Sumitomo Mitsui Financial Group is to merge its banking and securities businesses in the UK. SMBC Nikko Capital Markets plc will be transferred to SMBC Bank International over the next year. SMBC Bank International was renamed from Sumitomo Mitsui Banking Corporation Europe in 2020 and has a branch in Paris. All other EU operations became branches of SMBC Bank EU AG, established in Germany. SMBC Bank International plc employs 1,561 people and SMBC Nikko Capital Markets plc employs 175, already half of the peak number of 378 employed in 2019/20.
SMFG claim this merger is to strengthen its offering to customers, and the numbers of people employed will remain the same. However, as the Nikkei points out, its medium-term management plan to FY2025 aims to reduce annual expenses by 25 billion yen and the workload of 500 people by improving the efficiency of overseas operations, such as reviewing the network of bases and integrating redundant functions.
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