Organizational Revision of SMFG and SMBC(1/1)
Sumitomo Mitsui Financial Group, Inc.
Sumitomo Mitsui Banking Corporation
Organizational Revision of SMFG and SMBC
The organizational structures of SMFG and SMBC will be revised to enhance the SMFG/SMBC groupfs planning and marketing functions, aiming to facilitate the achievement of targets of the medium-term management plan announced last year, and also to further strengthen our internal control framework.
The specifics are as follows.
1. Strengthening the strategic business areas of medium-term management plan
1.1. Transaction business
(1) Establishment of Transaction Business Planning Department as an independent department - Strengthening of planning function (SMFG & SMBC)
Transaction Business Planning Department was established within SMFGfs and SMBCfs Corporate Planning Department last October to devise long-term, integrated transaction business strategies for the SMFG/SMBC group. It will become an independent department in order to further enhance its business planning function, as well as to strengthen its capability to manage settlement risk.
(2) Establishment of Transaction Business Division - Integration and strengthening of marketing functions targeting corporate clients (SMBC)
A new Transaction Business Division will be established with Electronic Commerce Banking Department, Global Advisory Department, and Asset Finance Department transferred to within this division. The new divison will straddle three marketing units, International Banking Unit, Middle Market Banking Unit and Corporate Banking Unit in order to strengthen collaboration between departments accommodating the transaction services needs of corporate clients, including supply chain financing, for flexibly and quickly offering products and services in a more integrated manner.
(3) Strengthening of planning and management framework of consumer finance and transaction services for individuals (SMFG SMBC)
Card Business Department of SMFG will be renamed Consumer Finance & Transaction Business Department and its functions will be strengthened to further enhance transaction services business and consumer finance business for individuals on a group basis by centralizing the management function of group companies engaged in these businesses. A new Consumer Finance & Transaction Business Department will be established within SMBC.
Group companies supervised by these departments will include Promise Co., Ltd. which will become a wholly-owned subsidiary of SMFG in April 2012, and SMBC Finance Service Co. Ltd. which will become a wholly-owned subsidiary of Cedyna Financial Corporation in order to strengthen collection outsourcing services.
1.2. Financial consulting for individuals – Restructuring of Consumer Banking Unit (SMBC)
(1) Establishment of Wealth Management Department - Strengthening of financial consulting for individuals
A new Wealth Management Department will be established within Financial Consulting Department to further strengthen our consulting capabilities and better accommodate the diversifying financial needs of individuals. Front-office support functions for wealth management, succession issues of business owners and land owners, and other financial consulting services will be consolidated into this department. Further, we will abolish Personal Product Development and merge it into Financial Consulting Department.
(2) Strengthening of cross-selling
Mass Retail Department and Consumer Loan Department will be merged to form a new Retail Business Department with a new Consumer Loan Department established within to strengthen the marketing function for individuals, including housing loans, in order to capture opportunities for cross-selling products and services created by individualsf important life events. Further, we will abolish Marketing Department and merge it into Planning Department.
1.3. Solution providing for corporate clients - Restructuring of Investment Banking Unit (SMBC)
Strengthening of marketing functions in
@ Establishment of Project & Export Finance Department
Overseas financing needs for businesses related to natural resources and infrastructures are growing significantly and to more effectively accommodate such needs, project and export finance business will be separated from Structured Finance Department and a new Project & Export Finance Department will be established to manage the business. In addition, with the aim of further enhancing our capability to capture and support projects in environmental, natural resources, water and new energy industries, which are expected to show high growth, the internal project team for these industries and Environmental Project Department will be consolidated into a new Growth Industry Cluster Department established within Project & Export Finance Department.
A Establishment of Financial Solution Department
Funding needs of corporate clients are diversifying and becoming more sophisticated, and to more effectively accommodate such needs from the planning stage, functions of Syndication Department and Global Securities Business Department will be strengthened, and also a new Financial Solution Department will be established to deliver tailor-made solutions for highly complex deals involving other departments within the unit.
Establishment of Investment Banking Department, Asia - Strengthening
of marketing functions in
Emerging markets, Asia in particular, are expected to continue to show high growth, and to accommodate the various needs of corporate clients in Asia more effectively and in a more integrated manner, functions of Financial Products Marketing Department, Debt Capital Markets Department and Structured Finance Department in Asia will be consolidated into a new Investment Banking Department, Asia and a new Financial Solution Department, Asia that will be established within Investment Banking Department, Asia.
2. More effective and efficient internal control framework (SMBC)
2.1. Operational risk management
Operational Risk Management Department will be abolished and merged into Corporate Risk Management Department to ensure a more integrated management of risks.
2.2. Compliance management
Antimonopoly Law Monitoring Department and Financial Products Compliance Department established within General Affairs Department will be merged into Financial Products Compliance Department to strengthen and consolidate compliance functions related to corporate clients.
2.3. IT planning and management framework
IT Planning Department and IT Business Strategy Planning Department will be merged into a new IT Planning Department with a new IT Business Strategy Planning Department and a new Consolidated Data Management Department established within. By centralizing and consolidating the planning and management functions of IT systems, we aim to strengthen the functions for supporting the IT planning of marketing units and more effectively utilizing our IT system specialists. The new Consolidated Data Management Department will plan and promote the integration and utilization of various data so that they can be used more effectively on a corporate-wide basis.
2.4. CRE management framework
A new Corporate Real Estate Management Department will be established within Administrative Services Department to further pursue the efficiency of real estate management, and to reduce real estate related costs on a group-wide basis.