Ja­pan's No 2 bank to open branches in Paris, UAE

The Pak Banker - - FRONT PAGE - TOKYO

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,

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.