed a lawsuit against BEA in July 2016 in Hong Kong court over a share placement transaction.<ref>{{cite web |url=https://www.reuters.com/article/us-bank-east-asia-elliott-idUSKCN0ZY1AV |title=Elliott sues Bank of East Asia over share sales, escalating dispute |date=18 July 2016 |work=[[Reuters]] |access-date=1 May 2018}}</ref> Elliott Management, which held 7% of listed shares of BEA, had included majority of the bank's directors, its CEO and chairman in the lawsuit. The transaction in question was on BEA's issuance of new shares to Japan's Sumitomo Mitsui Banking Corp (SMBC) in 2015. Elliott cited "allegations of unfairly prejudicial conduct" and "alleged serious corporate governance failings".<ref>{{cite web |url=https://www.chinadailyasia.com/business/2016-07/18/content_15464726.html |title=Elliott ramps up pressure on Bank of East Asia with lawsuit |date=18 July 2016 |newspaper=China Daily Asia |access-date=1 May 2018}}</ref> In response, BEA applied to have Elliott's petition against them "struck out". This case was heard by Mr. Justice Jonathan Harris from 17 to 19 July 2017.<ref>{{cite news |url=http://www.scmp.com/business/banking-finance/article/2103138/what-bank-east-asia-and-elliotts-dispute-about |title=What is Bank of East Asia and Elliott's dispute about? |date=18 July 2017 |newspaper=[[South China Morning Post]] |access-date=1 May 2018}}</ref> ==Notable current and former employees== * [[Hiroaki Shukuzawa]] * [[Daizo Kusuda]], member of the House of Representatives * [[Ichiro Miyashita]], member of the House of Representatives * [[Yoshio Kimura (politician)|Yoshio Kimura]], member of the [[House of Councillors of Japan|House of Councillors]] in the Japan [[Diet of Japan|Diet]] office * [[Laurel Powers-Freeling]] ==See also== * [[Loans in Japan]] * [[List of banks in Japan]] * [[Financial services in Japan]] * [[Japanese financial system]] ==References== {{Reflist}} ==External links== * [https://www.smbc.co.jp/global/ Official website (in Japanese)] * [https://www.smfg.co.jp/english/ Official website (in English)] {{Mitsui|state=autocollapse}} {{Keiretsu}} {{Sumitomo Group}} {{Custodian Bank}} {{Portal bar|Banks}} {{Authority control}} [[Category:Banks of Japan]] [[Category:Mitsui]] [[Category:Banks established in 1996]] [[Category:Banks established in 1876]] [[Category:Companies in the Nikkei 225]] [[Category:1876 establishments in Japan]] [[Category:Sumitomo Mitsui Financial Group]] [[Category:Financial services companies based in Tokyo]] [[Category:Japanese companies established in 1996]] [[Category:Sumitomo Group]] [[Category:Systemically important financial institutions]]'