Japan's No 2 bank to open branches in Paris, UAE
The securities arm of Japan's second-biggest bank is pressing ahead with its expansion abroad, unswayed by the coronavirus-fueled recession and a retrenchment by larger global rivals.
SMBC Nikko Securities Inc. plans to open branches in Paris and Abu Dhabi, subject to regulatory approvals, to strengthen its bond underwriting business, President Yuichiro Kondo said in an interview. It also intends to hire about 10 people for its North American bond underwriting team by March 2023, bringing the total to roughly 40, partly to win more high-yield debt business in the US, he said.
"Overall, we are on the offensive," said Kondo, 57, who took the helm on April 1. "Tough times bring opportunities."
The move matches the strategy of the firm's parent, Sumitomo Mitsui Financial Group Inc., which is seeking to boost headcount overseas as the economic fallout from the pandemic further undercuts Japan's growth potential. The foray contrasts with the downsizing planned at European banks including HSBC Holdings Plc and Deutsche Bank AG in the face of the worst global recession in decades.
In addition to highyield securities, SMBC Nikko plans to strengthen it business for underwriting emerging-market bonds and creating securitized products in North America,