March 26, 2014

Sumitomo Mitsui Financial Group, Inc.

Sumitomo Mitsui Banking Corporation

 

 

 

Organizational Revision of SMFG and SMBC

 

 

 

Tokyo, March 26, 2014 --- Sumitomo Mitsui Financial Group, Inc. (SMFG, President: Koichi Miyata) and Sumitomo Mitsui Banking Corporation (SMBC, President and CEO: Takeshi Kunibe) today announced changes to the organizational structure of SMFG and SMBC as below, effective as of April 1, 2014.

 

 

I.          Restructuring of Domestic Business

 

Domestic business operations will be restructured, effective as of April 1, 2014, on a scale not seen since the inception of SMBC in order to further enhance our capability to meet the needs of our clients and deliver higher value-added products and services by revising client segmentation and restructuring business models accordingly.

 

Under the new structure, Block Consumer Business Offices in charge of consumer banking clients will be abolished and reorganized into “Area Main Offices” that will manage retail banking operations. Further, the number of Corporate Banking Departments in charge of large corporate clients will be increased

 

Head-office departments and other banking offices will be partially reorganized in line with the new structure.

 

 

1.       Reorganization of Domestic Business Units (SMBC)

 

(Please refer to the diagram at the end of this announcement.)

 

The three domestic business units – Consumer Banking Unit, Middle Market Banking Unit and Corporate Banking Unit – will be reorganized into two units – “Retail Banking Unit” and “Wholesale Banking Unit” – in order to enhance our capability to serve our large corporate clients as well as develop new businesses through the integration of consumers and part of commercial banking operations.

 

Further, regarding domestic corporate clients, “Global Corporate Banking Division” (GLCBD) and “Corporate Banking Division” (CBD) will be newly established within the Wholesale Banking Unit in order to promote a client segment-based business model. GLCBD will manage banking offices serving mainly large corporate clients, and CBD will manage those serving mainly middle market corporate clients.

 

“Small and Medium Enterprises Banking Division, Retail Banking Unit” will be newly established to manage businesses with SME clients.

 

 

2.       Reorganization of Head-Office Departments

 

(1)     Wholesale Banking Unit (SMBC)

 

“Planning Department, Wholesale Banking Unit” (PDWSB) will be newly established to manage the Unit. Further, “Global Corporate Banking Department” (GCB) will be established as a sub-department of PDWSB to strengthen our capability in large corporate banking business.  GCB will plan and promote initiatives to reinforce the collaboration between SMBC and SMBC Nikko Securities Inc. and also between SMBC domestic and overseas banking offices.

 

Corporate Business Strategy Planning Department, a sub-department of Planning Department, Corporate Banking Unit & Middle Market Banking Unit that was established to assess corporate client businesses from a long-term perspective, will be abolished and its function will be transferred to PDWSB.

 

Strategic Corporate Business Department (SCBD) will succeed the function of Small and Medium Enterprises Marketing Department (SMED) related to supporting growth companies. SCBD will support both the Wholesale and Retail Banking Units and provide tailored solutions to their respective corporate clients.

 

(2)     Retail Banking Unit and Private Advisory Division (SMBC)

 

�@     Transfer of SME Business to Retail Banking Unit

 

“Planning Department, Retail Banking Unit” (PDRTB) will be newly established to manage the Unit. Consumer Compliance Department and Consumer Facilitating Financing Department, sub-departments of Planning Department, Consumer Banking Unit, will be renamed “Retail Compliance Department” and “Retail Facilitating Financing Department,” respectively, and become sub-departments of PDRTB.

 

“Small and Medium Enterprises Planning Department, Retail Banking Unit” will be established to manage the SME business, succeeding the function from SMED. Credit Department, Consumer Banking Unit, and Small Enterprises Credit Portfolio Administration Department, a sub-department of SMED, will be integrated to form “Credit Department, Retail Banking Unit.”

The functions of Retail Human Resources Department, Consumer Banking Unit, will be reinforced, and the department will be renamed “Retail Human Resources Department, Retail Banking Unit,” and become a sub-department of PDRTB.

 

�A     Consolidation of Marketing Functions by Client Segment and Reinforcement of Product Development Function

 

“Private Banking Planning Department” will be newly established as a sub-department of Private Advisory Business Department, Private Advisory Division in order to strengthen the private banking business on a group-wide basis.

 

Marketing Department, and Securities Business Collaboration Planning Department, sub-departments of Planning Department, Consumer Banking Unit, will be reorganized into “Life Planning Business Department,” (LPBD) and “Wealth Management Business Department,” (WMBD), respectively, and become sub-departments of PDRTB. LPBD will manage businesses related to two client segments: asset-building clients and mass retail clients. WMBD will manage high net worth client segment and collaboration between banking and securities businesses.

