As Japanese companies expand globally and carry out mergers and acquisitions and injecting capitals, Sumitomo Mitsui Financial Group (SMFG) is seeing gross profit to grow across all segments.
And higher interest rates in Japan gives a tailwind to SMFG making it confident with its guideline of 1.2 trillion yen in net profit for next year that surpassed its previous target of 1.16 trillion yen.
This year, in Q2, SMFG made a substantial profit from selling equity holdings of 196 billion yen which positively impacted their financial results. Its online banking app Olive is also performing well even though it's not yet profitable, but the trend is positive and predicted to be profitable soon ahead of schedule.
Toru Nakashima, the CEO of Sumitomo said, "Domestic business opportunities are really increasing."
Now SMFG is focus on finding new business opportunities to maintain profit growth as sales of cross-shareholdings decrease. SMFG is expanding its alliance with Jefferies Financial Group in the US, particularly in equity trading.
They also considering setting up a back-office and IT center in India for better IT development, talent acquisition, and back-office services.
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