In this briefing:
- A Progressive Bank For Japan: SMFG has adopted some progressive strategies – digital; the growth potential of Asian operations; control efforts; and buoyed capital position.
- Returns on SME Loans Have Troughed: In FY 1H19, returns on loans to SMEs stopped declining as spreads on new loans returned to positive growth.
- Fee-based Business Accelerating: Due to SMFG’s expansion of non-deposit/loan operations, its fee-based business has grown rapidly.
- Overhead Levels Being Addressed:Management expects to reduce costs by ¥ 50 bn over the next three years and then by another ¥ 50 bn over the medium term.
- Capital Strength: SMFG has achieved its capital adequacy ratio target, and growth investments and shareholder returns are now increasing.
- Areas of Growth:Priority areas of growth for SMFG include: commercial banking in Asia; high-margin business in Europe and the U.S.; and asset management.
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