Sumitomo Mitsui Financial Group is preparing to boost its US investments, as Japan’s second-largest bank anticipates increased corporate activity following Donald Trump’s expected return to the White House, CEO Toru Nakashima told Nikkei.
Mr. Nakashima sees opportunities in potential tax cuts and deregulation under Trump’s presidency, which could drive merger activity and financing demand. The bank aims to hit a group net profit of 1.16 trillion yen ($7.4 billion) for the fiscal year ending March 2025, with ambitions to exceed 1.2 trillion yen the following year.
The Tokyo-based lender plans to expand its US footprint once it strengthens its compliance framework, marking a shift from its previous focus on Asian investments where it has deployed over 1 trillion yen. SMFG is also deepening ties with US investment bank Jefferies, where it holds a 14.5% stake, though Nakashima said there are no immediate plans to increase ownership.
Despite acknowledging investment banking as a weakness compared to domestic rivals, SMFG aims to compete with top-tier global banks by combining Jefferies’ expertise with its balance sheet. The bank is also developing its US retail presence through Jenius Bank, a digital platform launched in 2023, though profitability isn’t expected in the immediate future.
