Sumitomo Mitsui Financial Group, Inc. (SFMG), Japan’s third largest bank, will establish two new subsidiaries in the Financial Centre Frankfurt. The decision was announced Monday, July 03, 2017, by SMFG President and CEO, Takeshi Kunibe. According to the group’s press release, the move will allow them to continue to service EU clients after the United Kingdom’s withdrawal from the EU.
Pending regulatory approval, the Japanese financial group intends to establish a new banking subsidiary as well as a securities subsidiary in Frankfurt. The new subsidiaries should allow SMFG to avoid disruption of services to their European clients and provide flexibility given the current political and economic uncertainty.
Frankfurt Main Finance (FMF) welcomes SMFG’s decision and looks forward to welcoming them to the Financial Centre Frankfurt. “Yoku irasshaimashita, Welcome Sumitomo! Brexit starts to bite,” says Hubertus Väth, Managing Director of FMF. “Japanese banks warned early on about the consequences of Brexit and accordingly have taken the lead. With Sumitomo Mitsui, the third Japanese banking group has chosen the Financial Centre Frankfurt. Frankfurt Main Finance expects a total of at least twelve banks to announce their decision for Frankfurt this year.”
In the last two weeks, Japanese banks Daiwa and Nomura also publicly announced their decisions to establish or expand operations in the Financial Centre Frankfurt. Since the results of the UK referendum, FMF has worked to assist financial services to find a new home in the Eurozone. The Financial Centre Frankfurt has emerged as an early front runner amongst European financial centres, noted for its political and economic stability, highly available and competitively priced real estate, deep talent pool, outstanding infrastructure, and high quality of life.
Link to the press release from Sumitomo Mitsui Financial Group, Inc.: http://www.smbc.co.jp/news_e/e600418_01.html