March 26, 2015

Sumitomo Mitsui Financial Group, Inc.

Sumitomo Mitsui Banking Corporation

 

 

 

Organizational Revision of SMFG and SMBC

 

 

 

Tokyo, March 26, 2015 --- 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, 2015.

 

 

1.       Reinforcement of Business in Asia

 

SMBC will strengthen its business operations in Asia through the following organizational revisions to become a truly Asia-centric institution, which is set as its vision in the medium-term management plan commenced in fiscal year 2014.

 

(1)      Reinforcement of Transaction Banking Business (SMBC)

 

“Transaction Banking Solutions Dept., Asia Pacific Division” (TBSDAPD) will be newly established to strengthen the transaction banking business in the Asia Pacific region.

Sales functions for transaction banking products will be centralized to TBSDAPD, which will provide those services together with branches in the region. TBSDAPD will play a leading part in promoting transaction banking services to further strengthen its expertise to support its clients and achieve sustainable growth in the Asia Pacific region.

 

(2)      Enhancement of ALM Operation (SMBC)

 

“Treasury Dept., Asia Pacific Division” (TDAPD) will be newly established to consolidate and enhance treasury functions and ALM in the Asia Pacific region. TDAPD will oversee the entire region and provide efficient treasury management operations.

TDAPD will also promote the transaction banking business, working closely with TBSDAPD, through strengthening foreign exchange and other client services.

 

(3)      Reinforcement of Solution Function (SMBC)

 

“Corporate Solutions Dept., Asia” (CSDA) will be newly established to strengthen SMBC’s capability to provide financial solutions through centralizing relevant functions of “Financial Solution Dept., Asia” and branches to CSDA.
CSDA will provide clients with a variety of solutions, including specialized financing arrangements and business matching between companies in Japan and Asia.

 

(4)      Localization of Credit Department (SMBC)

 

“Credit Dept., Asia Pacific Division.” (CDAPD) will be newly established and be responsible for the credit approval function for non-Japanese corporate clients in the Asia Pacific region.

CDAPD will be located in Singapore to be more local market-oriented and accelerate the credit approval process so that SMBC can develop the business with a broader range of clients from large corporates to middle markets.

Further, “Credit Dept., East Asia” (CDEA) will also be established within “Credit Management Dept., International Banking Unit.” (CMDINB) and be responsible for the credit approval function for non-Japanese corporate clients in East Asia and Japan.

Consequently “Asia Credit Dept., International Banking Unit” (ACDINB) will be abolished.

 

(5)       Reinforcement of Compliance Function (SMBC)

 

“Legal and Compliance Dept., Asia Pacific Division” (LCAPD) will be newly established within “Planning Dept., Asia Pacific Division” to strengthen region-wide compliance system for Anti-Money Laundering (AML) and Countering Financing of Terrorism in the Asia Pacific region.

 

 

2.       Domestic Retail Banking

 

The following reorganization will be made to further strengthen SMBC’s capabilities to meet its retail customers’ needs.

 

(1)      Financial Consulting Dept., Retail Banking Unit (SMBC)

 

“Financial Consulting Dept., Retail Banking Unit” (FCD) will be newly established to enhance SMBC’s asset management capability for affluent individuals, succeeding all the functions from “Wealth Management Business Dept.” and “Financial Products Dept., Retail Banking Unit” as well as relevant functions from “Business Promotion Dept., Retail Banking Unit”.

 

(2)      Retail Marketing Dept., Retail Banking Unit (SMBC)

 

“Retail Marketing Dept., Retail Banking Unit” (RTMD) will be newly established to accelerate various marketing strategies for retail banking business, strengthening and succeeding all the functions of “Life Planning Business Dept.”. “Loan Dept.” (LD) will be also established as a sub-department of RTMD.

Further, “IT Strategy Dept.” (ITD) will be established as a sub-department of RTMD to expedite the provision of advanced IT-based services for customers.

 

(3)      Transfer of “Consumer Finance & Transaction Business Dept.” to Retail Banking Unit (SMBC)

 

“Consumer Finance & Transaction Business Dept.” will be transferred to Retail Banking Unit from Corporate Staff Unit to streamline various functions to develop group-wide retail banking business strategies.

 

 

3.       Investment Banking and Transaction Banking

 

(1)      Restructuring and Reinforcement of Project Finance Business (SMBC)

 

“Project & Export Finance Dept.” (PEFD), which mainly focuses on the overseas project finance business related to Japanese sponsors, will be merged into “Structured Finance Dept.” (SFD), whose business includes project finance in the domestic market, to further strengthen SMBC’s expertise in the project finance markets and meet its clients’ needs.

 

(2)      Restructuring and Reinforcement of Foreign Exchange related Departments (SMBC)

 

“Global Advisory Dept.” (GLAD) and “Global Transaction Support Dept.” (GTSD) will be restructured to strengthen SMBC’s capabilities to support its clients’ overseas expansion and foreign exchange transactions.

Specifically, the sales promotion function for foreign exchange business will be separated from GLAD so that it will specialize in advisory services related to clients’ overseas business.

Further, “Global Business Promotion Dept.” (GBPD) will be newly established and succeed the sales promotion function for foreign exchange business from GLAD as well as the front-office support function of GTSD.

 

 

4.       Enhancement of Corporate Infrastructure

 

(1)      Reinforcement of Compliance Function (SMBC)

 

“AML Planning Dept.” (AMLPD) will be newly established within General Affairs Dept. (GAD) to consolidate AML-related functions and strengthen internal controls for AML and Countering Financing of Terrorism.

Further, the remaining functions of “International Compliance Dept.” (ICPD) and “Financial Products Compliance Dept.” (FPCD) will be merged into GAD.

 

(2)      Enhancement of Regulatory Compliance (SMFG)

 

“Risk Management Information Dept.” (RMI) will be newly established to comply with international financial regulations. The risk data quality-control functions of “Corporate Risk Management Dept.” (CPRMD) will be transferred to RMI.

RMI will be a sub-department of CPRMD.

 

Further, “Equity Portfolio Management Dept.” (EPMD) will be newly established within “Financial Accounting Dept.” (FAD) to manage equity holdings, taking into account the newly introduced Corporate Governance Code.

 

(3)      Abolition of Group Business Management Dept. (SMFG)

 

“Group Business Management Dept.” (GBMD), a sub-department of Audit Dept., will be abolished and its monitoring function will be succeeded by Audit Dept. (AD) to further enhance the efficiency of SMFG’s internal audit system.