 

Financial Consulting Department, Consumer Banking Unit, and Retail Business Department, Consumer Banking Unit, will be reorganized and established as  “Financial Products Department, Retail Banking Unit” (FPD) and “Loan Department, Retail Banking Unit” (LD). FPD will be in charge of deposits, settlements and payments, asset management and other products. LD will be in charge of mortgages and other consumer loan products. Consumer Loan Department will be abolished and “Area Support Departments” will be established as sub-departments of FPD and LD.

 

�B     Consolidation of Business Promotion Support Functions

 

“Business Promotion Department, Retail Banking Unit” will be newly established in order to strengthen the support for banking offices in business promotion as well as staff education and training.

 

 

II.     Other Organizational Revisions

 

1.       Wholesale Business

 

(1)     Reinforcement of Initiatives on Growth Industries (SMBC)

 

Growth Industry Cluster Department (GICD), a sub-department of Project & Export Finance Department, will be reinforced and become an independent head-office department.

 

Further, in order to strengthen collaboration with Corporate Advisory Division which manages industry-wide intelligence, GICD will belong to both the Investment Banking Unit and Corporate Advisory Division.

 

(2)     Reinforcement of Real Estate Related Business (SMBC)

 

The Real Estate Finance Department (REFD), Investment Banking Unit, will belong to the Wholesale Banking Unit as well, in order to strengthen the real estate related business. Further, the function of SCBD related to the collection of real estate information and business promotion will be integrated into REFD.

 

 

2.       Global Business and Transaction Business

 

(1)     Reinforcement of Business in Asia (SMBC)

 

Business operations in Asia, a region which is expected to maintain high growth, will be reinforced in terms of business planning and promotion as well as risk management.

 

�@     Reinforcement of Asia Strategy Planning

 

“Asia Strategy Department” will be established as a sub-department of Planning Department, International Banking Unit (PDINB) to develop, implement and promote medium- to long-term business strategies in Asia. Global Business Strategy Department, a sub-department of PDINB, will be abolished, accordingly.

 

�A     Reinforcement of Risk Management and Operational Management in Asia Pacific Region

 

“Risk Management Department, Asia Pacific Division” (RMAPD) will be newly established to strengthen risk management in the Asia Pacific region where business is expanding. RMAPD will succeed the risk management functions (enterprise, credit, market and liquidity risks) of the Planning Department, Asia Pacific Division and implement measures to further improve 　risk management.

 

“Business Control Department, Asia Pacific Division” will be newly established to conduct middle and back office operations of the Singapore office as well as support and supervise operations of other offices of Asia Pacific Division.

 

(2)     Reinforcement of Aircraft Related Business (SMBC)

 

“Global Aircraft Finance Department, International Banking Unit” (GAFD) will be newly established to promote and strengthen aircraft related businesses on a global basis. Aircraft related front-office operations of overseas banking offices will be integrated into GAFD, and overseas aircraft credit function will be integrated into  “Global Aircraft Credit Department” that will be newly established as a sub-department of Credit Department, Europe, Middle East and Africa Division, International Banking Unit.

 

(3)     Reinforcement of Transaction Banking Business Planning (SMBC)

 

To further strengthen the transaction banking business and integrate strategy and planning functions, Transaction Business Planning Department, Corporate Staff Unit, will be reorganized to become part of Transaction Business Division, Retail Banking Unit, Wholesale Banking Unit & International Banking Unit (TBD).  TBD will be in charge of bank-wide strategy, planning and promotion of the transaction banking business.

 

 

3.       Enhancement of Corporate Infrastructure

 

(1)     Global Human Resources (SMBC)

 

“Global Human Resources Department” (GHRD) will be newly established as a sub-department of Human Resources Department in order to manage and develop human capital in line with the globalization of business.

 

(2)     Risk Data Aggregation and Risk Reporting (SMBC)

 

“Risk Management Information Department” will be newly established as a sub-department of Corporate Risk Management Department to enhance the risk data aggregation and reporting function to deal with the global financial regulatory reform.

 

(3)     Inter-market Settlement Capability (SMBC)

 

SMBC Market Service, a wholly-owned subsidiary of SMBC, will merge into SMBC effective as of April 1, 2014. In connection with this merger, “Inter-Market Settlement Department” will be newly established within the Corporate Services Unit to quickly deal with the development of custom-made products and design procedures for individual transactions as well as develop professionals.

 

(4)     Abolition of Risk Management System Department (SMBC)

 

Risk Management System Department (RMSD), a sub-department of Corporate Risk Management Department which was established to facilitate communication and the division of operations between the Corporate Risk Management Department and IT Planning Department regarding the creation of risk management system, will be abolished as it has served its purpose.

 

(5)     Establishment of Group Cost Control Department (SMFG)

 

“Group Cost Control Department” (GCCD) will be established within the General Affairs Department (GAD) of SMFG to control costs on a group-wide basis and strengthen our medium- to long-term cost competitiveness. Functions of GAD related to group real estate management will also be integrated into GCCD.